24-26 April Economic and Social Committee

Date: 02/05/1996

EUROPE'S economy is in danger of falling into recession, the Economic and Social Committee warned. Adopting an opinion on the Commission's annual economic report by 114 votes to 17, the Committee warned against reforms that would endanger the 'European social model' but found that non-wage cost cuts were justified. They declared that the main way to restore confidence in the European economy would be to end speculation about the prospects for integration and the creation of a single currency.

THE Committee called for 1997 to be designated the 'European Year Against Racism'. A majority of members supported a report urging an increase in the amount of money set aside by the Commission to support anti-racism campaigns and for an accompanying reduction in the number of activities in this sphere, with the emphasis placed instead on a more focused approach. The Committee stressed the vital role of education in developing racial tolerance by highlighting both the dangers of racism and the positive attributes of ethnic integration.

MEMBERS voted to support the movement campaigning for 'fair trade' labelling on goods mostly from developing countries. The label is fixed to products manufactured and traded in such a way as to guarantee minimum employment conditions. The ESC called for the certification of these products and for the Commission to fund the activities until they are able to fund themselves. The Commission could then raise awareness of the label and promote the diversification of suppliers.

THE ESC adopted a report calling for specific measures to develop transport networks in the run-up to the Pan-European Transport Conference in Helsinki in June next year. Members called for the conference to plug the gaps in regulations to ensure fair competition, find solutions to the shortfalls in finance in this area, improve safety and environmental protection regulations, develop cooperation between member states and other European countries, and ensure full consultation with all sides of industry.