STRICTER RULES ON THE RANKING OF PRIORITIES IN THE LIGHT , IN PARTICULAR , OF THE REQUIREMENTS OF INDUSTRIAL RENOVATION , THE PROMOTION OF RESEARCH AND THE SUPPORT OF EMPLOYMENT . FURTHERMORE , SOCIAL BENEFITS MUST NOT BE ALLOWED TO OUTSTRIP THE PROGRAMMED PRICE INCREASES AND THE RATE OF EXPANSION OF REAL EXPENDITURE ON THE HEALTH SERVICE WILL HAVE TO BE REDUCED ONCE MORE .
IF THE NECESSARY RIGOUR IS APPLIED TO WAGES AND BUDGETS , MONETARY POLICY SHOULD BE ABLE TO MAKE AN ACTIVE CONTRIBUTION TO DISINFLATION BY FURTHER REDUCING THE RATE OF DOMESTIC CREDIT EXPANSION AND THE LIQUIDITY RATIO OF THE ECONOMY , WITHOUT EXERCISING TOO RESTRICTIVE AN EFFECT ON THE EXTERNAL FINANCING OF ENTERPRISES . THIS MONETARY POLICY STANCE WILL , HOWEVER , MEAN THAT ANY REDUCTION IN INTEREST RATES SHOULD BE APPROACHED WITH GREAT CAUTION , AND ACCURATELY TUNED TO THE REQUIREMENTS OF BOTH DOMESTIC AND EXTERNAL EQUILIBRIUM .
FINALLY , ACTION ON THE ABOVE LINES SHOULD ENSURE THAT CONTROL OVER THE DOMESTIC FACTORS OF INFLATION IS STRONG ENOUGH TO ALLOW SOME RELAXATION OF PRICE CONTROLS AND COMPLETE FREEDOM FOR INDUSTRIAL PRICES TO BE RESTORED .
BUT THERE ARE OTHER REASONS FOR A CONTINUED ACTION OF STRICT POLICIES , BEYOND THE REQUIREMENTS OF RESTORING EXTERNAL BALANCE AND SUBSEQUENTLY REDUCING THE EXTERNAL DEBT . IT IS ESSENTIAL TO ENSURE THAT THE ECONOMY MAKES UP AS RAPIDLY AS POSSIBLE THE GROUND IT HAS LOST BY DELAYING ADJUSTMENT TO RAPID CHANGE IN ITS GROWTH FACTORS , AND TO ARREST AND SUBSEQUENTLY REVERSE THE DECLINING TENDENCY OF EMPLOYMENT , LARGELY DUE TO THIS LACK OF ADJUSTMENT . NET JOB CREATION CANNOT RETURN TO POSITIVE FIGURES WITHOUT FASTER REGENERATION OF PRODUCTION STRUCTURES INVOLVING BOTH REDEPLOYMENT TOWARDS NEW FORWARD-LOOKING ACTIVITIES , AND THE INDISPENSABLE TECHNOLOGICAL RENEWAL TO ENSURE THE SURVIVAL OF TRADITIONAL SECTORS . AS THE RESTRICTIVE POLICIES TEND BY ALL POSSIBLE MEANS TO RELEASE THE RESOURCES REQUIRED FOR THE MAJOR INVESTMENT TO ENSURE SUCH REGENERATION , IT IS AN INDISPENSABLE STEP TOWARDS ESTABLISHING THE STRUCTURAL CONDITIONS FOR A RETURN TO LASTING GROWTH AT A MORE SUSTAINED RATE , LEADING TO NET JOB CREATION .
THE OUTLOOK FOR EMPLOYMENT WILL HARDLY BEGIN TO IMPROVE , HOWEVER , UNTIL 1986 . THE DECLINING TENDENCY OF EMPLOYMENT THAT HAS BEEN OBSERVED SINCE THE EARLY 1980S WILL PROBABLY CONTINUE IN 1985 , BECAUSE THE INEVITABLE RESTRUCTURING OF CERTAIN INDUSTRIAL SECTORS IS STILL LEADING TO LABOUR-SHEDDING ON A LARGE SCALE . THE PRESENT STAGE IS CHARACTERIZED BY THE PREDOMINANCE OF EFFORTS TO STREAMLINE PRODUCTION PROCESSES RATHER THAN TO CREATE NEW CAPACITY . THIS TREND IS ESPECIALLY PRONOUNCED IN LARGE INDUSTRIAL UNDERTAKINGS , WHICH ARE LEADING THE INVESTMENT RECOVERY NOW UNDER WAY , SINCE THE PRESSURES OF INTERNATIONAL COMPETITION ARE FORCING THEM TO UNDERTAKE RADICAL ADJUSTMENT . INVESTMENT SUPPORT POLICY WILL HAVE TO ENSURE THAT THIS RECOVERY SPREADS RAPIDLY TO SMALLER FIRMS , WHICH PROBABLY HAVE A MUCH GREATER POTENTIAL FOR JOB CREATION .
UNEMPLOYMENT , THEREFORE , WILL NO DOUBT CONTINUE TO INCREASE FOR SOME TIME