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1. The European Council expresses its deep satisfaction at
 developments in Central and Eastern Europe since the
 Strasbourg European Council.  It applauds the continuing
 process of change in these countries with whose peoples we
 share a common heritage and culture.  This process of change
 brings ever closer a Europe which, having overcome the
 unnatural divisions imposed on it by ideology and
 confrontation, stands united in its commitment to democracy,
 pluralism, the rule of law, full respect for human rights,
 and the principles of the market economy.  The European
 Council welcomes in particular the holding of free elections
 in the German Democratic Republic and Hungary and looks
 forward to similar developments in the other countries of
 Central and Eastern Europe.
2. The Community warmly welcomes German Unification. It looks
 forward to the positive and fruitful contribution that all
 Germans can make following the forthcoming integration of
 the territory of the German Democratic Republic into the
 Community.  We are confident that German Unification - the
 result of a freely expressed wish on the part of the German
 people - will be a positive factor in the development of
 Europe as a whole and of the Community in particular.
3. A point has now been reached where the continued dynamic
 development of the Community has become an imperative not
 only because it corresponds to the direct interests of the
 twelve Member States but also because it has become a
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 crucial element in the progress that is being made in
 establishing a reliable framework for peace and security in
 Europe. The European Council therefore agrees that further,
 decisive steps should be taken towards European unity as
 envisaged in the Single European Act.
GERMAN UNIFICATION
4. We are pleased that German unification is taking place under
 a European roof.  The Community will ensure that the
 integration of the territory of the German Democratic
 Republic into the Community is accomplished in a smooth and
 harmonious way.  The European Council is satisfied that this
 integration will contribute to faster economic growth in the
 Community and agrees that it will take place in conditions
 of economic balance and monetary stability.  The integration
 will become effective as soon as unification is legally
 established, subject to the necessary transitional
 arrangements. It will be carried out without revision of the
 Treaties.
5. During the period prior to unification the Federal
 Government will keep the Community fully informed of any
 relevant measures discussed and agreed between the
 authorities of the two Germanies for the purpose of aligning
 their policies and their legislation. Furthermore, the
 Commission will be fully involved with these discussions.
 In this period the German Democratic Republic will benefit
 from full access to the European Investment Bank, EURATOM
 and ECSC loan facilities, in addition to Community support
 in the context of the coordinated action of the Group of 24
 countries and with participation in EUREKA projects.
 As regards the transitional arrangements, the Commission
 will as soon as possible, and in the context of an overall
 report, submit to the Council proposals for such measures as
 are deemed necessary and the Council will take decisions on
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 these rapidly.  These measures, which will enter into force
 at the moment of unification, will permit a balanced
 integration based on the principles of cohesion and
 solidarity and on the need to take account of all the
 interests involved, including those resulting from the
 "acquis communautaire".  The transitional measures will be
 confined to what is strictly necessary and aim at full
 integration as rapidly and as harmoniously as possible.
INTERNAL AND EXTERNAL DEVELOPMENT OF THE COMMUNITY
6. In parallel with the process of the unification of Germany,
 the Community will continue its internal and external
 development.  To this end the European Council asks the
 relevant Community bodies to follow the guidelines set out
 below :
  i) The European Council is satisfied with progress achieved
     so far towards establishing the single market without
     internal frontiers in which people, goods, services and
     capital can circulate freely from the end of 1992 in
     accordance with the provisions of Article 8 (a) of the
     Treaty.  We are determined to ensure that the objectives
     laid down in the Single Act are fully and effectively
     achieved in all respects.
 ii) The Community will establish in stages an Economic and
     Monetary Union in accordance with the principles of
     economic and social cohesion and in accordance with the
     conclusions of the European Councils in Madrid and
     Strasbourg.  The preparations for the Intergovernmental
     Conference on EMU which are already well advanced will
     be further intensified with a view to permitting that
     Conference, which will open in December 1990, to
     conclude its work rapidly with the objective of
     ratification by Member States before the end of 1992.
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iii) The Community will act as a political entity on the
     international scene, open to good relations with other
     countries and groups of countries.
 iv) The movement to restore freedom and democracy in Central
     and Eastern Europe and the progress already made, and in
     prospect, in arms negotiations, now make it both
     possible and necessary to develop a wider framework of
     peace, security and cooperation for all of Europe.  To
     this end the Community and its Member States will play a
     leading role in all proceedings and discussions within
     the CSCE process and in efforts to establish new
     political structures or agreements based on the
     principles of the Helsinki Final Act while maintaining
     existing security arrangements which Member States have.
     The European Council asks Foreign Ministers to prepare
     this work in accordance with guidelines in Annex I.
  v) The Community attaches great interest in and will work
     actively for early agreement with our EFTA partners on
     the establishment of a European Economic Area.
CENTRAL AND EASTERN EUROPE
With regard to the countries of Central and Eastern Europe the
European Council welcomes the wide range of measures adopted or
put in place over the past months, including the agreement on
the European Bank for Reconstruction and Development, the
conclusion of trade and cooperation agreements between the
Community and most of those countries, the Community programmes
on professional training and student exchange soon to be
finalised and other important actions in the context of the
G-24 cooperation.  The European Council is of the opinion that
transfers of private capital and investments towards these
countries should be encouraged and invites the Commission to
study the implementation of the most appropriate accompanying
measures (e.g. reassurance, granting of guarantees).
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The European Council agrees that the action within the
framework of G-24 should be extended to the GDR,
Czechoslovakia, Yugoslavia, Bulgaria, and Romania.  The
Community will work actively for the adoption of an action plan
for assistance to these countries at the forthcoming G-24
ministerial meeting.
Discussions will start forthwith in the Council, on the basis
of the Commission's communication, on Association Agreements
with each of the countries of Central and Eastern Europe which
include an institutional framework for political dialogue.  The
Community will work to complete Association negotiations with
these countries as soon as possible on the understanding that
the basic conditions with regard to democratic principles and
transition towards a market economy are fulfilled.
OTHER COUNTRIES
i)  In parallel with its European commitment the Community is
   determined to pursue its major role as a responsible
   participant at a wider international level.
ii) With regard to its relations with the United States, the
   Community will make the fullest use of and further develop
   its close transatlantic relations based on regular
   contacts at the highest levels. In this context we express
   our satisfaction with the understanding reached between
   the President of the European Council and the President of
   the United States on the holding of one meeting at that
   level during each Community Presidency.  We agree that
   this and the other regular meetings including meetings
   with the Commission provide a good framework for the
   further expansion of relations between the Community and
   the United States.
iii) The Community will intensify its policy of good relations
   with the Mediterranean countries, based on more effective
   co-operation, taking into consideration the particular
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   problems of each of them.  It will pursue its special
   relationship with the ACP countries and it will intensify
   its cooperation with countries in Asia and Latin America.
   It remains fully committed to and will contribute to a
   successful conclusion of the Uruguay Round multilateral
   negotiations.  The Community will pursue its cooperation
   with Japan, Canada, Australia and other OECD members.
POLITICAL UNION
7. The European Council discussed the proposal of President
 Mitterrand and Chancellor Kohl on Political Union and the
 paper submitted by the Belgian Government on the same
 subject.
 In this context the European Council confirmed its
 commitment to Political Union and decided on the following
 steps:
  i) a detailed examination will be put in hand forthwith on
     the need for possible treaty changes with the aim of
     strengthening the democratic legitimacy of the union,
     enabling the Community and its Institutions to respond
     efficiently and effectively to the demands of the new
     situation, and assuring unity and coherence in the
     Community's international action.
 ii) Foreign Ministers will undertake this examination and
     analysis, and prepare proposals to be discussed at the
     European Council in June with a view to a decision on
     the holding of a second intergovernmental conference to
     work in parallel with the conference on Economic and
     Monetary Union with a view to ratification by Member
     States in the same timeframe.
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DRUGS AND INTERNATIONAL ORGANIZED CRIME
8. The European Council expresses its serious concern at the
 threat posed by the abuse of and illicit trade in narcotic
 drugs and its link with international organised crime.  This
 trade causes tragic damage to lives and waste of human
 potential.  It has now also become an international issue,
 with drug traffickers disposing of very considerable
 financial and other resources.  The threat concerns both
 developed and developing countries and calls for action at
 the international level.
 The European Council asks the high-level coordinators group,
 CELAD, in close consultation with the Commission, to report
 to the General Affairs Council with a view to the meeting of
 the European Council in June on measures to bring about more
 effective coordination and on priorities for action by the
 Community and Member States in the context of a concerted
 action against drug abuse and illicit production,
 distribution and sale of narcotic drugs.
CYPRUS
9. The European Council agreed the conclusions in Annex II.
                       _____________
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                                                     ANNEX I
                    GUIDELINES ON CSCE
                  (Dublin, 28 April 1990)
The  changes in Europe that we are witnessing bring  with  them
the opportunity of overcoming the division of our continent and
building  a  new  system of relations  between  the  States  of
Europe, based on the aims and principles of the Helsinki  Final
Act.  The  CSCE process, which has already made  a  significant
contribution  to change, will serve as a framework  for  reform
and stability on our continent, and should be developed in  new
directions. The Community and its member States are  determined
to assume their responsibilities wholeheartedly and  to play  a
full part in the CSCE process; they are considering appropriate
arrangements to achieve this end.
There  is  now wide agreement on the desirability of  a  Summit
Meeting of the CSCE participating States before the end of this
year.  This would mark the starting point for a  more  advanced
stage  of  the Helsinki process.  The  decisions  necessary  to
launch  the Summit process should be taken as soon as  possible
so  as  to  ensure  that the  preparations  essential  for  its
successful  outcome  are completed in good  time.  This  should
include  an early decision on the opening date and venue  of  a
Preparatory  Committee as well as on the venue of  the  Summit.
For  their  part,  the  Twelve  propose  that  the  Preparatory
Committee could start in July, and the Summit itself could take
place in Paris.
The Community and its member States are continuing  intensively
with their preparations for the Summit. In their Declaration of
20 February, the Twelve have set out the issues  which in their
view are appropriate for consideration at the Summit. They look
in  particular  towards  a balanced  development  of  the  CSCE
encompassing  notably the development of  pluralist  democracy,
the rule of law, human rights, better protection of minorities,
human    contacts,   security,   economic   cooperation,    the
environment,  further  cooperation  in  the  Mediterranean  and
cooperation in the field of culture.
The  CSCE  Summit  should  make it  possible  to  consider  new
institutional arrangements within the CSCE process, taking also
into account proposals made by the Central and Eastern European
countries,  including the possibility of  regular  consultative
meetings of Foreign Ministers and the establishment of a  small
administrative   Secretariat.   It  will   also   provide   the
opportunity to consider the relationship that should exist
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between the CSCE process and other relevant institutions,  such
as  the  Council  of Europe.  It  should  mandate  the  Foreign
Ministers of the 35 accordingly.
Already, the new climate of cooperation that prevails has  made
possible  a practical and forward-looking outcome to  the  Bonn
Conference  on  Economic  Cooperation in  Europe.  The  results
obtained  there  will serve as guidelines for  future  economic
cooperation  between  the  35.  The  Community  made  a   major
contribution  to  the  success  of  the  Conference.  The  Bonn
Document,   which  acknowledges  the  link  between   political
pluralism  and market economies, provides a  basic  orientation
for future economic relations and cooperation in Europe.
The  Twelve look forward to a similar spirit of cooperation  at
the Copenhagen Conference on the Human Dimension, and trust  it
will  be  possible to achieve major substantial  results  there
also, results which will serve to strengthen the commitment  of
all  the  participating States to human rights and  enable  all
Europeans  to  enjoy to the full their fundamental  rights  and
freedoms.
The  Twelve  reaffirm  the  importance  of  the   Mediterranean
dimension  of the CSCE.  Being of the view that the  experience
of   the  CSCE  process  can  have  positive  effects  on   the
Mediterranean  basin,  they hope that the meeting in  Palma  de
Mallorca  will enable progress to be made in this dimension  of
the CSCE process.
The  Twelve  are committed to a secure and  stable  balance  of
forces  in  Europe  at lower levels. They  look  to  an  early,
successful conclusion to the negotiation on Conventional  Armed
Forces in Europe, which is taking place in the framework of the
CSCE,  as  well as to the adoption of further  Confidence-  and
Security-Building   Measures.  They  affirm  once   again   the
importance  of  continuing negotiations in the  field  of  arms
control  and the building of security and confidence in  Europe
with  a view to achieving a lasting framework for  security  in
Europe.
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                                           ANNEX II
CYPRUS
The European Council discussed the Cyprus question in the light
of the impasse in the intercommunal dialogue.
The Twelve, deeply concerned at the situation, fully reaffirm
their previous declarations and their support for the unity,
independence, sovereignty and territorial integrity of Cyprus
in accordance with the relevant UN resolutions.  They stress
the need for a prompt resumption of the intercommunal talks on
the basis of the mission of good offices of the
Secretary-General, as was recently reaffirmed by Resolution
649/90 of the Security Council.
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