Opinion of the Committee of the Regions on the 'Communication from the Commission on the Social Action Programme 1998-2000'
Date: 1999-01-14
Institutions: European Committee of the Regions
Subjects: EU employment policy, European social policy, cooperation policy, local authority, regional authority, social change

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Opinion of the Committee of the Regions on the ‘Communication from the Commission on
the Social Action Programme 1998-2000’

THE COMMITTEE OF THE REGIONS,

(1999/C 93/09)

having regard to the Communication from the Commission on the Social Action Programme
1998-2000 (COM(1998) 259 final);

having regard to the decision of the Commission on 5 May 1998 to consult the Committee,
under the first paragraph of Article 198c of the Treaty establishing the European Community;

having regard to the decision of its Bureau on 13 May 1998 to instruct Commission 5 for
Social Policy, Public Health, Consumer Protection, Research and Tourism to draw up the
relevant opinion;

having regard to the Draft Opinion (CdR 277/98 rev.) adopted by Commission 5 on
9 November 1998 (rapporteur: Ms Buron),

adopted the following opinion at its 27th plenary session held on 13 and 14 January 1999
(meeting of 14 January).

1.

Introduction: justification of the Commission com-
munication

1.1.3.
wider, sounder legal bases, as a result not least
of the incorporation of the social chapter and an
employment title into the Amsterdam Treaty;

1.1. A new stage in social policy

The Committee of the Regions feels that the European
Commission’s Communication on the Social Action
Programme 1998-2000 is an essential tool in the develop-
ment of the European social model.

1.1.1.
The Committee set out its priorities regarding
this social model in the following opinions in particular:

— 11 June 1997 — Report of the Comité des Sages: for

a Europe of civic and social rights;

— 20 September 1995 — Medium-term Social Action

Programme (1995-1997);

— 16 November 1994 — European social policy: a way

forward for the Union.

The Social Action Programme 1998-2002 is particularly
important since it marks a new stage in European social
policy, of which the key features are:

1.1.4.
greater emphasis on social policy in other
Community policies, with an acknowledgement, finally,
of the correlation between economic and social policy.
In practice, this is reflected in joint ECOFIN/social
affairs meetings of the Council of Ministers. The annual
adoption of employment guidelines and the scrutiny of
national employment plans mark the start of a process
that broadly mirrors the multilateral surveillance carried
out on the economic front;

1.1.5.
a new legislative drive, drawing on agreements
between the social partners, and culminating in the
adoption of a number of important directives.

1.2. The European social model: challenges and

priorities

The European social model faces many challenges,
making it all the more vital to embark on this new stage.
The Commission communication rightly underlines the
nature of these challenges:

1.1.2.

a broad-based approach which embraces:

— the persistence of unacceptably low employment

levels;

— employment promotion;

— issues of exclusion and equal opportunities and

— the need to rapidly accommodate new forms of work
organization and the advent of the information
society;

— a commitment, through reform, to the defence of an

— growing manifestations of exclusion even in a society

effective social protection system;

which is broadly ‘rich’ by world standards;

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— ageing of the population and

— society’s desire for a deeper democracy and real ‘civil

dialogue’.

1.3. Moreover, tensions between economic competi-
tiveness and the social model are increasingly apparent
in today’s world: budgetary restraints versus the equal-
ization of resources (pensions, benefits), labour costs
versus the minimum wage, flexibility versus security,
and so on. Europe must build on its social model to
ensure that these tensions do not become deep-seated
contradictions. This is imperative as exclusion is an
increasingly common phenomenon in cities, often
spawning racism and divisions between communities;
the number of jobless is rising, and benefits and pensions
systems are reaching saturation point. The process
will be not be easy, particularly given the budgetary
constraints facing all tiers of European government
(national, regional and local), but there is no doubt that
it is indispensable.

1.4.
The COR firmly believes that the European
social model should assimilate changes while developing
the means to anticipate them. A Europe-wide approach
is vital here to guarantee minimum social standards and
social cohesion within the Union — a necessary condition
for economic growth.

the local authorities — particularly the smaller ones —
have shown that they have a good grasp of the changing
needs of their areas, and also of the means and social
measures best suited to tackle the problems successfully.
In terms of the administrative arrangements across the
European Union, this implies a more thorough awareness
(drawing on the appropriate statistical tools) of local
and regional authorities’ remits and activities in the
various policy areas outlined in the communication.

1.6. Moreover, the COR would stress that local and
regional authority action to promote employment and
eradicate exclusion must be given the requisite financial
backing at national and European level.

The Committee wishes to make the following specific
comments on the Commission communication:

2. Bases for renewal

The Commission is right to highlight the more solid
grounding of EU social policy today and the range of
tools which can be deployed for its renewal. These
include a wider legal basis in the treaties, the adoption
of new legislative proposals, a deepening of social
dialogue and a widening of the social policy debate.

Social policy renewal must therefore apply both to the
foundations of the Union and to specific, carefully
coordinated initiatives that form part of a wider strategy.

1.5. Major changes and the local and regional auth-

orities

2.1. Acquis: the ratification of the Treaty of Amster-

dam

This state of affairs concerns all tiers of public adminis-
tration (Union, Member States, regions and local auth-
orities), and the European Commission occupies a
pivotal position as coordinator and driving force. While
the state is responsible for national social policy, local
and regional authorities are in the front line when it
comes to dealing with changes to that policy. Changes
begin locally and affect geographical areas, and it is
local and regional authorities that have had to face up
to and deal with the consequences. Despite inadequate
funding to meet this increased burden of work, local
authorities have demonstrably been able to adapt: they
have become facilitators of economic growth to favour
employment; they provide for social integration; and
they update their services in order to maintain cohesion
within their own area. They are the daily manifestation
of the subsidiarity principle. It is for the sake of that
principle that regional and local government must be
drawn into European social policy making and help to
devise solutions to their everyday problems. Once again,

The primary acquis is the Treaty of Amsterdam. The
COR maintains that in some areas, as was the case for
employment policy, practical planning should begin
immediately, in anticipation of ratification of the Treaty
by the Member States. For example, measures should
be proposed to improve the situation of the disabled, on
the basis of Article 95 of the Treaty of Amsterdam and
the relevant accompanying declaration, and taking
account of the Member States’ responsibilities.

2.2. Continuing the legislative process

The second acquis is the directives adopted or proposed
by the European Commission in the fields of health and
safety, working conditions and equal opportunities. As
the Commission rightly stresses, the recent directives on
works councils, parental leave and atypical work show
the need for the Commission, the Council and the
European Parliament to take legislative action in order

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to build on the existing platform of minimum social
standards. The COR stresses in particular the need for
the Commission to implement the measures listed in
Annex 2 of the communication. Moreover, this work
must go on, drawing primarily on European social
dialogue.

— providing local and regional public services.

The local and regional authorities are ready to take on
these responsibilities, as long as they are provided with
adequate funds.

2.3. Work programme

The COR welcomes the implementation of the Com-
mission work programme. Since strategic initiatives of
this kind have an impact on local and regional auth-
orities, the Committee feels that it should be consulted
on the programme as a whole.

2.4. Social policy debate

The COR is in favour of European social policy taking
account of areas such as population trends, social
protection and the fight against racism. Social policy
must be treated globally and mainstreamed into all other
Community policies.

3.1.

In the area of social affairs in particular: Specifi-
cally local role — providing services

Unemployment is the main challenge: the employment
rate is still too low. The reasons for this vary widely,
with under-qualification a particular source of concern.
Furthermore, job loss and an inaccessible labour market
lead to exclusion, poverty and the need to retrain. Local
and regional authorities may have little room for
manoeuvre when it comes to economic policy, but they
do support business development and the education and
training of men and women, besides providing public
services (benefits, housing, health care, social integration
and citizenship). To this end they must modernize.

This integration process must not be limited to matters
such as equal opportunities: all the social aspects
of Community policies must be taken into account
systematically.

Forms of work and the organization of work are
3.2.
changing: a response to these changes can be found in
adaptability and flexibility, if they are achieved through
negotiation and if job security is safeguarded.

3. Rising to the challenges of a changing world

These changes, linked largely to developments in the
world of work, often cause major problems for local
authorities, which are faced with crisis situations (com-
pany closures, labour market shortcomings, exclusion).
They are constantly required to experiment with new
ways of protecting their communities. Whilst the state
is still responsible for many aspects of social policy, the
local authorities are playing an ever-increasing role in:

— providing employment;

— managing social exclusion;

— facilitating local economic activity;

— providing social services;

3.3.
Social exclusion persists despite state aid policies
and is jeopardizing the European social model. New
ways of fighting exclusion are being tried out at local
and regional
level: these pilot schemes should fuel
national and European debate on renewing social policy.

3.4.
The Committee stresses the importance of
drawing up an inventory of European local and regional
authority powers and the kinds of initiatives they pursue
in these fields. The Committee would ask Member
States and the Council to ensure that their involvement
in these policies is fully brought to bear. This inventory
is all the more essential to enable the European Union
to take full account of the various schemes organized
by regional and local authorities in the social field,
particularly in the light of forthcoming Structural Fund
reform.

— taking responsibility for health and safety;

— organizing public participation in the democratic

process;

3.5. Meanwhile, the Committee calls on the Com-
mission to ensure that there is no contradiction between
competition policy (monitoring the allocation of state
and regional aid) and local job creation.

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3.6. The need for statistical knowledge and indicators

Local authorities are responsible for many aspects of
social policy, as a result of their powers and proximity
to the public, but they lack the indicators and statistical
knowledge to enable them to evaluate social and
population trends in their areas, and the impact of their
action. Moreover, Community institutions need local
indicators to assess cohesion policy, urban policy and
the impact of the Structural Funds, and to enhance the
debate on the European Spatial Development Perspective
(ESDP). However, to avoid undue financial burden on
local and regional authorities, this task should be
incorporated into the statistical activities of the EU.

The Committee calls for these indicators to be developed
on a local or regional basis (NUTS II or III).

Preparations must be made for their accession, in order
to avert the effects of differences in labour costs, social
protection and working conditions. Sudden adjustment
is out of the question for these countries; work to help
them make the necessary changes must therefore begin
now, for the sake of future European cohesion.

3.10.

Involving the future Member States in the COR

The COR takes the view that though local and regional
government is not highly developed in these countries,
it will play a critical part in the process, owing to its
proximity to the general public. The Committee calls
for the local and regional authorities of the future
Member States to be given observer status in the
Committee of the Regions, so as to enable them to take
an active part in the enlargement of the Union.

3.7. For European integration as a whole: Combining

economic and social aspects

3.11. Pooling experience

With monetary union, the EU is set to complete the
integration of the single market. There is an overriding
economic imperative, but in no instance must the social
dimension be dissociated from it; the interaction between
economic and social aspects must be given due consider-
ation. The Commission, the Member States and the
local authorities must be given pointers to help them
appreciate this interdependence and they must step up
debate and exchange, in order to ensure coordination
of economic and social policies across the board.

3.8. Demographic data

The Commission rightly highlights the importance
of this issue. The impact of population trends on
employment and social protection systems, not to
mention living conditions, healthcare and public services
is mounting. All these areas are the responsibility of
local authorities: they will call for added investment but
could also generate employment.

3.9. Enlargement

The COR also hopes that opportunities will be found
to pool experience with the local authorities of the
future Member States on specific matters, and asks that,
with them in mind, the Phare programme be reviewed
to incorporate a social policy section.

4. The next steps: pursuing an agenda for change

The COR concurs with the objectives set by the
European Commission: social progress must go hand in
hand with economic progress. The concept of living
standards is central, but it must encompass quality of life,
equal opportunities and social cohesion. Furthermore,
although employment is crucial, it alone cannot generate
an inclusive society. Integration, health and quality of
life (living conditions, transport, education) facilitate
access to employment. Local and regional authorities
have a critical part to play here.

4.1. Tools: Partnership

The local level as the natural habitat for partnership;
structuring the partnership:

The renewed European social model must take EU
enlargement into account. An essential precondition for
the accession of new Member States is that they adopt
the acquis communautaire. The applicant countries’
economic, social and demographic structures differ
considerably from those of the existing Member States.

The Commission states that partnership is a prime tool
for renewing European social policy, and the COR
supports that view. The Commission hopes that partner-
ship will deepen the debate on social policy by means of
political, social and civil dialogue. The COR believes

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that the most appropriate place to build that dialogue is
locally and regionally. It is here that the political,
economic and social partners can meet to decide on
common strategies and reach political consensus.

The COR also feels that support should be given to
pilot programmes for local authorities, especially in the
employment field. Local and regional authorities need
clearly identified access to this funding and more
straightforward administrative arrangements.

A new factor to be taken into consideration is
4.2.
the advent of European citizenship and the desire to find
a place for civil dialogue alongside social dialogue in the
institutional system.

4.7. Measures

Employment

4.3.
‘Civil’ dialogue with the public is most effective
at local level, centring on commonly recognized goals.
Local and regional authorities are primary partners for
both employment policy and an inclusive society.

The COR welcomes the European Commission’s
4.4.
move to strengthen the partnership principle within the
Structural Funds, and calls for the same principle to be
followed in the debate on European social policy. Local
and regional authorities must be allowed to input their
experience in drafting, implementing (where they are in
the front line) and assessing the policy, as part of a
programme coordinated by the European Commission.

4.5. Setting up forums for exchange

The European Commission has set up working groups
(e.g. for anticipating industrial change) whose purpose
is of direct concern to local and regional authorities.
The COR feels that all too often local and regional
authorities are absent from this type of initiative and
asks that in future it be included in these groups and in
the regular discussions mentioned in the Commission
communication. As in the past, the COR would particu-
larly like to be involved in the next European Social
Fora. The preliminary work for these fora should be
carried out in conjunction with the local and regional
authorities, who should also be brought into any
social policy debate launched by forthcoming Union
presidencies.

4.6. Financial support: easier access for local auth-

orities

* F r a m e w o r k :

i n v o l v i n g

l o c a l

o r i t i e s
i n
a s s e s s m e n t

t h e N A P s

a n d

a u t h -
i n N A P

The Commission stresses that economic and monetary
convergence must be accompanied by employment
policy convergence as agreed by the Union. Convergence
is to be achieved by means of national employment
plans (NAPs), prepared by each Member State. The
communication highlights the need to involve regional
bodies, and the Committee of the Regions would stress
this point. A study of the 1998 NAPs reveals that,
despite their key role in employment, local and regional
authorities were barely consulted in the preparation of
the plans and are all too rarely involved in implementing
them.

4.8.
The COR calls on the Council to involve it in
developing employment guidelines, and would press the
Member States to enlist local and regional authority
support in implementing the national action plans for
employment. Local employment policies must become
part and parcel of this mechanism and must no longer
be reduced to ad hoc corrective measures: they should
be part of a global strategy.

* A c t i v i t i e s

4.9.
From 1998, the Commission hopes to launch a
number of debates. They concern local and regional
authorities, and the COR would like to be involved in
them:

Standard of living and employment rate: living
4.9.1.
standards must be improved while aiming to reduce
regional inequalities and thus further the geographical
cohesion of the Union.

The Committee of the Regions endorses the Com-
mission’s proposals regarding the ESF and Objective 3.
It points out, however, that the ‘human resource’
dimension requires planning, execution and follow-up
to be connected as closely as possible to local realities.

4.9.2.
Stepping up local information exchange: the
COR stresses the need to pool data, best practice and
innovation regarding the labour market. More than a
nation-wide exercise, this should provide a way of
measuring both the impact of local developments and
the gaps to be bridged.

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4.9.3.
Given that innovation often takes place at local
level, this programme for pooling experience and data
must be carried out locally/regionally. In addition, local
and regional authorities must be able to interpret the
information in order to assess the situation and trends
in their areas. This database must also be consistent
with Structural Fund allocation criteria.

4.9.4.
The COR would like to be consulted on the
setting-up of a database of this kind, to which local and
regional authorities must have easy access.

4.9.5.
Undeclared work: this type of employment
runs contrary to workers’ basic rights, but in some
countries it accounts for a considerable proportion of
local jobs. Thanks to their closeness to the citizen,
local and regional authorities can be instrumental in
unearthing undeclared work and reintegrating such
workers — particularly the most vulnerable groups —
into the labour market. Local and regional authorities
can undoubtedly play a valuable role in combating child
labour.

4.10.
Updating education and training programmes:
inasmuch as their remit covers these areas, local and
regional authorities will be partners in the new Com-
munity programmes and must be involved in the
preliminary work.

Entrepreneurship, adaptation and training:
4.10.1.
local and regional authorities stimulate economic devel-
opment and already help to provide locally-tailored
services to encourage start-ups (business parks, joint
management services, etc.). They are also able to
gauge the training and re-training requirements of the
workforce, in collaboration with local companies. The
COR hopes that the dialogue between private sector
and local authorities on adapting human resources will
be taken into account in the new Structural Funds
Objective 3.

4.10.2.
Equal opportunities: local and regional auth-
orities can assist here by providing the services that
make such equality possible: reception centres for
children and dependants, mobility for the disabled, and
so on. They provide support for the most vulnerable
groups within society, such as young people, women
and the long-term unemployed. Their experience should
be tapped when preparing EU programmes.

4.9.6.
highlight
authorities to the creation of SMEs.

Backing entrepreneurship: the COR would
the support given by local and regional

Family life: no employment strategy sensitive
4.10.3.
to family life and to changes in family structures can be
framed without closely involving the local authorities,
as they are responsible for social services, healthcare
facilities, and services for older people.

employment

4.9.7. Modernizing public
services:
studies of public employment services show that
devolved or decentralized services are more effective as
they are closer to the needs of job-seekers and companies.
Local and regional authorities must be involved in this
modernization process.

4.10.4.
Free movement: on this issue too, local and
regional authorities — particularly those in border areas
— should cooperate with the Commission with a view
to setting up pilot projects.

4.9.8.
Local development measures: innovative local
job creation measures are the key to employment growth
in Europe. Some lean on the social economy, while
others take direct action in the market sector. These
practices have been analysed by the European Com-
mission’s Forward Studies Unit. The COR supports
such measures. It asks the Commission to press ahead
with this work and to disseminate the results as widely
as possible, with optimum access for local and regional
authorities, particularly via the Internet. It also hopes
that the Commission will continue to support the
Territorial Employment Pacts. The Committee once
again stresses that local and regional authorities must
have the human and financial resources they need
to carry through these innovative schemes and that
Structural Fund support should be widely available for
local development in general.

4.11. The changing world of work

4.11.1. D e v e l o p i n g t h e s o c i a l d i a l o g u e

In future, the Committee of the Regions would like to
see local and regional authorities actively involved in
the social dialogue, as they are at the very core of the
‘social contract’ and democracy.

4.11.2.
Local and regional authorities are major
employers, and the COR supports the organizations
that take part in and further the social dialogue at
sectoral level. The Committee feels that it would be

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desirable — under terms appropriate to the various
national administrative systems — to involve local and
regional authority employers in the framing of European
work-related legislation.

4.11.7. H e a l t h a n d s a f e t y

4.11.3. T e l e w o r k i n g

Teleworking can help to generate work in areas that are
a long way from traditional service centres. To optimize
the development of teleworking, the COR calls for
legislation to protect teleworkers, while taking account
of the specifically local nature of this type of work.

This issue affects local and regional authorities on two
counts:

— as employers, and

— as environmental managers: directives on the
environment must be coordinated with those on
health and safety.

4.11.4. A n t i c i p a t i n g c h a n g e

4.12. An inclusive society

Anticipating industrial change is a key issue for local
and regional authorities; it is essential if economic crises
and social deprivation are to be averted in the areas
concerned. The issue of the compatibility of state aid
with Structural Fund support must also be addressed
from a local/regional standpoint. The COR is disap-
pointed not to have been involved in the follow-up to
the work of the high-level group on this issue, and would
urge that local and regional perspectives be catered for
in future work.

Integration requires grassroots action tailored to the
needs of the public, and this is where local authority
involvement is most essential. ‘Public’ policies, rightly
described by the Commission as irreplaceable, are largely
local, regional and urban policies, although they are
part of national social protection schemes.

Social protection

4.11.5.

I n f o r m a t i o n
s e r v i c e s

s o c i e t y

a n d

n e w

4.13. Exchanging best practice

The information society concerns local and regional
authorities in two respects: firstly in terms of their own
organization, and secondly in relation to the public
services which they provide. Local authorities manage
sectors in which the information society has a major
impact (health, safety, transport, etc.). A major effort is
required to retrain the workforce and adjust structures
in order to make optimum use of the new technologies.
Local authorities are also instrumental in ensuring that
everyone shares access to the information society. They
must bridge the gap between industrial development
and public needs, preventing a gulf from forming
between the people ‘in the know’ and those with no
access to the new technologies.

4.11.6.
The COR takes the view that the new tech-
nologies are set to change the democratic relationship
between the public and local and regional government,
generating new forms of democratic participation. The
Committee hopes that the necessary resources and
expertise will be made available to local and regional
authorities under specific programmes and the Structural
Funds.

It would be useful to be able to compare local government
input (funding, implementation) when assessing pro-
gress on convergence between social protection systems.

4.14. Encouraging self-employment

Self-employment is an under-exploited source of new
jobs in Europe, compared for instance with the United
States. One major obstacle is the fact that social
protection leans in favour of salaried work. Local and
regional authorities give grants to entrepreneurs, and
the COR would like to see this backed up by a
national and Commission-level debate on encouraging
self-employment. The Committee would highlight the
importance of creating micro-enterprises in disadvan-
taged rural and problem urban areas, and for vulnerable
groups such as women and young people. In this context
also, the COR proposes that consideration be given to
ways of supporting ‘social economy’ undertakings and
that partners in these undertakings should be treated on
the same basis as persons in paid employment.

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4.15. Population trends

4.21. Public health

In view of the implications of population trends and
movements for local authorities (e.g. the attraction of
certain areas for senior citizens), the COR would like to
be involved in the consultations on this issue launched
by the Commission, which must take due account of the
area-specific factors involved here.

Local and regional authorities are in the front line when
it comes to facing and dealing with the consequences of
certain changes (e.g. the ageing population). Here too,
local and regional statistics are needed. Moreover, the
Europe-wide exchange of best practice is one way of
pinpointing innovative and transferable methods.

4.16. Mobility and pensions

5. The external dimension

A mobile workforce could help to make up the shortfall
in skilled labour in certain employment areas. Mobility
must be made easier, for instance by making pensions
transferable within the Union. In the long term, worker
mobility will benefit from the convergence of social
security and tax systems.

The exchange of experience between local auth-
5.1.
orities provides a springboard for promoting the Euro-
pean social model. The addition of a social clause to the
World Trade Organization agreements would also be a
powerful means of gaining international recognition for
the social dimension.

4.17. Local integration measures

The COR shares the Commission’s view that there is a
need to move on from passive integration measures
(benefits) to active measures (reintegration into the
labour market, social economy, etc.). Many local and
regional authorities are already testing measures of this
kind.

4.18.
The COR calls on the Commission to take
practical steps to include local operators in a debate on
anti-exclusion policies, as outlined in the communi-
cation. Cities are the worst affected by exclusion
phenomena, which jeopardize urban safety, cohesion
and the sense of citizenship. The Committee would
stress the role of local and regional authorities in the
drive to eradicate illiteracy and integrate migrants.

4.19.
The Committee supports the Commission’s
initiative to develop a programme to address the refugee
problem, which is particularly acute in certain European
countries.

4.20. Equal opportunities

5.2.
Although the European social model cannot be
exported as it stands, the Commission rightly notes that
Europe can promote social progress on the world stage.
The Commission’s
interregional cooperation pro-
grammes could play a key role here. The COR calls for
a social strand to be included in the future Community
initiative that will form the framework for external
interregional cooperation.

6. Conclusions

The COR endorses the objectives defined by the Com-
mission in its communication and the measures planned
for improving the European social model in response to
economic and social change. The Committee reiterates
the fact that local and regional authorities are central to
this process, given their proximity to the public and
their capacity for innovation. They must be given an
opportunity to participate fully and effectively in the
debate on the future of the European social model. To
this end,

the Committee of the Regions hopes:

6.1.
to be involved in Community employment policy,
particularly in the preparation of the European Employ-
ment Guidelines in the year 2000; it urges Member States
to draw up their national action plans in partnership
with local and regional authorities;

The COR is committed to equality and the fight against
discrimination. Local initiatives are vital here, in order
to guarantee social cohesion and integration within
communities.

to be consulted on the setting-up of a local and
6.2.
regional social policy database, which should provide

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statistics for comparing and assessing social cohesion in
Europe;

that local and regional authorities, as employers,

6.3.
will be given a place in European social dialogue;

6.5.
that the Commission will develop support pro-
grammes for the innovative pilot projects set up by local
and regional authorities in the fields of employment and
social policy;

6.4.
to take part in the European consultation pro-
cesses on social policy, and in particular, to help prepare
any future European Social Forum, where greater
consideration should be given to the role of local
authorities;

6.6.
that the local and regional authorities of the
Union’s future Member States will be involved in
Community social policy, with regard to employment
in particular, and will be able to take part in the work
of the Committee of the Regions.

Brussels, 14 January 1999.

The President

of the Committee of the Regions

Manfred DAMMEYER

Opinion of the Committee of the Regions on:

— the ‘Proposal for a Council Regulation (EC) laying down detailed rules for the application

of Article 93 of the EC Treaty’, and

— the ‘Regional and local room for manoeuvre in economic policymaking and EU state aid

control’

THE COMMITTEE OF THE REGIONS,

(1999/C 93/10)

having regard to the Proposal for a Council Regulation (EC) laying down detailed rules for
the application of Article 93 of the EC Treaty (COM(1998) 73 final — 98/0060 CNS) (1);

having regard to the COR Bureau’s decision of 13 May 1998, under the fourth paragraph of
Article 198c of the Treaty establishing the European Community, to draw up an opinion on
the subject and to instruct Commission 6 — Employment, Economic Policy, Single Market,
Industry, SMEs, — to prepare the Committee’s work on the subject;

having regard to the draft opinion (CdR 284/98 rev. 2) adopted by Commission 6 on
30 November 1998 (rapporteurs: Mr Stoiber and Mr Sanz Alonso);

whereas the Committee of the Regions has drawn attention to the conflict between regional
and competition policy in its opinion on the ‘Communication from the Commission to the
Member States on the links between regional and competition policy: Reinforcing concentration
and mutual consistency’ (CdR 236/98 fin) (2);

whereas regional economic policymaking is a core responsibility of the European Union’s
regions and local authorities;

whereas competition policy and fair competition offer a level playing field and better
opportunities for all;

whereas at the same time, this by its very nature restricts the economic room for manoeuvre
for national and devolved tiers of government,

adopted the following opinion at its 27th plenary session of 13 and 14 January 1999 (meeting
of 14 January).

(1) OJ C 116, 16.4.1998, p. 13.
(2) OJ C 51, 22.2.1999, p. 16.