13. 11. 78 Official  Journal  of the European  Communities No C 269/9 
Page 3, paragraph  2.1. - Milk 
Add to the existing  paragraph: 
'While  the objective  of reducing  the volume  and cost  of intervention  is acceptable,  the Committee  would 
urge  the  Commission  to consider  other  methods  of reducing  it, with  the  tools  at its command, 
preferably  over  a full year  so as to reduce  the danger  of speculation  and  disorder  in the market.' 
Reason 
As for the first  amendment,  this  is a question  of tools,  not  of objectives. 
Voting 
For: 29, against:  37, abstentions:  9. 
Opinion  on the proposal  for a Council  Decision  empowering  the Commission  to issue  loans  for 
the purpose  of promoting  investment  within  the Community 
The text  referred  to the Committee  has been  published  in Official  Journal  of the European 
Communities  No  C 37 of 14 February  1978,  page  7. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 8 February  1978,  the Council  referred  the abovementioned  proposal  to the Economic  and 
Social  Committee  in accordance  with  Articles  235  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 158th 
plenary  session,  held  in Brussels  on 26 and  27 April  1978. 
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  235 
and 198  thereof, 
Having  regard  to the request  made  by the Council  of the 
European  Communities  on 8 February  1978  for  an 
opinion, 
Having  regard  to the decision  taken  by the Chairman  of 
the Economic  and Social  Committee  on 7 February  1978, 
in anticipation  of the aforementioned  request,  entrusting 
the preparation  of an opinion  on the matter  to the Section 
for Economic  and Financial  Questions, Having  regard  to the oral  report  made  by Mr Rouzier,  the 
rapporteur,  and  the opinion  adopted  by the Section  on 
4 April  1978, 
Having  regard  to the discussions  at its 158th  plenary 
session  held  on 26 and 27 April  1978  (meeting  of 27 April 
1978), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously  by 40 votes  to 0 with  9 abstentions: 
1.1. The  Committee  is sympathetic  to the spirit  that 
inspired  this proposal.  It generally  applauds  the proposal, 
No C 269/10 Official  Journal  of the European  Communities 13. 11. 78 
which  is aimed  at stimulating  inflation-free  growth  and 
minimizing  unemployment.  Nevertheless,  the Committee 
does  have  a number  of reservations  on a few points  which 
it believes  would  prevent  achievement  of those  aims. 
1.2. The  Committee  feels  the proposed  new  financing 
instrument  should  be one  of a group  of Community 
measures  that  can  help  to re-launch  the move  towards 
EMU  and  are  akin  to the measures  proposed  in the 
Community's  fourth  medium-term  economic  policy 
programme. 
1.3. The  Committee  would  emphasize  that  the 
proposal's  aim is complementary  to that  of the European 
Investment  Bank,  and of other  national  and international 
lenders.  The  proposed  new  financing  instrument  should 
be seen  as an additional  facility,  in competition  with  no 
other  organization  or authority.  The aims  of this proposal 
should  be more  clearly  defined. 
1.4. The  Committee  would  like to see the Community 
able,  with  such  an instrument,  to give  rapid,  priority 
encouragement  to investment  projects  in keeping  with  the 
Community's  structural  objectives,  the achievement  of 
which  is essential  for an improvement  in employment. 
1.5. To  this  end,  the Committee  would  like to see the 
Commission  lay down  criteria  in line with  these  aims  for 
determining  the eligibility  of the projects.  The Committee 
wants  to ensure  that  it is consulted  regularly  on such 
important  matters  as the aims  and criteria  for eligibility. 
GENERAL  COMMENTS 
. 2. A tool  to promote  investments  and  help  attain  the 
Community's  priority  objectives 
2.1. Since  the onset  of the recession  in 1974,  provoked 
in part  by the rise in the price  of oil and,  later,  of other 
imported  raw  materials,  the need  to restructure  certain 
sectors  has become  more  apparent.  In order  to adapt  to 
new sources  of energy,  rehabilitate  declining  regions,  and 
enable  industries  to develop  the new  technologies,  large 
amounts  of capital  are required.  A financing  instrument 
that would  provide  short-term  boosts  to the economy,  as 
well as support  longer-term  structural  changes,  has 
frequently  been  moved. 
2.2. The  Committee  sees  the  new  Community 
financing  instrument  as fulfilling  this role - alongside  and 
complementary  to national  loans,  EIB  loans  and 
contributions  from  the  Community's  Regional  Fund, 
EAGGF,  etc. 3. The  institutional  aspects 
3.1. The  Committee  accepts  that  the Community's 
name  is a valuable  one in raising  loans.  It recognizes  that 
the Commission  already  has experience  in raising  loans 
to lend  to Member  States  with  balance-of-payments 
difficulties. 
3.2. It  also  accepts  that  use  must  be made  of the 
banking  expertise  and  experience  of long  standing 
embodied  in the European  Investment  Bank,  and  that 
there  must  be close  cooperation  between  the Commission 
and the Bank  in the handling  of the proposed  Community 
loans  - as there  has indeed  been  in the past. 
3.3. The  Committee  believes  that,  in order  to enable 
the Community  to use this facility  as a flexible,  effective 
financing  instrument,  decisions  as to whether  a loan  is 
finally  made  should  be taken  by the Bank  and  the 
Commission  working  more  closely  with  each  other.  The 
Committee  feels  that  the  Cooperation  Agreement 
between  the Commission  and the Bank  must  be drafted  in 
such a way  that,  if the Bank  rejects  a project  deemed 
eligible  by the Commission,  the latter  has the final  say in 
the decision  to grant  the loan. 
4. Specific  proposals 
Page  1 
The last  two  lines  of the second  'whereas'  should  be 
changed  to read: 
. . so as to stimulate  an economic  upturn,  maintain 
and/or  create  employment  opportunities,  and support 
common  policies.' 
Page  2 
The last 'whereas'  should  be changed  to read: 
'Whereas  the European  Investment  Bank  has stated 
that it is willing  to collaborate  with  the Commission  in 
putting  the present  Decision  into  effect.' 
Page  2 - Article  1 
The reference  to the 'regional  impact'  of the Community's 
priority  aims  adds  a further  condition  which  may  make  it 
13. 11. 78 Official  Journal  of the European  Communities No C 269/11 
more  difficult  to achieve  these  objectives.  The Committee 
would  like  to see this reference  deleted.  The  term  'other 
sectors'  is too vague,  and  requires  further  elaboration 
before  it would  be acceptable  to the Committee. 
Page  2 - Article  2 
A new  second  indent  after  . . eligibility  of projects' 
should  be added: 
'The Committee  is to be consulted  regularly  regarding 
the laying  down  of general  aims  and  the  rules 
governing  the eligibility  of projects.' 
Page  2 - Article  3 
The Committee  believes  that  the  European  Unit  of 
Account  should  be introduced  as soon  as possible  for all 
borrowing  and  lending  operations. 
Page  3 - Article  4, first  line 
The first  seven  words  in the English  version  need  to be 
modified  slightly  for proper  sense  to be made  of them. Page  3 - Article  5 
The mandate  given  to the EIB by the Commission  to make 
loans,  as summarized  in this Article  and expanded  upon  in 
the draft,Cooperation  Agreement,  threatens  to divert  the 
proposed  new  financing  instrument  from  its purpose, 
given  the  difficulties  that  might  arise  should  certain 
projects  deemed  eligible  be regarded  as non-viable  by the 
Bank.  As stated  in paragraph  3.3 above,  the Committee 
feels  that  the cooperation  between  the Bank  and  the 
Commission  in granting  and administrating  loans  should 
be as close  as possible  and  that  in any  event  the 
Commission  should  have  the final  say on whether  or not 
to make  the loan.  The Committee  disagrees  with  Article  5 
in its present  wording  and would  therefore  like to see it 
completely  recast. 
Page  3 — Article  6 
The first  line should  read: 
'.. . the Council,  Parliament  and  the Economic  and 
Social  Committee  . ..'. 
Done  at Brussels,  27 April  1978. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the proposal  for a Council  Directive  amending  Council  Directive  68/414/EEC  of 
20 December  1968  imposing  an obligation  on Member  States  of the EEC  to maintain  minimum 
stocks  of crude  oil and/or  petroleum  products 
The text  referred  to the Committee  has been  published  in Official  Journal  of the European 
Communities  No  C 15 of 19 January  1978,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 16 January  1978,  the Council  referred  the abovementioned  proposal  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 158th 
plenary  session,  held  in Brussels  on 26 and  27 April  1978. 
The full  text  of the opinion  is as follows: