Opinion of the Economic and Social Committee on the 'Communication from the Commission: Priorities for consumer policy (1996-1998)` (96/C 295/14)

On 6 February 1996 the Commission consulted the Economic and Social Committee, under Article 129a of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Protection of the Environment, Public Health and Consumer Affairs, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 7 May 1996. The Rapporteur was Mr Koopman.

At its 337th Plenary Session (meeting of 11 July 1996), the Economic and Social Committee adopted the following Opinion by 111 votes to three, with five abstentions.

The Committee fully endorses the new directions in the communication from the Commission: Priorities for consumer policy (1996-1998) and the considerations upon which these choices are based.

The Committee has made a number of observations on these priorities and hopes the Commission will take note of these views. These priorities for action are subsequently:

1. a major effort to improve consumer education and information;

2. completion, review and updating of the framework needed to ensure that consumers' interests are fully taken into account in the single market;

3. the consumer aspects of financial services;

4. the protection of consumers' interests in the supply of essential services of public utility;

5. measures to enable consumers to benefit from the opportunities presented by the Information Society;

6. measures to improve consumer confidence in foodstuffs;

7. encouragement of a practical approach to sustainable consumption;

8. strengthening and increasing consumer representation;

9. assistance for Central and Eastern European countries to develop consumer policies;

10. consumer policy considerations in developing countries.

1. General remarks

1.1. This is the sixth plan of activities for EC consumer policy. The first (five year) programme of activities was launched in 1975. Its achievements were very modest as hardly any proposed measure was adopted at the expiry of the plan period. Much progress has since then been made resulting in a substantial improvement in the protection of the interests of consumers which also illustrates that consumer policy has gained a firm position in the policies of the Community ().

1.2. This positive judgement should not be misunderstood. There is no room for complacency, as much still needs to be achieved. In this respect it is a pity that, in this communication, the Commission did not analyze, or otherwise look back to, what successes and shortcomings it had experienced with respect to the activities it had set out to do when it presented its last three-year Action Plan that expired at the end of 1995 (). For such analysis and accountability may yield insight into the efficacy of the instruments and powers for pursuing the stated objectives. It may help to account for policy proposals which were not accomplished and to better shape policies.

1.3. It would, for example, be useful to know of the Commission's judgement on the functioning of Article 129a. It should also be established how the legislation enacted in the first and second three-year Action Plans has been implemented and handled. Furthermore, it is relevant to know what it intends to do with 'left overs` from the second three-year action plan such as the issue of food claims.

1.4. The Committee agrees with the Commission that it is now time 'to face up to other questions and problems which confront consumers`, than those that are exclusively linked to completing the internal market. It fully endorses the new directions in the communication and the considerations upon which these choices are based. It recognizes, however, that the single market is far from complete. Much still remains to be done in order to create and stimulate consumer confidence in the single market, as the Commission also acknowledges in its various reports (). A conscious adherence to consumer rights is a basic condition for gaining that confidence from the consumer.

1.5. In this context, it surprised the Committee that the Commission did not make any reference to the significance of competition policy for the attainment of consumer (policy) objectives. Competition policy essentially aims at opening up markets and preventing firms from unjustly appropriating benefits from restrictive trade practices at the expense of consumers and enterprises that adhere to the rules of competition. These benefits for the consumers express themselves in more choice, in a supply of goods and services that is better tuned to consumer needs and in lower prices.

1.6. The ESC would also have liked to find a reflection by the Commission on the significance of its choice of priorities from the angle of subsidiarity. Where does the Commission aim at proposing harmonized solutions and where does it intend to leave Member States a framework, or other instruments, to help them find solutions for problems? The fact that the Commissioner responsible for consumer policy will not occupy the driver's seat for most of these subjects also deserves attention from the Commission; the Committee is interested to learn whether the Commission sees the need for further measures to facilitate the integration of the consumer aspect into these other policies.

1.7. From an analytical point of view, the message contained in this communication would have gained in persuasion if a strict format had been applied: (1) problem identification, (2) goals for consumer policy and (3) strategy.

1.8. The new directions in the communication also illustrate an important feature of consumer policy: due to its horizontal nature, it always follows economic and other societal developments. It moves with the tide. In that sense consumer policy is never finished.

1.9. The ESC urges the Commission to come forward quickly with concrete proposals in which the often vague ideas offered in these priorities will be given substance. Nobody expects from the Commission that it spell out at this stage already the precise action needed to attain the aims in these new areas, but first steps on the road towards more substance should be set before long. The aim of this Opinion is to contribute to the public debate needed to achieve more clarity and the ESC hopes that other players will do likewise.

1.10. The ESC refers to its recently adopted Opinion on the 'Single market and consumer protection: Opportunities and obstacles in the internal market` () in which a number of important judgements and recommendations were made which are not repeated here.

2. The priorities

2.1. Information and education 2.1.1. Information and education have always been cornerstones of consumer policy and their fundamental significance has long been recognised as shown by the fact that the European Summit back in 1972 proclaimed them as one of the five consumer rights. Consumer choice lies at the heart of any market-led economy and informed choices are not possible without a transparent market place.

2.1.2. The Committee fully endorses the priority for information and education. It stresses the need for visible, legible and understandable information. The consumer should be informed about his rights and obligations in order to use them properly. To make information meaningful, language must be clear.

2.1.3. The suppliers of goods and services in dialogue with consumer organizations could improve the quality of sector-specific labelling. Recent initiatives to develop, subscribe to and introduce sectoral product information codes at the European level should be continued. The development of standard product information () is a key contribution towards improving market transparency. For the integration of these aspects into a successful marketing strategy, in cooperation with organizations with demand-side knowledge and 'centres of excellence` (of which the communication speaks), better use may be made of the producer's own knowledge of the properties and functioning of his products.

2.1.4. Irrespective of the obligation of the suppliers to inform the consumer correctly about the products and services on offer, the ESC insists that consumer organizations also exist to provide independent advice and information to the consumer.

2.1.5. The Committee stresses the crucial role of Member States in promoting consumer education, without which much information would fall on deaf ears. Basic knowledge on consumer rights and duties and the functioning of markets have to be acquired in order to assess information. Consumer education should start in primary school.

2.1.6. The ESC suggests to the Commission that, in the interests of improved European consumer information, a reference framework be established for educational policy, ranging from basic education through to university-level studies, in order to enable the Member States to compare positive action in this regard.

2.1.7. Continuous training in consumer matters at the various levels should also be provided for educators.

2.1.8. The Committee requests the Commission to clarify what actions it intends to take in response to the Council Resolution of November 1995, calling on it to study before the end of 1996 whether an initiative at European level to improve the exchange of information and cooperation between Member States in the field of consumer education was necessary.

2.1.9. While endorsing this priority, the ESC does not consider these efforts should be at the expense of other vital interests of the consumer.

2.2. The legislative framework and the single market 2.2.1. The ESC welcomes the proposal for a Directive on injunctions for the protection of consumer interests and the communication from the Commission regarding an 'Action Plan on consumer access to justice and the settlement of consumer disputes in the internal market` (). It agrees that both initiatives, on which it is preparing a separate Opinion, will contribute to the completion of the single market.

2.2.2. The Committee considers that, from the consumer's point of view, the completion of the single market requires further measures. It refers in particular to its comments on the shortcomings of Article 129A () and expresses the hope that this Article may be revised in the process of the IGC as also suggested by some members of the Reflection Group. Furthermore it notes with satisfaction that as follow-up to the Green Paper on guarantees and after-sales services (), the Commission has now presented a proposal on which it will be issuing its Opinion. The Committee urges the Commission to come forward with a proposal to amend the Product Liability Directive with a view to extend its scope to non-processed agricultural products (). Finally, the ESC is eager to learn about new initiatives of the Commission with respect to service liability and would urge the Commission to study whether there is a need for legislative action at EU-level to protect consumers in the face of the increasing diversity of commercial practices used to sell services.

2.2.3.1. The ESC welcomes the Commission's statement that it will ensure that single market legislation is properly implemented and notes its current work on evaluation of the enforcement of legislation, assessing its effects on the consumer and suggestions for necessary adjustments. It is particularly interested in such analyses of product liability and product safety legislation.

2.2.3.2. The ESC recalls in this context the Commission's and Parliament's stated intention to work closely with the ESC, which 'combines technical knowledge with the political sensitivity needed` () for a constant evaluation of the effectiveness of Community rules. The Committee reconfirms its readiness to work closely on a permanent basis with the EU Institutions and the relevant professional organizations in this regard and to lend its full support to the current review of the effectiveness of the single market, assessing in particular its effects on the consumer and suggestions for appropriate adjustments.

2.2.3.3. In that perspective the Committee invites the Commission to bring forward proposals for improved structures for interchange of information at Community level with the aim of ensuring systematic and consistent monitoring, analysis and information on hazards and risks to which consumers in Europe are exposed and the effective implementation of existing Community regulations and actions.

2.2.4. The consumer will generally profit from increased competition in the market sector and a further liberalization (subject to safeguarding vital societal interests) of markets. In order to stimulate consumer confidence in the single market, genuine efforts to free still heavily protected markets ought to be undertaken. A review of the Common Agricultural Policy from the consumer's point of view is called for. Equally important are the Commission's efforts to liberalize the energy market. Finally, measures are warranted for preventing concerted practices in fixing passenger air fares ().

2.3. Financial services 2.3.1. The Committee welcomes the enumeration of issues which are mentioned. It would appreciate a timetable for the actions that the Commission considers.

2.3.2. The ESC welcomes the proposal by the Commission with respect to the further examination of the consumer credit market () and the remedy for the exclusion of financial services from the Distance Selling Directive. In particular the ESC calls on the Commission to present a proposal for legislation on minimum consumer protection requirements for distance selling of financial services. It welcomes a pledge from the Banking sector to bring forward propositions to fill this gap.

2.3.3. The Committee notes with regret that, as an EBCU study and a 1994 study by Mitchell and Thomas have shown, compliance by (general) providers of bank and non-bank debit cards with the Recommendation on Payment Systems () has been very uneven and at times even dismally poor. Since it has to be concluded that these non-binding measures have yielded insufficient protection for the economic interests of card holders, the ESC urges the Commission to propose legislation which will offer the European consumer sufficient and equal protection. The rapid increase in non-bank cards necessitates speedy action. The Committee calls on the Commission to include in its proposals a discussion of the study which it sponsored in 1995 and also to look at the content of the new code of conduct proposed by the banking sector last year.

2.3.4. In financial services especially, the emergence can be observed, all over the EU, of complicated tailor-made (individual) services, containing savings, insurance and spending elements and which involve long-term contractual obligations. It is becoming increasingly difficult for consumers to choose a 'package` most suited to their needs and equally problematic to compare performance aspects of various offers. Consumers must be warned that financial markets are inherently risky and that outside the tried and tested methods of investment returns on capital cannot be guaranteed. The element of risk makes it difficult to compare offers. Although the future is by definition uncertain, experience shows that uncertainty can be contained. The relative attractiveness of different offers can be compared on the basis of: (i) standardized disclosure of the assumptions on which the institutions' forecast returns are based, (ii) standardized use of variables deemed to be outside the investment manager's control and (iii) track record. Making the information needed for well-informed choices available to the consumer is thus both possible and highly desirable in that it creates a level playing field for competition.

2.3.5. The Committee also considers it important to examine with care how consumers can or do benefit from the single market in insurance and where necessary to bring forward solutions for remedying problems so identified. In its capacity as Single Market Observatory it is ready to assist the EU institutions in this regard. It will be particularly concerned, given the pervasive influence of multinational factors on the European insurance market, to ensure strict enforcement of EU anti-trust rules.

2.3.6. The ESC would like to reiterate that safeguarding of consumer interests is a vital element in bringing about smooth introduction of the Single Currency (). These measures are absolutely necessary to create consumer confidence in the single market.

2.3.7. It welcomes the announcement by the Commissioner responsible for the internal market and financial services at the third European Consumer Forum of the establishment of a Working Committee of DG XV and DG XXIV. It hopes this committee will contribute to interdepartmental cooperation, the speedy introduction of the above-mentioned proposals and their timely adoption.

2.4. Public (utility) services 2.4.1. The Committee is pleased that the Commission pays attention to public services. It notes that the Commission has not defined the term 'essential services of public utility`. The Committee understands by these services (): services which are provided by the Community (central or local government or public bodies), or services which may be provided by the private sector in a regulated manner because of a government concern for the quality of, or access to, these services (health, education, public transport, museums, etc.).

2.4.2. From the consumer's point of view, attention to public services is of utmost importance, because all these services have in common that the consumer, in contrast to the (competitive) market for goods and services, either has no choice of a supplier or only a limited one. Moreover, range, quantity, quality and price of these services are not determined by the free market forces of supply and demand, but rather by political decision-makers or regulatory bodies.

2.4.3. Consequently, these markets do not always function efficiently. It is in the interest of both individual consumers and (local) governments to improve the accountability, efficiency and effectiveness with which these public services are supplied, leading to an improvement in consumer satisfaction and savings in public expenditure.

2.4.4. The Committee agrees that in certain cases more competition may be brought about by liberalizing these services, such as may be the case for (parts of) public transport services (). But it may not always be possible to render certain services because of their (near) monopoly character in a competitive manner (for example the natural monopolies of municipalities and public utilities). Moreover, Government has to ensure quality and access to essential public services. It also has to see to it that less privileged consumers are not excluded from these services.

2.4.5. Indicators for the various types of services may be developed (). The establishment of performance standards for particular public services that cannot or should not be (completely) liberalized may also help improve the quality of these services and bring about a reduction of prices. It is of prime importance to devise a standard for accountability to the consumer by providers of such services. Perhaps the experience of 'The Citizen's Charter` () and possibly other experiments () may yield relevant information. A horizontal approach to improve the quality of these public services is also possible. Horizontal aspects concern the contractual relationship between consumer and operator, models for consumer representation, complaint handling, etc. ().

2.4.6. Consumers should be involved in a participatory way by the establishment in Member States of sectoral consumer panels, especially where Regulatory Bodies control service obligations and prices. These consumer panels with representation from various socio-economic activities, including the individual citizen, should have rights to inform the user, receive and investigate complaints and refer if necessary to the Regulatory Body for sanction. They should be funded by the Regulatory Body or by the public service provider.

2.4.7. The Committee urges the Commission to issue a Green Paper to explore how the consumer voice may be strengthened in the provision of these services, their quality and the effects on prices and tariffs, recognizing that the principle of subsidiarity will place the responsibility for taking such measures primarily with the Member States.

2.5. The information society 2.5.1. In the near future almost every citizen and consumer will feel the effects of the new information and communications technology. It will bring innovation to the consumer sector as it will revolutionize the production and marketing process for goods and services. These effects will pervade the market place and areas such as health care, traffic and transfer of education. For this reason, the Committee expresses the conviction that the active participation of the consumer (organizations) in building this information society is a condition for its potential success.

2.5.2. The Commission has already presented various proposals with direct bearing on the development of the information society and on which the Committee has issued its Opinion (). Although the Commission, and of course the Committee too, have given their attention to consumer aspects, constant vigilance is required to keep abreast of new knowledge and developments. The ESC urges the Commission to work closely with it and the Information Society Forum in developing continuous analysis and to scrutinize further what all these changes imply for the consumer and what action should be undertaken by the different players to promote the full and satisfying participation of the consumer in this new Information Society.

2.5.3. The Committee agrees with the direction the Commission has set out under this heading. The design of the system requires great care so as to avoid the exclusion of large numbers of (less privileged) consumers. Consumer-friendly technology ought to be developed so that it is usable by ordinary people performing ordinary tasks.

2.5.4. The ESC points also to other important concerns, not mentioned by the Commission in its communication. It recognizes for example the potential benefits of the development of electronic medical dossiers for the treatment of patients/consumers. But before such dossiers may become operational, solutions have to be found for the protection of privacy sensitive data (). Sanctions should be provided for persons, firms, or Government for using this data without authorization. Responsibility for ensuring compliance with these obligations rests with the Governments.

2.5.5. Other concerns relate to quality standards, the further development of the concept of 'universal service`, contractual relations and conditions and the security of transactions. These aspects should also be covered in the requested communication.

2.5.6. The Commission should examine the requirements set by various operators for binding contractual agreements which have to be signed by consumers, so as to assess the need for cooling-off periods, expiration of the contract after the term without any fixed penalty and nullification of the contract in case of damaged goods or poor service.

2.6. Foodstuffs 2.6.1. The Commission's reference to consumer groups' studies about the food safety/purity control system has received a dramatic dimension in the wake of the recent EU measures with respect to the incidence of BSE in the United Kingdom. It illustrates the need for strengthening the authority of control systems, so as to reassure consumers that health concerns take precedence over economic interests with total loss of consumer confidence, the penalty for failure. The Committee is most interested in the Commission's promised analysis and proposals.

2.6.2. The Committee would be critical if the Commission's comments on food labelling were to imply that existing requirements on food labelling could be taken away. The information provided in conformity with EU labelling legislation is very important for consumers. As well as providing vital information about the expiry date of the food, instructions for use, etc., this information also includes a list of food ingredients, which is particularly important for consumers with allergies or consumers who wish to avoid certain substances for religious, health or other reasons. Furthermore, the importance of providing consumers with clear and better information about food should not be underestimated in maintaining consumer confidence in food.

2.6.3. The Committee supports the Commission's statement that certain key information needs of consumers are not met at all and recommends that the Commission bring forward proposals for legislation to require labelling of alcoholic drinks and compulsory nutritional labelling, and consider amending existing labelling rules to require the labelling of the quantity of ingredients present over a certain amount.

2.6.4. These views find support in recent European research () in six Member States. This study shows that of all the compulsory indications on food labels, the consumer is preponderantly interested in the sell-by date, the list of ingredients and storage instructions.

2.6.5. All the information has to be in the national language resulting in severe space and legibility problems on multilingual labels. Nutritional labelling is a good example. It is almost universal in the UK where labels tend to be monolingual but not elsewhere since it requires too much space on multilingual ones.

2.6.6. The Commission should therefore look at symbols to denote the various nutrients. Symbols have been successfully introduced for laundry instructions and shoe composition ().

2.6.7. The research also revealed that consumers show a lesser interest in nutritional labelling. This may be caused by the fact that consumers are not now very accustomed to nutritional labelling and therefore may not always be able to understand it easily. Major information and education campaigns will be needed to make nutritional labelling more effective. The Survey also mentions a second factor as its final conclusion (p. 28): 'Unfortunately, as it is currently presented, this information is only accessible to a minority.` It is important therefore that the information should be clearly worded. This also applies to the list of ingredients. It welcomes efforts by the Commission to review food labelling in order to make it simpler and better geared to the real needs of (the various categories of) consumers for information, subject however to account being taken of the comment in the first sentence of point 2.6.2.

2.6.8. The Committee calls on the Commission to deal with the issue of food claims in the upcoming Green Paper on food issues. Food claims are important for consumers, as they are becoming increasingly aware of the significance of a healthy diet. For that reason, strict rules should apply for the use of such claims in general and more specifically with respect to nutrient content claims.

2.6.9. The Committee is in favour of a comprehensive Regulation on novel food and novel food ingredients. It recognizes the potential benefits which these could have for consumers and the environment. In a number of Member States these genetically manufactured ingredients are already in use. EU legislation is badly needed to ensure that the safety of these foods is guaranteed at European level ().

2.6.10. Much still remains to be done to create consumer acceptance of and confidence in (permitted) genetically modified organisms in foodstuffs. The following may serve as an example to be followed elsewhere of a responsible joint approach by trade and industry and consumer organizations.

In the Netherlands an informal consultation group on biotechnology consisting of enterprises of food sector, consumer- and environmental organizations was established in 1991 to discuss conditions for responsible market introduction of genetically modified foodstuffs. This group published its results in spring 1995, as decision-making at the European level was stagnating. The agreement reached on labelling was quite similar to the second reading of the European Parliament.

2.6.11. The above Dutch group sets out the products and ingredients by category which require labelling and which are exempted from labelling. In principle, labelling obligation applies to foodstuffs and ingredients that are or contain genetically modified organisms. This obligation may be waived only if labelling is no longer meaningful for pragmatic reasons. No full agreement between parties exists on the labelling requirements for processes in which these organisms are not, or not any longer, present in a foodstuff. These subject matters are also listed and constitute the agenda for further discussion in the consultation group. The agreements reached in this group constitute an important element in the legislative process for admitting novel foods to the Dutch market. The United Kingdom also has a similar approval system for genetically manipulated foodstuffs.

2.7. Sustainable consumption 2.7.1. The Committee agrees to the need for sustainable consumption, i.e. a level of consumption (patterns) that can be sustained without harming and degrading the potential for the fulfilment of the needs of our children and grandchildren. The term 'sustainable consumption` remains, however, vague as to its content. The aim is, in general, to reduce the environmental impact of the consumption of products and services. In this connection consumers can exercise a pressure by their choices of products and services, but the extent to which they can influence the supply of goods and services is not always clear.

2.7.2. It is the producer who has the know-how to develop products in a more environmentally-friendly way and it is the Government that, given technological development, may impose stricter environmental standards for products and production processes. Government may also stimulate with fiscal measures the marketing of products with a reduced environmental impact.

2.7.3. Awareness of environmental degradation is growing among consumers and so is their willingness to play a more active role in contributing towards a more healthy environment as the successes, for instance, of the many waste-separation schemes show. The national and EU eco-labelling schemes are directed at these consumers. The objectives of these schemes are the marketing of products which cause less harm to the environment and the provision of information to the consumer about these products ().

Research has shown that consumers are prepared to buy such products (), even at prices slightly higher than comparable products, subject to the existence of reasonable performance standards. The ESC concurs with the Commission's statement that consumers can make these choices only if information is provided covering the relevant environmental and performance aspects.

2.7.4. It is unfortunate that only a few producers are as yet prepared to compete in the market place with such more environmentally-friendly products, as the results of the various national environmental schemes and the EU eco-label scheme show.

2.7.5. Also given the trade barrier implications of the national schemes, the future of environmental labelling lies with strengthening the EU scheme and retaining national schemes only for products which are typical to the national market. A first step in this direction would be further coordination of national bodies with a view to the establishment of environmental assessment criteria.

2.7.6. In the revision of Council Regulation 880/92, attention should be paid to simplifying procedures for the adoption of ecological criteria and thereby reducing the burden on the manufacturer to comply with the requirements. Also cost reduction of the system should be explored. The role of the competent bodies setting up the criteria may be strengthened. The role of the Consultation Forum is of great importance as it provides for influence by wider interests in society at the European level.

2.7.7. The ESC Environment Section Secretariat serves as the contact point for the Forum and acts as the liaison body with the Commission. It assists in the elaboration of its Opinions and also fulfils other secretarial functions. This informal provision should now be formalized in Article 6 of the Regulation, for it represents the ideal framework for the Forum's activities.

2.8. Consumer representation 2.8.1. The ESC shares the Commission's hope that its reformed consultative relationship with consumers will secure a speedy input of advice from them. Although the Committee recognizes that the new Consumer Committee has been designed according to the Commission's general model for such committees, it expresses its surprise that the Commission determines membership of the Consumer Committee as well as whether and when the Committee will meet. The right to representation clearly implies that the consumer organizations should determine who represents them and when they deem it appropriate to advise the Commission. This right should moreover not be confined to proposals in the domain of consumer policy proper, but should also extend to (important) horizontal consumer policy issues.

2.8.2. Support from the Commission for the consumer organizations in Southern Europe is important. It should be recognized that this is primarily a task for the national Governments in accordance with the principle of subsidiarity.

2.8.3. The Committee recognizes the importance of consumer representation in the field of standardization. It is pleased with the Commission's commitment to support this representation through ANEC (European association for coordination of consumer representation for standardization) as it provides an excellent platform for European standardization.

2.9. Development of consumer policy in Central and Eastern Europe 2.9.1. Although consumer policy owes its prime value to the rightful protection of the interest of the consumer, it may well be that the development of consumer policy in Central and Eastern Europe is of fundamental significance for bringing about the transition from a command economy towards a market economy.

2.9.2. The problems of these countries, especially in the former USSR, are immense and intertwined. The decline of domestic production is of staggering proportions. The market place is full of foreign goods, often of low quality, or counterfeit goods. These goods () may still be preferred to domestic consumer goods, because of the bad reputation they acquired under the command economy system. The EU and other exporting countries would be well advised to restrain their exporters from exporting substandard goods to the region in the absence of adequate controls in these countries. For the unchecked appearance of such inferior goods may not only retard economic reconstruction but also give rise to a loss of faith in the market economy among the poor masses.

2.9.3. Comparative testing, fair consumer information and consumer economic protection may fulfil a key role in stimulating domestic producers to perform better, and thereby accelerating the process of reconstruction of their national resources.

2.9.4. The emergence of independent consumer organizations in these countries should be strongly supported. The development of civic society () is of utmost importance and an indispensable ingredient for a market economy. For civic society represents the ethical and cultural values of society. This constitutes the normative element in the laws and rules that govern the market economy.

2.9.5. DG XXIV may, under the auspices of Tacis, 'adopt` a country in transition, for instance Belarus.

2.9.6. The Committee is furthermore of the opinion that DG XXIV should play an active role in contributing to the development and execution of consumer policy projects under the Phare and Tacis programmes, as this input is of vital importance to their effectiveness.

2.10. Developing countries 2.10.1. EU development policy may not as yet have recognized the relevance and importance of consumer policy aspects for its own programmes. In a number of Member States, however, consumer organizations have made significant contributions to their development policies. IOCU, the predecessor of Consumers International, can moreover show an imposing record of support to (emerging) consumer organizations in the Third World.

2.10.2. As has been shown in par. 1.8, consumer policy constitutes an (essential) element of policies directed at economic development. This also applies to development in Third World countries: see the significance of the UN Guidelines for Consumer Protection () as part of their development strategy; of particular importance for the consumers of the Third World is Section G (measures relating to specific areas) and Chapter IV, International cooperation.

Consumer organizations in the Third World are particularly active in safeguarding the right to safety and health. They monitor the market place and induce governments and international organizations such as the World Health Organization and the Codex Alimentarius Commission to adopt legislation and codes of practice in pursuance of this goal. As is true for Central and Eastern Europe, consumer organizations play an important role in institution-building in these countries and are an important factor in their economic development.

2.10.3. The Committee notes with approval the contribution consumer policy will make to the EU-development policy to the benefit of the consumers in Third World countries.

3. ESC Recommendation

Consumers are an essential ingredient to the development of a successful economy in Member States. This should be acknowledged both at European and Member State levels by their involvement, preferably on a sectoral basis for ease of effective participatory involvement.

As an on-going action plan at Community level, the ESC calls for the Council, Parliament and Commission, together with support from the National Parliaments of the Member States, to designate the year (1999 or 2000) as the 'Year for the Consumer` and forge its action plan and policies accordingly.

Done at Brussels, 11 July 1996.

The President of the Economic and Social Committee Carlos FERRER

() See for instance the Report from the Commission to the Council and the European Parliament: 'The single market in 1994` (COM(95) 238 final, par. 319) in which the (important) role of the consumer in the single market is described.

() COM(93) 378 final, 28. 7. 1993.

() See for example 'The single market in 1995` (COM(96)51 final, par. 17).

() OJ No C 39, 12. 2. 1996.

() See also 'Introduction Project for Standard Product Information 1993-1995` in the Netherlands. As a result of this project, standardized information is being developed for: furniture, bicycles, eiderdowns and consumer glues. The report observes that strong support for the introduction of comparative product information from consumer organizations and their integration into other marketing and product quality initiatives will enhance the willingness of industry to participate in these efforts.

() OJ No C 107, 13. 4. 1996 and COM(96) 13 final, 14. 2. 1996 respectively.

() OJ No C 39, 12. 2. 1996, p. 55.

() COM(93) 509 final, 15. 11. 1993.

() The Commission reported in late 1995 (COM(95) 617 final, 13. 12. 1995) on the application of Directive 85/374/EEC and concluded that the existing legislation does not need to be updated.

() Working Document of the Commission on a strategic programme of the internal market [COM(93)256 final, 2. 6. 1993 (p. 24, lines 15/16)].

() Commission Regulation 93/1617/EEC of 25. 6. 1993, OJ No L 15, 18. 1. 1994.

() COM(95) 117 final and COM(96) 79 final: Proposal for a European Parliament and Council Directive amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit.

() OJ No L 317, 24. 11. 1988.

() OJ No C 18, 22. 1. 1996, in particular, part C, par. 14 and 15. See also the Resolution of the European Parliament on the EMU of 30. 11. 1995, point 15 (OJ No C 339, 18. 12. 1995).

() Public services can also be subdivided into individual goods and collective goods. Collective goods are goods (or services) that cannot be split up in portions for distribution to individuals and/or for sale on the market (for instance: defence, public governance, dikes, etc.). The benefits of these services thus accrue to all citizens. The individual consumer comes into play with the provision of individual (public) services.

() See for more detail Opinion on the 'Citizen's Network`, OJ No C 212, 22. 7. 1996.

() See for instance the Report by the London-based Centre for communications and information studies to the Commission on telephone service to residential consumers (reference 88/160) of October 1989. In this report 8 major dimensions of (measurable) service aspects have been listed (service provision, fault incidence, fault repair, call connection, voice transmission quality, billing, payphones and operator services).

() See also 'Charter Checklist`: A consumer checklist for Citizen's Charter documents by the (UK) National Consumer Council. In this publication suggestions have been presented on the structure and contents of charters which in the meantime serve as a practical tool for evaluating and improving them.

() For instance: Quality indicators for local environmental policy, the development of an instrument to measure performance (in Dutch) by Konsumenten Kontakt (1993). In this publication indicators are presented for waste removal, street cleaning, nuisance of dogs, etc.

() See also the Opinion of the European Centre of Enterprises With Public Participation (CEEP. 95/avis 16) on the concept of universal service with respect to telecommunication services (COM(94) 682 final, 25. 1. 1995, chapter V). It identifies the following common elements: geographical accessibility, affordable prices and non-discriminatory access. See also the Opinion on competition and telecommunication, OJ No C 204, 15. 7. 1996, on the absence of a definition of 'public` and 'universal` service (par. 2.2).

() E.g. the Opinion on the communication entitled 'Towards the information society`, OJ No C 39, 12. 2. 1996, and the earlier Opinion on the related action plan, OJ No C 110, 2. 5. 1995.

() OJ No L 281, 23. 11. 1995, p. 31, on the protection of individuals in relation to the processing of personal data.

() Consumer families and food labelling in Europe: Coface Survey Documents, April 1994, 35 pages. (The sample consisted of 5 000 families).

() OJ No C 287, 4. 11. 1992 and OJ No L 100, 19. 4. 1994.

() See also the unanimously adopted Opinion (OJ No C 108, 19. 4. 1993). At the time of drafting this Opinion, the Council and the European Parliament have not yet resolved the last outstanding (labelling) issues. See for the ESC position on labelling requirements: par. 3.4.8 and par. 3.5. The ESC is further involved in the pending revisions of Directives 90/219 and 90/220 in which issues feature such as consultation and information to the public and ethical aspects.

() For instance, the EU Eco-label Regulation EEC/880/92 of 23. 3. 1992, Art. 1 (OJ No L 99, 11. 4. 1992).

() See for instance, Europeans and the environment: Eurobarometer 43.1 bis, a Report produced for the European Commission by INRA (Europe) - ECO November 1995, and also the earlier mentioned COFACE study.

() Obviously the total trade position of the countries of Central and Eastern Europe is far more complex than the aspect which has been highlighted here. See for a fuller picture, for instance the upcoming contribution of the Agriculture Section on the implications for the CAP of accession of CEEC.

() See also the separate Opinion on Development aid, good governance and the role of socio-economic interest groups.

() General Assembly Resolution 39/248, Annex of 9. 4. 1995.