THE EUROPEAN COUNCIL

LUXEMBOURG2 DECEMBER 1980

Documents in the dossier include:

ConclusionsSession of the European Council

Reproduced from The European CouncilDossier of the Group of the European People s Party

Luxembourg 1990

Luxembourg European CouncilReproduced from the Bulletin ofthe European Communities, No. 12/1980

Conclusions of the European Council Luxembourg, December 1 & 2 1980European Community News No. 31/1980European Community Information Service

Washington DC

CONCLUSIONS OF TIm SESSIONS OF TIm rroROPEAN COUNCIL (1975 - 1990)Ll4Xembourg. and December 1980

Session of the European Council

Luxembourg, 1 and 2 December 1980

Conclusions

In the face of the disquiet caused by developments in the international situation, the European

Council is conscious of the responsibilities devolving upon Europe.

The Council considers that Europe s experience and resources make it one of the essentialfactors of equilibrium and peace in the world.

It is in the context of the solidarity which unites a strong America and a Europe confident ofitself and of its role that dialogue and coordination between them will best serve the cause of peaceand freedom.

The European Council will therefore ensure that Europe acquires greater cohesion and that itsvoice is heard

Earthquake in southern Italy

The European Council expresses its deep emotion in the face of the disaster which has struckpart of southern Italy. The Heads of State or of Government of the Member States of the Commu-nity and of Greece wish to convey their deepest sympathy to the stricken population, to thefami-ties mourning their dead, and to all those who, in these tragic circumstances, are suffering thedestruction of their homes or the loss of their means of livelihood.

The peoples of the Member States of the European Community cannot remain indifferent tothese tragic events. Over and above the spontaneous aid rendered by the Governments and otherpublic authorities as well as by a multitude of citizens and associations in all our countries, it is theduty of the Community and its Member States, in the name of solidarity, to provide exceptionalassistanCe in the present circumstances to the stricken areas.

The Council of the European Communities is invited to decide without delay, on a proposalfrom the Commission and as part of the normal budget procedure, to supplement the emergencyaid with exceptional aid measures designed to make an effective contribution, mainly through aloan with an interest-rate subsidy, to the reconstruction programme in the affected areas in order to

- 153 -

CONCLUSIONS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Lux!!!mb()llrg. tmd l)ec:ember 1980

mitigate the effects of the disaster on the economic and social situation () f the regions concernedand to ensure that these measures can be effective as soon as possible.

Economic aHld social situation

The European Council noted that the repeated increases in the price of .oil forced upon theconsumer countries are the main cause of the world recession. Any further increase in the price ofoil would also have serious consequences for the non-oil-producing developing countries.

The European Council considers that the prospects for the European economy have never re-quired more vigilant attention.

The European Council is particularly concerned at the rapid increa~e in unemployment in theMember States of the Community. It reaffirms that the reduction of rates of inflation and improve-ments in the competitiveness of undertaldngs by suitable investments facilitating the necessarystructural adjustments are the most appropriate ways of achieving improved growth and combatingunemployment on a lasting basis. A combined effort by Governments with the collaboration of em-ployers ' and labour organizations is essential to cope with this situation. The various Communityinstruments must continue to serve, first and foremost, policies aimed al reducing structural unem-ployment and at improving inlfastructure and the economic situation of I he less favoured rural re-gions.

A special effort should be made in the Community and in all Member States to assist young

people to find employment and to ensure that their training is geared to requirements.

The European Council reaffirms the importance in its view of a dialogue with employersand labour organizations, and of coordination and exchanges of information between MemberStates on their employment policies. The Commission will intensify its studies, on the basis ofwhich the Council, jointly composed of Economic Affairs, Finance and Social Affairs Ministers,will be required to consider the matter further.

The European Council draws attention once more to the pledges of all the Community Mem-ber States to reduce their dependence on oil by energy saving and by having .recourse to other ener-gy sources, including coal and nuclear power, and to do their utmost to prevent artificial stressesfrom occurring On the oil market In this connection, the European Council noted the conclusionsreached by the Council (Energy) on 27 November.

Financial questions and the EMS

The European Council examined the developments which had occurred since its last meetingin Venice in the monetary and financial spheres, both internationally and in the Communitycontext.

It noted that payments imbalances remained a source of tension in international monetary andfinancial relations and particularly affected certain developing countries. It considers that the main~tenance of a stable international monetary and financial system is a prerequisite if policies for theadjustment and recycling of capital are to contribute in parallel and in an orderly manner towards

----.

. 154-

CONCLUSIONS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Luxembourg, and December 1980

Ov( ,rcoming the existing imbalances and if the measures taken to benefit the developing countriesare to be pursued effectively. The European Council stressed that the work undertak",n by thecompetent international institutions to work out solutions to the financial problems raised by the re-

peated increases in oil prices and to the needs of the developing countries should be actively pur-sUt d, with due regard for the independence and competence of the Bretton Woods institutions. Itconfirmed that the Cornmunity Member States wouldcooromate their positions in these discus-sions.

The European Council notes that the European Monetary System worked out two years agohas operated in an exemplary fashion despite all the new events which have occurred since then onthe intemationalscene. It has thus made an essential contribution towards establishing an impro-ved monetary order, both at Community level and in order to respond better to the problems aris-ing in international monetary relations.

It considers that the work in hand on the Community s monetary problems will have to be ac-

tively continued by the Council of Ministers particularly as regards adjustment of Community bal-ance-of-payments loans and the gradual development of the use of the ECD. It noted the intentionof the Council of Ministers and of the Committee of Governors to renew the agreements on me-dium-term assistance and the swap arrangements which form an integral part of the European Mo-netary System. It notes that all these measures will contribute to the further strengthening of thezone of monetary stability .and solidarity in Europe. It also confirms the need to coordinate policieson interest i1\tes and on exchange rates vis-a-vis non-member countries and as far as possible to act

in concert with the monetary authorities in those countries.

The European Council confirms its determination to continue strengthening 1te EuropeanMonetary System until its transition to the institutional stage at the appropriate time. It calls uponthe Commission and the Council of Ministers to continue their work.

Industrial innovation and development

The European Council examined with interest the Commission communication on innovation.

It considers that, in the necessary adjustment of their industrial structures, Communityundertakings must aim resolutely at applying and developing activities based on an innovatoryapproach. This effort must be undertaken in conjunction with both sides of industry as a necessarycomponent of an active policy on employment.

It hopes that the efforts made in this direction by the Member States will be better coordina-ted in order 10 improve the competitiveness of European products by making the best use of the di-mension afforded by the common market. It requests the competent authorities of the Communityto examine ways of eliminating the fragmentation of markets and improving incentives to innova-tion and the dissemination ofImowledge.

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CONCLUSI(i)NS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Ll4Xemhcurg. and Dee-ember 1980

International trade

The European Council emphasized the importance of keeping the world' s tradiQg s-ystemopen under free and fair conditions. In this connection, they endorsed the Council' s smtement of25 November about the Community s relations with Japan.

Mandate given to the Commission on 30 May 1980

The European Council referred to the mandate given to the Commission of the EuropeanCommunities to carry out by the end of June 1981 an examination of the further development ofCommunity policies, without calling into question either the COmmon financial responsibility forthese policies, which are financed from the Community s own resources, or the basic principles ofthe common agricultural policy.

Taking account of the situations and interests of all Member States, this examination will aimto prevent the recurrence of unacceptable situations for any of them.

Report of the Three Wise Men

The European Council examined the Report of the Three Wise Men on the basis of a detailedstudy made by the Ministers of Foreign Affairs.

The European Council found that the depth of the analysis of the institutional situation andthe realism of tfie. solutions proposed by the Three Wise Men - solutions based on a balancedassessment of the Community' s problems and needs and.the appropriate means for dealing withthem - make of this report a rich source of ideas and suggestions for improving the machinery andprocedures of the Community' s institutional system.

It is because these ideas and suggestions are so plentiful that the European Council' s delibera-tions, and the specific conclusions to which they give rise for the time being, do not entirely coverall the suggestions in the report of the 'Three Wise Men , nor do they exhaust the matter. Inde-pendently of any decisions which may be taken in the near future, the report is and will continue tobe a fertile seedbed of ideas and suggestions on which the institutions and the Member States maydraw for their deliberations on tbe Community' s institutional system.

The European Council wishes to thank the Foreign Affairs Mini'lters for their study, whichhas fonned the basis for the conclusions which it has reached and which will be published.

European Union

The European Council took note of the reports from the Ministers for Foreign Affairs and theCommission on the progress made towards European Union in the past year. It decided that, as inthe past, these reports will be published in a suitable form.

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CONCLUSIONS OF THE SESSIONS OF THE EUROPEAN COUNCIL (1975 - 1990)Ll4Xembourg. and December 1980

The Middle East

The European Council reviewed the action taken by the Nine since the adoption of theVenice Declaration on the Middle East.

The Council heard the report ofMr Thorn on the mission which he carried out on behalfofthe Nine in accoroance with paragraph U of the Venice Declaration. It noted that this mission hadmade clear the great interest ar()used by the position taken up by Europe and that in this respect ithad been a success.

The results of the mission confirm that the principles of the Venice Declaration incorporatethe essential elements for a comprehensive, just and lasting settlement to be negotiated by the par-ties concerned They reinforce the Nine's determination to contribute to the search for such a settle-ment.

In this spirit the European Council approved the decision of the Ministers for Foreign Affairsto undertake consideration of the matter with the aim of clarifying and giving substance to theVenice principles. This consideration has resulted in the drafting of a report on the principalproblems relating to a comprehensive settlement under the following headings: withdrawal, self~determination, security in the Middle East, Jerusalem.

The report emphasizes that the measures envisaged under these fol.. .J~a1i.ngs should form a

coherent whole and should therefore be coordinated carefully.

The European Council was in agreement on this approach.

It noted that different formulas were possible to give substance to some of the Venice prin-ciples, in particular on the duration of the transitional period leading un to the electoral procedurefor self-determination, the definition of the provisional authority for u..:.. , dcated territories, the

conditions and modalities for self-determination, the guarantees ofsecurlty, and Jerusalem.

With a view to a more thorough exploration of these formulas and with the determination toencourage a climate more fiivourable to negotiations, the European Council considered it necessarythat new contacts be established with the parties concerned side by side with continued discussionswithin the Community.

The European Council accordingly instructed the Presidency-in-Office to undertake these

contacts in consultation with the Ministers for Foreign Affairs.

The Council also asked the Ministers to continue their discussions with due regard for deve-lopments in the situation and to report back to the Council.

The European Council laid down this action programme in order to provide a more consistentplatform designed to bring the parties concerned closer together.

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CONCLUSIONS Of/TIm SESSIONS OF TIm EUROPEAN COUNCIL (1975 - 1990)LliXemboutg. and December 1980

East -West relations

1heEuropean Coi:InCil held a detailed exchange of views on developments in 'East-West rela~tions.

On the question of the Madrid meeting, the European Council stressed llieimpor~tance which the Nine attached to the CSCE process and their willingness tocontinue it. It pointed out that compliance by all concerned with the principlesof the Helsinki Final Act is both the basis of this process and a precondition ofits continUation.

It affirmed the determination of the Nine not to be content with apparent resultsin Madrid but to achieve genuine and balanced progress in the various chaptersof the negotiations. In particular, it confinned with this in mind the supportwhich the Nine had already expressed in their declaration of 20 November1979 for the proposed European Disarmament Conference, the first stage ofwhich would be the drafting of binding and verifiable confidence measures toapply to the entire European continent.

The European Council expressed its sympathy for Poland and outlined the posi-tion of the Nine as follows:

In their relations with Poland, the Nine conform and will conform strictly tothe United Nations Charter and to the principles of the Helsinki FinalAct.

In this context, they would point out that in subscribing to the principles, theStates signatory to the Final Act have undertaken in particular to:

respect the right of every country to choose and freely develop its own

political, social, economic and cultural system as well as to detennine itsown laws and regulations;

refrain D:om any direct or indirect, individual or collective intervention ininternal or external affairs which fall within the national competence ofanother signatory State regardless of their mul uw relations;

recognize the right of all people to pursue their own political, economic,social and cultural development as they see fit and without external inter-ference.

The Nine accordingly call upon the signatory States to abide by these princi-ples with regard to Poland and the Polish people. They emphasize thatany other attitude would have very serious consequences for the futureof international relations in Europe and throughout the world

- 158 -

CONCLUSIONS OF THE SESSIONS OF TIm EUROPEAN COUNCIL (1975 - 1990)Ll4Xembourg, and December 1980

They state their willingness to meet, insofar as their resources allow, the re-quests for economic aid which have been made to them by Poland.

Lebanon

The European Council again devoted its attention to the situation in Lebanon, where the latestdevelopments are continuing to give rise to serious anxiety.

The Nine wish to reaffirm that the unity, independence, sovereignty and territorial integrity ofLebanon must be fully respected. This is essential to enable the legitimate Government of Lebanonto restore peace throughout the country. Lebanon belongs to the Lebanese: it is for them alone toestablish the rules of their coexistence.

It is in this spirit that the Nine make a fresh appeal for the integrity of the borders of Lebanonand the safety of its people to be respected Respect for the international boundaries of Lebanon isone of the essential factors in the security and stability of the region.

As they declared in Venice on 13 June, the Nine trust that Unifil will be enabled to fulfil theassignment given to it by the Security Council.

The European Council reaffinns that one of the aims of the Nine '5 action in the interests of

peace in the Near East is to restore the integrity of Lebanon s borders and to enable it once more toexercise its national sovereignty in full.

Jordan/Syria

The European Council noted with concern the situation which has arisen between Jordanand Syria, two states with which the Nine have long enjoyed close relations. They called upon thegovernments concerned to exercise restraint and to resolve any disagreen. , " by peaceful means,including the possibility of action in the United Nations.

- 159 -

Luxembourgropeanu ncil

cussions dominatedtheint~rnational situation

1. The European Council met .in Lux-ou~g on 1 and 2 December with Mrner, Prime Minister of Luxembourg andident of the Council and of politicalperation, in the chair. The Commission

represented by Mr Jenkins and Mroli.

ides the Heads of State or of Governmentthe nine Member States, the European

.nncil was attended for the first time by Mrlis, the Greek Prime Minister. He took a

I part in the proceedings on matters relat-to political cooperation but reverted to

erver status when the Council discussedcifically Community matters, since it wast until 1 January 1981 that Greece wasmally to become the tenth member of themmunity. This participation by a new-

mer before it has actually joined the Com-unity is not without precedent: the Primeinisters of Denmark Ireland and thenited Kingdom attended the first Summitonference of the enlarged Community inaris on 19 and 20 October 1972. I

part from the aid to the victims of therthquake in Italy, it was events on theternational scene, rather than Communityfairs, which dominated the discussionsEast-West relations, particularly the situa-on in Poland, and problems in the Middleast, particularly the results of the VeniceISSlon.

e Commission had made its usual con~ribution to the preparations by providing the

Council with a series of papers to facilitate orguide its discussions. These papers bore onthe economic and social situation in theCommunity, industrial innovation anddevelopment the North-South Dialogue,

Bull. EC 12- 1980

European Council

international trade (especially relations withJapan and the United States), EuropeanUnion and Poland.

Results of the Luxembourg meeting

2. The subjects dealt with at the Luxem-bourg European Council and the outcome ofthe discussions Were, as usual, set out in theConclusions made public by the President atthe end of the meeting. But this time thestatements adopted by the European Councilare prefaced by a 'political introduction

Conclusions of the Presidency

1.3. The following is the full text of theConclusions issued by the President to thenational delegations and made public afterthe meeting:

1.4. 'In the face of the disquiet caused bydevelopments in the international situation, theEuropean Council is conscious of the respon-sibilities devolving upon Europe.

The Council considers that Europe s experienceand resources make it one of the essential factorsof equilibrium and peace in the world.

It is in the context of the solidarity which unites astrong America and a Europe confident of itselfand of its role that dialogue and coordination bet-ween them will best serve the cause of peace andfreedom.

The European Council will therefore ensure thatEurope acquires greater cohesion and that its voiceis heard.

Bull. EC 10- 1972 , Parr One, Chap. l.

European Council

Earthquake in southern Italy

5. The European Council expresses its deepernotion in the face of the disaster which hasstruck part of southern Italy. The Heads of Stateor of Governrnent of the Member States of theCornrnunity and of Greece wish to convey theirdeepest sympathy to the stricken population, to

tile families mourning their dead, and to all those

who, in these tragic circumstances, are sufferingthe destruction of their homes or the loss of theirmeans of livelihood.

The peoples of the Member States of the EuropeanCommunity cannot remain indifferent to thesetragic events. Over and above the spontaneous aidrendered by the Governments and other publicauthorities as well as by a multitude of citizensand associations in all our countries, it is the dutyof the Cornmunity and its Member States, in thename of solidarity, to provide exceptional assist-ance in the present circumstances to the strickenareas.

The Council of the European Comrnunities isinvited to decide without delay, on a proposalfrom the Commission and as part of the normalbudget procedure, to supplement the emergency

aid with exceptional aid measures designed tomake an effective contribution, mainly through aloan with an interest-rate subsidy, to the recon-struction programme in the affected areas in orderto mitigate the effects of the disaster on theeconomic and social situation of the regions con~cerned and to ensure that these measures can beeffective as soon as possible.

Economic and social situation

6. The European Council noted that therepeated increases in the price of oil forced uponthe consumer countries are the main cause of theworld recession. Any further increase in the priceof oil would also have serious consequences forthe non-oil-producing developing countries.

The European Council considers that the prospectsfor the European economy have never requiredmore vigilant attention.

European Council

The European Council is particularly concerned atthe rapid increase in unernployrnent in theMember States of the Cornmunity. It reaffirmsthat the .reduction of rates of inflation andirnprovernents in the competitiveness of undertak-

ings by suitable investments facilitating the neces-sary structural adjustrnents are the rnost appropri-

ate ways of achieving irnproved growth and com-bating unernployrnent on a lasting basis. A com-bined effort by Governrnents with the collabora-tion of employers' and labour organizations isessential to cope with this situation. The variousCornrnunity instrurnents must continue to serve

first and foremost, policies aimed at reducingstructural unemployment and at improving infra-structure and the economic situation of the less-favoured rural regions.

A special effort should be made in the Communityand in all Member States to assist young people tofind ernployment and to ensure that their trainingis geared to requirements.

The European Council reaffirms the importance inits view of a dialogue with employers ' and labourorganizations, and of coordination and exchangesof information between Member States on theirernployment policies. The Commission will inten-sify its studies, on the basis of which the Counciljointly composed of Economic Affairs, Financeand Social Affairs Ministers, will be required toconsider the matter further.

The European Council draws attention once moreto the pledges of all the Community MemberStates to reduce their dependence on oil by energysaving and by having recourse to other energysources, including coal and nuclear power, and todo their utmost to prevent artificial stresses fromoccurring on the oil market. In this connection , theEuropean Council noted the conclusions reachedby the Council (Energy) on 27 November.

Financial questions. EMS

7. The European Council examined thedevelopments which had occurred since its last

Bull. EC 11- 1980, point 2. 1.97.

Bull. EC 12- 1980

ting in Venice in the rnonetary and financialeres, both internationally and in the Commun~ontext.oted that payments imbalances rernained a

ce of tension in international rnonetary andcial relations and particularly affected certainloping countries. It considers that the rnain~

nee of a stable international monetary andncial systern is a prerequisite if policies for thestrnent and recycling of capital are to contri-in parallel and in an orderly rnanner towardscorning the existing imbalances and if thesures taken to benefit the developing countriesto be pursued effectively. The European Coun-tressed that the work undertaken by the c~m-nt international institutions to work out solu-s to the financial problems raised by the re-ted increases in oil prices and to the needs ofdeveloping countries should be actively pur", with due regard for the independence and

petence of the Bretton Woods institutions. Itfirrned that the Community Member Statesutd coordinate their positions in these discus-

European Council notes that the Europeannetary System worked out two years ago! hasrated in an exemplary fashion despite all the

events which have occurred since then on thernational scene. It has thus made an essentialtribution towards establishing an improvednetary order, both at Community level and iner to respond better to the problems arising in

ernational monetary relations.considers that the work in hand on the Com-nity s monetary problems will have to beively continued by the Council of Ministers

ticularly as regards adjustment of Communityance-of-payments loans and the gradualelopment of the use of the ECU. It noted theention of the Council of Ministers and of the

mmittee of Governors to renew the agreementsrnedium-term assistance and the swap arrange-ts which form an integral part of the Europeannetary System. It notes that all these measuresI contribute to the further strengthening of the

of monetary stability and solidarity inrope. It also confirms the need to coordinate

ticies on interest rates and on exchange ratesa-vis non-member countries and as far as poss-

Ie to act in concert with the monetary authoritiesthose countries.

European Council

The European Council confirms its deterrninationto continue strengthening the European MonetarySystem until its transition to the institutional stageat the appropriate time. It calls upon the Commis-sion and the Council of Ministers to continue theirwork.

Industrial innovation and development

1.8. The European Council examined withinterest the Commission comrnunication on inno-vation.

It considers that, in the necessary adjustment oftheir industrial structures, Community undertak.ings must aim resolutely at applying and develop-ing activities based on an innovatory approach.This effort must be undertaken in conjunctionwith both sides of industry as a necessary corn.ponent of an active policy on employment.

It hopes that the efforts made in this direction bythe Member States will be better coordinated inorder to irnprove the competitiveness of Europeanproducts by making the best use of the dirnensionafforded by the common rnarket. It requests thecompetent authorities of the Community exarnine ways of eliminating the fragmentation ofmarkets and improving incentives to innovationand the dissernination of knowledge.

International trade

9. The European Council emphasized theimportance of keeping the world's trading systemopen under free and fair conditions. In this con-ne:xion, they endorsed the Council's statement of25 Novernber about the Cornmunity s relations

with Japan.

OJ L 379 of 30. 12. 1978; Bull. EC 12- 1978, points

1.1. 1 to 1.1.11.Point 2. 1.141.

.1 Bull. ECI1-1980, point 1.2.4.

European Council

Mandate given to the Commissionon 30 May 1980

10. The European Council referred to themandate given to the Commission of the EuropeanCommunities to carry out by the end of June 1981an exarnination of the further developrnent ofCornmunity policies, without calling into questioneither the comrnon financial responsibility forthese policies, which are financed from the Com-rnunity s own resources, or the basic principles ofthe comrnon agricultural policy.

Taking account of the situations and interests ofall Member States, this examination will aim toprevent the recurrence of unacceptable situationsfor any of them.

Report of the Three Wise Men

1.1. 11. The European Council examined theReport of the Three Wise Men on the basis of adetailed study made by the Ministers of ForeignAffairs.

The European Council found that the depth of theanalysis of the institutional situation and the real-ism of the solutions proposed by the Three WiseMen----solutions based on a balanced assessrnent ofthe Community s problerns and needs and theappropriate means for dealing with them-makeof this Report a rich source of ideas and sugges-tions for improving the machinery and proceduresof the Community s institutional system.

It is because these ideas and suggestions are soplentiful that the European Council's delibera-tions, and the specific conclusions to which theygive rise for the time being, do not entirely coverall the suggestions in the Report of the Three WiseMen, nor do they exhaust the matter. Indepen-dently of any decisions which may be taken in thenear future, the Report is and will continue to be afertile seedbed of ideas and suggestions on whichthe institutions and the Member States may drawfor their deliberations on the Community s institu-tional system.

The European Council wishes to thank the ForeignAffairs Ministers for their study, which has formedthe basis for the conclusions which it has reachedand which will be published.

European Council

European Union

1.12. The European Council took note of thereports from the Ministers for Foreign Affairs andthe Commission on the progress made towardsEuropean Union in the past year. It decided that-as in the past, these reports will be published in asuitable forrn.

The Middle-East

13. The European Council reviewed theaction taken by the Nine since the adoption of theVenice Declaration on the Middle East.

The Council heard the report of Mr Thorn on thernission which he carried out on behalf of the Ninein accordance with paragraph 11 of the VeniceDeclaration) It noted that this rnission had madeclear- the great i!1terest aroused by the positiontaken up by Europe and that in this respect-it hadbeen a success.

The results of the mission confirm that the prin-ciples of the Venice Declaration incorporate theessential elements for a comprehensive, just and

lasting settlement to be negotiated by the partiesconcerned. They reinforce the Nine s determina-

tion to contribute to the search for such a settle-ment.

In this spirit the European Council approved thedecision of the Ministers for Foreign Affairs toundertake consideration of the rnatter with theaim of clarifying and giving substance to theVenice principles. This consideration has resultedin the drafting of a report on the principal prob-

lems relating to a comprehensive settlement underthe following headings: withdrawal, self-deter-mination, security in the Middle East, Jerusalem.

The report emphasizes that the rneasures envisagedunder these four headings should form a coherent

whole and should therefore be coordinated care-fully.

OJ C 158 of 27. 1980.Bull. EC Supplement 4/80.Bull. EC 6-1980, point 1.1.6.

Bull. EC 12-1980

European Council was in agreement on thisach.

ed that different formulas were possible to

ubstance to some of the Venice principles, inular on the duration of the ' transitional

d leading up to the electoral procedure fortermination, the definition of the pro-

al authority for the vacated territories, the

tions and modalities for self-determination,arantees of security, and Jerusalem.

a view to a more thorough exploration offormulas and with the determination to

urage a climate more favourable to negotia~

, the European Council considered it neces-that new contacts be established with the par-concerned side by side with continued discus-s within the Comrnunity.

European Council accordingly instructed theidency-in-Office to undertake these contacts inltation with the Ministers for Foreign

Council also asked the Ministers to continuer discussions with due regard for developmentse situation and to report back to the Council.

European Council laid down this action pro-mOle in order to provide a more consistent

tform designed to bring the parties concernedser together.

st- West relations

14. The European Council held a detailed

change of views on developments in East-West

ations.

On the question of the Madrid meeting,l the

ropean Council stressed the irnportance whichNine attached to the CSCE process and their

lingness to continue it. It pointed out that com-nce by all concerned with the principles of the

lsinki Final Act is both the basis of this processd a precondition of its continuation.

affirmed the determination of the Nine not to bentent ~ith apparent results in Madrid but tohieve genuine and balanced progress in the vari-

us chapters of the negotiations. In particular, itnfirmed with this in mind the support which the

European Council

Nine had already expressed in their declaration of20 November 19792 for the proposed EuropeanDisarmarnent Conference, the first stage of whichwould be the drafting of binding and verifiable

confidence measures to apply to the entire Euro-pean continent.

II. The European Council expressed its sympathyfor Poland and outlined the position of the Nine asfollows:

1. In their relations with Poland, the Nine con-form and will conform strictly to the .United

Nations Charter and to the principles of the Hel-sinki Final Act.

2. In this context, they would point out that insubscribing to these principles, the States signatoryto the Final Act have undertaken in particular to:

respect the right of every country to choose

and freely develop its own political social,

economic and cultural system as well as to deter-mine its own laws and regulations;

refrain from any direct or indirect, individualor collective intervention in internal or external

affairs which fall within the national cornpetence

of another signatory State regardless of theirrnutual relations;

recognize the right of all people to pursue

their own political, economic, social and culturaldevelopment as they see fit and without externalinterference.

3. The Nine accordingly call upon the signatoryStates to abide by these principles with regard toPoland and the Polish people. They enphasize thatany other attitude would have very serious conse~quences for the future of international relations inEurope and throughout the world.

4. They state their willingness to meet, insofar astheir resources allow, the requests for econornic

aid which have been rnade to them by Poland.

Lebanon

15. The European Council again devoted itsattention to the situation in Lebanon, where thelatest developments are continuing to give rise toserious anxiety.

Bull. EC 11-1980, points 1.1.1 to 1.1.5.Bull. EC 11-1979, point 2.2.60.

European Council

The Nine wish to reaffirm that the unity, inde-pendenGe, sovereignty and territorial integrity ofLebanon must be fully respeGted. This is essentialto enable the legitimate Government of Lebanonto restore peaGe throughout the Gountry. Lebanonbelongs to the Lebanese: it is for them alone toestablish the rules of their GoexistenGe.

It is in this spirit that the Nine make a fresh appealfor the integrity of the borders of Lebanon and thesafety of its people to be respeGted. RespeGt for theinternational boundaries of Lebanon is one of theessential faGtors in the seGurity and stability of the

region.

As they dedared in Venice on 13 June ! the Ninetrust that UNIFIL will be enabled to fulfil theassignment given to it by the SeGucity CounGil.

The European Council reaffirms that one of theaims of the Nine s aGtion in the interests of peaGein the Near East is to restore the integrity of Leba-non s borders and to enable it once more to exer-cise its national sovereignty io full.

Jordan/Syria

16. The European CounGi! noted with Gon-cern the sit.uation which has arisen between Jor-dan and Syria, two states with which the Ninehave long enjoyed dose relations. They calledupon the governments concerned to exerciserestraint and to resolve any disagreements bypeaceful means, induding the possibility of actionin the United Nations

Bull. EC 6- 1980, point 1.1.

Bull. EC 12-1980

European Community1m ! ~Ii III ~! j m~m1j!1

No. 31/1980December 3, 1980

CONCLUSIONS OF THE EUROPEAN COUNCILLUXEMBOURG, DECEMBER 1 & 2, 1980

The Heads of Government of the Nine assembledin a European Council on December 1 and 2, inLuxembourg, reached the following conclusions.

In the face of the disquiet caused by developments in theinternational situation, the European Council is conscious ofthe responsibilities devolving upon Europe.

The Council considers that Europe I s experience andresources make it one of the essential factors of equilibriumand peace in the world.

It is the context of the solidarity which unites a strongAmerica and Europe confident of itself and of its role thatdialogue and coordination between them will best serve the causeof peace and freedom.

The European Council will therefore ensure that Europeacquires greater cohesion and that its voice is heard.

EARTHQUAKE IN SOUTHERN ITALY

The European Council expresses its deep emotion in theface of the disaster which has struck part of southern Italy.The Heads of State or of Government of the Member States of theCommunity and of Greece wish to convey their deepest sympathy tothe stricken population, to the families mourning their dead,and to all those who, in these tragic circumstances, aresuffering the destruction of their homes or the loss of theirmeans of livelihood.

The peoples of the Member States of the European Communitycannot remain indifferent to these tragic events. Over andabove the spontaneous aid rendered by the Governments and other

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public authorities as well as by a multitude of citizens andassociations in all our countries, it is the duty of theCommunity and its Member States, in the name of solidarity, toprovide exceptional assistance in the present circumstances tothe stricken areas.

The Council of the European Communities is invited todecide without delay, on a proposal from the Commission and aspart of the normal budget procedure, to supplement the emergencyaid with exceptional did measures designed to make an effectivecontribution, mainly through a loan with an interest rates ub~idy, to the reconstruction program in the affected areas inorder to mitigate the effects of the disaster on the economicand social situation of the regions concerned and to ensure thatthese measures can be effective as soon as possible.

ECONOMIC AND SOCIAL SITUATION

The European Council noted that the repeated increases inthe price of oil forced upon the consumer countries are the maincause of the world recession. Any further increases in theprice of oil would also have serious consequences for thenon-oil-producing developing countries.

The European Council considers that the prospects for theEuropean economy have never required more vigilant attention.

The European Council is particularly concerned at therapid increase in unemployment in the Member States of theCommunity. It reaffirms that the reduction of rates ofinflation and improvements in the competitiveness ofundertakings by suitable investments facilitating the necessarystructural adjustments are the most appropriate ways ofachieving improved growth .and combatting umemployment on alasting basis. A combined effort by Governments with thecollaboration of employers I and labor organizations is essential

to cope with this situation. The various Community instrumentsmust continue to serve, first and foremost, policies aimed atreducing structural unemployment and at improving infrastructureand the economic situation of the less-favored rural regions.

A special effort should be made in the Community and inall Member State.s to assist young people to find employment andto ensure that their training is geared to requirements.

The European Council reaffirms the importance in its viewof a dialogue with employers and labor organizations, and ofcoordination and exchanges of information between Member States

on their employment policies. The Commission will intensifyits studies on the basis of which the Council, jointly composed0 f Economic Affairs, Finance and Social Affairs Ministers, willbe required to consider the matter further.

The European Council draws attention once more to thepledges of all the Community Member States to reduce theirdependence on oil by energy saving and by having recourse toother energy sources, including coal and nuclear power, and todo their utmost to prevent artificial stresses from occurring onthe oil market. Tn this connection, the European Council notedthe conclusions reached by the Council (Energy) on 27 November.

FINANCIAL QUESTIONS, EUROPEAN MONETARY SYSTEM (EMS)

The European Council examined the developments which hadoccurred since its last meeting in Venice in the monetary andfinancial spheres, both internationally and in the Communitycontext.

It noted that payments imbalances remained a source oftension in international monetary and financial relations andparticularly affected certain developing countries. Itconsiders that the maintenance of a stable internationalmonetary and financial system is a prerequisite if policies forthe adjustment and recycling of capital are to contribute inparallel and in an orderly manner towards overcoming theexisting imbalances and if the measures taken to benefit thedeveloping countries are to be pursued effectively. TheEuropean Council stressed that the work undertaken by thecompetent international institutions to work out solutions tothe financial problems raised by the repeated increases in oilprices and to the needs of the developing countries should beactively pursued, with due regard for the independence andcompetence of the Bretton Woods institutions. It confirmed thatthe Community Member States would coordinate their positions inthese discussions.

The European Council notes that the European t-bnetarySystem worked out two years ago has operated in an exemplaryfashion despite all the new events which have occurred sincethen on the international scene. It has thus made an essentialcontribution towards establishing an improved IrDnetary order,both at Community lev.el and in order to respond better to theproblems arising in international monetary relations.

It considers that the work in hand on the Communitymonetary problems will have to be actively continued by the

Council of Ministers, particularly as regards adjustment ofCommunity balance of payments loans and the gradual developmentof the use of the European Currency Unit (ECU). It noted theintention of the Council of Ministers and of the Committee ofGovernors to renew the agreements on medium-term assistance andthe swap arrangements which form an integral part of the EMS.It notes that all these measures will contribute to the furtherstrengthening of the zone of monetary stability and solidarityin Europe. It also confirms the need to coordinate policies oninterest rates and on exchange rates vis-a-vis non-membercountries and as far as possible to act in concert with themonetary authorities in those countries.

The European Council confirms its determination tocontinue strengthening the EMS until its transition to theinstitutional stage at the appropriate time. It calls upon theCommission and the Council of Ministers to continue their work.

INDUSTRIAL INNOVATION AND DEVELOPMENT

The European Council examined with interest the Commissioncommunic.ation on innovation.

It considers that, in the necessary adjustment of theirindustrial structures, Community undertakings must aimresolutely at applying and developing activities ba.sed on aninnovatory approach. This effort must be undertaken inconjunction with both sides of industry as a necessary componentof an active policy on employment.

It hopes that the efforts made in this direction by theMember States will be better coordinated in order to improve thecompetitiveness of European products by making the best use ofthe dimension afforded by the common market.

It requests the competent authorities of the Community toexamine ways of eliminating the fragmentation of markets andimproving incentives to innovation and the dissemination ofknowledge.

INTERNATIONAL TRADE

The European Council emphasized the importance of keepingthe world' s trade system open under free and fair conditions.In this connection, they endorsed the Council' s statement of 25November about the Community s relations with Japan.

MANDATE GIVEN TO THE COMMISSION ON MAY 30, 1980

The European Council referred to the mandate given to theCommission of the European Communities to carry out by the endof June 1981 an examination of the further development ofConnnunity policies , without calling into question either thecommon financial responsibility for these policies, which arefinanced from the Community s own resources, or the basicprinciples of the common agricultural policy.

Taking account of the situations and interests of allMember States, this e.xamination will aim to prevent therecurrence of unacceptable situations for any of them.

EUROPEAN UNION

The European Council took note of the reports from theMinisters for Foreign Affairs and the Commission on the progressmade towards European Union in the past year. It decided that,as in the past, these reports will be published in a sui tableform.

REPORT OF THE THREE WI SE MEN

The European Council examined the Report of the Three WiseMen on the basis of a detailed study made by the Ministers ofForeign Affairs.

The European Council found that the depth of the analysisof the institutional situation and the realism of the solutionsproposed by the Three Wise Men - solutions based on a balancedassessment of the Community s problerns and needs and theappropriate means for dealing with them - make of this report arich source of ideas and suggestions for improving the machineryand procedures of the Community s institutional system.

It is because these ideas and suggestions are so plentifulthat the European Council' s deliberations and the specificconclusions to which they give rise for the time being, do notentirely cover all the suggestions in the Report of the ThreeWise Men, nor do they exhaust the matter. Independently of anydecisions which may be taken in the near future, the Report isand will continue to be a fertile seedbed of ideas andsuggestions on which the Institutions and the Member St.ates maydraw for their deliberations on the Community s institutionalsystem.

The European Council wishes to thank the Foreign AffairsMinisters for their study, which has formed the basis for theconclusions which it has reached and which will be published.

THE MI DOLE EAST

The European council reviewed the action taken by the Ninesince the adoption of the Venice Declaration on the Middle East.

The Council heard the report of Mr. Thorn on the missionwhich he carried out on behalf of the Nine in accordance withparagraph 11 of the Venice Declaration. It noted that thismission had made clear the great interest aroused by theposition taken up by Europe and that in this respect it had beena success.

The results of the mission confirm that the principles ofthe Venice Declaration incorporate the essential elements for acomprehensive, just and lasting settlement to be negotiated bythe parties concerned. They reinforce the Nine I s determinationto contribute to the search for such a settlement.

In this spirit, the European Council approved the decisionof the Ministers of Foreign Affairs to undertake considerationof t1'\e matter with the aim of clarifying and giving substance tothe Venice principles. This consideration has resulted in thedrafting of a report on the principal problems relating to acomprehensi ve settlement under the following headings:withdrawal, self-determination, security in the Middle East,Jerusalem.

The report emphasizes that the measures envisaged underthese four headings should form a coherent whole and shouldtherefore be coordinated carefully.

The European Council was in agreement on this approach.

It noted that different formulas were possible to givesubstance to some of the Venice principles, in particular on theduration of the transitional period leading up to the electoralprocedure for self-determination, the definition of theprovisional authority for the vacated territories, theconditions and modalities for self-determination, the guaranteesof security, and Jerusalem.

With a view to a more thorough exploration of theseformulas and with the determination to encourage a climate morefavorable to negotiations, the European Council considered it

necessary that new contacts be established with the partiesconcerned side by side with continued discussions within theCommunity.

The European Council accordingly instructed thepresidency-in-Office to undertake these contacts in consultationwith the Ministers for Foreign Affairs.

The Council also asked the Ministers to continue theirdiscussions with due regard for developments in the situationand to report back to the Council.

The European Council laid down this action program inorder to provide a more consistent platform designed to bringthe parties concerned closer together.

EAST-WEST RELATIONS

The European Council held a detailed exchange of views ondevelopments in East-West relations:

On the question of the Madrid meeting, the EuropeanCouncil stressed the importance which the Nine attached tothe CSCE process and their willingness to continue it. pointed out that compliance by all concerned with theprinciples of the Helsinki Final Act is both the basis ofthis process and a pre-condition of its continuation.

It affirmed the determination of the Nine not to becontent with apparent results in Madrid but to achievegenuine and balanced progress in the various chapters ofthe negotiations. In particular, it confirmed with thisin mind the support which the Nine had already expressedin their declaration of November 20, 1979, for theproposed European disarmament conference, the first stageof which would be the drafting of binding and verifiableconfidence measures to apply to the entire Europeancontinent.

The European Council expressed its sympathy for Poland andoutlined the position of the Nine as follows:

In their relations with Poland, the Nine conformand will conform strictly to the United NationsCharter and to the principles of the Helsinki FinalAct.

In this context, they would point out that insubscribing to these principles, the State.signatory to the Final Act have undertaken inparticular to:- respect the right of every country to choose andfreely develop its own political, social, economicand cultural system as well as to determine its ownlaws and regulations - refrain from any direct or indirect, individualor collective intervention in internal or external

fairs which fall within the national competenceof another signatory State regardless of theirmut ual relations - recognize the right of all people to pursue theirown political, economic, social and culturaldevelopment as they see fit and without externalinterference.

The Nine accordingly call upon all the signatory States toabide by these principles with regard to Poland and thePolish people. They emphasize that any other attitudewould have very serious consequences for the .future ofinternational relations in Europe and throughout theworld.

They state their willingness to meet, insofar as theirresources allow, the requests for economic aid which havebeen made to them by Po land.

LEBANON

The European Council again devoted its attention to thesituation in Lebanon, where the latest developments arecontinuing to give rise to serious anxiety.

The Nine wish to reaffirm that the unity, independence,sovereignty and territorial integrity of Lebanon must be fullyrespected. This is essential to enable the legitimateGovernment of Lebanon to restore peace throughout the country.;Lebanon belongs to the Lebanese: it is for them alone toestablish the rules of their co-existence.

It is in this spirit that the Nine make a fresh appeal for

the integrity of the borders of Lebanon and the safety of itspeople to be respected. Respect for the internationalboundaries of Lebanon is one of the essential factors in thesecurity and stability of the region.

As they declared in Venice on 13 June, the Nine trust thatUNIFIL will be enabled to fulfil the assignment given to it bythe Security Council.

The European Co uncil reaffirms that one 0 f the aims 0 f the

Nine I s action in the interests of peace in the Near East is torestore the integrity of Lebanon

I S borders and to enable it oncemore to exercise its national sovereignty in full.

JORDAN/SYRIA

The European Council noted with concern the situationwhich has arisen between Jordan and Syria, two states with whichthe Nine have long enjoyed close relations. They called uponthe governments concerned to exercise restraint and to resolveany disagreements by peaceful means, including the possibilityof action in the united Nations.