No C 18/24 Official Journal of the European Communities 23.1.78 
employment, reasonable utilization of resources and 
production capacity and, on a more general level, 
economic growth. 
2.8. On the basis of the above comments, the 
Economic and Social Committee approves the 
Commission's proposals. 
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 discussions. 
Insert the following new paragraph between the present paragraphs 2.1 and 2.2: 
'The Committee therefore thinks it deplorable that neither the Commission nor the Council 
have taken any account whatsoever of its previous opinions. The Commission has been 
led into making proposals regarding agricultural products that undermine the common 
agricultural policy because it did not first study the effects of GSP concessions on each 
sector. These concessions always put the squeeze on highly specialized products, and 
gradually they are depriving farmers of any opportunity to switch from sectors in surplus 
to sectors where there are shortages. Among the products that have been particularly hit 
are horses for slaughter and limes from the French overseas departments.' 
Reason 
The general terms of the amendment are clear. 
As regards horses for slaughter, the concessions here come at a time when France has just 
begun to try to give production a new lease of life, especially in mountain regions. 
Similarly, it is regrettable that duties on limes are being cut just when this product, which is 
particularly cultivated in the French overseas departments, is beginning to find an outlet in the 
Community. 
Voting 
For: 28, against: 32, abstentions: 12. 
Opinion on the proposals for: 
— a Council Directive concerning operations qualifying for a higher rate of intervention 
by the European Social Fund 
— a Council Decision regarding European Social Fund assistance towards women 
The text referred to the Committee has been published in Official Journal of the 
European Communities No C 250 of 19 November 1977, page 5. 2.7. In conclusion, the Committee urges that, in 
future, the Community's trade commitments should 
form part of an overall common commercial policy — 
a policy that is effective and in keeping with the 
Community's political roles in the world and a policy 
that reflects the essential requirements of internal 
economic and social policy, particularly as regards 
Done at Brussels, 26 October 1977. 
23.1. 78 Official Journal of the European Communities No C 18/25 
A. LEGAL BASIS FOR THE OPINION 
On 6 October 1977 the Council referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Articles 127 and 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 
152nd plenary session held in Brussels on 26 and 27 October 1977. 
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 
Articles 127 and 198 thereof, 
Having regard to the request for an opinion made 
by the Council on 6 October 1977, 
Having regard to the decision taken by its Bureau 
on 27 September 1977, in anticipation of the 
abovementioned referral, instructing the Section for 
Social Questions to draw up an opinion and a 
report on the matter, 
Having regard to the opinion adopted by that 
Section on 13 October 1977, 
Having regard to the oral report made by the 
rapporteur, Mr Carroll, 
Having regard to the discussions at its 152nd plenary 
session held on 26 and 27 October 1977 (meeting 
of 26 October), 
Having regard to the Committee's opinion of 28 April 
1977 on the communication of the Commission to 
the Council regarding the review of the rules 
governing the tasks and operations of the European 
Social Fund (*), 
Whereas a number of Community regions are 
suffering from a particularly serious and chronic 
imbalance in employment; 
Whereas it is recognized that the Community has 
an obligation to provide such regions with special, 
systematic assistance; 
Whereas female unemployment is disproportionately 
high in the Community in relation to unemployment 
among men; 
Whereas its opinions on equality of treatment of 
men and women as regards access to employment, 
(*) OJ No C 126, 28. 5. 1977. vocational training, promotion and working 
conditions on the economic and social situation of 
the woman in the European Community and on 
specific measures to be taken to help young and 
elderly workers and women resuming gainful 
employment (2); 
Whereas there are numerous obstacles impeding 
women's access to vocational training and employ­
ment; 
Whereas special measures should therefore be 
initiated for women; 
Whereas the Social Fund provisions so far have been 
too narrowly framed to allow the Fund to provide 
effective encouragement for the employment of 
women, 
HAS ADOPTED THE FOLLOWING OPINION 
unanimously: 
The Committee endorses the Commission's proposals, 
subject to the comments set out below. 
1. General comments on the proposal for a Council 
Regulation concerning operations qualifying for a 
higher rate of intervention by the European Social 
Fund 
1.1. The Committee is aware of the fact that this 
Commission proposal is the result of a political 
compromise arrived at in the Council. 
1.2. The Committee welcomes the positive side 
of the proposal, viz. the fixing of a higher rate of 
intervention, which means that the ceiling of 50 % 
can be exceeded for schemes in certain regions. It 
would, however, point out that in its opinion on 
the communication from the Commission to the 
(2) OJ No C 286, 15. 12. 1975, p. 9. 
OJ No C 131, 12. 6. 1976, p. 34. 
OJ No C 56, 7. 3. 1977, p. 1. 
No C 18/26 Official Journal of the European Communities 23.1.78 
Council regarding the review of the rules governing 
the tasks and operations of the European Social 
Fund, it endorsed the Commission's proposals that 
the Social Fund should be able to finance 65 % of 
the cost of schemes in regions which are suffering 
from the most glaring structural imbalances or 
which are affected by the decline of one or more 
vital industries. The Committee reiterates this 
standpoint and asks that a massive financial drive 
be conducted in favour of the depressed areas 
indicated by the Commission, in which structural 
imbalance is continuing to increase as compared 
with the situation in more economically developed 
regions. 
1.3. As far as the choice of regions eligible for 
the preferential rate of intervention is concerned, the 
five regions specified by the Commission in its 
proposal (Greenland, the French overseas departments, 
Ireland, Northern Ireland and the Mezzogiorno) are 
in the Committee's view those which are indeed most 
clearly in need and therefore merit special assistance. 
1.4. The Committee considers, however, that other 
regions of the Community are hit by serious economic 
and social difficulties. Later on, a higher rate of 
intervention should be made available for these 
regions too. This should be done in the light of the 
experience in the abovementioned five regions (which 
will entail careful and regular evaluation of the 
results and the effectiveness of the measures adopted), 
and with reference to the trend throughout the 
regions of the Community. The Committee would 
therefore urge the Council to adopt in due course, 
on a proposal from the Commission, suitable 
measures to enable regions other than the 
abovementioned five to benefit from a higher rate of 
intervention. In this connection, the Committee would 
point out that, in its communication to the Council 
regarding the review of the rules governing the tasks 
and operations of the European Social Fund, the 
Commission included among the regions eligible for 
a higher rate of intervention not only those 
characterized by a particularly severe and chronic 
imbalance in employment but also those affected by 
the decline of one or more vital economic sectors. 
1.5. The Committee regrets that the Commission 
was unable to apply all the criteria which it proposed 
in the abovementioned communication, and which 
the Committee endorsed at the time. The Committee 
thinks that if similar difficulties arise in regions 
other than the abovementioned five, they too should 
be eligible for a higher rate of intervention. 
1.6. As regards the requisite funds, the Committee 
would reiterate the view it has expressed time and 
again that the resources allocated to the Social Fund do not, in particular, suffice to get to grips with the 
problems caused by the recession. The Committee 
underlines this point of view and regrets the limited 
scope of the Community's means of action, which — 
especially at regional level — precludes any broader-
based action commensurate with the needs. 
1.7. Finally, the Committee would point out that 
it has always thought it important to coordinate the 
Community's various instruments of finance more 
effectively. Such coordination is especially urgent in 
the case of measures to aid the most disadvantaged 
regions in the Community. 
1.8. All in all, the Committee regrets the 
fragmentary nature and limited scope of the 
Commission's proposals. However, provided that 
they are added to later on, the proposals could — the 
Committee thinks — be a first step towards a more 
resolute course of action on the part of the 
Community to combat regional imbalances. 
2. General comments on the proposal for a Council 
Decision regarding European Social Fund assistance 
towards women 
2.1. The Committee welcomes the fact that the 
European Social Fund provisions are to be amended 
in such a way that the Fund can effectively promote 
the employment of women not only in theory but 
also in practice. 
2.2. The proposal basically takes into account the 
Economic and Social Committee's repeated requests 
for the Social Fund's resources to be used in such a 
way that they can be of real assistance to out-of-work 
women. 
2.3. The Committee thinks, however, that the 
sum of 8 million EUA provided for 1978 is totally 
inadequate in view of the worrying employment 
situation — especially among women — in the 
Community. 
2.4. Article 2 of the proposal refers to Article 3 
of the proposed amendment to the Council 
Regulation of 8 November 1971. The Committee 
thinks, however, that the financial resources made 
available bear no relation to the comprehensive 
action possible under the said Article 3. The final 
text of the amendment to the Council Regulation of 
8 November 1971 has not yet been adopted. A 
proposal for such an amendment was contained in 
Annex II to the communication of the Commission 
to the Council regarding the review of the rules 
governing the tasks and operations of the European 
Social Fund. 
2.5. Because of the small sum made available, 
the Committee fears in particular that the proposed 
23.1. 78 Official Journal of the European Communities No C 18/27 
measures will make very slow headway. This 
inevitably slow headway will not provide a suitable 
basis for a more precise assessment of the financial 
requirements. 
2.6. The Committee thinks that the resources 
made available to help jobless women should be 
allocated as far as possible to projects which are 
of direct benefit to them, and that the specialist 
training of the teaching personnel needed should be 
financed only if there is no question of this being 
done by other bodies (in particular by the public 
authorities). 
2.7. It is the Committee's belief that a considerably 
larger sum of money, reflecting the rate and 
structure of female unemployment, must be provided 
for all measures in aid of out-of-work women, so 
that the concrete action on which a start is now 
being made, will not be mistaken for window-
dressing by the general public in the Community. 
2.8. The Committee would expressly point out 
that, for other reasons besides the inadequacy of 
the funds, the measures provided for will not have 
a sufficient impact on female unemployment. 
2.9. Section 7 of the Commission's explanatory 
memorandum, which lists the obstacles facing women 
when seeking vocational training or employment, fails to mention the very important fact that society 
is racked with prejudices against working women, 
and offers inadequate family-care facilities. 
2.10. For instance, many unemployed mothers 
will not be able to benefit from the measures because 
they do not have access to nurseries, kindergartens, 
day-care centres, etc. The Committee would therefore 
reiterate its wish to see Community money being 
used to finance such facilities. 
2.11. Among the obstacles that are not mentioned 
in Section 7 (2) of the explanatory memorandum is 
the reluctance of employers to train or hire women 
since the measures to protect them impose additional 
financial burdens on employers. 
2.12. The Committee would repeat a recommen­
dation it has made on a number of occasions namely 
that such burdens should be borne by society as a 
whole. 
2.13. The Committee has voiced the above 
reservations because, even though it considers that 
the Decision can be a useful initial step towards 
improving the employment situation of women, the 
small sums made available are insufficient to attain 
the overall objective set by the European Council 
at its meetings in Rome on 25 and 26 March 1977 
and London on 29 and 30 June 1977. 
Done at Brussels, 26 October 1977. 
The Chairman 
of the Economic and Social Committee 
Basil de FERRANTI 
Opinion on the proposal for a Council Directive on the elimination of double taxation 
in connection with the adjustment of transfers of profits between associated 
enterprises (Arbitration procedure) 
The text referred to the Committee has been published in Official Journal of the 
European Communities No C 301 of 21 December 1976, page 4. 
A. LEGAL BASIS FOR THE OPINION 
On 9 December 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.