THE EUROPEAN COUNCIL

MAASTRICHT23-24 MARCH 1981

Documents in the dossier include:

ConclusionsSession of the European Council

Reproduced from The European CouncilDossier ofthe Group ofthe European People s Party

Luxembourg 1990

Maastricht European CouncilReproduced from the Bulletin ofthe European Communities, No. 3/1981

Meeting of the European Council in MaastrichtEuropean Community News No. 11/1981European Community Information Service

Washington DC

CONCLUSIONS OF THE SESSIONS OF TIlE EUROPEAN CODNCR.. (1975 - 1990)Maastric:ht, 23 and 24 March 1981

Session of the European Council

Maastricht, 23 and 24 March 1981

Conclusions

Economic and social situation

The European Council devoted a considerable part of its meeting to a detailed and searchingreview of the present state of the European Community.

There was Ui1animous agreement that in the present difficult economic conditions the

Community remains an essential achievement and an indispensable instrument for limiting the ef-fects of the recession and bringing about the return, on a sound and stable .......;;S, of sustained eco-

nomic growth and satisfactory levels of employment. To achieve this puIpose and reduce the levelof inflation the European Council concluded that the continuation of prudent monetary policies, ahealthy budgetary management, and the reorientation of public and private expenditure in the di-rection of productive investment are major elements. The European Council expressed the viewthat the reinforcement of the economic structure of the Member States requires an effort that mustbe maintained over a number of years and that short-term demand stimuli will turn out to beineffective.

The European Council welcomed the recent economic measures taken by the Governments ofsome member countries.

In the field of monetary policy, an intensification of the dialogue with the United States ofAmerica is desirable, in particular with a view to achieving a concerted attitude on monetary poli-cy and interest rates. The European Council requested the Council (Ministers of Finance) to act ac-cordingly and also to pursue its wor~ with a view to making the best possible use of themechanisms of the European Monetary System.

High and divergent inflation rates are a threat both to the prospects of growth and to the eco-nomic and monetary cohesion of the Community. In this context the European Council also dis-cussed the effects caused by rigid systems of indexation of incomes and expressed the opinion thatan adjustment of such mechanisms should be considered.

The high and rising rates of unemployment, especiaUy among youth, are a cause of deepconcem to the European Council. It was agreed that the fight against this evil should be conducted,not only by the Member States, but also at the Community level. The basic requirement for a gene-

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CONCLUSIONS OF THE SESSIONS OFTIffi EUROPEAN COUNCIL (1975 - 19'10)

Maastricht, 23 and 24 March 1981

ral turn for the better lies in the recovery of the employment situation in the private sector. A last-ing improvement in this situation requires a structural reinforcement of the European econom

through cost restraint and a rise in productive investments and productivity. The European Councilconsiders that in the present situation intensive consultation with the social partners is of vital im-portance.

In this context the Eill.'opean Council recalled its earlier conclusion with regard to the JointCouncil of Ministers of Economic Affairs, Fin.ance, Social Affairs and Employment to considergeneral economic and social problems and in particular unemployment. It stressed its convictionthat a thorough preparation of such a Council meeting is of the highest importance.

The pursuit of a coherent energy policy remains of great importance for the reinforcement ofthe Eill.'opean economy. Reduction of dependence on imported oil and the utilization of alternativefuels are vital to employment and the balance of payments.

With regard to the future development of the Community, proposals on the restructuring ofCommunity policies in accordance with the decisions taken on 30 May 1980 will be presented intime for consideration at the Eill.'opean Council's next meeting. '

The European Council has discussed the problems of fisheries. It expressed concern at thefailure to reach agreement because of its effects on European integration and on those who workin the fisheries sector. It therefore invited the Council (Ministers of Fisheries) to meet this week toresolve the problems.

The European Council requested the Council (Ministers of Agriculture) to continue and to in-tensify its discussions on the proposals on agricultill.'al prices and economies for 1981/82 with the

will to reach agreement by I April 1981.

The development of other Community policies remains an urgent task if the Communityviability is to be assured in the longer term and if the goals of economic convergence are to bereached

With regard to industry, coordinated efforts should be made to foster the development ofhigh-tedmology and innovative enterprises in order to increase the competitive strength of the Eu-ropean economy. Restructuring of industries should be allowed to proceed in an orderly fashionwith due regard to the maintenance of conditions of fair competition and to the.social aspects.

Member States should refrain from engaging in a competitive escalation of State aid to indus-

try which would, in the end, be self-defeating and destructive. In particular, the restructuring of thesteel industry is a priority objective. The European Council supports all the elements of the conclu-sions of the Council (Industry) on 3 March. It stresses particularly the need to maintain the unity ofthe market, by scaling down and gradually eliminating the State aid and by reducing less com-

petitive capacities.

The Community can further contribute to economic recovery by fully utilizing existing me-chanisms for policy coordination and by ensuring that the existing funds and financial mechanismscontribute as much as possible to agreed social and economic objectives and the reduction ofunemployment. Particular attention should be given in this context to the possibilities of providingadvanced technological training and education fOf youth.

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CONCLUSIONS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Maastricht. 23 and 24 March 1981

The European Council believes that in so doing the European Community can successfullytrdveJ:Se the period of economic recession and contribute significantly to the rem;:'. of more fllvou-

mble conditions.

Spain

The European Council expressed its great satisfaction at the reaction of the King, Govern-ment and people of Spain in the face of the attacks recently made against the democratic system oftheir country.

This reaction strengthens the political structures which will enable a democratic Spain to ac-cede to the democratic community represented by the European Community.

North-South relations

The European Council stressed and reconfirmed the advantage of the opening of concrete ne-gotiations between the industrialized countries and the developing countries with regard to seriousinternational economic problems. With an eye to this and to the international conferences foreseen,the .European Council instructed the General Affairs Council to examine the Commission prop-osals on Community policy in the North-South dialogue and to report to it at its next meeting inJune.

European passport

The European Council expressed its satisfaction with the .substantial progress recently madewith regard to the introduction of a European passport.

Seat of the institutions

The Heads of State and of Government decided unanimously to confirm the status quo in re-gard to the provisional places of work of the European institutions.

Middle East

The European Council took note of the interim report by Mr CA. van der Klaauw , the Presi-

dcllt-in-Office, on the initial results of the Middle East mission which he is at present canying outon behalf of the Ten on the basis of the Venice Declaration of 13 June 1980 and the LuxembourgDeclaration of 2 December 1980. The Council noted with satisfaction the welcome given to themission to date and considered as encouraging the attention and interest with which the parties sofar consulted viewed the European efforts.

In the light of the consultations Mr van der Klaauw will hold during the weeks to come, afinal report will be presented to the meeting of the European Council on 20 and 30 June 1981.

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CONCuUSIONSOFTHESESSJONSOFTHEEUROPEAN COUNCIL (1975 - 19'JO)

Maastricht, 23 and 24 March 1981

Lebanon

The European Council notes with great concern the latest developments in southern Lebanonwhich have led to the tragic deaths of three Nigerian Unifil soldiers stationed therein the cause offeeatablisrung peace and sccurity in the region.

As the European Council bas stated on many occasions, the independence, sovereignty andterritorial integrity of Lebanon must be fully respected

The European Council considers that only the complete implementation of Unifil 's mandateCan create the conditions necessary for a progressive return of the south of the country to Lebanesesovereignty.

In onler to enable Unifil to carry out its mandate in its entire area of OpeIations up to the inter-nationally recognized boundaries, the ten Member States ofthe European Community, some ofwhich contribute troops to Unifil, call for the immediate and full coopeIation of all interestedparties.

In this connection, the European Council supports the statement made on 20 March 1981 bythe current President of the Security Council warning against the placing of any obstacle in theway of the efforts of Unifil to discharge its mandate in full.

Afghan istan

The European Council notes with grave concern that the military operations by Soviet troopsagainst the Afghan people, who are resisting this external interference, continue without interrup-tion. The tragic course of events in Afghanistan constitutes a severe ordeal for the Afghan peopleand expresses itself in the form of a massive flood of refugees who are a heavy bunlen for neigh-bouring countries, in particular for Pakistan. The developments in Afghanistan remain a threat tothe stability of relations in the region and worldwide.

In face of the situation resulting from the Soviet invasion of Afghanistan, the European Coun-cil has ca1Jed many times, and in particular at its meeting in Venice in June 1980, for respect forthe sovereignty and territorial integrity of Afghanistan and for an cnd to all interference in the in-ternal affairs of that country. The Council has stated on many occasions the need for a solutionwhich entails the withdrawal of foreign troops from Afghanistan and which permits the Afghan

people to exercise freely their right to self-determination, and for Afghanistan thus to return to itstraditional status as an independent State. neutral and non-aligned

'The European Council supports any initiative which could lead to the desired result and wel-comes in particular the initiative which was the subject of the resolution of the United Nations of20 November 1980, and that put forward recently by France.

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CONCLUSIONS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Maastricht, 23 and 24 March 1981

Poland

The European Council reaffirms its position on Poland as expressed in its statement of 2 De-cember 1980. This statement is as valid today as it was then.

The Council notes that Poland has shown that she is capable of facing her internal problemsherself in a spirit of reasOn .and responsibility. It is in the interest of the Polish people that Polandshould continue to do so in a peaceful manner and without outside interference. It is also in the in-terest of stability in EuJ'Qpe.

The Council is following recent developments in Poland with great concern. It underlines theobligation of all States signatory to the Helsinki Final Act to base their relations with Poland onthe strict application of the Charter of the United Nations and the principles of the Final Act.

It emphasizes that any other attitude would have very serious consequences for the future ofinternational relations in Europe and throughout the world.

The European Council heard a report by Mr Genscher on his recent visit to Poland.

The European Council.recalls that the Ten have already responded, both individually and inthe Community framework, to the Polish request for economic support. They are disposed, withinthe limits of their means and in collaboration with others, to continue their contribution to therecovery of .the Polish economy so as to complement the effort of the Polish people itself.

Having regard to the present situation, the European Council expressed understanding for thePolish wishes for extra food supplies. It requested the Commission and the Council, in agreementwith the partner countries which are already taking part in the Paris discussions, to examine thesewishes as soon as possible. It called on the Council, the Commission and the Member States to de-cide on their participation in this action as .& matter of urgency.

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Maastricht European Council

1. On 23 and 24 March the EuropeanCouncil met in Maastricht, in the Dutch pro-vince of Limburg, with Mr van Agt, PrimeMinister of the Netherlands and President ofthe Council .and of political cooperation, in

the chair. The Commission was representedby Mr Thorn and Mr Ortoli.

This was the first European Council formallyattended by the Heads of State or of Govern-ment of the now ten Member States, sinceGreece had joined the Community on 1 Janu-ary and took part in the proceedings on thesame footing as the other Member States.The Greek Prime Minister had in factattended the Luxembourg European Councilon 1 and 2 December 1980, but withobserver status only when specifically Com-munity matters were discussed. 1

In Maastricht, Community problems domi-nated the discussions, reflecting th~ desire togive .a political fillip to the search for agree-ment on a number of difficult issues, such asfisheries, steel and certain aspects of the1981/82 farm price review, and raising hopeswhich subsequent Council meetings oftenfailed to fulfil. International affairs were alsoto the fore, under the 'political cooperationhead, and these were, as expected, the subjectof a number of declarations: on Poland,Afghanistan and the Middle East.

The Commission had made its usual con-tribution to the preparations by providing theEuropean Council with a series of papers tofacilitate or guide its discussions. Major pap-ers covered the economic, social and financialsituation, preparations for a joint meeting ofFinance and Social Affairs Ministers, com-mercial relations between the Communityand the United States and Japan, and theNorth-South Dialogue. In addition, the scenewas set for this Maastricht European Councilby several bilateral meetings between Headsof Government of Community countries, vis~

its to the United States by representatives offour Member States, the talks that MrGenscher, the German Foreign Minister, hadin Moscow, and the circuit of the Communi-

s capitals made by Mr Thorn, President ofthe Commission, on taking office.

Bull. EC 3- 1981

The participants were not of one mind as tothe interpretation to be put on the outcomeof this European Council; at all events theuncompromising attitude of the British PrimeMinister seems to have provoked a degree ofirritation and misgivings for the future insome of the delegations.

Results

2. The Community topics dealt with atthe Maastricht meeting and the outcome ofthe discussions are set out in a summaryissued by the Presidency; this is accompaniedby the political cooperation declarations.

Community matters:the Presidency s summary

1.1.3. The following is the full text of thesummary issued by the Presidency to thenational delegations and made public afterthe meeting. It deals primarily with various

aspects of the economic and social situationand the prospects for the future on that front.

Economic and social situation

1.4. The European Council devoted a consider-able part of its meeting to a detailed and searchingreview of the present state of the European Com-munity. There was unanimous agreement that in the pre-sent difficult economic conditions the Communityremains an essential achievement and an indis-pensable instrument for limiting the effects of therecession and bringing about the return, on asound and stable basis, of sustained economicgrowth and satisfactory levels of employment. Toachieve this purpose and reduce the level ofinfla-tion the European Council concluded that the con-tinuation of prudent monetary policies, a healthybudgetary management, and the reorientation ofpublic and private expenditure in the direction ofproductive investment are major elements. TheEuropean Council expressed the view that thereinforcement of the economic structure of theMember States requires an effort that must be

Bull. EC 12-1980, point 1.1.1.

European Council

maintained over a number of years and that short-term demand stimuli will turn out to be ineffec.tive.

The European Council welcomed the recenteconomic measures taken by the Governments ofsome member countries.

In the field of monetary policy, an intensificationof the dialogue with the United States of Americais desirable, in particular with a view to achievinga concerted attitude on monetary policy and inter~est rates. The European Council requested theCouncil (Ministers of Finance) to .1ct accordinglyand also to pursue its work with a view to makingthe best possible use of the mechanisms of theEuropean Monetary System.

High and divergent inflation rates are a threatboth to the prospects of growth and to theeconomic and monetary cohesion of the Commun-ity. In this context the European Council also dis~cussed the effects caused by rigid systems of index-ation of incomes and expressed the opinion thatan adjustment of such mechanisms should be con~sidered.

The high and rising rates of unemployment, espe-cially among youth , are a cause of deep concern tothe European Council. It was agreed that the fightagainst this evil should be conducted, not only bythe Member States, but also at the Communitylevel. The basic requirement for a general turn forthe better lies in the recovery of the employmentsituation in the private sector. A lasting improve~ment in this situation requires a btructural rein-forcement of the European economy through costrestraint and a rise in productive investments andproductivity. The European Council considers thatin the present situation intensive consultation withthe social partners is of vital importance.

In this context the European Council recalled itsearlier conclusion with regard to the joint Councilof Ministers of Economic Affairs, Finance, SocialAffairs and Employment to consider generaleconomic and social problems and in particularunemployment. It stressed its conviction that athorough preparation of such a Council meeting isof the highest importance.

The pursuit of a coherent energy policy remains ofgreat importance for the reinforcement of theEuropean economy. Reduction of dependence onimported oil and the utilization of alternative fuelsare vital to employment and the balance of pay-ments.

With regard to the future development of theCommunity, proposals on the restructuring ofCommunity policies in accordance with the deci.sions taken on 30 May 19801 will be presented in

time for consideration at the European Council'snext meeting.

The European Council has discussed the problemsof fisheries. It expressed concern at the failure toreach agreement because of its effects on Europeanintegration and on those who work in the fisheriessectOr. It therefore invited the Council (Ministersof Fisheries) to meet this week to resolve the prob~lems.

The European Council requested the Council(Ministers of Agriculture) to continue and tointensify its discussions on the proposals onagricultural prices and economies for 1981/822with the will to reach agreement by 1 April 1981.J

The development of other Community policiesremains an urgent task if the Community s viabil-

ity is to be assured in the longer term and if thegoals of economic convergence are to be reached.

With regard to industry, coordinated effortsshould be made to foster the development of high-technology and innovative enterprises in order toincrease the competitive strength of the Europeaneconomy. Restructuring of industries should beallowed to proceed in an orderly fashion with dueregard to the maintenance of conditions of faircompetition and to the social aspects.

Member States should refrain from engaging in acompetitive escalation of State aid to industry

which would , in the end, be self-defeating and des-tructive. In particular, the restructuring of the steelindustry is a priority objective.4 The European

Council supports all the elements of the conclu~sions of the Council (Industry) on 3 March.' Itstresses particularly the need to maintain the unityof the market, by scaling down and graduallyeliminating the State aid and by reducing less com-petitive capacities.

The Community can further contribute toeconomic recovery by fully utilizing existingmechanisms for policy coordination and by ensur-ing that the existing funds and financial mechan-isms contribute as much as possible to agreedsocial and economic objectives and the reductionof unemployment. Particular attention should begiven in this context to the possibilities of provid-ing advanced technological training and educationfor youth.

OJ C 158 27. 1980 (Council conclusions of 30 May1980, para. 7); Bull. EC 5-1980, points 1.1.1 to 1.1.18.

Bull. EC 2-1981 , points 1.2. 1 to 1.2. , point 2. 1.42and Table 3.

Points 2. 1.64 to 2. 1.104.Bull. EC 2- 1981 , poims 1.4. 1 to 1.4. 11.Points 2. 1.15 and 3.4.

Bull. EC 3- 1981

European Council

the European Council believes that in so doingthe European Community can successfully traversethe period of economic recession and contributesignificantly to the return of more favourable con~

ditions.

Spain5. The European Council expressed its great

satisfaction at the reaction of the King, Govern-ment and people of Spain in the face of the attacksrecently made against the democratic system oftheir country.This reaction strengthens the political structureswhich will enable a democratic Spain to accede tothe democratic community represented by theEuropean Community.

North-South relations

6. The European Council stressed and recon-firmed the advantage of the opening of concrete

negotiations between the industrialized countriesand the developing countries with regard to seri~ous international economic problems. With an eyeto this and to the international conferences fore-

seen, the European Council instructed the GeneralAffairs Council to examine the Commission prop-osals on Community policy in the North-SouthDialogue1 and to report to it at its next meeting in

June.

European passport

7. The European Council expressed its satis-faction with the substantial progress recently madewith regard to the introduction of a Europeanpassport.

Seat of the institutions

8. The Heads of State and of Governmentdecided unanimously to confirm the status quo

regard to the provisional places of work of theEuropean institutions.

Political cooperation: declarations

9. The European Council adopted thefollowing declarations on international mat-ters discussed in the political cooperationcontext.

Middle East

10. The European Council took note of theinterim report by Mr CA. van der Klaauw, the

President in Office, on the initial results of the

Bull. EC 3- 1981

Middle East mission which he is at present carry-ing out on behalf of the Ten on the basis of theVenice Declaration of 13 June 19802 and the Lux-embourg Declaration of 2 December 1980.3 The

Council noted with satisfaction the welcome givento the mission to date and considered as encourag-ing the attention and interest with which the par-ties so far consulted viewed the European efforts.

In the light of the consultations Mr van derKlaauw will hold during the weeks to come, afinal report will be presented to the meeting of theEuropean Council on 20 and 30 June 1981:

Lebanon

11. 'The European Council notes with greatconcern the latest developments in southern Leba-non, which have led to the tragic deaths of threeNigerian UNIFIL soldiers stationed there in thecause of re-establishing peace and security in theregion.

As the European Council has stated on many occa-sions, the independence, sovereignty and territorialintegrity of Lebanon must be fully respected.

The European Council considers that only thecomplete implementation of UNlFIL's mandate

can create the conditions necessary for a progres-

sive return of the south of the country to Lebanesesovereignty .

In order to enable UNIFIL to carry out its man-date in its entire area of operations up to the inter-nationally recognized boundaries, the ten MemberStates of the European Community, some of whichcontribute troops to UNIFIL, call for the immedi-ate and full cooperation of all interested parties.

In this connection, the European Council supportsthe statement made on 20 March 1981 by the cur-rent President of the Security Council warningagainst the placing of any obstacle in the way ofthe efforts of UNIFIL to discharge its mandate infull:

Afghanistan

12. 'The European Council notes with graveconcern that the military operations by Soviettroops against the Afghan people, who are resist-ing this external interference, continue withoutinterruption. The tragic course of events inAfghanistan constitutes a severe ordeal for the

Afghan people and expresses itself in the form of amassive flood of refugees who are a heavy burden

Points 1.2. 1 to 1.2.Bull. EC 6-1980, point 1.1.6.Bull. EC 12- 1980, point 1.1. 13.

European Council

for neighbouring countries, in particular for Pakis-tan. The developments in Afghanistan remain a

threat to the stability of relations in the region andworldwide.In face of the situation resulting from the Soviet

invasion of Afghanistan, the European Council hascalled many times, and in particular at its meetingin Venice in June 1980,1 for respect for thesovereignty and territorial integrity of Afghanistanand for an end to all interference in the internalaffairs of that country. The Council has stated onmany occasions the need for a solution whichentails the withdrawal of foreign troops fromAfghanistan and which permits the Afghan people

to exercise freely their right to self-determinationand for Afghanistan thus to return to its tradi-tional status as an independent State, neutral andnon-aligned.The European Council supports any initiativewhich could lead to the desired result and wel~comes in particular the initiative which was thesubject of the resolution of the United Nations of20 November 1980, and that put forward recentlyby France.'

Poland

13. 'The EuropeanCouncil reaffirms its posi-tion on Poland as expressed in its statement of 2December 1980.2 This statement is as valid todayas it was then.The Council notes that Poland has shown that sheis capable of facing her iitternal problems herselflna spirit of reason and responsibility. It is in theinterest of the Polish people that Poland shouldcontinue to do so in a peaceful manner and with-out outside interference. It is also in the interest ofstability in Europe.

The Council is following recent developments inPoland with great concern. It underlines the obli-gation of all States signatory to the Helsinki Final

Act to base their relations with Poland on thestrict application of the Charter of the UnitedNations and the principles of the Final Act.

It emphasizes that any other attitude would havevery serious consequences for the future of inter-national relations in Europe and throughout theworld.The European Council heard a report by MrGenscher on his recent visit to Poland.The European Council recalls that the Ten havealready t:esponded, both individually and in theCommunity framework, to the Polish request foreconomic support) They are disposed, within thelimits of their means and in collaboration withothers, to continue their contribution to the recov-ery of the Polish economy so as to complement theefforts of the Polish people itself.

Having regard to the present situation, the Euro-pean Council expressed understanding for the Pol-ish wishes for extra food supplies. It requested theCommission and the Council, in agreement withthe partner countries which are already taking partin the Paris discussions, to examine these wishes assoon as possible. It called on the Council, theCommission and the Member States to decide ontheir participation in this action as a matter ofurgency.

Reaction of the Commission

14. The outcome of the MaastrichtEuropean Council was reviewed at the Com:-

mission meeting on 25 March, and at a pressconference given by Mr Thorn on 27 March.

Statements by the President

15. At his press conference in BrusselsMr Thorn stated that this Council had giventhe Ten an opportunity to reflect and hadenabled them to have serious discussions anda valuable exchange of ideas, although nospectacular decisions had been reached.Mr Thorn felt that discussions on theeconomic, social and financial situation hadproved particularly helpful; the Commis-sion s background document had been veryuseful and appreciated by aU the delegations.

On fisheries, the President explained that hehad failed in his efforts at Maastricht to sepa-rate the issues of the external agreement anda common fisheries policy; the Council meet-ing on 27 March had also rejected the ideaso the problems remained linked. Neverthe-less, he felt that the atmosphere had beenmuch more relaxed than at the previousCouncil meeting, no doubt because it hadbeen recognized at Maastricht that this mat-ter had to be resolved as quickly as possible.Current expectations were for generalarrangement being agreed in the late spring.

As regards the seat of the Community institu-tions, and particularly Parliament, Mr Thornreferred to the resolutions adopted by theHouse in November 1980 and to the condu-

Bull. EC 6-1980, point 1.1.9.

Bull. EC 12- 1980, point 1.1.14.Points 1.2. 1 to 1.2.

Bull. EC 3- 1981

North-South

sions of the Maastricht. Council. He stressed

that his duty as President of the Commissionwas clear-cut: the Commission was the guar-dian of the Treaties, and as its President hewould see that they were honoured. MrThorn added that in this particularly difficulttime for the Community the question of itsseat was important enough, but that there

were much more vital matters to be attendedto.

As for the declaration on Poland, the Com-mission saw it as its number one priority togive effect to the European Council's inten-tions as regards food aid for Poland. On 27March Mr Thorn had therefore met theeconomics attache of the Polish Embassy,

Bull. EC 3- 1981

who had explained his country s needs. Thesewere being examined by the Commissionwith a view to proposals for decision beingput to the Council.1

t At its 30 March-1 April meeting the Council, recal.ling the position taken by the European Council atMaastricht, decided, in the words of the press releaseissued after the meeting, that 'in the present circum-stances and on an exceptional basis the Communitywould give Poland an opportunity of purchasing the fol.lowing products and quantities at favourable prices:sugar 50 000 tonnes, butter 10 000 tonnes, hard cheese5 000 tonnes, whole-milk powder 2 000 tonnes, skim-med-milk powder 30 000 tOnnes, meat 30 000 tonnes,edible oils 20000 tOnnes or colza seed 50000 tonnes,grains (rye, barley 200 000 tOnnes, wheat 200 000tonnes.'

European Comm un i

----

ilium IT 1'~ L 111 :11

No. 11/1981

f1arch 25, 1981

MEETING OF THE EUROPEAN COUNCIL IN MAASTRI CHT

The following is the text of the summary of the proceedingsof the European Counci 1 whi ch was hel d in Maastri cht in the

Netherl ands on March 23 - 24, 1981. The Heads of State andGovernment of the 10 member countri es of the EuropeanCommunity devoted a considerable part of their time to adetailed and searching review of the present state of theEuropean Community.

There was unanimous agreement that in the present di ffi cul t

economic conditions the Community remains an essential achievement and

an indispensable instrument for limiting the effects of the recessionand bringing about the return, on a sound and stable basis, of sustainedeconomic growth and satisfactory levels of employment. To achieve thi$purpose and reduce the level of inflation the European Council concluded

that the conti nuati on of prudent monetary pol i ci es, a healthy budgetarymanagement, and the reorientation of public and private expenditure inthe direction of productive investment are major elements. The European

Council expressed the view that the reinforcement of the economic structureof the Member States requires an effort that must be maintained over anumber of years and that short- term demand stimul i wi 11 turn out to bei neffect i ve.

The European Counci 1 welcomed the recent economi c measures takenby the governments of some member countri es.

In the field of monetary policy, an intensification of the dialoguewi th the United States of Ameri ca is des i rabl e, in parti cul ar wi th a viewto achieving a concerted attitude on monetary policy and interest rates.The European Council requested the Council (Ministers of Finance) to act

accordingly and also to pursue its work with a view to making the bestpossible use of the mechanisms of the European monetary system.

High and divergent inflation rates are a threat both to the prospectsof growth and to the economi c and monetary cohesion of the Communi ty.

In thi s context the European Counci 1 also di scussed the effects .caused byrigid systems of indexation of incomes and expressed the opinion that anadjustment of such mechanisms should be considered.

Washington office: 2100 M Street NW Washington DC 20037/ telephone (202) 862-9500/ telex 89-539 EURCOM

EUROPEAN COMMUNITY INFORMATiON SERVICENew York office: 1 Dag Hammarskj61d Plaza, 245 E 47th Street New York , New York 10017 / Telephone (212) 371-3804

- 2 -

The hi gh and ri sing rates of unemployment, especi ally among youngare a cause of deep concern to the European Council. It was agreed thatthe fight against this evil should be conducted not only by the MemberStates but also at the Community level. The basic requirement for ageneral turn for the better lies in the recovery of the employmentsituation in the private sector. A lasting improvement in this situationrequires a structural reinforcement of the European economy throughcost restraint and a rise in productive investments and productivity.The European Council considers that in the present situation intensiveconsultation with the social partners is of vital importance.

In this context the European Council recalled its earlier conclusionwith regard to the joint Council of Ministers of Economic Affairs, Finance,Social Affairs and Employment to consider general economic and soc;'alprobl ems and in parti cul ar unemployment. It stressed its convi ction thata thorough preparation of such a council meeting is of the highestimportance.

The pursuit of a coherent energy policy remains of great importancefor the reinforcement of the European economy. Reduction of dependence onimported oil and the utilisation of alternative fuels are vital toemployment and the balance of payments.

Wi th regard to the future development of the Community, proposals onthe restructuring of Community policies in accordance with the decisions takenon f'1ay 30, 1980 will be presented in time for consideration at the EuropeanCouncil I S next meeting.

The European Council has discussed the problems of fisheries. Itexpressed concern at the fai ure to reach agreement because of its effectson European integration and on those who work in the fisheries sector.It therefore invited the Council (Ministers of Fisheries) to meet this weekto resolve the problems.

The European Counci 1 requested the Counci 1 (Mi ni sters of Agri culture)to continue and to intensify its discussions on the proposals on agriculturalpri ces and economi es for 1981/82 with the wi 11 to reach agreement by !\pril 1,1981.

The development of other Community policies remains an urgent task ifthe Community s viability is to be assured in the longer term and if thegoals of economic convergence are to be reached.

With regard to industry coordinated efforts should be made to fosterthe development of high-technology and innovative enterprises in order toincrease the competitive strength of the European economy. Restructuringof industries should be allowed to proceed in an orderly fashion with dueregard to the maintenance of conditions of fair competition and to the socialaspects.

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Member States should refrain from engaging in a competitiveescalation of state aid to industry which would, in the end, be self-defeating and destructive. In particular, the restructuring of thesteel industry is a priority objective. The European Council supportsall the elements of the conclusions of the Council (Industry) onMarch 3. It stresses particularly the need to maintain the unityof the market, by scaling down and gradually eliminating the state aidand by reducing less competitive capacities.

The Community can further contri bute to economi c recovery byfully utilizing existing mechanisms for policy coordination and byens.uring that the existing funds and financial mechanism contribute asmuch as possible to agreed social and economic objectives and thereduction of unemployment. Particular attention should be given in thiscontext to the possibilities of providing advanced technological trainingand education to youths.

The European Counci 1 bel i eves that in sodoi ng the European Communitycan successfully traverse the period of economic recession and contributesignificantly to the return of more favourable conditions.

SPAIN

The European Council expressed its great sati sfacti on at the reacti of the Ki ng, Government and peopl e of Spa; n in the face of the attacksrecently made against the democratic system of the; r country. This reactionstrengthens the political structures which will enable a democraticSpai n to accede to the democrati c community represented by the EuropeanCommun i ty .

NORTH / SOUTH RELATIONS

The European Counci 1 stressed and reconfi rmed the advantage of theopening of concrete negotiations between the industrialized countries andthe developing countries with regard to serious international economicprob 1 ems. Wi th an eye to thi s and to the ; nternati ona 1 conferencesforeseen, the European Council instructed the General Affairs Council toexamine the Commission proposals on Community policy in the North/Southdialogue and to report to it at its next' meeting in June.

EUROPEAN PASSPORT

The European Council expressed its sati sfaction with the substanti alprogress recently made with regard to the introduction of a Europeanpassport.

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SEAT OF THE INSTITUTIONS

The Heads of State and of Government decided unanimously toconfirm the status quo in regard to the provisional places of work ofthe European institutions.

Separate statements were also made in the context of the Europeanpolitical cooperation on the Lebanon and the Middle East, Afghanistanand Poland.

Fol1 owi ng are the texts of these statements:

DECLARATION ON THE MIDDLE-EAST

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The European Council took note of the interim report by Dr. C.Van der Klaauw, the President in offi~e, on the initial results of theNiddle- East mission which he is at present carrying out on behalf of theTen on the bas i s of the Ven ice Dec ara t ion 0 f 13 June 1980 and theLuxemburg declaration of December 2. ~980. The Council noted withsatisfaction the welcome given to the mission to date and considered asencouraging the attention and interest with which the parties so farconsul ted vi ewed the European efforts.

In the 1 i ght of the consul tati o~s Mr. Van der K1 aauw wi 11 ho1 dduring the weeks to come. A final report will be presented to the meetingof the European Council on June 29 and 30, 1981.

DECLARATION ON THE LEBANON

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The European Council notes with great concern the latest developmentsin Southern Lebanon, which have edto the tragic deaths of three NigerianUNIFIL soldiers, stationed there in the cause of re-estab1ishing peace andsecuri ty in the regi on.

As the Eu ropean Counci 1 has stated on many occas ions, the independence,soverei gnty and territori a1 integrity of Lebanon must be fully respected.

The European Council considers that only the complete implementationof UNIFIL' s mandate can create the conditions necessary for a progressivereturn of the south of the country to Lebanese soverei gnty.

In order to enable UNIFIL to carry out its mandate in its entire areaof operations up to the internationally recognized boundaries, the TenMember states of the European Community, some of which contribute troopsto UNIFIL, call for the immediate and full cooperation of all interestedparties.

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In thi s connecti on ~ the European Counci 1 supports the statementmade on 28 March 1981 by the current president of the Security Councilwarning against the placing of any obstacle in the way of the efforts ofUNIFIL to discharge its mandate in full.

DECLARATION ON AFGHANISTAN

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The European Council notes with grave concern that the militaryoperations by Soviet troops against the Afghan people, who are resistingthis external interference, continue without interruption. The tragiccourse of events in Afghanistan constitutes a severe ordeal for theAfghan people and expresses itsel fin the form of a ma-si ve flood ofrefugees who are a heavy burdan for neighbouring countries, in particularfor Pakistan. The developments in Afghanistan remain a threat to thestability of relations in the region and worldwide.

In face of the situation resulting from the Soviet invasion ofAfghani stan, the European Council has call ed many times~ and in particul at its meeting in Venice in June 1980, for respect for the sovereignty andterritori a 1 integrity of Afghani stan and for an end to all interferencein the internal affairs of that country. The Council has stated on manyoccasions the need for a solution which entails the withdrawal of foreigntroops from Afghanistan and whi ch permits the Afghan peopl e to exerci sefreely their right to self-determination~ and for Afghanistan thus toreturn to its traditional status as an independent state - neutral and nonaligned.

The European Counci 1 supports any i ni ti ative which could lead to thedesired result and welcomes in particular the initiative which was thesubject of the resulution of the United Nations of 20 November 1980~ andthat put forward recently by France.

DECLARATION ON POLAND

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The European Council reaffi rms its pos iti on on Poland as expressedin its statement of December 2~ 1980. This statement is as valid today asit was then.

The Council notes that Poland has shown that she is capable of facingher internal problems herself in a spirit of reason and responsibility. Itis in the interest of the Polish people that Poland should continue to doso in a peaceful manner and without outside interference. It is also inthe interest of stabi 1 ity in Europe.

The Council is following recent developments in Poland with greatconcern. It underlines the obligation of all states signatory to theHelsinki final act to base their relations with Poland on the strictapplication of the Charter of the United Nations on the principles of thefinal act. They emphasize that any other attitude would have very 'riousconsequences for the future of international relations in Europe arlLi

throughout the worl

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The European Council heard a report by Mr. Genscher on his recentvisit to Poland.

The European Council recalls that the Ten have already responded,both individually and in the Community framework, to the Polish requestfor economic support. They are disposed, within the limits of theirmeans and in collaboration with others, to continue their contributionto the recovery of the Pol ish economy so as to complement the effortsof the Polish people itself.

With regard to the present situation, the European Council expressedunderstanding for the Polish wishes for extra food supplies. It requestedthe Commission and the Council, in agreement with the partner countrieswhich .are already taking part in the Paris discussions, to examine thesewishes as soon as possible. It called on the Council, the Commission andthe Nember States to decide on their participation of this action as amatter of urgency.