CELEX: 51995PC0087
Language: en
Date: 1995-03-22
Title: Proposal for a Council Decision on implementation of a Community action programme to strengthen the competitiveness of European industry

COMMISSION OF THE EUROPEAN COMMUNITIES
     mm
                                                 Brussels, 22.03.1995
                                                 COM(95)87 final
WW                       COMMUNICATION FROM THE COMMISSION
                       TO THE COUNCIL, THE EUROPEAN PARLIAMENT,
                          THE ECONOMIC AND SOCIAL COMMITTEE
      IS'                  AND THE COMMITTEE OF THE REGIONS
                   ACTION PROGRAMME AND TIMETABLE
                   FOR IMPLEMENTATION OF THE ACTION
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                 AN INDUSTRIAL COMPETITIVENESS POLICY
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 ---pagebreak---                       EUROPEAN COMMISSION
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         ACTION PROGRAMME AND TIMETABLE
         FOR IMPLEMENTATION OF THE ACTION
    ANNOUNCED IN THE COMMUNICATION ON
  AN INDUSTRIAL COMPETITIVENESS POLICY
                     FOR THE EUROPEAN UNION
    COMMUNICATION TO THE COUNCIL, PARLIAMENT, THE ECONOMIC AND
            SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS
Annexes: 1.       Proposal for a Council Decision on implementation of a Community ac-
                  tion programme to strengthen the competitiveness of European industry
              2. Action programme and timetable for an industrial competitiveness policy
                  for the European Union
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                                                                                         ./I*
 ---pagebreak---    a In its resolution of 8 November 1994 on the strengthening of the competitiveness
     of Community industry the Council called on the Commission "to submit to it... a
     schedule for the drafting of appropriate proposals formalising the initiatives an-
     nounced by the Commission in its communication on "An industrial competitive-
     ness policyfor the European Union" in the areas of intangible investments, indus-
     trial co-operation, competition and modernisation of the role of public au-
     thorities. "
   D In response to this request, the Commission hereby submits:
     — its priorities for action to implement its industrial competitiveness policy;
     — a draft proposal for a Council Decision on implementation of a Community
         action programme to strengthen the competitiveness of European industry;
     — an action programme and timetable for an industrial competitiveness policy
         for the European Union.
1.   PRIORITIES FOR ACTION
   D The Treaty on European Union calls on the Community and the Member States,
     acting in line with the subsidiarity principle, to ensure that the conditions neces-
     sary for the competitiveness of the Community's industry exist.
   • To this end, the Commission submitted the communication on "An industrial
     competitiveness policy for           the European Union" (COM(94)319,
     14 September 1994).
     This communication was based on the basic principles of an industrial policy for
     the Community defined in the 1990 Commission communication on "Industrial
     policy in an open and competitive environment", the conclusions of which were
     fully approved by the Council.
     It must be remembered that:
     — although it is up to businesses to make sure that they are competitive on the
         market, it is up to the public authorities to create an environment propitious
         for strengthening industrial competitiveness;
     — as provided for by Article 130 of the Treaty on European Union, the Union
         and the Member States share responsibility for implementation of an industrial
         competitiveness policy in which industry too must be closely involved.
 ---pagebreak---   It should also be remembered that there is an increasingly direct correlation be-
  tween economic and social cohesion and industrial and economic performance
  which must be taken account of. It must be ensured that industrial competitive-
  ness and economic and social cohesion each add strength to each other. Greater
  economic and social cohesion can generate externalities which make the private
  sector more efficient by improving infrastructure and optimising the general level
  of investment. Future competitiveness must rely less upon economies of scale and
  large series and more upon the capacity to assimilate information and to ensure its
  appropriate dissemination, thereby offering the possibility of decentralised in-
  dustrial growth.
  The Commission considers four objectives particularly important in industrial
  competitiveness policy:
  — development ofthe internal market;
  — better taking industry's needs into account in research policy;
  — establishment ofthe information society;
  — promotion of industrial co-operation.
— Development of the internal market
  The internal market completed in 1993 is the Union's greatest contribution to
  strengthening the competitiveness of European industry. The top priorities now
  for the Union are, on the one side, to solve problems still existing in some specific
  areas, and on the other side, to ensure that the single market operates effectively
  so that business and consumers can reap its full benefit. This means completing
  the legislative framework, ensuring its practical application and improving the
  business environment. Single market liberalisation must also be extended to those
  sectors where it has so far had little impact. Likewise company law is one domain
  where the progress remains insufficient.
  Within this framework, the rapid completion of the internal energy market
  constitutes an essential factor, because, in particular, of the importance of energy
  for the competitiveness of European industry. In the field of energy however the
  internal market is not yet completed. The inclusion of energy in the internal
  market by the way of more open and competitive behaviours is at the centre ofthe
  Commission action in the gas and electricity sectors (cf. Commission
  communication on the completion of the internal electricity market
  (COM(95)80)). This objective has been reaffirmed many times by the Council and
  the European Parliament.
 ---pagebreak---   The Union and the Member States play an essential role in this process, given
  their responsibility for the regulatory environment, where the right balance must
  be struck between Community and national legislation and to ensure its effective
  and balanced implementation.
  To bring the internal market into operation, the Commission has adopted an ap-
  proach - known as "new approach" - which goes no further than to impose com-
  pliance with requirements in the public interest, for example to protect health or
  consumer safety, but leaves it to industry to choose the technical means of
  achieving this, in particular by the way of standardisation. It is this choice of
  means which enables industry to demonstrate its competitiveness. If this approach
  is to be fully effective, the Member States must refrain from filling the room for
  manoeuvre left to industry with national regulations. According to this approach,
  at Community level, the harmonisation of national legislation is to be continued,
  where necessary, as well as the application of the mutual recognition principle.
  This will prevent groundless conflicts concerning differences in legislation
  between Member States. Furthermore, the Commission will continue to exercise
  its monitoring powers to the benefit ofthe Union, its industry and its citizens.
— Better taking industry rs needs into account in research policy
  Innovation plays a decisive role in improving awareness of market trends and,
  hence, industrial competitiveness. If research results are to be used for the benefit
  of industrial competitiveness, dissemination, transfer and uptake ofthe results by
  industry must be improved.
  The Union, the Member States and industry too must help to step up research and
  training to technologies efforts in order to put businesses in a better position to
  keep ahead of technological changes and the markets and to apply the appropriate
  strategies.
  To achieve this, the Commission plans a series of joint projects in the interest of
  industry designed not only to bring research closer to industry's concerns, particu-
  larly on high growth labour intensive markets, but also to strengthen the synergies
  and co-ordination with the efforts made by the Member States, the Union and in-
  dustry itself. At the same time they will make the Community's technological
  achievements more visible to the general public.
  The Commission is also preparing a communication on closer co-ordination be-
  tween research and industry and a green paper on promotion of innovation poli-
  cies in the European Union. It prepares also according to the terms of Article
  130P ofthe Treaty an annual report on the execution of Community's research ac-
  tivities.
 ---pagebreak--- — Establishment ofthe information society
  The establishment ofthe information society will have a decisive effect on all in-
  dustrial activity in the Union. Its rapid emergence makes European industry's ca-
  pacity to extend and manage knowledge more important than ever.
  The conditions for access to information, to the networks carrying it and to servi-
  ces making it easier to use are playing a growing role in industrial competitive-
  ness. The availability, quality and, above all, lowering of the cost of telecommu-
  nications infrastructure and services are now key factors in the European Union's
  industrial competitiveness. This is why it is necessary to accelerate the present
  process of liberalisation of the telecommunications sector by the way of opening
  to competition the infrastructures and services which are still in a monopoly
  situation.
  In this context it is important to mention the role of workers' skills. Therefore it is
  necessary to accompany the development of the information society with that of
  the education and training society.
  The emergence of the information society is creating new markets generating
  large numbers of jobs. Industry in the European Union, particularly the telecom-
  munications industry, has proved its capacity to design and manufacture the tools
  for the information society of the future. Increasingly, development of the con-
  tents and ofthe services for stimulating the demand and use of information is be-
  coming the crucial question.
  The Commission has made proposals already in the communication entitled
  "Europe's way to the information society - an action plan", the follow-up to the
  May 1994 report on "Europe and the global information society" by the high level
  working party chaired by Mr Bangemann.
  The measures set out in the action plan cover the regulatory and legal aspects of
   communications in Europe, including measures to provide trans-European net-
   works, contents, services and applications, protection of privacy and personal
   data, and a series of works on social and cultural issues.
   To capitalise fully on the opportunities opened up by the information society and
   avoid some of therisks,the Commission has taken a series of measures. Two fo-
   rums have been established - one on the information society to address the chal-
   lenges posed by the arrival of the information society, the other consisting of a
   High Level Group of Experts to examine the social and societal impact.
   The High Level Expert Group will be mandated to prepare a report or reports on
   the social and societal aspects ofthe Information Society, particularly with refer-
   ence to six priority themes mentioned in the Commission's report for the Essen
                                                                                      5-
 ---pagebreak---   European Council "The Information Society in Europe: A first Assessment since
  Corfu".
  In February 1995 the Commission hosted a major event in Brussels in the form of
  the G7 Ministerial Conference on key issues raised by the information society: the
  regulatory framework including rules for protection of privacy and personal data,
  competition policy, the development of information networks and the social, so-
  cietal and cultural aspects ofthe information society.
  The willingness to associate developing countries to the establishment of the in-
  formation society and to allow them to benefit fully from it has been declared at
  the G7 Ministerial Conference. In order to fulfil this commitment and as a re-
  sponse to the proposal of South-African Vice-President Mbeki, the Commission
  intends to contribute to the organisation of a conference on the information soci-
  ety with the developing world.
  The Commission is also drafting a document on the method which it intends to
  adopt to co-ordinate the action to develop new services and new applications, par-
  ticularly in the context of the 4th framework programme for R&D activities
  (1994-1998) and ofthe trans-European network programme.
— Promotion of industrial co-operation
  The completion of the internal market is being accompanied by closer industrial
  co-operation within the European Union, for which the public authorities must
  create the right climate, in conformity with competition rules.
  The Union must therefore endeavour to remove the obstacles to industrial co-op-
  eration while developing tools for industrial co-operation. This is a sine qua non
  if industry is to reap the full benefit ofthe internal market.
  At the same time the LEONARDO programme helps to develop co-operation
  between businesses and other interested sectors in the area of professional train-
  ing.
  Development of industrial co-operation with the rest of the world is one plank of
  the Union's strategy to strengthen European industry's presence on expanding
  markets and to make it easier for certain non-Union countries to convert to a mar-
  ket economy.
  To help European businesses improve their position on the markets of the future,
  the Commission will, in particular, establish a data base on the obstacles to proper
  operation ofthe markets.
 ---pagebreak---      To promote such co-operation, every possible industrial, economic, commercial
     and investment link and transfers of know-how to third countries must be
     strengthened to help integrate these countries fully in the world economy. The re-
     cently adopted Commission communication on industrial co-operation with
     Eastern Europe addresses these issues with particular reference to these countries.
     An industrial competitiveness policy in the European Union has application, as
     appropriate, across all sectors and all sizes of business. However, recognising the
     important role that SMEs are likely to play in economic growth and the creation
     of jobs within the European Union, the Commission announced proposals for an
     Integrated Programme in favour of SMEs and the Craft Sector (COM(94) 207).
     This programme seeks to take account of the special needs of SMEs and to put
     into concrete form the objectives outlined in the Commission's December 1993
     White Paper. The Integrated Programme proposes measures to promote Concerted
     Actions between Member States to create a better enterprise environment, to im-
     prove support measures for SMEs and to encourage greater use of the services
     offered to enterprises which exist at national or regional level.
     This programme received the Council's firm support under the terms of a Resolu-
     tion of 10th October 1994. The implementation of operational initiatives and
     measures within the Integrated Programme in Favour of SMEs are already being
     carried out in co-operation with Member States.
2.   DRAFT PROPOSAL FOR A COUNCIL DECISION ON IMPLE-
     MENTATION OF A COMMUNITY ACTION PROGRAMME TO
      STRENGTHEN THE COMPETITIVENESS OF EUROPEAN INDUSTRY
   .  (ANNEXE I)
      The draft proposal for a Council Decision on implementation of a Community
      action programme to strengthen the competitiveness of European industry covers
      the action corresponding to the priorities highlighted in the Council resolution and
      requiring a formal decision by the Council to clarify and ensure implementation
      by the Commission.
      The action programme and the draft proposal relate to measures which can be
     taken on the basis of existing resources. If these resources were to appear insuffi-
      cient, the Commission would present a further draft proposal.
 ---pagebreak--- 3. ACTION PROGRAMME AND TIMETABLE FOR AN INDUSTRIAL
   COMPETITIVENESS POLICY FOR THE EUROPEAN UNION
   (ANNEXE 2)
   The Commission communication on "An industrial competitiveness policy for the
   European Union" identified the Commission's priorities for action and stressed
   that the Commission was willing immediately to take the measures for which it
   was directly responsible.
   The action programme for a competitiveness policy for the European Union inclu-
   des action to update the existing Community policies, moves to start initiatives re-
   quiring no new formal decisions.
   This is the case, in particular, with most of the follow-up measures mentioned in
   the report from the Commission on implementation ofthe Council resolutions and
   conclusions on industrial policy.
 ---pagebreak---                                                                                  ANNEX 1
                                           Draft
                             Proposal for a Council Decision
                  on implementation of a Community action programme
                 to strengthen the competitiveness of European industry
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Union, and in particular Arti-
cle 130 §3 thereof,
Having regard to the proposal from the Commission,1
Having regard to the opinion from the European Parliament,2
Having regard to the opinion ofthe Economic and Social Committee,3
Having regard to the opinion ofthe Committee ofthe Regions ,4
1. Whereas the heads of state or government meeting in the European Council on 10 and
     11 December 1993 in Brussels endorsed the White Paper on competitiveness, growth
    and employment5 as the terms of reference for action by the European Union and its
    Member States, supporting an approach to industrial development based on global
    competitiveness, a factor generating growth and employment;
2. Whereas on 22 April 1994 the Council adopted conclusions on improving the com-
    petitiveness of European industry, based on the White Paper on competitiveness*
    growth and employment;
3. Whereas on 8 November 1994 the Council adopted the Resolution on the strengthen-
     ing ofthe competitiveness of Community industry,6 which stressed, in particular, that
    a competitive and innovatory industry in the Community is a prerequisite for lasting
     economic growth and the creation of new jobs; whereas the framework conditions for
    competitiveness and competition must be improved so that the European Union re-
    mains an attractive location for business leading to the creation of new firms and new
    jobs;
1
         OJNo         ,p.
2
         OJNo        P-
3
         OJNo          p.
4
         OJNo........ p.
6        COM(93)700final, 5 December 1993.
         OJNo C 343, 6.12.1994, p. 1
                                                                                     -A/1-
 ---pagebreak---                                                                                      ANNEXE I
4. Whereas on~. the European Parliament adopted a Resolution on...;
5. Whereas the rapid completion ofthe internal energy market constitutes a fundamental
    element for a competitive European industry;
6. Whereas industrial production and services increasingly complement each other;
    whereas, consequently, a competitive industrial sector is indispensable in order fully
    to exploit the possibilities ofjob creation in the service sector, and vice versa;
7. Whereas economic and social cohesion and the competitiveness of European industry
    are linked in that a competitive European industry can contribute to cohesion and co-
    hesion can provide industry with the benefits of a wider commercial and geographic
    base;
8. Whereas, notwithstanding the important role of public authorities, the maintenance
    and improvement of industrial competitiveness is primarily the task of business;
9. Whereas accelerated technical progress, increasing globalization of markets, intensify
    cation of international competition and the increasing importance of environmental
    protection require greater efforts from all those with responsibility in the economic,
    political and social field in order to facilitate the necessary structural adjustments, in-
    ter alia to ensure a sustainable development, and to create new jobs;
10. Whereas it is necessary to avoid distortions of competition and to promote the open-
    ing up of markets both within and outside the Community;
11. Whereas it is particularly urgent that the Community and the Member States, within
    theframeworkof their respective powers, adopt practical measures to strengthen the
    competitiveness of industry, taking account ofthe new challenges which it faces;
                                                                                         A/2-
                                                                                                AO
 ---pagebreak---                                                                                 ANNEX 1
HAS ADOPTED THIS DECISION:
                                          Article 1
The action programme set out in the annexe is hereby adopted to strengthen the competi-
tiveness of European industry which is a prerequisite for lasting economic growth and the
creation of new jobs and contributes to economic and social cohesion, with the following
objectives:
A.      to eliminate unnecessary legal and administrative constraints for enterprises, par-
        ticularly small and medium-sized enterprises;
B.      to ensure fair competition;
C.      to strengthen industrial co-operation;
D.      to promote intangible competitiveness factors.
                                          Article 2
The Commission shall send the Council, the European Parliament, the Economic and So-
cial Committee and the Committee ofthe Regions a report evaluating the results obtained
together with, where necessary, appropriate proposals.
                                                             Done at Brussels,
                                                                                      A/3-
 ---pagebreak---                                                                                 ANNEX 1
                                                                                   Annex
                      ACTION PROGRAMME TO STRENGTHEN THE
             INDUSTRIAL COMPETITIVENESS OF THE EUROPEAN UNION
D annual report - inter alia, on the basis ofthe information obtained for the panorama of
  European industry - on the development ofthe competitiveness of European industry
D examination of the issue of relocation of industry and services and report on the re-
  sults to the Directors General of Industry
D establishment, in collaboration with industry and with national administrations, of a
  database on the obstacles faced by European companies in third countries, market by
  market
• implementation of the initiatives announced in the communication on "An industrial
  competitiveness policy for the European Union" in the areas of:
  — intangible investments,
  — industrial co-operation,
  — competition
  — modernisation ofthe role of public authorities
                                                                                     A/4-
                                                                                          .Ât
 ---pagebreak---          ir^it        EUROPEAN COMMISSION
      it       it
      it       it
                                          ANNEX 2
         ACTION PROGRAMME AND TIMETABLE
      FOR AN INDUSTRIAL COMPETITIVENESS
             POLICY FOR THE EUROPEAN UNION
Rue de la Loi, 200 B-1049 Brussels, Belgium
9 direct line 32-2-295.80.57 exchange 32-2-299.11.11 . Q± 32-2-296.30.28
Telex COMEU B.21877 - Telegraphic Address COMEUR Brussels
                                                                         /?S
 ---pagebreak---                                                                              ANNEX2
D The tables set out below show the Commission's action programme for implemen-
  tation ofthe action announced in the September 1994 communication on an in-
  dustrial competitiveness policy for the European Union.
  They show the objectives, the action planned and an approximate timetable for ea-
  ch ofthe four priorities set in the Commission communication.
  hi most cases, studies and analyses will be required before a start can be made
  with the action to attain the above-mentioned objectives.
D As regards the nature of the action to be taken, the action programme contains
  measures of various types:
  — action already under way or which can be started in the near future and which
       could make an immediate contribution to the industrial competitiveness ofthe
       European Union, particularly:
       •   organisation of round tables, seminars, forums and workshops on general
          and specific sectoral issues;
       •   contributions from the common policies to help to improve industrial
          competitiveness, particularly from the cohesion, training, research, inno-
          vation, trade, competition and co-operation with third countries policies;
       •  the establishment of pilot programmes on industrial co-operation;
      •   the establishment of a database on the obstacles to proper operation of the
          markets and of an industrial assessment mechanism;
      •    establishment of a Competitiveness Advisory Group.
  — action requiring more detailed political guidelines so that a start can be made
      in due course, particularly:
      •   draft communications on the promotion of intangible investment, on the
          promotion of quality, on industrial co-operation with Eastern Europe and
          on direct foreign investment;
      •   draft white papers and green papers on the legal instruments for industrial
          co-operation, on energy policy and on promotion of innovation.
  — action requiring the adoption of proposals for legislation before it can take ef-
      fect, particularly proposals for Directives, Regulations and Recommendations
      designed:
                                                                                -B/2
 ---pagebreak---                                                                                  ANNEX2
        •   to promote research, the internal energy market, European investment
            overseas and electronic trading;
        •   to remove the legal and fiscal obstacles to industrial co-operation;
        •   to modernise the role played by the public authorities in industry.
a  This action programme must take account of the subsidiarity principle. Conse-
   quently, a distinction must be drawn between the action to be taken directly by the
   Commission, the measures requiring close co-ordination and collaboration with
   the national authorities and the steps to be taken jointly by the Commission and
   the national authorities in close co-operation with industry. Such an approach will
   allow more effective action to improve industrial competitiveness and make fuller
   use of the expertise of the national authorities and of industry to supplement the
   Commission's limited human and budgetary resources.
   Naturally, industry will be directly involved in practical action such as round ta-
   bles, tHe pilot programmes on industrial co-operation, the database on the obsta-
   cles to proper operation ofthe markets and the industrial assessment mechanism.
   The Member States could be involved in the action programme, not only via the
   meetings of the senior officials on industry but also in new forms of meetings be-
   tween the national and Community administrations, such as workshops.
   The dialogue with the Member States would focus on co-ordination and definition
   of research policies, commercial policy instruments, the establishment of a data-
   base on opportunities for industrial co-operation and definition ofthe specific pro-
   grammes on objective 4.
•  The Commission also intends to take account of the approach in this action pro-
   gramme when drafting its communications concerning specific sectors of indus-
   try.
   It has done so already in its communication on strengthening the competitiveness
   of the machinery construction industry.
a  Certain measures will take priority, particularly:
   — the establishment of Task Forces to start joint projects in the interest of indus-
        try and for action on human resources;
  • —' the establishment of a database on the obstacles to proper operation of the
        markets and of an industrial assessment mechanism;
   — the examination of the effects ofthe Community and national legislation on
        competitiveness and employment by the MOLITOR Working Party of inde-
                                                                                    B/3-
 ---pagebreak---                                                                          ANNEX 2
  pendent experts on the. simplification of legislation and administrative proce-
  dures;
— the establishment of an Advisory Group on Competitiveness.
                                                                           -B/4-
 ---pagebreak---                                                                                  ANNEX 2
       Action programme for an industrial competitiveness policy for the European Union
                OBJECTIVES                             ACTION                       TIME-
                                                                                    TABLE
1. TO PROMOTE INTANGIBLE INVESTMENT
a.   promotion of intangible in-    draft communication on the promotion of        1996
     vestment (vocational train-    intangible investment
     ing, organisation of work,
                                    action on human resources                      1995
     new technologies and quali-
     ty) in the general support for further support from the Structural Funds      1994/99
     investment; examination of     to improve the business environment and
     ways of taking fuller account  business co-operation and to support in-
     of intangible assets, particu- tangible investment by businesses
     larly in the context of taxa-
     tion
b.   stepping-up of research:
                                                                                     -B/5
                                                                                           /??
 ---pagebreak---                                                                              ANNEX 2
  Action programme for an industrial competitiveness policy for the European Union
          OBJECTIVES                               ACTION                       TIME-
                                                                                TABLE
- by proceeding with further   establishment of task forces to start joint     1995
action to take fuller account  projects in the interest of industry (car of
ofthe needs ofthe market in    tomorrow, education software and multi-
R&TD policy                    media, new generation aircraft, vaccines
                               for viral diseases, future train)
                               meetings ofthe Directors General for in-        1995
                               dustry and research to improve the chan-
                               nels for co-ordination with and between
                               the Member States and industry for
                               definition ofthe eligibility criteria, selec-
                               tion and development of projects
                               involvement of industrialists in the mid-       1996
                               term review ofthe fourth framework pro-
                               gramme of RTD activities, in particular
                               regarding the decision on the remaining
                               700 MECU, and in preparation ofthe fifth
                               framework programme
                               draft communication on closer co-ordina-        1995
                               tion between research and industry
                               document on the methodology to adopt to         1995
                               co-ordinate the action to develop new ser-
                               vices and new applications connected with
                               the information society, particularly in the
                               context ofthe 4th framework R&D pro-
                               gramme and ofthe trans-European net-
                               works programme
- by modernising the appro-    implementation of programmes to apply          1995
aches in order to produce      research results
more effective industrial
                               Green Paper on promotion of innovation
spin-offsfromresearch
                               policies in the European Union
                               promotion of afinancialenvironment fa-
                               vourable to innovation (capital market for
                               growth industries,risk-capital,etc.)
                                                                                -B/6-
                                                                                      /ll
 ---pagebreak---                                                                                  ANNEX 2
     Action programme for an industrial competitiveness policy for the European Union
              OBJECTIVES                              ACTION                         TIME-
                                                                                     TABLE
   - by facilitating the estab-   start of joint projects in the interest of in-   in pro-
   lishment of consortia of       dustry                                           gress
   European companies             draft communication on the stimulation of
                                  applications by means of partnerships: to-
                                  wards a new approach and new methodol-
                                  ogy
c. promotion of quality           draft communication on European quality          1995
                                  promotion policy, including a strategy and
                                  à European programme to promote quality
d. fuller integration of vocatio- implementation of LEONARDO and SME in pro-
   nal training schemes in other  programmes                                       gress
   policies
e. creation of a legal environ-   review ofthe code on aid to research             1995
   ment conducive to research     consideration ofthe need to propose a
                                  Directive to create a legal environment
                                  conducive to research
                                  simplification of type-contract for the re-
                                  search contracts under the 4th framework
                                  programme of RTD activities
f. development of clean tech-     further implementation ofthe fifth action        in pro-
   nologies and economic in-      programme on the environment                     gress
   centives
                                  implementation ofthe environmental sec-
                                  tion ofthe fourth framework RTD pro-
                                  gramme
g- introduction of new ways of    involvement of management and labour in           1995
   organising work and impro-      implementation of objective 4 and ofthe
   vement ofthe fiscal envi-      ADAPT and LEONARDO programmes
   ronment, particularly for
   small firms
i. improvement ofthe dialogue association of social partners in the                in pro-
   between the two sides of in- framework of social dialogue to initiatives        gress
   dustry                          impacting on employment (at inter-pro-
                                   fessional and sectoral levels) and on new
                                   forms of work organisation
                                                                                     -B/7
                                                                                           •11
 ---pagebreak---                                                                                  ANNEX 2
       Action programme for an industrial competitiveness policy for the European Union
                OBJECTIVES                             ACTION                        TIME-
                                                                                     TABLE
j-   rational use of statistics     creation of a database of sectoral indica-     1995
                                    tors on business performance and com-
                                    petitiveness factors in the European Union
                                    study on the use of administrative data for
                                    statistical purposes
2. TO DEVELOP INDUSTRIAL CO-OPERATION
a.   general measures:
 1.  identification and removal of possible drafting of proposals for legisla-     1996
     legal and fiscal obstacles to  tion to remove the principal legal and fis-
     industrial co-operation        cal obstacles to industrial co-operation
2.   development of industrial      Green Paper on the legal instruments for       1995
     co-operation tools             industrial co-operation at Community
                                    level
3.   support for the development    elaboration of projects under the Com-         1994/99
     of trans-national initiatives  munity Initiative programmes ADAPT
     targeted on growth markets     and EMPLOYMENT
     using Structural Funds
4.   recourse to the Working        meetings ofthe senior officials on indus-      1996
     Party ofthe Heads of In-       try with a view to establishment of a data-
     dustrial Policy Departments    base on opportunities for industrial co-
     to facilitate industrial co-   operation
     operation operations and ef-
     forts to find information and
     partners
 5.  development of a coherent      possible drafting of proposals for legisla-    1996
     legal approach towards a       tion to promote European foreign invest-
     communal and efficient pro-    ment, in particular on the basis ofthe
     motion of European foreign     standards for the protection of investments
     investment                     in ACP countries
                                    use of ECIP (European Community In-            in pro-
                                    vestment Partners) programme                   gress
6.   closer technological co-op-    promotion of scientific and technological      in pro-
     eration                        co-operation under the fourth framework        gress
                                    R&D programme
                                    preparation of a conference on the infor-
                                    mation society with the developing world
                                                                                      B/8-
                                                                                           ls>
 ---pagebreak---                                                                                ANNEX 2
     Action programme for an industrial competitiveness policy for the European Union
             OBJECTIVES                              ACTION                       TIME-
                                                                                  TABLE
b. Central and Eastern Eu-       communication on industrial co-operation        1995
   rope and Commonwealth of with Eastern Europe
   Independent States            seminars, forums and round tables on
                                 sectoral issues with the countries of Cen-
                                 tral and Eastern Europe and Russia
                                 implementation - for already associated
                                 countries - of measures ofthe pre-acces-
                                 sion strategy adopted at the European
                                 Summit of Essen (White Paper on the
                                 rules relating to the internal market,
                                 structured dialogue, etc.)
                                 negotiations of association agreements
                                 with the 3 Baltic Republics and Slovenia
   exploring solutions similar   economic analysis of guarantees for inves-      1995
   to partial guarantees for in- tments for the countries of Central and
   vestments                     Eastern Europe with association agree-
                                 ments
   support for investment and    establishment of a Business Advisory            1995
   the private sector             Council (follow-up to Essen)
                                 assistance with development of services to in pro-
                                  support industry (for example, briefing        gress
                                  session on the activities ofthe agencies to
                                  promote investment in the Visegrad
                                  countries for bodies providing support for
                                  industry in the Community)
                                  establishment or reactivation of sectoral
                                  liaison committees with the countries of
                                  Central and Eastern Europe, Russia and
                                  Ukraine
    support for standardisation   PHARE technical assistance programmes          in pro-
    and certification             on standardisation and certification, parti-   gress
                                  cularly to implement the Europe agree-
                                  ments
                                  setting-up of j oint working groups
                                  (Poland, Hungary, Czech Republic)
                                                                                   -B/9
                                                                                         ac
 ---pagebreak---                                                                                ANNEX 2
     Action programme for an industrial competitiveness policy for the European Union
             OBJECTIVES                              ACTION                        TIME-
                                                                                  TABLE
4. expertise in international fi- to be defined
   nancial engineering and off-
   set activities
5. support for harnessing po-     study and seminars, under the European         in pro-
   tential energy resources       Energy Charter, to provide assistance with     gress
                                  drafting energy legislation (PHARE pro-
                                  gramme)
                                  THERMIE programmes to provide sup-
                                  port for promotion and dissemination of
                                  new energy technologies, energy effi-
                                  ciency and energy savings
                                  establishment of energy centres and of
                                  training, promotion and logistical assis-
                                  tance schemes (SYNERGY programme)
                                  training and promotion of energy effi-
                                  ciency programmes (SAVE programme)
                                  training and promotion of renewable en-
                                  ergy (ALTENER programme)
c. Latin American and Medi-       organisation of round tables and liaison       1995
   terranean countries            groups
1. participation in the fourth    to be defined                                  1995/96
   framework programme on
   R&D activities and in the
   developments connected
   with the information society
2. establishment of networks of development of industrial innovation             1995/96
   businesses                     schemes (Sprint network)
d. Asian countries
1. co-operation programmes        organisation of round tables, seminars and     in pro-
                                  workshops on general and sectoral issues       gress
                                  establishment of pilot programmes on in-       in pro-
                                  dustrial co-operation                          gress
2. scientific and technological   organisation of seminars and establish-        since
   co-operation schemes           ment of specific programmes                    end of
                                                                                 1994
                                                                                   B/10
                                                                                         c
                                                                                           lX
 ---pagebreak---                                                                                   ANNEX 2
       Action programme for an industrial competitiveness policy for the European Union
                OBJECTIVES                                ACTION                      TIME-
                                                                                      TABLE
3.   training and dissemination of EU-Japan centre for industrial co-operati-       in pro-
     technology                       on                                            gress
                                      programmes for science and technology         in pro-
                                      fellowships in information technology (for gress
                                      example, the KIT (Keep in Touch) pro-
                                      gramme) and the MTFP programme
                                      (Manufacturing Technology Fellowship
                                      Programme))
                                      extension ofthe training programmes to         1995/96
                                      the priority fields for European industry
3. TO ENSURE FAIR COMPETITION
a.   external markets: taking account ofthe European Union's industrial in-
     terests, both as an exporter and as an importer
1.   continuation of efforts to re-   active participation in the work ofthe        in pro-
      solve problems not comple-      WTO                                           gress
     tely dealt with by the end of    - work on harmonisation of non-preferen-
      the Uruguay Round               tial rules on origin (conclusion scheduled
                                      in 1998)
                                      - further negotiations on steel, aviation
                                      and services (for example, telecommuni-
                                      cations)
2.    combating fraud efficiently     to be defined
3.    development and effective        application and implementation of bilat-      1995
      application of international     eral association, partnership and co-
      rules on competition             operation agreements
                                       improvement ofthe existing bilateral co-
                                       operation agreements and development of
                                       new agreements
                                       preparation of multilateral discussions on
                                       international rules of competition
                                       implementation of OECD agreement on
                                       shipbuilding
4.    establishment of an indus-       establishment ofthe industrial assessment     1996
      trial assessment mechanism       mechanism (multi-sectoral and geographi-
                                       cal extension)
                                                                                       B/ll
                                                                                             %\
 ---pagebreak---                                                                               ANNEX 2
    Action programme for an industrial competitiveness policy for the European Union
             OBJECTIVES                             ACTION                       TIME-
                                                                                 TABLE
5. continuing to improve the     action under way
   structure ofthe Common
   Customs Tariff in order to
   better reflect the industrial
   interests of producers and
   users
6. database on the obstacles to  study and establishment of a database on       1995/96
   smooth operation ofthe        the obstacles to proper operation ofthe
   markets                       markets
7. improvement of commercial     preparation ofthe dialogue with the Mem-       1995/96
   policy instruments with the   ber States on the new instruments
   aim of making them more
   efficient and operational
8. consideration of application  to be defined
   of commercial policy and
   defence instruments to serv-
   ices
9. co-ordination between the     communication on "a level playing field        1995
   measures taken to promote     for direct investment world-wide"
   exports and investment and
                                 continued negotiations of mutual recogni-      1995/96
   the other policies
                                 tion agreements
b. internal market:
1. further reduction of State    exploitation of datafromthe 4th report on      1995
   aid, taking account of re-    state aids
   gional imbalances
2. an examination, as soon as    preparation of a proposal to the Council       1995/97
   possible, of possible changes for a Regulation on the simplification of
   to the State aid control      procedures
   mechanism
                                                                                 B/12
                                                                                        n
 ---pagebreak---                                                                                    ANNEX 2
         Action programme for an industrial competitiveness policy for the European Union
                  OBJECTIVES                               ACTION                      TIME-
                                                                                      TABLE
       re-examination ofthe aid        to be defined
       authorisation criteria
       improvement ofthe consis-
.-     tency between the structural
       policies and the policies for
       monitoring State aid
       improvement ofthe consis-
       tency between the rules ap-
       plicable to State aid and the
       arrangements for Commu-
       nity financing under non-
       structural policies
  3.   strengthening ofthe internal    completion ofthe internal energy market       in pro-
       market (in gas, electricity     (gas, electricity) by the way of rapid adop-  gress
       and telecommunications)         tion of proposals for Directives now be-
                                       fore the Council or otherwise by other
                                       means available to the Commission
                                       Green Paper entitled "For a European          1995
                                       Union energy policy"
                                       draft White Paper based on the Green Pa-      1995/96
                                       per
                                       telecommunications markets liberalisa-
                                       tion:                                         1996
                                       - cable-distribution networks                 1996
                                       - mobile networks                             1998
                                       - vocal telephony and other infrastructures
  4. TO MODERNISE THE ROLE OF THE PUBLIC AUTHORITIES
  a.    further deregulation, exami-   possibly, submission of proposals for leg-     1996
        ning, for example, the expe-    islation
        diency of invoking Articles
        101 and 102 ofthe Treaty
  b.    redefinition of public service to be defined
        objectives
                                                                                        B/13-
                                                                                              xs
 ---pagebreak---                                                                                ANNEX 2
     Action programmefor an industrial competitiveness policyfor the European Union
              OBJECTIVES                            ACTION                        TIME-
                                                                                  TABLE
c. using the Structural Funds to definition, with the Member States and in- in pro-
   support industrial change     dustry, of specific programmes on voca-        gress
   and to facilitate the devel-  tional retraining for workers affected or
   opment of clusters of com-    threatened by massive restructuring of un-
   petitive activities           dertakings or industries in crisis (objective
                                 4, SME, ADAPT and LEONARDO)
d. development of partnerships   possibly, submission of proposals               1996
   between big businesses and
   small firms
e. streamlining and effecting    examination ofthe effect ofthe Commu-           1995/96
   greater transparency of pro-  nity and national rules on competitiveness
   cedures (contribution to the  and employment by the MOLITOR wor-
   Working Party set up to       king party of independent experts on the
   simplify administrative pro-  simplification of legislation and adminis-
   cedures and legislation)      trative procedures
f. a) faster establishment of    proposal for a Council recommendation           1995
   trans-European networks for   on extension of IDA to third countries
   the interchange of data be-
   tween administrations
   b) establishing and stepping  proposal for a Council Decision on a            1995
   up electronic data inter-     multi-annual programme to support the
   change between industry and   use of electronic information interchange
   the administration            between industry and administrations
                                 (I3A)
g- using the Community ins-      possibly, submission of proposals               1996
   truments to support co-op-
   eration projects of Commu-
   nity interest
h. examination of ways of im-    establishment of a Competitiveness Advi-        1995
   proving decision-making       sory Group
   structures
                                 proposal for new types of meetings
                                 (workshops) between the national and
                                 Community administrations
i. reduction of costs arising    evaluation of economic costs and benefits      in pro-
   from regulations              of new legislative proposals                   gress
                                                                                  B/14
                                                                                         1C
 ---pagebreak---                    Communication from the Commission
 Action programme and timetable for implementation of the actions
                    announced in the communication on
    "An industrial competitiveness policy for the European Union"
                             FINANCIAL STATEMENT
1.    TITLE OF OPERATION
      Industrial competitiveness policy for the European Union
2.    BUDGET HEADING INVOLVED
      Cf. item 7.2
3.    LEGAL BASIS
      Treaty on the European Union, and in particular Articles 3 and 130 §3 and Ti-
      tles XIII (Industry), XV (Research and technological development, Articles 130f
      etseq.% VIII (social policy and industrial change, Article 123), XIV (social and
      economic cohesion, Articles 130 A andB) and XII (Trans-European
      networks) thereof.
4.    DESCRIPTION OF OPERATION
4.1   Specific objectives
D     To strengthen the competitiveness of European industry by means of general
      measures under a series of common policies (on research, cohesion, vocational
      training, networks, foreign trade and competition).
D     To develop the internal market, to take fuller account of industry's needs in re-
      search policy, to establish the information society and to promote industrial co-
      operation.
4.2   Duration
      Ad hoc measure.
                                                                                        -n
 ---pagebreak--- 43  Target population
    Member States, regional and local authorities, two sides of industry, businesses,
    etc.
5.  CLASSIFICATION OF EXPENDITURE OR REVENUE
5.1 Non-compulsory expenditure
5.2 Differentiated appropriations
53  Type of revenue involved
    Not applicable.
6.  TYPE OF EXPENDITURE OR REVENUE
    The form of support depends on the specific procedures for each ofthe measures
    referred to in point 7.2.
7.  FINANCIAL IMPACT
7.1 Method of calculating total cost of operation
    The calculation of the cost to the budget of the action provided for in this com-
    munication is set out in the Table in point 7.2.
7.2 Itemized breakdown of cost
    This communication will have no further impact on the budget
    The headings listed below are mentioned for information as they relate to actions
    which:h in varying degrees will help to improve the competitiveness of the
         )oean Union
    European   Union.
                                                                                      it
 ---pagebreak--- Breakdown by main headings                      Budget         Budget 1995 ME-
                                                headings       CU
                                                concerned     E C without RSB
Community Support Frameworks                    B2-130                 6.443,8
Industrial reconversion                          B2-143                  403,0
SME's initiative                                 B2-1432                 175,0
Cohesion fund                                    B2-300                2.151,7
Training and careers advice                      B3-1020                   1,0
Leonardo                                         B3-1021                 137,3
Actions in the field ofthe Internal Market       B5-300                  40,08
Stimulation of companies (SMe)                   B5-320                   29,2
Industry : actions in the field of telecom-      B5-41                    30,5
munications and postal services, standardi-
sation and data exchange
Actions in the industrial field, including the   B5-41                     7,2
Panorama
Transeuropean networks
-> in the field of transport                     B5-700                  216,0
-> in the field of energy                        B5-710                   15,0
-> telecommunications infrastructure             B5-720                   20,0
R & D Framework Programme                        B6-711                  906,5
Information and communication technolo-
gies                     .
Promotion of Community exports to third          B7-5022                  12,2
countries, in particular Japan
Programme for the modernisation of textile       B5-420                   80,0
industry in Portugal
pm: Breakdown by action (B5-411)                                   1996 budget
                                                                     (MECU)
Annual report - inter alia, on the basis ofthe information ob-              1.0
tainedfor the panorama of European industry - on the devel-
opment ofthe competitiveness of European industry
                                                                                <>
                                                                                 o 1
 ---pagebreak---      Examination ofthe issue of relocation and report on the results               0.5
    to the senior officials on industrial policy
    Establishment, in collaboration with industry and with na-                     0.5
    tional administrations, of a database on the obstacles faced by
    European companies in third countries, market by market
    Formalization ofthe initiatives announced in the communica-
    tion on "An industrial competitiveness policy for the European
     Union " in the areas of:
    —        intangible investments                                              \2
    —        industrial cooperation                                              \Q
    —       the industrial aspects of competition                                 0.5
    —        modernization ofthe role of public authorities in indus-             o.5
        try
    TOTAL                                                                        5.2
7.3 Operational expenditure on studies, meetings of experts, etc.
    pm: ventilation by action (B5-411 )                                      ECU
     Studies                                                            2 500 000
    Meetings of experts                                                    70 000
    Conferences and congresses                                            120 000
    Information and publications                                          210 000
7.4 Indicative schedule of appropriations
    See the breakdown in the Table in point 7.2.
8.  FRAUD PREVENTION MEASURES
    Before payment the Commission departments concerned check the financial assis-
    tances or that the services and preparatory and feasibility studies or assessments
    ordered have been received, taking account of the contractual obligations and of
    the principles of economy and sound financial management. Anti-fraud measures
    (inspections, reports, etc.) are included in all agreements or contracts concluded
    between the Commission and parties receiving payments.
                                                                                       >
 ---pagebreak--- 9.  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
9.1 Specific objectives
    To strengthen industrial competitiveness, closer coordination will be needed
    across a series of common policies, particularly on research, cohesion, vocational
    training, networks and foreign trade, plus closer consultation between the Member
    States. As identified in the White Paper on growth, competitiveness and employ-
    ment, the priorities for action will be to promote intangible investment, to develop
    industrial cooperation, to ensure fair competition and to modernize the role ofthe
    public authorities.
    In most cases, studies and analyses will be required before a start can be made
    with the action to attain the abovementioned objectives.
    As regards the nature of the action to be taken, this communication contains
    measures of various types:
    -    action already under way or which can be started in the near future and which
        could make an immediate contribution to the industrial competitiveness of the
        European Union, particularly:
         •     organization of round tables, seminars, forums and workshops on gen-
               eral and specific sectoral issues;
         •     contributions from the common policies to help to improve industrial
               competitiveness, particularly from the cohesion, training, research, inno-
               vation, trade, competition and co-operation with third countries policies;
         •     the establishment of pilot programmes on industrial cooperation;
         •     the establishment of a database on the obstacles to proper operation of
               the markets and of an industrial assessment mechanism;
         •     establishment of a European competitiveness policy council.
     -   action requiring more detailed political guidelines so that a start can be made
         in due course, particularly:
         •     draft communications on the promotion of intangible investment, on the
               promotion of quality, on industrial cooperation with Eastern Europe and
               on direct foreign investment;
         •     draft white papers and green papers on the legal instruments for indus-
               trialcooperation and on energy policy.
                                                                                          ^ A
 ---pagebreak---     -    action requiring the adoption of proposals for legislation before it can take ef-
         fect, particularly proposals for Directives, Regulations and Recommendations
        designed:
         •     to promote research, the internal energy market, European investment
               overseas and electronic trading;
         •     to remove the legal and fiscal obstacles to industrial cooperation;
         •     to modernize the role played by the public authorities in industry.
9.2 Grounds for the operation
    The appropriations requested will be used to implement an industrial competitive-
    ness policy for the European Union. There is no real alternative means of attain-
    ing the same results.
    European industry is making an unprecedented effort to restructure and innovate
    in order to boost its competitiveness on the world market. In particular, these ef-
    forts must equip it to face the changing international context (geopolitical up-
    heaval and conclusion of the Uruguay Round) and the mounting international
    competition, often from countries with less stringent social, regulatory or fiscal
    constraints, the economic recession, the rapid development of combinations of
    technological innovations (information technology, biotechnology, new materials,
    etc.) which have led to intangible investment (in research, patents, training, soft-
    ware, etc.) growing faster than capital investment and the inadequacy ofthe major
    European networks for reaping maximum benefit from the revolution in progress
    in telecommunications and information technology.
    Moreover, in its resolution of 8 November 1994 on the strengthening ofthe com-
    petitiveness of Community industry the Council called on the Commission "to
    submit to it... a schedule for the drafting of appropriate proposals formalizing
    the initiatives announced by the Commission in its communication on "An indus-
    trial competitiveness policy for the European Union" in the areas of intangible
    investments, industrial cooperation, competition and modernization ofthe role of
    public authorities".
    As regards subsidiarity, the European Union must implement an industrial ap-
    proach drawing maximum benefit from the GATT Agreement and allowing rapid
    progress on the issues raised by the globalization of markets. In this context, a
    Community approach is necessary, without doubt.
    D Cost:
        See the Table in point 7.2.
                                                                                              •4f
                                                                                           32
 ---pagebreak---     a Spin-off effects
9.3 Evaluation
    Regular evaluations are planned in accordance with the specific procedures for
    each of the measures referred to in point 7.2.
    In addition, as requested by the Council in its resolution of 8 November 1994 on
    the strengthening ofthe competitiveness of Community industry, from 1995 on
    the Commission will submit an annual report on the development ofthe competi-
    tiveness of European industry.                 /
10. ADMINISTRATIVE EXPENDITURE
    The action programme will giveriseto no additional administrative expenditure.
                                                                                     11
 ---pagebreak---                                                                          ISSN 0254-1475
                                                                   COM(95) 87 final
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                                           Catalogue xnmiber : CB-C095-117-EN-C
                                                                   ISBN 92-77-87027-3
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