mm COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 22.03.1995 
COM(95)87 final 
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IS' COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
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i! ACTION PROGRAMME AND TIMETABLE 
«^ * w *% vît B FOR IMPLEMENTATION OF THE ACTION 
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figs AN INDUSTRIAL COMPETITIVENESS POLICY 
FOR THE EUROPEAN UNION 
it * EUROPEAN COMMISSION 
ACTION PROGRAMME AND TIMETABLE 
FOR IMPLEMENTATION OF THE ACTION 
ANNOUNCED IN THE COMMUNICATION ON 
AN INDUSTRIAL COMPETITIVENESS POLICY 
FOR THE EUROPEAN UNION 
COMMUNICATION TO THE COUNCIL, PARLIAMENT, THE ECONOMIC AND 
SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 
Annexes: 1. Proposal for a Council Decision on implementation of a Community ac­
tion programme to strengthen the competitiveness of European industry 
2. Action programme and timetable for an industrial competitiveness policy 
for the European Union 
Rue de la Loi, 200 B-1049 Brussels, Belgium 
9 direct line 32-2-295.80.57 exchange 32-2-299.11.11 . @ 32-2-296.30.28 
Telex COMEU B.21877 - Telegraphic Address COMEUR Brussels 
./I* 
a In its resolution of 8 November 1994 on the strengthening of the competitiveness 
of Community industry the Council called on the Commission "to submit to it... a 
schedule for the drafting of appropriate proposals formalising the initiatives an­
nounced by the Commission in its communication on "An industrial competitive­
ness policy for the European Union" in the areas of intangible investments, indus­
trial co-operation, competition and modernisation of the role of public au­
thorities. " 
D In response to this request, the Commission hereby submits: 
— its priorities for action to implement its industrial competitiveness policy; 
— a draft proposal for a Council Decision on implementation of a Community 
action programme to strengthen the competitiveness of European industry; 
— an action programme and timetable for an industrial competitiveness policy 
for the European Union. 
1. PRIORITIES FOR ACTION 
D The Treaty on European Union calls on the Community and the Member States, 
acting in line with the subsidiarity principle, to ensure that the conditions neces­
sary for the competitiveness of the Community's industry exist. 
• To this end, the Commission submitted the communication on "An industrial 
competitiveness policy for the European Union" (COM(94)319, 
14 September 1994). 
This communication was based on the basic principles of an industrial policy for 
the Community defined in the 1990 Commission communication on "Industrial 
policy in an open and competitive environment", the conclusions of which were 
fully approved by the Council. 
It must be remembered that: 
— although it is up to businesses to make sure that they are competitive on the 
market, it is up to the public authorities to create an environment propitious 
for strengthening industrial competitiveness; 
— as provided for by Article 130 of the Treaty on European Union, the Union 
and the Member States share responsibility for implementation of an industrial 
competitiveness policy in which industry too must be closely involved. 
It should also be remembered that there is an increasingly direct correlation be­
tween economic and social cohesion and industrial and economic performance 
which must be taken account of. It must be ensured that industrial competitive­
ness and economic and social cohesion each add strength to each other. Greater 
economic and social cohesion can generate externalities which make the private 
sector more efficient by improving infrastructure and optimising the general level 
of investment. Future competitiveness must rely less upon economies of scale and 
large series and more upon the capacity to assimilate information and to ensure its 
appropriate dissemination, thereby offering the possibility of decentralised in­
dustrial growth. 
The Commission considers four objectives particularly important in industrial 
competitiveness policy: 
— development ofthe internal market; 
— better taking industry's needs into account in research policy; 
— establishment ofthe information society; 
— promotion of industrial co-operation. 
— Development of the internal market 
The internal market completed in 1993 is the Union's greatest contribution to 
strengthening the competitiveness of European industry. The top priorities now 
for the Union are, on the one side, to solve problems still existing in some specific 
areas, and on the other side, to ensure that the single market operates effectively 
so that business and consumers can reap its full benefit. This means completing 
the legislative framework, ensuring its practical application and improving the 
business environment. Single market liberalisation must also be extended to those 
sectors where it has so far had little impact. Likewise company law is one domain 
where the progress remains insufficient. 
Within this framework, the rapid completion of the internal energy market 
constitutes an essential factor, because, in particular, of the importance of energy 
for the competitiveness of European industry. In the field of energy however the 
internal market is not yet completed. The inclusion of energy in the internal 
market by the way of more open and competitive behaviours is at the centre ofthe 
Commission action in the gas and electricity sectors (cf. Commission 
communication on the completion of the internal electricity market 
(COM(95)80)). This objective has been reaffirmed many times by the Council and 
the European Parliament. 
The Union and the Member States play an essential role in this process, given 
their responsibility for the regulatory environment, where the right balance must 
be struck between Community and national legislation and to ensure its effective 
and balanced implementation. 
To bring the internal market into operation, the Commission has adopted an ap­
proach - known as "new approach" - which goes no further than to impose com­
pliance with requirements in the public interest, for example to protect health or 
consumer safety, but leaves it to industry to choose the technical means of 
achieving this, in particular by the way of standardisation. It is this choice of 
means which enables industry to demonstrate its competitiveness. If this approach 
is to be fully effective, the Member States must refrain from filling the room for 
manoeuvre left to industry with national regulations. According to this approach, 
at Community level, the harmonisation of national legislation is to be continued, 
where necessary, as well as the application of the mutual recognition principle. 
This will prevent groundless conflicts concerning differences in legislation 
between Member States. Furthermore, the Commission will continue to exercise 
its monitoring powers to the benefit ofthe Union, its industry and its citizens. 
— Better taking industry rs needs into account in research policy 
Innovation plays a decisive role in improving awareness of market trends and, 
hence, industrial competitiveness. If research results are to be used for the benefit 
of industrial competitiveness, dissemination, transfer and uptake ofthe results by 
industry must be improved. 
The Union, the Member States and industry too must help to step up research and 
training to technologies efforts in order to put businesses in a better position to 
keep ahead of technological changes and the markets and to apply the appropriate 
strategies. 
To achieve this, the Commission plans a series of joint projects in the interest of 
industry designed not only to bring research closer to industry's concerns, particu­
larly on high growth labour intensive markets, but also to strengthen the synergies 
and co-ordination with the efforts made by the Member States, the Union and in­
dustry itself. At the same time they will make the Community's technological 
achievements more visible to the general public. 
The Commission is also preparing a communication on closer co-ordination be­
tween research and industry and a green paper on promotion of innovation poli­
cies in the European Union. It prepares also according to the terms of Article 
130P ofthe Treaty an annual report on the execution of Community's research ac­
tivities. 
— Establishment ofthe information society 
The establishment ofthe information society will have a decisive effect on all in­
dustrial activity in the Union. Its rapid emergence makes European industry's ca­
pacity to extend and manage knowledge more important than ever. 
The conditions for access to information, to the networks carrying it and to servi­
ces making it easier to use are playing a growing role in industrial competitive­
ness. The availability, quality and, above all, lowering of the cost of telecommu­
nications infrastructure and services are now key factors in the European Union's 
industrial competitiveness. This is why it is necessary to accelerate the present 
process of liberalisation of the telecommunications sector by the way of opening 
to competition the infrastructures and services which are still in a monopoly 
situation. 
In this context it is important to mention the role of workers' skills. Therefore it is 
necessary to accompany the development of the information society with that of 
the education and training society. 
The emergence of the information society is creating new markets generating 
large numbers of jobs. Industry in the European Union, particularly the telecom­
munications industry, has proved its capacity to design and manufacture the tools 
for the information society of the future. Increasingly, development of the con­
tents and ofthe services for stimulating the demand and use of information is be­
coming the crucial question. 
The Commission has made proposals already in the communication entitled 
"Europe's way to the information society - an action plan", the follow-up to the 
May 1994 report on "Europe and the global information society" by the high level 
working party chaired by Mr Bangemann. 
The measures set out in the action plan cover the regulatory and legal aspects of 
communications in Europe, including measures to provide trans-European net­
works, contents, services and applications, protection of privacy and personal 
data, and a series of works on social and cultural issues. 
To capitalise fully on the opportunities opened up by the information society and 
avoid some of the risks, the Commission has taken a series of measures. Two fo­
rums have been established - one on the information society to address the chal­
lenges posed by the arrival of the information society, the other consisting of a 
High Level Group of Experts to examine the social and societal impact. 
The High Level Expert Group will be mandated to prepare a report or reports on 
the social and societal aspects ofthe Information Society, particularly with refer­
ence to six priority themes mentioned in the Commission's report for the Essen 
5-
European Council "The Information Society in Europe: A first Assessment since 
Corfu". 
In February 1995 the Commission hosted a major event in Brussels in the form of 
the G7 Ministerial Conference on key issues raised by the information society: the 
regulatory framework including rules for protection of privacy and personal data, 
competition policy, the development of information networks and the social, so­
cietal and cultural aspects ofthe information society. 
The willingness to associate developing countries to the establishment of the in­
formation society and to allow them to benefit fully from it has been declared at 
the G7 Ministerial Conference. In order to fulfil this commitment and as a re­
sponse to the proposal of South-African Vice-President Mbeki, the Commission 
intends to contribute to the organisation of a conference on the information soci­
ety with the developing world. 
The Commission is also drafting a document on the method which it intends to 
adopt to co-ordinate the action to develop new services and new applications, par­
ticularly in the context of the 4th framework programme for R&D activities 
(1994-1998) and ofthe trans-European network programme. 
— Promotion of industrial co-operation 
The completion of the internal market is being accompanied by closer industrial 
co-operation within the European Union, for which the public authorities must 
create the right climate, in conformity with competition rules. 
The Union must therefore endeavour to remove the obstacles to industrial co-op­
eration while developing tools for industrial co-operation. This is a sine qua non 
if industry is to reap the full benefit ofthe internal market. 
At the same time the LEONARDO programme helps to develop co-operation 
between businesses and other interested sectors in the area of professional train­
ing. 
Development of industrial co-operation with the rest of the world is one plank of 
the Union's strategy to strengthen European industry's presence on expanding 
markets and to make it easier for certain non-Union countries to convert to a mar­
ket economy. 
To help European businesses improve their position on the markets of the future, 
the Commission will, in particular, establish a data base on the obstacles to proper 
operation ofthe markets. 
To promote such co-operation, every possible industrial, economic, commercial 
and investment link and transfers of know-how to third countries must be 
strengthened to help integrate these countries fully in the world economy. The re­
cently adopted Commission communication on industrial co-operation with 
Eastern Europe addresses these issues with particular reference to these countries. 
An industrial competitiveness policy in the European Union has application, as 
appropriate, across all sectors and all sizes of business. However, recognising the 
important role that SMEs are likely to play in economic growth and the creation 
of jobs within the European Union, the Commission announced proposals for an 
Integrated Programme in favour of SMEs and the Craft Sector (COM(94) 207). 
This programme seeks to take account of the special needs of SMEs and to put 
into concrete form the objectives outlined in the Commission's December 1993 
White Paper. The Integrated Programme proposes measures to promote Concerted 
Actions between Member States to create a better enterprise environment, to im­
prove support measures for SMEs and to encourage greater use of the services 
offered to enterprises which exist at national or regional level. 
This programme received the Council's firm support under the terms of a Resolu­
tion of 10th October 1994. The implementation of operational initiatives and 
measures within the Integrated Programme in Favour of SMEs are already being 
carried out in co-operation with Member States. 
2. DRAFT PROPOSAL FOR A COUNCIL DECISION ON IMPLE­
MENTATION OF A COMMUNITY ACTION PROGRAMME TO 
STRENGTHEN THE COMPETITIVENESS OF EUROPEAN INDUSTRY 
. (ANNEXE I) 
The draft proposal for a Council Decision on implementation of a Community 
action programme to strengthen the competitiveness of European industry covers 
the action corresponding to the priorities highlighted in the Council resolution and 
requiring a formal decision by the Council to clarify and ensure implementation 
by the Commission. 
The action programme and the draft proposal relate to measures which can be 
taken on the basis of existing resources. If these resources were to appear insuffi­
cient, the Commission would present a further draft proposal. 
3. ACTION PROGRAMME AND TIMETABLE FOR AN INDUSTRIAL 
COMPETITIVENESS POLICY FOR THE EUROPEAN UNION 
(ANNEXE 2) 
The Commission communication on "An industrial competitiveness policy for the 
European Union" identified the Commission's priorities for action and stressed 
that the Commission was willing immediately to take the measures for which it 
was directly responsible. 
The action programme for a competitiveness policy for the European Union inclu­
des action to update the existing Community policies, moves to start initiatives re­
quiring no new formal decisions. 
This is the case, in particular, with most of the follow-up measures mentioned in 
the report from the Commission on implementation ofthe Council resolutions and 
conclusions on industrial policy. 
ANNEX 1 
Draft 
Proposal for a Council Decision 
on implementation of a Community action programme 
to strengthen the competitiveness of European industry 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Union, and in particular Arti­
cle 130 §3 thereof, 
Having regard to the proposal from the Commission,1 
Having regard to the opinion from the European Parliament,2 
Having regard to the opinion ofthe Economic and Social Committee,3 
Having regard to the opinion ofthe Committee ofthe Regions ,4 
1. Whereas the heads of state or government meeting in the European Council on 10 and 
11 December 1993 in Brussels endorsed the White Paper on competitiveness, growth 
and employment5 as the terms of reference for action by the European Union and its 
Member States, supporting an approach to industrial development based on global 
competitiveness, a factor generating growth and employment; 
2. Whereas on 22 April 1994 the Council adopted conclusions on improving the com­
petitiveness of European industry, based on the White Paper on competitiveness* 
growth and employment; 
3. Whereas on 8 November 1994 the Council adopted the Resolution on the strengthen­
ing ofthe competitiveness of Community industry,6 which stressed, in particular, that 
a competitive and innovatory industry in the Community is a prerequisite for lasting 
economic growth and the creation of new jobs; whereas the framework conditions for 
competitiveness and competition must be improved so that the European Union re­
mains an attractive location for business leading to the creation of new firms and new 
jobs; 
1 OJNo 
2 OJNo ,p. 
P-
3 OJNo p. 
4 OJNo........ p. 
COM(93)700final, 5 December 1993. 
6 OJNo C 343, 6.12.1994, p. 1 
-A/1-
ANNEXE I 
4. Whereas on~. the European Parliament adopted a Resolution on...; 
5. Whereas the rapid completion ofthe internal energy market constitutes a fundamental 
element for a competitive European industry; 
6. Whereas industrial production and services increasingly complement each other; 
whereas, consequently, a competitive industrial sector is indispensable in order fully 
to exploit the possibilities of job creation in the service sector, and vice versa; 
7. Whereas economic and social cohesion and the competitiveness of European industry 
are linked in that a competitive European industry can contribute to cohesion and co­
hesion can provide industry with the benefits of a wider commercial and geographic 
base; 
8. Whereas, notwithstanding the important role of public authorities, the maintenance 
and improvement of industrial competitiveness is primarily the task of business; 
9. Whereas accelerated technical progress, increasing globalization of markets, intensify 
cation of international competition and the increasing importance of environmental 
protection require greater efforts from all those with responsibility in the economic, 
political and social field in order to facilitate the necessary structural adjustments, in­
ter alia to ensure a sustainable development, and to create new jobs; 
10. Whereas it is necessary to avoid distortions of competition and to promote the open­
ing up of markets both within and outside the Community; 
11. Whereas it is particularly urgent that the Community and the Member States, within 
the framework of their respective powers, adopt practical measures to strengthen the 
competitiveness of industry, taking account ofthe new challenges which it faces; 
A/2-
AO 
ANNEX 1 
HAS ADOPTED THIS DECISION: 
Article 1 
The action programme set out in the annexe is hereby adopted to strengthen the competi­
tiveness of European industry which is a prerequisite for lasting economic growth and the 
creation of new jobs and contributes to economic and social cohesion, with the following 
objectives: 
A. to eliminate unnecessary legal and administrative constraints for enterprises, par­
ticularly small and medium-sized enterprises; 
B. to ensure fair competition; 
C. to strengthen industrial co-operation; 
D. to promote intangible competitiveness factors. 
Article 2 
The Commission shall send the Council, the European Parliament, the Economic and So­
cial Committee and the Committee ofthe Regions a report evaluating the results obtained 
together with, where necessary, appropriate proposals. 
Done at Brussels, 
A/3-
ANNEX 1 
Annex 
ACTION PROGRAMME TO STRENGTHEN THE 
INDUSTRIAL COMPETITIVENESS OF THE EUROPEAN UNION 
D annual report - inter alia, on the basis ofthe information obtained for the panorama of 
European industry - on the development ofthe competitiveness of European industry 
D examination of the issue of relocation of industry and services and report on the re­
sults to the Directors General of Industry 
D establishment, in collaboration with industry and with national administrations, of a 
database on the obstacles faced by European companies in third countries, market by 
market 
• implementation of the initiatives announced in the communication on "An industrial 
competitiveness policy for the European Union" in the areas of: 
— intangible investments, 
— industrial co-operation, 
— competition 
— modernisation ofthe role of public authorities 
A/4-
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ANNEX 2 
ACTION PROGRAMME AND TIMETABLE 
FOR AN INDUSTRIAL COMPETITIVENESS 
POLICY FOR THE EUROPEAN UNION 
Rue de la Loi, 200 B-1049 Brussels, Belgium 
9 direct line 32-2-295.80.57 exchange 32-2-299.11.11 . Q± 32-2-296.30.28 
Telex COMEU B.21877 - Telegraphic Address COMEUR Brussels 
/?S 
ANNEX2 
D The tables set out below show the Commission's action programme for implemen­
tation ofthe action announced in the September 1994 communication on an in­
dustrial competitiveness policy for the European Union. 
They show the objectives, the action planned and an approximate timetable for ea­
ch ofthe four priorities set in the Commission communication. 
hi most cases, studies and analyses will be required before a start can be made 
with the action to attain the above-mentioned objectives. 
D As regards the nature of the action to be taken, the action programme contains 
measures of various types: 
— action already under way or which can be started in the near future and which 
could make an immediate contribution to the industrial competitiveness ofthe 
European Union, particularly: 
• organisation of round tables, seminars, forums and workshops on general 
and specific sectoral issues; 
• contributions from the common policies to help to improve industrial 
competitiveness, particularly from the cohesion, training, research, inno­
vation, trade, competition and co-operation with third countries policies; 
• the establishment of pilot programmes on industrial co-operation; 
• the establishment of a database on the obstacles to proper operation of the 
markets and of an industrial assessment mechanism; 
• establishment of a Competitiveness Advisory Group. 
— action requiring more detailed political guidelines so that a start can be made 
in due course, particularly: 
• draft communications on the promotion of intangible investment, on the 
promotion of quality, on industrial co-operation with Eastern Europe and 
on direct foreign investment; 
• draft white papers and green papers on the legal instruments for industrial 
co-operation, on energy policy and on promotion of innovation. 
— action requiring the adoption of proposals for legislation before it can take ef­
fect, particularly proposals for Directives, Regulations and Recommendations 
designed: 
-B/2 
ANNEX2 
• to promote research, the internal energy market, European investment 
overseas and electronic trading; 
• to remove the legal and fiscal obstacles to industrial co-operation; 
• to modernise the role played by the public authorities in industry. 
a This action programme must take account of the subsidiarity principle. Conse­
quently, a distinction must be drawn between the action to be taken directly by the 
Commission, the measures requiring close co-ordination and collaboration with 
the national authorities and the steps to be taken jointly by the Commission and 
the national authorities in close co-operation with industry. Such an approach will 
allow more effective action to improve industrial competitiveness and make fuller 
use of the expertise of the national authorities and of industry to supplement the 
Commission's limited human and budgetary resources. 
Naturally, industry will be directly involved in practical action such as round ta­
bles, tHe pilot programmes on industrial co-operation, the database on the obsta­
cles to proper operation ofthe markets and the industrial assessment mechanism. 
The Member States could be involved in the action programme, not only via the 
meetings of the senior officials on industry but also in new forms of meetings be­
tween the national and Community administrations, such as workshops. 
The dialogue with the Member States would focus on co-ordination and definition 
of research policies, commercial policy instruments, the establishment of a data­
base on opportunities for industrial co-operation and definition ofthe specific pro­
grammes on objective 4. 
• The Commission also intends to take account of the approach in this action pro­
gramme when drafting its communications concerning specific sectors of indus­
try. 
It has done so already in its communication on strengthening the competitiveness 
of the machinery construction industry. 
a Certain measures will take priority, particularly: 
— the establishment of Task Forces to start joint projects in the interest of indus­
try and for action on human resources; 
• —' the establishment of a database on the obstacles to proper operation of the 
markets and of an industrial assessment mechanism; 
— the examination of the effects ofthe Community and national legislation on 
competitiveness and employment by the MOLITOR Working Party of inde-
B/3-
ANNEX 2 
pendent experts on the. simplification of legislation and administrative proce­
dures; 
— the establishment of an Advisory Group on Competitiveness. 
-B/4-
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
1. TO PROMOTE INTANGIBLE INVESTMENT 
a. 
b. promotion of intangible in­
vestment (vocational train­
ing, organisation of work, 
new technologies and quali­
ty) in the general support for 
investment; examination of 
ways of taking fuller account 
of intangible assets, particu­
larly in the context of taxa­
tion 
stepping-up of research: draft communication on the promotion of 
intangible investment 
action on human resources 
further support from the Structural Funds 
to improve the business environment and 
business co-operation and to support in­
tangible investment by businesses 1996 
1995 
1994/99 
-B/5 
/?? 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
- by proceeding with further 
action to take fuller account 
ofthe needs ofthe market in 
R&TD policy 
- by modernising the appro­
aches in order to produce 
more effective industrial 
spin-offs from research establishment of task forces to start joint 
projects in the interest of industry (car of 
tomorrow, education software and multi­
media, new generation aircraft, vaccines 
for viral diseases, future train) 
meetings ofthe Directors General for in­
dustry and research to improve the chan­
nels for co-ordination with and between 
the Member States and industry for 
definition ofthe eligibility criteria, selec­
tion and development of projects 
involvement of industrialists in the mid­
term review ofthe fourth framework pro­
gramme of RTD activities, in particular 
regarding the decision on the remaining 
700 MECU, and in preparation ofthe fifth 
framework programme 
draft communication on closer co-ordina­
tion between research and industry 
document on the methodology to adopt to 
co-ordinate the action to develop new ser­
vices and new applications connected with 
the information society, particularly in the 
context ofthe 4th framework R&D pro­
gramme and ofthe trans-European net­
works programme 
implementation of programmes to apply 
research results 
Green Paper on promotion of innovation 
policies in the European Union 
promotion of a financial environment fa­
vourable to innovation (capital market for 
growth industries, risk-capital, etc.) 1995 
1995 
1996 
1995 
1995 
1995 
-B/6-
/ll 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
c. 
d. 
e. 
f. 
g-
i. - by facilitating the estab­
lishment of consortia of 
European companies 
promotion of quality 
fuller integration of vocatio­
nal training schemes in other 
policies 
creation of a legal environ­
ment conducive to research 
development of clean tech­
nologies and economic in­
centives 
introduction of new ways of 
organising work and impro­
vement ofthe fiscal envi­
ronment, particularly for 
small firms 
improvement ofthe dialogue 
between the two sides of in­
dustry start of joint projects in the interest of in­
dustry 
draft communication on the stimulation of 
applications by means of partnerships: to­
wards a new approach and new methodol­
ogy 
draft communication on European quality 
promotion policy, including a strategy and 
à European programme to promote quality 
implementation of LEONARDO and SME 
programmes 
review ofthe code on aid to research 
consideration ofthe need to propose a 
Directive to create a legal environment 
conducive to research 
simplification of type-contract for the re­
search contracts under the 4th framework 
programme of RTD activities 
further implementation ofthe fifth action 
programme on the environment 
implementation ofthe environmental sec­
tion ofthe fourth framework RTD pro­
gramme 
involvement of management and labour in 
implementation of objective 4 and ofthe 
ADAPT and LEONARDO programmes 
association of social partners in the 
framework of social dialogue to initiatives 
impacting on employment (at inter-pro­
fessional and sectoral levels) and on new 
forms of work organisation in pro­
gress 
1995 
in pro­
gress 
1995 
in pro­
gress 
1995 
in pro­
gress 
-B/7 
•11 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
j- rational use of statistics creation of a database of sectoral indica­
tors on business performance and com­
petitiveness factors in the European Union 
study on the use of administrative data for 
statistical purposes 1995 
2. TO DEVELOP INDUSTRIAL CO-OPERATION 
a. 
1. 
2. 
3. 
4. 
5. 
6. general measures: 
identification and removal of 
legal and fiscal obstacles to 
industrial co-operation 
development of industrial 
co-operation tools 
support for the development 
of trans-national initiatives 
targeted on growth markets 
using Structural Funds 
recourse to the Working 
Party ofthe Heads of In­
dustrial Policy Departments 
to facilitate industrial co­
operation operations and ef­
forts to find information and 
partners 
development of a coherent 
legal approach towards a 
communal and efficient pro­
motion of European foreign 
investment 
closer technological co-op­
eration possible drafting of proposals for legisla­
tion to remove the principal legal and fis­
cal obstacles to industrial co-operation 
Green Paper on the legal instruments for 
industrial co-operation at Community 
level 
elaboration of projects under the Com­
munity Initiative programmes ADAPT 
and EMPLOYMENT 
meetings ofthe senior officials on indus­
try with a view to establishment of a data­
base on opportunities for industrial co­
operation 
possible drafting of proposals for legisla­
tion to promote European foreign invest­
ment, in particular on the basis ofthe 
standards for the protection of investments 
in ACP countries 
use of ECIP (European Community In­
vestment Partners) programme 
promotion of scientific and technological 
co-operation under the fourth framework 
R&D programme 
preparation of a conference on the infor­
mation society with the developing world 1996 
1995 
1994/99 
1996 
1996 
in pro­
gress 
in pro­
gress 
B/8-
ls> 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
b. Central and Eastern Eu­
rope and Commonwealth of 
Independent States communication on industrial co-operation 
with Eastern Europe 
seminars, forums and round tables on 
sectoral issues with the countries of Cen­
tral and Eastern Europe and Russia 
implementation - for already associated 
countries - of measures ofthe pre-acces-
sion strategy adopted at the European 
Summit of Essen (White Paper on the 
rules relating to the internal market, 
structured dialogue, etc.) 
negotiations of association agreements 
with the 3 Baltic Republics and Slovenia 1995 
exploring solutions similar 
to partial guarantees for in­
vestments economic analysis of guarantees for inves­
tments for the countries of Central and 
Eastern Europe with association agree­
ments 1995 
support for investment and 
the private sector establishment of a Business Advisory 
Council (follow-up to Essen) 1995 
assistance with development of services to 
support industry (for example, briefing 
session on the activities ofthe agencies to 
promote investment in the Visegrad 
countries for bodies providing support for 
industry in the Community) 
establishment or reactivation of sectoral 
liaison committees with the countries of 
Central and Eastern Europe, Russia and 
Ukraine in pro­
gress 
support for standardisation 
and certification PHARE technical assistance programmes 
on standardisation and certification, parti­
cularly to implement the Europe agree­
ments 
setting-up of j oint working groups 
(Poland, Hungary, Czech Republic) in pro­
gress 
-B/9 
ac 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
4. 
5. 
c. 
1. 
2. 
d. 
1. 
2. expertise in international fi­
nancial engineering and off­
set activities 
support for harnessing po­
tential energy resources 
Latin American and Medi­
terranean countries 
participation in the fourth 
framework programme on 
R&D activities and in the 
developments connected 
with the information society 
establishment of networks of 
businesses 
Asian countries 
co-operation programmes 
scientific and technological 
co-operation schemes to be defined 
study and seminars, under the European 
Energy Charter, to provide assistance with 
drafting energy legislation (PHARE pro­
gramme) 
THERMIE programmes to provide sup­
port for promotion and dissemination of 
new energy technologies, energy effi­
ciency and energy savings 
establishment of energy centres and of 
training, promotion and logistical assis­
tance schemes (SYNERGY programme) 
training and promotion of energy effi­
ciency programmes (SAVE programme) 
training and promotion of renewable en­
ergy (ALTENER programme) 
organisation of round tables and liaison 
groups 
to be defined 
development of industrial innovation 
schemes (Sprint network) 
organisation of round tables, seminars and 
workshops on general and sectoral issues 
establishment of pilot programmes on in­
dustrial co-operation 
organisation of seminars and establish­
ment of specific programmes in pro­
gress 
1995 
1995/96 
1995/96 
in pro­
gress 
in pro­
gress 
since 
end of 
1994 
B/10 
clX 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
3. training and dissemination of 
technology EU-Japan centre for industrial co-operati­
on 
programmes for science and technology 
fellowships in information technology (for 
example, the KIT (Keep in Touch) pro­
gramme) and the MTFP programme 
(Manufacturing Technology Fellowship 
Programme)) 
extension ofthe training programmes to 
the priority fields for European industry in pro­
gress 
in pro­
gress 
1995/96 
3. TO ENSURE FAIR COMPETITION 
a. 
1. 
2. 
3. 
4. external markets: taking account ofthe European Union's industrial in­
terests, both as an exporter and as an importer 
continuation of efforts to re­
solve problems not comple­
tely dealt with by the end of 
the Uruguay Round 
combating fraud efficiently 
development and effective 
application of international 
rules on competition 
establishment of an indus­
trial assessment mechanism active participation in the work ofthe 
WTO 
- work on harmonisation of non-preferen­
tial rules on origin (conclusion scheduled 
in 1998) 
- further negotiations on steel, aviation 
and services (for example, telecommuni­
cations) 
to be defined 
application and implementation of bilat­
eral association, partnership and co­
operation agreements 
improvement ofthe existing bilateral co­
operation agreements and development of 
new agreements 
preparation of multilateral discussions on 
international rules of competition 
implementation of OECD agreement on 
shipbuilding 
establishment ofthe industrial assessment 
mechanism (multi-sectoral and geographi­
cal extension) in pro­
gress 
1995 
1996 
B/ll 
%\ 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
5. 
6. 
7. 
8. 
9. 
b. 
1. 
2. continuing to improve the 
structure ofthe Common 
Customs Tariff in order to 
better reflect the industrial 
interests of producers and 
users 
database on the obstacles to 
smooth operation ofthe 
markets 
improvement of commercial 
policy instruments with the 
aim of making them more 
efficient and operational 
consideration of application 
of commercial policy and 
defence instruments to serv­
ices 
co-ordination between the 
measures taken to promote 
exports and investment and 
the other policies 
internal market: 
further reduction of State 
aid, taking account of re­
gional imbalances 
an examination, as soon as 
possible, of possible changes 
to the State aid control 
mechanism action under way 
study and establishment of a database on 
the obstacles to proper operation ofthe 
markets 
preparation ofthe dialogue with the Mem­
ber States on the new instruments 
to be defined 
communication on "a level playing field 
for direct investment world-wide" 
continued negotiations of mutual recogni­
tion agreements 
exploitation of data from the 4th report on 
state aids 
preparation of a proposal to the Council 
for a Regulation on the simplification of 
procedures 1995/96 
1995/96 
1995 
1995/96 
1995 
1995/97 
B/12 
n 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
.-
3. re-examination ofthe aid 
authorisation criteria 
improvement ofthe consis­
tency between the structural 
policies and the policies for 
monitoring State aid 
improvement ofthe consis­
tency between the rules ap­
plicable to State aid and the 
arrangements for Commu­
nity financing under non­
structural policies 
strengthening ofthe internal 
market (in gas, electricity 
and telecommunications) to be defined 
completion ofthe internal energy market 
(gas, electricity) by the way of rapid adop­
tion of proposals for Directives now be­
fore the Council or otherwise by other 
means available to the Commission 
Green Paper entitled "For a European 
Union energy policy" 
draft White Paper based on the Green Pa­
per 
telecommunications markets liberalisa­
tion: 
- cable-distribution networks 
- mobile networks 
- vocal telephony and other infrastructures in pro­
gress 
1995 
1995/96 
1996 
1996 
1998 
4. TO MODERNISE THE ROLE OF THE PUBLIC AUTHORITIES 
a. 
b. further deregulation, exami­
ning, for example, the expe­
diency of invoking Articles 
101 and 102 ofthe Treaty 
redefinition of public service 
objectives possibly, submission of proposals for leg­
islation 
to be defined 1996 
B/13-
xs 
ANNEX 2 
Action programme for an industrial competitiveness policy for the European Union 
OBJECTIVES ACTION TIME­
TABLE 
c. 
d. 
e. 
f. 
g-
h. 
i. using the Structural Funds to 
support industrial change 
and to facilitate the devel­
opment of clusters of com­
petitive activities 
development of partnerships 
between big businesses and 
small firms 
streamlining and effecting 
greater transparency of pro­
cedures (contribution to the 
Working Party set up to 
simplify administrative pro­
cedures and legislation) 
a) faster establishment of 
trans-European networks for 
the interchange of data be­
tween administrations 
b) establishing and stepping 
up electronic data inter­
change between industry and 
the administration 
using the Community ins­
truments to support co-op­
eration projects of Commu­
nity interest 
examination of ways of im­
proving decision-making 
structures 
reduction of costs arising 
from regulations definition, with the Member States and in­
dustry, of specific programmes on voca­
tional retraining for workers affected or 
threatened by massive restructuring of un­
dertakings or industries in crisis (objective 
4, SME, ADAPT and LEONARDO) 
possibly, submission of proposals 
examination ofthe effect ofthe Commu­
nity and national rules on competitiveness 
and employment by the MOLITOR wor­
king party of independent experts on the 
simplification of legislation and adminis­
trative procedures 
proposal for a Council recommendation 
on extension of IDA to third countries 
proposal for a Council Decision on a 
multi-annual programme to support the 
use of electronic information interchange 
between industry and administrations 
(I3A) 
possibly, submission of proposals 
establishment of a Competitiveness Advi­
sory Group 
proposal for new types of meetings 
(workshops) between the national and 
Community administrations 
evaluation of economic costs and benefits 
of new legislative proposals in pro­
gress 
1996 
1995/96 
1995 
1995 
1996 
1995 
in pro­
gress 
B/14 
1C 
Communication from the Commission 
Action programme and timetable for implementation of the actions 
announced in the communication on 
"An industrial competitiveness policy for the European Union" 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Industrial competitiveness policy for the European Union 
2. BUDGET HEADING INVOLVED 
Cf. item 7.2 
3. LEGAL BASIS 
Treaty on the European Union, and in particular Articles 3 and 130 §3 and Ti­
tles XIII (Industry), XV (Research and technological development, Articles 130f 
etseq.% VIII (social policy and industrial change, Article 123), XIV (social and 
economic cohesion, Articles 130 A andB) and XII (Trans-European 
networks) thereof. 
4. DESCRIPTION OF OPERATION 
4.1 Specific objectives 
D To strengthen the competitiveness of European industry by means of general 
measures under a series of common policies (on research, cohesion, vocational 
training, networks, foreign trade and competition). 
D To develop the internal market, to take fuller account of industry's needs in re­
search policy, to establish the information society and to promote industrial co­
operation. 
4.2 Duration 
Ad hoc measure. 
-n 
43 Target population 
Member States, regional and local authorities, two sides of industry, businesses, 
etc. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
53 Type of revenue involved 
Not applicable. 
6. TYPE OF EXPENDITURE OR REVENUE 
The form of support depends on the specific procedures for each ofthe measures 
referred to in point 7.2. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
The calculation of the cost to the budget of the action provided for in this com­
munication is set out in the Table in point 7.2. 
7.2 Itemized breakdown of cost 
This communication will have no further impact on the budget 
headings listed below are mentioned for information as they relate to actions 
:h in varying degrees will help to improve the competitiveness of the 
)oean Union. The 
which in varying 
European Union 
it 
Breakdown by main headings Budget Budget 1995 ME-
headings CU 
concerned EC without RSB 
Community Support Frameworks B2-130 6.443,8 
Industrial reconversion B2-143 403,0 
SME's initiative B2-1432 175,0 
Cohesion fund B2-300 2.151,7 
Training and careers advice B3-1020 1,0 
Leonardo B3-1021 137,3 
Actions in the field ofthe Internal Market B5-300 40,08 
Stimulation of companies (SMe) B5-320 29,2 
Industry : actions in the field of telecom- B5-41 30,5 
munications and postal services, standardi­
sation and data exchange 
Actions in the industrial field, including the B5-41 7,2 
Panorama 
Transeuropean networks 
-> in the field of transport B5-700 216,0 
-> in the field of energy B5-710 15,0 
-> telecommunications infrastructure B5-720 20,0 
R & D Framework Programme B6-711 906,5 
Information and communication technolo-
gies . 
Promotion of Community exports to third B7-5022 12,2 
countries, in particular Japan 
Programme for the modernisation of textile B5-420 80,0 
industry in Portugal 
pm: Breakdown by action (B5-411) 1996 budget 
(MECU) 
Annual report - inter alia, on the basis ofthe information ob­
tained for the panorama of European industry - on the devel­
opment ofthe competitiveness of European industry 1.0 
<> 
o 1 
Examination ofthe issue of relocation and report on the results 0.5 
to the senior officials on industrial policy 
Establishment, in collaboration with industry and with na- 0.5 
tional administrations, of a database on the obstacles faced by 
European companies in third countries, market by market 
Formalization ofthe initiatives announced in the communica­
tion on "An industrial competitiveness policy for the European 
Union " in the areas of: 
— intangible investments \ 2 
— industrial cooperation \ Q 
— the industrial aspects of competition 0.5 
— modernization ofthe role of public authorities in indus- o.5 
try 
TOTAL 5.2 
7.3 Operational expenditure on studies, meetings of experts, etc. 
pm: ventilation by action (B5-411 ) ECU 
Studies 2 500 000 
Meetings of experts 70 000 
Conferences and congresses 120 000 
Information and publications 210 000 
7.4 Indicative schedule of appropriations 
See the breakdown in the Table in point 7.2. 
8. FRAUD PREVENTION MEASURES 
Before payment the Commission departments concerned check the financial assis­
tances or that the services and preparatory and feasibility studies or assessments 
ordered have been received, taking account of the contractual obligations and of 
the principles of economy and sound financial management. Anti-fraud measures 
(inspections, reports, etc.) are included in all agreements or contracts concluded 
between the Commission and parties receiving payments. 
> 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific objectives 
To strengthen industrial competitiveness, closer coordination will be needed 
across a series of common policies, particularly on research, cohesion, vocational 
training, networks and foreign trade, plus closer consultation between the Member 
States. As identified in the White Paper on growth, competitiveness and employ­
ment, the priorities for action will be to promote intangible investment, to develop 
industrial cooperation, to ensure fair competition and to modernize the role ofthe 
public authorities. 
In most cases, studies and analyses will be required before a start can be made 
with the action to attain the abovementioned objectives. 
As regards the nature of the action to be taken, this communication contains 
measures of various types: 
- action already under way or which can be started in the near future and which 
could make an immediate contribution to the industrial competitiveness of the 
European Union, particularly: 
• organization of round tables, seminars, forums and workshops on gen­
eral and specific sectoral issues; 
• contributions from the common policies to help to improve industrial 
competitiveness, particularly from the cohesion, training, research, inno­
vation, trade, competition and co-operation with third countries policies; 
• the establishment of pilot programmes on industrial cooperation; 
• the establishment of a database on the obstacles to proper operation of 
the markets and of an industrial assessment mechanism; 
• establishment of a European competitiveness policy council. 
- action requiring more detailed political guidelines so that a start can be made 
in due course, particularly: 
• draft communications on the promotion of intangible investment, on the 
promotion of quality, on industrial cooperation with Eastern Europe and 
on direct foreign investment; 
• draft white papers and green papers on the legal instruments for indus-
trialcooperation and on energy policy. 
^ A 
- action requiring the adoption of proposals for legislation before it can take ef­
fect, particularly proposals for Directives, Regulations and Recommendations 
designed: 
• to promote research, the internal energy market, European investment 
overseas and electronic trading; 
• to remove the legal and fiscal obstacles to industrial cooperation; 
• to modernize the role played by the public authorities in industry. 
9.2 Grounds for the operation 
The appropriations requested will be used to implement an industrial competitive­
ness policy for the European Union. There is no real alternative means of attain­
ing the same results. 
European industry is making an unprecedented effort to restructure and innovate 
in order to boost its competitiveness on the world market. In particular, these ef­
forts must equip it to face the changing international context (geopolitical up­
heaval and conclusion of the Uruguay Round) and the mounting international 
competition, often from countries with less stringent social, regulatory or fiscal 
constraints, the economic recession, the rapid development of combinations of 
technological innovations (information technology, biotechnology, new materials, 
etc.) which have led to intangible investment (in research, patents, training, soft­
ware, etc.) growing faster than capital investment and the inadequacy ofthe major 
European networks for reaping maximum benefit from the revolution in progress 
in telecommunications and information technology. 
Moreover, in its resolution of 8 November 1994 on the strengthening ofthe com­
petitiveness of Community industry the Council called on the Commission "to 
submit to it... a schedule for the drafting of appropriate proposals formalizing 
the initiatives announced by the Commission in its communication on "An indus­
trial competitiveness policy for the European Union" in the areas of intangible 
investments, industrial cooperation, competition and modernization ofthe role of 
public authorities". 
As regards subsidiarity, the European Union must implement an industrial ap­
proach drawing maximum benefit from the GATT Agreement and allowing rapid 
progress on the issues raised by the globalization of markets. In this context, a 
Community approach is necessary, without doubt. 
D Cost: 
See the Table in point 7.2. 
•4f 
32 
a Spin-off effects 
9.3 Evaluation 
Regular evaluations are planned in accordance with the specific procedures for 
each of the measures referred to in point 7.2. 
In addition, as requested by the Council in its resolution of 8 November 1994 on 
the strengthening ofthe competitiveness of Community industry, from 1995 on 
the Commission will submit an annual report on the development ofthe competi­
tiveness of European industry. / 
10. ADMINISTRATIVE EXPENDITURE 
The action programme will give rise to no additional administrative expenditure. 
11 
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