19.12.83 Official Journal of the European Communities No C 341/33
5.4. In scrutinizing pricing policy as a factor in
business strategy, attention is unfortunately con-
fined to book-publishing and the motor vehicle
industry. An in-depth study is required, with parti-
cular emphasis on the following sectors; insurance,
pharmaceutical products, bank loan facilities avail-
able to businesses (interest rates and selection cri-
teria), energy and building materials.
Economic background to competition policy
6.1. The lowering of the common external tariff
has significantly reduced customs barriers and
opened up the Community to international competi-
tion. Seen from outside the Community, some
national aids could be regarded as tantamount to
dumping, especially as there can be no attempt at
concealment, and information is freely available to
non-member countries.
6.2. Consequently, the Community has to compete
with (a) high technology countries (United States,
Japan) and (b) LDCs producing labour-intensive
manufactures such as textiles and footwear.
6.3. During its first twenty years, the EEC fol-
lowed the path of free trade in industry and 'plan-
ning' in agriculture (the CAP). Recent economic
straits have prompted a shift in approach. If the
Community is to be able to compete on interna-
tional markets, there is call for:
— a common industrial policy or, failing that, a
Community strategy reflecting changes in the
international division of labour,
— greater selectivity so as to channel a major share
of aid into those sectors with greatest export
potential,
— possible implementation, if the interests of the
Community's trade policy so demand, of the
protection arrangements provided for in the
Treaty of Rome, bearing in mind (a) sectors that
are competitive on world markets, (b) new tech-
nolgies and (c) available funding. In particular,
the new instrument finally proposed by the
Commission to protect Europe against the
unfair commercial practices of third countries
should be approved as soon as possible and
should be implemented with firmness and con-
sistency. These unfair practices are frequently
the expression of protectionism and unilateral
restrictions which are in contradiction and viol-
ation of Community and international agree-
ments.
6.4. Further, the practical implementation by
Member States of the recent Council Directive on
technical standards and rules would seem to be a
key factor in preventing distortion of competition
within the Community.
Done at Brussels, 29 September 1983.
The Chairman
of the Economic and Social Committee
Fran
Opinion on the proposal for a Council Decision adopting the first European strategic
programme for research and development in information technologies (Esprit)
The text referred to the Committee has been published in Official Journal of the Euro-
pean Communities No C 321 of 26 November 1983.
A. LEGAL BASIS FOR THE OPINION
On 17 June 1983 the Council referred the abovementioned proposal to the Economic
and Social Committee in accordance with Article 198 of the Treaty establishing the
European Economic Community.
No C 341/34 Official Journal of the European Communities 19. 12. 83
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE
The Economic and Social Committee prepared its opinion on the above matter at its
210th plenary session held in Brussels on 28 and 29 September 1983.
The full text of the opinion is as follows:
THE ECONOMIC AND SOCIAL COMMITTEE,
Having regard to the Treaty establishing the Euro-
pean Economic Community, and in particular
Article 198 thereof,
Having regard to the request made by the Council
of the European Communities on 24 June 1983 for
an opinion on the proposal for a Council Decision
adopting the first European strategic programme for
research and development in information technolo-
gies (Esprit),
Having regard to the decision taken by its Bureau
on 5 July 1983, instructing the Section for Industry,
Commerce, Crafts and Services to draw up an opi-
nion on the matter,
Having regard to the opinion prepared by that Sec-
tion at its meeting on 7 September 1983.
Having regard to the report submitted by the rappor-
teur, Mr Nierhaus,
Having regard to the discussions at its meeting on
29 September 1983 (210th plenary session of 28 and
29 September 1983).
HAS ADOPTED THE FOLLOWING OPINION
with no votes against and one abstention:
1. Introduction
1.1. The Committee welcomes the Commission
proposal for a Community programme for research
and development in information technologies, with
special emphasis on the following five areas:
micro-electronics, computer-aided manufacture,
software technology, advance information process-
ing and office automation.
The Committee would observe that the conclusions
of the European Councils of 21 and 22 March 1983
and 17 and 19 June 1983 on information and com-
munication technologies also point in the same
direction.
1.2. The present opinion also takes account of
COM(82) 287 (Commission communication to the
Council about Esprit) and COM(82) 486 and 737
(Foundations for Esprit: Pilot Phase) (').
2. Objectives
2.1. There has been an exceptional surge in the
development and diffusion of information technolo-
gies throughout the world, particularly in the last
few years. This is a highly dynamic sector, which
means that new research and development findings
are being translated into marketable products more
and more quickly, and these products in turn
become technologically outdated just as fast if they
do not undergo continuous development in the light
of new research findings.
At present, the United States and Japan are the
leaders in this field, followed — at some distance —
by the European Community. However, the latter
will be able to maintain and improve its position
only if exceptional efforts are made at national and
Community level to press ahead with research and
development, and to convert the findings into mar-
ketable products.
The Committee expressly welcomes the Commis-
sion's plan and approves the present programme,
especially as information technologies are crucial to
economic and technological development as a
whole.
It is unanimously of the view that the development
and application of information technologies must
make a considerable contribution towards solving
the economic and employment problems in the
Member States. All industrial sectors are subject to
the impact of information technologies. An example
is the machine tool industry in the Community,
which will only be able to keep its position as the
world's largest producer of machine tools if it
devises a positive strategy enabling it to keep pace
with developments in electronics.
(') Opinion adopted by the ESC in November 1982 (OJ
No C 346, 31. 12. 1982, p. 13).
19. 12. 83 Official Journal of the European Communities No C 341/35
In approving the programme, the Committee is
aware that the development of information technol-
ogy will have far-reaching effects on all areas of
human life. There are considerable opportunities for
economic and socio-cultural progress but also risks
of undesirable political and economic develop-
ments. But the information technology sector will
develop largely independently of the ranking of the
European industry. The possibility of the European
industry playing a greater part in shaping technolog-
ical developments does, however, in the Com-
mittee's view, provide a greater chance of reducing
the risks and — by taking the effects into account at
an early stage — ensuring that the applications of
results are tailored to the particular needs of people
in Europe with their specific cultural backgrounds.
2.2. The Committee views the coordination and
stimulation of research — as proposed in the Esprit
programme — as a suitable first point of departure
for Community promotion schemes, for the follow-
ing reasons:
— it is in this sphere that the Community has the
best prospects of catching up technologically
with the USA and Japan in the longer term,
— in the present circumstances competition within
the Community will not be adversely affected
by such promotion schemes; this will benefit
and encourage cooperation between the firms
concerned,
— as a result, the development of a European stan-
dards system based on the Community's own
technological research and development in this
sphere will be stimulated,
— individual firms and governments are incapable
of raising the funds needed for the entire Esprit
area of research and development; this can only
be done jointly with the Community, particu-
larly as such research (which is not directly market-
related) entails heavy financial risks.
Through the intended close cooperation, transcend-
ing national frontiers, between governments, indus-
try, higher education institutes and other research
establishments, the trade unions and interested
members of the general public, Esprit can help to
attain the political objective of greater inter-
penetration of the Member States' economies.
2.3. The Committee understands that, from the
pilot phase onwards, forms of intra-European coop-
eration in the field of information technology
between national authorities, research and develop-
ment units in industry, institutes of higher education
and scientific institutions will be developed, tested
and ultimately consolidated in order to bring about
a lasting improvement in the technological condi-
tions for Community competitiveness in the world
economy.
The Committee therefore welcomes the Commis-
sion's declaration that Esprit will be not just simply
financial assistance for a research programme but a
carefully and selectively oriented programme with
specific goals to ensure effective, responsible and
transparent implementation.
Although no priorities are fixed within the Esprit
research areas, special importance should be
attached to research into technical alternatives, busi-
ness structure and organizational problems, and
measures to improve skill levels.
3. Implementation
3.1. The ambitious targets which the Commission
has set itself with Esprit require commensurate
financial and manpower resources. The Committee
notes that the 11 500 000 ECU allocated for 1983 for
the pilot phase is merely a beginning. Given (i) the
vast sums which the Americans and Japanese are
pouring into the promotion and development of
information technologies and (ii) the in some cases
considerable aid programmes of Member State
governments and firms, Esprit will require a compara-
ble outlay if it is to achieve the 'critical mass'
required to initite real qualitative technological pro-
gress.
The Committee feels that the 1 500 million ECU
planned for the first phase of five years, 50 % of
which is to be provided by the Community, repre-
sents the lower limit, given the ambitious goals of
Esprit, namely 'the achievement of technological
parity with, if not superiority over, international
competitors within 10 years'. However, if resources
are concentrated on work of a very advanced nature
and a carefully selective approach is taken, as the
Commission proposes, this can provide an apprecia-
ble thrust in the right direction and help instil new
self-confidence in the European information tech-
nology industry.
3.2. The Committee is pleased that encouragement
is to be given to intersting small, individual projects
(Type B), as well as to complex strategic projects in
No C 341/36 Official Journal of the European Communities 19. 12. 83
which above all big industry will be involved
(Type A). Type B projects are particularly suitable
for participation by medium-sized firms, universities
and other research institutions, as well as indivi-
duals.
In this connection, account should be taken of the
desirability of giving medium-sized firms involved
in projects a higher percentage of aid in special
cases.
3.3. The Committee trusts that the Commission
agrees with it that only long-term funding —
extending over at least 10 years — until the objec-
tives of Esprit are attained will bring about the
desired success and enable the financial risks for the
firms and research institutions concerned to be
assessed.
It therefore expressly supports the programme's ini-
tial timescale of five years. It assumes that in due
course the Council will extend the programe for a
further five years, as provided for in Article 6 of the
proposal for a Council decision.
The Committee hopes that the aims of the Esprit
projects will not be jeopardized by the excessively
tight appropriations for research and development
in the EC's annual budgets.
3.4. To secure the programme's ultimate success,
the Committee believes that it is vital for all indivi-
dual Esprit projects to be linked and geared to one
strategic objective. In particular the pilot projects
should be integrated in this process as far as possi-
ble. It should be remembered that such opportuni-
ties for cooperation and coordination between the
EC Member States are a suitable means of compen-
sating for the innovation lead enjoyed by the USA
and Japan. The requisite coordinating bodies, infor-
mation systems and long-term planning machinery
should be set up where they do not already exist.
Above all, an attempt must be made to achieve
coordination with projects sponsored by national
governments and other national research and
development projects, in order to ensure more effec-
tive, concerted deployment of resources. Appro-
priate cooperation between research and develop-
ment in industry and institutes of higher education
and scientific institutions must also be promoted
under the project. This cooperation should embrace
ergonomics and the social sciences.
The Committee therefore supports the planned con-
sultation and coordination machinery, especially the
management and coordination committee and the
planned consultations with industry. The planned
scientific advisory bodies should have specialists in
ergonomics and the social sciences among their
members.
The Committee thinks that the planned project
management is essential, in terms of both structure
and number of staff to ensure that the individual
Esprit projects are coordinated effectively and that
the current state of work is constantly evident.
3.5. The Committee notes that the projects spon-
sored will focus on Community-based forms and
scientific institutions. One possible threat to the
objective of closing the technological gap with the
USA and Japan is that through EC-based branch
establishments of international corporations the
results of research might find their way to competi-
tors outside the EC before the products are ready for
marketing. The firms involved in Esprit projects
should be given priority when it comes to exploiting
the research findings.
3.6. It is appropriate that Esprit should be con-
cerned with several major areas of application of
information technology, such as computer-aided
manufacture, information processing, office auto-
mation, etc. Although one can agree that the main
aim of Esprit must be the development of the Euro-
pean hardware and software industry, the success of
the programme will not be a certainty unless those
firms and institutions which will subsequently apply
the technology are also involved in the programme's
development. The Committee therefore recom-
mends that every effort be made to ensure the direct
participation of appliers of the technology (e.g.
manufacturers of office equipment and fittings) in
the research projects.
4. Special problems
4.1. Information technologies are not merely of
key importance for the economy. They will have
far-reaching social repercussions and a lasting
impact on the living conditions of the individual
and society at large by increasing productivity not
just in industry but in the entire system (application
of information technologies in the health and social
services, in public administration, in education and
training, etc.). Their beneficial and adverse effects
on employment, the labour market as a whole (in
terms of both quality and quantity), and the educa-
19. 12. 83 Official Journal of the European Communities No C 341/37
tion system, are already apparent. Research and
development in this sphere should thus not only be
geared to economic and technological objectives,
but should also take into account the social implica-
tions as regards both objectives and repercussions.
4.2. The Committee assumes that the Commission
intends to ensure that research and development
projects are not viewed and appraised purely in
economic and technological terms. This would
provide an opportunity, in close conjunction with
specific technological developments, to give policy-
makers indications at an early stage concerning
necessary changes in the general social environment
with particular reference to policies on the labour
market and education and training. Otherwise there
would be a danger that the social implications of
highly specialized research and development find-
ings might not be recognized until it was too late,
with conflict as a result.
The Committee expects the Commission to bear this
in mind, especially when forming advisory and con-
sultation bodies.
4.3. The Committee recognizes the danger of train-
ing failing to keep pace as regards both quantity
and, more particularly, quality, with the rapid pro-
gress in advanced technologies. Thus the strategic
programme should, as far as possible, promote the
scientific training of the workforce of the future. In
addition to industrial research, institutes of higher
education and scientific institutions should there-
fore be involved in the projects.
This aspect should form a further criterion for
assessing projects and possibly justifying a higher
percentage of aid.
4.4. Certain technological developments will
almost inevitably lead to changes in the skills
required of the labour force. For instance, develop-
ments in software engineering will affect demand
for programmers in qualitative and quantitative
terms. Office automation will also bring changes in
office work, with even more far-reaching implica-
Done at Brussels, 29 September 1983.
tions. The Committee considers that the strategic
programme should provide for the investigation of
these repercussions, in addition to technological
research and development.
If these repercussions are taken into account at the
start of development work, especially as regards office
systems and computer integrated manufacturing,
(which are areas of greater practical relevance) there
could be less danger of spending a lot of money
developing products that will be unable to establish
themselves on the market for social reasons. The
Committee agrees completely here with the Com-
mission that 'it would not make sense to start inten-
sive research and development on man-machine
interfacing without also studying its impact on the
individual (e.g. education, self-respect of the human
being), on the professional environment (e.g. num-
ber of jobs, quality of work), and on society (e.g.
impacts on the educational system and on the
democratic process).' (COM(83) 258 final, Appen-
dix, page 36, point 27.4.4.)
4.5. The areas of the Esprit programme which are
of greater practical relevance — manufacturing
techniques and office automation — will in parti-
cular have a direct impact on the volume and struc-
ture of imployment. The Committee would therefore
urge that representatives of employers and trade
unions be involved at an early stage in the working-
out of individual projects and the evaluation of the
results, so that not only the technological aspects
but also the effects on the labour force can be inves-
tigated and appraised.
In this way, any social conflict due to the introduc-
tion of new technologies could be alleviated by
timely action by the 'social partners'.
4.6. To sum up, the Committee considers that the
Esprit programme, with its impact on future econo-
mic structure and Community competitiveness, is
among the most important of the EC's research and
development projects. It assumes that a start will be
made upon the main phase at the beginning of 1984
at the latest.
The Chairman
of the Economic and Social Committee
Fran
No C 341/38 Official Journal of the European Communities 19. 12. 83
APPENDIX
to the opinion of the Economic and Social Committee
Rejected amendment
The following amendment, which was based on the Section opinion and tabled in accordance
with the Rules of Procedure, was rejected by the Committee at the plenary session :
Page 12, point 4.5
Add the following to the last paragraph:
'Account should also be taken of the interests of users and suppliers, particularly as regards
computer software.'
Voting
For: 24, against: 35, abstentions: 11.
Opinion on the proposal for a Council Regulation on the formation of rates for the
carriage of goods by road between Member States
The text referred to the Committee has been published in Official Journal of the Euro-
pean Communities No C 265 of 9 October 1982, page 5.
A. LEGAL BASIS FOR THE OPINION
On 5 October 1982 the Council referred the abovementioned proposal to the Econo-
mic and Social Committee in accordance with Article (75) of the Treaty establishing
the European Economic Community.
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE
The Economic and Social Committee prepared its opinion on the above matter at its
210th plenary session held in Brussels on 28 and 29 September 1983.
The full text of the opinion is as follows:
THE ECONOMIC AND SOCIAL COMMITTEE,
Having regard to the Treaty establishing the Euro-
pean Economic Community, and in particular
Article 75 thereof,
Having regard to the decision taken by the Council
on 5 October 1982 to ask the Committee for an
opinion on the abovementioned draft Regulation ('),
(•) OJ No C 265, 9. 10. 1983, p. 5.
Having regard to the decision taken by its Bureau
on 13 October 1982 to instruct the Section for Trans-
port and Communications to prepare a report and
an opinion on the matter in accordance with
Article 22 of the Committee's Rules of Procedure,
Having regard to the opinion adopted by the Sec-
tion for Transport and Communications at its 151st
meeting held on 14 September 1983,
Having regard to the report submitted by the rappor-
teur, Mr Bos,
Full & Egal Universal Law Academy