Bulletinof the European Communities

Supplement 1/76

European Union

Report by Mr Leo Tindemans,Prime Minister of Belgium,to the European Council

Blank pages not reproduced: 2 , 4, 8 , and 10.

EUROPEAN COMMUNITIES

Commission

contents

Text of Mr Leo Tindemans ' letter to his European Council col-leagues.

Report on European Union

I. A common vision of Europe

EuropetodayB. European Union .

II. Europe in the world

A. A single decision-making centreB. Towards a common foreign policyC. Immediate positive action

III. European economic and social policies

A. Economic and monetary policySectoralpolicies .

C. Social and regional policies

IV. Acitizen sEurope

A. Protection of rights

. . . .

B. External signs of our solidarity

V. Strengthening the institutions

TheParliament .B. The European Council

TheCouncilTheCommission

E. The Court of JusticeF. Other Community bodiesG. The delegation of executive power

VI. General conclusion.

. . .. .

Text of Mr Leo Tindemans letterto his European Council colleaguessent on 29 December 1975

At the Conference of Heads of Government of Member States of the European Com-munities, which was held in Paris on 10 and 11 December 1974, you asked me to de-fine what was meant by the term ' European Union

When attempting to do this I obviously took into account the reports drawn up bythe European Parliament , the Commission of the European Communities and theCourt of Justice and also the opinions voiced during the past year by members of yourgovernments and other powerful forces in th various States.

Throughout these contacts I was struck by .a contradiction.

On the one hand, some people believed that it was particularly inappropriate to drawup a report on European Union at a time when the European concept was passingthrough a crisis and the incompleted European structure was swaying. Furthermorethere was the feeling that the economic recession has made itself felt in our MemberStates throughout 1975 without any large-scale joint action having been planned tocounter the effects of economic depression and unemployment.

And yet-and this is most significant-almost all the people to whom I spoke statedthat they could not imagine a better future for their country than that offered by thebuilding of Europe. They could not conceive of doing this other than by strengtheningthe Community.

In this respect , there is a distinct divergence of views between public opinion and thosewho fulfil a political role in their respective countries.

Public opinion is extremely sceptical on the will to establish a genuine European Unionand solve the real problems of the day at European level. It wants results and questionsthe lack of political will on the part of its leaders.

For me , the conclusion is obvious: if we wish to safeguard the achievements of theTreaties and conquer new ground the Member States must agree on new aims.

At this stage, the stakes are political, that is quite irrefutable.

This is the reason why I deliberately refused to draw up a report claiming to be, atleast in part , the Constitution for the future European Union. Nor did I wish to des-cribe what Europe ideally should be , while remaining personally convinced that Europewill only fulfil its destiny if it espouses federalism.

The crisis in Europe is so serious that we must, in the immediate future, save whathas already been achieved and , working on this basis, take drastic measures to makea significant leap forward.

I had to make a difficult choice. My proposals do not directly concern the final phaseof European development. They ~tate the objectives and the methods whereby Europecan be invested with a new vitality and current obstacles can be overcome.

My choice is based on the belief that at the present time any ' other approach wouldeither be unw.orthy of our faith in Europe, or else, because of its 1:ltopian nature in thepresent circumstances, would 10se all credibility with the parties in power. Conse-quently, it represents a realistic yet feasible approach.

For me, European Union is a new phase in the history of the unifu;ationof Europewhich can only be achieved by a continuous process. Consequently, it is difficult tolay down , at this stage, the date of completion of the European Union. It will only

. achieve its objectives by means of institutions which have been adapted to its new re-quirements. It is in fact by means of institutions which have been strengthened andimproved that the Union will be able to give increasing expression to its own dynam-ism. In this respect, the role of a directly-elected European Parliament will be decisivein the development of the Union. Finally, I am convinced of the need, in 1980 , to as-sess what we have already achieved so as to open up new prospects and make furtherprogress.

That , after much reflection , is my conclusion.

Seen in this light , the proposals put forward in my report should help us to overcomethe present crisis, improve the functioning of the institutions, give shape to yesterdayand today s political options and work out new ones. As I see it , this is the main taskat the present time.

If we succeed in this, the European concept will be preseved once and for all and be-cause of this the future of our peoples assured.

I remain firmly convinced-as do the great majority of our fellow-citizens-that we canonly really develop if we have common policies in most sectors.

Efforts to reach an agreement on vital questions of international policy and concertationon security are the basis of our policy which aims at safeguarding our identity. Theyare indispensable to Europe if a better world is to be bui'lt.

The aim of European Union should be to overcome the age-old conflicts which areoften artificially maintained between n;;ltion States, to build a more humane society in whichalong with .mutual respect for our national and cultural characteristics, the accent will beplaced more on the factors uniting us than on those dividing us.

Such a Europe could awaken new hope in everyone and could be the focal point inan ideal and significant resurgence.

Any discussion which the European Council may wish to hold on my report shouldlead to a commitment to achieve by appropriate decisions the qualitative change cha-racteristic of European Union.

I am convinced that after a detailed study of this report you will feel able to endorseits objectives and ensure that they are carried out.

Report on European Union

I. A common visionof Europe

A. Europe today

Why has the European concept lost a lot of itsforce and initial impetus? I believe that over theyears the European public has lost a guidinglight , namely the political consensus between ourcountries on our reasons for undertaking thisjoint task and the characteristics with which wewish to endow it. We must first of all restore thiscommon vision if we wish to have EuropeanUnion. In 1975 the European citizen does not view thereasons for the construction of Europe in exactlythe same way as in 1950. The European idea ispartly a victim of its own successes: the recon-ciliation between formerly hostile countries, theeconomic prosperity due to the enlarged marketthe detente which has taken the place of the coldwar, thanks particularly to our cohesion , all this

seems to have been achieved and consequentlynot to require any more effort. Europe today ispart of the general run of things ~ it seems tohave lost its air of adventure.

Our peoples are concerned with new problemsand values scarcely mentioned by the Treaties.They realize that political union does not auto-matically follow from economic integration ~ toomany fruitless discussions cast doubt on the cre-dibility and topicality of our joint endeavour: tothis extent the European idea is also a victim ofits failures.

In this state of mind we plunged into a crisis andare experiencing rates of inflation and unemploy-ment the likes of which have never been seen bythe present generation. It is therefore hardly surpris-ing if the Community is crumbling beneath theresurgence , which is felt everywhere, of purelynational preocuupations. Especially as the Com-munity, in its present state, is unbalanced: insome fields it has been given far-reaching pow-ers , in others nothing, or practically nothing, hasbeen done , very often because our States weretoo weak to undertake anything new: the fragile

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nature of Europe in some 'ways also reflects thepowerlessness of our States.

An unfinished structure does not weather well: itmust be completed, otherwise it collapses. TodayCommunity attainments are being cha!lenged.Basically, however, Europeans are still in favourof closer links between our peoples as laid downin the Treaties of Paris and Rome, first betweenthe Six , later between the Nine. They even takethis rapprochement as a matter of course and re-gret not having more evidence of it in their dailylives. A return to selfish national attitudes , to na-tional barriers, and to the antagonisms whichthey have frequently engendered would be seenas a historic defeat , the collapse of the efforts ofa whole generation of Europeans.

If this extensive will for rapprochement is to takeon a political dimension vital to ensure that ac~tion is taken , Europe must find its place againamong the major concerns of public opinion thusensuring that it will be the focal point of the pol-itical discussions of tomorrow. We must listen our people. What do the Europeans want? Whatdo they expect from a united Europe?

1. A voice in the world

During my visits I was struck by the widespreadfeeling that we are vulnerable and powerless.This is a new experience for our peoples in recenthistory. Inequality in the distribution of wealththreatens the stability of the world economicsystem; exhaustion of resources weighs heavilyon the future of industrial society~ the interna-tionalization of economic life makes our systemof production ever more dependent. Our Statesseem very weak to face these challenges alone.What weight 40 isolated voices have unless theyare those of the super powers?

And yet the will to make an active contributionis still very strong as we can see from the 100 000young Europeans who are working in cooperationprogrammes throughout the world. Our peoplesare conscious that they embody certain valueswhich have had an inestimable influence on thedevelopment of civilization. Why should wecease to spread our ideas abroad when we have

always done so? Which of us has not been sur-prised to see the extent to which the Europeanidentity is an accepted fact by so many of theforeigners to whom we speak? It is not only fromwithin that there is a call to the countries of Eu-rope to unite.

Our peoples expect the European Union to be,where and when appropriate, the voice of Europe.Our joint action must be the means of effectivelydefending our legitimate interests, it must pro-vide the basis for real security in a fairer world,and enable us to take part in this dialogue bet-ween groups which clearly characterizes interna-tional life. How can we reconcile these require-ments in today s world if we do not unite?

Europ~ must guard against isolation, against

turning inwards on itself which would reduce itto a footnote in history, and also against the sub-jection and narrow dependence which wouldprevent it from making its voice heard. It mustrecover some control over its destiny. It mustbuild a type of society which is ours alone andwhich reflects the values which are the heritageand the common creation of out peoples.

2. A new society

We all feel that our society is in the state of an-xious expectancy and conflict which is the fore-runner of major changes. New and sometimescontradictory scales of values are making theirappearance in all fields of social life. The task ofthe present generation is to seek a transition a post-industrial society which respects the basicvalues of our civilization and reconciles the rightsof the individual with those of the community.If we fail our democracies will be at risk and ourchildren will inherit a decadent society.

Despite the sometimes radical divergencies in thesolutions advocated there does exist a minimumconsensus of opinion between the democraticforces in Europe on the nature of the changes re-quired. A new type of economic growth display-ing more respect for the quality of life and thephysical and human environment and better ableto reconcile economic and social objectives.Growth which is oriented towards highly special-

ized activities' and makes full use of the skills av-ailable in Europe , management and organization-al capacities in the most advanced and complexfields of human activity; this is our one specificadvantage in the international economy: Europegrey gold' . Finally, the development of indivi-

dual personal responsibility in the social andeconomic sphere by associating workers with thedecision making, the management or profits ofundertakings ,. by greater freedom in the organiza-tion of work , by more openness, decentralizationand consultation in public administration.

Our peoples wish European Union to embodyand promote the development of our society cor-responding to their expectations, to provide new authority to compensate for the reducedpower of national structures and to introduce re-forms and controls which often cannot be imple-mented at State level , to give an organic form tothe existing solidarity of our economies, our fi-nances and our social life. Europe can and mustidentify itself with the concerted and better con-trolled pursuit of the common good with econ-omic resources being reoriented towards the col-lective interest , a reduction in regional' and socialinequalities, decentralization and participation indecision making. We will then have created anew type of society, a more democratic Europewith a greater sense of solidarity and humanity.

3. A positive solidarity

No one wants to see a technocratic Europe. Eu-ropean Union must be experienced by the citizenin his daily life. It must make itself felt in edu-cation and culture , news and communications, itmust be manifest in the youth of our countries,and in leisure ,time activities. It must protect therights of the individual and strengthen demo-cracy through a set of institutions which have le-gitimacy conferred upon them by the will of ourpeoples. The image of Europe must be in linewith its motivations and opportunities , it mustdemonstrate to those within and without the sol- idarity of our peoples and the values of our so-ciety. I am convinced that this Europe , a progres-sive Europe , will lack neither power nor impetus.

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B. European Union

The basic choice made by the Founding Fathersof Europe and embodied in the Treaties of Romeand Paris was to bring about an ever closer unionbetween our peoples. This option is stilJ ours. Inthe face of the internal and external challenges ofour society, felt by the whole of Europe, sixcountries initially and then nine decided to fightback by joinin~ forces.

The 19721 and 19742 Paris Conferences decidedthat European Union was the best means of do-ing this at the present stage of the construction

of Europe.

As the aims and 'nature of European Union arenot today clearly understood the first task of ourgovernments is to decide within the EuropeanCouncil what precisely are the scope and conse-quences of these choices. It is now up to the Eu-ropean Council to decide in which general per-spective the joint endeavour will be pursued dur-ing the Union phase. The time to enshrine in alegal text all the changes which have been grad-ually made to the European structure will bewhen the process of building the Union has ac-quired its own momentum.

As a result of my consultations in all our coun-tries I propose that the European Council should de-fine the different components of European Union asfollows:(1) European Union implies that we present a unitedfront to the outside world. We must tend to act in com-mon in all the main-fields of our external relationswhether inforeign policy, security, economic relationsor development aid. Our action is aimed at defendingour interests but also at using our collective strength insupport of law and justice in world discussions.

(2) European Union recognizes the interdependenceof the .economic prosperity q( our States and acceptsthe consequences q( this: a common economic. andmonetary policy to manage this prosperity, commonpolicies in the industrial and agricultural sectors andon energy and research to sq(eguard the future.(3) European Union requires the solidarity q( ourpeoples to be effective and adequate. Regional policywill correct inequalities in development and counteractthe centralizing ~f(ects q( industrial societies. Social

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action will mitigate inequalities q( income and encou-rage society to organize itse(fjn afairer and more hu-mane fashion.(4) European Union makes itse(f(elt in people s dailylives. It helps to protect their rights and to improvetheir It(e style.

(5) In order to achieve these tasks European Unionis given institutions with the necessary powers to deter-mine a common, coherent and all-inclusive politicalview, the ~fficiency neededfor action, the legitimacyneeded for democratic control. The principle q( theequality q( all our States continues to be respectedwithin the Union by each State s right to participate inpolitical decision making.

(6) Like the Community whose objectives it pursuesand whose attainments it protects European Union willbe built gradually. So as to restart the construction ofEurope straight away and increase its credibility its in-itial basis is the political commitment of the States tocarry out in differentfields specific actions selected ac-cording to theiJ importance and the chances q(success.

The different facets of European Union describedabove are closely connected. The development ofthe Union s external relations cannot occur with-out a parallel development of common policiesinternally. Neither can be achieved without con-solidating the authority and effectiveness of com-mon institutions. In this vast scheme everythinggoes together and it is the sum of the progressachieved in parallel which constitutes the quali-tative change which is European Union. The restof this report will examine in each of the fieldsreferred to the aim and the first positive actionswhich need to be and can be taken.

The general framework which I propose shouldbe adopted by the European Council must serve

as guidelines for our efforts to build Europe. Thewill of our States , expressed in. this way, is basedon the deep-seated motivations of public opinionand can convey to it the guiding light of ourcommon action.

The political consequences of these choices mustbe carefully assessed. They cannot occur without

transfer of competences to common institu-tions. They cannot occur without a transfer of re-sources from prosperous to less prosperous re-gions. They cannot occur without constraintsfreely accepted certainly, but then enforced unre-

servedly. This is the price of Union. But what pricewould we pay for inaction? The crumbling awayof the Community, voices isolated and often go-ing unheard on the world stage, less and lesscontrol over our destiny , an unconvincing Europewithout a future.

II. Europe in the world

Our States' reasons for presenting a united frontin world discussions are convincing from an ob-jective point of view: they stem from power re-lationships and the size of the problems. From asubjective point of view they are felt verystrongly by our peoples: our vulnerability and ourrelative impotence are in the thoughts of every-one. The convergence of these two factorsmeans that external relations ' are one of the mainreasons for building Europe , and make it essen-tial for the European Union to have an externalpolicy.

A. A single decision-makingcentreThe examination of our possibilities for action inthe. world should be based on one obvious fact:the increasing intermeshing of different sectors ofinternational activity.

In the framework described in the precedingchapter the European Union should not only beconcerned with foreign policy in the traditionalsense , including security aspects , nor solely withtariff and trade policies which are already com-mon policies by virtue of the Treaty of Rome,but also with all external economic relations. Thetraditional distinctions maintained by diplomaticchancelleries in this field make increasingly lesssense in the modern world. Recent developmentsof international life show that economic, indus-trial , financial and commercial questions will all inthe future be the subject of negotiations , the sig-nificance of which will be highly political. If theEuropean Union did not have the means to coverall aspects of our external relations it would notbe equal to its task. The Union must have acomprehensive and coherent outlook , and act ac-cordingly. I propose that the European Councilshould now decide:

(a) to put an end to the distinction which still existstoday between ministerial meetings which deal withpolitical cooperation and those which deal with the

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subjects covered by the Treaties: in order t~ decide ona policy the Ministers must be able to consider all as-pects qf the problems within the Council.

(b) that the institutions qf the Union can discuss allproblems (fthey are relevant to European interesfs andconsequently come within the ambit qf the Union.

The existence of a single decision-making centredoes not mean that there will be confusion bet-ween those activities which today are the respon-sibility of the Community and those which lie inthe field of political cooperation. The nature the problems is .not such that they must all dealt with in the same way. But coherence of ac-tivity, which' is essential , does require that thedifferent aspects of the often complex proble~swhich the European Union will have to examInebe dealt with together, at least at ministerial lev-

, by the same people and in the same place.

With this in mind I propose changing the politicalcommitment qf the Member States which is the basisqfpolitical cooperation into a legal obligation. A veryshort protocol taking up paragraph 11 * of the Co-penhagen Report3 ought to give competence tothe Council and thus clarify the legal frameworkin which it is to operate.

The development of new policies on the basis ofthe Treaties does not cause any particular pro-blem: the provisions binding us are clear andthere are numerous precedents. The same thingdoes not apply in fields not covered by the Trea-ties. The way in which future developments areto take place must be specified here.

* This paragraph reads as follows:

Governments will consult each other on all important foreignpolicy questions and will work out priorities, observing thefollowing criteria:

the purpose of the consultation is to seek common policieson practical problems;

the subjects dealt with must concern European interestswhether in Europe itself or elsewhere where the adoption ofa common position is necessary or desirable.

On these questions each State undertakes as a general rulenot to take up final positions without prior consultation withits partners within the framework of the political cooperationmachinery.

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B. Towards a commonforeign policy

In those fields of foreign relations not covered bythe Treaties the Nine nowadays coordinate theirpolicies , and in recent years this arrangement hasbeen extended and has met with considerablesuccess. Such an arrangement would Rot, how-ever, be adequate within the framework of the Eu-ropean Union. It explicitly incorporates within itsstructure the possibility of failure: the pursuit ofdifferent policies whenever coordination has notbeen achieved. The European identity will not beaccepted by the outside world so long as the Eu-ropean States appear sometimes united, some-times disunited.

European Union obviously implies that, withinthe fields covered by the Union , the EuropeanStates should always present a united frontotherwise the term would be meaningless. Thecoordination of policies, which is important dur-ing a transitional period , must therefore graduallymake way for common policies , which meansthat within the framework of the EuropeanUnion , our States must be able together to drawup a policy and to enact it.

Chapter V of this report gives details on the res-pective roles of the European institutions in theformulation and implementation of a commonforeign policy. Here suffice it to say that the Eu-ropean Council has a vital role to play in statinggeneral policy guidelines based on a global poli-tical analysis , without which there can be nocommon policy. The political decision , which isthe application of agreed general policy guidelines

to the realities of everyday life, is the responsi-bility of the Council.

The main difference between the coordination ofpolicies, as practised at present , and a commonexternal policy, which distinguishes the Uniondoes not arise from the kind of procedure adopt-ed or the nature of the relevant. institution. It liesin the obligation to reach a common point ofview. The States will undertake to define thebroad guidelines for their policy within the Euro-pean Council. On this basis , the Council then hasthe obligation to reach a common decision onspecific questions. This obviously means that the

minority must rally to the views of the majorityat the conclusion of a debate.

In order to provide the necessary impetus to thedynamic process of European Union, our States

must now undertake the political commitment topursue a common foreign policy within a givennumber of specific fields, selected in relation their importance and the prospects of practical re-sults. During the gradual evolution of the Unionthis political commitment will have to be extend-ed to all essential aspects of our external rela-timis.

C. Immediate positive action

When defining its foreign relations, the EuropeanUnion must approach both the major world pro-blems and the problems arising in its own region-al area. Owing to their basic importance, fourproblems must be of foremost concern to us:

a new world economic order~

relations between Europe and the UnitedStates;

security ~

the crises occurring within Europe s imme-. diate geographical surroundings.

When dealing with such complex problems it isunavoidable that certain decisions should be sub-ject to provisions of the Treaties while others arenot. In these cases of joint responsibility, com-mon policies will have to apply concurrently toboth the procedures of the Treaties and on theprocedure arising from. Member States' politicalcommitment mentioned above.

1. A new world economic order

Our external relations with countries of the ThirdWorld are , and will continue to be, dominated bythe problem of sharing the world's economic re-sources and, to a lesser extent, by the after-effects of the colonial era. These questions affect our economic relations , our supplies , our develop-ment cooperation effort and , finally, the solidarity

of mankind and world stability. This is thereforeone of those complex situations in which thevoice of Europe must make itself heard.

Furthermore , there is every indication that this isa field in which the Nine can and must formu-l~te a. common external, policy without delaysmce:

the main negotiations have not yet really beg-un~

they will take place between groups of coun-tries, and, in such circumstances, bilateral diplo-matic relations, however close they may be, solvenothing, whereas the EEC has acquired valuableexperience through the Yaounde and LomeAgreements

the divergences of opinions and interestsamong the Nine, which . are unavoidable whendealing with so vast a subject, are not insuper-

able , as has been shown recently by the commonstand adopted at the seventh special session of the UN General Assembly, and in the prepara-tions for the Conference on International Econ-omic Cooperation~

even without a new political commitment , therespect for Community authority, the require-ments of political action and the defence of ourcommon interests, call for a very high degree ofcooperation and common action on our part.

The Nine are already making serious efforts topresent a united front at major negotiationsahead , and the European Council meeting heldin Rome in December 1975 has, in this respectproduced some encouraging results.4 Our coun-tries have taken the initiative on joint negotia-tions in the Lome Agreement, the Euro-Arabdialogue and in Mediterranean policies.

I propose, prst, that we should decide:

that come what may we present a unitedfront atmultilateral nego.tiations relating to a new world econ-omic order, at the various gatherings where these takeplace, and in the implementation of their conclusions.This means that we shall, in every case, place the pri-mary interest of joint action above our divergent opin-ions and interests;

that we shall designate, as the need arises, the del-egates responsible for pursuing such policies on ourcollective behalf.

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I propose that decisions should then be taken:

to strengthen the instrument of our common actionby gradually tran~ferring to the Community a substan~tial part of national appropriations intended/or dev-elopment cooperation (major development projects,food aid, financial aid), and in coordinating the re-mainder qf our activities in this . field.

----

to complement this approach by adopting a com-mon stand on general political problems which couldarise in our relations with the Third World.

If these decisions are taken, we shall de facto

pursuing a common external policy in the essen-tial elements of our relations with the ThirdWorld.

2. Relations between Europeand the United States

Relations with the United States , who are at oneand the same time our allies, our partners andoccasionally our competitors, raise problems ofvast proportions for the European Union. Theyare of prime importance in the political field, indefence , in economic affairs , not only on accountof the interdependence of United States and Eu-ropean economies, but also because of the jointresponsibility of these two industrial centres forthe world economy, a responsibility which theRambouillet meeting of November 1975 has onceagain underlined.

The need for Europe to speak with one voice inits relations with the United States is one of themain underlying reasons for the construction ofEurope. A constructive dialogue between the Eu-ropean Union , conscious of its identity, and theleading Western political , economic and militarypower, is necessary without delay. Its usefulnesshas been recognized by the document on the Eu-ropean . Identity adopted at the Conference ofHeads of Government at Copenhagen in Decem-ber 1973.5 Only in this manner, and in accord-ance with the development of the Union, shallwe be able to establish relations with the UnitedStates based on the principle of equality, free ofany sense of dependence , which reflects at thesame time both what is common in our basic va-

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lues, interests and responsibilities, and the differ-ences in the destinies of our two regions.

It is doubtful whether the ' European States canhave a strictly identical appreciation of relationsbetween the United States and Europe so long astheir respective analyses of the problems of de-fence are noticeably divergent. This questionmust however be examined frankly and thor-oughly with the object of laying down certainprinciples and rules determining the content ofand procedures for cooperation between Europeand the United States.

In this context I propose that the European Councilshould take the initiative to delegate one of its mem-bers to hold talks with the United States in view of in-i(iating a common reflection of the character andscope of relations between that major power and theEuropean Union.

3. Security

By virtue of the Atlantic Alliance we in Europeenjoy a measure of security and stability whichhas enabled us to undertake the construction ofEurope. Since our States recognize the existenceof a .common destiny, the security of one mem-ber necessarily affects the security of others. Noforeign policy can disregard threats, whether ac-tual or potential , and the ability to meet them.Security cannot therefore be left outside thescope of the European Union.

On the other hand , the Conference on Securityand Cooperation in Europe has shown, if that

was necessary, that in matters of security, politi-cal , military, economic factors and those affectinghuman relations , closely overlap.

During the gradual development of the EuropeanUnion , the Member States will therefore have tosolve the problems of maintaining their externalsecurity. European Union will not be completeuntil it has drawn up a common defence policy.

Meanwhile, I note that our States are not reallyat present in a position to determine the general

policy guidelines without which no common de-fence policy is possible, and are unlikely to be

able to do so in the near future. But this does notmean that nothing should be done, and I there-

fore propose that we should decide:

regularly to hold exchanges of views on ourspecific problems in defence matters and on Europeanflspects of multilateral negotiations on security. Ex-changes of views of this kind will one day enable Mem-ber States to reach .a common analysis of defence pro-blems and, meanwhile, to take account of their res-pective positions in any action they take;

to cooperate in the manufacture of armamentswith a view to reducing defence costs, and increasingEuropean independence and the competitiveness of itsindustry. The efforts undertaken at present to providethe European countries of the Alliance with an organ-ization for the standardization of armaments, on thebasis of joint programmes, will have important conse-quencesfor industrial production. This strengthens theneed to Initiate a common industrial policy on themanufacture of armaments within the framework ofthe European Union. Setting up a European arma-ments agency for that purpose must be given consider-ation.

On the question of detente the Nine have already

succeeded , through political cooperation, in out-

lining joint positions that have enabled themduring the Conference on Security and Coopera-tion in Europe , to defend identical points of view.This practice must obviously be pursued andgeneralized. It will also have to include that ele-ment of obligation which distinguishes a com-mon policy from mere coordination. It will haveto be extended , during the gradual developmentof the Union , to all the problems which play animportant role in the general field of detente, in-cluding agreements on economic cooperation andthe increase of human contacts.

The development of a detente policy in Europepresupposes that all those with whom we nego-tiate recognize the European Union as an entity.Our resolve to act together in the field of externalrelations is a reality in Europe today ~ it will beeven more so in the future and all States , includ-ing those whch today still hesitate to do so , willthen have to recognize that fact.

4. Crises in the European region

The political problems which arise within our im-mediate geographical surroundings , that is to say

in Europe and in the Mediterranean area, have aparticular . significance for the European Union.The credibility of our undertaking requires that inthis field, where our interests are greatest, weshould from now on be united , that is to say,

that we should accept the constraints imposeq bya common policy. In the last two years, political cooperation ' hasenabled the Nine to adopt common positions onquestions such as the crises in the Middle East,Cyprus and Portugal and their political action hasoften been expressed through the Community. Ineffect , our States tend to prefer common action.Indeed, the increasing political weig.l)t of theNine, when they are united , and their commoninterests in lessening potential sources of conflictin their immediate surroundings , tend to induceour countries to act together, and will do so in-creasingly.

I therefore propose that we decide to make what hasbeen the constant practice in recent years into a gen-eral rule, that is to say, to lay down a common policyand to act together within this framework, with theconstraints that this entails, wherever important poli-tical problems or crises arise in Europe or in the Me-diterranean area.

In the strictly political field of external relationsthe European Union must , independently of thespecific situations mentioned above , carry on th~kind of cooperation begun in 1970 until the nat-ural evolution of their undertaking leads MemberStates to accept the more compelling formula a common policy.

We must assert the European Identity in all in-ternational political discussions , as the Nine havebeen doing with increasing success at the UnitedNations. We must define our relations withcountries belonging to other continents some ofwhich , such as' China , Canada and Japan showincreasing sympathy for the task of Europeanunification.

In Europe , we must pay particular attention tothose European countries which have a democraticsystem similar to ours. We should establish rela-tions with them which make it possible to takeaccount of their interests and their points of viewwhen formulating the Union s political decisions

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and also to obtain their understanding and theirsupport for our actions. The habit of such infor-mal cooperation will, in due course, facilitate theaccession of those States wishing to join.

We should give greater joint consideration thanin the past to those problems of our external re-lations which bear upon the European Union inthe medium term. I propose that the Ministers for

Foreign Affairs should submitsuggestions to the Euro-pean Council on how joint .consideration .Qf such pro-blems can be undertaken.

Conclusion

Our common action with regard to the outsideworld cannot, obviously, be considered in isola-tion. In some fields the practical opportunities forprogress will depend on parallel progress beingmade in building the Union s internal structure:

as in the case, for example , of monetary and fi-nancial questions. The implementation of commonpolicies in our external relations presupposes in-creased efficiency in the institutional system.

These questions are examined elsewhere in thisreport , and it is the progress of the whole whichwill enable Union to be achieved.

Subject to that reservation , the proposals set outin this chapter constitute a qualitative change inthe nature and intensity of our relations, whichis what the Union seeks to achieve.

In order to ensure such a common front andsuch common action in relation to the outsideworld, our States will gradually wish to submitthe greater part of their external relations pro-blems to a common policy, and they will acceptthe constraints imposed in consequence. In orderto give the necessary new impulse to thedynamic process of Union , they should now take,in a number of selected sectors , certain bindingpolitical commitments. During the gradual devel-opment of the European Union, these will haveto be enshrined in legal obligations which willconfirm the qualitative changes whch the Unionseeks to achieve. In the very important field ofour external relations the European Union willthen have become a living reality.

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III. European economicand social policies

Since 1969, tbe Conferences of Heads of Govern-ment have affirmed the will to consolidate theCommunity by establishing an Economic andMonetary Union.6 It was an important politicalchoice, made by the highest authorities of ourStates. However, in recent years the Community has notprogressed in this important field , and unless itdoes so European Union will be meaningless.The adverse international economic and financialcircumstances are not the only cause: these couldequally well have induced a burst of activity.

' pointed out in the report of the workinggroup chaired by Mr Marjolin,7 the failure is alsothe result of two other causes: a failure of poli-tical will, and inadequate understanding both ofwhat an Economic and Monetary Union is meantto be and of the conditions necessary for thecreation and operation of such a Union.

In the first chapter of this report I emphasizedthe need to re-establish first of all .a political con-sensus on the scope and consequences of ourcommitments. With regard to economic and so-cial questions , this consensus relates to:

a common economic and monetary policy sectoral policies;

- a social policy and a regional policy.

A. Economic and monetary policy

1. The present situation

In the course of my consultations in the variouscountries of the Community, those with whom Ispoke everywhere recognized the need for Euro-pean economic and monetary policy. Everyoneagrees that this question is the crux of the inter-nal development of the Union, and that isolated

initiatives which may be taken in related fields

such as regional or industrial policy, will bemeaningful only if a solution to the central issueis found. On the other hand , up to now no-onehas claimed to have found a solution whichcould be accepted by all our States.

I am not in a position to produce a ready-madesolution to problems which have long been stu-died and discussed, and which must eventuallybe settled by th~ European institutions , the moreso since these will have more authority to takedecisions and further action.

It seems to me that the situation is as follows:

(1) Our States confirmed in 19748 their resolveto attain the objectives they had set themselves

at the Paris Conference in 1972 9 which includea common economic and monetary policy.(2) Today, however, there is no genuine politicalconsensus to establish this common economicand monetary policy, doubtless because of theabsence of adequate mutual confidence to permitthe transfer to common institutions of the pow-ers which it is essential to grant them.(3) There is 'also no genuine technical consensuson the manner in which a common economicand monetary policy should be achieved. Afteryears of discussions no solution has emergedfrom the experts' debates.

(4) Added to this indecision there are theknown objective economic and financial difficul-ties both at Community and world level.

(5) The progress which it is possible and neces-sary to make, on the basis of a new approach tothe problem ,. which I will mention later, fallsshort of what is required to make, in this fieldthat qualitative change which distinguishes Euro-pean Union.

In fact, there is no agreement on how to achievea common economic and monetary policy, nor isthere even any sustained discussion of the sub-ject. And yet this is a basic requirement forachieving a European Union.

In the present state of affairs , no real progresscan be expected. This situation cannot persistwithout causing the credibility of our govern-ments to be questioned when they assert theirsupport for a European Union.

I therefore propose that the European Council shouldnow:

(a) revive discussions within the institutions on themanner in which a common economic and monetarypolicy can be achieved and its role in the EuropeanUnion. During this policy discussion no proposalsshould be set aside a priori.(b) without waiting for the results of these discus-

sions, instigate positive progress along the roadselect-ed in 1969.

In order to revive the discussions and give someindication of how positive progress can be made,I will now examine:

a new approach to the problems;its practical application by the development of

the ' Snake

the road to follow to make further progress.

2. A new approach

It is impossible at the present time to submit acredible programme of action if it is deemed ab-solutely necessary that in every case all stages

should be reached by all the States at the sametime. The divergence of their economic and fi

- .

nancial situations is such that , were we 'to insiston this progress would be impossible and Europewould continue to crumble away. It must be pos-sible to allow that:

within the Community framework of an over-all concept of European Union as defined in thisreport and accepted by the Nine

and on the basis of an action programmedrawn up in a field decided upon by the commoninstitutions, whose principles are accepted by all

(1) those States which are able to progress havea duty to forge ahead

(2) those States which have reasons for not pro-gressing which the Council , on a proposal fromthe Commission, acknowledges as valid do notdo so,

but will at the same time receive from theother States any aid and assistance that can begiven them to enable them to catch the othersup,

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and will take part, within the joint institu-tions, in assessing the results obtained in thefield in question.

This does not mean Europe a la carte: eachcountry will be bound by the agreement of all asto the final objective to be achieved in common;it is only the timescales for achievement whichvary.

This system which accepts that there shouldtemporarily be a greater degree of integration bet-ween certain members is not without analogy inthe Community: Article 233 of the Treaty ofRome specifically provides for it in the case ofthe Benelux countries and the Belgium-Luxem-bourg Economic Union. The system could, asmatters turn out, be of great assistance in ena-

bling the process of development of the Union toregain its momentum, albeit imperfectly.

I therefore propose that the European Council shouldadopt the following guidelines:

bearing in mind the objective difficulties of certainStates, progress as regards economic and monetarypolicy may be sought initially between certain States inaccordance with the Community practices and thelimitations mentioned above;

the ' Community Snake , nucleus of monetary sta-bility, should be the starting point jor this action. TheSnake must be consolidated and then be modified inorder to extend its action to fields which it does notcover today.

3. The 'Snake

The machinery of the Snake, which has proveditself by maintaining the stability of exchangerates, must be used to seek a convergence ofeconomic and monetary policies between thoseStates which are in a position to achieve it. Inorder to do this the Snake must:

be consolidated,

extend its action to the key aspects of econ-omic and monetary policy,

be of a distinctly Community nature.

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To this end, I propose the following:

(1) Today the Snake operates and is controlled partlyoutside the Community. In future this must happenwithin the common institutions in accordance with

procedures to be agreed upon. Without actually takingpart in the management of the Snake those membercountries not belonging to it will be brought into discus-sions so as to avoid increasing divergence and enableany QPportunities for alignment to be sized. Commu-nity operation of the Snake is all the more essential inthat it constitutes the departure pointfor a policy which

will later be extended to all members of the Commu-nity thus having a beneficial effect on trade as a wholewithin the Community.

(2) At present the Snake only lays down obligationsin the field of external monetary policy. Its operationis therefore precarious and unbalanced. Similar obli-gations must be accepted in the field of:

internal monetary policy: control of money supply;

budgetary policy: extent and financing of deficits;key aspects of economic policy as regards the

short- term economic situation and the controlofinfla-tion.

(3) Within the framework of the institutions, thesystem must provide for procedures enabling joint de-cisions to be reached on alterations in pivotal exchangerates. Member States not belonging to the Snake mustbe brought into these discussions. Those countries bel-onging to the Snake would undertake to withdraw

from it only in cases of' manifest crisis ' as established

by a joint decision.

(4) Counterbalancing these obligations, machineryfor short- and medium- term support between mem-bers of the Snake must be made automatic and con-siderably strengthened. This means increasing the ac-tivity and effectiveness of the European Monet(1ryCooperation Fund whch must become the embryo fora European central bank, in particular by some pool-ing of reserves:

(5) Those countries in the Snake must graduallyabolish the remaining obstacles to the free movementof capital between them , in particular those set upsince 1970, which only demonstrate how the process integration has deteriorated.

(6) Finally, measures must be worked out to assistthose countries not in the Snake and help them to join.

The measures cannot bedejined in abstracto and willnot be automatic. They will be determined case bycase. These measures will also include those in thestructural field, by means of regional, social, industrialand agricultural policies. In connection with the dev-elopments explained in previous paragraphs it is im-portant to keep in mind the interests of the countriesnot taking part in the Snake in order to facilitate theirfuture participation. Hence the need to discuss thesedevelopments within a Community framework.

Thus consolidated and extended , the nucleus ofmonetary stability existing today becomes the ba-sis for a real convergence of economic and mon-etary policies.

Strengthening the Snake will also be of directhelp in gradually restoring greater internationalmonetary stability. The first step in restoring thisstability is to form significant zones of stabilitywithin which stable exchange rates can be main-tained.

This strengthening will enable us to seek a bettercoordination of economic and monetary policiesbetween large blocs with the aim of reducing thefluctuations, which in the recent past have beenexcessive, between leading currencies o( groupsof currencies and more particularly between theSnake and the dollar. In this connection the Eu-ropean Monetary Cooperation Fund should grad-ually be made responsible for the interventionpolicy of the Snake vis- iI-vis the dollar. Consolida-tion of the Snake will enable the Community totake part as such in international financial nego-tiations.

4. The search for a common policy

The new approach , set out above, and its practi-cal application to the Snake will not by itself leadto the formation of a common economic andmonetary policy. This approach is a starting pointfrom which a certain amount of progress can bemade , and which can serve as a prelude to the im-portant stages which will remain to be reached.The latter must be discussed within the institu-tions.

In steering this discussion we must learn from

the past. For- my own part I would draw the fol-lowing conclusions from our past failures:

(a) Comprehensiveness and interdependenceof solutions

Our approach to the problems raised must becomprehensive. If, a~ must be the case, progressis made in stages, each stage must involve a bal-anced set of measures in the field of economicpolicy as well as monetary policy.

The interdependence of solutions also means thatthe automatic implementation of measures forgiving aid or mutual assistance which is of neces-sity part and parcel of any Economic and Mon-etary Union , is directly bound up with an accep-tance of the constraints which this union in-volves.

(b) The irreversibility of the machinery

Even though equilibrium is sought at .each stage,it is inevitable that certain States should feel theyare taking greater risks than others, be it thatthey have less to gain in the immediate future orthat they stand to lose more.

To carry conviction , progress must be irreversible.The general political benefits from definite pro-gress towards a strong, integrated EuropeanUnion will offset any short-term disadvantage, beit real or imaginary, which a particular State hasto face. This means that the policy of ' smallsteps' cannot always apply; sometimes a ' largestep ' must be taken.

It seems to me that this is the basis on whch weshould resume discussion of problems involvedin setting up an Economic and Monetary Union.The Werner Report 10 and the Resolution adoptedby the Council II set out the problems and the so-lutions which should be considered. They mustcontinue to form the basis for our discussions,along with the ideas which have been put for-ward since then. I am thinking in particular ofthe various proposals to create a European cur-rency,. which would obviously have a consider-able political and psychological import.

Whatever happens, achieving Economic and

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Monetary Union in the difficult circumstances weare facing at present will be a lengthy business.For this reason I have proposed positive stepswhich can be taken in the immediate future onthe basis of a new approach. These steps will leadto a degree of integration which is doubtless im-perfect but which will make it easier to take thelarge steps ' which at some point will have to be

taken. However, these positive steps can onlytake on their full significance as part of a long-term vision setting out a programme whch is am-bitious and at the same time realistic. The Euro-pean Council must lend. its authority to this. suggest that the Commission should submit an annualreport to the European Council on progress made inthe search for a common economic and monetary pol-icy and that it should propose which new steps couldsuccessfully be taken. This report could serve as pre-paration for an annual debate in Parliament on thestate of the Union.

B. Sectoral policies

Within the framework of organized convergenceof economic and monetary policies , the EuropeanUnion must undertake specific projects to gua-rantee the dynamism , profitability and future ofour productive apparatus in those sectors whereaction taken by our States is today often inappro-priate or inadequate.

In the industrial field this means collectively safe-guarding our innate capacity for innovation andadvanced technology, since this alone can safe-guard our future prosperity in the world economy.

It also means pursuing Community objectives asregards opening up markets, adherence to therules on competition , the abolition of fiscal bar-riers and drawing up a statute for the ' EuropeanCompany

' .

Finally, we must display solidarity in solving theproblems of adapting our productive capacity,which the search for a new world economic orderwill inevitably raise.

In the agricultural field an assessment has justbeen made by the Council stressing the strengthsand weaknesses of what is our most highly dev-eloped and most integrated form of common ac-

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tion. AgricuIturaf policy reflects one of the as-pects of European Union in that it guaranteesfarmers income and living standards comparablewith those of other groups in ~ociety. This objec-tive is one of solidarity and justice. However, theimplementation of this policy cannot be viewedpurely in the light of agricultural problems.

I do not think it either possible or useful to in-clude in this report an inventory of actions to betaken in such a vast area. That will be the job ofthe institutions of the Union. I would like how-ever to set out one or two thoughts on the twosectors which are at the very heart of industrialdevelopment and hence our future: energy andresearch.

1. Energy

Current action by the Community both on esta-blishing a Community energy policy and on dis-cussing energy problems in a wider internationalframework is inadequate. In view of our depen-dence on outside sources of energy this issue ra-dically affects the stability and security of ourproductive industry.

European Union implies that a common policyshould be worked out in this fundamental sectorand the European Council at Rome opened theway to progress.

In order to demonstrate our solidarity and lay thebasis for a common policy, I consider that the fol-lowing decisions must be taken:

(a) to set up machinery ensuring the solidarity of ourStates in times of supply difficulties;

(b) to define at Community level consumption andproduction targets;(c) to develoPJ in the light of these objectives, a pro-gramme of alternative resources in the context not ofeach individual State but of the needs of the Commu-nity as a whole;

(d) to develop additional production capacity by pro-moting investment and providing the means to safe-guard and protect such investment;

(e) to mobilize at Community level the finance need-ed to achieve (c) and (d) above;

(0 to establish Community instrument to organizethe energy market.

On the external front, the Community will thenbe able to pursue a coherent policy, the basis ofwhich will be the achievement of the aims ofCommunity energy policy, both at the. Confer-ence on International Economic Cooperation andin discussions with the other industrialized coun-tries and any future negotiation of supply agree-ments.

2. Research

The Community s effort as regards scientific andtechnological research. has come up against a cer-tain amount of reticence on the part of nationalresearch institutes and industrial users. This re-ticence is caused by special interests and a lackof confidence. These must be overcome at allcosts since the existence of a common researchpolicy is directly linked to the maintenance of ourcompetitiveness, that is to say our internal pros-

perity and our position in the world.Research policy must not be spread over a range

of heterogeneous and marginal activities. It mustbe strictly concentrated on priority sectors deter-mined in the light of three criteria:(a) research directly connected with a commonpolicy of the Union, such being the case , for ex-ample, with environmental research which is anecessary support and adjunct to a common en-vironment policy.

(b) research directly connected with a commonactivity in a specific sector, such as research intoalternative sources of energy.(c) research too costly to be carried out by an in-dividual State, like, for example, research into

controlled thermo-nuclear fusion.

In these specific fields the common policy must:be backed by resourc~s . adequate in both

q.uantity and duration for results tQ be achievedwhich can be used at the industrial level;

initiate an exchange of information on the ac-tivities and results of national programmes, thusavoiding duplication and making generally avail-able the results obtained;

enable small States in particular to take partin work which would not be justified at nationallevel.

C. Social and regional policies

One of the fundamentals of the European Unionset out in the first chapter of this report, is thecommon search within a wider framework forprogress towards a modern society and a form economic growth which respects human values'and social needs. Social and regional policiesmeet this objective and give substance to the sol-idarity of Europeans by reducing the inequalitieswhich separate them. In this field I propose that theEuropean Council should adopt the following generalguidelines.

1. Social policy

The sine qua non of the social well-being of Eu-ropeans is economic prosperity guaranteeing fullemployment in conditions of better controlledgrowth. In this context an economic policy whichleads to greater control over production levels willhave an immediate social impact. The same ap-plies to environment and consumer protectionpolicies. Sharing out the benefits of this prosper-ity by means of taxation , social security and pub-lic investment projects will remain essentially theresponsibility of the States , who can take accountof the traditions and facts which vary from onecountry to another. The social poiicy of theUnion must manifest itself in specific projectswhich manifest at European level the social aimsof our undertaking and which guide and supple-

. ment action on the part of individual States. Suchprojects involve the security of the workforce,their involvement in economic decision making(concertation) and their participation in companydecisions and company profits.

(a) Security

Supplementing measures already in force within the

Community, the Union must lay down standards ap-

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plicable in .all our States as regards wages, pensions,social security and working conditions, laying particu-lar emphasis on the problems of women at work.

The Union must afford particular protection to certaincategories of workers: migrants, the handicapped.

It will thus provide a consensus in matters ofsbcialjus-tice, without which our States cannot possibly pursuetheir common undertaking.

(b) Concertation

The gradual tranifer to the European level of somepowers of decision in economic policy matters reflectsa step which large firms took long ago. This paralleldevelopment means that the practice of concertationbetween employers, workers and public authoritieswhich exists to some extent in all our States, must alsobe introduced at European level.

Framework agreements or collective European settle-ments must be reached by means of concertation in in~dividual sectors.

This means considerably increasing the activity of theStanding Committee on Employment. This body willhave to be consulted during preparation of the Unionsocial policy, and it must be associated with its imple-mentation. It must have a right of initiative vis-a-visthe European institutions so that, along with the Par-liament and the Economic and Social.Committee, itcan act as a spur to the development of the social sideof the Union.

(c) Worker participation

The problem of the place of workers in an enter-prise arises perhaps in differing degrees but alongsimilar lines, in all our countries. In view of the in:-creasing integration of economic units this problemshould be solved at the European level by increasingwQrker participation in the management, control orprofits of businesses. This policy fits in with thesearch for a more humane and just society whichlies at the heart of the European effort.

Subsequent developments in the social policy ofthe Union must keep pace with progress in im-plementing a common economic and monetarypolicy. In particular, the operations of the Social

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Fund must be increased gradually in order, alongwith regional aid , to act as a corrective to any im-balances arising in the Community. When therehas been some progress towards the alignment ofthe economic policies of the Member countriesthe internal solidarity of the Union will have tofind more conspicuous expression, in particular inthe fight against unemployment.

2. Regional policy

For an integrated economic and monetary unit tooperate harmoniously there must be a substantialregional policy to offset the tendency of the mar-ket to concentrate capital and activity in the morecompetitive areas of the Union. Such a policy willsatisfy the clear desire in all our countries to re-vive the regions.

This policy must necessarily involve a net traps-fer of resources from the most prosperous areasof the Community to the less favoured areas. Inpart these transfers will be made, as nowthrough national regional development policies.However, a large proportion of the transfers willhave to be made through the Community bud-get, either directly by means of regional aids, orindirectly by the effect on economic structures ofthe agricultural and industrial policies. Regionalpolicy will therefore have to expand gradually instep with progress made in aligning the economicand monetary policies of the member countries.

Moreover, the regional policy must be concentrat-ed on the most economically backward areas ofthe Community. Funds must be allocated on thebasis of objective criteria applicable to the wholeof the Community without national quotas.

Conclusion

The common policies referred to in this chapterare the very essence of European Union. Theygive substance to the solidarity which binds oureconomies and our currencies. They give expres-sion to the desire to enable all regions and all so-cial classes to share the common prosperity andshare power. They aim to restore to us collectiv-

ely that control over the development of theeconomy, industry and energy which is tendingto slip from our grasp and which is essential ifwe are to maintain economic activity and em-ployment. All in all they offer us the instrumentswhich make it possible to strive for new growthin a more just, more humane society. Economic and monetary policy which forms itsessential basis is also its most tricky aspect. Anew approach can none the less give results, solong as progress made is seen as part of a long-term conception, arrived at after thorough discus-sion and based on true political consensus.

This political consensus must also find expres-sion in the approach to economic and monetaryproblems at national level. European Union willbe on the right track when the European dimen-sion is constantly in the minds of the decisionmakers in the Member States , when Europeanaction is no longer thought of as an extension ofminor and marginal importance of a national pol-icy based on national interests , when Europeandecisions and action are accepted as the normalmeans of controlling our society and safeguardingthe future. Today we must push aside intellectualbarriers.

IV. A citizen s Europe

The construction of Europe is not just .a form ofcollaboration between States. It is a rapproche-ment of peoples who wish to go forward together,adapting their activity to the changing conditionsin the world while preserving those values whichare their common heritage. In democratic coun-tries the will of governments alone is not suffi-cient for such an undertaking. The need for it, itsadvantages and its gradual achievement must beperceived by everyone so that effort and sacrificesare freely accepted. Europe must be close to its.citizens.

The main contribution of the European Union inthis field has been described in the previouschapter. Measures taken in connection with thesocial policy of the Union, as regards security,concertation and participation will be directly feltin the daily lives of Europeans. They will empha-size the human dimension of the undertaking.

It remains now for me to set out additionalcourses of action. I propose that we should adopttwo:

the protection of the rights of Europeans wherethis can no 10nger be guaranteed solely by indiv-idual States;

concrete manifestation of European solidarityby means of external signs discernible in everydaylife.

Without going into detail, I will simply indicatecertain areas where progress obviously can andmust be made.

A. Protection of rights

1. Fundamental rights

The gradual increase in the powers of the Euro-pean institutions which will make itself felt whilethe Union is being built up, will make it imper-ative to ensure that rights and fundamental free-doms, including economic and social rights, areboth recognized and protected. In this the Unionwill find confirmation of its political objectives.

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I propose that the European Council should instructthe institutions to propose how best to set about this re-cognition and protection. The latter must at all eventsmean that individuals will have the right of direct ap-peal to the Court of Justice against an act of an insti-tution in violation of these fundamental rights.

2. Consumer rights

The Community s efforts to introduce commonstandards for quality control and marketing mustbe continued. In particular they must be bettermotivated and more effectively put over. Euro-pean consJlmers must be made to understandthat they .are being "fforded real protectionagainst the constant possibility of fraud and otherreal dangers. The individual State is no longer al-ways in a position to provide this guarantee in asingle market where goods are moving freely.

The Commission should examine how best toput over to public opinion the role of Communityrules in consumer protection and should under-take an extensive consumer information pro-gramme in conjunction with the relevant organ-izations and associations at national level.

3. Protection of the environment

It is obvious from the geography of Europe thatone person s environment is also another s andthat its protection cannot remain an exclusivelynational matter.

In a single market , the constraints which need tobe placed on industrial production can only beimposed at European level. The fields where theEuropean Union can and will have to interveneare legion.

Because of its topicality I will quote an exampleof what we should do and make a specific propo-sal:

The European Union should possess a common bodyresponsible for t"egulating and controlling nuclear pow-er stations, with similar responsibilities and powers to

those of the Nuclear Regulatory Commission in theUnited States. Control should be exerted over the sit-

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ing, construction and operation of the power stations,the fuel cycles and the disposal of radioactive andthermic waste.

The psychological reactions throughout the wholeof Europe against the setting up of nuclear powerstations can only' be calmed by the existence ofa supervisory body offering guarantees of strict-ness, openness and in particular independence.These guarantees cannot be found at nationallevel since more often than not our States arethemselves involved, directly or indirectly, in de-cisions as to siting and construction. The argu-ment in favour of a European supervisory bodyis therefore very .cogent: it is a question of ren-dering the necessary development of nuclear en-ergy in Europe acceptable to public opinion. Thisargument is given additional weight by the factthat numerous power stations are planned forfrontier. zones where the problems arising gobeyond national borders.

B. External signs

of our solidarity

1. As regards movement of persons, measuresleading to uniformity of passports and later to apassport union are currently under discussion.

I propose that in addition the European Union shouldset as its aim:

the gradual disappearance of frontier controls onpersons moving between member countries, as a cor-ollary of passport union;

--

improved transport and communication, if neces-sary by harmonizing rules, and by abolishing tariffswhich discriminate between national transport andtelecommunications and those taking place within theUnion;

the simplification of procedures for refunding me-dical expenses incurred by Union citizens in anothercountry of the Union. Existing provisions are inade-quately understood due to their administrative com-plexity and a lack of information. This ' Health Eu-rope ' must be given life.

The day that Europeans can move about withinthe Union, can communicate among themselves

and when necessary receive medical care withoutnational frontiers adding to the problems of dis-tance, European Union will become for them adiscernible reality.

2. Similarly we must encourage greater integra-tion in educational matters by promoting studentexchanges. The aim is to give Europeans of to-morrow a personal and concrete impression of,the European reality and a detailed knowledge ofour languages and cultures since these constitutethe common heritage which the European Unionaims specifically to protect.

I propose that a pragmatic solution should be found tothe delicate matter of the equivalence of diplomas andstudies, this being the main obstacle in the way of in-tegration of educational systems.

Our governments should:foster bilateral or multilateral agreements bet-

ween universities and educational institutionsunder which the latter would undertake to organ-ize student exchanges.

give these agreements a legal status enablingreciprocal recognition to be given to studies invarious sectors.

In this way we would be reviving the ?eal formovement and mutual enrichme,nt which intel-lectual Europe has known in the past. In additionthere should be initiatives based ()n th~ achieve-ments of the ' Office franco-allemand de la jeu-nesse

' .

3. I propose that a serious effort should be made topromote collaboration between information media,in particular radio and television, to encourage thespread of information and better knowledge of eachother.

Such collaboration will be of particular signifi-cance in the context of direct elections to the Eu-ropean Parliament which will provoke throughoutEurope an electoral campaign on Europeanthemes.

ConclusionThe proposals for bringing Europe nearer to thecitizen are directly in line with the deep-seated

motivations behind the construction of Europe.They give it its social and human dimension.They attempt to restore to us at Union level thatelement of protection and control of our societywhich is progressively slipping from the grasp State authority due to the nature of the problemsand the internationalization of social life. Theyare essential to the success . of our undertak-ing: the fact that our countries have a commondestiny is not enough. This fact must also beseen to exist. A strenuous effort must be made by the Euro-pean institutions and by governments to improvethe way in which our common activity is pre-sented to public opinion and to link the daily de-cisions of the institutions to the motivations be-

hind the construction of Europe and to the ideaof society which is inherent in it.

Some of the additional schemes proposed in thischapter are the responsibility of public authori-ties: this applies for example to the movement ofpersons or the protection of human rights. How-ever, other activities fall within spheres whereprivate enterprise normally plays an importantrole , as in the case of human contacts , youth ex-changes and certain aspects of information andculture.With this in mind, I propose that the EuropeanCouncil should decide to create a European Founda-tion to befinanced partly by subsidies from the Com-munity or the States but whose activities will to a largeexten.t be financed from privatefunds. Its object will to promote, either directly or by assisting existing bod-ies, anything which could help towards greater under-standing among our peoples by placing the emphasison human contact: youth activities, university ex-changes, scientific debates and symposia, meetingsbetween the socio-professional categories, culturaland information activities. This Foundation will alsohave a role to play in presenting abroad the image a United Europe.

By virtue of its character, this Foundation will often beable to intervene more flexibly and more effectivelythan national or European authorities. It will also offerthe innumerable supporters of European unification inour countries an opportunity to make a personal con-tribution by aid1ng the Foundation. In this manner itwill be more clearly apparent that the creation of theUnion can and must be a matter for us all.

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V. Strengtheningthe institutions

The preceding chapters have described the con-tent of European Union~ a stage which will bothprolong and extend to new areas the effortswhich have been made over the last 25 years.We must now examine how it should work:

From the consultations which I have had in eachof our countries , I have drawn the following con-cIusions:

European Union can and must be built uponthe institutional bases already accepted by theMember States within the framework of the ex-isting Treaties:

Provided we improve the performance of theinstitutions, whose authority has deteriorated , asis too often shown by the absence or tardiness ofdecisions. In certain cases this may well necessi-tate Treaty amendment.

Strengthening the institutional machinery is allthe more necessary since the tasks which-our in-stitutions will have to undertake are difficult.The European Community has integrated mar-kets. The European Union must integrate policy.The qualitative change which this evolution de-mands hinges on the decision-making processthat i~ to say upon the institutions.

A return to intergovernmental cooperation woul4not help to solve European problems. Such co-operation tends to underline the differences ofpower and interests between our countries anddoes not meet our collective needs. It is thereforethe common institutional machinery which mustbe reinforced.

To achieve European Union we must henceforthbe able to find in the different European institu-tions the authority needed to define a policy, theefficiency needed for common action and the le-

gitimacy needed for democratic contro1. It alsQimplies that the institutions should have that co-herence of vision and of action which alone will

allow them to define and then pursue a policy. Itis with these four criteria of authority, efficiency,legitimacy and coherence in mind that we must

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determine what changes should be brought aboutin the functioning of European institutions.

A. The Parliament

Direct elections to the Parliament will give thisAssembly a new political authority. At the sametime it will reinforce the democratic legitimacy ofthe whole European institutional apparatus.

1. The powers of the Parliament

A consequence of the Parliament's new authoritywill be an increase in its powers, which will takeplace gradually in the course of the progressivedevelopment of the European Union, notablythrough a growing exercise of the legislativefunction. It goes without saying that the Parlia-ment should assume an important responsibilityin the construction of the Union.

I propose that..

the Council should immediately allow the Parlia-ment to take initiatives by undertaking to consider theresolutions which Parliament addresses to it. This will

permit the Assembly to make an effective contributiontowards defining common policies.

in the course of the progressive development of theEuropean Union this practice should be given legal va-lue through a Treaty amendment which would accordto the Parliament a real right of initiative.

Parliament should be able, from now on, to con-sider all questions within the competence of the Unionwhether or not they are covared by the Treaties.

2. General policy debates

The elected Parliament should influence the gen-eral direction of the Union s activities and focus

* The extension of the competences of the European Unionand consequently those of the European Parliament to mat-ters hitherto discussed in the Assembly of the Western Eu-ropean Union, leads one to question the need to maintain theactivity of the parliamentary institution of the WED.

public attention by holding large scale politicaldebates. To enhance the authority of these de-bates it is highly desirable that the leaders in

each of our countries should be able to take partin them , even if the function that they fulfil atthe national level does not in fact allow them tostand for election to the European Parliament.

To ths end I submit for the Parliament s consider-ation the following two proposals:(a) The Parliament should organize at least once ayear (that is to say, according to the proposals set outbelow, once under each Presidency) a debate on the

state of the Union and the functioning of the institu-tions.

(b) Invitations to take part in this debate and otherdebates of comparable importance should be extend-ed, both ' to the President of the European Council,and to a limited number of leading politicians who arenot members of the European Parliament, chosen ac-cording to criteria to be decided. These invited politi-cians would be able to address the Parliament.

B. The European Council

The institutional structures set up by the Treatieshave shown themselves in practice to be tooweak to give the continuing political momentumneeded for the construction of Europe. This iswhat led the Heads of Government to meet, in-itially occasionally, and then regularly under thename of ' European Council'

So that the European Council should really bringsomething new to the functioning of the institu-tions by strengthening the Union s decision-mak-ing capacity, I submit to it the following propositionsdefining its role and its method of working:

1. The European Council is to give coherent general

policy guidelines, based on a comprehensive vision ofproblems. This is an indispensable precondition for anattempt to produce a common policy.

2. Within this framework the Heads. of Governmentwill collectively use the authority which they have atthe national level to give from within the EuropeanCouncil the impetus which is needed for the construc-tion of Europe, and to search together for that political

agreement which will allow dynamic progress ' to bemaintained, in spite of difficulties.

3. To ensure that it functions as an efficient institu-tion while maintaining a large measure of flexibility,the European Council:

will, when it takes decisions on Community mat-ters' act in accordance with the forms and proceduresprescribed by Treaties. The presence of the Commis-sion at European Council meetings is to be theguaran-tee of this;

in other cases willformulate its decisions or generalpolicy statements in such a way that they can serve asguidelinesfor those to whom their execution is entrust-ed;

the European Council will always indicate the in-stitution or the organization entrusted with executingits decisions;

will at the same time indicate, if necessary, thetime-scale for the execution of the decision;

and the preparation of its meetings is to be the res-ponsibility of the Council of Ministers (Foreign Af-fairs).

C. The Council

The Treaties lay down the powers and the pro-cedures of the Council in the Community field.When it acts in fields of Union activity not cov-ered by the Treaties, the competence of theCouncil will derive for the present from the pol-itical commitment of the M~mber States and Willlater be confirmed by a juridical instrument.To reinforce the authority and efficiency of theCouncil its activity must become more coherent,speedier and more continuous.

To this end I fqrmulate the following proposals.

1. Coherence

(a) The Council of Ministers (Foreign Affairs) shouldbe entrusted by a decision of the European Councilwith coordinating in the most appropriate manner theactivities of the specialist Councils.

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(b) The distinction between ministerial meetings de-voted to political cooperation and meetings of theCouncil should be abolished. The abolition of this dis-tinction would not however affect the current proce-dures for preparing the diplomatic discussions of theMinisters.

2. Speed

Speeding up the decision-making process requiresgreater use of majority mechanisms.

(a) Recourse to majority voting in the Council shouldbecome normal practice in the Community field.

(b) In those sectors of external relations where theMember States have undertaken to pursue a commonpolicy, they must be able speedily to reach decisions

and "to act when faced with a crisis. This implies thatby analogy with the institutional mechanism of theTreaties, minority opinion should, in these sectors,rally to the view of the majority at the end of the dis-cussion.

3. Continuity

(a) A Treaty amendment sh()uld extend to a wholeyear the term of the Presidency of the EuropeanCouncil and the Council in order to:

strengthen the authority of the Presidency,

permit a more coherent dialogue between the Par-liament and the Council,

lend more continuity to its activity.

(b) The European Council and the Council shouldentrust special or temporary tasks, like a negotiationor study, to the Commission, to.a single country or toone or more pe;sons independently of changes in thePresidency. This should in no way diminish the powerswhich the Commission derives from the Treaties.

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D. The Commission

1. Role of the Commission

Under the terms of the Treaties the Commissioncan considerably influence the determination ofcommon policies' by the proposals which it sub-mits to the Council. It must do this unreservedlyby regularly making the Council face its respon-sibilities. It must not, however, restrict itself to makingproposals. It must reassert its freedom of actionwithin the framework of agreed Community pol-icies, in order to add its pwn brand of dynamismto the building of the European Union. This free-dom of action was best expressed by the powersconferred on the High Authority of the Coal andSte~l Community. We must follow this example.

I propose that:

For the execution and administratibn of commonpolicies within the Community greater use should bemade of Article 155 of the Treaty which makes provi-sion for such powers to be conferred on the Commis-sion.

The European Council should ask both the Com-mission and the Council to prepare a report for it oninstances where this provision could be applied todayor in the near future.

2. The cohesion of the Commission

In order to give the European Commission increasedauthority and cohesion I propose that the Treaties beamended as follows:(a) The President of the Commission will be appoint-ed by the European Council.

(b) The President when appointed will have to ap-pear before the Parliament to make a statement andhave his appointment confirmed by vote.

(c) The President of the Commission will then ap-point his colleagues in consultation with the Counciland bearing in mind the number of Commissioners al-located to each country.

While we are waitingfor this amendment to be madeto the Treaty I suggest that the President of the Com-

mission which is to come into office on January 1977should be appointed by the European Council at its se-cond meeting in 1976, that he appear before the Par-liament and then help the Member States to preparefor the Council meeting which will appoint the othermembers of the Commission.

E. The Court of Justice

The Court of Justice stressed in its report on Eu-ropean Union that the Community constitutes astate of law ' and that this characteristic must be

maintained within the Union. This is an essential

factor conferring ' legitimacy upon our undertakingwhich leads me to formulate the following:(a) In the new sectors covered by the Union, the

Court must have powers identical to those which it hasat present, so as to be able to interpret the law of theUnion, to annul the acts of the institutions not in ac-cordance with the Treaties and to point out when theMember States fail to comply with their obligations;(b) Individuals must also be able to appeal directly tothe Court of Justice against an act of one of the insti-tutions of the Union infringing their basic rights;

(c) Once European Union has gained its own mom-entum we should examine whether the Communitycurrent legal system can be improved or extended: theCourt has made proposals about this.

F. Other Community bodies

1. In Chapter III of this report I indicated howthe activities of the Standing Committee on Em-ployment should develop. This development is inline with the need to introduce into the institu-tions of the Union elements of concertation andworker participation in decision making withwhich we are familiar in all our States.

2. The Economic and Social Committee which ismade up differently, must carry on its work. Thisis of considerable service to the Community,since it draws representatives from various socio-professional categories into common policy mak-ing. It must be regularly consulted on the dev~elopment of economic and social policy, on con-

sumer protection and on the abolition of techni-cal barriers to trade.

3. The important role played by the Committeeof Permanent Representatives (Coreper) in the deci-

sion-making machinery of the Community mustbe officially recognized in the European Union. suggest that when at Core per level there is a consensusbetween the member countries and the Commissionon a decision to be taken it should be taken at this levelon the authority of the Council. Today these deci-sions are passed up to the next Council meetingwhich approves them without discussion (in theform of ' A points ; this procedure is legal redtape which we can do without.

The Permanent Representatives must be effectiv-ely involved in proposals on European policy intheir own countries, so as to become theindis-pensable bond between the formation.of nationalpoints of view and the process of joint decisionmaking.

4. The Political Committee has proved how ef-fective it is in preparing the diplomatic discus-sions of Ministers. The creation of a single deci-sion-making centre in the form of the Councilmust not change either its powers or its compo-sition.

I find however that the pragmatic developmentof the organs of political cooperation has chieflybeen designed to work out common positions ontopical problems. Weare equipped to react ratherthan to act. In order to adapt to a situation wherethere will be much scope for joint action on ex-ternal policy the Ministers of Foreign Affairs willhave to see that the existing machinery is im-proved.

5. The construction of Europe must take intoaccount the general trend towards administrativedecentralization which exists in all our countries.The institutions of the Union will have to makesure that specialized executive bodies are set upas required to take on specific tasks. These bodieswill require flexible rules enabling them to oper-ate individually and responsibly under the aegisof the institutions.

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G. The delegationof executive power

The effectiveness of an institutional system doesnot just depend on the powers which are confer-red on the institutions but also on the way inwhich they are exercised.

In this field there is one principle which I feel isessential if weare to have European Union: thatof the delegation of executive power. Delegationmust become the general rule if we wish to dev-elop that degree of efficiency which is vital to theinstitutional system. It is both necessary as a toolof common action and as a visible external signof our solidarity.

As to the principle of delegation I propose that should act as follows:(a) All policy worked out in common should normallybe implemented by a body or a person empowered todo so;(b) Consequently every decision should specify theappropriate executive body;

(c) This executive body should have at its disposal,within the framework of a common policy, the neces-sary freedom of action to carry out its mandate prop-erly.

The practice of delegation should apply particularly tothe Council. Because of the increase in common tasksthe Council, ifit is to be efficient, must concentrate onits decision-making role and adopt the following mea-sures:(a) in the Community sector:

use Article 155 of the Treaty as described in D.

above;delegate some of its power to Coreper as described

in F. above;

(b) in the non-Community sector:

grant real delegation of power, going beyond therole of a mere spokesman, for the daily application ofpolicies worked 'out together;

enhance the role of the Presidency for this pur-pose;

use, when circumstances so dictate, the States andtheir diplomatic machinery as authorized agents of theUnion;

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make considerable use of the Community institu-tional machinery which Europe already possesses.

The distinction between what does and whatdoes not fall within the scope of the Communitycannot be maintained in an absolute fashion atthe executive stage nor at the decision-making

stage.

The existence of a single decision-making centresupplemented by the principle of the delegationof executive power will enable us politically tomake the best use of the available executivebodies, while still adhering to the Treaties, andwill give our action the flexibility necessary todeal with complex situations.

ConclusionThe qualitative change connected with EuropeanUnion and emphasized in each of the chapters ofthis report is also found in the institutional field.It does not imply an upheaval of the existing in-stitutional framework. But it does mean increas-ing its authority, its efficiency, its legitimacy andits coherence.

Much that is already under consideration withinthe Community points in this direction , in partic-ular direct elections to the Parliament and thecompletion of the system of own resources whichwill be in force before 1980. As provision has al-ready been made for these I did not think there

was any point in dealing with them here, but Iwant to emphasize their significance and theneed for them.

The enhancement of the role of the EuropeanCouncil and the Parliament , the exten$ion of theuse of majority decision-making and thecoordi-nation of the Council's activities, the increasedinfluence and cohesion of the Commission, the

delegation of executive power, are essential mea-sures which must be taken immediately if Euro-pean Union is to progress.

In the last resort the institutional framework willreflect the spirit behind it. It is the political con-sensus of our States described in the first chapterof this report which must give new life to thecommon institutions. The belief that the Union

is vital and necessary will enable us to overcomeconflicts of interest and differences of opinion.The resolve to achieve Union will bring us togive the necessary powers to the common insti-tutions. Without this political kiss of life the in-stitutions of the Union will always lack substanceand force.

VI. General conclusion

This report attempts to give an overall picture ofthe European Union and of the means of achiev-ing it. The conclusions reached therein have beengiven i~ the. preceding chapters.

The task of our Governments and of the European in-stitutions consists:

in the first place, in arriving at a political consensuson the aims and main features of the Union in termswhich give expression to the deep aspirations of our

peoples;then, in determining the consequences of this

choice in the various areas of the Union s internal andexternal activities;

in setting in motion, by positive action in each ofthose fields, the dynamic process of attaining theUnion under conditions which give new credibility tothe European undertaking;

in strengthening the institutional machinery toenable it to cope with the tasks awaiting it.

The progress achieved as a result will graduallytransform the nature and intensity of relationsbetween our States. It is foreseeable that otherEuropean democratic States will want to join theundertaking. This will be open to them , on con-dition that they accept the overall view of theEuropean Union as well as the constraints impos-ed by its gradual creation. New accessions mustnot slow down the development or the Unionnor jeopardize it.

The attainment of the European Union will cer-tainly not be easy. It is, however, essential anddeserves the support of everyone.

For thirty years the relative weight and Influenceof our States in the world has been continuallyreduced. In step with this, the national govern-ments ' hold over the means that make it possibleto influence the future of our societies has con-stantly diminished. Both internally and exter-nally, the room for manreuvre of the . individualStates has decreased. They attempt to maintaintheir balance in the face of pressures and factors

internal as well as external , which are outsidetheir control. The danger of the effects of thistwo-fold spiral of impotence is great; it leads

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from weakness to dependence, which itself is asource of further losses.

The construction of Europe is the only all-inclu-sive answer to this challenge; it derives sponta-neously from the will of our peoples as embodiedin the work of the Founding Fathers of E1,lrope.It is the only answer which seeks everywhere toregain some of the control and power which isslipping from us, and to enable us to build thesociety in which we want to live.

The establishment of the Community was thefirst stage of this historic undertaking. The Eu-ropean Union which will extend our joint actionto new sectors and reveal more clearly the con-cept of society that it implies is the stage that fol-lows. This is how it must be understood andachieved.

At a time when unemployment and inflation arerampant in all our countries, where everyonequestions the causes of the weakness of our

economic and political structures, and when theprosperity of Europe depends on factors outsideour control , the European effort must leave no-one indifferent. Each of us must participate inthe common effort in order that we may togetherregain an adequate grip on the economy and oninflation to ensure orderly growth , that we maytogether shape a more just society in which ourcommon values are observed, and make ourvoice heard in the world with the power of unionbehind it. On that , in the end, will depend to-morrow our way of life and that of our children.

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Notes

I Point 16 of the Final Communique. Bull. EC 10-1972, Part! , Chapter I.2 Point 13 of the Communique. Bull. EC 12-1974, point 1104.3 Second Report on European Political Cooperation on Foreign Policy. Bull. EC 9-1973

point 1201.4 Bull. EC 11-1975, point 1104.5 Bull. EC 12-1973, point 2501.6 Point 8 of the Final Communique of the Hague Conference. Bull. EC H 970, Part IChapter I. 7 'Report of the Study Group ' Economic and Monetary Union 1980' , Brussels 1975.8 Point 14 of the Communique. Bull. EC 12-1974, point 1104.9 Points i to 4 of the Communique. Bull. EC 10-1972, Part I , Chapter I.10 Supplement to Bull. EC 11-1970.11 Resolution of the Council and of the Representatives of the Governments of the Member

States of 22 March 1971 on the attainment by steps of Economic and Monetary Union inthe .Community. OJ Special Edition, 2nd series , IX (January 1974).

* These notes are presented solely on the responsibility of the Secretariat-General of the Commission of the European Communities.

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