No C 115/8 Official  Journal  of the European  Communities 28. 9. 74 
have  to spend  more  and  more  on environmental 
protection,  which  they  would  not have  to do if they 
were  located  in certain  other  parts  of the world. 
In conclusion,  the Committee  confirms  its intention 
to carry  out  a detailed  examination  of all  the 
questions  raised  by the coming  multilateral  negotia-tions  in GATT,  which  its Members  wish  to be able 
to comment  on in the light  of all the factors  con-
cerned. 
Done  at Brussels,  24 May  1973. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPP  AS 
Opinion  on the memorandum  from  the Commission  on the technological  and  industrial 
policy  programme 
The text  on which  the Opinion  is based  has not been  published  in the Official  Journal 
of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 114th  plenary  session  held  on 24 and  25 October  1973  the Committee,  acting 
on a proposal  from  the Bureau,  decided  to deliver  an opinion  on the abovementioned 
subject  on its own  initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
115th  plenary  session,  held  in Strasbourg  on 28 and  29 November  1973. 
The full  text  of the Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE: 
Having  regard  to the  letter  dated  10 May  1973  by 
which  the Commission  sent  the Economic  and  Social 
Committee,  for the information  of its members,  the 
'memorandum  from  the  Commission  on  the 
Technological  and Industrial  policy  programme'; 
Having  regard  to the decision  taken  by the Economic 
and Social  Committee  at the plenary  session  on 24 
and 25 October  1973,  on a proposal  from  its Bureau, 
to deliver  an opinion  on this  memorandum  on its 
own initiative  and  to entrust  the Section  for Industry, 
Commerce,  Crafts  and  Services  with  the preparation 
of the work  on the matter; 
Having  regard  to the  oral  report  presented  by Mr 
Kley,  the Rapporteur; 
Having  regard  to the  Opinion  delivered  by the 
Section  for Industry,  Commerce,  Crafts  and  Services 
on 7 November  1973; Having  regard  to the  discussions  during  the  115th 
plenary  session  on 28 and  29 November  (meeting 
on 29 November); 
Whereas  the purpose  of the Commission  memoran-
dum is to prepare  the ground  for a preliminary  policy 
debate  in the Council  of Ministers; 
Whereas  it is the task  of the  Economic  and  Social 
Committee  to participate  in this  debate  by delivering 
an opinion; 
Has adopted,  by 45 votes  to 8, with  9 abstentions, 
THE  FOLLOWING  OPINION: 
A. GENERAL  COMMENTS 
The Economic  and  Social  Committee  has  already 
described  its attitude  to the objectives  and  the basic 
28. 9. 74 Official  Journal  of the European  Communities No C 115/9 
trend  of Community  industrial  policy  in its Opinion  (*) 
of 25 March  1971  on the  'Memorandum  from  the 
Commission  to the Council  on the industrial  policy 
of the  Community'.  The  Committee  reaffirms  the 
view  contained  in that  Opinion  that  the improvement 
of people's  living  conditions  must  be a top-priority 
objective  of industrial  policy.  The  Committee  there-
fore welcomes  the  statement  in the  Commission's 
communication  that  'the  development  of industry 
must  henceforth  form  part  of an overall  policy  for 
society,  striving  to improve  the  quality  of life, 
working  conditions  and  the  environment'.  Since  the 
achievement  of these  objectives  depends  in large 
measure  on economic  progress,  such  an industrial 
policy  must  create  the  optimum  conditions  for  a 
qualitative  improvement  and  quantitative  increase  in 
economic  growth. Committee  feels  that  coordination  of the  various 
national  structural  policies  at Community  level  is 
essential.  They  must  be increasingly  supplemented  by 
measures  worked  out at Community  level.  But,  as the 
Commission  rightly  states,  these  must  not  lead  to 'a 
single  policy  administered  by the Community  Institu-
tions'  (Point  8). Equally,  the purpose  should  not  be 
to maintain  obsolete  structures.  On the contrary,  the 
essential  alterations  which  are  becoming  necessary 
with  increasing  rapidity  as a result  of scientific  and 
technological  progress  are  to be encouraged  and 
furthered.  The  basis  for a dynamic  development  of 
industrial  structures  must  be effective  competition 
within  the Community  and  vis-a-vis  third  countries. 
To the  extent  that  the  conversion  and  adaptation 
process  affects  the  level  of employment,  suitable 
social  measures  must  be taken. 
The Committee  feels  that  the  industrial  policy  must 
be understood  as an overall  concept  of the necessary 
measures  for increasing  the competitiveness  and  the 
quantitative  and  qualitative  productive  capacity  of 
European  industries  by rational  combination  and 
optimum  use,  from  the  viewpoint  of the  economy 
as a whole,  of the  available  means  of production. 
This  viewpoint  had  also  been  expressed  in the basic 
Commission  memorandum  on  industrial  policy. 
However  it seems  necessary  that  the  Commission 
should  establish  priorities,  in order  to be able  to 
achieve  effective  progress.  Therefore  in its Com-
munication  of  3 May  1973  the  Commission 
confines  itself  mainly  to creating  the missing  elements 
of a common  European  industrial  basis.  Accordingly, 
the Commission's  communication  provides  for meas-
ures and  initiatives  which  aim  principally  at removing 
obstacles  to the implementation  of the Community's 
industrial  policy.  As regards  the  implementation  of 
the abovementioned  qualitative  goals,  the encourage-
ment  of a forward-looking  technological  development 
in industry,  the conversion  of industries  in difficulties 
and the achievement  of the greatest  possible  balance 
in economic  growth  of individual  areas  are particu-
larly  important  for  the  further  development  of the 
European  Community. 
In working  out and  implementing  individual  measures, 
consideration  must  be given  to this  close  link  be-
tween  regional  and  industrial  policy. 
The national  measures  (some  of which  differ  widely) 
currently  being  applied  in sectoral  structural  policy 
lead to distortions  of competition  which  hinder  an 
optimum  division  of labour  in the  economy  and 
higher  industrial  productivity.  Therefore  the 
I 
i1) Published  in OJ No C 59, 11. 6. 1971,  p. 9 and  seq. In this  context,  the Committee  warns  against  selec-
tively  encouraging  the formation  of certain  structures 
for undertakings.  A healthy  coexistence  of the various 
sizes  of undertakings  is, on the contrary,  particularly 
important  for  further  harmonious  development. 
Therefore  the  Committee  feels  that  it is essential 
that due  attention  be given  to the  interest  of small 
and medium-sized  undertakings  in the framework  of 
the industrial  policy. 
The creation  in the  European  Community  of con-
ditions  similar  to those  of a domestic  market  is, 
however,  a prerequisite  for  a dynamic  structural 
policy  at Community  level.  Moreover,  European 
undertakings  and  industrial  structures  can  only  be 
formed  in a uniform  investment  and  sales  area.  The 
Committee  therefore  supports  the  Commission's 
efforts  to remove  as quickly  as possible  the persisting 
technical,  legal,  fiscal  and  administrative  obstacles  to 
trade  and  cooperation  between  undertakings.  The 
Committee  feels  that  a greater  political  determination 
to achieve  Community  solutions  and  an increasing 
switch  to majority  decisions  in the  Council  would 
considerably  speed  up decision-taking  at Community 
level. 
The Committee  stresses  the  importance  it attaches 
to the achievement  of economic  and  monetary  union, 
inter  alia  as a prerequisite  in the  industrial  policy 
context.  Differences  between  the economic  structures 
and trends  in Member  States  lead,  as do speculative 
capital  movements,  to changes  in parities,  controls  on 
movements  of capital  and  foreign  exchange  control 
measures.  These  are detrimental  to the free  flow  of 
trade  and  are in the long  term  incompatible  with  the 
common  market.  They  contribute  to the  failure  of 
European  undertakings  to gear  their  investment 
No C 115/10 Official  Journal  of the European  Communities 28. 9. 74 
decisions  and  other  long-term  planning  to the  larger 
market.  The  Committee  demands  emphatically  that 
all concerned  should  be willing  to work  for  genuine 
progress  towards  economic  and  monetary  union,  so 
that the  Community  can  enter  the  final  stage  on 
schedule  in 1980.  The  Section  for  Economic  and 
Financial  Questions  is currently  discussing  the  pre-
conditions  for  the  development  of economic  and 
monetary  union. 
B. SPECIFIC  COMMENTS 
I. Removal  of technical  barriers  to trade 
The varying  legal  provisions  and  standards  which 
exist  in the  individual  Member  States  hinder  trade 
and competition.  The  removal  of these  obstacles  is 
one of the essential  prerequisites  for the development 
of a single  domestic  market  in the Community.  The 
Committee  therefore  recommends  a speeding-up  of 
work  on the  removal  of legal  and  technical  barriers 
to trade.  In this  context,  the  Committee  refers  to 
its Opinion  on  the  General  Programme  for  the 
Removal  of Technical  Barriers  and  also  on  the 
supplement  thereto. 
The Committee  welcomes  the  fact  that  in removing 
technical  barriers  to trade  the  Commission  intends 
to give  consideration  to protecting  the individual  and 
the environment.  However,  the  Committee  feels  that 
consideration  must  also  be  given  to  protecting 
consumers  against  deception  and  misleading  presen-
tation.  Consumers  should  be involved  to a greater 
extent  in work  on the  removal  of technical  barriers 
to trade.  The  Commission's  consumer  service  could 
be a first  step  in this  direction. 
The Committee  points  out  to the  Commission  that 
the timetable  for  the  removal  for  technical  barriers 
contained  in the  Annex  to the  Memorandum  does 
not list certain  directives  on foodstuffs. 
Point  12 
The Committee  approves  the Commission's  efforts  to 
ensure  that  the removal  of technical  barriers  does  not 
narrow  the range  of possibilities  open  to consumers. 
In any  case  the  Commission  should  discuss  the 
necessary  and  possible  rules  with  all interested  parties, 
such as industry,  commerce,  the  crafts  sector  and 
consumers.  The  consumer  has  an interest  in really 
benefiting  from  the  removal  of technical  barriers  to trade  between  the  Member  States.  This  interest  is 
served  by efforts  to introduce,  for  certain  products, 
common  standards  which  provide  the consumer  with 
a better  overall  view  of the  market  and  can  also 
provide  cost  advantages  for the producers  themselves. 
The Committee  welcomes  the Commission's  objective 
of removing  'the  most  important  and  most  serious 
technical  barriers  to trade  within  the  next  five  years'. 
However,  in view  of previous  experience,  the  Com-
mittee  wonders  whether  the  deadline  for  adoption 
laid down  in Annexes  2 to 7 can  be met,  if only 
because  of the large  volume  and  technical  difficulties. 
In every  case  simple  and  adjustable  harmonization 
solutions  should  be laid  down.  For  the  same  reason 
Directives  should  only  specify  the protection  objective 
and the  basic  requirements.  Details  could  be dealt 
with  by the  appropriate  self-governing  bodies,  e.g., 
by reference  to standards. 
Point  14 
The Committee  agrees  with  the  Commission's 
intention  of putting  the emphasis  on Directives  which 
ential  relatively  smaller  technical  difficulties  or involve 
fewer  political  reservations. 
Point  IS 
The Committee  has  no objections  in principle  to the 
so-called  adjustment  to technical  progress  procedure. 
However,  in view  of the  considerable  financial  and 
organizational-staff  expenditure  which  the use  of the 
corresponding  Committees  would  entail,  the  Com-
mittee  recommends  the  Commission  to rely  more 
on the results  of the European  standards  organizations. 
As regards  consultation  of the  occupational  circles 
involved  during  the  preparation  of the  necessary 
adaptation  measures,  the  Committee  refers  to the 
comments  in its Opinions  (*) on the  General  Pro-
gramme  for the removal  of technical  barriers  and  the 
supplement  thereto.  In suitable  cases  the Commission 
should  make  the reference  to standards  in Directives, 
as has  already  been  done  in the  case  of the  draft 
directive  on low  tension  (cf also  the  comments  on 
Point  12). 
Point  16 
The Committee  notes  the  Commission's  proposal  to 
submit  an annual  report  on  'any  modification  or 
|. 
(]) Published  in OJ No C 132,  6. 12. 1968  and  No C 131, 
13. 12.  1972  respectively. 
28. 9. 74 Official  Journal  of the European  Communities No C 115/11 
extension  of the  original  timetable'  set out  in the 
general  programme  and  the  supplementary  pro-
gramme.  The  Committee  suggests  that  the  Com-
mission  should  consider  whether  the  annual  report 
could  be supplemented  by further  relevant  documen-
tation,  e. g., an annual  progress  report  in all official 
Community  languages  on the work  on Directives  (for 
Directives  which  have  been  adopted,  the  date  of 
promulgation  and  the publication  should  be given;  in 
the case  of Directives  which  have  not yet been  adopted, 
additional  information  such  as the stages  of procedure 
still open  before  adoption  etc.,  should  be given).  In 
particular  the  annual  report  should  state  how  far 
individual  countries  have  taken  national  adaptation 
measures  within  the prescribed  period  and  in accord-
ance  with  the Directives. 
Point  17 
It seems  important  to remove  all barriers  to trade  in 
branded  pharmaceuticals  between  the Member  States 
as quickly  as possible.  In this  connection  the  Com-
mittee  points  out that  free  trade  in goods  has not yet 
been  achieved  in other  sectors  either. 
II. The  gradual  and  effective  extension  of the  right 
to tender  for public  and  semi-public  supply  contracts 
in the Community 
The Committee  supports  the  objective  of a mutual, 
gradual  extension  of the  right  to tender  for  public 
contracts  and  reciprocal  penetration  in this  field.  In 
practice  this  means  that  entrepreneurs  from  Member 
States  will  be able  to tender  freely  for public  con-
tracts  throughout  the Community  and  certain  uniform 
rules  will  be laid  down  for  public  contract  award 
procedures.  In the  building  sector  this  has  already 
been  done  by the  coordinating  Directive,  but  a 
corresponding  Directive  has  still  not  been  adopted 
for the  supply  sector.  The  Economic  and  Social 
Committee  feels  that  the Directive  on the coordination 
of public  supply  contracts  should  be adopted  as 
quickly  as possible,  account  being  taken  of its 
suggestions  on the  matter.  At the  same  time  efforts 
must  be made  to speed  up the  harmonization  of 
national  systems  for  standards  and  technical  regu-
lations.  A more  far-reaching  standardization  could 
take place  on the basis  of experience  obtained  from 
coordination  of the award  procedure. 
The Committee  agrees  with  the Commission  that,  in 
addition  to the  legal  preconditions  which  have  still 
not been  fulfilled,  there  is a 'range  of historical  or 
psychological  barriers'  to the  effective  extension  of 
the right  to tender  for public  contracts.  However,  the 
Commission  should  not underestimate  the effect  of the attempts  at standardization  already  taken  or intended. 
However,  in addition  the  psychological  barriers  and 
those  rooted  in the past  must  be removed  in order 
to create  a domestic  market  in the  public  supply 
contract  sector.  It is doubtless  a prerequisite  for this 
that all Member  States  should  not  merely  stress  the 
political  will  to achieve  European  integration  again 
and again  but  should  give  it tangible  form  by 
practical  decisions  on the further  development  of the 
Community. 
The unsatisfactory  level  of trade  in goods  and  services 
in the public  sector  is due  partly  to special  admini-
strative  features  and  also  to the fact  that  the Govern-
ments  of the Member  States  often  use public  contracts 
as an instrument  of their  national  short-term  economic 
and structural  policies.  Until  such  times  as a uniform 
economic  policy  is pursued  within  the  Community 
there  will  of necessity  be a lack  of reciprocity  and, 
as a result,  of willingness  to integrate. 
A genuine  comparability  of tenders  is an essential 
precondition  for  the  integration  of the  markets  for 
public  contracts.  The  fact  that  taxes,  technique  and 
laws  have  not  as yet been  harmonized  to any  great 
extent  and  the diversity  of State  aid to research  and 
development  all lead  to different  and  thus  sometimes 
non-comparable  bases  for costing  between  competing 
domestic  and  foreign  tenderers.  The  genuine  liberaliz-
ation  of the public  award  system  would  also  make  it 
possible  to take  more  advantage  of technical  pro-
gress. 
The Committee  feels  that  along  with  the  liberaliz-
ation  of public  supply  contracts,  the coordination  of 
the award  procedure  and  the harmonization,  necessary 
in this  context,  of taxes  and  national  systems  for 
standards  and  technical  regulations,  it is necessary  to 
work  for maximum  simplification,  which  would  make 
it easier  for small  and  medium-sized  undertakings  to 
obtain  such  contracts. 
The Committee  feels  that  it is essential  that  any 
detrimental  effects,  on the  industrial  employment 
sector,  resulting  from  the extension  of the  right  to 
tender  for  public  supply  contracts,  should  be offset 
by suitable  measures  which  should  be taken  swiftly 
where  necessary. 
Point  19 
The Committee  agrees  with  the Commission  that  in 
some  sectors  extension  of the  right  to tender  for 
public  contracts  can  lead  to firms  benefiting  from 
the financial  advantages  of economies  of scale.  More-
over some  undertakings  are already  capable  of large-
No C 115/12 Official  Journal  of the European  Communities 28. 9. 74 
scale  production  particularly  if they  supply  third 
countries  as well  as the national  market. 
Large-scale  production  can  undoubtedly  offer  advan-
tages  from  the business  economics  angle.  However  to 
allow  small  and  medium-sized  undertakings  to respond 
to public  calls  for  tender,  such  calls  for  tenders 
should,  where  this  is technically  and  economically 
warranted,  allow  an awarding  body  to divide  a con-
tract  into  parts,  the  price  stipulations  for  each  part 
being  the  same  as those  specified  in the  call  for 
tenders  for  the  entire  contract.  Liberalization  and 
harmonization  of public  supply  contracting  should 
not spell  the  end  of custom  work  which  is precisely 
an area  where  market  requirements  are  satisfied  by 
small  and  medium-sized  undertakings  too. 
Point  20 
The Committee  would  like  to know  on what  legal 
foundation  the  Commission  intends  to base  its 
'collateral  and  additional  measures'. 
Point  21 
The Committee  requests  the  Commission  to clarify 
whether  and  to what  extent  the three  EEC  Directives 
which  have  already  come  into  force  for the award  of 
public  contracts  have  been  implemented  in the Mem-
ber States: 
— Council  Directive  of 26 July  1971  concerning  the 
abolition  of restrictions  on freedom  to provide 
services  in respect  of public  works  contracts  and 
on the  award  of public  works  contracts  to 
contractors  acting  through  agencies  or branches; 
— Council  Directive  of 26  July  1971  concerning 
the coordination  of procedures  for the award  of 
public  works  contracts; 
— Commission  Directive  of 17 December  1969  on 
the supply  of goods  to the  state,  its territorial 
authorities  and  other  legal  persons  under  public 
law. 
Point  22 
The proposal  for  a Council  Directive  coordinating 
the procedures  for  the  award  of public  supply  con-
tracts,  which  is a supplement  to the  liberalization 
Directive,  contains  provisions  which  are  largely 
parallel  to those  of the  Directive  coordinating  the 
award  of public  works  contracts.  The  Committee 
therefore  trusts  that  the  Council  of Ministers  will 
adopt  the proposal  by the end  of 1973. Point  23 
The Committee  feels  that  general  inclusion  in the 
public  contract  system  of 'semi-public  contracts', 
wich  in some  cases  are very  substantial,  would  cause 
great  difficulties  if only  because  of the  difference 
which  exist  in the various  Member  States  in the legal 
structure  of these  undertakings.  The  Commission 
has however  already  announced  special  Directives 
for public  transport  undertakings,  and for undertakings 
which  supply  energy  and  water.  The  Committee 
recommends  the  submission  of these  supplementary 
Directives,  which  cover  a considerable  proportion  of 
semi-public  contract-awarders.  The  knowledge  and 
experience  gained  in the preparation  and  implementa-
tion of these  Directives  would  at a later  date  facilitate 
discussion  of the whole  problem  of 'public  under  — 
takings'  and  'undertakings  entrusted  with  services 
of general  economic  interest'. 
Point  25 
The Committee  feels  that  the  Commission  should 
first activate  the  advisory  committees  which  have 
already  been  set  up or been  provided  for  in the 
coordinating  Directives. 
There  are  already  considerable  contacts  between 
business  undertakings  and  public  bodies  which  award 
contracts.  If the  Commission  uses  the  existing 
Directives  to end  discrimination  against  foreign 
tenderers,  these  contracts  will  be  automatically 
intensified  in international  trade  too.  The  Committee 
has misgivings  about  any  intention  to establish  a 
'supranational  agency'  for the public  contract  system. 
Point  27 
The Committee  supports  the  Commission's  proposal 
to introduce  instruments  suitable  for  providing 
precise  statistics  and  not just  estimates  of the situation 
as regards  the  extension  of the  right  to tender  for 
public  contracts. 
Point  28 
Nowadays  there  is already  very  close  international 
cooperation  in fields  of direct  common  interest, 
particulary  railways  and  telecommunications.  The 
existing  numerous  bodies  operate  across  the  Com-
munity's  borders  in some  cases.  It appears  appropriate 
that the  Commission  too  should  work  for  a coordi-
nation  of the  various  national  and  international 
activities.  The  considerable  experience  already  gained 
in the various  international  organizations  shows  that 
well-founded  expert  studies  of the  existing  technical 
28. 9. 74 Official  Journal  of the European  Communities No C 115/13 
opportunities  for  integration  are  more  effective  than 
theoretical  objectives. 
The establishment  of 'European  companies'  is men-
tioned  in connection  with  the  public  services  sectors. 
The Commission  should  explain  what  form  and 
internal  structure  it envisages  for  these  companies. 
III. The  promotion  of competitive  undertakings  on 
a European  scale 
The Committee  is pleased  that  the  Commission's 
objective  is the speediest  possible  removal  of residual 
legal  and  fiscal  obstacles  to the  creation  of European 
undertakings.  In this  context,  the Committee  reaffirms 
its view  that  within  the  legal  framework,  decisions 
as to the  size  and  structure  of undertakings  must 
remain  the  responsibility  of each  individual  under-
taking.  Measures  aiming  at the  removal  of obstacles 
to combinations  must  be  supplemented  by  a cor-
responding  measure  for encouraging  competition. 
Point  29 
The Committee  welcomes  the  Commission's  state-
ment  that  in addition  to creating  optimum  conditions 
for the formation  of European  undertakings  it intends 
to intensif  measures  to  combat  cartels  and  to 
increase  efforts  to eliminate  the  abuse  of dominant 
positions. 
The Committee  is of the  opinion  that  the  intensity 
and effectiveness  of competition  can  in fact  depend 
on undertakings  having  a transnational  character; 
however  this  is not  generally  the  case.  The  effective-
ness  of competition  — irrespective  of whether  it is 
between  national  or transnational  undertakings  — 
depends  crucially  on  the  implementation  of  a 
genuine  common  market  with  free  movement  of 
goods,  persons  and  capital. 
Point  30 
The Committee  is of the  opinion  that  effective 
precautions  should  be  taken  at Community  level 
against  business  combinations  where  they  endanger 
efficient  competition. 
The Committee  will  deal  in more  detail  with  the 
methods  for  doing  so when  it discusses  the  Com-
mission's  proposal  for  a Regulation  introducing  a 
European  control  of concentrations  between  under-
takings. Combinations  can  and  should  lead  to structural 
improvements  which  are  in the  interests  of the 
economy  and  of  employed  persons  as  a group. 
However,  restructuring  can  initially  have  an adverse 
effect  on  persons  employed  in  the  undertaking 
concerned,  e.g.,  if establishments  are  closed  totally 
or partially.  The  Commission  should  devote  special 
attention  to this  problem.  Some  time  ago  a group  of 
governmental  experts  was  formed  to deal  with  these 
problems  in Directorate  General  V of the  Com-
mission. 
Point  32 
The Committee  would  like  to know  what  the  Com-
mission  means  by 'approximation'  of company  law. 
Article  54 (3)  (g)  of the  Rome  Treaty  only  refers 
to the 'coordination'  of company  law. 
Point  34 
The Committee  welcomes  the  Commission's  efforts 
to speed  up the  harmonization  of company  law.  The 
Committee  had  already  delivered  opinions  on  the 
proposals  for Directives  on the  setting  up,  the  capital, 
and mergers  of public  limited  liability  companies 
(societes  anonymes)  and  on the  annual  accounts  of 
limited  companies.  An  opinion  is being  prepared  at 
the moment  on the  fifth  Directive  dealing  with  the 
structure  of public  limited  liability  companies. 
The Committee  considers  that  the  harmonization  of 
the laws  governing  cooperatives  and  private  limited 
liability  companies  must  be pushed  ahead  rapidly. 
In this  connection,  care  must  be taken  to ensure  that 
due consideration  is given  to the  special  charac-
teristics  of small  and  medium-sized  undertakings, 
when  these  legal  forms  are  being  coordinated,  and 
to ensure  that  no impediments  are  put  in the  way  of 
the foundation  and  existence  of such  legal  entities. 
Point  35 
Referring  to its  Opinion  (J)  delivered  in October 
1972,  the  Committee  recommends  that  the  Council 
take  a Decision  as soon  as possible  on a European 
Company  Statute.  If the  Commission  alters  its 
proposals  on this  matter  the  Economic  and  Social 
Committee  would  have  to be consulted  again.  This 
would  also  give  the  representatives  of the  three  new 
Member  States  of the  Community  the  opportunity  to 
express  their  views  on this  complex  of questions. 
(!) See  OJ No C 131,  13. 12. 1972,  p. 32 et seq. 
No C 115/14 Official  Journal  of the European  Communities 28. 9. 74 
Furthermore  the Committee  recommends  the creation 
of a Community  legal  form  for undertakings  which 
meets  the  requirements  of small  and  medium-sized 
undertakings. 
Point  36 
The Commission  believes  that  the  cooperation  of 
workers  as well  is of the greatest  importance  for the 
nascent  European  economic  and  social  community. 
In this  spirit  the Committee  recommends  that  workers 
should  be kept  informed  of the  conditions  under 
which  their  firms  are operating  and  developing  and 
that they  participate  in the  decision-making  in 
accordance  with  suitable  procedures.  These  pro-
cedures  will  also  have  to be tailored  to the size  and 
structure  of the  enterprises  in question.  In this 
context  the  Economic  and  Social  Committee  refers 
however  to its comments  on this  matter  in its Opinion 
of 25 October  1972  on the statute  of the European 
Company.  The  Committee  also  points  out  that  it is 
currently  preparing  an opinion  on the fifth  Directive 
for the coordination  of company  law. 
Point  38 
The Committee  refers  to the  legal  and  practical 
reservations  which  it expressed  in its Opinion  (x) on 
extending  the status  of joint  undertakings  to include 
the non-nuclear  sector,  even  though  it approved  the 
objectives  of the Commission  proposal. 
The question  arises  as to whether  it would  not  in 
fact be appropriate  to state  clearly  once  and  for all 
what  goals  are  being  pursued  in the  field  of 
company  law  and  its harmonization.  When  new 
legal  forms  for  cooperation  between  undertakings 
are continually  being  discussed,  there  is a danger  of 
confusion.  In addition  to conventional  company  law 
and its harmonization,  and  the  creation  of a new 
European  company  law,  a specific  legal  form  should 
be introduced  for  temporary  cooperation  between 
undertakings  for  the  attainment  of  a specific 
objective,  and  the relevant  statute  should  be drafted 
accordingly. 
Point  39 
The Committee  recommends  that  the  European 
procedure  for awarding  patents  be ratified  as quickly 
as possible.  The  Committee  also  recommends  the 
introduction  of an EEC  patent  which  would  simplify 
matters  considerably  for  undertakings  and  reduce 
their  costs. 
The Committee  recommends  the  quickest  possible 
conclusion  and  ratification  of the agreement  on the international  mergers  of companies,  which  has  been 
discussed  for a long  time. 
Point  40 
The Committee  agrees  with  the  Commission's  view 
that 'taxation  obstacles  are  undoubtedly  one  of the 
main  factors  hindering  the  cross-frontier  re-
structuring  of undertakings',  and  that  they  should 
be removed  as quickly  as possible. 
Point  41 
The Committee  recommends  that  the  movement  of 
capital  within  the  EEC  be liberalized  as quickly  as 
possible.  A first  step  an this  direction  would  be to 
apply  the existing  controls  to the movement  of capital 
to and  from  third  countries  only.  Further  liber-
alization  should  take  place  as part  of the  develop-
ment  towards  economic  and  monetary  union  during 
which  efforts  should  be made  to achieve  the  most 
rapid  progress  possible. 
Point  42 
The Committee  welcomes  the  fact  that  the  Com-
mission  sees  the problems  of small  and  medium-sized 
undertakings  in the context  of industrial  policy.  The 
Committee  feels  that  greater  consideration  will  have 
to be given  to the interests  of those  undertakings  in 
other  sectors  also  (e.g.,  the public  contract  system) 
and by  participation  in Community  development 
contracts  (2). The  financial  resources  for these  should 
be geared  to the objective  in question. 
The Commission  recently  established  a 'business-
cooperation  centre'.  When  this  has  passed  the 
preliminary  stage  it would  be interesting  to receive, 
not only  statistical  material  about  the  activities  of 
this centre,  but  also  information  about  its  ex-
periences.  Subcontracting  is an important  form  of 
cooperation  between  undertakings  of all sizes.  There-
fore an examination  should  be made  of the possibility 
of expanding  at a later  date  the  terms  of reference 
of the  business  cooperation  centre  to include  the 
promotion  of subcontracting.  This  centre  seems  to 
be particulary  suitable  for  promoting  the  sub-
contracting  system.  Its terms  of reference  should 
therefore  be extended  accordingly. 
Point  44 
In principle,  the  Committee  welcomes  the  idea  of 
promoting  the creation  of a 'facility  for financing  by 
(') See  OJ No 131,  13. 12. 1972,  p. 15 et seq. <2) See  ESC  Opinion  in OJ No  C 69, 28. 8. 1973. 
28. 9. 74 Official  Journal  of the European  Communities No C 115/15 
risk capital'  since  small  and  medium-sized  under-
takings  are faced  with  considerable  problems  because 
of their  relatively  small  'own  capital'.  Before 
discussing  this  problem  in greater  depth  more  precise 
information  as to the  objectives  and  procedures 
would  be required. 
IV. Sectors  with  special  problems  — advanced 
technology  industries  and  industries  in crisis 
The Committee  reiterates  its belief  that  efficient 
competition  is a fundamental  prerequisite  for 
dynamic  adaptation  and  renewal  of industrial  struc-
tures.  National  action  must  be coordinated  as quickly 
as possible  in order  to avoid  any  distortion  of 
competition.  If it is not  possible  to bring  about 
effective  competition  in the  Community  e.g.,  for 
technical  reasons  or if no attempt  is made  to do so 
because  of the  need  for  raw  material  security,  a 
Community  framework  should  be found  for  the 
measures  envisaged.  In this  connection  the Committee 
attaches  special  importance  to the  encouragement 
of technical  developments. 
On the  other  hand  industrial  policy  must  not  be 
restricted  to clearing  up crisis  situations  but  must 
attempt  to prevent  such  situations  developing.  In 
doing  so, due  consideration  must  be given  to the 
objectives  mentioned  in point  4 (improvement  in the 
quality  of life,  working  conditions  and  the  environ-
ment). 
The Economic  and  Social  Committee  is currently 
preparing  a study  on the  situation  of small  and 
medium-sized  undertakings.  As soon  as this  study 
has been  adopted,  its conclusions  and  recommend-
ations  should  be incorporated  in the  technological 
and industrial  policy  programme. 
Point  46 
The Committee  considers  that  market  transparency 
would  be increased  by providing  undertakings  with 
better  information  about  data  of particular  relevance 
to their  investment  decisions.  However  the  Com-
mittee  objects  in principle  to publication  of invest-
ment  projects.  It is true  that  such  a procedure  could 
be of advantage  to individual  undertakings  but  there 
is a danger  that  the guiding  function  of the market 
might  be eliminated  particularly  when  the procedure 
leads  to investment  planning.  The  Committee  there-
fore welcomes  the  Commission's  statement  that 
'respect  will  be ensured  for the principles  of compe-
tition  and  of the  freedom  of decision  of the  firms 
concerned'. Point  47 
The Committee  points  out  that  joint  trade  policy 
should  create  equal  competition  conditions  on third 
country  markets  for European  undertakings. 
Point  SO 
The Committee  stresses  the necessity  for coordinating 
the sectoral  structural  policies  of the Member  States. 
Differing  sectoral  measures  lead  to distortions  of 
competition  which  prevent  a sound  division  of labour 
and higher  industrial  productivity. 
Point  51 
It should  be pointed  out  that  the  Commission's 
proposals  for  individual  economic  sectors  are  of 
special  interest  for the occupational  circles  represented 
in the  ESC.  The  Section  responsible  for  industrial 
matters  therefore  stresses  that  these  proposals  should 
be submitted  to it to give  it the  opportunity  of 
examining  problems  which  arise  in  individual 
industries.  In this  context  the question  of the spheres 
of competence  of the  Community  institutions  is 
particularly  important. 
Moreover,  the Committee  points  out that  the removal 
of technical  barriers  is particularly  important  for the 
sectors  mentioned  by the Commission. 
V. The  consistency  of the  industrial  policy  with  the 
other  Community  aims 
The Committee  feels  that  industrial  policy  cannot 
be seen  and  pursued  in isolation;  on the  contrary, 
it is part  of overall  economic  policy.  The  course  of 
industrial  policy  must  be consistent  with  the  objec-
tives  in other  sectors,  particularly  those  of regional 
policy  (including  tourism),  and  of agricultural,  social, 
competition,  commercial  and  development  policy. 
In this  context  the  Committee  points  out  that  the 
successful  implementation  of  European  regional 
policy  is of crucial  importance  for the further  devel-
opment  of the  Community.  The  existing  regional 
imbalances  are  a breeding-ground  for  substantial 
migration  which  entails  considerable  economic  and 
social  costs  and  adds  to the  expenditure  stemming 
from  over-population  of regions  which  have  made 
greater  industrial  progress.  Industrial  policy  therefore 
must  be  synchronized  with  the  objectives  and 
measures  of a Community  regional  policy  so that 
internal  migration  can  quickly  be reduced  to a 
No C 115/16 Official  Journal  of the European  Communities 28. 9. 74 
reasonable  level  with  the aid of economic  expansion 
in peripheral  areas  and  an improvement  of living 
conditions  in  industrially  saturated  zones  also. 
However  in doing  so, care  must  be taken  to ensure 
that the  creation  of new  jobs  does  not  lead  to the 
development  or  the  maintenance  of  obsolete 
structures. 
Point  53 
The Committee  agrees  with  the  Commission  that 
the 'social  aspects  in areas  affected  by considerable 
structural  changes  must  be watched  constantly  so 
that the necessary  transformation  process  takes  place 
under  socially  acceptable  conditions'. 
The Committee  commends  the Commission's  efforts 
to achieve  greater  transparency  of the labour  market. This  requires  intercomparability  of national  statistics 
and of occupational  qualifications. 
Point  56 
The Economic  and  Social  Committee  will  deliver  a 
separate  Opinion  on the  Commission's  proposal  for 
the introduction  of a Community  guarantee  system 
for private  investments  in third  countries. 
Done  at Strasbourg,  29 November  1973. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPA,S 
ANNEX 
to the  Opinion  of the  Economic  and  Social  Committee 
The following  amendment  was  rejected  in the course  of the  proceedings: 
Point  46: 
It is proposed  that  the  text  of point  46 be replaced  by the following: 
'The  Section  agrees  with  the  Commission's  proposal  that  better  information  on market 
prospects  and  investment  projects  is necessary'. 
Reason-. 
Better  information  is needed  to be able  to avoid  industrial  congestion  and  overproduction  and  to 
stimulate  the development  of backward  regions  or regions  that  are  in decline. 
Result  of  the  vote: 
for: 22 
against:  24 
abstentions:  9.