12. 6. 76 Official  Journal  of the  European  Communities No C 131/67 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
The following  amendment  was  rejected  in the course  of the discussions: 
Item  8.2 
Delete  the last  sentence,  which  reads: 
'Notwithstanding  that  which  has  been  stated  at the opening  of this  paragraph,  the section 
proposes  that,  should  the  Council  of Ministers  fail  to decide  on the  location  of the 
institute  within  one  year,  it should  be based  in Brussels.' 
Reasons 
1. Normally  the time  limit  should  begin  as from  the entry  into  force  of the Regulation,  as 
it is through  this  instrument  that  the Council  of Ministers  will  lay down  the location  of the 
institute  (Article  1 (3)).  It is, therefore,  difficult  to understand  what  is supposed  to be the 
meaning  of the sentence  whose  deletion  is sought. 
2. The  Community  is not a unitary  State.  Institutional  decentralization  is, therefore,  to be 
recommended,  to the  extent  that  it is compatible  with  the  smooth  functioning  of the 
Community.  It is sufficient  for the institute  to be situated  in a spot  which  fulfils  the criteria 
set out  at the  beginning  of the paragraph,  namely,  ease  of communication  with  the various 
Community  institutions  (including  the  Statistical  Office),  adequate  scientific  facilities  and 
data-processing  facilities. 
Voting 
For: 22, against:  26, abstentions:  31. 
Opinion  on the  communication  from  the  Commission  to the  Council  concerning 
the European  social  budget 
The text  referred  to the  Committee  has  not  been  published  in the  Official  Journal 
of the  European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 6 January  1976,  the  Council  referred  the  abovementioned  communication  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 138th  plenary  session,  held  in Brussels  on 31 March  and  1 April  1976. 
The full  text  of the  opinion  is as follows: 
No C 131/68 Official  Journal  of the European  Communities 12. 6.76 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  for an opinion  made 
by the Council  of the European  Communities  on 
6 January  1976, 
Having  regard  to the  Treaty  establishing  the 
European  Economic  Community,  and  in par-
ticular  Article  198  thereof, 
Having  regard  to the decision  taken  by its chair-
man on 12 January  1976,  under  Article  22 of the 
Rules  of Procedure,  instructing  the  Section  for 
Social  Questions  to draw  up an opinion  and  a 
report  on the matter, 
Having  regard  to the  opinion  issued  by  the 
Section  for Social  Questions  at its meeting  on 11 
March  1976, 
Having  regard  to the  report  submitted  by the 
rapporteur,  Mr van  Rens, 
Having  regard  to the  discussions  at its 138th 
plenary  session  held  on 31 March  and  1 April 
1976  (meeting  of 31 March), 
Whereas  the  social  budget  can,  under  certain 
conditions,  become  a useful  aid in decision-mak-
ing at Community  and  national  level,  particularly 
in conjunction  with  medium-term  economic  plan-
ning; 
Whereas  the social  budget  will  help  to give  social 
policy  some  of the  instruments  for analysis  and 
action  that  it needs  if workers'  living  and  work-
ing conditions  are  to be improved  and  aligned 
while  the improvement  is being  maintained, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
1. The  Committee  would  endorse  the favour-
able positions  which  it has  adopted  previously  (') 
0) OJ No C 37, 1. 4. 1974,  p. 31. with  respect  to the  European  social  budget. 
Budget.  Work  on implementing  the social  budget 
must  continue  and  be speeded  up,  in accordance 
with  the Council  resolution  of 21 January  1974 
concerning  a social  action  programme.  The  Com-
mittee  considers  it necessary  that  the Commission 
should  accord  higher  priority  to implementing  the 
social  budget  and  that  it should  find  adequate 
means  of carrying  out this  task. 
2. The  Committee  approves  the Commission's 
proposed  general  objectives  for  the  European 
social  budget,  namely  that  it should: 
— be a source  of quantitative  information  (i.e. 
an inventory)  on  past  and  future  (i.e. 
medium-term)  trends  in:  (a)  social  expendi-
ture in the various  fields  of social  policy;  and 
(b) the financing  of this  expenditure,  the fore-
casts  being  based  on the assumption  that  there 
will be no change  in existing  legislation; 
— be progressively  used  as an aid  to decision-
making  and  to selecting  priorities  at Com-
munity  and  national  level. 
3. Article  117  of the  EEC  Treaty  stresses  the 
need  to 'promote  improved  working  conditions 
and an improved  standard  of living  for workers, 
so as to make  possible  their  harmonization  while 
the improvement  is being  maintained'.  The  Com-
mittee  considers  that  the European  social  budget 
should  be geared  to this  Article  of the Treaty  in 
particular.  It should  be one  of the  essential 
instruments  for decision-making  in this  sphere,  at 
least  in conjunction  with  other  means. 
4. As  far as its present  content  is concerned, 
the European  social  budget  is founded  on harmo-
nized  statistics  prepared  by the Statistical  Office 
of the European  Communities.  It thus  makes  for 
greater  comparability  of fields  of application, 
benefits  and  financing  of social  expenditure.  This 
will provide  useful  information  about  other 
aspects  of socio-economic  policy,  for  instance 
income  distribution.  A finer  analysis,  based  on, 
among  other  things,  comparable  social  indicators 
should  also  permit  in-depth  study  of: (i) how  the 
different  types  of expenditure  are  distributed 
within  the  various  GNP's;  and  (ii) in particular 
the purposes  of expenditure  and  the  proportion 
used  to satisfy  the various  collective  needs.  Only 
through  such  an approach  will  the  European 
social  budget  be able  to give  Community  social 
policy  the necessary  foundation. 
In view  of the  data  it contains,  the  European 
social  budget  is bound  to become  a vital  tool 
12. 6. 76 Official  Journal  of the European  Communities No C 131/69 
both  for preliminary  analysis  in the preparation 
of decisions  and,  in particular,  for enabling  the 
role and  importance  of social  expenditure  within 
the framework  of GNP  to be determined  in the 
light  of all the relevant  information,  including  the 
various  fundamental  economic,  social,  financial, 
demographic,  etc.,  factors.  There  must  also  be 
more  selectivity  in apportioning  and  increasing 
social  expenditure  within  the  framework  of the 
GNP  and  more  account  must  be taken  of the new 
priorities  and  aspirations. 
5. Progressively,  the information  contained  in 
the European  social  budget  should  also  help 
analysis  and  decision-making  in other  spheres  of 
socio-economic  policy  at Community  and  Mem-
ber State  level.  For example: 
— the  relative  importance  of the  funding  of 
social  expenditure  as compared  with  other 
kinds  of expenditure  at national  and  Com-
munity  level; 
— the  links  with  general  economic  policy  (at the 
macroeconomic  level)  the  impact  on  the 
microeconomic  plane  and  the  relationship 
with:  (a)  fiscal  policy;  and  (b)  demographic 
policy  and  demographic  trends; 
— the  relationship  between  financing  and expen-
diture  (distinguishing  between  administrative 
costs  and  benefits)  with  a view  to establishing 
to what  extent  the  principle  of solidarity  is 
operative.  Factors  such  as financial  capacity, 
justice  and  efficiency  must  be taken  into 
consideration  here. 
6. The  Committee  approves  the Commission's 
proposals  in respect  of the scope  of the European 
social  budget.  It is intended  to cover  social 
protection  (social  security,  employers'  voluntary 
contributions,  benefits  for  victims  of adverse 
political  events  and  natural  disasters,  social  assis-
tance).  Looking  to the  future,  the  Committee 
urges  that  the  field  of application  of the  social 
budget  be progressively  expanded  as far  as is 
materially  possible.  The  starting  point  might  be, 
the Commission  suggests,  vocational  training  for 
adults,  low-cost  housing.  In addition  there  would 
be tax  advantages  for social  reasons.  The  Com-
mittee  trusts  that  at a later  stage  public  sector 
expenditure,  the maintenance  of income  for wor-
kers undergoing  retraining  and  looking  for a job, 
etc. will  be taken  into  consideration  too. 
Accordingly,  the  definition  of the  term  'social 
expenditure'  should  be reviewed. The definition  currently  in force  is the one  used 
for the social  accounts  drawn  up by the Statistical 
Office  of the  European  Communities.  It corre-
sponds  to social  protection. 
The definition  is as follows: 
'Any  expenditure  involved  in meeting  expenses 
which  households  incur  as a result  of the 
materialization  or existence  of certain  risks  or 
needs,  in so far as this  expenditure  gives  rise to 
the intervention  of a "third  party"  namely  a 
unit other  than  the households  themselves  — a 
public  or private  administration  or undertaking 
— without  there  being  any  simultaneous  equiv-
alent  counter-contribution  by the beneficiary. 
Expenditure  by a household  to assist: 
— one  or more  of its members  is not deemed 
to be "social"; 
— another  family  (for  example,  direct  gifts)  is 
not amenable  to statistical  coverage.' 
With  a view  to the  expansion  of the  social 
budget's  field  of application  the  Commission 
should  be enabled  to adapt  the definition  accord-
ingly. 
Unless  the scope  of the social  budget  is expanded 
it will  not  only  be inadequate  as an information 
instrument  but  will  be unable  to fulfil  effectively 
its role  as an aid to decision-making. 
7. The  Committee  considers  that  when 
economic  growth  is being  determined  and  imple-
mented,  more  consideration  must  be paid  to the 
quality  of life  and  to the  physical  and  human 
environment.  It considers  that,  if social  aims  are 
to be achieved,  the European  social  budget  will, 
in future,  have  to be designed  specifically  as a 
fully-fledged  instrument  for  Community 
medium-term  economic  planning. 
8. The  Committee  agrees  with  the  five-year 
period  to be covered  by forecasts  and  with  the 
two-year  interval  between  social  budgets. 
However,  it considers  that  these  periods  should 
be re-examined  in the light  of experience. 
9. The  Committee  considers  that  it should  be 
kept regularly  informed  on the later  phases  of the 
preparation  of the  second  social  budget  and 
No C 131/70 Official  Journal  of the European  Communities 12. 6. 76 
consulted  at important  stages.  This  will  enable  it 
to make  its contribution  towards  implementing 
the general  principles  contained  in the Commis-
sion's  communication  to the  Council.  In this connection,  the procedure  used  by the Commis-
sion when  dealing  with  medium-term  economic 
policy  should  be followed  in order  to guarantee 
the desired  regular  flow  of information. 
Done  at Brussels,  31 March  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the coordination  of national  employment  policy  instruments 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 137th  plenary  session  held  on 25 and  26 February  1976  the Committee, 
acting  on a proposal  from  the  Bureau,  decided  to deliver  an opinion  on the 
abovementioned  subject  on its own  initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at 
its 138th  plenary  session,  held  in Brussels  on 31 March  and  1 April  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the fourth  paragraph  of Article 
20 of its Rules  of Procedure, 
Having  regard  to: (i) the Bureau's  proposal  that 
the Committee  should  draw  up an opinion  on the 
coordination  of  national  employment  policy 
instruments;  (ii) the decision  which  the Commit-
tee, sitting  in plenary  session,  took  to that  effect 
on 26 February  1976, 
Having  regard  to the opinion  of the  Section  for 
Social  Questions  of 11 March  1976, Having  regard  to the  report  submitted  by the 
rapporteur,  Mr Laval, 
Having  regard  to the  discussions  at its 138th 
plenary  session  of 31 March  and  1 April  1976 
(meeting  of 1 April  1976), 
Whereas  employment  problems  in the  Member 
States  are  becoming  increasingly  similar,  par-
ticularly  in the current  crisis,  which  is characte-
rized  by rising  unemployment;