Opinion of the Economic and Social Committee on the 'Proposal for a Council Directive amending Council Directive 94/4/EC of 14 February 1994 and extending the temporary derogation applicable to Germany and Austria` () (98/C 410/05)

On 8 September 1998 the Council decided to consult the Economic and Social Committee, under Article 99 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Economic and Social Committee instructed the Section for the Single Market, Production and Consumption to prepare the Committee's work on the subject, and appointed Mr Bernabei as rapporteur-general.

At its 358th plenary session (meeting of 15 October 1998), the Economic and Social Committee adopted the following opinion by 87 votes to three with six abstentions.

1. Introduction

1.1. The Commission is proposing temporary measures to extend the derogations applicable to Germany and Austria regarding tax- and duty-free arrangements for travellers, under which from 1994 until the end of 1997 they could grant an allowance of ECU 75, as opposed to ECU 175 elsewhere in the Community, to imports by travellers entering by a land frontier or, where applicable, by coastal navigation, linking them to countries other than EU Member States and EFTA members: i.e. Poland, the Czech Republic, Slovakia, Hungary and Slovenia.

1.2. At the time of the first request for a derogation, the reasons given for the measures were the considerable disparity in prices on each side of the borders, together with the existence in the countries concerned of duty free shops in close proximity to the Austrian and German borders, which 'affected their internal trade` and resulted in 'considerable tax losses`.

1.3. The Commission's proposals are in response to the direct requests by the German and Austrian authorities to extend the arrangements until 2002, on account of the continuation or aggravation of the conditions described above.

1.4. While confirming the scope of Directive 94/75/EC () and Regulation (EC) No 3316/94 () on the derogation measures, the Commission proposes that a new minimum allowance of ECU 100 be set with effect from 1 January 1999, and that Germany and Austria should gradually and jointly raise this limit to bring it into full alignment with the Community limit by 1 January 2003.

2. General comments

2.1. The Committee notes that in spite of the application of multiannual arrangements derogating from Community tax- and duty-free allowance levels between 1994 and the present, the German and Austrian authorities report continuing economic difficulties, particularly in certain sectors such as textiles, foodstuffs and building materials. The immediate application of the normal Community allowance of ECU 175 could therefore damage the industrial structure and the economic and social fabric of their border areas, which already display low levels of growth and high levels of unemployment compared with the remainder of their territories.

2.2. The Committee must, however, emphasize that as such, the derogation arrangements must be of limited duration and of diminishing effect if they are not to run counter to the underlying principle of the single market and of the enlargement process, in keeping with the reinforced pre-accession strategy. The Committee has issued opinions on this strategy on several occasions, highlighting the importance of preparing and implementing a partnership approach and arguing that the EU should, as part of the preparations for enlargement, concentrate on developing cross-border and regional cooperation. It has proposed that 'the European Union continue, by way of action programmes, to provide strong support to the development of trade and cooperation between the applicant countries, especially in border regions and between neighbouring states (1)

(1) ESC opinion CES 456/98, OJ C 157, 25.5.1998.`.

2.3. The Committee therefore supports the Commission's suggestions that the allowance in question should be raised to at least ECU 100 from as early as 1 January 1999, and that gradual increases should be agreed, bringing it up to the normal Community level by 2002. In the Committee's view, a sizeable increase should come into force from the year 2000 and, if the relevant applicant countries put into the practice the planned timetable for adjustment to the single market acquis communautaire in order to avoid distortions of competition, the process should be speeded up in the interests of ensuring the consistency of Community policy.

3. Conclusions

3.1. Except for the points indicated above, the Committee approves the Commission's proposals for a further and final period extending the arrangements for a derogation - to be both temporary and phasing out according to an agreed timetable - from the Community system of allowances for goods imported by travellers. This also reflects the fact that the European Union must comply speedily with its international commitments in this field, and especially full implementation throughout its territory of the Kyoto Convention, which provides for an allowance of 150 SDRs (Special Drawing Rights).

3.2. The Committee also recommends that appropriate action under the present Phare cooperation and assistance instruments, the new pre-accession instrument and the Community initiatives for inter-regional and cross-border cooperation should be taken urgently in order to facilitate and accelerate economic recovery and an upturn in employment, and the full application of single market and Community customs and tax policy in the areas in question.

Brussels, 15 October 1998.

The President of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

() OJ C 273, 2.9.1998, p. 8.

() OJ L 365, 30.12.1994, p. 52.

() OJ L 38, 18.2.1995, p. 19.