Bulletin OF THE EUROPEAN COMMUNITIES. No 1 1979 12th year

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ISSN 0378-3693
Bulletin
OF THE EUROPEAN
COMMUNITIES
Commission
No 1 1979
12th year The Bulletin of the European Communities reports on the activities of the
Commission and the other Community institutions. It is edited by the
Secretariat-General of the Commission (rue de la Loi 200, Β-1049
Brussels) and published eleven times a year (one issue covers July and
August) in the official Community languages and Spanish.
Reproduction is authorized provided the source is acknowledged.
The following reference system is used: the first digit indicates the part
number, the second digit the chapter number and the subsequent digit or
digits the point number. Citations should therefore read as follows:
Bull. EC 1 -1979, point 1.1.3 or 2.2.36.
Supplements to the Bulletin are published in a separate series at irregular
intervals. They contain official Commission material (e.g. communications
to the Council, programmes, reports and proposals). The Supplements do
not appear in Spanish.
Printed in Belgium BULLETIN
OF THE
EUROPEAN
COMMUNITIES
European Coal and Steel Community n Economic Community
European Atomic Energyy
Commission of the European Communities
Secretariat-General
Brussels
No 1
1979
Sent to press in February 1979. 12th year Contents
SPECIAL
PART ONE FEATURES
1. Agricultural prices for 1979/80: Commission proposes a price
standstill 7
2. Energy: The Community's external policy — Commission Com­
munication to the Council 11
ACTIVITIES
PART TWO IN JANUARY 1979
1. Building the Community 18
— Economic and monetary policy
— Internal marketand industrial affairs 21
— Customs union 24
— Competition5
— Financial institutions and taxation 30
— Employment and social policy2
— Regional policy 3
— Environment and consumer protection
— Agriculture7
— Fisheries8
— Transport 40
— Energy1
— Research and development, science and education .... 43 2. Enlargement and external relations 47
— Accession negotiations
— Bilateral relations with applicant countries
— Commercial policy8
— Development policy 51
— International organizations5
— Relations with certain countries and regions 57
— Political cooperation 62
3. Institutional and political matters
— Institutions and organs of the Communities 6
• Parliament
• Council 79
• Commission
• Court of Justice 81
•t of Auditors6
• Economic and Social Committee
• ECSC Consultativee
• European Investment Bank 90
— Financing Community activities2
PART THREE DOCUMENTATION
1. Units of account 96
2. Additional references in the Official Journal 98
3. Infringement procedures " 100
4. Eurobarometer 10
Publications of the European Communities Supplements 1979
1 /79 European Union — Annual reports for 1978 Standardized abbreviations for the designation of certain monetary units in the different languages of
the Community:
BFR = Belgische frank/Franc beige
LFR = Franc luxembourgeois
DKR = Dansk krone
FF = Franc français
DM = Deutsche Mark
LIT = Lira italiana
HFL = Nederlandse gulden (Hollandse florijn)
UKL = Pound sterling
IRL = Irish pound
USD = United States dollar 1. Agricultural
prices for 1979/80
Agricultural prices
the falling value of the dollar and the ample Commission proposes
supplies on world markets.
a price standstill
High levels of output, higher nominal agricul­
tural support prices in all countries and the
1.1.1. A price standstill in units of account much slower rate of inflation combined to
is the centrepiece of the Commission's pack­ have a beneficial effect on real agricultural
age of 1979/80 agricultural price proposals. incomes. Real agricultural income measured
The package—sent to the Council late in in terms of gross value added at factor cost
January— also includes proposals for a com­ increased by more than 3% in 1978, exclud­
plete remodelling of the coresponsibility levy ing potatoes, or by 1.6%, including potatoes.
in the milk sector, reduced quota arrange­ On average over a number of years, real
ments for sugar, new lines for the develop­ agricultural incomes have increased each year
ment of farm structures policy, adaptations in at a slightly faster rate than those in the rest
currency rates and a permanent system for of the economy.
the dismantling of monetary compensatory
But another element in the agricultural amounts (MCAs), after the introduction of
economy in 1978 was in contrast to this the European Monetary System.
satisfactory evolution of farm incomes. The
The economic background to the price pack­
degree of imbalance in several major markets
age is one of continued gradual recovery
worsened during the year, despite an
from the recession of 1977, with a growth
increased sales effort within the Community
rate of real gross domestic product of bet­
and on world markets.
ween 2V2 and 3% in 1978. The agricultural
economy, however, was characterized by a The increase in milk output was not matched
considerable growth of output for many by increased demand for milk and milk pro­
important products (the cereals harvest of ducts and imposed an extra budgetary strain.
Spending on milk support doubled between 1978 was a record 116 million tonnes, 11%
up on 1977; milk production was more than 1973 and 1977. In the sugar sector, the Com­
4% up and sugar output was 1.7% higher munity will have an exportable surplus of
than in 1977). more than 2V2 million tonnes in 1978/79.
The record cereals harvest means that for the
These high levels of output were achieved on
present cereals year, the Community is more
the basis of nominally increased agricultural
than 100% self-sufficient.
price support—the modest rise in unit of
account prices in the 1978/79 price fixing The imbalance on many agricultural markets
coupled with green rate adaptations meant is the reason for the Commission's proposal
that real support prices were maintained or for a price Standtill in units of account.'
increased for over 60% of agricultural There are no significant exceptions and only
output. certain small changes associated with changes
in regime or quality, for example for colza,
Agriculture was also helped by a lower infla­
linseed and rye.
tion rate in the general economy. The rate of
increase of input prices slowed down in 1978
for the third year in succession, being 4%
against 10% in 1977. Prices for some inputs
(animal feed) even decreased, on account of Bull. EC 5-1978, point 2.1.69.
Bull. EC 1-1979 Agricultural prices Agricultural prices
Special measures (iii) plans to continue special disposal
for milk and sugar schemes for liquid skimmed milk and skim­
med-milk powder and 'reduced price' sales of
butter; 1.1.2. The price standstill in units of
account will be buttressed for the milk and
(iv) a proposal to increase the Community
sugar markets by other measures. In the
contribution to the cost of general butter sub­
sugar sector, the Commission has repeated its
sidies to a ceiling of 75%, and a maximum
proposal to reduce the size of the 'B' quota Community contribution of 42 u.a./100 kg.
by about 500 000 tonnes. In the milk sector it
is proposing a whole package of measures.
The main item in the milk package is a prop­ New guidelines
osal for a completely remodelled coresponsi- for structural policy
bility levy, which would be variable in line
with milk deliveries to dairies. The new-look
1.1.3. The Commission's view, however, is
levy would have a minimum rate of 2% of
that not all of the problems facing the com­
the target price. It will be reviewed three
mon agricultural price policy can be solved
times a year and will be fixed at twice the
by price policy alone and to attempt to do so
percentage change in milk deliveries (for
would merely create fresh difficulties. For this
example, an increase of 1.5% in milk
reason, the Commission is proposing to push
deliveries would give rise to a coresponsibility
ahead with its reform of structural policy.
levy of 3%).
The aim is to adapt the existing policy
—which was conceived and enacted at a time
The Commission proposes to exempt small,
of economic growth—to take account of
full-time farmers from the levy. On the basis
changed economic conditions.
of the present proposals, almost 30% of the
Community's dairy farmers producing about
The Commission plans to pursue change
12% of the milk will be excluded.
along three lines. It wants to make a stronger
link with market conditions and stop the The funds derived from the coresponsibility
investment of public money in pig production levy would be pumped back in the form of
and in glasshouses, besides the milk sector. It lower prices or other benefits for consumers
wants to give priority to the areas and to far­(including in the case of animal feed, live­
mers with the greatest needs. A start was stock farmers). The funds would be used
made last year wi