The Commissions's work programme for 1998 - The political priorities
Date: 1997-10-15
Institutions: European Commission
Subjects: EU activity, EU policy, European Commission, European Union, enlargement of the Union

COMMISSION OF THE EUROPEAN COMMUNITIES 

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Brussels,  15.10.1997 
COM(97)517  final 

THE COMMISSION'S WORK PROGRAMME FOR 1998 

The political  priorities 

The  "Agenda  2000"  package  recently  unveiled  by  the  Commission  marked  a 
turning-point  in this  legislature.  Coming  midway  through  the  Commission's  term  of 
office  and  hard  on  the  heels  of  the  Intergovernmental  Conference  which  led  to  the 
Amsterdam  Treaty,  Agenda  2000  lays  the  foundations  for  an  enlarged  Community 
and  sketches  the  way  forward  beyond  the  end  of  the  present  decade,  up  to  the  year 
2006.  It  is  an  unprecedented  programme  of  measures  and  reforms  designed  to 
strengthen the Union and give it the wherewithal  to face the future  with  confidence. 

The Commission's  work programme  for  1998 follows  on directly  from  this  blueprint, 
taking up the broad lines of Agenda 2000 and putting them into practice. Nonetheless, 
the  programme  is  also  a continuation  of  the  Commission's  work  since  1995, in  line 
with the priorities  it set  itself  for  its entire term of office.  Continuity  and renewal  are 
thus  the  two  basic  strands  running  through  the  Commission's  plans  to  build 
tomorrow's Europe. 

The  Commission  intends  to  concentrate  its  activities  in  1998  on  five  political 
priorities: 

- 

- 

- 

- 

Employment:  follow  up  promises  with  real  action  and  bold  measures.  The 
Commission will go on pressing for an integrated, coherent approach directed 
at  the  medium  term.  It  will  not  let  up  in  its  appeals  to  all  concerned,  at 
whatever  level,  to  assume  their  responsibilities.  In  accordance  with  the 
conclusions of the European Council, the employment title in the Amsterdam 
Treaty  will  be  actively  implemented  ahead  of  the  Treaty's  ratification;  this 
should  at last make for  closer  coordination  of national  employment  policies. 
The  Commission  also  intends  to  give  practical  effect  to  the  objective  of 
taking  a high  level  of employment  into  consideration  when  formulating  and 
implementing  Community  policies  and  initiatives.  The  special  European 
Council  on  employment  will  generate  a  new  dynamic  in  which  the 
Commission intends to play an active part. 

The  euro:  complete  the  preparations  for  the  introduction  of  the  single 
currency  by  the  agreed  date,  in  accordance  with  the  Treaty.  In  1998  a 
decision  will  be  taken  on  which  countries  will  participate  in  the  initial 
transition  to  the  euro  and  parities  will  be  fixed  between  the  currencies  of 
those  which  are  to  take  part.  The  Commission  will  lay  the  groundwork  for 
this decision  and for  the  introduction  of  stage III  of economic  and  monetary 
union. 

Make  a  start  on the  reforms  proposed  in  Agenda 2000.  The  Union  must  be 
ready  in  good  time  to  meet  the  challenges  that  lie  ahead.  Major  initiatives 
will  have  to  be  launched  in  a number  of  fields,  which  the  Commission  has 
clearly  identified  in  the  three  sections  of  Agenda 2000,  on  the  Union's 
policies, the enlargement process and the future  financial  framework. 

Encourage  collective  and coherent  Union  action  in the world  at large. The 
presence  of  a strong  Europe  on the  international  scene  is a factor  for  peace, 

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stability  and  prosperity  and  an  objective  that  must  be  pursued,  not  least 
because of the scale of the Union's outside interests. 

Finally,  continue  efforts  to  make  the  management  of  European  affairs  more 
efficient  and to place it at the service  of the citizens, with  special  emphasis 
on public health and quality of life. 

1. 

EMPLOYMENT: ACTING  TOGETHER 

The special  European  Council  on employment  on 21 November  1997 should 
strengthen the framework  for action at both national and Community  level. 

The Commission, working  within  its prescribed  powers, intends to make  full 
use  of  the  possibilities  opened  up  by  the  new  title  on  employment  in  the 
Amsterdam Treaty. 

As the Commission has repeatedly pointed out, particularly  in its  confidence 
pact and  again  in its recent proposed  guidelines  for  employment,  the key  to 
improving the situation is to look at the problem in its entirety and to pool the 
efforts  of  the  fifteen  Member  States  and  the  Union.  The  Commission  is 
therefore calling for a general mobilisation of resources. 

In this context, special attention will be paid to the following  points: 

•  Sound macro-economic  policy is a must if growth is to be translated  into 
jobs.  The  Commission  will  ensure  that  efforts  are  kept  up  to  achieve 
convergence  and  coordination  of  the  Member  States'  economic  policies. 
The  changeover  to  the  euro  will  have  a  positive  impact  on  growth, 
investment and the efficiency  of markets and hence on the creation  of new 
jobs. 

•  Maximum  benefit  must be derived  from  the  advantages  Europe  can  offer 
with  a fully  operational  single  market  and the  general  development  of 
Union  policies.  For  example,  employment  considerations  must  be  taken 
into  account  in fields relating  to  small  and  medium-sized  businesses,  tax 
regimes and administrative rules applied to businesses, key sectors such as 
the information  society, research and policies aimed at fostering  skills and 
knowledge.  Commission  initiatives  such  as  the  territorial  pacts  for 
employment  will  be  continued  and  evaluated  with  a  view  to  possible 
expansion. 

•  Acting on the basis of guidelines  for national  employment policies drawn 
up  in  advance  in  accordance  with  the  conclusions  of  the  Amsterdam 
European  Council,  the  Commission  will  play  its  part  in  enhancing  the 
coordination  of  national  policies  and  strengthening  the  linkage  between 
employment  policy  and  economic  policy.  It  is  essential  that  these 
guidelines  be  properly  followed  up.  This  is  why  the  Commission 
underlines  the  importance  of the  preparation  of  national  action  plans  and 
the  presentation  of  reports  by  Member  States  as  stipulated  in the  Treaty. 

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Wherever  necessary 
recommendations to Member States. 

the  Commission  will  put 

forward 

specific 

•  A  very  close  look  will  have  to  be  taken  at  ways  of  making  substantial 
improvements in the operation of labour markets, so that we can reap the 
expected  benefits  in  terms  of  lower  unemployment.  In  this  respect,  we 
must  continue  to  encourage  mobility,  including  cross-border  mobility, 
establish  new  methods  of  organising  work  and  modernise  and  adapt  our 
social  security  systems.  Special  attention  will  have  to  be  paid  to  the 
reduction  of non-wage  costs and to recruitment  incentives, by means of a 
lightening  of  the  tax  burden  on  labour.  The  social  dialogue  must  play  a 
crucial role here, following  on from  initiatives launched in 1997. 

•  The  Commission  will  use  Community  instruments  and  all  appropriate 
forms  of cooperation with the Member States to encourage the emergence 
of a more inclusive  Europe, particularly  in relation  to the various  forms 
of  social  exclusion,  which  are aggravated  by high  unemployment.  In  this 
context the Commission will also be alive to the need to promote equality 
of opportunity. 

•  The  Commission  will  strive  to  establish  a  firmer  basis  for  the  social 
dimension  of  Europe.  It  will  keep  a  close  watch  on  respect  for  the 
existing  rights  of  workers  to  be  consulted  and  kept  informed  on  issues 
relating  to their employment  situation.  It will promote the initiative  it has 
put to the two sides of industry concerning information  and consultation at 
national level and will support any idea they come up with for  agreements 
on  the  organisation  of  working  time  as  a  way  of  improving  the 
employment  situation and the competitiveness  of industry. It will  propose 
a new social action programme for  1998-2000. 

2. 

THE EURO: ENTERING THE HOME STRAIGHT 

In  accordance  with  the  Treaty,  the  transition  to  stage III  of  economic  and 
monetary union (EMU) will take place on  1  January  1999, when the euro will 
be  introduced  in  those  Member  States  which  are  ready  to join  in  the  first 
wave. The decision on membership will be taken very  soon - in the spring of 
1998. 

The Commission has done its utmost to stay on course and keep up the pace 
and  will  continue  to  do  so  right  up  to  the  finish.  It  has  played  its  part  in 
presenting  the  basic  proposals  for  Council  decisions.  The  Council,  in  turn, 
has  advanced  stage  by  stage  along  the  road  towards  the  single  currency, 
signalling at each turn its political resolve to press ahead. 

The enormous convergence efforts  made by the Member States and the actual 
transition to the euro will  guarantee  greater  stability  and effectiveness  in the 
single  market, one of the  world's  biggest  integrated  markets.  Economic  and 
monetary  union  and  the  process  leading  up  to  it  should,  in  time,  have  a 

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decisive  impact  on the  Union's  economic  expansion  and  consolidate  its  role 
and  position  in  international  relations  in  both  monetary  and  commercial 
terms. The completion of economic and monetary  union  will undoubtedly  be 
one of the greatest advances in the history of European  integration. 

In 1998 the Commission will complete the final technical preparations for the 
introduction  of  the  euro,  during  which 
the  exchange  rates  between 
participating  currencies  will  be  irrevocably  fixed.  It  will  also  hold  further 
discussions  with  the  Member  States  on  the  final  practical  details  of  the 
changeover  to  the  euro  and  continue  to  support  their  efforts  to  make  its 
introduction a success, in particular with information  for the general public. 

Completion  of  economic  and  monetary  union  will  have  major  external 
implications.  The  euro  can  be  expected  to  play  an  essential  role  as  an 
international  currency.  The  euro  will  have  a  positive  impact  on  the 
development  of  the  world  economy  and  will  reinforce  the  stability  of  the 
international monetary system. 

3. 

AGENDA 2000 : EMBARKING  ON REFORM 

Agenda 2000  contains  proposals  of  immense  importance  in both  qualitative 
and quantitative terms. It is the response to one of the greatest challenges the 
Union  has ever  faced:  how to  prepare  for  enlargement  on  an  unprecedented 
scale - the accession of a large number of countries at stages of  development 
that  differ  both  amongst  themselves  and  in  comparison  with  the  present 
Member  States -  while  preserving  the  Union's  achievements  and  methods, 
not to mention  its  spirit,  which  have  been  the  keys to  successful  integration 
so far. In other words, how to enlarge without jeopardising the Union. 

Agenda 2000 clarifies  this  situation  and maps out the path to  a  stronger  and 
larger  Union  with  a  series  of  practical  proposals  based  on  three  strands: 
strengthening  and  adapting  existing  policies,  gradually  integrating  the  new 
members  and  reorganising  the  Union's  financial  framework  within  the 
previously  set  limits.  The  Commission  proposes  implementing  the  detailed 
proposals  in  Agenda 2000  as  soon  as  possible  and  embarking  on  the 
necessary reforms, in line with this three-pronged  strategy. 

3.1 

Strengthening and adapting the Union's policies 

Making the single market operate more smoothly 

•  The establishment  of the  single  market  is one of the  Community's  great 
achievements.  However,  its  potential  is  still  limited  by  many  barriers  to 
trade. A determined  effort  to implement the Commission's  action plan  for 
the  single market  should boost  growth, competitiveness  and employment, 
The  Commission  will  therefore  launch  the  initiatives  and  measures  it 
announced,  according to the proposed  timetable. The  aim  is to tighten  up 
the rules, smooth  out the last distortions  affecting  the market, remove  the 

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obstacles that  still  persist  in certain  sectors and  place  the single  market  at 
the service of all European  citizens.  The efforts  to modernise and  simplify 
Community rules will be continued. 

•  Taxation  will receive  special  attention. As well  as hampering  the  smooth 
operation  of the  single market,  existing  tax  arrangements  have  a negative 
effect  on employment. Acting on its communication  on taxation in Europe 
and  the  work  of  the  Tax  Policy  Group,  the  Commission  will  propose  a 
series of initiatives aimed at gradually correcting these shortcomings. 

•  The  Commission  will  also  continue  to  be  strict  in  its  application  of  the 
rules  on  competition,  which  are  vital  for  the  market  to  operate  properly. 
The rules on State aid will  also receive close attention.  In the absence of a 
rigorous  regulatory  framework,  public  funds  are  too  often  squandered  on 
sterile and costly attempts to outbid competitors, thus diverting funds  from 
other,  more  promising  sectors.  At  the  same  time,  the  Commission  will 
strive to simplify  these rules and modernise the machinery  for  scrutiny. 

A competitive economy as the foundation for  growth 

•  Steps  will  be  taken  to  boost  the  competitiveness  of  firms,  in  particular 
small  and  medium-sized  b u s i n e s s e s,  which  have  great  potential  for  j ob 
creation  and  play  a  vital  role  in  innovation  and  creativity.  Unfortunately, 
small  businesses  are  held  back  by  all  kinds  of  constraints.  T he 
Commission  will  draw  conclusions  from  the  second  phase  of  the  pilot 
scheme  for  the  simplification  of  legislation  for  the  internal  market  (SLIM) 
and  the  work  of  the  Business  Environment  Simplification  Task  Force 
(BEST)  with  a  view  to  simplifying  administrative  formalities  and  easing 
regulatory  constraints.  It  will  propose  measures  designed  to  improve  the 
competitiveness  of  small 
the  setting-up  of  poles  of 
research  and  n ew  forms  of  access  to  credit  and  capital,  in  particular 
venture  capital,  a  vital  ingredient  for  innovation.  The  C o m m i s s i on  will 
also  present 
training, 
modernised  structures  and  n ew  forms  of  cooperation. 

the  spirit  of  enterprise, 

to  promote 

initiatives 

including 

firms, 

•  The  major  trans-European  infrastructure  networks  must  contribute  to 
the  effectiveness  of  the  single  market.  Their  development  will  be  a  key 
factor  in  improving  the  competitiveness  of  our  firms  and  the  cohesion  of 
Europe,  and  hence  in  boosting  employment.  The  C o m m i s s i on  will  strive 
to  complete  the  major  transport,  telecommunications  and  energy  projects 
which  have  been  held  up  for  too  long,  chiefly  for  lack  of  proper  funding. 
To  achieve  this  goal  it  will  support  partnership  schemes  between 
the 
private  and  public  sectors. 

Promising 

sectors  for  the 

future 

• 

Intangible  investments  are  now  one  of  the  main  driving  forces  behind  our 
economic  development.  Europe  has  excellent  potential  in  this  field.  It 
must  put  it  to  good  use  by  implementing  genuine  policies  a i m ed  at 

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fostering knowledge and skills. 

Education  and  training  will  play  a  vital  part.  The  Commission  will 
highlight  best  practice  in  a  number  of  fields  -  the  validation  of  skills, 
lifelong 
language  teaching,  the  development  of  learning  (including 
learning)  and  closer  links  between  schools  and  the  workplace.  It  will 
present a new generation of existing programmes (Socrates, Leonardo  and 
Youth)  aimed  at  developing  mobility,  training  for  innovation  and  the 
acquisition  of  skills,  and  at  fully  integrating  the  new  teaching  tools  and 
material offered  by information  technology. 

•  The  goal  is to  put  ourselves  in  the  best  possible  position  for  entering  the 
information  society. The Commission  will be particularly  attentive  to the 
implementation  and  operation  of  the  new  regulatory  framework  for  the 
liberalised telecommunications  market. Electronic trading  and  multimedia 
content will also play a central part in this sea-change. Steps will be  taken 
to  complete  the  regulatory  framework  required  for  these  new  services  to 
develop harmoniously. 

•  Research  and  innovation  have  a  key  role  to  play  in  enhancing  the 
competitiveness  of  industry  in  the  Union.  Research  efforts  must  also 
produce  answers  on  matters  which  are  of  concern  to  the  public: 
employment,  qualify  of  life,  health.  In  1998  the  Commission  will  give 
effect  to the priorities  set in its proposal  for  a fifth  framework  programme 
(1998-2002) through specific  programmes reflecting  the new  "research  by 
objective"  approach.  This  will  involve  close  consultation  with  the  worlds 
of science and  industry.  The Commission  will  begin the reforms  required 
to  achieve  greater  effectiveness 
in  the  implementation  of  research 
operations.  It  will  also  continue  implementing  the  action  plan  on 
innovation. 

•  Taking  a broader  view,  the  main  source  of  new jobs  will  be  in  services. 
Apart  from  the  new  services  associated  with  the  emergence  of  the 
information  society, there  is a demand  in our  societies  for  services  in  the 
social  field,  the  audiovisual  media  and  the  arts.  Governments  should 
encourage  attempts 
this  demand,  acting  not  only  with 
determination, but also with imagination. 

to  meet 

Adapting  in order to advance 

In  a  world  undergoing  rapid  change,  the  ability  to  adapt  is  essential.  In 
Agenda 2000 the Commission  outlined the way ahead to a successful  future. 
Major  reforms  must  be  undertaken,  particularly  in  two  important  areas  of 
Community  activity:  cohesion  policy  and  the  common  agricultural  policy. 
The Commission  will present detailed proposals during the first half of  19%, 
based on the following  guidelines: 

•  The  prospect  of  enlargement  makes  the  task  of  increasing  the  degree  of 
economic  and  social  cohesion  in  the  Union  even  more  important.  One 

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political  priority  is to  reduce  regional  development  disparities  within  the 
Union.  This  will  go  a  long  way  towards  encouraging  lasting  growth  and 
job  creation.  The  solidarity  that  will  be  required  for  this  is  a  decisive 
factor  in  the  integration  process.  The  amounts  involved  are  considerable 
(ECU 275 billion over seven years) but are within the  financial  framework 
laid down by the Interinstitutional  Agreement. 

The Commission will start work on the details of decisions concerning the 
management of the Structural Funds, to be taken at the end of the  1994-99 
programming  period.  Its  objective  will  be  to  respond  to  the  need  for 
greater targeting of funding  on particular geographical  areas and particular 
objectives.  Current  programming  must  be  studied  with  a view  to  making 
the  Funds  more  effective,  particularly  where  job  creation  is  concerned, 
while  making  it  easier  to  accommodate  new  Member  States  within  the 
confines  of  the  financial  perspective.  The  Commission  has  already 
announced  that  it  will  propose  a  reduction  in  the  number  of  objectives 
from  seven  to  three.  High  priority  will  also  be  given  to  simplifying  the 
way the funds  are managed, making them more flexible  and  decentralising 
implementation.  Monitoring,  assessment  and  control  systems  will  be 
strengthened. 

•  The common agricultural  policy  must be adapted  so that it is better  able 
to  withstand  globalisation  and  the  next  enlargement,  at  the  same  time  as 
providing farmers with a fair standard of living. The Commission wants to 
carry  on  from  where  the  1992  reforms  left  off,  as  the  new  changes  are 
simply  an  extension  of  the  old  ones.  The  World  Trade  Organisation's 
rules,  and  the prospect  of  international  WTO  negotiations  in  1999,  mean 
that the Union must be in a position to defend  its interests from  a position 
of  strength.  Accordingly,  the  Commission  will  propose  in  1998  that  the 
guidelines  spelled  out  in  Agenda 2000  be  put  into  effect.  They  will  be 
needed  even  if  there/ is  no  enlargement.  On  this  basis,  the  Commission 
will  propose  draft  legislation  on  cereals,  oilseed  and  protein  crops,  beef 
and  veal,  milk  products,  tobacco,  olive  oil  and  wine.  A  pricing  policy 
aimed  at  bringing  prices  closer  to  those  on  the  world  market  will  also  be 
proposed.  Direct aid  will  replace  the old price-support  mechanisms.  Care 
will  be taken  not to over-compensate.  The  reforms  must  be  accompanied 
by  a  reorganisation  of  the  instruments  currently  in  place  for  rural  policy 
and  should  lead  to  an  agricultural  industry  that  cares  about  quality  and 
respects the environment. 

3.2 

Preparing for the arrival of new Member States 

from 

ten  countries 

In  July  1997  the  Commission  gave  its  opinion  on  the  applications  for 
membership 
It 
recommended  that  accession  negotiations  be  opened  with  five  of  them: 
Hungary, Poland,  Estonia, the Czech Republic and  Slovenia.  On the basis of 
the  earlier  Commission  opinion,  accession  negotiations  with  Cyprus  are due 
to start six months after  the date of the Intergovernmental  Conference. 

in  central  and  eastern  Europe. 

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The  Commission  proposes  an  approach  which  is  at  once  inclusive  and 
evolutive,  allowing  the  countries  not  concerned  initially  by  the  opening  of 
negotiations to take part  in the process so that they can join  when the time is 
right, provided they meet the criteria. An ongoing European  conference,  open 
to  all  the  associated  countries  seeking  to join  the  Union,  would  be  a  useful 
addition  to  the  proposed  approach,  providing  a  forum  for  a  constructive 
discussion on matters of common  interest. 

In  order  to  support  the  efforts  being  made  by  the  countries  concerned  to 
prepare  for  accession,  and  in  particular  to  take  over  the  full  body  of 
Community  legislation,  the  Commission  plans  to  strengthen  the  present 
pre-accession strategy. Its proposals cover: 

- 

- 

- 

the establishment  of an individualised  "partnership  for  accession" with 
each  of  the  applicant  countries  from  Central  and  Eastern  Europe, 
addressing the specific difficulties  identified  in the opinions; 

doubling  of  pre-accession  aid  in  2000,  within  the  confines  of  the 
financial perspective; 

participation of the applicant countries in Community  programmes. 

The  Commission  also  envisages  preparing  an  annual  report - the  first  at  the 
end  of  1998-  assessing  the  progress  made  by  each  applicant  country,  in 
particular the ability to apply the whole range of Union law. On this basis the 
Commission  should  be  in  a  position  to  recommend  to  the  Council  that 
negotiations be opened as soon as the conditions of accession are  satisfied. 

3.3 

Designing a suitable financial  framework 

A new  financial  framework  will  be  needed  when  the  current  one  expires  in 
1999, in order to cope with  all  the changes  that  are  likely  to  be  made  in  the 
medium  and  long  term  to  the  way  the  Union  is  run.  The  new  framework 
should: 

- 

- 

- 

run for a sufficiently  long period (until 2006); 

cover  all  essential  financial  requirements  in  the  lead-up  to  the  next 
enlargement; 

ensure sound management of public finances. 

As  the  Commission  explained  in  Agenda 2000,  it  believes  that,  with  tight 
budget  discipline,  it  is possible to  strengthen  and  adapt  the  Union's  policies 
as  well  as  taking  in  new  members,  without  exceeding  the  current  own 
resources ceiling of  1.27% of GNP. Analysis has shown that  some room  for 
manoeuvre can be found within this limit. 

In 1998 the Commission will propose the new financial  perspective for 2000-
2006. In the course of the year it will prepare a report on the operation  of the 

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own  resources  system.  It is in the  Union's  interests  to  sort  these  matters  out 
as soon as possible, not only so that it can take in the new members when the 
time  comes, but  also to  give  it the  resources  for  coping  effectively  with  any 
internal changes that prove necessary. 

4. 

THE  UNION  IN  THE  WORLD:  A  POSITION  AND  A  ROLE  TO 
ASSERT 

The  problem  is well  known:  despite  its position  as the  leading  trade  power 
and  the  biggest  donor  of  international  aid,  Europe  needs  to  enhance  its 
capacity  for  collective  action  in the  field  of  external  relations  and  meet  the 
the  public  for  greater  unity,  coherence  and 
growing  demand  from 
effectiveness  in  its  efforts  to  bring  peace,  stability  and  prosperity  to  the 
continent  of  Europe  and  the  world  at  large.  The  European  Union  must 
continue  to  promote  values  such  as  democracy  and  human  rights,  give 
assistance to the least developed  areas of the world, respond to  humanitarian 
crises,  make  its  presence  felt  on  the  international  scene  and  the  world 
markets. 

The  next  enlargement  of  the  European  Union  will  be  an  unprecedented 
challenge.  It  will  give  Europe  greater  weight  in  the  world  and  enable  the 
continent to become a united and stable whole. The task now is to bring the 
prospective new members into the basic integration  framework. 

The  Commission  will  also  be  seeking  to  deepen  relations  between  the 
European Union and Turkey. 

It  is  also  important  for  the  Union  to  develop  deeper  relations  with  Russia, 
Ukraine and the other new independent states. 

The  Commission  will  continue  its  action  and  support  to  bring  peace  to  the 
Balkans,  in  particular  through  the  reconstruction  efforts  in  Bosnia  and  the 
regional approach advocated by the Union. 

The  Union  must  also  continue  actively  to  strengthen  its  relations  with  its 
Mediterranean partners. The full  potential of the Barcelona  process must be 
exploited  to  that  end.  The  Union  must  step  up  its  presence  in  the  Middle 
East, pushing  for  economic  integration  and  cementing  its role  as one  of  the 
principal promoters of peace in the region. 

The  Union  will  have  to  boost  relations  with  the  United  States  through 
implementation of the New Transatlantic Agenda. 

Development  cooperation  is  another  of  the  Union's  main  priorities  for 
external relations. This will be demonstrated  by the new partnership to be set 
up between the EU and the ACP states, which should not blind the Union to 
the fact that political and economic situations differ  from  country to country. 

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Asia and Latin America are two more regions that call  for  special  attention, 
in Asia's case through the ASEM  process and relations with ASEAN, and  in 
the  case  of  Latin  America  through 
the  development  of  association 
instruments. 

The  European  Union  has  a  global  role  to  play.  It  must  bolster  its  ability  to 
take  political  decisions  and  ensure  that  all  its  various  activities  form  a 
cohesive  whole.  For  this,  an  integrated  approach  to  external  relations  is 
essential  and there needs to be greater coordination  between  what the  Union 
does and the national action by the Member States. 

The  Union  will  continue  to  be  a  prime  player  in  multilateral  trade 
negotiations,  particularly  in  the  WTO.  It  will  continue  to  support  the 
accession of Russia and China to the WTO. Europe must take full  advantage 
of  the  multilateral  trade  system  to  obtain  better  access  for  its  products  and 
services  to  foreign  markets  and  to  settle  the  economic  and  commercial 
differences  that  can  sometimes  arise  with  its  partners,  while  giving  due 
attention to other considerations including the environment and public health. 
The  Union  must  also  combine  internal  and  external  policies  to  produce  the 
greatest  effect,  maximising  the  external  potential  of  the  single  market  and 
EMU. 

The  Union  has  to  find  ways  of  dealing  more  effectively  with  cross-border 
problems  such  as  drug-trafficking,  organised  crime  and  environmental 
threats. 

Lastly,  the  Union  is  the  world's  biggest  donor  of  development  aid  and  the 
leading  donor  of  humanitarian  aid.  As  such,  the  Union  needs  to  raise  the 
profile  of its international  activities, to explain more clearly  and  demonstrate 
the value of what it does. 

5. 

SERVING THE PUBLIC FOR A BETTER QUALITY OF LIFE 

Improving the quality  of life  for  the  European  public  continues  to  be  one  of 
the  Commission's  priorities.  The  implications  of  this  objective  for  the 
formulation  and  implementation  of  the  Union's  policies  must  be  given  even 
more  attention  than  at  present.  Both  at  national  and  Union  level,  European 
affairs  must  be  handled  with  maximum  effectiveness,  openness  and 
competence. The Commission intends to take a number of measures with this 
goal in mind. 

©  In  view  of  the  growing  concern  about  improving  public  health,  the 
Commission  will  ensure  that  all  its  initiatives  incorporate  high  standards 
of protection. 

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•  In  recent  years,  Europeans  have  quite  rightly  been  demanding  better 
standards  of  consumer  health.  Higher  standards  of  protection  will  be 
demanded  when  products  for  human  consumption  are  placed  on  the 

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market.  Rules  on  labelling, testing  for  potential  health  risks  and  pre -sales 
checks  on  production  procedures  will  all  be  strictly  applied  by  the 
Commission, in the interests of strict consumer protection. To this end, the 
Commission  will propose  amendments  to a number  of existing  directives 
relating to the environment and agriculture. 

Respect  for  basic  values  and  human  dignity 
is  also  a  priority. 
Technological  progress,  particularly  in  the  field  of  genetic  engineering, 
raises certain ethical questions. The Commission  intends to address these 
concerns, relying  for  guidance  on the  opinions  of  the  Group  of  Advisers 
on  the  Ethical  Implications  of  Biotechnology,  an  independent  group  of 
experts set up to consider these matters. 

The development  of the Union should not jeopardise  high  environmental 
standards.  The  European  public  rightly  attaches  great  importance  to 
ecological  issues.  The  Commission  will  be  at  pains  to  respond  to  public 
concern. The environment policy should be a help rather than a hindrance: 
a  healthy  environment  is  not  incompatible  with  the  imperative  of 
economic  growth.  Environmental  standards  must  be  enforced  in  such  a 
way  as  to  make  Europe  more  competitive  and  reduce  unemployment,  as 
the  Commission  communication  on  the  environment  and  employment 
made  clear.  The  Commission's  activities  in  1998 will  be  geared  towards 
achieving this objective. In particular, the environmental  implications will 
be taken into consideration  in the implementation  of other Union  policies 
(especially agriculture and the single market) and through the achievement 
of  the  priorities  set  out  in the  mid-term  review  of  the  5th  environmental 
action  programme.  Particular  attention  will  be  paid  to  environmental 
issues  in  relation  to  enlargement,  especially  on  the  matter  of  nuclear 
safety. 

• 

One of the ways for  European citizens to find better living conditions  lies 
in the  unrestricted  right to  move  freely  inside the  Union  and  settle  in the 
country of their choice. On the basis of the recommendations  contained in 
the  Veil  report,  the  Commission  will  work  towards  making  the  principle 
of free movement of people a reality. Achievement of this will go hand in 
hand with that of an area of security and justice. 

The new possibilities  opened  up by  the  Amsterdam  Treaty  in the  area  of 
justice  and  home  affairs  will make  it possible to provide  an  appropriate 
response  to  the  challenges  we  face:  organised  crime,  fraud,  corruption, 
trafficking  in human beings and drugs. 

•  The  changes  in  the  Union's  policies  will  call  for  parallel  changes  in  the 
methods  of  administration.  Consequently  there  is  a  need  for  the 
Community  institutions  to  adapt  and  modernise  their  administrative 
structures and decision-making  machinery. 

The  Commission  is  currently  in  the  process  of  implementing  a  major 
internal  reform  programme,  consisting  of  two  projects  known  as 

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SEM 2000 and  MAP 2000.  The Commission  is looking at  ways of  going 
beyond  these two projects,  its ultimate  goal  being to transform  the  way  it 
works to create a modern administration. 

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ISSN 0254-1475 

COM(97) 517 final 

DOCUMENTS 

EN 

01  06  11 

Catalogue number  :  CB-CO-97-532-EN-C 

ISBN  92-78-25889-X 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg