THE COMMISSION'S WORK PROGRAMME FOR 1997 - Political priorities
Date: 1996-10-17
Institutions: European Commission
Subjects: EU policy, EU programme, Economic and Monetary Union, single market

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels, 
COM(96)  507  final 

i v.10.1996 

THE COMMISSION'S  WORK  PROGRAMME  FOR  1997 

Political  priorities 

When  its  appointment  was  confirmed  in  1995, the  Commission  spelled  out,  for  its  full 
term  of  office,  the  main  thrust  of  its  action.  The  emphasis  was  put  on  growth  and 
employment,  the  European  model  of  society  based  on  solidarity,  the  idea  that  Europe 
should make  its presence felt  more strongly on the international  scene, and the  important 
events that  Europe  should  be  preparing  for. 

The  1997  work  programme  is  designed  to  bring  us  closer  to  those  objectives.  In 
implementing  it,  the  Commission  will  be  guided  by  the  need  to  demonstrate  that  the 
Union  benefits  everybody  and  that  it  is  efficient. 

The  Union  can  and  must  provide  its  people  with  something  they  would  not  otherwise 
have.  The  Commission  intends  to  promote  this  dynamic  interpretation  of  its  right  of 
initiative.  Each  separate  issue must  be dealt  with  at the  right  level. 

The Commission  will  not hesitate  in  1997 to take  initiatives the moment  it is sure that a 
matter  of  common  interest  cannot  be  dealt  with  effectively  without  Union  action. 
Subsidiarity  and proportionality  must not be used as pretexts to call into question all that 
the Community  has already achieved or to return to the intergovernmental  method which 
is neither  efficient  nor  democratic. 

The  Union  has  to  be  efficient.  The  best  way  for  the  Commission  to  demonstrate  its 
determination  in  this  respect  is  to  take  a  rigorous  approach  to  its  own  management. 
Far-reaching  reforms  will  be  set  in  motion  in  1997,  to  modernize  the  way  the 
Commission  is run  and  improve  its performance.  The reforms  will  concentrate  on  three 
key  concepts:  decentralization,  rationalization  and  simplification. 

The  same rigour will be applied  to the tasks which are conferred  on the Commission by 
the Treaty and which it carries out as part of its day-to-day activities and in implementing 
Community  policies. It is important to realize that a large part of the Commission's work 
is  connected  with  its  executive  role,  in  particular  in  connection  with  the  common 
agricultural  policy,  the  single  market  and  the  management  of  the  Structural  Funds. 

The Commission must continually  strive for  openness and try to ensure that its proposals 
are  both  readable and appropriate. Three information  operations will  be mounted  for  the 
general  public:  "Building  Europe  together",  "Citizens  First"  and  "The  Euro,  a  currency 
for  Europe".  The  Commission  will  also  start  on 
the 
SEM  2000  Programme - sound and efficient  management. This project must now turn its 
attention  to  increasing  the  degree  of  cooperation  between  the  European  institutions  and 
the Member  States. In the Commission's  view, it is essential that the Member  States take 
part  in the drive to tighten  up the way the Community  manages the European taxpayers' 
money and implement the agreements on measures to combat fraud. The Commission will 
also  take  tougher  action  in this  field. 

third  phase  of 

the 

Building  Europe  means working  for  peace, prosperity  and well-being.  It means  working 
for the people of Europe. As economic globalization and changing social structures make 
European  integration  more  indispensable  than  ever,  the  Commission  will  endeavour  to 
attain  these  objectives  both  in  working  towards  the  major  priorities  (economic  and 
monetary union, the Confidence  Pact for Employment, the Intergovernmental  Conference 
and  enlargement)  and  in  day-to-day  management. 

4 

Building  on  the  foundations  of this approach,  the  Commission's  1997  work  programme 
will  focus  on  four  main  priority  areas:  growth  and  employment  and  the  Euro, 
promotion  of  the  European  model  of  society,  Europe's  role  in  the  world  and 
preparations  for  the  Union's  future. 

GROWTH AND EMPLOYMENT AND THE EURO 

Ever  since  the  Essen  European  Council,  it  has  been  clear  that  only  a  medium  and 
long-term  strategy  is capable  of  delivering  the hope of  a better  future  for  the people  of 
Europe.  The  European  Confidence  Pact  was  born  of  this  realization:  the  initiative 
clearly establishes and increases the responsibilities of the various groups involved,  both 
at European  and at national level. In  1997, the Commission intends to continue with and 
build on the measures associated with the Pact and capitalize on the multiplier effect  with 
regard  to  employment  and  sustainable  growth.  It  plans  to  assess  progress  at  regular 
intervals  and  to  pay  more  attention  to  determining  what  still  has  to be  done.  Its  efforts 
will  revolve around  the four  pillars of the Confidence  Pact: macro-economic  policy, the 
single  market,  employment  systems and  structural  policies. 

SOUND  MACRO-ECONOMIC  POLICY 

Building  on  the  foundations  laid  by  the  successful  Madrid  European  Council,  decisive 
progress will have been made towards economic and monetary union (EMU) by the end 
of  1996.  The  result  will  be  a  favourable  climate  which  will  enable  the  Euro  to  be 
introduced,  on  schedule,  on  1 January  1999, with  a good  number  of  Member  States  on 
board  from  the very beginning.  1997 will be a key year  in this process. The task will be 
to  complete  the  preparations  for  the  transition  to  the  third  stage  of  EMU,  while  at  the 
same  time  improving  convergence  and  coordination  of  economic  policies.  The 
Commission  will  take  an  active  part  in  determining  the  new  exchange  rate  system 
between  the  Euro  and  the  currencies  of  the  countries  not  participating  in  EMU.  It  will 
produce  a report  at the end of the year assessing the degree of convergence  achieved  by 
Member  States  in  preparation  for  the  decision  to  be  taken  by  the  European  Council  as 
early  as possible  in  1998 for  embarking  on  the third  stage  of  EMU. 

COMPLETING  THE  SINGLE  MARKET 

The single market  is shaping up, but  is not yet complete. The Employment  Pact calls  for 
the single market to be made fully  operational. It is vital that the Council and  Parliament 
enact  the  missing  legislation  in  1997,  in  particular  legislation  on  the  statute  of  the 
European  company,  the  legal  framework  for  biotechnological  inventions  and  the  single 
market  in  gas.  At  the  same  time,  the  Commission,  in  its  cooperation  with  the 
Member  States  and  in  handling  infringement  procedures,  will  step  up  the  pressure  on 
Member  States  to  transpose  directives  into  national  law  and  apply  them  properly.  This 
must  be  accompanied  by  implementation  of  the  competition  policy.  In  1997  the 
Commission  will  adopt  measures  for  the  distribution  sector  and  state  aid  which  should 

make  the  applicable  legislation  clearer.  It  will  also take  steps to  decentralize  the  handling 
of  some  infringements  of  competition  rules,  to  simplify  procedures  and  to  step  up 
cooperation  with  the  national  authorities.  Criteria  will  be  laid  down  for  targeting 
Commission  action  with  greater  accuracy.  Liberalization  will  continue,  but  public-interest 
obligations  and  the  interests  of  consumers  will  be  fully  taken  into  account. 

Amongst  the  many  policy  guidelines  due  to  be  adopted  at  the  Dublin  European  Council, 
the  simplification  of  single  market  legislation,  and  in  particular  the  SLIM  pilot  project, 
will  be  singled  out  for  special  attention. 

The  legislative  environment  resulting  from  these  guidelines  will  fail  to  satisfy,  however, 
unless  it  helps  create  jobs  in  the  increasingly  important  services  sector,  particularly  the 
information  society  and  audiovisual  services.  Practical  measures  to  be  agreed  on  at  the 
Dublin  European  Council  will  be  implemented  in  1997  to  remove  any  obstacles  which 
hinder  the  development  of  the  services  sector. 

In  1996 the  Commission  also  launched  an in-depth  examination  of tax  policies  in  Europe. 
Practical  conclusions  will  be  forthcoming  in  1997.  The  Commission  will  speed  up  the 
drafting  of  guidelines  for  closer  coordination  of  tax  policy  in  Europe.  One  of  the  main 
aims  will  be  to reverse  the  current  trend  towards  imposing  compulsory  charges  and  levies 
on  employment. 

IMPROVING  THE  COMPETITIVE  ENVIRONMENT  IN  EUROPE 

The  single  market  provides  an  essential  basis  for  an  environment  which  encourages  job 
creation.  If  European  businesses  are  to  derive  maximum  benefit,  it  will  be  necessary  to 
help industry  to become more competitive,  for  example  in space technology  and  electronic 
trading,  create  an  environment  which  enables  small  and  medium-sized  businesses  to 
thrive,  build  a  healthy  scientific  and  technological  base,  stimulate  innovation,  help  the 
sunrise  industries  and  the  information  society  to  advance,  and  invest  in  infrastructure. 

The  Commission's  main  priority  for  research  and  technological  development  in  1997 
will  be  to  present  the  fifth  framework  programme,  which  will  devote  considerable 
attention  to  research  geared  towards  meeting  the  ordinary  people's  needs  in  areas  such  as 
health-care,  nutrition  and  the  way  we  live.  The  Commission  also  intends  to  make  use  of 
the  potential  of  the  Joint  Research  Centre  to  develop  know-how  and  technology  in 
important  areas  such  as the  prevention  of  disease  and  technological  risks  and  the  analysis 
of  product  quality. 

Following  up  its  green  paper  and  action  plan,  the  Commission  will  propose  concrete 
measures  on  innovation. 

Priority  concerning  the  information  society  will  be  given  to  implementation  of  a  new 
action  plan.  The  Commission  will  also  have  to  complete  the  regulatory  framework  for 
policy  on  telecommunications  and  make  sure  that  the  measures  are  transposed  into 
national  law  by  the  Member  States,  so that  the  telecommunications  industry  is fully  open 
to  competition  by  1 January  1988. 

Modem  and  efficient  infrastructure  is an  objective  sine  qua  non  for  Europe's  prosperity 
and  the  harmonious  development  of  its  region^  Hence  the  Commission  would  like 
everything  possible  to  be  done  to  expand  the  trans-European  networks  and  make  them 
work  efficiently.  The  financing  of  transport  networks,  notably  with  greater  involvement 
of  public  and  private-sector  partnership,  is  a  priority  as  is  the  launching  of  rail  freight 
freeways.  The  Commission  calls  for  completion  of the  single  market  in  transport,  energy 
and  telecommunications. 

SPEEDING  UP  REFORM  OF  EMPLOYMENT  SYSTEMS 

In  1997,  the  Commission  will  do  all  it  can  to  put  into  practice  the  recommendations  on 
reforming  employment  systems  made  in  the  Confidence  Pact.  In  so  doing,  it  will  liaise 
closely  with  the  Member  States  and  the  social  partners.  It  will  contribute  to  the  joint 
Council-Commission  report  for  the  European  Council  on  employment. 

This  should  result  in  active  national  employment  policies  aimed  at  addressing  real 
problems.  In  this  connection,  the  Commission  would  welcome  improvements  to  the 
procedure  for  monitoring  multiannual  national  programmes. The Commission  also  intends 
to  stimulate  the  process  of  launching  the  major  projects  on  the  future  of  work. 

The  Commission  will  highlight  the  contribution  made  by  social  policy  to  economic 
performance.  Specific  work  will  be  carried  out  in  the  areas  of  equality  of  opportunity, 
social  protection,  the  role  of  the  social  partners,  the  organization  of  work  and  worker 
information  and  consultation. 

ADJUSTING  STRUCTURAL  POLICIES 

The  Community  needs  structural  policies  which  are  effective  weapons  in  the  fight 
against  unemployment  and  in  narrowing  the  gap  between  rich  and  poor  and  thus 
contribute  to  economic  and  social  cohesion.  The  Commission  will  propose  amendments 
in  1997,  the  year  in  which  objective  1 (regions  whose  development  is  lagging  behind)  is 
due  for  a mid-term  review  and  programmes  are  produced  for  the  new  period  1997-99  for 
objective  2  (regions  undergoing  conversion).  New  guidelines  will  be  presented  for  rural 
development  policy. The Commission has also proposed  local employment  pacts  involving 
regional  and  local  organizations  in  measures  and  projects  to  help  create  jobs. 

THE  EUROPEAN  MODEL  OF  SOCIETY 

The  single  currency  and  the  single  market  are  by  no  means  objectives  in  their  own  right 
but  instruments  intended  to  serve  the  needs  of  the  population  as  a  whole  and  the 
overriding  goal  of  employment  in  particular.  However,  the  Commission  wants  to  go 
further  still  and  build  a  Europe  of  solidarity  with  a  human  face  faithful  to  its  own  model 
of  societv  and  closer  to  each  individual's  concerns. 

Education  and  training  must  be used  as priority  levers to this cwd. The Commission  will 
take  initiatives  concerning  access  to  continuing  training  and  lifelong  acquisition  and 
accreditation  of  skills.  The  proposal  concerning  European  articles  of  apprenticeship,  the 
launching  of  an  Erasmus  apprenticeship  programme  and  the  implementation  of  the  plan 
of  action  on  learning  in  the  information  society  are  examples  of-what  Europe  can  do  at 
its  level. 

1997  will  also  see  the  presentation  of  pilot  measures  to  follow  up  the  White  Paper 
"Teaching  and  learning  - towards  the  learning  society"  and  the Green  Paper  on  obstacles 
to  transnational  mobility.  The  European  voluntary  service  will  be  launched  in  its 
definitive  form  on  the  basis  of  the  current  pilot  scheme.  In  this  way  Europe  is  moving 
closer  to  young  people. 

Economic and social cohesion and the related Community  instruments contribute  directly 
to  the  specific  nature  of  the  European  model  of  society.  In  1997,  the  Commission  will 
take  steps  to  adapt  and  strengthen  the  cohesion  policy.  A  development  strategy  for  the 
territory  of  the  Community  will  be  drawn  up  in  conjunction  with  the  Member  States. 
Cross-border  cooperation  will  be  stepped  up. 

A  Europe  which  shows  solidarity  implies  a  need  for  it  to  be  attentive  to  the  quality  of 
life,  the  interests  of  consumers  and  the  role  of  services  of  general  interest.  The 
Commission  will  make  every  effort  in  this  direction.  It  will,  for  example,  continue  to 
show  great  vigilance  in  the  area  of  foodstuffs. 

in  other  Community  policies,  further  development  of 

The priorities for  the environment  which  emerged  from  the review of the 5th  programme 
serve  to  mark  out  areas  for  action  in the  years to come:  incorporation  of the  environment 
instruments  of 
factor 
environmental  protection,  transposition  and  application  of  Community  legislation,  and 
international  cooperation.  The  Commission  will  act  as a driving  force  in the  preparations 
for  the  follow-up  conference  to  the  Rio  Summit. 

the 

Europe  must  also  form  a  genuine  area  of  freedom  and  security.  All  remaining  barriers 
to  the  free  movement  of  persons  must  be  eliminated.  The  Commission  will  propose 
practical  measures  in  the  light  of  analyses  made  by  the  high-level  group  set  up  for  this 
purpose.  However,  drugs,  terrorism  and  organized  crime  and  trafficking  and  sexual 
exploitation  of  the  most  vulnerable  members  of  society  are  scourges  which  eat  away  at 
the  very  heart  of  our  societies,  and  they  do  not  stop  at  any  frontier.  Every  possible 
measure  must  therefore  be  taken  to  combat  them.  Cooperation  in  the  field  of justice  and 
home  affairs  must  seek  to  achieve  tangible  results.  The  Commission  will  press  for 
decisions  to  be  taken  to  this  effect.  Admittedly,  the  ability  of  the  institutional  apparatus 
to  meet  challenges  of  this  magnitude  is  inadequate.  Being  fully  aware  of  this  fact,  the 
Commission  will  continue  to  fight  for  the  existing  mechanisms  to  be  reinforced  during 
the  Intergovernmental  Conference.  The  Commission  will  deploy  every  means  at  its 
disposal  to  satisfy  the  legitimate  expectations  of  the  European  public. 

EUROPE'S  PRESENCE  ON  THE  INTERNATIONAL  STAGE 

While  Europe  has  woven  a  dense  web  of  relations  with  all  parts  of  the  world  and  is  the 
biggest  donor  of  development  aid,  its  foreign  policy  sometimes  gives  the  impression  of 
an  incomplete  whole.  But  what  is  more  serious  is  the  fact  that  it  has  failed  to  integrate 
the  various  instruments  at  its  disposal  into  a coherent  and  effective  approach.  Hence  the 
impression  that  Europe  does  not  have  the  political  clout  to  match  its  economic  and 
commercial  importance. 

External  relations  are by  nature unsuited  to annual  programming;  they  are  gradually  built 
up  over  time. 

The  Commission  will  accordingly  endeavour  to  develop  relations  with  a  number  of 
non-member  countries  in  1977, and  in particular:  the associated  countries  concerned  by 
the  prospects  of  enlargement;  the  United  States  in  the  spirit  of  the  New  Transatlantic 
Agenda;  the  countries  of  former  Yugoslavia  with  the  consolidation  of  the  peace  process 
and  the efforts  at reconstruction;  the Mediterranean  countries with  the development  of the 
partnership  established  by  the  Barcelona  Conference;  Russia;  China;  Asia,  in  particular 
in  the  framework  of  ASEM;  Latin  America;  the  ACP  States;  and  South  Africa. 

In  its  activities  and  contribution  to  the  Intergovernmental  Conference,  the  Commission 
will  safeguard  the effectiveness  and coherence  of the common  commercial  policy,  which 
has  to  be  adapted  to  take  account  of  the  actual  state  of  international  economic  relations. 
1997  will  be  marked  by  the  activation  of  the  work  programme  decided  on  at  the  World 
Trade Organization  ministerial  conference  in Singapore  in December  1996. In this  context 
the  Commission  will  endeavour  to  make  progress  on  such  key  issues  as  trade  and  the 
environment,  the  social  clause  and  competition.  It  will  also  be  necessary  to  conclude  the 
negotiations  on liberalization  of telecommunications  and  financial  services.  1997 will  also 
see 
the  markets  of 
in  this  set-up  will  be  provided  by  the 
third  countries.  An  additional  component 
inauguration  by  the  Commission  of  an  interactive  database  on  access  to  markets. 

the  strategy  for  access 

implementation  of 

the  full-scale 

to 

In  addition  to the  general  thought  being  given  to  the future  relationship  between  the  ACP 
and  the  EU,  priority  in development  policy  will  be  attached to the  implementation  of  the 
8th  tranche  of  the  European  Development  Fund  and  ways  and  means  of  enhancing  the 
effectiveness  of development  aid. Greater coordination  between donors and stricter  control 
of  the  quality  of  cooperation  measures  are  two  matters  requiring  particular  attention. 

The  Commission  will  continue  to  press  for  respect  for  human  rights  and  democracy;  this 
will  include  action  in  international  forums. 

In  1997,  the  Commission  will  continue  its humanitarian  activities  in meeting  the  needs 
of  populations  in  distress,  refugees  and  victims  of  conflict  and  natural  disasters.  This 
expression  of European  solidarity  will  focus  not only  on major  crisis areas  (African  Great 
Lakes,  former  Yugoslavia)  but  also  other  regions  where  the  situation  is  less  well  known. 
1997  will  also  be  marked  by  the  further  implementation  of  the  new  regulation  on 
humanitarian  aid. 

PREPARING  FOR THE  FUTURE 

1997  will  see  the  conclusion  of  the  Intergovernmental  Conference  (IGC).  It  has  to 
accomplish  radical  reforms  if  the  Union  is  to  respond  effectively  to  the  challenge  of 
enlargement. 

The  Commission,  referring  to  its  opinion  on  the  Intergovernmental  Conference,  will 
accordingly  seek to set ambitious targets. The Commission's  view is that the  Conference 
will  need  to  focus  on  three  priority  objectives.  First,  produce  an  institutional  system 
enabling  an  enlarged  Union  to  operate  efficiently.  The  insistence  on  unanimity  and  the 
complexity of the existing decision-making procedures would paralyse the Union. Second, 
come up with real answers to the public's concern about matters such as internal  security, 
employment  and the environment.  Third, give the Union a genuine  external  policy.  This 
will  mean  adjusting  the  common  commercial  policy  and  external  economic  relations  to 
the  changes  in the  modern  world,  and  undertaking  a thorough  reform  of the  CFSP. The 
Union's  identity  as  perceived  by  the  rest  of  the  world  must  be  one  of  coherence, 
effectiveness  and  visibility. 

Enlargement  and  the  Union's  financial  framework  after  the  expiry  of  the  current 
financial  perspective  in  1999  are  two  closely  related  matters  which  together  make  up 
Agenda  2000. The preparations  for  this exceptional  challenge for the end of the century 
will  enter  a new  decisive  phase  in  1997. 

After  the  conclusion  of  the  IGC  the  Commission  will  present  a  number  of  major 
documents  in  accordance  with  the  conclusions  of  the  Madrid  European  Council 
(December  1995). First of all, the opinions on each of the applications for accession.  The 
Commission  will  apply  the  appropriate  rigour  and  objectiveness  in  preparing  these 
opinions,  with  no  preconceived  ideas and  no  fears  about  stating  the  truth. 

Secondly,  a  general  document  setting  out  a  coherent  approach  to  the  whole  issue  of 
enlargement.  In  this  context  the  Commission  will  make  a  detailed  assessment  of  the 
impact  of  enlargement  on Union  policies. 

Finally, a communication on the financial  framework  from  2000 onwards. This exercise, 
which  is  not  easy  at  any  time,  will  be  made  even  more  difficult  by  the  prospect  of 
enlargement.  It  will  obviously  have  to  be  accompanied  by  a  very  careful  look  at  the 
future  of  the  Community  policies,  in  particular  the  common  agricultural  policy  and 
structural  policies. 

CONCLUSION 

1997  will  be  very  much  influenced  by  the  major  developments  looming  ahead  for  the 
Union: the  Intergovernmental  Conference,  economic and  monetary  union,  the  post-1999 
financial  package,  enlargement.  In  many  respects  it  will  be  a  milestone  as  work  on  the 
reform  of the treaties  is completed  and  gives way to Agenda  2000. The  Union  will  also 
enter  into the  final  phase of the preparations  for  the decision  in spring  1998 on the third 
stage  of  EMU. 

The  Commission  will  have  the  decisive  role  to  play  in  getting  work  on  Agenda  2000 
actually  started.  It  will  be  for  the  Commission  to  conduct  a  thorough  appraisal  of  the 
situation  and to work  out a coherent  approach  in the interests of the entire Union  and  its 
members,  both  present  and  future. 

So that the Member  States and the other institutions can assume their responsibilities, the 
Commission  will  assume  its own. 

These  major  developments  will  shape  the  Union  of  the  21st  century.  But  while  it  is 
necessary to design tomorrow's Europe, we must not forget  today's world and ignore the 
public's  concerns. Unemployment  is undermining  our society and  sapping  confidence  in 
the institutions, both national and European. The Commission cannot create jobs by itself. 
But  it  can  help  to  work  out  a  common  strategy  and  call  on  the  actors  to  assume  their 
responsibilities.  This  is the  point  of  the  Confidence  Pact  for  Employment  proposed  in 
1996. The process that was set in motion will have to continue and gather momentum  in 
1997. A Europe which generates growth and creates jobs will be better able to rise to the 
challenges  of  Agenda  2000. 

ISSN 0254-1475 

COM(96) 507 final 

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