16. 12. 76 Official  Journal  of the  European  Communities No C 297/3 
II 
(Preparatory  Acts) 
ECONOMIC  AND  SOCIAL  COMMITTEE 
Opinion  on the annual  report  on the economic  situation  in the Community  in 1976 
The text  referred  to the Committee  has  not  yet been  published  in the Official  Journal 
of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 20 October  1976,  the Council  referred  the abovementioned  report  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
142nd  plenary  session,  held  in Brussels  on 27 and  28 October  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community  and,  in particular, 
Article  198  thereof, 
Having  regard  to the  Council  resolution  of 12 
March  1971  and  the  representatives  of  the 
governments  of the  Member  States  concerning  the 
realization,  by stages,  of economic  and  monetary 
union  in the Community, 
Having  regard  to the  Council  Decision  of 18 
February  1974  on the attainment  of a high  degree  of 
convergence  of the economic  policies  of the Member 
States  of the European  Communities, 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 26 October  1976  for an opinion  on the Commission's  annual  report  on the 
economic  situation  in the Community  in 1976, 
Having  regard  to the decision  taken  by its Bureau  on 
26 October  1976,  instructing  the  Section  for 
Economic  and  Financial  Questions  to draw  up an 
opinion  on the above  matter, 
Having  regard  to the  report  submitted  by  the 
Rapporteur,  Mr Basnett, 
Having  regard  to the  opinion  issued  by the Section 
for Economic  and  Financial  Questions  at its meeting 
on 26 October  1976, 
Having  regard  to the discussions  at its 142nd  plenary 
session,  held  on 27 and  28 October  1976  (meeting  of 
28 October  1976), 
/ 
Official  Journal  of the European  Communities  16.12.  76 No C 297/4 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a majority,  9 voting  against,  with  4 abstaining: 
1. Introduction 
1.1. The  Commission's  annual  report  on  the 
economic  situation  in the Community  was  published 
on 20 October.  The  Committee's  observations  have 
had therefore  to be largely  based  on oral  statements 
by Commission  representatives  anticipating  the main 
lines of its annual  report.  However,  examination  of 
the final  text  shows  the  observations  of the 
Committee  to be valid. 
1.2. The  Committee  considers  that  the Community 
institutions'  mode  of consulting  the Economic  and 
Social  Committee  and  the time  scale  allowed,  do not 
meet  requirements  and  therefore  need  to be radically 
revised. 
1.3. One  of the difficulties  facing  the Committee 
— and  indeed  the Commission  — has been  the lack 
of up-to-date  statistics  from  Member  States.  The 
Committee  recommends  that  the  Commission 
urgently  consider  with  the Member  States  ways  of 
improving  and  providing  more  rapidly,  statistics  on 
the Member  States. 
2. The  economic  situation  in 1976 
2.1. The  Commission's  assessment  clearly  implies 
that earlier  hopes  of a very  rapid  climb  out  of a 
serious  recession  since  1974  are now  subject  to a 
substantial  degree  of uncertainty.  The  Committee 
believes  that  recovery  is slowing  down  and  earlier 
estimates  of its faster  economic  growth  on both  the 
world  and  the Community  level  can now  be seen  as 
over-optimistic. 
2.2. In  particular,  there  has  been  a failure  of 
investment  to recover  to anything  like  the  extent 
normally  associated  with  the beginning  of a really 
sustained  recovery.  This,  in part,  reflects  the 
continued  under-capacity  working  in many  Member 
States  and,  in  part,  the  hesitant  growth  of 
consumption.  The  failure  of investment  to recover  is 
regarded  by the  Committee  as being  most  serious 
(paragraph  1.5 of the Commission's  annual  report). 2.3. The  Commission's  assessment  already  reflects 
much  of the  uncertainty  of the  recovery,  and  the 
Committee  stresses  that  the  situation  must  be 
regarded  as very  uncertain  indeed. 
We are not yet in a position  to be able  to assess  how 
strong  or how  prolonged  the recovery  will  be. The 
Committee  does  not  believe  that,  on unchanged 
policies,  the  recovery  will  necessarily  develop 
automatically,  or that  it can be sustained  through  the 
period  to 1980. 
2.4. The  main  immediate  problem  resulting  both 
from  the  recession  and  the  uncertainty  of the 
recovery  remains  very  high  levels  of wholly 
unemployed  in almost  every  Member  State,  which 
reflects  both  the  lack  of total  demand  and  severe 
structural  imbalances. 
3. Economic  policy  in 1976 
3.1. During  1976,  Member  States  pursued  policies 
designed  to reduce  the very  high  levels  of inflation 
whilst,  at the same  time,  adopting  active  measures  to 
combat  unemployment.  On the  anti-inflation  front, 
some  limited  success  has  been  achieved,  varying 
between  Member  States.  But  the policies  to tackle 
unemployment  have  not  met  with  a great  deal  of 
success. 
3.2. The  Commission  refers  (paragraph  2.6)  to a 
'very  wide  range  of employment  policy  instruments' 
used by  Member  States  during  1976  to tackle 
unemployment.  But  these  have  been  directed  largely 
at ameliorating  the effects  of unemployment,  rather 
than the causes.  It is the view  of the Committee  that, 
while  still  consolidating  anti-inflationary  policies, 
Member  States  could  have  been  bolder  in attacking 
the underlying  causes  of unemployment. 
4. Outlook  for 1977 
4.1. The  Committee  notes  that  the  Commission 
expects  the  total  rate  of growth  in the  economy 
should  be around  4 %, and  that  unemployment  will 
be reduced  to under  4 %. The  latter  figure  will 
represent  inadequate  progress  for  many  Member 
States.  It is difficult  to reconcile  the Commission's 
statement  in paragraph  3.6 that  'the  unemployment 
rate could  fall  to a little  below  4 % of the labour 
force',  with  the  rate  of 4 % for  growth.  The 
statement  in the same  paragraph  that  'the  number  of 
wholly  unemployed  in the Community  would  still  be 
at least  as high  as in 1975',  needs  to be seen  in the 
16.12.76 Official  Journal  of the European  Communities No C 297/5 
light  of paragraph  1.3  which  gives  the  number  of 
unemployed  at the  end  of 1975  as 4*7  %. It is by 
no means  clear  from  an analysis  of the  individual 
components  of that  total  demand  that  even  the 4 % 
average  is achievable  on unchanged  national  and 
Community  policies. 
4.2. The  Commission  assumes  a growth  rate  of 8 
to 9 % in total  world  trade.  Closer  examination 
suggests,  however,  that  almost  every  Member  State  is 
relying  on export-led  growth.  The  slow-down  of 
industrial  production  in the United  States,  Japan  and 
some  Member  States  suggest  that  the level  of growth 
in world  trade  experienced  in 1976  is unlikely  to be 
repeated  in 1977.  Some  uncertainty  must  remain 
therefore  about  the Commission's  figures. 
4.3. The  Commission's  annual  report  indicates  a 
very sluggish  response  of investment  to the process  of 
recovery.  In private  industry  this  may  be a lack  of 
confidence  in the continuation  of the  recovery  and, 
hence  doubts  on profitability. 
4.4. The  Commission  expects  a very  small  increase 
in public  spending.  This  means  that  the public  sector 
will not  be exerting  a major  dynamic  for growth  in 
this period. 
4.5. It  is not possible  to predict  the future  trend  of 
inflation  with  adequate  accuracy,  in particular 
because  of the  uncertainty  about  the  prices  of raw 
materials  and  oil. 
4.6. On  the other  hand,  internal  costs  are likely  to 
rise at a lower  rate  in the first  part  of 1977,  than  was 
the case  in 1976,  but  the  effect  of the  drought  on 
food  prices  and  CAP  policy,  plus  the policy  of certain 
Governments  to  increase  indirect  taxation  as 
recommended  by  the  Commission,  will  aggravate 
inflation  of consumer  prices.  On balance,  an average 
rate of inflation  at the same  level  as in 1976  seems 
likely. 
4.7. The  problem  of exchange  rates  and  public 
sector  deficits  needs  to be given  more  consideration 
than in the Commission's  report. 5. The  medium-term  context  into  which  the 
short-term  economic  policy  must  be set 
5.1. The  Committee  considers  it essential  that 
prospects  and  policies  for 1977  are put in the context 
of Community  policies  for the medium-term  to 1980. 
The Tripartite  Conference  set clear  objectives  for the 
Community  to 1980: 
— the  simultaneous  restoration  of full  employment 
and stability  as a matter  of priority, 
— the  annual  rate  of real  growth  of the  domestic 
product  of  the  Community  should  average 
around  5 % in the period  from  1976  to 1980, 
— full  employment  should  be reached  by 1980, 
— in all Member  States  the annual  rate  of inflation 
should  be reduced  gradually  to between  4 and 
5 % by not later  than  1980. 
Economic  objectives  for 1977  have  to be seen  in the 
context  of these  medium-term  targets. 
To back  up  the  objectives  of  the  Tripartite 
Conference,  efforts  should  be made  to create  a 
balanced  economic  structure,  a balanced  regional 
structure  and  a balanced  mix  of small,  medium  and 
large  firms. 
5.2. It  is the clear  view  of the Committee  that  the 
achievement  of these  targets  by 1980  will  not  be 
achieved  by conventional  economic  measures  alone. 
New  economic  strategies  have  to be evolved  both  at 
Community  and  at Member  State  levels.  Rapid 
macro-economic  reflation  —  even  if this  were 
possible  — would  be counter-productive.  A policy  of 
relying  solely  on the  growth  of world  trade  would 
likewise  not  produce  the  desired  aims.  Hence, 
spontaneous  reaction  of  the  market  will  not 
necessarily  be channelled  towards  the achievement  of 
the Tripartite  Conference  targets,  particularly  the 
achievement  of full  employment.  It is therefore 
necessary  for  Governments  to engage  in corrective 
action.  Member  States  need,  therefore,  to consider  a 
medium-term  programme  of specific  and  direct 
measures  corresponding  to the  targets  set  by the 
Tripartite  Conference  and  to the strategy  specified  in 
greater  detail  in the  medium-term  economic  pro-
No C 297/6 Official  Journal  of the European  Communities 16.12.  76 
gramme  to be adopted  by the  Community,  and  on 
which  the  Committee  is currently  preparing  an 
opinion,  to achieve  a major  coordinated  recovery  of 
output  and  employment  across  the Community. 
5.3. In  order  to achieve  the 1980  targets,  the target 
for 1977  would  have  to be higher  than  the  4 % 
suggested  in the Commission's  report.  The  estimated 
out-turn  for 1977  on output  and  employment  set out 
by the  Commission,  does  not  fit  in with  the 
achievement  of the  1980  target  date,  either  on a 
Community  level  or in relation  to policies  to be 
pursued  in the individual  States. 
6. Action  at national  level 
6.1. The  Committee  recognizes  that  the 
achievement  of these  Tripartite  Conference  targets  is 
essentially  a matter  of policies  being  pursued  at 
national  level  in the individual  Member  States.  The 
aim should  be  to  overcome  the  problem  of 
unemployment  whilst  continuing  to pursue  the gains 
made  on the  anti-inflation  side.  The  Commission  is 
extremely  weak  on policies  to be used  at national 
level.  The  Committee  believes  that  if unemployment 
is to be seen  as the priority  problem,  Governments 
must  not  put  at risk  the possibility  of expansion  by 
engaging  in further  bouts  of budgetary  or general 
deflation  — whether  by fiscal  or other  means.  The 
Commission  recognizes  this  danger  as not  just  a 
national  problem,  and  states  that  'if the  present 
weakness  in economic  growth  happened  to coincide 
with  the  effects  of  stabilization  programmes 
introduced  in member  countries,  the result  could  be a 
cumulative  contraction  of external  demand'.  Hence, 
as far as possible,  short-term  pressures  on the balance 
of payments  or in the public  sector  deficit  ought  not 
to override  an orderly  recovery  programme. 
6.2. On  the  other  hand,  blanket  reflationary 
measures  would  undoubtedly  endanger  all  the 
progress  made  in inflation,  and  could  well  endanger 
the balance  of payments  and  the  exchange  rate  as 
well.  Recovery  plans  have,  therefore,  to  be 
coordinated,  controlled  and  directed  specifically 
towards  investment  and  employment  creation. provide  a greater  dynamic  thrust  to aid recovery  than 
can be deduced  from  the Commission's  assessment. 
6.4. If  the  cutbacks  in the  public  sector  budget 
seriously  affect  capital  expenditure,  and  infrastructure 
such  as training  and  education,  then  the  rational 
restructuring  and  recovery  of the  economy  is put  at 
risk. 
6.5. Short-term  anti-unemployment  measures  will, 
in the Committee's  opinion,  continue  to be necessary. 
But the  emphasis  should  shift  to much  more 
sustained  job-creation  and  job  maintenance 
programmes.  A much  more  active  manpower  policy 
is needed,  including  the  extension  of industrial 
training  linked  to manpower  planning  and  job 
creation. 
6.6. A  firm  and  substantial  recovery  in private 
sector  investment  is needed.  There  is not  yet 
sufficient  confidence  in economic  stability. 
6.7. The  role  of construction  industries  of the 
period  of recovery  is crucial,  and  the stimulation  of 
the construction  industry  should  be an important 
component  of any  viable  recovery  programme. 
6.8. There  is a need,  therefore,  for  continued 
selective  investment  incentives  designed  to create 
jobs,  particularly  in the high  unemployment  regions. 
Much  investment,  however,  is not  'employment-
creating'  but  employment-reducing.  A medium-term 
policy  for investment  should  require  that  investment 
be selectively  directed  to projects  which  directly  or 
indirectly  produce  employment.  Since  the strategy  of 
the Commission  is  to  divert  resources  from 
consumption  by wage  earners  into  investment,  it has 
to be recognized  that  if workers  and  trade  unions  are 
to accept  such  restraint,  there  has  to be  some 
guarantee  of the social  efficacy  of these  investments, 
notably  of the effects  on job creation. 
6.3. The  Committee  wishes  to see  over  the 
medium  term  an orderly  reduction  in the  size  of 
public  sector  deficits  and  the  financing  burden  they 
impose.  However,  in the short  term,  public  spending, 
particularly  public  sector  investment,  will  need  to 6.9. In  extending  investment  incentives,  it is 
important  to avoid  either  damaging  competition 
between  Member  States  or conflicting  with  the 
enforcement  of Community  competition  policy. 
16.12.  76 Official  Journal  of the European  Communities No C 297/7 
6.10.  In  addition  to these  immediate  short-term 
measures,  the  Committee  recommends  that  each 
Member  State  should  itself  adopt  a medium-term 
programme  for  an  orderly  recovery,  with 
medium-term  targets  for  1980  that  are  compatible 
with  the objectives  set at Community  level  and  at the 
June  Tripartite  Conference.  Targets  should  cover 
employment,  growth  of output  and  inflation.  These 
targets  for the medium  term  should  then  be related 
back  for  each  year,  starting  with  targets  for  each 
Member  State  for 1977. 
6.11.  Those  countries  that  have  adopted  price  or 
income  controls  or some  combination  of both  as a 
means  of combating  inflation,  will  have  to assess 
their  relevance  in the light  of economic  recovery  and 
of the  Directives  and  recommendations  adopted  at 
Community  level. 
6.12.  Whilst  monetary  policy  will  have  to be 
carefully  considered  in all Member  States  so as not to 
endanger  progress  on inflation,  the Committee  does 
not consider  recovery  can  be induced  or inflation 
controlled  by blanket  measures  on the monetary  side. 
As the  Commission's  annual  report  indicates  in 
paragraph  4.11  'global  regulatory  instruments  are no 
longer  sufficient,  by  themselves,  to  conduct 
simultaneously  the  fight  against  inflation  and 
unemployment,  whilst  bringing  about  the  numerous 
structural  changes  which  are  required'.  However,  a 
greater  degree  of monetary  discipline  may  well  need 
to be exerted  in 1977  in some  Member  States.  The 
Commission,  in paragraph  4.6,  is not  precise  about 
this, and  nor  is the  Committee  in a position  to 
quantify  precise  criteria.  But  the  Committee 
recommends  that  the Commission  should  engage  in a 
further  study  of the  role  of money  supply,  and  the 
issues  raised  in paragraph  4.6. 
7. Action  at Community  level 
7.1. Action  at national  level  needs  to be sup-
plemented  by Community-level  policies  on two  levels: 
The use  of  Community  resources  to  alleviate 
structural  unemployment  difficulties.  This  involves 
greater  coordination  of Community  efforts  in this 
field,  bringing  together  policy  on the Social  Fund,  the 
Regional  Fund,  the  European  Investment  Bank  and the social  aspects  of the Common  Agricultural  Policy 
and the  Coal  and  Steel  Community  grants. 
Specifically,  we recommend: 
(a) as the  Commission's  annual  report  indicates  in 
paragraph  4.11,  a greater  degree  of coordination 
between  these  instruments  is needed  in order  to 
initiate  policy  for employment  and  retraining  in 
response  to structural  change.  The  Committee 
recommends  that  the  Commission  give  urgent 
consideration  to  the  machinery  required  to 
achieve  this  coordination; 
(b) in view  of the  importance  of the  Regional  and 
Social  Funds  in the tackling  of unemployment  on 
a Community  basis,  and  the inadequacy  of their 
present  resources,  the  Committee  recommends 
that resources  available  to both  Funds  should  be 
increased,  and  the  criteria  under  which  they 
operate  reviewed; 
(c) that  consideration  be given  to allowing  Regional 
Fund  Expenditure  outside  assisted  areas, 
particularly  in city  centres,  and  other  areas  of 
high unemployment. 
8. The  coordination  of policies  between  Member 
States 
8.1. If  Community  countries  are to have  a chance 
of achieving  the growth  rates  set by the  Tripartite 
Conference,  then  1977  must  witness  major  progress 
towards  these  objectives  — all of which  could  be 
jeopardized  if individual  Member  States  adopt 
policies  which  endanger  expansion  elsewhere,  or 
engage  in restrictive  macro-economic  policies  which 
slow  down  the  aggregate  growth  rate.  This  is 
recognized  by the  Commission  in paragraph  4.3  of 
the annual  report.  For  these  reasons,  greater 
coordination  is needed  in 1977.  If, as recommended 
above,  each  Member  State  identifies  target  growth 
rates,  specifying  components  of demand,  including 
particularly  exports  to other  Member  States,  then  the 
basis  of some  embryonic  synchronization  process  on 
recovery  is provided.  The  Committee  recommends 
that this  process  of coordinating  Member  States' 
economic  policies  should  be  scrutinized  by  the 
Commission  and  by the  Council  of Finance  and 
Economic  Ministers  on the basis  of the work  of the 
Economic  Policy  Committee  and  the  Monetary 
Committee. 
8.2. It  has  to  be  recognized  that  such 
synchronization  will  put  a major  responsibility  on 
surplus  countries  to expand  more  rapidly  and  more 
No C 297/8 Official  Journal  of the European  Communities 16.12.  76 
substantially  than  might  have  been  the case  if purely 
national  priorities  applied. 
8.3. Coordination  among  the Member  States  with 
regard  to trade  policy  is of great  importance.  It is, 
therefore,  necessary  to work  out  a way  to improve 
the current  policy  and,  if necessary,  adapt  it to new 
experiences. 
8.4. A  danger  to orderly  recovery  is the problem  of 
continual  instability  of exchange  rates.  A greater 
stability  in these  rates  must  be an objective  of the 
Community  policy  and  Community  action. 
This  may  well  require  an increase  in the availability 
of contingency  funds  at Community  level  to help  out 
currencies  under  pressure.  Action  should  also  be 
taken  on the related  problems  of exchange  rates. 
8.5. The  Community  must  take  cognizance  of the 
danger  of a collapse  of one  major  Member  State's 
balance  of payments  jeopardizing  the whole  recovery 
programme.  The  Committee  considers  that  any  loans 
should  be channelled  via  Community  institutions 
rather  than  be the  result  of ad hoc  multilateral 
arrangements;  it also  considers  that  stringent  criteria 
regarding  conditions  governing  the granting  of loans 
and the utilization  thereof  should  be set in advance  at 
Community  level. 8.6. A  revival  of upward  inflationary  pressures  on 
consumer  prices  would  threaten  a policy  based  on 
growth  of output.  The  Committee  would  recommend 
that at the  next  round  of CAP  intervention  price 
adjustments  and  adjustment  of currencies  within  the 
CAP,  the wider  implications  of agricultural  price  rises 
on inflation  be taken  into  account. 
8.7. The  Commission's  suggestion  for  increasing 
indirect  taxation  and  public  sector  charges  could  be 
dangerous  in aggravating  retail  price  inflation  and 
hence  wage  pressures. 
9. Tripartite  Conference 
9.1. The  Committee  welcomes  the results  obtained 
at the Tripartite  Conference  in Luxembourg  on the 
question  of medium-term  targets.  It believes  that 
these  initiatives  should  be  followed  up  and 
preparatory  work  improved.  The  Economic  and 
Social  Committee  should  also  take  part  in such  work, 
alongside  the Commission  and  the  Economic  Policy 
Committee. 
9.2. It  is in this  spirit  that  the Committee  considers 
that,  if it is to be effective,  the initiative  envisaged 
should  be based  on a confrontation  of the same  kind 
in all the Member  States. 
Done  at Brussels,  28 October  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
The following  amendment  was  rejected  during  the discussion: 
Point  5.2. 
Delete. 
16.12.  76 Official  Journal  of the European  Communities No C 297/9 
Reasons 
In this  point,  the  Section  says  that  'new  economic  strategies  have  to be evolved  both  at 
Community  and  at Member  State  levels'.  I think  this  is unacceptable  because  it gives  the 
impression  that  present  strategies  in the  Member  States  are  incapable  of gradually  bearing 
fruit,  bearing  in mind  the  time  needed  to implement  measures  already  passed  and  the  effects 
these  measures  can  still  produce.  It is not so much  a question  of introducing  new  measures,  but 
of implementing  present  ones  more  forcefully  at national,  intra-Community  and  even  national 
level.  Further  on,  the  Section  says  a 'major  coordinated  recovery  of output  and  employment' 
must  be achieved  through  selective  and  direct  measures.  To my  mind,  this  means  a direct  and 
centralized  control  of companies'  activities,  which  would  destroy  the  singleness  of the  market 
by discriminating  between  different  sectors  and  firms.  One  might  well  wonder  who  could  fulfil 
this coordinating  role  at Community  level;  even  at national  level,  this  type  of micro-economic 
dirigism  does  not  exist  in those  EEC  countries  that  have  the  least  inflation  and  the  most 
balanced  growth. 
Quite  apart  from  this,  I think  that  point  5.2  should  be deleted  because  points  6 and  7 say 
in a much  clearer  and  more  moderated  way  what  economic  and  social  measures  should  be taken 
at both  national  and  Community  level. 
Opinion  on  the  proposal  for  a Council  Directive  concerning  indirect  taxes  on 
transactions  in securities 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 133  of 14 June  1976,  page  1. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 12 April  1976,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  100  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
142nd  plenary  session,  held  in Brussels  on 27 and  28 October  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community  and,  in particular,  Article  100 
thereof, 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 12 April  1976  for an 
opinion, 
Having  regard  to the decision  taken  by its Bureau  on 
27 April  1976,  instructing  the Section  for Economic and Financial  Questions  to draw  up an opinion  on 
the matter, 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr Cammann, 
Having  regard  to the opinion  adopted  by the Section 
for Economic  and  Financial  Questions  at its meeting 
on 31 August  1976, 
Having  regard  to the discussions  at its 142nd  plenary 
session  held  on 27 and  28 October  1976  (meeting  of 
27 October  1976),