No C 23/26 Official Journal of the European Communities 30. 1. 89 
Member States and COST-countries to implement the 
COST-proposals. 
8.3. However, the Committee would like a clear 
statement on the future of the COST-programmes 90, 
90 bis, 91 and 91 bis in relation to the FLAIR-pro-
gramme. 
9. Utilization and dissemination of results 
9.1. Article 130K of the Single European Act requires 
the Council to define the detailed arrangements for 
the dissemination of knowledge resulting from specific 
programmes. 
Done at Brussels, 23 November 1988. 
1. Growth, adjustment and international cooperation 
1.1. The economic cycle is in a particularly buoyant 
phase which is conducive in different ways to sustained 
expansion of the economy of the industrialized nations 
(3,9%) and the developing countries (3,5%-4%), and 
to the growth of world trade (7,6%). In 1988 the 
(!) OJ No L 63, 5. 3. 1974, p. 16. 
(2) OJ No L 330, 24. 12. 1975, p. 52. e The Committee asks that the Commission should make 
provision for this requirement for this proposal. 
10. Communication to the ESC of the progress report 
and evaluation report mentioned in Article 4 of 
the programme proposal 
10.1. The failure of the Commission to include the 
Economic and Social Committee in the communication 
of the results of review and evaluation required is drawn 
to the attention of the Council. 
10.2. The Committee feels that, being consulted on 
the proposal, it is reasonable that it should be kept in 
touch with the progress of the work. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE 
European economy has thus achieved better overall 
results than had been forecast in the revised analyses 
at the beginning of the year. 
The Committee endorses the Commission's identifi­
cation of the main factors which have helped achieve 
strong growth. However, it expresses reservations 
about (a) the forecasts which for years have proved 
inaccurate, and (b) the importance which the Com­
mission attaches to the inflationary hazards in the world 
economy. Opinion on the Commission annual economic report 1988/1989 
(89/C 23/11) 
On 28 October 1988 the Council decided to consult the Economic and Social Committee on 
the Commission's annual economic report 1988/1989 in accordance with Council Decision 
120/74/EEC of February 1974 on the achievement of a high degree of convergence of the 
economic policies of the Member States of the European Economic Community (!) as amended 
by Decision 787/75/EEC(2), and especially Article 4 thereof. 
The Section for Economic, Financial and Monetary Questions, which was responsible for 
preparing the Committee's work on the subject, adopted its Opinion on 15 November 1988. 
The Rapporteur was Mr Drago. 
At its 260th plenary session (meeting of 23 November 1988), the Economic and Social 
Committee adopted the following Opinion by 112 votes to 5, with 2 abstentions. 
30. 1. 89 Official Journal of the European Communities No C 23/27 
1.2. Despite the key contribution from all com­
ponents of demand and of investment in particular, the 
basic economic problems highlighted in the Commit­
tee's own-initiative Opinion (*) were only partially 
alleviated in 1988 by the unusually favourable con­
ditions; there was only a slight improvement in the 
employment situation in the Community, despite the 
priority which the Commission now attaches to it. 
1.3. Overall, the Committee therefore considers that 
the measures to iron out imbalances in trade and the 
gradual process of adjustment between geo-economic 
areas are still at an early stage. It also notes that 
imbalances within the Community are growing, making 
the problem of adjustment more complex. At inter­
national level it is mainly the central banks who have 
restored stability to the financial markets and regulated 
exchange rate parities by solid coordination of interest 
rate policies. 
Furthermore, the latent dangers inherent in excessive 
exchange rate and interest rate fluctuations remain; and 
the financial markets would again become unstable if 
the economic situation were to get out of control as a 
result of inadequate international cooperation or coor­
dination. 
1.4. In the present circumstances, the Committee 
considers that the commitments to keep a tight rein on 
exchange rates should not and cannot be expected to 
reduce the balance-of-payment imbalances of the 
United States, Japan, and West Germany single-handed. 
With particular regard to the United States, the Com­
munity awaits more effective action by the incoming 
Administration and the Congress to correct the deficits, 
together with policies which take more account of 
investment. For the purposes of a wide-ranging coordi­
nation policy, too much faith is also being placed on the 
statistics issued regularly by the various international 
bodies and forecasting institutes. 
1.5. The Committee calls on the Community insti­
tutions to ensure that the domestic and external objec­
tives of the major economic powers are compatible 
with the commitment made in the Plaza and Louvre 
agreements to cooperate on and coordinate economic 
policies. 
At the same time, it calls on the Commission firmly to 
oppose (and if necessary, to respond to) the use of trade 
legislation, such as the United States Trade Act, in 
pursuit of aggressive, neo-protectionist policies at 
industrial and commercial levels. 
(l) ESC Opinion on the economic situation of the Community 
in mid-1988 (OJ No C 208, 8. 8. 1988, p. 33). 1.6. The multilateral consultation and negotiation 
arrangements enshrined in the General Agreement on 
Tariffs and Trade (GATT) must be reinforced during 
the present negotiations, in order to avoid the risk of a 
return to bilateralism which would hit the developing 
countries and make it even more difficult for the Uru­
guay Round to succeed. 
1.7. In the international cooperation sphere, the 
Committee would accord continued priority to the fol­
lowing: 
— conclusion of multilateral agreements to help cor­
rect the imbalances. Reliable reference frameworks 
are needed for monetary policies and financial inno­
vation as well as trade policies, 
— pursuit of a policy which differentiates between the 
debtor nations, with debt-rescheduling and the re­
negotiation of debt-servicing terms, 
— encourage the resumption of funding for the least-
developed countries and the main debtor nations, 
by fostering a reduction in the nominal value of 
part of the multilateral, bilateral and commercial 
debt. 
1.8. The statistics and data presented at the recent 
meetings of the International Monetary Fund (IMF) 
and the World Bank showed that the increase in the 
price of non-oil raw materials (up 27 % in the last year) 
has not even partly met the growing need for funding. 
The Committee therefore views with concern the delays 
in decisions to relieve the developing countries' debt, 
the possible repercussions on the international banking 
system, the increasing evidence of threats to the political 
and social stability of some countries, and the increase 
in world poverty. 
The Committee also considers that the newly-industri­
alizing countries must be prevailed on to shoulder 
greater responsibilities, in line with their potential and 
with their respective shares of world trade. 
1.9. In the light of the results achieved, the Commit­
tee calls on the Community institutions to play a more 
dynamic political role, harnessing the positive macro-
economic results to work in a way which (a) takes a 
more balanced approach to development within the 
Community and (b) is more in tune with the expec­
tations of the developing nations. 
2. The European economy: out-turn in 1988 and Com­
mission forecasts for 1989 
a) Macroeconomic performance 
2.1. In 1988, the Community gross domestic product 
(GDP) will grow on average by over 3,5%. The figures 
No C 23/28 Official Journal of the European Communities 30. 1. 89 
for the United States and Japan will be 3,9 % and 5,6 % 
respectively. 
In 1989, growth in the Community is likely to slow 
down to 2,8% (compared with 2,3% in the United 
States and 3,8% in Japan). 
2.2. This figure—the best for the last ten years—co­
incides with an unemployment rate equal to 11,3% of 
the workforce. Unemployment should improve slightly 
in 1989 (10,9%). 
The Commission thus sees unemployment as the most 
important problem. 
2.3. Despite a few cases of overheating of demand 
and recent acceleration of inflation, the average 
inflation rate (as measured by the deflator of private 
consumption) will remain at around 3,5% (3,7% in 
1989). 
2.4. The balance on current transactions with the 
rest of the world (as a percentage of GDP) will fall 
again, and is likely to be around 0,5 %. 
b) Indicators of demand 
2.5. Domestic demand has been the locomotive of 
economic growth. Against a background of 4,25% 
growth (3,25% for 1989), private consumption is 
expected to increase by 3,5 % (3 % in 1989) owing to 
the strong rise in some countries. At the same time, a 
general and unexpected surge in investment is occur­
ring: 7% in 1988, 5,3% in 1989 for gross fixed capital 
formation. 
2.6. The volume of Community exports to third 
countries (year-on-year variation) will rise by 6% in 
1988, and 5% in 1989. Despite this, foreign trade will 
continue to deflate the growth of Community GDP 
(- 1 % for net exports in 1988, - 0,5 % in 1989). 
c) Indicators of supply conditions 
171. The Commission stresses that employment is 
rising at a high, stable rate of around 1 % per year. The 
creation of new jobs is only of partial assistance in 
reducing unemployment. Long-term unemployment 
persists (over 50% of the total) and youth unemploy­
ment is still running very high (above 20%). 
2.8. Real unit labour costs have fallen by around six 
points since 1981 (the trend has been particularly mar­
ked in the poorer countries, with the exception of 
Greece), and are likely to fall further. Further rises in 
productivity can improve the employment content of 
investment via a further improvement in the ratio of 
capital: employment (an annual average increase of 
2,3 % in capital stock translates into a job creation rate 
of 0,7%). A more flexible approach to the organization of working time, coupled with a reduction in costs, 
could help to compensate workers by granting them 
further cuts in individual working hours. 
2.9. The fall in unit labour costs has increased the 
return on capital, fostering a greater share of profits in 
added value. Although the return on capital has not 
grown on the same scale as net profitability, the propen­
sity to invest remains high. Against a background of 
greater competitiveness, rationalization investment has 
been more moderate. 
d) Economic policy indicators 
2.10. Income differences between Member States and 
regions, as well as differences between the GDP of the 
regions of individual countries, remain considerable. 
Average per capita GDP in the four poorest countries 
is only 65 % of that in the four richest countries (com­
pared to 60% in 1987). 
2.11. Monetary policies in the Community have been 
influenced by international monetary developments. 
The appreciation in the dollar has allowed greater 
attention to focus on internal objectives, at a time when 
there is apprehension at the rising cost of raw materials, 
sustained demand, and stronger expansion of monetary 
aggregates (+ 9,9%). Short-term interest rate hikes 
have proved the most popular instrument, and have 
been pursued with particular determination in West-
Germany, the United Kingdom and Italy, albeit for 
different reasons. Severe dollar instability would 
exacerbate the conflict between domestic monetary pol­
icy objectives and the control of exchange rates within 
the European Monetary System (EMS). 
2.12. The development of public finances has not 
on the whole been positive. Public debt remains at a 
disturbing level (60% of GDP; around 61 % for 1989), 
and the general government deficit will deflate GDP by 
4,5%. Budget policy has not bolstered the internal 
factors which determine the Community's growth. 
3. The Committee's assessment of the economic poli­
cies and guidelines of the Commission 
a) Economic policies and their coordination 
3.1. The Committee considers that Community 
economic policy should seek to consolidate and support 
present developments. The Committee endorses some 
of the guidelines drawn up by the Commission, as being 
30. 1. 89 Official Journal of the European Communities No C 23/29 
consistent with the analyses and proposals set out in 
the Committee's own-initiative Opinion. 
The Committee stresses, however, that the persistent 
high unemployment in some regions is unacceptable. 
3.2. The Committee agrees with the Commission 
that greater coordination of economic policies is 
needed, both to safeguard the convergence already 
achieved on the key goals and more particularly to 
achieve more sustained growth and make it easier to 
coordinate other policies. 
With favourable economic circumstances, the transition 
towards the single internal market must continue to rest 
on macroeconomic stability and economic efficiency. 
These can be achieved by means of improved coordi­
nation and institutional support for the creation and 
management of a larger, more homogeneous market. 
3.3. Potential economic growth within the Com­
munity must not be jeopardized by national economic 
priorities which could trigger off an overall slowdown 
and consolidate the fixing of exchange rate parities 
which are not consistent with balance. Economic and 
budgetary policy developments in West Germany wil 
play a crucial role here. 
3.4. Steps must thus be taken to coordinate GDP 
growth targets. These steps should go beyond the con­
trol of demand and the management of monetary poli­
cies. They should also aim to influence the main supply-
side policies (industrial policy, competition policy, aid 
arrangements, tax harmonization). 
3.5. With a view to consolidating the Community's 
future growth, partiucular attention must be paid to the 
competitiveness and supply potential which structural 
adjustment measures will generate. Commission action 
to set medium-term economic objectives could be useful 
here. 
b) Structural policies 
3.6. The Committee considers that Community and 
national structural policies are crucial to achieving and 
maintaining a high degree of economic and social 
cohesion. They must thus be implemented with greater 
urgency, in order to support dynamic economic activity 
and reduce the imbalance within the Community which 
allows the country with the strongest economy to leech off the dynamism of its neighbours, thus reducing their 
scope for further domestic expansion. 
3.7. Although it endorses the Commission's idea of a 
'partnership' between the structural funds, the financial 
instruments and the new Regulation of the European 
Investment Bank (EIB), the Committee stresses the need 
to ensure the involvement and support of the socio­
economic interest groups in the various procedures and 
stages of the measures (1). 
Moreover, bearing in mind that the doubled structural 
funds will still only represent 0,3 % of total Community 
GDP, the Committee considers it of priority importance 
that the funds be channelled to the least-developed 
regions. At the same time, the Funds must also be 
directed at the least-favoured regions and those in 
industrial decline, in order to encourage the creation of 
new jobs in these areas. 
3.8. A balanced system of national development aid 
in the most backward areas could sharpen up the use 
of the structural funds at a macroeconomic level, while 
making them better able to attract capital microecon-
omically. If capital and savings from those Member 
States which are running large trade surpluses could 
be channelled into productive local investment, the 
resulting impact on wages would help close the develop­
ment gap and strengthen the Community's economic 
and social cohesion. This capital could qualify for 
interest rebates and/or guarantees tied to the use of the 
structural funds. 
3.9. Community aid for infrastructure policies also 
needs to be swifter and more selective, improving con­
ditions in the less-developed regions and boosting their 
dynamism. 
3.10. The Committee considers that technological 
research and development policy must also become 
more cohesive, and must assume a structural role. This 
means strengthening its links with the various levels of 
the education system and its use in the modernization 
of teaching methods. 
3.11. While eschewing detailed references to earlier 
recommendations, the Committee stresses the potential 
of environmental policy and the reform of the common 
agricultural policy (CAP). By opening up a more 
dynamic role for rural society, these can help increase 
economic and social cohesion. 
(]) See the Committee Opinion on the coordination of the struc­
tural funds of 27 October 1988 (OJ No C 337, 31. 12. 1988, 
p. 39). 
No C 23/30 Official Journal of the European Communities 30. 1. 89 
In economic terms, incentives must be provided for 
technologies which do not harm the environment, but 
which are also innovative and can produce the type of 
goods and services that the public wants. 
Unless suitable measures are taken, invisible costs which 
are difficult to assess, in various sectors, will continue 
to affect the nature and scale of economic development 
in the long term. 
c) Market policies 
3.12. Turning to structural measures with a macro-
economic impact, the Committee notes that the 
implementation of a competition policy which is trans­
parent, effectively administered, and balanced from 
both the financial and fiscal point of view, will help 
provide a more secure economic environment for com­
panies, for employment, and for the development of 
the service sector. 
3.13. The report on 'the cost of non-Europe' high­
lighted new areas of growth and competitiveness for 
European businesses. The various sectors of the busi­
ness world, and the development of small firms, service 
industries and cooperatives, thus need the support of 
policies to encourage expansion and secure favourable 
conditions for industrial supply. 
Productivity has increased substantially, company per­
formance has improved significantly, and unit labour 
costs have fallen largely thanks to employees' efforts in 
the area of wage moderation. The Committee therefore 
considers that the time has come to improve workers' 
purchasing power, thus allowing a rise in private con­
sumption. 
3.14. Companies must take advantage of continuing 
buoyant demand to speed up the development of high-
tech sectors, incorporating technologies into their pro­
duction processes and introducing greater elasticity and 
diversification into the production of final goods. 
The continuing Val Duchesse dialogue on microecon-
omic problems should help to resolve these issues. 
3.15. The Committee also considers that the prob­
lems of employment, labour market intervention and 
ongoing training merit more concrete action by the 
institutions and the Member States. Greater business competitiveness has not yet led to an improvement in 
the employment situation. 
3.16. The recommendations made in the ESC 
Opinion on social developments in the Community in 
1987 (!) remain valid. The Committee stresses that the 
slight pick-up of employment in industry and the bigger 
rise in the service sector have been accompanied by a 
sharp rise in part-time work which—as the Commission 
notes—points to a certain degree of under-employment, 
although this is difficult to quantify. 
Part-time work is obviously a positive phenomenon 
when it is freely chosen. However, the various forms 
of under-employment and undeclared work which fall 
outside labour legislation are a matter for concern. 
The Committee also draws the Commission's attention 
to the large numbers of temporary jobs, filled by people 
who have no chance of finding other, more skilled 
employment. 
Finally, a further boost to employment should come 
from measures designed to restructure and reduce 
working hours without sacrificing productivity. 
3.17. The creation of long-term jobs in the weaker 
areas needs to be speeded up, in order to smooth out 
the 'J' profile of aggregate employment in the run-up to 
the internal market. At the same time, greater mobility 
within the Community must be accompanied by the 
elimination of the various handicaps which influence 
decisions on the siting of production centres. 
3.18. Lastly, the Committee notes that marketable 
services have made an increased contribution to total 
added value and aggregate investment. These services 
make a considerable contribution to employment and to 
job creation, despite the absence of a specific assistance 
policy at Community level. 
d) Monetary policy; budget policy 
3.19. With a view to more coherent management of 
the Community economy, the Committee urges the 
Member States to achieve the necessary degree of corre­
spondence between their monetary and budgetary poli­
cies. 
With the prospect of complete liberalization of capital 
movements and integration of the financial markets, 
coordination is needed when determining monetary and 
credit targets, in order to permit joint action on the 
external elements of the monetary base, and better 
determine the components of internal credit. 
(') OJ No C 208, 8. 8. 1988. 
30. 1. 89 Official Journal of the European Communities No C 23/31 
3.20. Within the European exchange rate and EMS 
agreements, competitiveness should not be decided by 
a position of dominance based on exchange-rate con­
straints. Better management of exchange rates is thus 
needed, including decisions on interest rates. 
3.21. The Committee considers that the cohesion 
of the EMS is still too vulnerable to factors outside the 
EMS area. Active use of interest rate differentials could 
help achieve the corrections which would be needed to 
cope with any renewed instability of the dollar. 
Nevertheless, a new monetary order between the main 
trading currencies is the only way to restore greater 
reliability to macroeconomic policy objectives. 
Lastly, the Committee reiterates the need for common 
rules on the various links between financial markets 
and between currency and finance. 
3.22. The Committee agrees with the Commission's 
priorities for and analysis of budget policies. It too 
sees a need to harmonize indirect taxation, and for 
adjustments to improve supply and demand conditions 
in order to support growth. 
3.23. Careful adjustment of income and expenditure 
can produce synergy. Account must be taken of the 
differing foreign trade balances and, more important, 
of the present differences in current balances within the 
Community. 
In the present climate of overall growth, the Committee 
sees signs of a potential structural inversion of economic 
development and growth. 
4. The institutional aspect 
4.1. The steps taken by the institutions in 1988 
should spur the Member States to work for a high 
degree of consensus conducive to a real 'European 
initiative', much more concrete than the simple cooper­
ation strategy prepared during 1985. 
The Committee notes however that there is now general 
agreement in the Member States that more sustained 
European growth is crucial to an improvement in the 
employment situation. However, not all countries are 
showing the degree of commitment which their respect­
ive potential would allow. 
4.2. The priorities set at the Brussels and Hanover 
summits will call for ever-increasing commitment in the 
nex few years from the Member States; these have not displayed enough economic dynamism at a time when 
the two sides of industry have shown, as at the Val 
Duchesse dialogue, that it is possible to build a Euro­
pean social dialogue. 
The Committee feels that the degree of consensus 
achieved on the need for dynamic Europe-wide growth 
provides the bedrock for the economic and social 
cohesion which is vital to the successful completion of 
the internal market. 
Growth and jobs, development and balance between 
regions, economic and social cohesion, and the com­
pletion of the internal market, are all interdependent. 
Anything less than total success in any one of these areas 
would halt progress towards economic and monetary 
union. 
4.3. Greater economic cohesion between the Mem­
ber States is, as we have said before, contingent on 
real coordination of economic, and not just monetary 
policies. The Committee also supports the creation of 
an EEC financial area and the adoption of directives 
aimed at bringing about the unrestricted provision of 
services. It also favours a study on the setting-up of an 
autonomous European central bank. 
4.4. At the same time, efforts should continue to 
achieve greater convergence of Member States' econ­
omic performances, so as to reduce the present dispar­
ities and thus together derive greater benefit from the 
indispensable higher growth of the richer countries 
which have a healthier economy. 
The Commission dwells too much on the respective 
roles of those countries which stimulated the economy 
and those which should have done more in 1988. The 
emphasis should be on the role of the stronger econ­
omies which, by virtue of their scale, should provide 
ongoing stimuli and commitments. 
4.5. As regards social cohesion, the ESC will issue 
an Opinion on the package of proposals which the 
Commission has undertaken to prepare. For the 
moment, the Committee would point out that social 
cohesion is threatened by the serious under-develop-
ment of some regions (income ratios of 1:5; 30% unem­
ployment in some areas; 20% of the EEC's population 
living in regions whose per capita GDP, expressed in 
terms of equal purchasing power, is 25% below the 
EEC average). Two other problems requiring greater 
No C 23/32 Official Journal of the European Communities 30. 1. 89 
consideration are the concentration of wealth and a 
better distribution of incomes. 
4.6. The economic and social disadvantages suffered 
by the least prosperous areas of the Community must 
be tackled, first and foremost by achieving greater 
convergence of economic policies and by exploiting 
internally-generated potential. 
At the same time, the Committee stresses that direct, 
sustained involvement of the various social partners 
will be necessary in order to achieve the degree of social 
cohesion sought by the Commission. Any guidelines 
for progress on working conditions, social protection, 
safety, consultation and information, will have to 
involve a gradual alignment of the various national 
situations, whilst avoiding social dumping and/or the 
possible relocation of production centres. 
In the Committee's view, the lower real wages and less 
comprehensive social legislation in some regions and 
production areas should not be viewed as comparative 
advantages, but as transitional stages in the completion 
of the internal market. 
As part of the gradual upward convergence of social 
standards, social dialogue should also give thought to 
the content of possible European-level agreements and 
contracts. 
4.7. The Committee will issue its own statement on 
the completion of the internal market and its potential. 
For the moment, it would point out that the improved 
performance of the European economy (which has been 
further bolstered by internally-generated factors) stems 
partly from the expectations kindled by the completion 
of the internal market. 
However, the Committee still has reservations and con­
cern about the lead given by the Council. Although it 
has approved one third of the proposals presented by 
the Commission, the Council is finding it difficult to 
achieve the convergence which is vital on some of the 
key aspects of the harmonization process, leaving aside 
the qualitatively important progress mad in the insti­
tutional procedures. 
4.8. The Committee urges the Commission, the 
Council and the European Parliament to revamp the 
budget from 1989 on, so that the allocation of funds is 
more in keeping with the policies recognized as pri­
orities for boosting growth and jobs. 
It should be emphasized here that the level of budget 
allocations will determine: 
— the role which expectations play in investment 
decisions, — the effects expected from back-up measures, 
— the evolution of trade policies towards non-EEC 
countries, 
— the possibilities for completing the internal market 
and achieving a high level of economic and social 
cohesion. 
5. Procedures and structure for a more effective annual 
economic report 
5.1. To foster greater economic cooperation and 
ensure closer Community-wide cohesion, the Commit­
tee considers that when dealing with Member States' 
economic policies, the Commission and Council should 
sharpen up the guidelines and directions contained in 
the annual economic report, as well as the monitoring 
procedures. 
5.2. First, an initial check could be made on the 
consistency and compatibility of the various economic 
policies if by 1992 the Member States managed to adopt 
the same timetable for submitting budgetary estimates 
and guidelines for financial and tax policy. 
Simultaneous moves by the twelve Member States to 
produce forecasts and guidelines, coupled with contem­
poraneous approval of the Commission's annual econ­
omic report, would make it easier to compare the results 
achieved within the economic cycle and over the same 
time span. 
5.3. Second, the Committee would draw attention 
to the need for a review of the economic consultation 
procedure adopted by Council Decision 74/120/EEC of 
18 February 1974. This review should bring the pro­
cedure into line with the requirements of the Twelve 
and the procedures and aims set out in the Single Act, 
and should give the Commission certain supervisory 
powers on the coordination of economic and monetary 
policies. 
5.4. The Commission, for its part, can sharpen up 
the guidelines in its annual economic report, ac­
companying them with specific 'Black Papers' identify­
ing the current discrepancies between expressed aims 
and actual results. This could help highlight the under­
lying trends in the Member States and, without casting 
any political judgments, stimulate the search for suit­
able joint corrective measures to achieve greater control 
over the main macroeconomic variables, while respect­
ing the priorities of the Community as a whole. 
30. 1. 89 Official Journal of the European Communities No C 23/33 
5.5. Finally, bearing in mind that, in the Committee's 
view, the priority aim is still to achieve the highest 
possible level of employment and skills against a back­
ground of stable growth and balanced development, 
the Commission should endeavour to back up the report 
on 'the Cost of non-Europe' with similar forecasts 
regarding jobs. 
Done at Brussels, 23 November 1988. 
1. General comments 
1.1. The contemporary European idea was born out 
of resistance to nationalistic tyranny, xenophobia and 
racism. It is right and proper, therefore, that the Euro­
pean Community should concern itself with efforts 
to combat any upsurge of racism in our midst. The 
Committee welcomes the Commission initiative, and 
yet, in keeping with earlier related Opinions (2), ex­
presses deep disappointment that only a proposal for a 
Council Resolution is presented rather than an effective 
policy displaying a real political commitment to combat 
racism. 
(!) OJ No C 214, 16. 8. 1988, p. 32. 
(2) ESC Opinion on migrant workers (OJ No C 343, 
24. 12. 1984); ESC Opinion on guidelines for a Community 
policy on migration (OJ No C 186, 26. 7. 1985). The need for greater transparency during the transition 
towards a full internal market could be met by develop­
ing a dynamic input-output model to assess, using alter­
native technological scenarios, the input and structure 
of employment, the employment levels in different 
regions, and the technological changes necessary in 
education and training. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE 
1.2. It is both ironic and sad that, as progress is 
rapidly being made towards '1992' and the abolishing 
of commercial frontiers between Member States, human 
barriers and racial tensions have still to be broken down 
within the Community. The Committee insists that all 
EC nationals, including those who are from ethnic 
minorities, are assured a share of and a future in a 
'People's Europe', that rights of residence, of freedom 
of movement and employment, and the mutual recog­
nition of diplomas and qualifications are applied across 
the board. 
1.2.1. The Commission rightly focuses on combating 
racism and xenophobia and on the need to safeguard 
fundamental rights, as stressed by the recent Single Opinion on the proposal for a Council resolution 
on the fight against racism and xenophobia (!) 
(89/C 23/12) 
On 11 July 1988, the Council decided to consult the Economic and Social Committee 
under Article 198 of the Treaty establishing the European Economic Community on the 
abovementioned proposal. 
The Section for Social, Family, Educational and Cultural Affairs which was responsible for 
preparing the Committee's work on the subject, adopted its Opinion on 10 November 1988. 
The Rapporteur was Mrs Flather. 
At its 260th plenary session (meeting of 23 November 1988), the Economic and Social 
Committee adopted the following Opinion by 105 votes in favour and 3 abstentions.