NoC352/32 OfficialJournaloftheEuropeanCommunities 30.12.93
Opinionongrowth,competitiveness andemployment :medium-termconsiderations
PriorityforemploymentwithinthecontextoftheEuropeansocio-economic system
(93/C352/09
AtitsPlenarySessionon30June1993theEconomicandSocialCommittee,actingunder
thefourthparagraphofArticle20ofitsRulesofProcedure,decidedtodrawupanOpinion
ongrowth,competitiveness andemployment .
ThetopichadbeenlaunchedbytheEuropeanCouncilinCopenhagenon21and22June
1993,whichaskedtheCommissiontodrawupaWhitePaperwithaviewtoestablishing
thebroadeconomicpolicyguidelinesrequiredunderArticle103(2)oftheEECTreatyas
amendedatMaastricht .
ThepresentOpiniondealswithmedium-termmeasures.Short-termmeasures,andspecific
measurestoprepareforthesecondstageofEconomicandMonetaryUnion,areconsidered
inotherOpinions(1).
TheSub-Committee onGrowth,competitiveness andemployment ,setupunderArticle17
oftheRulesofProcedureinordertopreparetheCommittee'sworkonthesubject,adopted
adraftCommitteeOpinionon11October1993,inthelightofareport(2)drawnupbythe
Rapporteur ,MrRomoliandtheCo-Rapporteur ,MrBurnel.
Atits309thPlenarySession(meetingof20October1993),theEconomicandSocialCommittee
adoptedthefollowingOpinionbyalargemajorityvotewitheightabstentions .
1.TheCommitteebelievesthatithasaformalduty
totakepartinthedebateonthestrategicissuesraised
bythetopicsofgrowth,competitiveness andemploy­
mentintheCommunity .2.TheCommitteewelcomestheinitiativefora
WhitePaper.Itfeelsthattheemploymentobjective
mustbegivenpriority.Thisrequiresahighlevelof
competitiveness ,whichcanbeachievedinparticular
throughimprovingefficiencyofthesystemofpro­
duction.High-valueproductsandservicesrequirea
highstandardofmanagerialcompetence,vocational
training,infrastructure ,research,socialsecurityand
environmental andconsumerprotection.Europeneeds
aqualitativegrowthstrategy.1.1.ThepresentOpinionisdesignedtoassistinthe
draftingoftheWhitePaperwhichtheCommissionis
topresenttotheCouncilinDecember.
1.2.TheOpinionconcentratesonmediumtolong-2.1.IfwearetomaketheEuropeaneconomymore
termproblems,theaimbeingtoscrutinizetheirstruc-competitiveonworldmarketswemustfirstscrutinize
turalcausesandtodecidewhatpoliciesshouldbeallthefactorsinvolved:economic,socialandpublic.In
adopted.ThesepolicieswillprovideayardstickfortherecentdecadesthewholeEuropeanproductionsystem
shortertermdecisionsonhowtoovercomethepresenthasbecomelessadaptable.
recession .
1.3.TheCommittee'sanalysiswillfocusonthe
searchforstrategiesembracingbotheconomicand
socialaspectsandhavingastheirprimeobjective
employment ,asthisistheproblemofgreatestconcern
toallsectorsofEuropeansocietyandhencetothe
generalpublic.2.2.InmostMemberStates,employersaredismayed
atthewayinwhichindustryhasbeenincreasingly
subjectedtooftenburdensomeandsometimesunjusti­
fiedcharges,andhamstrungbyconstraintsofallkinds.
Restrictiverulesandregulationshavepreventedthem
fromorganizingtheirproductionprocessesefficiently
(andsomeoftheseregulationscomefromtheEC).
2.3.Employersthereforecallforearlyactiontofree
firmsfromtheseconstraints .
0)AdditionalESCOpinionontheAnnualeconomicreportfor
1993andAdditionalESCOpinionontheAnalysisofpolicies
tobepursuedintheCommunityduringthetransitionalstage
ofEMU.
(2)SeetheReportoftheSub-Committee ongrowth,competi­
tivenessandemployment (CES855/93fin).2.4.TheCommitteeconsidersthatactionshouldbe
takeninalltheMemberStatesandatCommunitylevel

30.12,93 OfficialJournaloftheEuropeanCommunities NoC352/33
giverenewedconsideration tothedifficultsituations
facingtheMemberStates.toidentifylawsneedingamendment,soastopermit
moreefficientorganizationofproductionprocessesand
services.
4.2.Labourmarketstructuresmustbemademore
effective,anditisnecessarytopursueamoreactive
employmentpolicywhichincreaseslabourmobility.2,5.Thepoliciestobepursuedmustcreatetheright
environmentforfirmstoadoptinnovativebusiness
strategiesaimedatmodernizingandbroadeningtheir
productrangeandopeningupnewmarkets.Early
actionisneededtoinvigoratefirmsandsafeguardcom­
petition,inordertopavethewayforareturnto
competitiveness throughthelaunchingofnewinitiat­
ives,ariseininvestment,andgrowthintheEuropean
economy.Stepsmustalsobetakentoensuretheproper
operationofcompetitionandtopreventtheemergence
ofmonopolies .4.3.Somepeopleviewtherigidityofthelabour
marketasthemainfactorimpedingitssmoothoper­
ation,andcallfortheeliminationofthemostrestrictive
andhideboundrules(which,forinstance,discourage
employersfromtakingonnewworkers,particularly
youngones).Othersconsiderthatreducingconstraints
andworkerprotectionwoulddolittletoboostemploy­
ment.
2.6,Theremovalofrestrictionsmustnotunac­
ceptablyimpairthelegalsituationofworkers.4.4.Atallevents,theaimmustbetoreconcilethe
needforbusinessefficiencyandcompetitiveness with
theneedtotreatworkersfairly.Widerworkerconsul­
tationandparticipation incompanylifecouldhelp
here. 2.7.Thereareanumberofpreconditionsforareturn
toasteadyimprovement inthecompetitiveness of
theEuropeanproductionsystem:developmentofhigh­
qualitystrategies,asearchforgreatersynergiesona
Communityscale,thefightagainstwaste,andbetter
useofexperiencesandhumanresourcesbasedona
frameworkofjointresponsibility .5.PreviousESCOpinions(')havemadeadetailed
analysisofthekeyproblemsbesettingtheEuropean
economyandhavesoughttoidentifythemeasures
neededtoimplementstructuraladjustmentswithinthe
frameworkoftheCommission'sapproachtoindustrial
policy.
3.ManyMemberStatesfacedistortedstructural
situations,particularlyasregardsfinanceandtaxation.
Theeffectoftheseistodivertresources(especially
householdsavings)fromwealth—andjob-creating
assets,spurringtheminsteadtoseekpurelyfinancial
returnswhichencouragelessproductiveusesandcon­
sumptionpatterns.6.Thefirstkeyprincipletofollowinordertoboost
growthandemployment istomakefulluseofthe
potentialgeneratedbytheinternalmarket-—apoint
alsomentionedattheCopenhagenSummit.
6.1.Theinternalmarket,enlargedbytheEuropean
EconomicArea,isthelargestandmosthighly-skilled in
theworld,withmorethan350millionpeopleenjoyinga
highlevelofearningsandtraining.3.1.Themainresponsibility forremedyingthis
unsatisfactory stateofaffairslieswiththeMember
States,buttheCommunityshouldplayanimportant
coordinatingrole,keepinganeyeonmacroeconomic
balances(ofwhichtheinterest-ratepolicypursuedby
thecentralbanksisoneaspect). 6.2.Thisisthebaseonwhichtobuildthefutureof
theCommunityandEuropeasawhole,andtotrigger
strongeconomicgrowth,whichshouldincreasingly
affectneighbouringcountriesinCentralandEastern
EuropeandintheMediterranean .3.2.Atallevents,wemustnotoverlooktheneed
foramorebalancedmacro-economic policypackage
designedtoboostgrowthandemployment .
7.Europeisparticularlywellplacedtotakeadvan­
. tageoftheopportunitiesofferedbythepresenttechno­4.TheCommitteetakestheviewthatsmoothoper­
ationofthelaboursystemisofcrucialimportancefor
theCommunity'sfuture.
(!)Sec,forexample,theESCOpinionof27November1991on
theCommissionCommunication onIndustrialPolicyinan
4.1.Itthereforeurgentlycallsonthesocio-economic OpenandCompetitiveEnvironment (OJNoC40,
organizations andthenationalandECauthoritiesto17.2.1992).

NoC352/34 OfficialJournaloftheEuropeanCommunities 30.12.93
10,3.Allformsofmeasureaimedatpromotingand
redistributing employmentmustbere-examinedby
government,employersandworkers.logicalrevolution,whichisbringinganunprecedented
expansionofscientificknowledgeandcontinuoustech­
nologicalinnovationsinbothtraditionalindustriesand
newhigh-techones.
10.4.Socialsecurityschemesshouldbeaimedmore
atthepreventionofunemployment andrapid
reinsertionintothelabourmarkete.g.throughtraining,
ratherthanexclusivelyatthe;provisionofbenefitsin
lieuofpay.7.1.AhugeopportunitythuslieswithinEurope's
grasp.Toseizeit,Europemustnotunderestimate the
importanceofcreatingauniformframeworkconducive
towell-targeted ,coordinatedresearchanddevelopment
strategiesthatsynergicallycombinetheeffortsofall
theMemberStateswithinthecontextofaCommunity
industrialpolicy.Suchapolicymusttakeaccountof
thecomplexsituationbothinsideandoutsidetheCom­
munity,andmustencouragemorebalanceddevelop­
mentandgreatereconomicandsocialcohesion.10.5.Itwillalsobenecessarytorethinktherole
playedbypublicservicesandsectorswhichcontribute
tothequalityoflife,asthesehaveconsiderablejob­
creationpotential.
8.Considerable attentionshouldfocusonsmalland
medium-sized businesses.Theirabilitytocreatejobs
willbeallthegreateriftheyhaveaccesstoefficient
systemsfordisseminating technologicalinformation
andforobtainingassistance (financialandotherwise)
towardsinnovativedevelopment .10.6.Inthiscontext,therecouldbeanincreasein
jobsinthecaringvocationswhich,inviewoftherising
averageageofthepopulation,willcometotheforein
Europeinthecomingyears.
9.Atthesametime,theproblemofadaptationof
MemberStates'educationandtrainingsystems,in
ordertomakethemmoreresponsivetochangingsitu­
ations,mustberesolutelyaddressed.10.7.However,itiscriticallyimportanttorespect
theprinciplethatsuchactivitiesshouldbefundedfrom
ordinarydirectandindirecttaxation.Thereshouldbe
norecoursetounacceptable financingpractices
(inflationorState-fundeddeficitsleadingtoarisein
publicdebt),itbeingunderstoodthat,whereverposs­
ible,thebeneficiariesshouldcontributetothefunding.9.1.Nationalgovernmentshaveakeyroleinprovid­
ingyoungpeoplewithasolidbasicandtechnicaledu­
cation.Thetaskofindustryistosupplementand
enhanceworkers'skillsbyprovidingfurthertrainingat
alllevels.Thesocialpartners,fortheirpart,musttake
onthetaskofsupportingthedevelopmentoftraining
withinaEuropeanperspective .10.8.Thenecessaryrules(acompetitivemarket,Sta­
tebudgetarydiscipline,controlofinflation)arealready
tobefoundintheMaastrichtTreaty,whichalso
enshrinesthemoralvalueswhichcanreconcilethe
'solidarity'and'market'conceptsthatarecrucialto
Europe'sre-emergentsocialandculturalvalues.
10.Afterthesecondworldwar,therewasamove
withinEuropeansocietytowardsthemarketeconomy,
whichitwasfeltofferedthebestwayofreconciling
theproblemsofeconomicgrowthwiththedevelopment
ofasystemofsocialprotectionandsolidaritythat
reflectstheaspirationsofitscitizens.11.TheCommissionhasproposedthecreationof
integratedtrans-European infrastructure networksin
thetransport,energyandtelecommunications sectors.
Thesecouldstimulatedemandintheshortterm,while
inthemediumtolongtermtheyshouldfacilitatethe
movementofgoodsandservicesbyprovidingfastand
reliableconnections .10.1.Certaincountriessetupa'socialmarketecon­
omy',madepossiblebythebroadconsensusreached
afterwide-rangingtalksbetweengovernmentandsocial
partners.Inothercountries,theideaofthemarket
economywasheavilyinfluencedbyStateintervention
intheeconomy(evenifthesearchfor'consensus'has
recentlybeensteppedupinthesecountries). 11.1.TheCommitteesupportstheseproposals:Eur­
opeissettobecomeahigh-technology areawith
decentralizedproductioncentres.Inordertoexploit
thefullpotentialoftheinternalmarket,itwillneed
highlyefficientinfrastructurefordata-processing ,pass­
engerandfreighttransport,andthetransmissionof
ideas.10.2.Evenintheeventofareturntostronggrowth,
Europe'spresentproductionsystem(basedonamarket
economyopentointernationalcompetition )islikelyto
beabletoabsorbonlypartofthepoolofunemployed .

30.12.93 OfficialJournaloftheEuropeanCommunities NoC352/35
11.2.HowevertheCommitteeisobligedtonotethat,
alltoooften,thedecisionstakenatthehighestlevel
provedifficulttoimplementinpractice.
12,Thesecondkeycomponentinactivepromotion
ofeconomicgrowthmustbeexpansionoftradeand
assistancewiththedevelopmentofthirdcountryecon­
omies,beginningwiththeCommunity'snearestneigh­
bours.
12.1.SwiftconclusionoftheGATTUruguayRound
negotiationsisvital.However,theCommunitymust
takeapragmaticlinewhendeterminingitspositionand
rolewithintheworldeconomy,asthepracticesof
competitorcountriessometimesdeviatefrommultilat­
eralistprinciplesandfavourregional-levelpreferential
agreements .
12.2.Prioritymustcontinuetobeaccordedtocoop­
erationwithCentralandEasternEuropeancountries.
However,theCommitteenotesthatimportantthough
theCommunity'seffortsare,theydonotappearsuf­
ficienttoconvertthesecountriestoamarketeconomy
withinareasonabletime-frame,andstilllesstointe­
gratethemintotheWesterneconomicsystem.
12.3.TheCommunityshouldplayamoreactivepart
inthisrecentlylaunchedprocess,andshouldsetmore
far-sightedgoalsthatformpartofaclearstrategyfor
thedevelopmentofthewholeEuropeancontinent.
12.4.Specialattentionshouldalsobepaidtocooper­
ationwiththeMediterranean nations,whicharehard
pressedandwhichareanimportantfactorforthe
stabilityoftheEuropeanintegrationprocess.
12.5.Apartfromafewsuccessesinextremely
localizedareas,thepolicyoftheECandotherindus­
trializednationstowardsthedevelopingcountrieshas
toalargeextentbeenafailure.Wecannotsitbackand
letitcontinue.
12.6.Norshouldweoverlookthepotentialcontri­
butionwhichrevampedspecificprogrammesofcooper­
ationwiththeemergentnationscouldmaketodevelop­
mentandemployment ,bothintheCommunityandin
itspartnercountries,providedthattheseprogrammesaretargeted,implementedandmonitoredmoreeffec­
tively.
12,7,IntheCommittee'sview,theCommunity
shouldseizetheinitiativehere—interaliavis-a-visthe
otherindustrializednations—bydevisingnewmedium
andlong-termguidelinesandstrategies,
13.TheCommittee'sconclusionsareasfollows:
13.1.ByadoptingaCommunityapproachwhich
complementsnationalmeasures,positiveanswerscan
befoundoverthemediumtermtomostoftheissues
raisedinthepresentOpinion:howtorestoreEurope's
economiccompetitiveness ,restoresatisfactorygrowth
ofthewealth-producing system,retainasatisfactory
socialpolicy,andcreateenoughnewjobs.
13.2.Thepreconditionforthisistheadoptionof
appropriateeconomicpolicieswithclearpriorities.
Theymustbecoordinatedandnon-dogmatic ,andmust
bepursuedresolutelybytheMemberStatesandthe
Community .Theymustbegearedtothedevelopment
oftheeconomywhileatthesametimerespectingthe
solidarityrequirements towhichEuropeansociety
aspires.
13.3.Clearmessagesconcerningthefuturepath
towardsPoliticalUnionareneededinordertorestore
confidenceintheCommunity'sfuture.Thepublicmust
perceivePoliticalUnionasavitalcontributiontothe
re-establishment ofgrowth,competitiveness and
employment .Thesocio-occupational organizations
mustbereadytoshoulderresponsibilities whichtran­
scendtheirstrictsectoralinterests.Recognition is
neededoftherolewhichworkers'andemployers'
organizationshavecometoplayinEurope,andthis
rolecanbeputtoadvantageinordertohammerouta
jointapproach.
13.4.TheCommunityrefusestobelievethatunem­
ploymentisinevitable.Everyconceivablestepmustbe
takentorestoretherighttowork,animportantfactor
inindividualself-respect .ThecitizensofEurope,united
withintheEuropeanCommunityand,soon,withinthe
EuropeanUnion,willtogethermapputanewpathof
developmentandsolidarity.
DoneatBrussels,20October1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN