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DELACOMMISSION
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DOCUMENTS "COM"
COM(78)102
Vol.1978/9018

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)102final.
Brussels.13March1978#
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
CONCERNING THEADJUSTMENT OPTHEECONOMICPOLICYGUIDELINES
FOR1978
CCM(78)102final.

TABLEOFCONTENTS
FOREWORD
I.ECONOMIC OBJECTIVES ANDPOLICY GUIDELINES FOR
1978CONTAINED INTHEANNUAL REPORT
II.THERECENT STANCE OFBUDGETARY ANDMONETARY
POLICIES
III.TRENDS ANDOUTLOOK INTHEEUROPHAN ECONOMY
17.GENERAL POLICY GUIDELINES
CONCLUSIONS
STATISTICAL ANNEX

FOREWORD
Pursuant toArticle 2ofthe Council Decision of
18February 1974 ontheattainment ofahigh degree of
convergence oftheeconomic policies oftheMember States ,
theCouncil must adjust assoon aspossible inthe first
quarter theeconomic policy guidelines forthecurrent year
asrequired byeconomic developments .Tothis end,and in
accordance with Article 1ofthesame decision ,theCommission
isforwarding this communication totheCouncil .
Inaccordance with Articles 2and 12oftheabove decision ,
theCommission isalso forwarding totheCouncil herewith asummary
account oftheeconomic policies pursued in1977 and areport on .
the impl'ementation ofthedecision andthedegree towhich the
policies pursued were consistent with theobjectives laid down .
Asforthe "forecasts over five-years oftheprincipal
macro-economic aggregates ",which arementioned inthethird
paragraph ofArticle 2oftheabove-mentioned Decision ,therevised
forecasts underlying thefourth medium-term economic policy programme
were presented inSeptember 1977 afurther revision carrying the
forecasts upto1983 iscurrently being prepared .
*)Cf.theReport ofthestudy group onthemedium-term economic
assessments "Outlook 1980 -Oneyear after drawing uptheFourth
Programme ofmedium-term economic policy "(DOC. /II/236/3/77).

I.ECONOMIC OBJECTIVES ANDPOLICYGUIDELINES FOR1978CONTAINED IN
THEANNUAL REPORT
1.1. ThepurposeofthisCommunication istorevieweconomic
progressintheCommunity inrelationtotheobjectives setfor1978in
theAnnualReportontheeconomic situation intheCommunity,adopted
bytheCouncilon21November 1977and,consequently toadapt,ifr"-ossary
theeconomicpolicyguidelines setoutinthatreport.
1.2. TheCommunity objectives fixedfor1978were(1)i
(i)arealGDPgrowthratefortheCommunity takenasawholeof
4-4 1/2%;
V
(ii)ahalttothespreading ofunemployment andanimprovement in
thesituation onthelabourmarket;
(iii)narrower disparities betweenthepayments balancepositions of
thevarious MemberStates,andanoverall Community payments
position eitherinbalanceorevenindeficit;
<1v)arateofinflation downto7-8XfortheCommunity average
(compared withabout91/2Xin1977)andanarrower spreadbetween
theextremes,downtoarangeofunder4-10%(4-18%in1977).
ν
1.3. Theprincipal general economie policyguidelines for1978
weresetoutasfollows (2):
"Theseobjectives arebynomeansoutofreachin1978ifalltheMember
Statespooltheirefforts.Atthepresenttime,demandisslackall
overtheworld,andnocountry,howeverimportant itscontribution
toworldtrade,canhopetoreviveeconomicactivity byitself.On
theotherhand,iftheMemberStatesco-ordinate amongthemselves and
worktogether withtheotherindustrialised countries,theycanmutually
strengthen themultiplier effectsofthemeasures theytake,instil
newconfidence inmanagements andconsumers onalastingbasisandthus
achievethegrowthobjectives setwithoutjeopardising fundamental
equilibria . .../...
(1)para.2.5oftheAnnualReport.
(2)para.3.1oftheAnnualReport.

Responsibility forsupporting internal demandatanappropriate
levelliesfirstandforemost withtheMemberStates who&ebalanceof
payments arerelatively strong.However,astheadjustment processes
gradually evolve,otherCommunity countries willbeabletousethe
roomformanoeuvre becoming available inordertocontribute !to
reinforcing businessactivity."

II.THERECENT STANCE OFBUDGETARY ANDMONETARY POLICIES
2.1.Generally speaking,theeconomicpolicies pursued by
MemberStateswereinlinewiththeguidelines laiddowninthe
AnnualReport.
2.2.Thebudgetary supportpolicies adoptedinthesecondhalf
oftheyearwereguidedbythedesiretojeopardize neithertheprogress
already madeinrestoring equilibria northemedium-term targetofa
gradualreduction inpublicdeficits.Asaresult,theyweremodestin
nature.MostMemberStateseventually adoptedthiscourse,withthose
stillhavingtocontendwithsevereexternal constraints generally taking
anevenmorecautious stance.
2.3.AmongtheMemberStatesenjoying afavourable balanceof
paymentssituation,theFederalRepublicofGermanyannounced inSeptember#
andadoptedinOctober 1977,anewsupport programme .Thismeasure^which
included taxconcessions designed tostimulate investment andprivate con­
sumption,ofwhfch.thebudgetary costinafullyearwasputatover1%of
grossdomesticproductwillhavetheeffectofsuspending thereductionofthe
deficit^'whichbeganin1976.Similarly,inOctober1977,asetofbudgetary
measures wasintroduced intheNetherlands atacostequivalent tonearly 1%
ofgrossdomestic product,consisting mainlyoffiscalrelieffortheindustry
andemployment support.Thepackageofmeasures adoptedinBelgiuminAugust
wasmadeupoftaxconcessions forfirms,butheaviertaxesonhouseholds and
anactionprogramme tocombatunemployment andsupportinvestment .
2.A. AnumberoftheotherMemberStatesalso*easedtheirbudgetary
policies inthesecondhalfof1977.TheUnitedKingdom,forinstance,
adoptedinOctober asetofmeasures designedtostimulate activity in
theensuingeighteen months,combining personal incometaxreliefs,
additional expenditure onsocialsecurity payments,

andmeasures topromote employment andpublic-sector investment .The
overall costs will bearound 1%ofgross domestic product .InIreland ,
theoriginal budget arrangements were relaxed innumerous respects inthe
summer.with theprimary aimofcreating employment .InFrance ,afew limited
measures were introduced ,atthe same time ,toback upthose taken inthe
spring with aview toa..rather less rigorous budget .InDenmark ,astabilization
programme adopted inSeptember ,mainly based onincreases inindirect taxation ,
included anumber ofmeasures designed toboost investment andemployment .
InItaly ,however ,nodeliberate action was taken toalter the
restrictive stance ofbudgetary policy even though certain unavoidable ^
disbursements ,and,above all,arevenue shortfall ,caused thepublic
sector cash deficit toexceed theagreed .objective .
2.5 Asaresult ofthese adjustments ,budgetary policies for1978 are,
generally speaking ,setonanexpansionary tack or,atleast ,aremuch less
ι
stringent than was the case in1977 *This isinline with the recommendations
setout inthe last Annual Report .
GENERAL GOVERNMENT BORROWING REQUIREMENT (1)
•(%ofGDP )
1975 1976 1977 1978
Λ
Denmark -2.2 -0.6 -0.4 0
FRGermany -5.8 -3.7 -2.9 -4.3
France -2.2 -0.8 -1.0 -1.1
Ireland -13.9 -10.3 -9.5 -11.8
Italy -11.3 -9.4 -9.1 -·8.8
Netherlands -2.9 -2.3 -2.4 -4.2
Belgium -3.8 -4.9 -5.6 -5.7
Luxembourg °.2 -0.7 -0.7 -1.7
United Kingdom -4.8 -4.8 -3.3 -3.8»
(1)National accounts (SEC)definition .
Source :Services ofthe Commission .––– l

2.6.Sincetheautumn,themaindevelopments inmonetary policy
havebeenagenerally morerapidexpansion ofmonetary aggregates in
mostMemberStatesandtheemergence ofdiffering situations withregard
tointerest rates.Onthewhole,public-sector financing hasscarcely
contributed totheacceleration inthegrowthofthemoneysupply.
Developments inthisfieldhaveratherbeeninfluenced byinflowsof
foreign funds.
IntheUnitedKingdom andintheFederalRepublic ofGermany,
currency salesmadetocurbtheappreciation ofsterling andofthemark
were,intheclosingmonthsof1977,afactorinthefailuretokeepthe
growthindomesticliquidity withinthetargetsset.Wi£haviewtoreasser­
tingcontroloyerthemoneysupply,theUnitedKingdomauthorities ,on30
October,,discontinued theirattempts topreventsterling'sweighted exchange
ratefromrising.
Withthemark'sappreciation againstthedollarforcingthe
othercurrencies participating intheCommunity exchange ratescheme
downtowardsthelowerlimitofthemarginoffluctuation ,strainbuilt
upwithinthe"snake",butthiswasthendispelled bytheadoptionof
flexible measures .IntheNetherlands ,thediscount ratewasraisedfrom
3.5Xto4.5XtowardsthemiddleofNovember.IntheBelgo-Luxembourg
Economic Union,itwasalsoraised,intwosteps,from6%to9Xinthe
firsthalfofDecember.Lastly,intheFederalRepublic ofGermany,it
wascutfrom3.5Xto3Xinmid-December ,whentheinflowofcapital
wascheckedbyanincrease inthecompulsory reserveratioforcapital
fromabroad.Asthestrains eased,thediscount ratein
Belgiufn wasreduced by21/2percentage pointsinearly
January.Inthelastfewmonthsof1977,the.Frenchauthorities raised
interest ratestocounterthetendencyfortheFrenchfranctodepreciate
againsttheotherEuropean currencies .

III.TRENDS ANDOUTLOOK INTHEEUROPEAN ECONOMY
3.1.Thestarting pointfromwhichtheeconomyisworkingtowards
thegrowthobjective hasturnedouttobelessfavourable thanexpected .
Thetrendasregards demandandproduction intheCommunity lastautumn
wasextremely disappointing .Although theindustrial climate hadimproved
somewhatafterthesummer,theoveralllevel„.ofactivity inthefourth
quarter6f1977,takingtheCommunity asawhole,probablyfailedtoexceed
thatrecorded inthefirstquarterofthesameyear(1).Thishadledto
theestimate oftherateofgrowthoftheCommunity 'sgrossdomestic product
involumeterms,forthewholeof1977>beingrevised downwards .According
tothelatestcalculations ,thisratewasprobably atiare2%,insteadof4
21/2%forecast intheautumn (2).
3.2.Thistrendisduepartlytothefactthatthestimulus given
bytheworldeconomic situation in1977hasfallenwellshortof
expectations .Thus,theassumptions madeinlastautumn'sAnnual
Reportconcerning production andworldtradein1977-excluding the
Community-havealsohadtoberevised downward.Thenewestimates
are4X(insteadof41/2%)forgrowthinproduction and5%(^instead
• «of71/2X)forgrowthinworldtrade(3).Theadjustments havebeen
particularly substantial inthecaseofJapanandthesmallindustrialized
countries outsidetheCommunity .
•••/••t
(1)Seethefollowing table
(2)Seetable2.v
(3)Seetable 1.

-7-
3.2.
SUCCESSIVE FORECASTS OFGROWTH OFGPP
INREALTERMS FOR1977
(changeasXofpreceding period)
(seasonally-adjusted )
1
Country:orecasts
June
1977Forecasts
Nov.
1977 ,•_ 1Probable
outturnm
Quarterly figures (probable outturn )
Feb.1978 Qu.1 Qu.2Qu.3IQu.4
Denmark
FRGermany
France
Ireland
Italy
Netherlands
Belgium
Luxembourg
UnitedKingdom (2)11/2
4
3
33/4
3
41/4
•31/2
2
3/41!.
«
3«
23/4
5
2
21/2
23/4
11/4
1/20.9
2.6
2.3
5.6
1.8
2.4
2.4
1.1
-0.1t
1.0
2.7.
••
1.9
••
••
••
-1.0••
0
-1.3
••
-2.5
••
••
••
0.2••
0
•0.2
••
-0.6
•
••
••
-0.2••
1,5
0.8
0.1
•
••
/0.8
Community 3 21/21.9 1.0 -0.8 0 υ.9
(1)Estimates .
(2)Quarterly figures basedontheaverageofthreemeasures ofGDPInrealterms.
»
jDatanotavailable .
SourceiCommission 'sdepartments .
/

3.3 . Autunomous factors affecting thedevelopment ofdemand
within theCommunity also lacked buoyancy until last summer .This
weakness canbeexplained bythefact that economic policies in
general ,mainly owing tothecontinuing impact ofearlier decisions ,
frequently continued toexert amoderating influence .Taking the
Community asawhole ,the effect ofbudgetary policy was restrictive
through most of1977 and canbeestimated atapproximately 1/2%of
gross domestic product (1).
Internal demand within theCommunity ,however ,stopped
deteriorating last autumn ,alhough asaresult ofdevelopments which
were bynomeans the same ineach country .The increase inreal private
disposable income ,mainly theresult ofslackening inflation (United
Kingdom ,France andIreland ),aless -hestitant attitude onthepart of
firms towards stockbui Iding (Federal Republic ofGermany )and of
strengthening ofinvestment insome Member States (Federal Republic of
Germany andBelgium )have allcontributed tothis relative improvement .
3.4 . The latest forecasts concerning theeconomic trend inthe
Member States in1978 show ,fortheCommunity asawhole ,anaverage
annual rate ofgrowth ofgross domestic product ofaround 3X
Under present circumstances ,this average rate ofgrowth
will require growth of4Xto41/2%during theyear .This maybe
considered ambitious iftheaim istoachieve such growth ,notonthe
basis ofashort-lived upturn caused byrecent stimulatory measures ;
t
butthrough aselfsustaining process ofakind that cansupport vigorous
growth throughout theCommunity economy forseveral years .
/•••
(1)This estimate ismainly based onthechange inthefinancing requirements
ofpublic administrations (seethetable onpage 4). '
(2)See table 2.
t ' t

3.5. Infact ,thenewforecasts for1978 presuppose :
-that theprogrammes forsustaining economic activity ,adopted since
last autumn ,will besuccessfully completed ;
-that some improvement will occur inthe confidence of
producers ,dealers andconsumers ,which does indeed seem tobetaking
place according tothe last harmonized industry andconsumer surveys
carried out intheCommunity ;
-•that theassumption ofamoderate expansion inworld trade (1)..turns out
tobecorrect ,although this expansion will definitely besmaller (ona
year -on-year basis )than that anticipated intheautumn (1).
The implementation ofthemeasures announced inJapan in
late 1977 and intheUnited States inearly 1978 ,andthe temporary
freeze ontheprice ofoil,should reduce the risk ofanexcessive
weakening inworld economic activity this year .
 
However ,asregards theCommunity ,thechanges which have
occurred 1ntheexchange rate structure asaresult oftheweakness of
thedollar could well have theeffect ofinhibiting economic growth in
1978 toanappreciable extent .
3.6. Theobjectives setfor1978 intheAnnual Report included
halting thespread ofunemployment andimproving the labour market
situation .Itisundeniable that theunemployment trend ,since last
summer ,hastended tostabilize ,andthat this tendency seems tohave
been maintained inJanuary .After reaching apeak of5.7 Xinthe third
quarter ,theseasonally adjusted unemployment rate (wholly unemployed )
intheCommunity ,fell back to5.5XinJanuary (2).
The ratio ofunfilled vacancies tothenumber ofunemployed
also improved inseveral Member States .This trend seems attributable ,
totheimplementation ofspecific measures and,insome cases ,toadrop
intheparticipation rate .All1nall,theannual average unemployment
•
•••/•••
. > .' /
(1)See table 1.
(2)Seetable 5. ,

ratefoptheCommunity asawholes,however/couldwell,increase ;,butto
amuchmorelimitedextentthanfrom1976'to1977(1).
3.7.Theobjective setintheAnnualReportwithregardtoinflation
wastobringitdowntoaCommunity averageof7%.to8%andtoreducethe
spreadbetweenthehighest andlowestratestoamaximumof4%to10%.
Theinflation ratetrendsinmostMemberStatesshowthatthisobjective ,
although ambitious,isstillbynomeansunattainable .Theincrease inthe
implicit consumer expenditure deflatorfellfromananpualrateof11%inthe
firsthalfof1977toabout71/2Xinthesecondhalfoftheyear.If
thistrendismaintained throughout theyear,theinflation ratecould
wellfalltounder7XfortheCommunity asawhole.However,thedifferences
between MemberStatesintheratesofincrease ofconsumer priceswill
probably beslightlygreaterthanoriginally expected (1).
3.8.Asfortheobjective regarding thebalanceofpayments on
currentaccount,theeconomic situation withintheCommunity has
Λ
in1977produced aslightsurplusfortheCommunity asawhole(1).
Themonetary authorities oftheMemberStatesasawholealso
increased theirforeign exchange holdings by22300million EMUA(2)
in1977,toreachover61500million EMUAbytheendoftheyear.
Giventheprospect ofslightly moresustained expansion in
internal demandin1978,theCommunity 'simportsshouldincrease as
compared tothepreceding year,butwillprobably remaintoolowto"make
(1)Seetable2.
(2)EuropeanMonetaryUnitsofAccount.•••/•••

aneffective contribution totheadjustment ofpayments balances
atworld level .Itismore likely that the Community 'sbalance of
payments oncurrent account ,boosted byanappreciable improvement
intheterms oftrade ,will close with alarger than expected surplus *

12-
IV.GENERAL POLICY GUIDELINES
4.1 . Thegeneral policy guidelines oftheAnnual Report are
still applicable today :
-the implementation ofacoordinated policy tobuttress the
economy ,based ongreater recourse tobudgetary policy asa
growth instrument (1).This might well include adjusting the
taxburden onpersons andtheeffective expansion ofpublic
investment programmes .Ontheother hand anappropriate and
steady growth inthemain monetary aggregates isneeded ;(2)
-themoderation ofthecosts ofproduction with theaidof
active cooperation from both sides ofindustry ;(3)
-thepursuit ofaspecific policy onemployment ;<4)
-measures forspeeding upstructural change ;(5)
4.2 . Asregards growth andemployment ,following the line
adopted intheAnnual Report ,acommon effort must bemade to
consolidate therecovery ,notably bygradually extending itto
agreater number ofMember States .
... /
(1)Seepara .3.2to3.5 intheAnnual Report
(2)Seepara .3.6 .
(3)Seepara .3.7 . "" " "
(4)Seepara .3.8 . • "I» Il II II
Il II
II II II II
(5)Seepara .3.9 . ""II
/ j

4.3 . Inthis respect theCommunity canmake auseful
contribution .Realising these guidelines intheMember States in1978 will -
befacilitated byimplementing actions already decided oninprinciple ,
such asthewidening ofthe Social Fund 'semployment policy functions
(measures foryouth employment ,andwomen ),andtheentering into effect
ofanenlarged Regional Development Fund ,and oftheCommunity 'snew
financing instrument forpromoting investment intheCommunity .
4.4. AllMember States have aninterest inexploiting determinedly
thegains which accrue from membership oftheCommunity ;theCommission has
made proposals inthis respect inits "Action Programme for1978 "(1).
Closer coordination ofeconomic andfinancial policies would soften the
constraints imposed ondifferent Member States ,would thus increase the
chances ofsuccess ofjoint action tobolster economic activity ,andpermit
greater exchange rate stability within theCommunity and vis-a-vis the
outside world .
4.5. TheCommunity roust energetically resist thetrend towards
protection ,inside itself andatthewider international level .Inthe
present economic situation ,itattaches thegreatest importance ,tothe
liberalisation ofworld trade and will make certain that Itscontribution
tothecurrent multilateral negotiations under 6ATT iseffective .
(1)COMDoc .(78)52 final of10February 1978

After nearly ayear oftorpidity theCommunity economy showed
some signs oflife inlate 1977 andearly 1978 .However ,even ifgrowth
rates were toincrease throughout theyear ,thegoal ofanaverage
rate of4%to41/2%setfortheCommunity for1978 on1977 would still
appear unrealistic .Moreover recent exchange rate phenomena ,particularly
thedepreciation ofthedollar ,will onthewhole have restrictive effects
ontheEuropean economy .
Ingeneral goals forinflation established bytheCommunity
a-re within "reach .Moreover the external constraint have been relaxed
now that anappreciable current account surplus isprobable in1978 .
Generally ,theoutlook forimprovement intheexternal situation
and asregards inflation andofanarrowing ofdisparities ineconomic
performance among Member States should help towards afaster growth
rate and improvement intheemployment situation .Formaximum
effectiveness ,and*without compromising progress
made inreducing inflation ,theenlarged scope forafaster return to
lasting growth must beexploited through Community-coordinated efforts .
Onthewhole itisnecessary toensure the full application of
theeconomic policy guidelines which theCouncil fixed inapproving the
Annual Report on21st November 1977 .However ,there must becontinuing
vigilance 'inassessing theeffectiveness oftheexpansionary measures
adopted intheautumn oflast year andthedurability andstrength of
the recent signs ofeconomic recovery .

STATISTICAL ANNEX
Table 1-DEVELOPMENT OF -PRODUCTION AND WORLD TRADE
Table 2-DEVELOPMENT OFTHE MAIN MACRO-ECONOMIC AGGREGATES
Table 3-DEVELOPMENT OFINDUSTRIAL PRODUCTION
V
Table 4-CUMULATIVE DEVELOPMENT OFINDUSTRIAL PRODUCTION
Table 5-DEVELOPMENT OFUNEMPLOYMENT
Table 6-DEVELOPMENT OFCONSUMER PRICE INDICES
Table 7-DEVELOPMENT OFBALANCE OFTRADE
Table 8-EXCHANGE RATES :PERCENTAGE APPRECIATION (+) AND
DEPRECIATION <->
?
/ /

TABLE 1
DEVELOPMENT OFPRODUCTION ANDWORLDTRADE
(Xchangeonpreceding year)
mm»
1969-73
average1974
•1975 1976 1977 1978
(1)
Grossdomestic productinrealterms
Totalofdeveloped countries 4.7 0.1-0.8 5.2 31/24
Totalexcluding theCommunity 4.6-0.5-0.3 5.4 4 4
Volumeoftrade
Totalworldimports 10.3 6.1-3 11 5 5
··excluding theCommunity 8.7 9.6-1 9J/251/25
Totalimportsofdeveloped countries 11.0 1.1-7.414.0 5 5
-excluding theCommunity 9.4 2.9-9.413.6 7 41/2
Totalimportsofdeveloping
countries7.4 201/291/29 7 61/2
-ofwhich:OPEC t38 43 18 15 12
Worldexportprices(inÍ)
Priceofbasicmaterials 321/2-5 4 10 3
-ofwhich:fuels 1205 2 5 91/23
•Priceofnanufactured products••13 11 1 81/26
(non-mrmber countries ) ••
(1)Forcertaincountries;grossnational product.
Sources:N.U.,IMF,nationalstatistics andtheCommission 'sDepartments .
iPatanotavailable !

TABLE2
DEVELOPMENT OFTHEMAINMACRO-ECONOMIC AGGREGATES
6rossdomestic product (volume)
%changeNumberofunemployed as
force(1)Xoflabour
1970-
1974
DENMARK I2.7
FRGERMANY I3.6
FRANCE *.7
fELANO A.5ALY *.0
NETHERLANDS |5.0
BELGIUM I5.2
LUXEMBOURG I4.1
UNITEDKINGDOM I2.7
COMMUNITY1975
1.1
2.6
0.1
0.4
3.7
1.2
•2.0
■8.3
-1.6
-1.71976
4.8
5.6]
5.2
3.2
5.6
4.4
(2
3.0
2.8
2.8
4.81977
«0.9
2.6
2.3
5.6
1.8
2.4
2.4
1.1
-0.1
1.919781970-
1974
1.5
3.1
2.7
6.0
1.7
2.1
2.3
1.4
31/?1.3
1.1
2.7
5.9
(5.2)
2.1
2.3
0
2.8
2.82.71975 1976
5.0
4.1
4.0
7.9
(5.6)
4.0
5.3'
0.2
3.9
4.45.1
4.1
4.4
9.4
(5.9)
4.3
6.7
0.4
5.21977 1978
5.9
4.0
5.1
9.4
(6.9)
4.2
7.4
0.8
5.7
4.95.4i>.'•
5.1
8.9
<71/4)
4.5
7.3
1.4
6.0
5.6
Implieddeflator ofprivate
consumption -Xchanges8alance oncurrent account
<8'000million )
1970-
*."7A1975 1976 1977 1978 I1970-
197-41975
f1976 1977
DENMARK 7.9 8.4 8.5 10.5 10.5-0.5-0.6-2.0-1.7
FRGERMANY 5.7 6.3 4.4 3.9 3.5 3.5 4.3 3.7·2.6(4)
FRANCE 8.4 12.1 9.9 .9.3 7.0-1-2-0·•6.1-3.0
^IRELAND10.8 20.9 17.0 13.6 6.5-0.3. 0-C'.3-0.2
ITALY 9.0 17.0 17.5 18.5 12.0J-1.2-0.6-2.9'2.0
NETHERLANDS 9.6 10.3 9.2 7.0 5.5 1.0 1.7 Ζ.5 0.5
BELGIUM 6.3 12.0 8.9 6.5 5.51.0 0.3-Π.3-0.1
LUXEMBOURG 6.0 10.7 9.8 6.7 4.0
,
UNITED KINGDOM 9.1 23.4 15.4 14.9 8.4-1.2-3.7-2.2 o.:·
•
COMMUNITY 7.8 12.8 9.8 9.6 6.9Ì.2 *.1.4-7.6 0.5
(1)Italy:FiguresfromMinistry ofLabour.
(2)Provisional figure.
(3)LikeotherratesofgrowthofGDPinthiscolumn,thisfiguresisbasedon1977prices.
Officialfigurestake1970asthepricebase,therebygivinglittleweighttothe
contribution ofNorthSeaoiltotherateofgrowth.At1970prices,growthin1978is
estimated tobealmost 1%lower.
(4)3.5according toBundesbank .. . y•
Source:Commission 'sDepartments . :•

TABLE3
DEVELOPMENT OFINDUSTRIAL PRODUCTION
(Xchangeonprecedingperiod)
(Seasonally-adjusted figures)
,·.
1975197619771976 1977 Dec.1976
Dec.1977
(1).*··IVIIIIIIIVDec.
Denmark -5.711.A0.4-0.41.8-5.44.4-1.41.00.9
FRGermany -6.27.43.11.32.4-0.2-1.11.10.54.6
France -7.28.61.01.62.3-2.4-2.0-0.8-2.1-2.6
Ireland -6.17.9••0.81.23.90.4X•••••
Italy -8.811.6-0.35.82.2-5.9-3.6-2.2-2.6-13.3
Netherlands -4.96.81.42.3-0.20.1-2.50.12.9-1.4
Belgium -9.87.8••1.1-0.10.3-2.0-0.4•J.I0.7
Luxembourg -21.96.30.5-1.03.72.3-4.80.5-3.63.6
UnitedKingdom-1.01.41.62.9-2.20.3-1.71.0-Î.1
Community -6.67.31.61.92.4-1.8-1.5-0.60.0-1.1
Consumergoods-*.27.63.02.61.8-1.6-0.90.50.50.0
intermediate goods-10.09.70.Φ1.52.7-2.4-1.8-1.6-0.1-3.5
Investmentgoods-3.81.5
«1.92.02.3-1.1-0.2-0.5-0.60.5
Buildingandcivilengineering
»
Community *
.1-7.0-1.01.51.51.31.301.5••••
(1)ÇPO$Sfigures,
iDatanot«vailable.
•SourcettUROSTATandCommission's Departments.

TABLE4
CUMULATIVE DEVELOPMENT OFINDUSTRIAL PRODUCTION
Minimum 1975 Maximum 1976/1977 December 1977
i
Country Month 1970=100 Month';·*YearXchangeonminimum
atanannualrateXchangeonmaximum
atanannualrate
Denmark March 94.7 March .77 13.5 -10.0
'FRGermany July 100.1 April 77 10.6 -2.3
.France August 111.0 March 77 10.1 -!7·9
«fDlland».IIIQu..112.4 IIIQu.77 9.3•«
«
Italy . August 99.4 December 77 23.7 -14.2
Netherlands July 109.7 April 77 11.4 -4.9
,Belgium .. September 104.7 October 76 15.9 -6.1
Luxembourg
j-May 87.5 June 76 £3.8 -6.3
å-14
UnitedKingdom *·
.August 99.5 January 77 6.7 -4.0
ν
Community July
•'ï104.1January 7711.0 -4.9
EUROSTAT :
:Datanotavailable .%
Source
..e.

τ
DEVELOPMENT OFUNEMPLOYMENT <•>
a)Unemployment 1975 1976 19771976 1977 1978
rate <2) IIIIII IV·IIIIII IVNov.Dec.Jan.
Denmark 4.6 4.75.94.9 4.6 4.74.85.65.86ja6.16.25.96.7
FRGermany 4.2 4.14.0 4.6 4.1 4.03.9 3183.94.03.94.03.93.8
France 3.9 4.34.94.4 4.4 4.34.3 4.54.85.25.1 5.15.04.9
Ireland 8.8 9.8 9.79.6 9.910.0 9.89.79.79.79.5 9.49.49.2
Italy 5.7 6.07.05.8 6.0 6.1 6.16.36.57.37.5 7.57.67.3
Netherlands 4.44.3 4.5 4.4 '4.74.4 4.1 4.14.44.34.3 <4.24.2
Belgium 5.3 6.8 7.88.4 6.6 7.0 7.17.27.47.98.28.38.2-8.3
Luxembourg 0.2 0.3 Ό.60.3 0.4 0.30.40.50.5 0.60.70.7o¿-0.9
IiiitedKingdom 3.8 5.3 5.8 5.0 5.3 5.8 5.55.5 5.5 6.15.9 5.95.95.9
Community 4.4 5.0 5.4 5.0 5.0 5.1 5.0 5.1 5.25.75.6 5.65.65.5
b)Total
^nerngloyedin4,614 5,2425,731 5,256 5,230 5,3605,2955,3715,5215,9565,9125,9115,8795,788
Women,in1.000 1,675 2,0312,363 1,958 1,999 2,0992,1312,1872,2582,4762,4822,4862,4732,447
Womenas%oftotal36.3 38.741,237.3 38.2 39.2 .40.3 40.7 40.9 41.642.0 42.042.142.3
c)Vacancies (2)* '·
Denmark 0.9 1.6 1.1 1.6 1.91.6.·i:4 1.21.1 0.91.11.0 •1.01.1
FRGermany 21.9 22.2 22.4 19.6 23.1 21.4 24.4 24.922.4 21.823.7 23.524.724.6
France 13.0 13.3 9.7 11.9 13.1 14.2 13.3 11.89.7 9.39.810.210.39.8
Netherlands 24.2 22.5 27.2 20.0 23.1 18.924.7 27.226.6 27.229.3 29.030.230.8
Belgium 2.0 1.51.1 1.6 1.41.4 1.5 1.51.4 .1.31.01.01.01.1
Luxembourg 88.9 57.8 23.3 29.9 32.7 71.261.1 32.916.2 18.722.1 16.121.316-.2
UnitedKingdom 15.8 9.010.4 8.7 8.38.38.8 11.011.3 9.910.7 10.911.112.5
registered unemployed asXofcivilianlabourforce.Asdefinitions arenotuniform,unemployment ratesarenotcomparable from
countrytocountry.(3)Numberofvacancies asa%ofthenumberofunemployed persons.
Source:EUR0STAT _

TABLE 6
DEVELOPMENT OFCONSUMER PRICE INDICES
Xchange onpreceding year Dec77
Dec76
-
1974 1975 1976%1976 19 77
1977IV I II III IV Nov .Dec .
Denmark 15.3 9.6 9.0 11.1 3.9 1.1 3.2 2.5 5.1 1.0 0.1 12.5
FRGermany 7.0 5.9 4.5 3.8 0.5 1.9 1.4 0.2 0.2 0.1 0.3 3.5
&rance 13.6 11.7 9.6 9.6 2.6 1.6 3.1 2.4 2.1 0.4 0.3 9.3
?Ì
Ireland <1) 17.0 20.9 17.9 13.6 4.2 3.8 3.8 1.1 1.7 1.7 : 10.8
Italy 19.2 17.0 16.7 18.4 6.4 4.7 3.8 2.5 3.3 1.0 0.5 14.9
Netherlands .¿ 9.8 9.9 8.9 6.7 2.5 0.7 2.9 0.6 "1.3 0.2 -0.1 5.5
Belgium ·,.· 12.7 12.8 9.2 7.1 1.7 2.0 1.6 1.5 1.2 0.4 0.4 6.4
Luxembourg 'r 9.5 10.8 9,8 6.7 1.8 2.3 1.6 0.7 0.4 0.5 -0.2 4.3
United Kingdom 16.0 24.2 16.5 15.8 4.6 5.0 4.5 1.6 1.5 0.5 0.5 12.1
Community 13.0 13.8 11.3 11.2 3.3 3.1 3.1 1.6 1.5 0.1 0.4 8.9
(1)Quarterly indices .
<2)November 1976 -November 1977 .
tData not available . *
Source :EUROSTAT

TABLE7
DEVELOPMENT OFBALANCE OF.TRADE ..... •„(Seasonally-adjusted /UStmilUon).
r
19?3 197419751976t976. 1977
IZIIII IV ΧIIIII IVOct.jNov.jDec.
Benmark -1584-23Q¿-134Î-3188-663-726-819-981-835-859-867W670-261-225-184"
FRGermany 12976 2026C1S44Í12994 3075 3131 33143473 3451 4106 37445016 1866 1412 1758
f:ires -1428-714'-1894-8291-1460-1480-2400-2951-2518-2121-1487-1102-173-784-155
Ireland -634-1211-60S-857-274-163-207-214-333-276-207-225
%-10T-64-60
Italy -5661-11042-3161-6216-1370-1747-1179-1920-1511-945 99•-490 •199•
Nietherlands -431-Hi-745-1170 122-598-241-453-672-689-471-237-148-135 46
3LEU 369-158C-861-779-256-262-209-52-345-305 95-390-·79-225-.86
UnitedKingdom -8555-1598Í-9642-9370-1617-2395-2635-2723-2331-2124-998-1092
t-361-154--577
Community (1)-4585-2055'-437C-19446-3295-4780-5071-6299-5905-3649-786•
»148297. •
(1)Community :Extra-Community trade.
Source:EUROSTAT andCommission's Departments .
:Datanotavailable .

TABLE8
EXCHANGE RATES:PERCENTAGE APPRECIATION (+)ANDDEPRECIATION (-)
Last12months(1)'•Last6months(1);Last3months(1)
'Dollar Effect.rate!Dollar Effect.rate,Dollar Effect.rateI *.t_
1
I
1
Denmark 1+ ή-2,2 +11,2 ·♦0,4♦1o,3 3,3
«
FRGermany+16,4 ♦9,6+14/» ♦6,3♦9,5 +
4)ance ♦If,7-5,4♦2,9 *5,9♦2,0 +46
Ireland +13,2 ♦4,7 +11,0 ♦4,0 ♦6,6 ·1,9
Italy ♦3,6 -5,1 ♦3,4 -3,7♦2,8 -2,0
Netherlands ♦14,8 ♦4,1 ♦12,6 ♦3,0♦10,6 ♦3,9
Belgium ♦16,0 +6,1 ♦12,9 ♦3,8♦10,9 ♦4,7
UlitedKingdom ♦13,2 +6,7 ♦11,0 ♦6,1 ♦6,6 ♦3,1
<1>End-February 1978forratjagainstthedollar;February 1978averagefortheeffective
exchange rates.
Source:Commission 'sDepartments .