Proposal for a Council Decision on implementation of a Community action programme to strengthen the competitiveness of European industry
Date: 1995-03-22
Institutions: European Commission
Subjects: EU industrial policy, European industrial area, action programme, competitiveness, industrial cooperation, industrial development

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 22.03.1995 
COM(95)87  final 

COMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND  SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

ACTION PROGRAMME AND TIMETABLE 

FOR IMPLEMENTATION OF THE ACTION 

ANNOUNCED IN THE COMMUNICATION ON 

AN INDUSTRIAL COMPETITIVENESS POLICY 

FOR THE EUROPEAN UNION 

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EUROPEAN COMMISSION 

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ACTION PROGRAMME AND TIMETABLE 

FOR IMPLEMENTATION OF THE ACTION 

ANNOUNCED IN THE COMMUNICATION ON 

AN INDUSTRIAL COMPETITIVENESS POLICY 

FOR THE EUROPEAN UNION 

COMMUNICATION TO THE COUNCIL,  PARLIAMENT,  THE ECONOMIC AND 

SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Annexes:  1.  Proposal  for  a Council  Decision  on  implementation  of  a Community  ac 

tion programme to strengthen the competitiveness  of European  industry 

2.  Action  programme  and timetable  for an industrial  competitiveness  policy 

for the European Union 

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9  direct line 32-2-295.80.57 exchange 32-2-299.11.11 . @  32-2-296.30.28 
Telex COMEU B.21877 - Telegraphic Address COMEUR Brussels 

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In its resolution of 8 November 1994 on the strengthening of the competitiveness 
of Community industry the Council called on the Commission "to submit to it...  a 
schedule for  the drafting of appropriate proposals formalising the initiatives an 
nounced by the Commission in its communication on "An industrial competitive 
ness policy for  the European Union" in the areas of intangible investments,  indus 
trial  co-operation,  competition and  modernisation of  the  role  of public  au 
thorities. " 

D  In response to this request, the Commission hereby submits: 

—  its priorities for action to implement its industrial competitiveness policy; 

—  a draft  proposal  for  a  Council  Decision  on  implementation  of  a  Community 
action programme to strengthen the competitiveness of European industry; 

—  an  action  programme  and  timetable  for  an  industrial  competitiveness  policy 

for the European Union. 

1. 

PRIORITIES FOR ACTION 

D  The Treaty on European Union calls on the Community and the Member  States, 
acting in line with the subsidiarity principle, to ensure that the conditions neces 
sary for the competitiveness of the Community's industry exist. 

•  To  this  end,  the  Commission  submitted  the  communication  on  "An industrial 
(COM(94)319, 

the  European  Union" 

for 

competitiveness  policy 
14 September 1994). 

This communication  was based on the basic principles of an industrial policy  for 
the  Community  defined  in the  1990 Commission  communication  on "Industrial 
policy  in an open and competitive  environment",  the conclusions  of which were 
fully approved by the Council. 

It must be remembered that: 

—  although  it is up to businesses to make sure that they are competitive  on the 
market, it  is up to the public  authorities  to create an environment  propitious 
for strengthening industrial competitiveness; 

—  as provided  for  by Article  130 of the  Treaty  on European  Union,  the  Union 
and the Member States share responsibility for implementation of an industrial 
competitiveness policy in which industry too must be closely involved. 

It should  also be remembered  that there  is an  increasingly  direct  correlation be 
tween  economic  and  social  cohesion  and  industrial  and  economic  performance 
which must be taken account  of.  It must be ensured  that  industrial  competitive 
ness and  economic and  social cohesion each add strength to each other.  Greater 
economic and social  cohesion can generate externalities  which make the private 
sector more efficient  by improving infrastructure and optimising the general level 
of investment. Future competitiveness must rely less upon economies of scale and 
large series and more upon the capacity to assimilate information and to ensure its 
appropriate  dissemination,  thereby  offering  the  possibility  of  decentralised  in 
dustrial growth. 

The  Commission  considers  four  objectives  particularly  important  in  industrial 
competitiveness policy: 

—  development ofthe  internal market; 

—  better taking industry's needs into account in research policy; 

—  establishment ofthe  information society; 

—  promotion of industrial co-operation. 

—  Development of the internal market 

The  internal  market  completed  in  1993  is  the  Union's  greatest  contribution  to 
strengthening  the  competitiveness  of  European  industry.  The  top  priorities  now 
for the Union are, on the one side, to solve problems still existing in some specific 
areas, and on the other side, to ensure that the single market operates  effectively 
so that business and consumers can reap its full  benefit.  This means  completing 
the  legislative  framework,  ensuring  its  practical  application  and  improving  the 
business environment. Single market liberalisation must also be extended to those 
sectors where it has so far had little impact. Likewise company law is one domain 
where the progress remains  insufficient. 

Within  this  framework,  the  rapid  completion  of  the  internal  energy  market 
constitutes an essential factor, because, in particular, of the importance of energy 
for the competitiveness of European  industry. In the field of energy however the 
internal  market  is  not  yet  completed.  The  inclusion  of  energy  in  the  internal 
market by the way of more open and competitive behaviours is at the centre ofthe 
in  the  gas  and  electricity  sectors  (cf.  Commission 
Commission  action 
communication  on 
internal  electricity  market 
the  completion  of 
(COM(95)80)). This objective has been reaffirmed  many times by the Council and 
the European Parliament. 

the 

The Union  and the Member States play an essential  role  in  this  process,  given 
their responsibility  for the regulatory environment, where the right balance must 
be struck between Community and national legislation and to ensure its  effective 
and balanced implementation. 

To bring the internal  market  into operation, the Commission  has adopted  an ap 
proach  - known as "new approach" - which goes no further  than to impose com 
pliance with requirements in the public interest, for  example to protect health or 
consumer  safety,  but  leaves  it  to  industry  to  choose  the  technical  means  of 
achieving  this,  in  particular  by  the  way  of  standardisation.  It  is  this  choice  of 
means which enables industry to demonstrate its competitiveness. If this approach 
is to be fully  effective,  the Member  States must refrain from filling the room  for 
manoeuvre left  to industry with national regulations. According to this approach, 
at Community level, the harmonisation  of national  legislation is to be continued, 
where necessary,  as  well  as the  application  of the  mutual  recognition  principle. 
This  will  prevent  groundless  conflicts  concerning  differences  in  legislation 
between Member  States. Furthermore, the Commission will continue to exercise 
its monitoring powers to the benefit ofthe Union, its industry and its citizens. 

—  Better taking industry rs needs into account in research policy 

Innovation  plays  a  decisive  role  in  improving  awareness  of  market  trends  and, 
hence, industrial competitiveness. If research results are to be used for the benefit 
of industrial competitiveness, dissemination, transfer  and uptake ofthe  results by 
industry must be improved. 

The Union, the Member States and industry too must help to step up research and 
training to technologies  efforts  in order  to put  businesses  in  a  better  position  to 
keep ahead of technological changes and the markets and to apply the appropriate 
strategies. 

To achieve this, the Commission plans a series of joint projects  in the interest of 
industry designed not only to bring research closer to industry's concerns, particu 
larly on high growth labour intensive markets, but also to strengthen the synergies 
and co-ordination with the efforts  made by the Member States, the Union and in 
dustry  itself.  At  the  same  time  they  will  make  the  Community's  technological 
achievements more visible to the general public. 

The Commission  is also preparing  a communication  on closer  co-ordination  be 
tween research  and  industry and a green paper on promotion  of innovation poli 
cies  in  the  European  Union.  It  prepares  also  according  to  the  terms  of  Article 
130P ofthe  Treaty an annual report on the execution of Community's research ac 
tivities. 

—  Establishment ofthe  information society 

The establishment ofthe  information society will have a decisive effect  on all in 
dustrial activity in the Union. Its rapid emergence makes European industry's ca 
pacity to extend and manage knowledge more important than ever. 

The conditions for access to information, to the networks carrying it and to servi 
ces making it easier to use are playing a growing role  in industrial  competitive 
ness. The availability, quality and, above all, lowering of the cost of telecommu 
nications infrastructure and services are now key factors in the European Union's 
industrial  competitiveness.  This is  why  it  is  necessary  to  accelerate  the present 
process of liberalisation of the telecommunications  sector by the way of opening 
to  competition  the  infrastructures  and  services  which  are  still  in  a  monopoly 
situation. 

In this context it is important to mention the role of workers' skills. Therefore it is 
necessary to accompany the development of the information society with that of 
the education and training society. 

The  emergence  of  the  information  society  is  creating  new  markets  generating 
large numbers of jobs. Industry in the European Union, particularly the telecom 
munications industry, has proved its capacity to design and manufacture the tools 
for the  information  society  of  the  future.  Increasingly,  development  of the con 
tents and ofthe  services for stimulating the demand and use of information is be 
coming the crucial question. 

The  Commission  has  made  proposals  already  in  the  communication  entitled 
"Europe's way to the information society - an action plan",  the follow-up  to the 
May 1994 report on "Europe and the global information society" by the high level 
working party chaired by Mr Bangemann. 

The measures set out in the action plan cover the regulatory and legal aspects of 
communications  in  Europe,  including  measures  to  provide  trans-European  net 
works,  contents,  services  and  applications,  protection  of  privacy  and  personal 
data, and a series of works on social and cultural issues. 

To capitalise fully on the opportunities opened up by the information society and 
avoid some of the risks, the Commission has taken a series of measures. Two fo 
rums have been established - one on the information  society to address the chal 
lenges posed by the arrival of the information  society,  the other consisting  of a 
High Level Group of Experts to examine the social and societal impact. 

The High Level Expert Group will be mandated to prepare a report or reports on 
the social and societal aspects ofthe  Information Society, particularly with refer 
ence to six  priority themes mentioned  in the Commission's  report for the Essen 

5-

European Council  "The Information  Society in Europe: A first Assessment  since 
Corfu". 

In February 1995 the Commission hosted a major event in Brussels in the form of 
the G7 Ministerial Conference on key issues raised by the information  society: the 
regulatory framework  including rules for protection of privacy and personal  data, 
competition policy, the development  of information  networks and the social, so 
cietal and cultural aspects ofthe  information  society. 

The willingness  to associate developing  countries to the establishment  of the in 
formation  society and to allow them to benefit  fully  from  it has been declared at 
the  G7  Ministerial  Conference.  In  order  to  fulfil  this  commitment  and  as  a re 
sponse to the proposal  of  South-African  Vice-President  Mbeki, the  Commission 
intends to contribute to the organisation of a conference  on the information  soci 
ety with the developing world. 

The Commission  is also drafting  a document  on the method  which  it  intends to 
adopt to co-ordinate the action to develop new services and new applications, par 
ticularly  in  the  context  of  the  4th  framework  programme  for  R&D  activities 
(1994-1998) and ofthe trans-European network programme. 

—  Promotion of industrial co-operation 

The completion  of the internal  market  is being accompanied  by closer  industrial 
co-operation  within  the  European Union,  for  which  the  public  authorities  must 
create the right climate, in conformity with competition rules. 

The Union must therefore  endeavour to remove the obstacles to industrial co-op 
eration while developing tools for  industrial co-operation.  This is a sine qua non 
if industry is to reap the full benefit ofthe internal market. 

At  the  same  time  the  LEONARDO  programme  helps  to  develop  co-operation 
between businesses and other interested  sectors in the area of professional  train 
ing. 

Development of industrial  co-operation with the rest of the world is one plank of 
the  Union's  strategy  to  strengthen  European  industry's  presence  on  expanding 
markets and to make it easier for certain non-Union countries to convert to a mar 
ket economy. 

To help European businesses improve their position on the markets of the  future, 
the Commission will, in particular, establish a data base on the obstacles to proper 
operation ofthe markets. 

To promote  such  co-operation,  every  possible  industrial,  economic,  commercial 
and  investment  link  and  transfers  of  know-how  to  third  countries  must  be 
strengthened to help integrate these countries fully  in the world economy. The re 
cently  adopted  Commission  communication  on  industrial  co-operation  with 
Eastern Europe addresses these issues with particular reference to these countries. 

An  industrial  competitiveness  policy  in  the  European  Union  has  application,  as 
appropriate, across all sectors and all sizes of business. However, recognising the 
important  role that  SMEs are likely to play in economic  growth and the creation 
of jobs within the European Union, the Commission  announced proposals  for  an 
Integrated Programme in favour of SMEs and the Craft  Sector (COM(94) 207). 

This programme  seeks to take  account  of the  special  needs  of  SMEs and to put 
into  concrete  form  the  objectives  outlined  in  the  Commission's  December  1993 
White Paper. The Integrated Programme proposes measures to promote Concerted 
Actions between Member States to create a better enterprise  environment, to im 
prove  support  measures  for  SMEs  and  to  encourage  greater  use  of  the  services 
offered  to enterprises which exist at national or regional level. 

This programme received the Council's firm support under the terms of a Resolu 
tion  of  10th  October  1994.  The  implementation  of  operational  initiatives  and 
measures within the Integrated  Programme in Favour of SMEs are already being 
carried out in co-operation with Member States. 

2. 

DRAFT PROPOSAL FOR A COUNCIL DECISION ON IMPLE 
MENTATION OF A COMMUNITY ACTION PROGRAMME TO 
STRENGTHEN THE COMPETITIVENESS OF EUROPEAN  INDUSTRY 
(ANNEXE I) 

. 

The  draft  proposal  for  a  Council  Decision  on  implementation  of  a  Community 
action programme to strengthen the competitiveness of European industry covers 
the action corresponding to the priorities highlighted in the Council resolution and 
requiring a formal  decision by the Council to clarify  and  ensure  implementation 
by the Commission. 

The  action  programme  and  the  draft  proposal  relate  to  measures  which  can  be 
taken on the basis of existing resources. If these resources were to appear  insuffi 
cient, the Commission would present a further draft proposal. 

3. 

ACTION PROGRAMME AND TIMETABLE FOR AN INDUSTRIAL 
COMPETITIVENESS POLICY FOR THE EUROPEAN UNION 
(ANNEXE  2) 

The Commission communication on "An industrial competitiveness policy for the 
European  Union" identified  the  Commission's  priorities  for  action  and  stressed 
that the  Commission  was willing  immediately  to take  the measures  for  which  it 
was directly responsible. 

The action programme for a competitiveness policy for the European Union inclu 
des action to update the existing Community policies, moves to start initiatives re 
quiring no new formal decisions. 

This is the case, in particular, with most of the follow-up  measures mentioned  in 
the report from the Commission on implementation ofthe  Council resolutions and 
conclusions on industrial policy. 

ANNEX 1 

Draft 

Proposal for a Council Decision 

on implementation of a Community action programme 

to strengthen the competitiveness of European industry 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Union,  and  in  particular  Arti 
cle 130 §3 thereof, 

Having regard to the proposal from the Commission,1 

Having regard to the opinion from the European Parliament,2 

Having regard to the opinion ofthe Economic and Social Committee,3 

Having regard to the opinion ofthe Committee ofthe Regions ,4 

1.  Whereas the heads of state or government meeting in the European Council on 10 and 
11 December  1993 in Brussels endorsed the White Paper on competitiveness, growth 
and employment5 as the terms of reference  for action by the European Union and its 
Member States,  supporting  an  approach  to  industrial  development  based  on  global 
competitiveness, a factor generating growth and employment; 

2.  Whereas  on 22 April 1994 the Council  adopted  conclusions  on improving the  com 
petitiveness  of  European  industry,  based  on  the  White Paper  on  competitiveness* 
growth and employment; 

3.  Whereas on 8 November 1994 the Council adopted the Resolution on the strengthen 
ing ofthe competitiveness of Community industry,6 which stressed, in particular, that 
a competitive and innovatory industry in the Community is a prerequisite for  lasting 
economic growth and the creation of new jobs; whereas the framework conditions for 
competitiveness  and  competition must be  improved  so that the European  Union re 
mains an attractive location for business leading to the creation of new firms and new 
jobs; 

1 
2 
3 
4 

6 

OJNo 
,p. 
OJNo 
P-
p. 
OJNo 
OJNo........  p. 
COM(93)700final,  5 December 1993. 
OJNo C 343, 6.12.1994, p. 1 

-A/1-

ANNEXE I 

4.  Whereas on~. the European Parliament adopted a Resolution on...; 

5.  Whereas the rapid completion ofthe internal energy market constitutes a fundamental 

element for a competitive European industry; 

6.  Whereas  industrial  production  and  services  increasingly  complement  each  other; 
whereas, consequently, a competitive industrial sector is indispensable  in order fully 
to exploit the possibilities of job creation in the service sector, and vice versa; 

7.  Whereas economic and social cohesion and the competitiveness of European industry 
are linked in that a competitive European industry can contribute to cohesion and co 
hesion can provide industry with the benefits of a wider commercial  and geographic 
base; 

8.  Whereas, notwithstanding  the  important  role  of public  authorities,  the maintenance 
and improvement of industrial competitiveness is primarily the task of business; 

9.  Whereas accelerated technical progress, increasing globalization of markets, intensify 
cation of  international  competition and the increasing  importance  of  environmental 
protection require greater efforts from all those with responsibility  in the economic, 
political and social field in order to facilitate the necessary structural adjustments, in 
ter alia to ensure a sustainable development, and to create new jobs; 

10. Whereas it is necessary to avoid distortions of competition and to promote the open 

ing up of markets both within and outside the Community; 

11. Whereas it is particularly urgent that the Community and the Member States, within 
the framework of their respective powers, adopt practical measures to strengthen the 
competitiveness of industry, taking account ofthe new challenges which it faces; 

A/2-

AO 

ANNEX 1 

HAS ADOPTED THIS DECISION: 

Article 1 

The action programme set out in the annexe is hereby adopted to strengthen the competi 
tiveness of European industry which is a prerequisite for lasting economic growth and the 
creation of new jobs and contributes to economic and social cohesion, with the following 
objectives: 

A. 

B. 

C. 

D. 

to eliminate unnecessary  legal and administrative constraints for  enterprises, par 
ticularly small and medium-sized enterprises; 

to ensure fair competition; 

to strengthen industrial co-operation; 

to promote intangible competitiveness factors. 

Article 2 

The Commission shall send the Council, the European Parliament, the Economic and So 
cial Committee and the Committee ofthe Regions a report evaluating the results obtained 
together with, where necessary, appropriate proposals. 

Done at Brussels, 

A/3-

ANNEX 1 

Annex 

ACTION PROGRAMME TO STRENGTHEN THE 

INDUSTRIAL COMPETITIVENESS OF THE EUROPEAN UNION 

D  annual report - inter alia, on the basis ofthe  information  obtained for the panorama of 
European industry - on the development ofthe competitiveness of European industry 

D  examination  of the issue of relocation  of industry and  services and report on the re 

sults to the Directors General of Industry 

D  establishment,  in collaboration with industry  and  with national  administrations,  of a 
database on the obstacles faced  by European companies in third countries, market by 
market 

• 

implementation of the initiatives announced  in the communication  on  "An industrial 
competitiveness policy for the European Union" in the areas of: 

—  intangible investments, 

—  industrial co-operation, 

—  competition 

—  modernisation ofthe role of public authorities 

A/4-

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EUROPEAN COMMISSION 

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ANNEX 2 

ACTION PROGRAMME AND TIMETABLE 

FOR AN INDUSTRIAL COMPETITIVENESS 

POLICY FOR THE EUROPEAN UNION 

Rue de la Loi, 200  B-1049 Brussels, Belgium 
9  direct line 32-2-295.80.57 exchange 32-2-299.11.11 . Q± 32-2-296.30.28 
Telex COMEU B.21877 - Telegraphic Address COMEUR Brussels 

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ANNEX2 

D  The tables set out below show the Commission's action programme for implemen 
tation ofthe  action announced in the  September 1994 communication on an in 
dustrial competitiveness policy for the European Union. 

They show the objectives, the action planned and an approximate timetable for ea 
ch ofthe four priorities set in the Commission communication. 

hi most cases, studies and analyses will  be required before  a start can be made 
with the action to attain the above-mentioned objectives. 

D  As regards the nature of the action to be taken, the action programme contains 

measures of various types: 

—  action already under way or which can be started in the near future and which 
could make an immediate contribution to the industrial competitiveness ofthe 
European Union, particularly: 

•  organisation of round tables, seminars, forums and workshops on general 

and specific sectoral issues; 

• 

• 

• 

contributions  from  the  common  policies  to  help  to  improve  industrial 
competitiveness, particularly from the cohesion,  training,  research, inno 
vation, trade, competition and co-operation with third countries policies; 

the establishment of pilot programmes on industrial co-operation; 

the establishment of a database on the obstacles to proper operation of the 
markets and of an industrial assessment mechanism; 

• 

establishment of a Competitiveness Advisory Group. 

—  action requiring more detailed political guidelines so that a start can be made 

in due course, particularly: 

•  draft  communications  on the promotion of  intangible  investment,  on the 
promotion of quality, on industrial co-operation with Eastern Europe and 
on direct foreign investment; 

•  draft white papers and green papers on the legal instruments for industrial 

co-operation, on energy policy and on promotion of innovation. 

—  action requiring the adoption of proposals for legislation before it can take ef 
fect, particularly proposals for Directives, Regulations and Recommendations 
designed: 

-B/2 

ANNEX2 

• 

• 

• 

to  promote  research,  the  internal  energy  market,  European  investment 
overseas and electronic trading; 

to remove the legal and fiscal  obstacles to industrial  co-operation; 

to modernise the role played by the public authorities in industry. 

a  This  action  programme  must  take  account  of  the  subsidiarity  principle.  Conse 
quently, a distinction must be drawn between the action to be taken directly by the 
Commission,  the  measures  requiring  close  co-ordination  and  collaboration  with 
the  national  authorities  and the  steps  to  be  taken jointly  by  the  Commission  and 
the national authorities in close co-operation with industry.  Such an approach will 
allow more effective  action to improve industrial  competitiveness  and make  fuller 
use  of  the  expertise  of  the  national  authorities  and of  industry  to  supplement  the 
Commission's limited human and budgetary resources. 

Naturally,  industry  will  be  directly  involved  in practical  action  such  as round ta 
bles,  tHe pilot programmes  on  industrial  co-operation,  the  database  on the  obsta 
cles to proper operation ofthe  markets and the industrial assessment mechanism. 

The  Member  States  could be  involved  in the action programme,  not only  via the 
meetings of the senior officials  on industry but also in new forms  of meetings be 
tween the national and Community administrations, such as workshops. 

The dialogue with the Member States would focus on co-ordination and definition 
of  research  policies,  commercial  policy  instruments,  the  establishment  of  a data 
base on opportunities for industrial co-operation and definition ofthe  specific pro 
grammes on objective 4. 

•  The  Commission  also  intends to take account  of  the  approach  in this action pro 
gramme  when  drafting  its  communications  concerning  specific  sectors  of  indus 
try. 

It has done so already in its communication  on strengthening  the  competitiveness 
of the machinery construction industry. 

a  Certain measures will take priority, particularly: 

—  the establishment of Task Forces to start joint projects in the interest of indus 

try and for action on human resources; 

• —'  the  establishment  of  a  database  on  the  obstacles  to  proper  operation  of  the 

markets and of an industrial assessment  mechanism; 

—  the  examination  of  the  effects  ofthe  Community  and  national  legislation  on 
competitiveness  and  employment  by  the  MOLITOR  Working  Party  of  inde-

B/3-

ANNEX 2 

pendent experts on the. simplification  of legislation and administrative proce 
dures; 

—  the establishment of an Advisory Group on Competitiveness. 

- B / 4-

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

1. TO PROMOTE  INTANGIBLE INVESTMENT 

a. 

promotion of intangible in 
vestment (vocational train 
ing, organisation of work, 
new technologies and quali 
ty) in the general support for 
investment; examination of 
ways of taking fuller account 
of intangible assets, particu 
larly in the context of taxa 
tion 

b. 

stepping-up of research: 

draft communication on the promotion of 
intangible investment 

1996 

action on human resources 

further support from the Structural Funds 
to improve the business environment and 
business co-operation and to support in 
tangible investment by businesses 

1995 

1994/99 

-B/5 

/?? 

Action programme for  an industrial competitiveness policy for  the European  Union 

ANNEX 2 

OBJECTIVES 

ACTION 

- by proceeding with  further 
action to take fuller  account 
ofthe needs ofthe market in 
R&TD policy 

establishment of task forces to start joint 
projects in the interest of industry (car of 
tomorrow, education software  and multi 
media, new generation aircraft,  vaccines 
for viral diseases, future train) 

meetings ofthe  Directors General for in 
dustry and research to improve the chan 
nels for co-ordination with and between 
the Member States and industry for 
definition ofthe  eligibility criteria, selec 
tion and development of projects 

involvement of industrialists in the mid 
term review ofthe fourth framework pro 
gramme of RTD activities, in particular 
regarding the decision on the remaining 
700 MECU, and in preparation ofthe fifth 
framework  programme 

draft communication on closer co-ordina 
tion between research and industry 

document on the methodology to adopt to 
co-ordinate the action to develop new ser 
vices and new applications connected with 
the information  society, particularly in the 
context ofthe 4th framework R&D pro 
gramme and ofthe trans-European net 
works programme 

TIME 
TABLE 

1995 

1995 

1996 

1995 

1995 

- by modernising the appro 
aches in order to produce 
more effective industrial 
spin-offs from research 

implementation of programmes to apply 
research results 

1995 

Green Paper on promotion of innovation 
policies in the European Union 

promotion of a financial environment fa 
vourable to innovation (capital market for 
growth industries, risk-capital, etc.) 

- B / 6-

/ll 

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

- by facilitating the estab 
lishment of consortia of 
European companies 

c. 

promotion of quality 

d. 

e. 

fuller  integration of vocatio 
nal training schemes in other 
policies 

creation of a legal environ 
ment conducive to research 

f. 

g-

i. 

development of clean tech 
nologies and economic in 
centives 

introduction of new ways of 
organising work and impro 
vement ofthe fiscal envi 
ronment, particularly for 
small firms 

improvement ofthe  dialogue 
between the two sides of in 
dustry 

start of joint projects in the interest of in 
dustry 

in pro 
gress 

draft communication on the stimulation of 
applications by means of partnerships: to 
wards a new approach and new methodol 
ogy 

draft communication on European quality 
promotion policy, including a strategy and 
à European programme to promote quality 

1995 

implementation of LEONARDO and SME 
programmes 

in pro 
gress 

review ofthe code on aid to research 

1995 

consideration ofthe need to propose a 
Directive to create a legal environment 
conducive to research 

simplification  of type-contract for the re 
search contracts under the 4th  framework 
programme of RTD activities 

further  implementation ofthe fifth action 
programme on the environment 

in pro 
gress 

implementation ofthe  environmental sec 
tion ofthe fourth framework RTD pro 
gramme 

involvement of management and labour in 
implementation of objective 4 and  ofthe 
ADAPT and LEONARDO programmes 

1995 

association of social partners in the 
framework  of social dialogue to initiatives 
impacting on employment (at inter-pro 
fessional and sectoral levels) and on new 
forms of work organisation 

in pro 
gress 

-B/7 

•11 

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

j-

rational use of statistics 

creation of a database of sectoral indica 
tors on business performance and com 
petitiveness factors in the European Union 

1995 

study on the use of administrative data for 
statistical purposes 

2. TO DEVELOP INDUSTRIAL  CO-OPERATION 

general measures: 

identification  and removal of 
legal and fiscal obstacles to 
industrial co-operation 

possible drafting  of proposals for legisla 
tion to remove the principal legal and fis 
cal obstacles to industrial co-operation 

1996 

1995 

1994/99 

Green Paper on the legal instruments for 
industrial co-operation at Community 
level 

elaboration of projects under the Com 
munity Initiative programmes ADAPT 
and EMPLOYMENT 

meetings ofthe senior officials  on indus 
try with a view to establishment of a data 
base on opportunities for industrial co 
operation 

1996 

a. 

1. 

2. 

3. 

4. 

5. 

development of industrial 
co-operation tools 

support for the development 
of trans-national initiatives 
targeted on growth markets 
using Structural Funds 

recourse to the Working 
Party ofthe  Heads of In 
dustrial Policy Departments 
to facilitate industrial co 
operation operations and  ef 
forts to find information and 
partners 

development of a coherent 
legal approach towards a 
communal and efficient pro 
motion of European foreign 
investment 

possible drafting of proposals for legisla 
tion to promote European foreign  invest 
ment, in particular on the basis ofthe 
standards for the protection of investments 
in ACP countries 

1996 

6. 

closer technological co-op 
eration 

use of ECIP (European Community In 
vestment Partners) programme 

promotion of scientific and technological 
co-operation under the fourth framework 
R&D programme 

preparation of a conference on the infor 
mation society with the developing world 

in pro 
gress 

in pro 
gress 

B/8-

ls> 

Action programme for an industrial competitiveness policy for the European Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

b. 

Central and Eastern Eu 
rope and Commonwealth of 
Independent States 

exploring solutions similar 
to partial guarantees for in 
vestments 

communication on industrial co-operation 
with Eastern Europe 

1995 

seminars, forums and round tables on 
sectoral issues with the countries of Cen 
tral and Eastern Europe and Russia 

implementation  - for already associated 
countries - of measures ofthe pre-acces-
sion strategy adopted at the European 
Summit of Essen (White Paper on the 
rules relating to the internal market, 
structured dialogue, etc.) 

negotiations of association agreements 
with the 3 Baltic Republics and Slovenia 

economic analysis of guarantees for inves 
tments for the countries of Central and 
Eastern Europe with association agree 
ments 

support for investment and 
the private sector 

establishment of a Business Advisory 
Council (follow-up to Essen) 

assistance with development of services to 
support industry (for example, briefing 
session on the activities ofthe agencies to 
promote investment in the Visegrad 
countries for bodies providing support for 
industry in the Community) 

establishment or reactivation of sectoral 
liaison committees with the countries of 
Central and Eastern Europe, Russia and 
Ukraine 

1995 

1995 

in pro 
gress 

support for standardisation 
and certification 

PHARE technical assistance programmes 
on standardisation and certification, parti 
cularly to implement the Europe agree 
ments 

in pro 
gress 

setting-up of j oint working groups 
(Poland, Hungary, Czech Republic) 

-B/9 

ac 

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

4. 

5. 

expertise in international fi 
nancial engineering and off 
set activities 

support for harnessing po 
tential energy resources 

to be defined 

study and seminars, under the European 
Energy Charter, to provide assistance with 
drafting energy legislation (PHARE pro 
gramme) 

in pro 
gress 

THERMIE programmes to provide sup 
port for promotion and dissemination of 
new energy technologies, energy  effi 
ciency and energy savings 

establishment of energy centres and of 
training, promotion and logistical assis 
tance schemes (SYNERGY programme) 

training and promotion of energy effi 
ciency programmes (SAVE programme) 

training and promotion of renewable en 
ergy (ALTENER programme) 

Latin American and Medi 
terranean countries 

organisation of round tables and liaison 
groups 

1995 

to be defined 

1995/96 

participation in the fourth 
framework  programme on 
R&D activities and in the 
developments connected 
with the information  society 

establishment of networks of 
businesses 

development of industrial innovation 
schemes (Sprint network) 

1995/96 

Asian countries 

co-operation programmes 

organisation of round tables, seminars and 
workshops on general and sectoral issues 

establishment of pilot programmes on in 
dustrial co-operation 

2. 

scientific and technological 
co-operation schemes 

organisation of seminars and establish 
ment of specific programmes 

c. 

1. 

2. 

d. 

1. 

in pro 
gress 

in pro 
gress 

since 
end of 
1994 

B/10 

clX 

Action programme for an industrial competitiveness policy for the European Union 

ANNEX 2 

OBJECTIVES 

ACTION 

3. 

training and dissemination of 
technology 

EU-Japan centre for industrial co-operati 
on 

programmes for science and technology 
fellowships in information technology (for 
example, the KIT (Keep in Touch) pro 
gramme) and the MTFP programme 
(Manufacturing  Technology Fellowship 
Programme)) 

TIME 
TABLE 

in pro 
gress 

in pro 
gress 

extension ofthe training programmes to 
the priority fields for European industry 

1995/96 

3. TO ENSURE FAIR COMPETITION 

a. 

1. 

2. 

3. 

external markets: taking account ofthe European Union's industrial in 
terests, both as an exporter and as an importer 

continuation of efforts to re 
solve problems not comple 
tely dealt with by the end of 
the Uruguay Round 

active participation in the work  ofthe 
WTO 

in pro 
gress 

- work on harmonisation of non-preferen 
tial rules on origin (conclusion scheduled 
in 1998) 

- further  negotiations on steel, aviation 
and services (for example, telecommuni 
cations) 

combating fraud efficiently 

to be defined 

development and effective 
application of international 
rules on competition 

application and implementation of bilat 
eral association, partnership and co 
operation agreements 

1995 

improvement ofthe existing bilateral co 
operation agreements and development of 
new agreements 

preparation of multilateral discussions on 
international rules of competition 

implementation of OECD agreement on 
shipbuilding 

4. 

establishment of an indus 
trial assessment mechanism 

establishment ofthe  industrial assessment 
mechanism (multi-sectoral and geographi 
cal extension) 

1996 

B/ll 

%\ 

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

5. 

6. 

7. 

8. 

9. 

b. 

1. 

2. 

action under way 

continuing to improve the 
structure ofthe  Common 
Customs Tariff in order to 
better reflect the industrial 
interests of producers and 
users 

database on the obstacles to 
smooth operation ofthe 
markets 

study and establishment of a database on 
the obstacles to proper operation ofthe 
markets 

1995/96 

improvement of commercial 
policy instruments with the 
aim of making them more 
efficient and operational 

consideration of application 
of commercial policy and 
defence instruments to serv 
ices 

co-ordination between the 
measures taken to promote 
exports and investment and 
the other policies 

internal market: 

further reduction of State 
aid, taking account of re 
gional imbalances 

an examination, as soon as 
possible, of possible changes 
to the State aid control 
mechanism 

preparation ofthe dialogue with the Mem 
ber States on the new instruments 

1995/96 

to be defined 

communication on "a level playing  field 
for direct investment world-wide" 

1995 

continued negotiations of mutual recogni 
tion agreements 

1995/96 

exploitation of data from the 4th report on 
state aids 

1995 

preparation of a proposal to the Council 
for a Regulation on the simplification of 
procedures 

1995/97 

B/12 

n 

Action programme for  an industrial competitiveness policy for  the European  Union 

OBJECTIVES 

ACTION 

TIME 
TABLE 

ANNEX 2 

.-

re-examination ofthe aid 
authorisation criteria 

improvement ofthe consis 
tency between the structural 
policies and the policies for 
monitoring State aid 

improvement ofthe consis 
tency between the rules ap 
plicable to State aid and the 
arrangements for Commu 
nity financing under non 
structural policies 

3. 

strengthening ofthe  internal 
market (in gas, electricity 
and telecommunications) 

to be defined 

completion ofthe  internal energy market 
(gas, electricity) by the way of rapid adop 
tion of proposals for Directives now be 
fore the Council or otherwise by other 
means available to the Commission 

in pro 
gress 

Green Paper entitled "For a European 
Union energy policy" 

1995 

draft White Paper based on the Green Pa 
per 

1995/96 

telecommunications markets liberalisa 
tion: 
- cable-distribution networks 
- mobile networks 
- vocal telephony and other  infrastructures 

1996 
1996 
1998 

4. TO MODERNISE THE ROLE OF THE PUBLIC AUTHORITIES 

a. 

b. 

further deregulation, exami 
ning, for example, the expe 
diency of invoking Articles 
101 and 102 ofthe  Treaty 

possibly, submission of proposals for leg 
islation 

1996 

redefinition of public service 
objectives 

to be defined 

B/13-

xs 

Action programme for an industrial competitiveness policy for the European Union 

ANNEX 2 

c. 

d. 

e. 

f. 

g-

h. 

OBJECTIVES 

ACTION 

using the Structural Funds to 
support industrial change 
and to facilitate the devel 
opment of clusters of com 
petitive activities 

definition, with the Member States and in 
dustry, of specific programmes on voca 
tional retraining for workers affected  or 
threatened by massive restructuring of un 
dertakings or industries in crisis (objective 
4, SME, ADAPT and LEONARDO) 

TIME 
TABLE 

in pro 
gress 

development of partnerships 
between big businesses and 
small  firms 

possibly, submission of proposals 

1996 

streamlining and effecting 
greater transparency of pro 
cedures (contribution to the 
Working Party set up to 
simplify administrative pro 
cedures and legislation) 

examination ofthe effect ofthe Commu 
nity and national rules on competitiveness 
and employment by the MOLITOR wor 
king party of independent experts on the 
simplification of legislation and adminis 
trative procedures 

1995/96 

a) faster establishment of 
trans-European networks for 
the interchange of data be 
tween administrations 

b) establishing and stepping 
up electronic data inter 
change between industry and 
the administration 

using the Community ins 
truments to support co-op 
eration projects of Commu 
nity interest 

examination of ways of im 
proving decision-making 
structures 

proposal for a Council recommendation 
on extension of IDA to third countries 

1995 

proposal for a Council Decision on a 
multi-annual programme to support the 
use of electronic information interchange 
between industry and administrations 
(I3A) 

1995 

possibly, submission of proposals 

1996 

establishment of a Competitiveness Advi 
sory Group 

1995 

proposal for new types of meetings 
(workshops) between the national and 
Community administrations 

i. 

reduction of costs arising 
from  regulations 

evaluation of economic costs and benefits 
of new legislative proposals 

in pro 
gress 

B/14 

1C 

Communication from the Commission 
Action programme and timetable for implementation of the actions 
announced in the communication on 
"An industrial competitiveness policy for the European Union" 

FINANCIAL STATEMENT 

1. 

TITLE OF OPERATION 

Industrial competitiveness policy for the European Union 

2. 

BUDGET HEADING INVOLVED 

Cf. item 7.2 

3. 

LEGAL BASIS 

Treaty on the European Union, and in particular Articles  3 and  130 §3 and Ti 
tles XIII (Industry), XV  (Research and technological  development,  Articles 130f 
etseq.% VIII (social policy and industrial change, Article 123), XIV (social  and 
economic  cohesion,  Articles  130 A  andB)  and  XII  (Trans-European 
networks) thereof. 

4. 

DESCRIPTION OF OPERATION 

4.1 

Specific objectives 

D 

D 

To  strengthen  the  competitiveness  of  European  industry  by  means  of  general 
measures under a series of  common policies  (on research,  cohesion,  vocational 
training, networks, foreign trade and competition). 

To develop the internal  market, to take fuller  account of  industry's needs in re 
search policy, to establish the information  society and to promote  industrial  co 
operation. 

4.2 

Duration 

Ad hoc measure. 

-n 

43 

Target population 

Member  States, regional  and  local  authorities, two sides of  industry, businesses, 
etc. 

5. 

CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 

Non-compulsory expenditure 

5.2 

Differentiated  appropriations 

53 

Type of revenue involved 

Not applicable. 

6.  TYPE OF EXPENDITURE OR REVENUE 

The form of support depends on the specific procedures for each ofthe  measures 
referred to in point 7.2. 

7. 

FINANCIAL IMPACT 

7.1  Method of calculating total cost of operation 

The calculation of the cost to the budget of the action provided  for  in this com 
munication is set out in the Table in point 7.2. 

7.2 

Itemized breakdown of cost 

This communication will have no further impact on the budget 

The 
headings listed below are mentioned for information  as they relate to actions 
which  in  varying 
:h  in  varying  degrees  will  help  to  improve  the  competitiveness  of  the 
)oean Union. 
European Union 

it 

Budget 
headings 
concerned 

Budget 1995 ME-
CU 
EC  without RSB 

Breakdown  by main headings 

Community Support Frameworks 

Industrial reconversion 

SME's initiative 

Cohesion fund 

Training and careers advice 

Leonardo 

B2-130 

B2-143 

B2-1432 

B2-300 

B3-1020 

B3-1021 

Actions in the field ofthe Internal Market 

B5-300 

Stimulation of companies (SMe) 

Industry : actions in the field of telecom- 
munications and postal services, standardi 
sation and data exchange 

B5-320 

B5-41 

Actions in the industrial field, including the  B5-41 
Panorama 

Transeuropean networks 
-> in the field of transport 
-> in the field of energy 
-> telecommunications infrastructure 

R & D Framework Programme 
Information and communication technolo-
gies 

. 

B5-700 
B5-710 
B5-720 

B6-711 

Promotion of Community exports to third 
countries, in particular Japan 

B7-5022 

Programme for the modernisation of textile  B5-420 
industry in Portugal 

6.443,8 

403,0 

175,0 

2.151,7 

1,0 

137,3 

40,08 

29,2 

30,5 

7,2 

216,0 
15,0 
20,0 

906,5 

12,2 

80,0 

pm: Breakdown by action (B5-411) 

Annual report - inter alia, on the basis ofthe  information ob 
tained for  the panorama of European industry - on the devel 
opment ofthe  competitiveness of European industry 

1996 budget 
(MECU) 

1.0 

<> 

o 1 

Examination ofthe  issue of relocation and report on the results 
to the senior officials on industrial policy 

Establishment,  in collaboration with industry and with na- 
tional administrations,  of a database on the obstacles faced  by 
European companies in third countries,  market by market 

Formalization ofthe  initiatives announced in the communica 
tion on "An industrial competitiveness policy for  the European 
Union " in the areas of: 
— 
— 
— 
— 

intangible investments 
industrial cooperation 
the industrial aspects of competition 
modernization ofthe  role of public authorities in indus- 

try 
TOTAL 

0.5 

0.5 

\ 2 
\ Q 
0.5 
o.5 

5.2 

7.3  Operational expenditure on studies, meetings of experts, etc. 

pm: ventilation by action (B5-411 ) 

Studies 

Meetings of experts 

Conferences and congresses 

Information and publications 

ECU 

2 500 000 

70 000 

120 000 

210 000 

7.4 

Indicative schedule of appropriations 

See the breakdown in the Table in point 7.2. 

8. 

FRAUD PREVENTION MEASURES 

Before payment the Commission departments concerned check the financial  assis 
tances or that  the services  and  preparatory  and  feasibility  studies  or  assessments 
ordered  have been  received,  taking account  of the contractual  obligations  and  of 
the principles of economy and sound financial management. Anti-fraud  measures 
(inspections, reports, etc.)  are  included  in all  agreements  or contracts  concluded 
between the Commission and parties receiving payments. 

> 

9. 

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

9.1 

Specific objectives 

To  strengthen  industrial  competitiveness,  closer  coordination  will  be  needed 
across a series of common policies, particularly on research, cohesion, vocational 
training, networks and foreign trade, plus closer consultation between the Member 
States. As identified  in the White Paper on growth, competitiveness and employ 
ment, the priorities for action will be to promote intangible investment, to develop 
industrial cooperation, to ensure fair competition and to modernize the role  ofthe 
public authorities. 

In most  cases, studies and  analyses will  be  required  before  a  start  can  be made 
with the action to attain the abovementioned  objectives. 

As  regards  the  nature  of  the  action  to  be  taken,  this  communication  contains 
measures of various types: 

-  action already under way or which can be started in the near future  and which 
could make an immediate contribution to the industrial competitiveness of the 
European Union, particularly: 

• 

• 

• 
• 

• 

organization  of round  tables,  seminars,  forums  and  workshops  on  gen 
eral and specific sectoral issues; 
contributions  from  the  common  policies  to  help  to  improve  industrial 
competitiveness, particularly from the cohesion, training, research, inno 
vation, trade, competition and co-operation with third countries policies; 
the establishment of pilot programmes on industrial cooperation; 
the establishment  of  a database  on the  obstacles to proper  operation  of 
the markets and of an industrial assessment mechanism; 
establishment of a European competitiveness policy council. 

-  action requiring more detailed political guidelines so that a start can be made 

in due course, particularly: 

• 

• 

draft  communications on the promotion of intangible investment, on the 
promotion of quality, on industrial cooperation with Eastern Europe and 
on direct foreign  investment; 
draft  white papers  and  green papers  on the  legal  instruments  for  indus-
trialcooperation and on energy policy. 

^  A 

-  action requiring the adoption of proposals for legislation before  it can take  ef 
fect,  particularly  proposals for  Directives, Regulations and  Recommendations 
designed: 

• 

• 
• 

to  promote  research,  the  internal  energy  market,  European  investment 
overseas and electronic trading; 
to remove the legal and fiscal obstacles to industrial cooperation; 
to modernize the role played by the public authorities in industry. 

9.2  Grounds for the operation 

The appropriations requested will be used to implement an industrial competitive 
ness policy for the European Union. There is no real alternative means of attain 
ing the same results. 

European  industry  is making an unprecedented  effort  to restructure  and  innovate 
in order to boost its competitiveness  on the world market. In particular, these  ef 
forts  must  equip  it  to  face  the  changing  international  context  (geopolitical  up 
heaval  and  conclusion  of  the  Uruguay  Round)  and  the  mounting  international 
competition,  often  from  countries  with  less  stringent  social,  regulatory  or fiscal 
constraints,  the  economic  recession,  the  rapid  development  of  combinations  of 
technological innovations (information  technology, biotechnology, new materials, 
etc.) which have led to intangible investment (in research, patents, training,  soft 
ware, etc.) growing faster than capital investment and the inadequacy ofthe  major 
European networks for reaping maximum benefit from the revolution in progress 
in telecommunications and information technology. 

Moreover, in its resolution of 8 November  1994 on the strengthening ofthe  com 
petitiveness  of  Community  industry  the  Council  called  on  the  Commission  "to 
submit to  it...  a schedule for  the drafting of appropriate proposals formalizing 
the initiatives announced by the Commission in its communication on  "An  indus 
trial competitiveness policy for  the European  Union" in  the areas of intangible 
investments,  industrial cooperation,  competition and modernization ofthe  role of 
public authorities". 

As  regards  subsidiarity,  the  European  Union  must  implement  an  industrial  ap 
proach drawing maximum benefit from the GATT Agreement and allowing rapid 
progress  on the  issues  raised  by the  globalization  of  markets.  In this  context,  a 
Community approach is necessary, without doubt. 

D  Cost: 

See the Table in point 7.2. 

•4f 

32 

a  Spin-off  effects 

9.3 

Evaluation 

Regular  evaluations  are  planned  in  accordance  with  the  specific  procedures  for 
each of the measures referred to in point 7.2. 

In addition, as requested  by the Council  in its resolution of 8 November  1994 on 
the  strengthening  ofthe  competitiveness of  Community  industry,  from  1995 on 
the Commission will submit an annual report on the development ofthe  competi 
tiveness of European industry. 

/ 

10.  ADMINISTRATIVE  EXPENDITURE 

The action programme will give rise to no additional administrative expenditure. 

11 

ISSN 0254-1475 

COM(95) 87  final 

DOCUMENTS 

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Catalogue xnmiber : CB-C095-117-EN-C 

ISBN 92-77-87027-3 

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