No C 292/16 Official  Journal  of the European  Communities 3.12.  77 
designed  to alleviate  the current  level  of unemploy-
ment  and  hopes  that  procedures  can  be modified  to 
accelerate  the practical  advantage  of earlier  transfer 
of assistance. 
7. Inspection  control 
7.1. The  report  refers  to the inspection  of projects 
by the  Commission  (paragraph  59 of the  second 
annual  report  (1976)).  Since  the establishment  of the 
Fund  there  have  been  131  inspections  and  this  com-
pares  with  a total  of 2 728 projects.  In the absence  of 
a system  of delegated  responsibility  such  as described 
in operation  in some  Member  States  (paragraph  62 of 
the second  annual  report  (1976))  the  physical  pres-
ence  of Commission  personnel  must  be difficult  to 
provide.  The  Committee  does,  however,  question  the 
adequacy  of the sample  check,  especially  in the initial 
years  of the Fund  operation. 
8. Coordination  of Community  regional  instruments 
8.1. The  Committee  approves  the emphasis  in the 
report  on the necessity  for action  to ensure  coordina-
tion in Community  policies  and  coherence  in the aid 
from  the  various  Community  financial  instruments 
(paragraph  71 et seq.  of the  second  annual  report 
(1976)).  This  was  strongly  advocated  by the  Com-
mittee  in previous  opinions  and  the  Committee  is disappointed  that  the report  does  not  implement  the 
specific  recommendation  made  in the opinion  on the 
first annual  report.  The  Committee  agrees  with  the 
Commission  that  the impact  of the  Fund  cannot  be 
assessed  in isolation  (paragraph  6 of the  second 
annual  report  1976))  and  having  regard  to the desira-
bility  of the widest  possible  dissemination  of such  in-
formation  (paragraph  80 of the second  annual  report 
(1976))  a summary  of aid  to each  Member  State 
from  all Community  sources  would  be most  appro-
priate  in the report  of the Regional  Fund. 
9. Size  of the Fund 
9.1. Six  Member  States  submitted  applications  for 
grants  in excess  of their  respective  entitlements  and 
included  two  which  were  as high  as 143  %. In all, the 
applications  in 1976  involved  investments  of 5 342-45 
million  u.a.  and  the  decisions  reduced  the total  ap-
proved  to 4 731'73  which  fully  absorbed  the commit-
ment  appropriation.  Some  of the applications  are de-
ferred  for reconsideration  in 1977  because  of lack  of 
funds. 
9.2. It  is clear  that  the size  of the  Fund  does  not 
meet  the  demands  of the  situation  and  while  the 
Committee  learns  with  satisfaction  of the  Commis-
sion's  proposals  in respect  of the  1978  Budget,  it 
nevertheless  regrets  that  no effort  was  made,  such  as 
supplementary  vote,  to compensate  for the erosion  of 
the Fund  through  inflation  and  to meet  the urgency 
of Community  needs  in 1976  and  1977. 
Done  at Brussels,  29 September  1977. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on industrial  change  and  employment—a  review  of the Community's  industrial 
policy  and  future  prospects 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 139th  plenary  session  held  on 25 and  26 May  1976  the Committee,  acting  on a 
proposal  from  the Bureau,  decided  to deliver  an opinion  on the abovementioned  subject 
on its own  initiative. 
3.12.  77 Official  Journal  of the European  Communities No C 292/17 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
151st  plenary  session,  held  in Brussels  on 28 and  29 September  1977. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  fourth  paragraph  of Article  20 
of the Committee's  Rules  of Procedure, 
Having  regard  to the  Committee's  decision  on 26 
May  1976,  following  a proposal  from  the Bureau,  to 
deliver  an opinion  on industrial  change  and  employ-
ment  — a review  of the  Community's  industrial 
policy  and  future  prospects;  and  having  regard  to the 
Committee's  decision  of that  date,  instructing  the 
Section  to prepare  its work  on the matter, 
Having  regard  to the  opinion  issued  by the  Section 
for Industry,  Commerce,  Crafts  and  Services  at its 
meeting  on 7 September  1977, 
Having  regard  to the report  submitted  by the rappor-
teur,  Mr Carstens, 
Having  regard  to the  discussions  at its 151st  plenary 
session  held  on 28 and  29 September  1977  (meeting 
of 28 September), 
Whereas  the  Community  is heavily  dependent  on 
trade  and  the international  division  of labour,  mainly 
because  it is poor  in primary  commodities  and 
domestic  energy  resources  and  is not  a self-sufficient 
economic  unit;  whereas,  because  of the  relative 
stability  of the monetary  system  and  free  trade,  it has 
been  able  to overcome  these  difficulties; 
Whereas  during  the  current  recession  certain  prob-
lems  have  emerged  or come  to the  fore  both  inside 
and outside  the  Community  (inflation,  rampant  un-
employment,  balance-of-payment  difficulties,  new  re-
lations  with  and  commitments  to the  developing 
countries,  etc.); 
Whereas  industrial  structures  must  consequently  be 
adapted  since  this  is absolutely  essential  if Com-
munity  industry  is to survive; 
Whereas  the  development  of Community  industry  is 
very important  for employment, 
HAS  ADOPTED  THE  FOLLOWING  OPINION: 
by 63 votes  to 31 with  one  abstention, 1. Changes  in the industrial  environment 
1.1. Industrial  structure  undergoes  constant 
change,  both  at national  and  international  level.  It is 
particularly  affected  by the  international  situation 
and conditions  in individual  countries  and  in general 
by changes  in supply  and  demand,  technological  de-
velopments,  the arrival  of new  products  on the  mar-
ket and  changes  in terms  of competition. 
1.2. One  factor  which  should  especially  be taken 
into account  is the  gradual  industrialization  of the 
developing  countries.  It is impossible  to say  how 
quickly  this  industrialization  will  take  place,  but  it is 
likely  to be quite  a rapid  process,  not least  in view  of 
the commitments  taken  on by the Community  towards 
these  countries.  This  process  of industrialization  will 
enable  the  developing  countries  to improve  their 
standards  of living,  but it will  also  have  repercussions 
on the  imports  and  exports  of the  industrialized 
countries. 
1.3. Rapid  technological  development,  involving 
higher  investment  per  worker,  will  clearly  remain  an 
important  factor  over  the next  few  years.  Associated 
with  this  will  be the very  considerable  effects  which 
higher  commodity  and  energy  prices  will  continue  to 
have  on Community  industries  together  with  those  of 
increased  pressure  from  the main  industrialized  coun-
tries,  including  the United  States  and  Japan,  as a re-
sult of the lowering  of tariff  barriers.  It must  also  be 
borne  in mind  that,  particularly  since  the onset  of the 
recession,  many  countries,  including  the  Community 
and its Member  States,  have  introduced  a number  of 
measures,  such  as aids  and  various  forms  of import 
restrictions,  which  are changing,  to an ever-increasing 
degree,  the  traditional  way  in which  international 
trade  is organized. 
1.4. Finally,  mention  should  be made  of internal 
factors  — including  protection  of the  environment, 
changes  in demand  patterns  (caused  in particular  by 
increased  incomes  and  leisure),  industrial  pollution 
and increased  attention  to the  needs  of individuals 
and society  at large. 
No C 292/18 Official  Journal  of the  European  Communities 3. 12. 77 
1.5. At  all events,  it would  appear  to be abun-
dantly  clear  that  industry  in the Community  will  face 
enormous  adjustment  and  restructuring  problems 
over  the  next  few  years.  The  workers  employed  in 
Community  industry  will  of course  be affected  by 
these  problems.  The  1960's  were,  broadly,  a period  of 
full employment  and  industry  had  no real  difficulty 
in making  adjustments.  In a period  of high  unem-
ployment,  it is much  more  difficult  to make  adjust-
ments. 
1.6. Industrial  policy  was  not  explicitly  mentioned 
in the  EEC  Treaty,  mainly  because  it was  considered 
at the  time  that  removal  of trade  barriers  was  the 
main  concern  of policy  for  industry.  Today  the  EEC 
Treaty  provisions  on the  abolition  of classical  cus-
toms  and  other  barriers  to trade  have  largely  been 
implemented  — although  it is true  that  the  technical 
and administrative  trade  barriers  which  remain  are 
not being  tackled  quickly  enough.  But,  because  of the 
radical  political  and  economic  changes  which  are tak-
ing place  throughout  the  world,  the  need  for  an in-
dustrial  policy  is today  greater  than  ever. 
1.7. In  the  absence  of a common  industrial  policy, 
industrial  policies  of the  individual  Member  States 
develop  along  purely  national  lines,  and,  because  of 
these  narrow  horizons,  may  conflict  with  one 
another;  Member  States  thus  tend  to export  their 
problems,  i.e.  steps  taken  by one  Member  State  to 
strengthen  its  industry  (and  consequently  em-
ployment)  undermine  industry  (and  consequently 
employment)  in others.  All  Member  States  in fact 
pursue  an industrial  policy,  but  such  policies  are gen-
erally  implicit  rather  than  explicit.  This  has  contri-
buted  to the  difficulty  of establishing  an industrial 
policy  at Community  level.  In other  words,  although 
each  Member  State  has  equipped  itself  with  means 
for intervening  in the  economy  (for  example  four-
year  plans,  economic  expansion  laws,  investment 
controls),  the  Community  has  so far  not  been  pro-
vided  with  appropriate  instruments,  although  this  is 
essential  for  the  establishment  of a Community  in-
dustrial  policy. 
2. The  principles  and  objectives  of industrial  policy 
(a) The  substance  of industrial  policy 
2.1. 'Industrial  policy'  is difficult  to define.  The 
concept  cannot  be defined  in isolation,  partly  because 
industrial  policy  is meaningful  only  if seen  in relation 
to policy  in other  areas.  It is perhaps  fair  to say  that 
industrial  policy  is primarily  a special  type  of ap-
proach  to the  interplay  between  individual  policies 
which  have  an impact  on industry  (economic  and monetary  policy,  social  and  labour  market  policy, 
regional  policy,  trade  policy,  environment  policy,  etc.). 
'Industrial  policy'  covers  not  only  the  general  ap-
proaches  adopted  in the  various  relevant  fields  but 
also all concrete  rules  of conduct,  support  arrange-
ments,  restrictions,  etc.  which  have  a direct  impact  on 
the industrial  situation. 
2.2. 'Industrial  policy'  as  understood  in  this 
opinion  is primarily  concerned  with  the  income  and 
wealih-generating  function  of industry.  The  term  'in-
dustry'  as used  here,  embraces  large  and  small  firms 
(including  crafts  firms)  of the  public  and  private  sec-
tors. 
2.3. Industrial  policy  must  operate  within  the  area 
of interplay  of the policies  which  society  formulates  in 
order  to achieve  its objectives,  e.g.  sustained  improve-
ment  of living  conditions,  higher  consumer  satisfac-
tion,  jobs  for all capable  of working,  economical  use 
of raw  materials  and  energy,  the  satisfaction  of real 
individual  and  collective  needs  through  the  pro-
duction  of quality  goods  and  services  at the  lowest 
price  possible,  and  non-polluting  production  favour-
ing re-cycling  and  combating  waste.  A competitive  in-
dustrial  sector  is a sine  qua  non  for  attainment  of the 
abovementioned  objectives. 
2.4. Given  the  Community's  fundamental  depen-
dence  on the rest  of the world,  it is necessary  to ensure 
that conditions  within  the  Community  allow  the 
establishment  of new  industries,  and  allow  existing 
industry  to (a)  flourish  and  expand,  (b)  adapt  to 
changing  circumstances  and  carry  out  the restructuring 
which  is continually  needed,  and  (c)  continue  to 
compete  with  its rivals  in other  parts  of the world. 
(b) Employment 
2.5. Industrial  policy  must  cover  employment.  It 
would  be unacceptable  unless  it included  measures  to 
give Community  workers  a chance  of finding  a job. 
This  is particularly  true  in a period  of major  unem-
ployment,  like  the present  one. 
2.6. Cyclical  unemployment  inevitably  influences 
industrial  policy  decisions.  This  type  of unemploy-
ment  must  be tackled  by economic,  monetary  and 
social  measures  taking  into  account  the  necessity  of 
acting  within  the objectives  of a long-term  policy. 
2.7. The  elimination  of structural  unemployment, 
however,  is another  matter  and  here  industrial  policy 
has a long-term  contribution  to make  by influencing 
3. 12. 77 Official  Journal  of the European  Communities No C 292/19 
the structures  of industrial  production  and  marketing 
in the Community  and  elsewhere. 
2.8. The  following  are essential  if industry  and  in-
dustrial  policy  are to contribute  to job creation:  (a) a 
reasonable  amount  of quantitative  and  qualitative 
growth;  (b) adequate  purchasing  power;  (c) a fairly 
stable  economic  and  monetary  situation  in the Com-
munity  and  the rest  of the world;  and  (d) pursuit  of a 
Community  policy  which  provides  optimum  condi-
tions  for creating  and  maintaining  a competitive  in-
dustrial  sector,  so that  Community  industry  can  ob-
tain a maximum  share  of growth  in international 
production. 
2.9. Fairly  stable  development  on the above  lines, 
ensuring  availability  of the  requisite  finance,  will 
pave  the way  for  an expansion  in industrial  invest-
ment.  Steps  must  in any  case  be taken  to try and  en-
sure that  this  expansion  creates  and  maintains  jobs. 
The Committee  recommends  that  every  attempt  be 
made  at both  national  and  European  level  to mobi-
lize the resources  and  instruments  needed  to do this, 
since  structural  unemployment  is not only  a national 
problem  and  cannot  be absorbed  solely  by using 
national  instruments. 
2.10.  Technological  progress  is proceeding  at a 
rapid  pace,  and  the pressure  of international  competi-
tion is forcing  firms  to rationalize.  It is therefore 
probable  that  in the long  term  new  jobs  will  largely 
have  to be created  in the tertiary  sector,  whether  pub-
lic or private.  It must,  however,  be remembered  that 
growth  and  employment  in industry  is crucial  to 
growth  and  employment  in services. 
2.11.  If  an attempt  is made  to expand  economic 
activity  beyond  the limits  imposed  by the situation  in 
the Community  and  its trading  partners,  the  Com-
munity  will  find  itself  running  balance-of-payments 
deficits  with  the rest  of the world,  on which  it is de-
pendent.  These  deficits  may  then  force  the  Com-
munity  to reduce  its level  of economic  activity. 
(c) Education  and  vocational  training 
2.12.  The  Committee  observes  that  there  is a quan-
titative  and  qualitative  mismatch  between  training 
provided  and  jobs  available.  Unemployment  is parti-
cularly  high  among  the unskilled.  By the same  token, 
inadequate  training  is partly  to blame  for the particu-
larly  high  level  of female  unemployment.  There  has 
also been  an alarming  increase  in the  number  of 
young  graduates  out  of work  in recent  years,  and more  and  more  are finding  that  they  cannot  obtain 
the type  of work  for  which  they  have  been  trained 
and are inadequately  qualified  for the jobs  available. 
2.13.  The  maximum  emphasis  should  be laid  on 
broad  general  education  at all levels,  in view  of the 
rapid  — and  therefore  difficult  to forecast  — changes 
in job supply  and  demand. 
Measures  to be taken  in the field  of education,  gen-
eral training  and  vocational  training  are all the more 
urgent  because  they  can  only  bear  fruit  in the 
medium  term. 
3. Means  to be used 
3.1. An  industrial  policy  requires  a framework 
(e.g. the  common  market)  within  which  market 
forces  can  create  a balance  between  supply  and  de-
mand  and  enable  the  necessary  adjustments  to be 
made.  It also  implies  measures  to foster  research  and 
development  and  appropriate  measures  to help  sec-
tors in difficulty,  because  market  forces  are not  able 
to solve  these  questions  in a satisfactory  way. 
3.2. It  must  be borne  in mind  that  in an industrial 
policy  context  particular  stress  is laid  on structural 
rather  than  cyclical  problems  and  that  cyclical  prob-
lems  must  be solved  without  the  creation  of new 
structural  problems.  This  chapter  deals  with  some  of 
the means  to be used,  under  the following  subhead-
ings:  the common  market;  innovation,  research  and 
development;  production  sectors  in difficulties;  criteria 
for granting  aid;  and  sectoral  policy. 
(a) The  common  market 
3.3. The  Treaty  of Rome  must  be regarded  as pro-
viding  the basis  for a common  industrial  policy  since 
its aim  was  to set up a common  market  in which  all 
barriers  to the  free  movement  of persons,  goods, 
services  and  capital  would  gradually  be removed.  The 
aim was,  and  is, to create  equal  conditions  for  all 
firms  and  persons,  partly  in order  to ensure  maxi-
mum  efficiency  of production  in the  interests  of 
Community  consumers  but  also  in order  to ensure 
that Community  firms  are competitive  on the world" 
market. 
3.4. Efforts  have  been  made  to remove  trade  bar-
riers,  but a number  still  exist  and  new  ones  are con-
tinually  appearing.  It is of crucial  importance  for the 
No C 292/20 Official  Journal  of the European  Communities 3.12.  77 
success  of a common  industrial  policy  that  all con-
cerned  take  more  vigorous  steps  to dismantle  such 
barriers  — especially  technical  barriers  to trade  and 
the obstacles  to a free  Community  market  for public 
purchasing.  Action  in these  two  areas  must  be given 
top priority. 
3.5. It  is essential  to avoid  distortions  in competi-
tion within  the  common  market.  For  this  reason  a 
competitive  policy  was  laid  down  in the form  of pro-
visions  on restrictive  agreements,  dominant  market 
positions  and  State  aids  to firms.  These  provisions 
have  subsequently  been  fleshed  out by case  law  and 
administrative  practice. 
3.6. National  industrial  policies  often  rely  to a 
considerable  extent  on State  aids.  This  is liable  to re-
sult in one  Member  State  offloading  its difficulties  on 
to another  and  lead  to an inefficient  distribution  of 
resources  at the level  of the Community. 
3.7. The  Treaty's  competition  rules  provide  for 
Community  surveillance  of such  aids.  Articles  92 and 
94 provide  the Commission  with  considerable  powers 
to monitor  both  industrial  and  non-industrial  national 
aids (prior  vetting  of proposed  aids,  continuing 
review  of existing  aids,  wide  discretionary  powers  to 
endorse  or reject  aids). 
3.8. Article  93 (3) of the  EEC  Treaty  specifically 
requires  the  Member  States  to give  'prior  notice  of 
plans  to grant  or alter  aid',  and  the  Member  States 
generally  abide  by these  rules.  In addition,  the Com-
mission  exercises  the  powers  vested  in it by the 
Treaty  to block  or abolish  national  aids  which  it re-
gards  as incompatible  with  the Community  interest. 
In exercising  these  powers  it is fulfilling  its obliga-
tions  under  the  Treaty,  and  the  Court  of Justice, 
which  can  impose  penalties  in the event  of the Com-
mission  failing  to do its job  properly,  monitors  the 
way in which  the  Commission  fulfils  these  obliga-
tions  (Articles  175  and  215). 
3.9. In  a comment  on the  sixth  report  on EC 
competition  policy,  Mr  Vouel,  member  of the  EC 
Commission  responsible,  made  the  following  com-
ments  on government  aids  to control  inflation  and 
stimulate  employment  and  investments: 
'I will  not  conceal  from  you  the  fact  that  it is 
especially  difficult  to avoid  situations  where,  by 
the use  of national  aids,  the common  interest  is 
relegated  to second  place,  and  where,  for various reasons  and  under  various  pressures,  one  or other 
Member  State  is tempted  to  take  national 
measures  which  are insufficiently  coordinated  with 
those  of the  other  member  countries,  under  the 
illusion  that  it can  solve  its problems  unilaterally. 
No more  dangerous  illusion  could  exist.  One 
must  avoid  the growth  of national  protectionism 
through  aids  to sectors  or firms  in difficulty  or 
through  aids  to export  for trade  within  the Com-
munity;  one  must  also  ensure  that  the  desire  to 
boost  investment  does  not lead  to a race  between 
Member  States  to outbid  each  other  in attracting 
new investment. 
Above  all the  short-term  aspects  of the  present 
business  situation  should  no longer  obscure  the 
fact that  the solution  to the crisis  lies in profound 
changes  in the structure  of EC industry,  whether 
this takes  the form  of rationalization  or of con-
version  to other  activities.  Measures  directed 
simply  at preservation,  which  have  sometimes  had 
to be accepted,  primarily  for social  reasons,  should 
now be replaced  by measures  designed  to encour-
age the necessary  adaptation  of industry,  which 
will also  contribute  to the struggle  against  infla-
tion'. 
3.10.  Article  90 also  states  that  public  undertak-
ings are,  like  all other  concerns,  subject  to the rules 
contained  in the Treaty. 
3.11.  Mr  Vouel  also  made  the  following  remarks 
concerning  public  enterprises: 
'As far as public  enterprises  covered  by Article  90 
are concerned,  the Commission  has  made  clear  in 
its report  the  obligations  incumbent  on  both 
Member  States  and  these  undertakings.  Especially 
in the present  situation  it is essential  that  public 
enterprises  should  be better  integrated  into  the 
common  market,  taking  account  of the particular 
role this  sector  is often  required  to play  in the 
economic  or social  field.  I give  special  attention  to 
the problem  of 'transparency'  in the relationship 
between  these  undertakings  and  their  govern-
ments,  and  to the opening  up of their  purchasing 
to suppliers  throughout  the Community.  After  ex-
plaining  in the sixth  report  our  position  vis-a-vis 
public  undertakings,  I intend  shortly  to have  a 
dialogue  on this  subject  with  the various  interest-
ed parties,  and  I hope  that  this  dialogue  will 
prove  fruitful'. 
3. 12. 77 Official  Journal  of the  European  Communities No C 292/21 
3.12.  To  develop  an appropriate  industrial  policy 
and ensure  that  Community  firms  are not hindered  in 
attaining  their  optimum  size,  tax and  legal  barriers  to 
mergers  and  inter-firm  cooperation  must,  subject  to 
suitable  safeguards,  be removed.  The  Committee  re-
calls  in this  respect  that  on  28 February  1974  it 
adopted  by 74 votes  to 15,  with  25 abstentions,  an 
opinion  on the  proposed  Regulation  on the  control 
of business  concentrations,  and  asks  that  the  Council 
adopt  this  proposal  as soon  as possible. 
3.13.  Rapid,  extensive  changes  in technology  and 
terms  of competition  are  to be expected.  It is fair  to 
say that  small-  and  medium-sized  firms,  thanks  to 
their  great  flexibility,  will  in many  cases  be in a better 
position  than  large  firms  to adjust  quickly  to such 
changes.  The  drive  to ensure  that  firms  can  grow  to 
their  optimum  size  must  not  expose  small-  and  me-
dium-sized  firms  to unreasonable  competition.  Indus-
trial policy  should  always  take  account  of the  future 
development  of existing  small-  and  medium-sized 
firms,  and  help  to make  it possible  to set  up new 
ones.  In the  industrial  policy  context,  competition 
policy  is an important  instrument  for combating  dis-
tortions  in competition  between  firms  of equivalent 
size,  and  for protecting  small-  and  medium-sized  firms 
against  economic  domination. if they  are  to be applied  on a wide  scale,  involve  a 
production  process. 
3.17.  Contributions  to research  come  from  scien-
tific institutes,  universities  and  industry  itself,  but the 
links  between  these  different  spheres  are often  far too 
weak.  Product  development,  however,  is almost  en-
tirely  carried  out  in industry  (in both  large  and  small 
firms)  and  it is industry  that  puts  most  innovations  to 
practical  effect.  Industry  thus  has  a major  interest  in 
the process  of innovation,  for  this  process  is crucial 
to its continued  existence.  But  it is all too  rarely  re-
cognised  how  equally  crucial  the  process  is to society 
as a whole.  Major  efforts  are required  to step  up col-
laboration  between  industry  on the one  hand  and  edu-
cational  and  research  centres  on  the  other,  with 
more  emphasis  in the  latter  on the  practical  applica-
tions  of their  work.  In this  way  further  use  will  be 
made  of the available  talent  so that  new  ideas  — and 
the people  who  provide  them  — contribute  more  in 
practice  to the well-being  of all. 
3.18.  A  high  level  of innovation  is a prerequisite 
for the Community's  continued  economic  growth  and 
prosperity,  for its ability  to adjust  to a rapidly  chang-
ing world.  Industrial  policy  has  a key  role  to play 
here,  by encouraging  R&D  geared  to future  needs. 
(b) Innovation,  research  and  development 
3.14.  With  the  progressive  industrialization  of the 
LDCs,  the  Community  will  have  to rely  increasingly 
on 'knowhow-intensive'  industries  based  on extensive 
R&D  and  innovation.  These  industries  will  have  to 
cope  with  keen  international  competition,  particu-
larly  from  the USA  and  Japan. 3.19.  The  scale  and  importance  of this  task  is such 
as to require  a major  effort,  inter  alia  from  the 
national  and  Community  authorities,  to create  the 
right  conditions  and  climate  for a high  level  of inno-
vation.  The  possible  methods  are  multifarious  — 
training  of research  workers,  grant  of research  funds 
(e.g. through  R&D  contracts),  coordination,  assis-
tance  with  the  dissemination  of research  findings, 
helping  to ensure  that  all sectors  of the  public  are 
alive  to the  relevance  of innovation  to the  common 
good.  The  Committee  could  undertake  a study  with  a 
view  to submitting  practical  proposals  on this  issue. 
3.15.  Success  here  will  require  intensive,  compre-
hensive  research.  Both  pure  and  applied  research  will 
be needed.  The  latter  is carried  out  with  a clear-cut 
aim in mind,  but  the practical  applications  of pure  re-
search  cannot  be determined  in advance. 
3.16.  Innovation,  in its wide  sense,  is not  confined 
to the  industrial  sector.  It can,  for instance,  occur  in 
the health  and  leisure  sectors.  But  most  innovations, 3.20.  In  the countries  which  have  long  been  indus-
trialized,  market  forces  will  largely  be able  to regu-
late supply  and  demand,  provided  of course  that 
competition  exists.  But  as regards  many  new  ad-
vanced  technology  products  which  require  compre-
hensive  and  costly  R&D  and  for  which  the  public 
authorities  are  often  the  main  buyer,  it is common 
practice  for the State  to take  steps  to further  R&D 
and to get production  going.  Such  measures  are  par-
ticularly  common  in the United  States,  Japan  and  the 
individual  Member  States.  This  State  intervention  has 
No C 292/22 Official  Journal  of the European  Communities 3.12.77 
played  a significant  role  and,  together  with  the exis-
tence  of the  big  home  market,  explains  the  United 
States'  dominant  position  as a producer  and  exporter 
of military  equipment,  aircraft  and  data-processing 
equipment. 
3.21.  The  small  scale  of the  individual  Member 
States'  markets  has  meant  that  in many  instances 
their  production  has  not been  and  is still  not able  to 
compete  with  US  production  in particular.  ESC 
Opinion  572/76  adopted  on 26 May  1976,  referred 
to the need  to liberalize  public  purchasing  in order  to 
create  a genuine  common  market  for advanced  tech-
nology  products  and  thus  promote  competitive  pro-
duction.  With  the Community  becoming  increasingly 
dependent  on advanced  technology  products,  much 
closer  cooperation  is called  for between  Community 
industry  and  the Community  authorities. 
3.22.  The  Commission  is continuing  with  its work 
in sectors  such  as aircraft  and  informatics.  It must  be 
emphatically  recommended  that  the  Community 
coordinate  national  aid programmes  and,  where  ap-
propriate,  carry  through  Community  programmes  in 
these  areas. 
3.23.  It  is also  important  that  the public  authori-
ties do not hinder  the operation  of the common  mar-
ket and  hamper  development  of new  products  (for 
instance,  by recourse  to Article  36 of the  EEC 
Treaty). 
3.24.  Public  support  in this  area  frequently  takes 
the form  of R &c D contracts  and  investment  aid. 
Such  support  must  be temporary.  In addition,  Com-
munity  competition  rules  must  be obeyed;  inter  alia 
this is necessary  if small  businesses  are to be able  to 
play a part  in production  and  exports  in this  field. 
The Commission  must  also  effectively  monitor  such 
support  measures. 
(c) Production  sectors  in difficulties 
3.25.  As  regards  firms  in difficulty,  the Committee 
considers  that  the Commission  should  proceed  with 
Community  harmonization  of bankruptcy  law  as 
soon  as possible.  The  Committee  would  also  empha-
size the  need  for  adequate  warning  that  firms  are 
moving  into  difficulties  so that  timely  action  can  be 
taken  to prevent  closures  or, if necessary  to make 
preparations  for winding  the firms  up under  accept-
able conditions. 3.26.  A  major  aim  of industrial  policy,  whether  at 
national  or Community  level,  must  be to create  an 
environment  in which  firms  can  normally  by their 
own force  and  abilities  adjust  to changed  market 
conditions.  No country  can  indefinitely  subsidize  its 
entire  economy,  whether  it be agriculture,  declining 
industries  or potential  growth  industries. 
3.27.  Ahead  of us is a period  of major  change, 
generated  by rapid  technological  advance,  increasing 
competition  and  the appearance  of newcomers  on the 
market.  The  crucial  emphasis  must  therefore  be on 
ensuring  that  all the parties  involved  are as flexible 
and adaptable  as possible. 
3.28.  As  a rule  — subject  to the  existence  of a 
favourable  climate,  including  the availability  of finance 
— firms  should  rely  on self-help  in order  to adjust  to 
changed  circumstances.  Exceptionally,  however,  their 
situation  may  change  so rapidly  and  so extensively 
that it is deemed  natural  or politically  necessary  for 
the national  governments  or the Community  to help 
firms  and  their  employees  on a temporary  basis.  Such 
help will  often  be a component  of regional  policy. 
Retraining  and  further-training  schemes  which  make 
for optimum  re-employment  will  be major  aspects  of 
assistance  to redundant  workers. 
3.29.  Exports  from  non-member  countries  may 
sometimes  be based  on economic  or social  principles 
which  differ  from  those  obtaining  in the Community, 
or which  are  at variance  with  international  agree-
ments  (e.g.  GATT  rules  on dumping).  In such  cases  it 
may be necessary  to operate  special  arrangements, 
taking  the form  of specific  measures  for imports  or 
restraint  on the part  of exporting  countries.  Such  ar-
rangements  may  also  be necessary  in cases  where 
countries  exporting  to the  Community  employ  cer-
tain forms  of support  or take  excessive  de jure  or de 
facto  steps  to protect  their  domestic  markets. 
(d) Criteria  for granting  aid 
3.30.  • To a large  extent  the granting  of aid on the 
basis  of national  schemes  must  be considered  contrary 
to the  proper  functioning  of the  common  market, 
regardless  of the objectives  of the intervention. 
3.31.  The  situation  differs  considerably  between 
the various  Member  States  and  the lack  of coordina-
tion — or convergence  — of the Member  States'  eco-
nomic  and  monetary  policies  is a major  reason  for 
the existence  of national  support  arrangements.  Dur-
ing the  recession,  national  support  arrangements 
3.12.77 Official  Journal  of the  European  Communities No C 292/23 
have  flourished  in the  Community  far  more  than 
hitherto.  Indeed,  in this  respect  the common  market 
has taken  a step  backwards.  As part  of the transition 
to economic  and  monetary  union  there  should,  logi-
cally,  be a switch  from  national  to Community  sup-
port arrangements;  as a minimum,  national  aids 
should  be coordinated  adequately. 
3.32.  The  mere  fact  that  a firm  is big  and  has  a 
large  labour  force  is not sufficient  reason  for provid-
ing support.  In many  cases,  government  assistance 
has gone  to lame  ducks.  Such  assistance  does  not  re-
solve  the  real  problems.  It is futile  to stand  in the 
way of the changes  themselves.  Firms  should  be eligi-
ble only  if they  can  be made  competitive  — either 
within  their  current  sphere  of activity,  or after 
switching  to another  sphere  — within  a reasonably 
short  space  of time. 
3.33.  The  fact  is that  if overcapacity  is to be avoided 
in certain  sectors,  then  steps  must  be taken  to prevent 
pointless  and  unnecessary  competition  between  sup-
port measures  which,  in the final  analysis,  create  little 
employment  and  lead  to the  emasculation  of meas-
ures to develop  the least  well-off  regions  of the Euro-
pean  Community. 
3.34.  Furthermore  the  following  criteria  should  be 
applied  to industrial  support  measures: 
(a) aid  must  be granted  only  where  the market  forces 
are incapable  on their  own  of bringing  about  the 
necessary  adjustments  or where  the market  forces 
would  not  act  quickly  enough  or would  entail 
excessive  social  costs.  Aid  must  be selective,  i.e. it 
must  only  be granted  in respect  of firms  or pro-
ducts  which  are capable  of becoming  competitive 
in due  course; 
(b) aid  must  not  be granted  to prop  up an industry 
except  where  it is designed  to offset  certain  un-
warranted  practices  employed  by  non-member 
countries  or to make  for a degree  of security  of 
supply;  no export  aids  are  permissible  in intra-
Community  trade; 
(c) aid  must  be temporary,  degressive  and  supple-
mentary  so as to provide  firms  with  a strong  in-
centive  to make  the vital  adaptations; 
(d) support  for R&D,  and  for  aids  which  will  en-
able small  firms  to play  their  proper  part,  should 
be treated  more  favourably  — albeit  without 
protecting  them  artificially. 3.35.  Aids  should  be tailored  to objectives  and 
should  be designed  to do the  minimum  damage  to 
intra-Community  competition.  The  scale  of aid  must 
be proportional  to the  severity  of the  problem. 
Member  States  must  grant  equal  aid for problems  of 
equal  magnitude. 
3.36.  Besides  following  the  above  rules  in regard 
to aid  distribution,  it is important  that  the  Com-
munity  should  also  stimulate  and  guide  the granting 
of aid.  The  existence  of the common  market  and  the 
need  to keep  it together  places  a duty  on the  Com-
munity  to play  a more  regulatory  role.  The  criteria 
which  should  be applied  with  regard  to such  positive 
measures  and  intervention  are  in particular  the  fol-
lowing: 
(a) the  number  of jobs  to be created  and  their  quality; 
(b) the  contribution  to the reduction  of regional  dis-
parities; 
(c) the  requirements  of the environment; 
(d) finally,  progress  towards  an  equitables  inter-
national  division  of labour. 
3.37.  While  it is often  difficult  to establish  whether 
the granting  of aid has  been  a precondition  for creat-
ing such  capacity,  it is of vital  importance  for  the 
Community  and  the  Member  States  that  a survey 
be made,  at least  at the overall  level,  of the capacity 
and production  created  by national  support  policies, 
and that  the  Commission  be provided  with  the  data 
needed  for this  purpose. 
3.38.  The  present  survey  of national  support  ar-
rangements,  which  the  Commission  publishes  in its 
annual  report  on competition  policy,  should  be am-
plified  along  these  lines,  with  a particular  eye  to 
bringing  out  the  impact  of aid  for  given  sectors  on 
the development  of the sector  in question. 
(d) Sectoral  policy 
3.39.  In  a world  characterized  by extensive  and 
rapid  change,  structures  must  be flexible  enough  to 
allow  production  to be adapted  and  repatterned. 
3.40.  Community  production  is bound  to contract 
in the sectors  where  LDCs  are exceptionally  competi-
tive. For  a number  of reasons,  complete  cessation  of 
Community  production  in these  sectors  would  be 
both  unacceptable  and  unnecessary.  The  industrials 
No C 292/24  Official  Journal  of the European  Communities  3.12.  77 
zation  and  development  of the LDCs  will  continue  to 
provide  a major  market  for Community  capital  goods 
for a long  time.  The  size  of this  market  will  depend 
on the ability  of the LDCs  to finance  their  industriali-
zation  and  development. 
3.41.  The  future  growth  of Community  industry 
must,  however,  take  place  above  all in the  sectors 
where  needs  make  themselves  felt  most  strongly  and 
in preference  in the  advance  technology  sectors,  on 
the basis  of comprehensive  and  intensive  innovation 
and R Sc D. 
3.42.  The  Committee  would  have  wished  to have 
been  able  to examine  in more  detail  the  changes 
which  have  taken  place  in the major  sectors  of Com-
munity  industry  over  the last  two  decades.  This  was 
not possible  given  the absence  in this  respect  of com-
prehensive  statistics  of a comparable  nature.  The 
Committee  recognizes  the  difficulties  involved  but 
nonetheless  calls  on the  Commission  to make  good 
this statistical  gap,  since  such  statistics  are,  in its 
view,  essential  to any  attempt  at serious  coordination 
of policies.  These  statistics  should  be drawn  up as 
soon  as possible. 
3.43.  Once  a satisfactory  data  base  is available,  it 
should  then  be kept  regularly  up-to-date  so as to pro-
vide a bird's  eye  view  of the  current  situation 
together  with  expected  trends.  This  statistical  data 
should  be made  available  to the many  organizations 
which  take  decisions  with  industrial  policy  implications, 
i.e. not  only  firms  and  their  employees  but  also  to 
public  authorities,  trade  unions,  employers'  organi-
zations,  etc.  Such  up-to-date  statistics  on production 
and employment  in Community  industry,  suitably 
broken  down  and  containing  particulars  of percentage 
increases  and  decreases  (supplemented  by correspond-
ing figures  on imports  and  exports),  can  provide  a 
basis  for meaningful  discussion  of the adjustment  and 
redevelopment  problems  of Community  industry. 
3.44.  Representatives  of the  nine  Governments 
could  have  fruitful  discussions  on industrial  policy 
issues  on the basis  of such  statistics.  Similary,  the Eco-
nomic  and  Social  Committee  could  usefully  hold  reg-
ular discussions  on industrial  policy  issues  with  rep-
resentatives  of the  Commission  and  the  Council,  on 
the basis  of these  statistics.  Such  statistics  and  such 
discussions  could  be of considerable  relevance  to the 
formulation  of the  Commission's  policy  on external 
trade. 
3.45.  Such  statistics  and  discussions  are essential  if 
the Community  is to pursue  forward-looking,  dy-
namic  policies  on industry  and  employment. 3.46.  In  many  cases,  sectoral  analyses  and  discus-
sions  are of limited  value.  Firstly,  because  each  sector 
breaks  down  into  numerous  sub-sectors  which  oper-
ate under  widely  different  conditions.  Secondly  — 
and especially  — because  we are concerned  here  with 
individual  firms.  Each  branch  of economic  activity  in-
cludes  firms  which  can  and  will  grow,  and  others 
which  are  doomed  to stagnate  or decline.  Further-
more,  technological  progress  constantly  leads  to 
shifts  within  branches  of industry. 
3.47.  Finally,  the  coming  process  of adjustment 
and conversion  poses  the question:  who  decides  what 
individual  firms  are to make?  Such  decisions  will  be 
taken  by the  firms  themselves  — especially  in the 
forthcoming  period  of rapid  change,  which  will  re-
quire  prompt  and  flexible  reactions.  Firms'  decisions 
will naturally  be influenced  by decisions  taken  at 
Community  and  national  level. 
4. Conclusions 
4.1. The  Community  is particularly  dependent  on 
trade,  the  international  division  of labour  and  a 
whole  service  of factors  beyond  its borders.  Its devel-
opment  style,  based  as it is on the  consumption  of 
raw materials  and  energy,  makes  it vulnerable  vis-
a-vis  the countries  which  supply  raw  materials. 
4.2. Recent  years  have  seen  extensive  changes  in 
internal  and  external  conditions,  in technology,  in the 
pattern  of trade  between  the Community  and  the rest 
of the  world,  etc.  Further  rapid,  significant  changes 
are on the cards. 
4.3. The  general  development  and  industrialization 
of the LDCs  will  be a major  source  of extensive,  radi-
cal change.  The  process  will  provide  Community  in-
dustry  with  major  new  production  and,  probably, 
employment  opportunities.  But  it will  also  expose 
Community  industry  to greater  and  new  competition 
in many  sectors. 
4.4. If  it is not  domestically  and  internationally 
competitive  and  adaptable  to needs,  Community  in-
dustry  will  be unable  to meet  the  challenge  which 
will be presented  by future  developments.  It is, for in-
stance,  inconceivable  that  lack  of competitiveness  can 
be offset  on a lasting  basis  by special  agreements  with 
LDCs. 
3. 12. 77 Official  Journal  of the  European  Communities No (: 292/2.) 
4.5. The  coming  changes  will  demand  constant, 
extensive  adaptation  and  restructuring  in the  indus-
trialized  countries.  This,  in turn,  will  demand  the 
maximum  possible  flexibility  from  all  parties  in-
volved.  This  flexibility  will  be easiest  to obtain  by en-
suring  that  medium-term  economic  policy  caters  in 
advance  for industrial  change. 
4.6. The  aim  of the common  industrial  policy  must 
be the  creation  of an optimum  environment  for  a 
competitive  industrial  sector. 
4.7. The  following  points  must  also  be made  about 
the common  industrial  policy: 
(a) it must  ensure  that  the  social  side  — and  in par-
ticular  the  purchasing  power  of wages  and  salar-
ies, especially  those  of the lower-paid  — improve 
for all employees  and  that  better  conditions  of 
work,  health  and  safety  obtain  in firms; 
(b) it must  embrace  completion  of the  common  mar-
ket, including  abolition  of technical  barriers  to 
trade,  and  of barriers  to a free  Community  mar-
ket for public  purchasing; 
(c) it must  make  for  creation  of an optimum  envi-
ronment  for  a high  level  of innovation,  research 
and development; 
(d) if new  or ailing  production  sectors  are  granted 
protection  or assistance,  the  common  industrial 
policy  must  spell  out  the common  guiding  princi-
ples; 
(e) it must  be backed  up by an accurate  knowledge 
of the impact  of national  aids  on both  the market 
and the  employment  situation;  this  impact  must 
periodically  be subject  to a critical  examination 
by the Committee; 
(f) it must  be based  on up-to-date  statistics  on pro-
duction,  employment,  export  and  import  trends. 
Such  statistics  are necessary  for a proper  analysis 
and discussion  of industrial  policy  issues;  these 
must  be drawn  up as soon  as possible; 
(g) it must  create  an environment  in which  small  and 
medium  businesses  can  be established  and  in 
which  such  businesses  can  trade  successfully; 
(h) it must  make  for the creation  of an optimum  cli-
mate  for  industrial  investment  and  its financing, 
by taking  advantage  of progress  towards  the coordination  of economic,  monetary,  and  <ax 
policies  in the Community; 
(i) it must  envisage  suitable  arrangements  for mobil-
izing,  at Community  level,  the  resources  needed 
for investments; 
(j) it must  align  the  laws  on bankruptcy  at Com-
munity  level.  Consideration  should  be given  to 
the possibility  of introducing  throughout  the 
EEC  an early-warning  system  for detecting  ailing 
firms; 
(k) it must  — on  the  basis  of reasonable  growth 
rates  and  reasonably  stable  economic  and  mone-
tary conditions  in the  Community  and  the  world 
at large  — contribute  to the  reduction  ol unem-
ployment; 
(1) it must  put  forward  concrete  measures  to encour-
age a shift  of emphasis  towards  viable  firms  that 
guarantee: 
— a high  level  of good  quality  jobs, 
— saving  in raw  materials  and  energy, 
— the  satisfaction  of real  individual  and  collec-
tive needs  through  the  production  ot high 
quality  goods  and  the  provision  of high-
quality  services  at the  lowest  possible  prices, 
— the  production  of  non-polluting  products 
which  are  suitable  for  recycling  and  discour-
age waste; 
(m) it must  be backed  up by an external  trade  policy 
comprising  for  instance  uniform  export-credit 
guarantees,  guarantees  for  investment  in LDCs 
and reliable  access  to essential  supplies  as well  as 
temporary  protection  measures  for sectors  suffer-
ing from  abnormal  competition; 
(n) equally  the  common  industrial  policy  must  fit in 
with  the  Community's  external  policies  and  con-
tribute  actively  to the  process  of adjustment  and 
innovation  which  alone  can  make  the  Com-
munity  a healthy  and  reliable  partner  in world 
trade. 
4.8. A  common  industrial  policy  which  adopts  a 
dynamic  rather  than  a passive  approach  to coming 
developments,  and  which  seeks  to tailor  economic 
structures  to present  circumstances  and  future  needs, 
will be instrumental  in reducing  and  eliminating  un-
employment.  The  Community  will  lose  out  in the 
No C 292/26 Official  Journal  of the  European  Communities 3.12.  77 
world;  if this  happens  the plight  of the  Community's 
unemployed  will  be even  worse  and  the  prospects  of 
those  who  have  jobs  will  be still  more  uncertain. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
APPENDIX 
to the opinion  of the Economic  and  Social  Committee 
Rejected  Amendments 
The following  amendments,  were  rejected  during  the discussions. 
Item 3.1. 
Amend  to read  as follows: 
'An industrial  policy  involves  creating  a framework,  such  as the common  market.  As market 
forces  alone  are proving  unable  to ensure  a balance  between  supply  and  demand  or effect 
needed  change  in a responsible  manner,  an industrial  policy  must  take  over  and  provide 
the necessary  framework,  direction  and  means  for a good  management  of the  industrial 
sector.  The  industrial  policy  must  contain  the various  instruments  and  measures  needed 
to create  a sound  industrial  structure'. 
Voting: 
For: 35 
Against:  54 
Abstentions:  6 
Item 3.17. 
Add the following: 
'Therefore,  there  have  to be maximum  safeguards  that  socially  useful  research  is being 
done.  To judge  whether  this  is the case,  full  information  needs  to be available  about  the 
collaboration  just  referred  to. Such  collaboration  must  also  be subject  to supervision  on a 
political  level'. 
Voting: 
For: 27 
Against:  56 
Abstentions:  7 
Item 3.38. 
Amend  to read  as follows: 
'In a world  characterized  by extensive  and  rapid  change,  structures  must  be such  that 
production  can  be adapted  and  repatterned.  Industrial  change  must  be incorporated  in 
medium-term  planning,  so that  it is a controlled,  smooth  process,  with  arrangements  to forthcoming  adjustment  process  if it pursues  an in-
dustrial  policy  which  seeks  to preserve  the status  quo, 
rather  than  adjust  the industrial  sector  to a changing 
Done  at Brussels,  28 September  1977. 
3.12.77 Official  Journal  of the  European  Communities No C 292/27 
ensure  that  the public  authorities  and  employees  have  a big enough  say in the operation. 
The Section  thinks  that  a number  of basic  points  should  be observed  here: 
(a) democracy  should  be stepped  up in the affected  firms  so that  employees  and  their 
representatives  have  a major  say  in the  key  business  decisions,  especially  those 
affecting  jobs; 
(b) medium-term  planning  for each  relevant  sector  in question  within  a structural  policy 
for that  sector,  and  bodies  through  which  the work  force  of the sector  are involved  in 
this process; 
(c) provision  of sufficient  relevant  information  and  on the basis  of that  information  the 
carrying  out of checks  on (i) what  is produced,  where  it is produced  and  the  con-
ditions  under  which  it is produced  and  (ii) the implications  for the number  and  type 
of jobs'. 
Voting: 
For: 28 
Against:  53 
Abstentions:  8 
Add the following  new  paragraph  after  paragraph  3.3.8.: 
'The Committee  thinks  that  the Community  should  rapidly  expand  structural  policy  for 
individual  sectors.  In developing  this  policy,  the  following  basic  situations  can  be 
distinguished: 
— industries  with  good  growth  prospects.  In view  of the direct  or indirect  contribution 
they can  make  to the  overall  growth  rate,  consideration  might  be given  to special 
encouragement  for expansion  of such  industries, 
— industries  in general  difficulty  for structural  reasons,  and  because  of that  with  in-
sufficient  profitability, 
— profitable  industries  (probably)  needing  structural  change. 
The situation  in the individual  industries  should  be monitored  by means  of structural 
analyses  and  a regular  flow  of information  about  expected  and  forthcoming  changes  (e. g. 
investment  of a certain  size)'. 
Voting: 
For: 35 
Against:  52 
Abstentions:  7 
Item  3.4S. 
Replace  by the following: 
'For the discussions  that  are needed  between  the different  interest  groups,  it is necessary 
that the existing  joint  committees  should  function  better  and  that  new  joint  committees 
should  be set up for other  sectors,  without  jeopardizing  the autonomy  of the parties  in 
question.  These  committees  must  play  a role  in consultation  on medium-term  trends.  A 
greater  flow  of information  from  businesses  is crucial  to the more  effective  functioning 
of the joint  committees.  The  role  and  tasks  of the committees  would  therefore  have  to be 
defined  in greater  detail.  From  the organizational  angle,  the committees  could  be accommo-
dated  at the Economic  and  Social  Committee  in view  of the fact  that  the Committee  has 
its own  secretariat  and its own  budget'. 
Voting: 
For: 34 
Against:  53 
Abstentions:  6 
Note 
This is the same  passage  as adopted  by the Committee  in its opinion  on the social  situation 
(June  1977). 
No C 292/28 Official  Journal  of the  European  Communities 3. 12.  77 
Reasons 
The general  aim  of these  amendments  is to fill out the opinion  with  a few  essential  points.  A 
proper  balance  needs  to be struck  between  the economic  forces. 
The following  items  in the Section  opinion  were  amended  or supplemented  as a result  of the 
adoption  of amendments  during  the Committee's  discussion. 
Item 3.20. 
Insert  the following  in the final  sentence: 
'..., together  with  the existence  of the big home  market,'. 
Voting: 
No votes  against 
20 abstentions 
New item  3.36. 
Voting: 
For: 52 
Against:  13 
Abstentions:  23 
Item 4.7. 
Insert  a further  indent. 
Voting: 
For: 52 
Against:  17 
Abstentions:  25