28 March Industry Council

Date: 04/04/1996

AT the request of the Danish government, industry ministers held a debate on the problem of state aid to shipyards. Denmark has long been unhappy at the levels of subsidy paid to yards in southern Europe and eastern Germany while two of its oldest yards have been forced to close. Competition Commissioner Karel Van Miert told ministers that he could accede, at least in part, to Denmark's request for more transparency in this area and a review of investigation procedures. Ministers discussed the extension of the shipyard aid directive in the event that a global agreement on aid, due to enter force in July, misses its deadline.

MINISTERS agreed a resolution on ways to promote the interests of small and medium-sized enterprises (SMEs). This calls on member states to take advantage of national and EU resources to promote a “spirit of enterprise” within SMEs. The burden of red tape should be reduced for small companies, rules simplified and training programmes for young people encouraged.

A first policy debate was held on the third multi-annual programme for SMEs. The Commission has suggested that the budget for the 1997-2000 programme be increased from 112 million ecu to 180 million, although this includes 40 million from the proposed review of the financial perspectives. Several member states welcomed the increase, although the principle of altering the perspectives has been disputed.

THE EU textile and clothing industry must continue its round of restructuring measures if it is to compete with low-cost producers in Asia, according to a report adopted by ministers. They declared that member states and the Commission should promote cooperation between firms in areas such as research and development, innovation and marketing. Third countries' activitives should be closely monitored to ensure they meet their WTO obligations.

THE council postponed a decision on whether the EU needs special rules on diabetic foods after Germany said it needed four weeks to consider the issue. All other member states disagree with the Commission's recommendation that these foods should be included among products requiring further controls under a directive on foodstuffs for special nutritional uses. Member states say that diabetics simply need to watch their diets and the directive could merely legitimise unnecessary products.

MINISTERS adopted a resolution on the future of the EU pharmaceutical industry. The text makes clear that responsibility for the organisation and funding of healthcare services lies within the competence of member states. Nevertheless, the Commission is given the task of monitoring the transparency of member states' drugs pricing regimes.