No C 344/16 Official Journal of the European Communities 31. 12. 85 
by bodies set up for that purpose or through certain public 
law bodies). But the transitional period provided for must be 
used to resolve these difficulties. 
5.5.1. Similar problems may arise in connection with the 
various State-aided savings schemes for housing, especially 
for migrant workers. 
Article 10 
5.6. The principle of information being exchanged 
between supervisory authorities in the countries concerned 
can only be approved, but it seems that the planned 
supervision and sanctions procedure for dealing with 
violations of the law might be of doubtful effectiveness in the 
event of serious irregularities jeopardizing monetary order in 
the host country. 
Article 11 
5.7. This states that for a maximum period of five years 
after notification of the new Directive, the home Member 
Done at Brussels, 27 November 1985. 
1. Introduction 
1.1. The Economic and Social Committee welcomes the 
Commission's initiative to consolidate the internal market State may limit the volume of transactions carried out by a 
credit institution under this text to 25% of the total 
mortgage lending of the relevant institution. To avoid any 
difficulties in implementation, it would be preferable to 
consider the volume of loans granted during the preceding 
year. 
5.7.1. In the interests of symmetry, the host Member 
State should also be allowed to limit the volume of operations 
during the transitional period. It is hard to imagine a small 
country accepting straightaway a large volume of business 
from a powerful institution from another country. 
Article 12 
5.8. The date for bringing the proposed Directive into 
force has been left blank. But a date should be fixed so as to 
allow the Member States sufficient time (e.g. five years) for 
adapting their laws to the Directive. If a transitional period is 
provided for as proposed in point 3.4 of this opinion, the 
deadline for implementing the Directive may be set at one 
year after the date of its publication. 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR 
and, while regretting the absence of the social dimension, 
supports the ambitous target of a fully unified internal 
market by 1992. In declaring its firm commitment, the 
Committee calls on the Member States to honour their pledge Opinion on 'Completing the Internal Market' — White Paper from the Commission to the 
European Council 
(85/C 344/09) 
On 28 June 1985 the Commission decided to consult the Economic and Social Committee, under 
Article 198 of the Treaty establishing the European Economic Community on 'Completing the 
Internal Market' — White Paper from the Commission to the European Council (Milan, 28/29 June 
1985). 
The Sub-Committee on the Internal Market, which was responsible for preparing the Committee's 
work on the subject adopted its opinion at its meeting on 6 November 1985, in the light of the oral 
report by Mr Poeton, rapporteur. Co-rapporteur was Mr. Rouzier. 
At its 231st plenary session held on 27 and 28 November 1985 (meeting of 27 November 1985) the 
Economic and Social Committee adopted the following opinion by 90 votes to 14 with 17 abstentions 
(vote recorded): 
31. 12. 85 Official Journal of the European Communities No C 344/17 
of 29/30 March 1985 to achieve a single market by 
1992. 
1.2. This task represents not only a firm step towards 
unity in the European Community, but is an essential 
prerequisite to future economic growth, employment and 
trading prospects in the world. Europe is faced with a stark 
choice: either the Community follows the choice of unifying 
the market as an intregrated economic unit or it carriers on 
following separate development in 12 different Member 
States. If we follow the latter course, we must accept 
economic weakness especially vis-a-vis the United States and 
Japan. We have also to consider the European Community's 
political strength in the world. Above all else, we must 
choose the best course to create new wealth and long-term 
emloyment prospects for all our citizens. Should we fail to 
complete and integrate the internal market, we fail to create a 
more prosperous Europe and all that that entails, in terms of 
reduced economic growth, higher unemployment and lower 
living standards. 
1.3. The creation of a single internal market is one of the 
fundamental objectives of the Treaty of Rome as enshrined in 
Article 2 which states: 
'The Community shall have as its task, by establishing a 
common market and progressively approximating the 
economic policies of Member States, to promote 
throughout the Community a harmonious development 
of economic activities, a continuous and balanced 
expansion, an increase in stability, an accelerated raising 
of the standard of living and closer relations between the 
States belonging to it.' 
1.4. The Economic and Social Committee has repeatedly 
affirmed its support for these objectives, for instance in its 
opinion on the prospects for the 1980s (*). It reiterates these 
statements now, considering that the promotion of European 
integration is more imperative than ever and that the time has 
come to go beyond declarations of intent and to act: the 
abolition of frontier controls on and the reduction of 
administrative barriers to internal Community trade, 
together with progress on harmonization and 
standardization, must be continued and stepped up. 
1.5. The Committee believes the dismantling of all 
unnecessary internal procedures will give a much needed 
political impetus and credibility in the eyes of Community 
citizens. 
(') Opinion on 'Prospects to the Eighties' adopted on 27/28 
October 1981 (OJ No C 313, 31. 12. 1981, p. 29). 2. General comments — the conditions for success 
2.1. Decision-making 
2.1.1. Some recommendations in the White Paper on 
completing the internal market by the 1992 deadline may 
appear ambitious in view of the many complex problems 
raised by the removal of physical, technical and fiscal 
barriers. For this reason, the appropriate decisions will have 
to be taken with the unswerving political will to succeed, to 
overcome reservations and obstacles. In order to attain the 
objectives of a unified market, the Member States will have to 
accept their joint responsibilities under the Treaty, especially 
in the fiscal area, for their greater good. 
2.1.2. The Committee therefore urges the Council to 
reform its decision-making capacity. It calls on the Council to 
accept qualified-majority decision-taking. In order to cope 
with the large volume of legislation needed to complete the 
internal market, this is necessary. 
2.2. Social aspects 
2.2.1. The Commission White Paper, divided into three 
parts dealing with the removal of physical, technical and 
fiscal barriers, does not put forward any practical ideas on a 
work programme — with a time-scale — for the development 
and realization of a European dimension in the social field. 
The White Paper should be supplemented by a second paper 
dealing comprehensively with the social sphere. 
2.2.2. This presupposes that this second paper will be 
drawn up in as practical a way as the present White Paper. It 
also calls for the laying down of a specific time-scale for 
implementation of the measures required in this field. A 
European internal market cannot be achieved without a 
foward-looking European policy on economic growth and 
employment. 
2.2.3. The Committee accordingly takes the view that 
such a policy is an urgent necessity, since the creation of an 
internal market such as that proposed will have repercussions 
on: 
— the trend in purchasing power and prices, 
— working conditions and the situation on the labour 
market, 
— standards in labour legislation, 
— the structure of numerous economic and industrial 
sectors, 
— employment prospects. 
2.2.4. Measures will therefore have to be adopted so that 
the establishement of this internal market and the 
restructuring it entails promotes economic revival and 
reduces unemployment, rather than leading chiefly to the 
destruction of firms and jobs. 
No C 344/18 Official Journal of the European Communities 31. 12. 85 
2.2.5. Finally, the Committee notes that the programme 
put forward by the White Paper should not be considered as 
of purely mercantile interest. Measures such as the removal 
of frontier checks and the mutual recognition of diplomas, 
vocational training qualifications and other certificates of 
proficiency, which the Committee hopes will be 
all-embracing, including sectors as diverse as the marine and 
aeronautical fields, will have a direct positive effect on many 
citizens of the Community and are thus of significance for 
society as a whole. They represent an important step forward 
towards a 'people's Europe'. 
2.3. Economic convergence and regional development 
2.3.1. Completion of the internal market must be 
accompanied by a narrowing of the gap between the 
prosperous and less prosperous economies of the 
Community. Thus, the opening of the market involves a clear 
commitment to implement accompanying structural policies 
(e.g. regional policy), without which some of the Member 
States will not be in a position to accept, and tolerate, such a 
high level of liberalization. This is the premise for marking 
sure that the EEC is not only an integrated market, but also a 
sufficiently homogeneous one. The Council, in its decisions, 
must not underestimate the importance of this premise. 
2.4. Consumer interests 
2.4.1. In addition to enforcing competition policy 
effectively, parallel action relating to the information and 
protection of consumers is an essential ingredient for the 
proper functioning of the internal market. In this respect, the 
Committee notes that the Commission has recently issued a 
communication to the Council entitled 'A New Impetus for 
Consumer Protection Policy' (COM85) 314 final), on which 
the Committee does not consider it appropriate to express its 
views on this occasion. 
3. Specific comments — the White Paper 
3.1. The control of goods (White Paper, Part One, II) 
3.1.1. The creation of a single administrative document 
which is intended to replace up to 70 different forms 
currently in use for intra-Community trade is an outstanding 
example of how bureaucratic procedures can be reduced. 
Further work on this document could simplify it even more. 
In addition, the work on the Coordinated Development of 
Computerized Administrative Procedures (CD) project 
should be accelerated to the extent that it facilitates the flow 
of trade. 
3.1.2. In furthering the establisment of a recognizable 
Community market for Community citizens, the Council 
should accept a phased timetable for increases in duty and 
tax-paid allowances on goods for travellers, to the point 
where no further frontier control will be necessary by 
1992. 3.2. The control of individuals (White Paper, Part 
One, III) 
3.2.1. The Committee fully agrees that internal frontier 
controls should be abolished by 1992. The need to combat 
crime and drug trafficking must not be used as an alibi for 
maintaining systematic controls at internal frontiers, but 
should be tackled through closer cooperation between 
national authorities. Control over criminals and terrorists 
should, unless special circumstances dictate otherwise, be 
exercised in a concerted manner at the Community's external 
frontiers. Appropriate measures should also be taken to curb 
illegal immigration. At internal frontiers, only spot checks, 
which should be kept to a minimum, should be practised, the 
majority of checks should take place inside Member States 
and not at frontiers. Equivalent penalties in all countries are 
essential. 
3.3. Technical barriers (White Paper, Part Two, I) 
3.3.1. The Committee reaffirms the pressing need to end 
the divisions in the Community market caused by differing 
health and safety requirements and other technical 
specifications. Non-tariff barriers constitute one of the chief 
reasons for the lack of European competitiveness. The 
Commission's new approach to harmonizing technical rules, 
which will involve directives merely laying down essential 
requirements concerning safety or other areas, is welcomed. 
But the Committee recommends that the Commission should 
organize prior consultations enabling representatives of all 
parties concerned, e.g. governments, employers, workers 
and consumers, to contribute to the formulation of 
proposals, so that their interests are really taken into account 
when the draft directives are drawn up. 
3.3.2. With regard to the new approach to drawing up 
technical standards, the Committee welcomes the 
Commission's statement paragraph 72 of the White Paper) 
that the views of all interested parties will be taken into 
account and that arrangements have been made for consumer 
bodies to participate in CEN/CENELEC work. The 
Committee would ask the Commission to encourage the 
taking of the measures necessary to this end. 
3.3.3. The Committee urges the Commission to use all 
the powers available under the Treaty, particularly Articles 
30 to 36, to reinforce the principle of mutual recognition of 
tests and certification. 
3.4. Free movement for labour and the professions (White 
Paper, Part Two, HI) 
3.4.1. The failure to coordinate immigration policies, 
and the freedom of Member States to conclude bilateral 
immigration agreements with third countries, have seriously 
31. 12. 85 Official Journal of the European Communities No C 344/19 
impeded effective exercise of the right to free movement and 
have meant that the principle of Community priority has not 
been applied. 
3.4.2. As regards the right of the liberal professions to 
establishment and freedom to provide services, the 
Committee considers that there must be specific provisions 
made for access to, and the right to exercise, each profession 
contemporaneously with the mutual recognition of higher 
education diplomas (on which it is currently examining the 
Commission proposals). 
3.5. Industrial cooperation (White Paper, Part Two, VI) 
3.5.1. In terms of new job creation, it is the smaller 
businesses that are increasing in number and creating many 
of the jobs of the future. Europe's internal barriers impose a 
heavy burden on all enterprises, in particular the smaller 
ones, and on the development of new technologies. An 
integrated internal market would lower administrative costs, 
allow for economies of scale and reduce subsidies. Only thus 
will the Community's economy be able to expand and 
operate on a truly continental scale. Particular attention will 
have to be given to the effective coordination of national 
research and development aid and a greater role for the 
Community in the^ pre-competitive granting of aid to new 
technology sectors. 
3.5.2. European Community industrial policies which 
encourage innovation, strengthen the competitive position of 
Western Europe and safeguard the interests of its peoples, 
need to be extended. 
3.5.3. To achieve these objectives, it is essential to 
reinforce the dialogue between the Commission, 
governments, employers and trade-union organizations. 
3.5.4. The Council's approval of the 'European 
Economic Interest Group' has given a legal framework on 
which to build teams able to contribute to an expanding 
single Community market. Further work needs to be 
undertaken to improve the climate for investment and 
risk-taking by reducing the legislative burden falling on 
companies and simplifying administrative procedures. 
3.5.5. Adoption by the Council of the 'European 
company' statute would facilitate transnational restructuring 
of industrial companies. This would also have a beneficial 
effect on the harmonization and standardization of norms. It 
would reduce or eliminate technical obstacles to the free 
circulation of industrial products. It would also make 
European industry more competitive vis-a-vis third 
countries. 
3.5.6. In addition to simplification in company affairs 
and greater share ownership (paragraph 139) it is essential 
that actions undertaken towards consolidating the internal market be accompanied on the practical side by pursuing the 
opportunities which are at present not being exploited (for 
example in the defence equipment industry). 
3.5.7. The Committee further strongly endorses the 
Commission's view on the necessity for the development of 
Community policy on 'intellectual property'. 
3.6. Application of Community law — infringements 
(White Paper, Part Two, VII) 
3.6.1. The Committee urges the Commission to pursue 
intensively its systematic action in enforcing free circulation 
of goods under Articles 30 to 36 to ensure free movement of 
goods. 
3.6.2. The Commission should investigate if traders 
could be given further assistance by examining problems in 
the interpretation of existing regulations and making 
recommendations to approximate their interpretation in 
each Member State. 
3.7. Competition and State aid (White Paper, Part 
Two, VII) 
3.7.1. The Committee strongly endorses the view 
expressed by the Commission that an effective competition 
policy is vital to maintain and improve the internal market. 
Undue market concentration and anti-competitive restrictive 
trade practices must be vigorously controlled under Articles 
85 and 86. 
3.7.2. The Committee attaches particular importance to 
the introduction of legislation providing for Community 
control of concentrations between undertakings. It considers 
that the Commission's proposal of December 1981, endorsed 
by its opinion of 30 June 1982, should figure in the Annex 
amongst the decisions to be taken by the Council. 
3.7.3. The Committee commends the Commission on its 
efforts to reinforce the efficiency and competitiveness of 
European companies by enforcing a rigorous policy with 
regard to State aids. Effective policy in this area will allow 
resources to be directed towards competitive job-crfiating 
industries and services of the future. 
3.8. Removal of fiscal barriers (White Paper, Part Three) 
3.8.1. The Committee welcomes the Commission's 
determination to attain the final abolition of internal frontier 
controls through the reduction of major differentials in 
indirect taxation. The abolition of internal barriers does not 
require total harmonization of VAT and excise duties. The 
No C 344/20 Official Journal of the European Communities 31. 12. 85 
differentials should not however be so great that they lead to 
changes in purchasing habits, shifts in trade and hence 
distortions in competition between the Member States. 
3.8.2. The approximation of rates will in practice need to 
be phased in over a period of several years towards the future 
rate bands. To prevent further divergence in the near future, 
'standstill' provisions should be introduced as soon as 
possible whereby Member States would undertake to avoid 
moving away from the common bands. Furthermore, it is 
urgently necessary to take the outstanding decisions relating 
to the structure of VAT. These include, in particular, 
uniform tax exemptions and the stipulation of services 
subject to a special tax rate. Whatever political decisions are 
made, there should be no further delay in beginning the 
preliminary work on the introduction of a VAT Clearing 
House System. 
3.8.3. For the period leading up to the removal of. fiscal 
barriers, provisional measures should be adopted to 
minimize or eliminate the administrative burdens arising 
from the differences in the incidence and collection of 
national VAT. Thus considerable advantage would be 
derived from the universal adoption within the Community 
of the Postponed Accounting System (PAS). The Committee 
notes that the adoption by Council of the draft 14th VAT 
Directive is overdue and should be adopted without delay. 
3.8.4. An example of the difficulties involved in the fiscal 
field is the harmonization of the structure of excise duties on 
cigarettes. The Committee reaffirms its opinion on this that 
ad valorem taxation magnifies cost differences; because of 
the 'multiplier' effect both the ad valorem and the specific 
part of the tax would have to be at broadly similar levels, if 
frontier controls were removed. In most Member States this 
would require large changes from present tax rates. Member 
States would retain freedom to set their own rates, but only 
within limits that did not distort trade at frontiers. 
3.8.5. VAT and excise duty rates on alcoholic drinks in 
different Member States must be brought closer together not 
only in order to end frontier controls but also to establish an 
equitable relationship in the taxation of all alcoholic drinks 
Done at Brussels, 27 November 1985. and thus eliminate distortion of inter-State trade and 
consumer choice. Furthermore, standstill provisions must be 
introduced both for VAT and excise duties to prevent further 
divergence of rates. 
4. Timetable 
4.1. The Committee endorses the Commission's 
insistence on the need for a timetable, with 1992 as the 
deadline. 
4.2. For this timetable to be respected the Committee 
underlines the need for the Council to streamline its 
decision-making procedures by all measures at its disposal, 
including a rolling forward programme as agreed by the 
present and upcoming Presidencies (LUX, NL, UK) and by 
utilizing the procedure under Article 155 of the Treaty (*)• 
4.3. To facilitate progress in the most contentious areas, 
namely approximation of indirect taxation, Member States 
must be allowed to derogate where necessary provided this 
does not involve systematic frontier checks. 
5. Public relations 
If the European Community is to achieve the stated aims with 
the general support of its peoples, the Committee considers 
that an information and education campaign has to be 
undertaken without delay. As much factual information as 
possible needs to be assembled in order to make the general 
public aware of the negative effects of internal barriers and 
the benefits which the White Paper proposals will bring. A 
campaign of this nature requires concerted efforts by all 
concerned, in particular Community institutions, Member 
State Governments and representative interest groupings. 
(*) 'In order to ensure the proper functioning and development of 
the common market, the Commission shall: . . . exercise the 
powers conferred on it by the Council for the implementation of 
the rules laid down by the latter.' 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR 
31. 12. 85 Official Journal of the European Communities No C 344/21 
APPENDICES 
to the opinion of the Economic and Social Committee 
APPENDIX 1 
Voting 
Result of the vote on the opinion as a whole: 
The following members, present or represented, voted in favour of the opinion: 
Messrs Amato, Arena, Bagliano, Beretta, Binnenbruck, Bleser, Bonety, Bredima, Briganti, Burnel, Campbell, 
Carroll, Cavazzuti, Ceyrac, Curlis, De Grave, Delia Croce, Delourme, Dore, Dracos, Drago, Drilleaud, d'Elia, 
Elkan, Emo Capodilista, Engelen-Kefer, Etty, Flum, Fortuyn, Fuller, Geuenich, Glesener, Goris, Van Greunsven, 
Hannon, Heuser, Hilkens, Houthuys, Hovgaard Jakobsen, Jaschick, Kelly, Kenna, Kirschen, Law, Lojewski, 
Low, Marvier, Masprone, Masucci, Meraviglia, Monier, Mourgues, Muller, Nierhaus, Noordwal, Paggi, 
Pearson, Pelletier, Plank, Poeton, Pronk, Querleux, Rainero, van Rens, Romoli, Roseingrave, Rouzier, Sai'u, 
Schnieders, Schoepges, Schwarz, George Sharp, Soulat, Spijkers, Stahlmann, Starazke, Storie-Pugh, Strauss, 
Strobel, Swift, Tamlin, Vanden Broucke, Van der Mensbrugghe, Van Melckenbeke, Vercellino, Wagner, Weber, 
Wick, Zinkin, Zoli. 
The following members, present or represented, voted against the opinion: 
Messrs Bazianas, Chalioris, Dassis, Dassoulas, Dunet, Hadjivassiliou, Kamizolas, Murphy, Nielsen B., Nielsen 
P., Raftopoulos, Spachos, Tixier, Vassilaras. 
The following members abstained from voting: 
Messrs Boddy, De Bievre, De Bruyn, Gredal, Hammond, Hemmer, Jarvis, Jenkins, Maddocks, Margot, Milne, 
Mols Sorensen, Nielsen M., de Normann, Regaldo, Smith A., de Wit. 
APPENDIX 2 
Defeated amendments 
1. The following amendments, tabled in accordance with.the Rules of Procedure, were rejected by the 
Committee during plenary session discussions: 
Paragraph 1.1: 
Delete the phrase: 
'. . . while regretting the absence of the social dimension . . .'. 
Result of the vote 
For: 16. Against: 79. Abstentions: 23. 
Point 2.1.2: 
Delete this paragraph. 
Reasons 
The Council's decision-making procedure is a matter of exceptional importance for the Community and does not 
exclusively concern the internal market. As a consequence, the ESC cannot make a snap judgment on the question, 
i.e. without holding prior discussions and examining all the implications. 
No C 344/22 Official Journal of the European Communities 31. 12. 85 
Result of the vote 
For: 28. Against: 84. Abstentions: 4. 
Paragraph 2.3.1, second sentence: 
Delete the phrase 'without which some of the Member States will not be in a position to accept, and tolerate, such a 
high level of liberalization'. Amend the subsequent sentences to read as follows: 
'This is one of the objectives which will ensure that the EEC is not only an integrated market, but also a sufficiently 
homogeneous one. The Council, in its decisions, must not underestimate the importance of this objective.' 
Reasons 
Homogeneity of the market cannot be postulated as a precondition, as a premise of market integration. 
Homogeneity can be an objective and a result, but not a premise. 
Result of the vote 
For: 21. Against: 74. Abstentions: 11. 
Point 3.4.2: 
Replace by the following: 
'As regards the right of establishment and freedom to provide services of the liberal professions, the Committee 
considers that there must be general provisions made for access to all professions contemporaneously with a 
mutual recognition of higher education diplomas in the spirit of the Commission proposals which it is currently 
examining.' 
Result of the vote 
For: 30. Against: 71. Abstentions: 13. 
Opinion on the proposal for a Council Directive amending Directive 75/716/EEC on the 
approximation of the laws of the Member States relating to the sulphur content of certain liquid 
fuels (!) 
(85/C 344/10) 
On 12 August 1985, the Council decided, in accordance with Article 100 of the Treaty establishing the 
European Economic Community, to ask the Economic and Social Committee for an opinion on the 
abovementioned proposal. 
The Section for Industry, Commerce, Crafts and Services was made responsible for preparing the 
Committee's work on the subject. Later on, the Committee appointed Mr Flum as 
rapporteur-general. 
At its 231st plenary session (meeting of 27 November 1985), the Committee adopted the following 
opinion by a majority. There were three votes against and seven abstentions. 
1. Introduction 
1.1. At present, Directive 75/716/EEC allows a 
maximum sulphur content by weight of 0,3% (type A) or 
0,5 % (type B) for gas oil used for heating or diesel fuel, as 
(>) OJ No C 205, 14. 8. 1985, p. 3. specified in Annex 1. Member States are free to decide which 
limit they wish to apply. 
The average sulphur content in the Community has gradually 
got closer to the lower limit of 0,3 % by weight provided for 
in the Directive.