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   The  European Council welcomed the outcome of the Danish  referendum  and
   the  prospect  of a rapid completion of ratification  procedures  on  the
   Maastricht  Treaty  in  all Member States.  It is  determined  that  this
   important  step  should  mark  the  ending  of  a  prolonged  period   of
   uncertainty  on  the Community's direction and be the  occasion  for  the
   Union  to meet with renewed vigour and determination the many  challenges
   with which it is faced internally and externally, making full use of  the
   possibilities  offered by the new Treaty. The principles spelled  out  by
   the  European Councils in Birmingham and Edinburgh  regarding  Democracy,
   subsidiarity and openness will guide the implementation of the new Treaty
   with a view to bringing the Community closer to its citizens.

   The European Council in Copenhagen gave special attention to, on the  one
   hand, action aimed at tackling the economic and social problems faced  by
   the   Community   and  particularly  the  unacceptably  high   level   of
   unemployment and, on the other hand, to the wide range of issues relating
   to peace and security in Europe. It recognizes that only by proving  that
   the  Community is instrumental in contributing to the security and  well-
   being  of  all the citizens can the Community count on  continued  public
   support for the construction of Europe.

   The  members of the European Council held an exchange of views  with  the
   President  of the European Parliament. The discussion took place  against
   the background of the increased political and legislative role which  the
   European  Parliament  will  have  under the  Treaty  of  Maastricht.  The
   European  Council underlined the importance of making the  best  possible
   use of those provisions while fully respecting the institutional  balance
   set  out in the Maastricht Treaty. It at the same time stressed the  need
   for  national Parliaments to be more closely involved in the  Community's
   activities. It welcomed the growing contacts between national Parliaments
   and the European Parliament.

    1. Growth, Competitiveness and Unemployment

       The   European  Council  is  deeply  concerned  about   the   present
       unemployment   situation  and  the  grave  dangers  inherent   in   a
       development where an increasing number of people in the Community are
       becoming  permanently detached from the labour market.  The  European
       Council  pledged  the determination of the Community and  its  Member
       States  to restore confidence through the implementation of  a  clear
       strategy - covering both the short term and medium to long term -  to
       restore sustainable growth, reinforce the competitiveness of European
       industry and reduce unemployment.

       Short term measures

       The  European Council agreed that concerted economic action based  on
       the  principles set out in "The plan of action of Member  States  and
       the   Community  to  promote  growth  and  to  combat   unemployment"
       established by the European Council in Edinburgh, should continue  to
       be  given  the highest priority. It welcomed the initial  package  of
       national and Community measures established by the Council  (ECO/FIN)
       at  its  meeting on 19 April and noted with  satisfaction  that  some
       Member States have since then implemented new and additional measures
       with the same objective in mind.

       The promotion of investment is crucial.

       The European Council agreed that on the national level this objective
       should  be  given  particular importance by Member  States  in  their
       national  budget planning for 1994. The bringing forward in  time  of
       public  investment,  in  particular  on  infrastructure,  environment
       protection  and  urban renewal, as well as the promotion  of  private
       investment  (with  special  attention  to  small  and  medium   sized
       enterprises and housing), are of particular importance in the present
       phase of the economic cycle in Europe. However, lower taxes on labour
       would enhance European industrial competitiveness. In connexion  with
       this, consideration should also be given to fiscal measures to reduce
       consumption of scarce energy resources.

       Although  further national action will depend on each Member  State's
       room  for manoeuvre, full account should be taken of  the  multiplier
       effect  of the internal market, which supports national policy  aimed
       at economic recovery, and of the positive effects on national budgets
       which would result from increased growth.

       On  the  Community  level the European Council  invited  the  EIB  in
       cooperation  with  the Commission to increase by 3  billion  ECU  the
       temporary facility of 5 billion ECU agreed in Edinburgh and to extend
       its   duration  beyond  1994;  2 billion  ECUs  would  be   for   the
       transeuropean  networks  and  1 billion ECUs  for  strengthening  the
       competitiveness of European small and medium-sized  enterprises.  The
       Council  (ECO/FIN) is invited to examine how the part  available  for
       small  and medium-sized enterprises could benefit from interest  rate
       subsidies  to a maximum of 3 percentage points over five  years.  The
       interest  subsidy would be linked to employment creation (similar  to
       existing  ECSC loans) and would be funded within  existing  financial
       perspectives.  The  European Council will review the amount  for  the
       small  and  medium-sized  enterprises  facility  at  its  meeting  in
       December in the light of its utilization.

       The   European   Council  underlined  the  importance  of   a   rapid
       implementation of the Community's structural policy programme for the
       period  1994-1999.  The  implementation  of  this  160  billion   ECU
       programme  (equal  in  real terms to three  times  the  Marshall  Aid
       programme)  is  essential  for cohesion, as well as  for  growth  and
       employment  creation  not  only in the less  favoured  areas  of  the
       Community   but  throughout  the  Community.  The  European   Council
       therefore  called on the Institutions to ensure the  formal  adoption
       before  the end of July 1993 of the Structural Funds Regulations.  It
       noted that the President of the European Parliament agreed with  this
       objective.  The legal texts as well as the  practical  implementation
       should  fully respect the agreement reached on the DELORS  II-package
       in Edinburgh.

       In  addition, and in order to boost ahead of schedule the  investment
       projects under the Structural Funds, the European Council agreed that
       the  Council  (ECO/FIN) will examine a proposal from  the  Commission
       that  would  enable Member States to draw on  a  Community  "bridging
       facility" at market interest rates up to a maximum of 5 billion  ECUs
       available  until the end of 1995.  Repayment of this  Community  loan
       would  be  drawn from structural fund  appropriations  in  subsequent
       years.  Similar arrangements could be applied to the Cohesion Fund.

       The  European Council underlined the importance of  fully  exploiting
       the new provisions in the Maastricht Treaty relating to the promotion
       of  Transeuropean networks of the highest quality, in the context  of
       promoting  economic  and industrial growth, cohesion,  the  effective
       functioning of the internal market and encouraging European  industry
       to  make  full use of modern  information  technology.  The  European
       Council  invited the Commission and the Council to complete by  early
       1994  the  network  plans in all  the  relevant  sectors  (transport,
       telecommunication  and  energy) while noting  with  satisfaction  the
       progress made on high speed trains, roads, inland waters and combined
       transport.  It  also called on the Council to  consider  rapidly  the
       Commission  proposals  on telematic networks. The Council  will  also
       examine  on  a proposal from the Commission the link up  between  the
       peripheral Member States and the central regions of the Community.

       The  extended  duration  and the increased amount  of  the  Edinburgh
       temporary  facility  now  agreed  will  permit  a  further  important
       contribution  to  these networks. Transeuropean projects  which  have
       received  the endorsement of the Community through a "Declaration  of
       Community  interest"  will be privileged under  this  instrument  and
       other Community financial instruments.

       Medium   and  long-term  measures  to  promote  competitiveness   and

       The  European  Council agreed that macro-economic  policy  should  be
       supplemented  by structural measures in each Member State adapted  to
       their  individual characteristics in order to achieve  a  significant
       reduction   of  the  unacceptably  high  level  of  unemployment   in
       particular  among young people, those unemployed for a long time  and
       the most socially excluded.

       The  European  Council  heard an analysis by  the  President  of  the
       Commission on the competitive situation of the European  economy.  It
       fully endorsed his diagnosis.

       The European Council welcomed the presentation by President Delors of
       a medium-term European plan for economic revival, "Entering the  21st
       century",  attached to these conclusions (see Annex I). The  European
       Council invited the Commission to present a white paper on a  medium-
       term   strategy  for  growth,  competitiveness  and  employment   for
       consideration  at its meeting of December 1993.  Member  States  will
       submit to the Commission, before 1 September, proposals for  specific
       elements  which  might be included in this initiative.  The  European
       Council  invited  the Commission to prepare its white paper  in  good
       time for it to be taken into consideration in the preparatory work to
       be done by the Council (ECO/FIN) with regard to the broad  guidelines
       for  economic  policy for the Community and its  Member  States.  The
       social partners will be consulted by the Commission.

       The European Council recalled that under the provisions of the Treaty
       on  European Union it has to examine such guidelines. It invited  the
       Council (ECO/FIN) on a proposal from the Commission to submit to  the
       European  Council in Brussels in December draft guidelines  based  on
       the  objectives  set out in the previous paragraphs  concerning  both
       short-term  and  medium-term  aspects,  with  a  view  to   promoting
       sustainable non-inflationary growth respecting the environment.

       Monetary and Exchange rate policy

       Monetary  policy and exchange rate stability are key factors in  both
       the short and medium-term components of a strategy to restore  growth
       and   reduce  unemployment.  The  European  Council  agreed  on   the
       overriding   importance  of  creating  the  budgetary  and   economic
       conditions  for  rapidly  bringing interest  rates  in  Europe  down,
       thereby  narrowing the existing gap between interest rates in  Europe
       and interest rates in other major industrial countries. Movements  in
       this  direction will be essential for economic recovery and in  order
       to promote investment in Europe.

       The  European  Council reviewed recent developments in  the  exchange
       rate situation. It felt that the orientations agreed at the  informal
       meeting  of Economic and Finance Ministers in Kolding in relation  to
       the EMS go in the right direction. The European Council recalled that
       the  exchange rate policy of all Member States is a matter of  common
       interest.  It  underlined  the essential role to  be  played  by  the
       European  Monetary  Institute  (EMI) in this  area.  It  invited  the
       Commission  to  present proposals on all the  necessary  implementing
       measures relating to the second stage of Economic and Monetary Union,
       so that they can be adopted by the Council as soon as possible  after
       entry into force of the Treaty and before 1 January 1994.

       International aspects

       The  effect of action by the Community and its Member States will  be
       increased  through  international  coordination of  policy.  In  this
       connection,  the European Council welcomed the outcome of  the  joint
       EC-EFTA  meeting of Economic and Finance Ministers held in April  and
       invited the Council (ECO/FIN) to continue to maintain close  contacts
       with  the  EFTA  countries in this area. With regard  to  the  global
       economy  the  European Council looks to the G-7 summit  in  Tokyo  to
       provide an agreed basis for a determined effort to promote growth  in
       the world economy.

   2.  The single market and common policies

       At  a  time  when  the  problems  of  creating  economic  growth  and
       stimulating employment are of increasing concern, the existence of  a
       large  single market of 350 million people is a major asset  for  the

       The   European   Council  welcomed  the  recent  decisions   of   the
       Internal Market  Council and called on it to adopt rapidly  the  last
       remaining  measures  which  are of major importance  for  the  proper
       operation of the single market.

       On  transport, the European Council noted with satisfaction that  the
       recent  agreement on road transport taxation has cleared the way  for
       full  liberalization  of the activities of road hauliers  within  the
       Community to take its place beside the existing liberalization of air
       and maritime transport.

       The  single market has been a legal reality since 1 January 1993;  it
       is essential that it should also become a smoothly-running  practical
       reality,  improving the competitiveness of the European  economy  and
       yielding  maximum  economic and social benefit for  the  citizen.  To
       that  end,  the  European Council called on  all  concerned,  and  in
       particular  the  Commission  and the  competent  authorities  of  the
       Member States,  to work together to ensure that the single market  is
       administered efficiently with as little red-tape as possible.

       The  European  Council  stressed that the  Single  Market  cannot  be
       brought  about  without the full implementation of free  movement  of
       persons as well as of goods, services and capital, in accordance with
       Article  8A of the Treaty. This requires measures in particular  with
       regard to cooperation aimed at combatting crime and drug  trafficking
       and ensuring effective control of the external borders.

       The European Council invited the responsible Ministers to bring their
       work  on  these measures forward as a matter of great  urgency.  With
       regard  to  the  last  outstanding issue  on  the  External  Frontier
       Convention,  the  European Council noted with satisfaction  that  the
       Member  States concerned have expressed their determination  to  make
       every  effort  to  reach a mutually acceptable solution  as  soon  as

   3.  GATT

       The European Council welcomed the Commission's report on progress  in
       the  Uruguay Round to date. It underlined the need for the  Community
       to  continue  to play an active part in  achieving  further  progress
       while preserving the European identity throughout the negotiations.

       The  European Council stressed that it was essential to relaunch  the
       multilateral  process  in Geneva as soon as possible on  all  topics,
       including agriculture, in order to complete a comprehensive,  durable
       and balanced agreement before the end of the year. This was  urgently
       needed  in order to create the new, rules-based world trading  system
       in  which unilateral action is ruled out. A round concluded  on  this
       basis will promote the durable expansion of international trade which
       is  a  key to the promotion of economic growth and  job  creation  in
       Europe and throughout the world.

       Early  identification of the main elements of a large  market  access
       component  and real progress on services and  intellectual  property,
       including  contributions  from  all  GATT  partners,  would  help  to
       maintain momentum and pave the way for the conclusion in time of  the
       final package.

   4.  Enlargement

       The  European  Council  took  note of  progress  in  the  enlargement
       negotiations with Austria, Finland, Sweden and Norway. It noted  that
       the  initial difficulties encountered in launching  the  negotiations
       had  now  been  overcome and that the pace of  the  negotiations  was
       speeding  up. It recalled that the negotiations will, to  the  extent
       possible, be conducted in parallel, while dealing with each candidate
       on its own merit.

       The  European  Council invited the Commission, the Council,  and  the
       candidate   countries  to  ensure  that  the   negotiations   proceed
       constructively and expeditiously. The European Council is  determined
       that the objective of the first enlargement of the European Union  in
       accordance with the guidelines laid down by the Lisbon and  Edinburgh
       European Councils should become a reality by 1 January 1995.

   5.  Relations with Malta and Cyprus

       The  European Council considered that its guidelines with  regard  to
       enlargement with the EFTA countries shall be without prejudice to the
       situation  of other countries which have applied to join  the  Union.
       The Union will consider each of these membership applications on  its
       own merits.

       The  European Council welcomed the Commission's intention to  present
       shortly  its opinions on Malta and on Cyprus. These opinions will  be
       examined  rapidly  by  the  Council  taking  into  consideration  the
       particular situation of each of the two countries.

   6.  Relations with Turkey

       With  regard  to Turkey, the European Council asked  the  Council  to
       ensure  that  there  is  now  an  effective  implementation  of   the
       guidelines laid down by the European Council in Lisbon on intensified
       cooperation and development of relations with Turkey in line with the
       prospect  laid  down  in the association agreement of  1964  and  the
       protocol  of  1970  as far as it relates to the  establishment  of  a
       customs union.

   7.  Relations with the Countries of Central and Eastern Europe

   A.  The Associated Countries

    i)     The European Council held a thorough discussion on the  relations
           between  the Community and the countries of Central  and  Eastern
           Europe  with  which  the  Community has  concluded  or  plans  to
           conclude Europe agreements ("associated countries"), on the basis
           of  the Commission's communication prepared at the invitation  of
           the Edinburgh European Council.

   ii)     The  European Council welcomed the courageous efforts  undertaken
           by  the associated countries to modernize their economies,  which
           have been weakened by 40 years of central planning, and to ensure
           a  rapid  transition to a market economy. The Community  and  its
           Member States pledge their support to this reform process.  Peace
           and security in Europe depend on the success of those efforts.

   iii)    The  European Council today agreed that the associated  countries
           in Central and Eastern Europe that so desire shall become members
           of  the European Union. Accession will take place as soon  as  an
           associated   country  is  able  to  assume  the  obligations   of
           membership  by satisfying the economic and  political  conditions

           Membership  requires  that  the candidate  country  has  achieved
           stability  of  institutions guaranteeing democracy, the  rule  of
           law,  human rights and respect for and protection of  minorities,
           the  existence  of a functioning market economy as  well  as  the
           capacity  to  cope with competitive pressure  and  market  forces
           within the Union. Membership presupposes the candidate's  ability
           to  take on the obligations of membership including adherence  to
           the aims of political, economic and monetary union.

           The Union's capacity to absorb new members, while maintaining the
           momentum   of   European  integration,  is  also   an   important
           consideration  in the general interest of both the Union and  the
           candidate countries.

           The European Council will continue to follow closely progress  in
           each  associated  country towards fulfilling  the  conditions  of
           accession to the Union and draw the appropriate conclusions.

   iv)     The European Council agreed that the future cooperation with  the
           associated  countries  shall  be  geared  to  the  objective   of
           membership  which has now been established. In this  context  the
           European Council approved the following:

           -  The  Community  proposes that the associated  countries  enter
              into  a structured relationship with the Institutions  of  the
              Union  within  the  framework of  a  reinforced  and  extended
              multilateral  dialogue and concertation on matters  of  common
              interest.  The arrangements, which are set out in Annex II  to
              these  conclusions,  include dialogue and  concertation  on  a
              broad range of topics and in several fora. Where appropriate -
              in  addition to regular meetings between the President of  the
              European  Council  and the President of  the  Commission  with
              their  counterparts  from  the associated  countries  -  joint
              meetings of all the Heads of State and Government can be  held
              to discuss specific predetermined issues.

           -  The  European Council, recognizing the crucial  importance  of
              trade  in  the  transition  to a  market  economy,  agreed  to
              accelerate the Community's efforts to open up its markets.  It
              expected  this  step forward to go hand in hand  with  further
              development  of trade between those countries  themselves  and
              between  them  and  their  traditional  trading  partners.  It
              approved  the  trade concessions established  by  the  Council
              (General  Affairs)  at its meeting on 8 June. It  invited  the
              Council  to  adopt  on  a proposal  from  the  Commission  the
              necessary legal texts before the summer holidays.

           -  The  Community will continue to devote a considerable part  of
              the  budgetary resources foreseen for external action  to  the
              Central and Eastern European Countries, in particular  through
              the PHARE programme. The Community will also make full use  of
              the possibility foreseen under the temporary lending  facility
              of the EIB to finance transeuropean network projects involving
              the   countries   of  Central  and   Eastern   Europe.   Where
              appropriate,  part of the resources under the PHARE  programme
              may  be  used  for  major  infrastructural  improvements,   in
              accordance with the arrangements agreed by the General Affairs
              Council on 8 June.

           -  The European Council, welcoming the possibility offered to the
              associated  countries to participate in  Community  programmes
              under  the Europe Agreements, invited the Commission  to  make
              proposals  before the end of the year for opening  up  further
              programmes  to the associated countries, taking as a point  of
              departure   those  programmes  which  are  already  open   for
              participation by the EFTA-countries.

           -  The   European   Council   underlined   the   importance    of
              approximation  of  laws in the associated countries  to  those
              applicable in the Community, in the first instance with regard
              to  distortion  of  competition and, in  addition,  -  in  the
              perspective  of  accession  -to  protection  of  workers,  the
              environment  and consumers. It agreed that officials from  the
              associated  countries should be offered training in  Community
              law  and  practice and decided that a task force  composed  of
              representatives of the Member States and the Commission  shall
              be established to coordinate and direct this work.

           -  The precise modalities regarding the above matters are set out
              in Annex II.

   B.  Other Central and Eastern European Countries

       The European Council discussed the economic situation in Albania.  It
       welcomed  the conclusions of the Council (ECO/FIN) on 7 June and  the
       recognition by the Community of the need to ensure adequate  support,
       through  grants, loans or both to Albania. The European Council  also
       underlined  the  importance  of making full  use  of  the  provisions
       relating  to political dialogue foreseen under the present  agreement
       with Albania.

       In  order  to strengthen the trade and commercial links  between  the
       three  Baltic States and the Community, the European Council  invited
       the Commission to submit proposals for developing the existing  trade
       agreements  with  the Baltic States into  free-trade  agreements.  It
       remains the objective of the Community to conclude Europe  Agreements
       with the Baltic states as soon as the necessary conditions have  been

   8.  Pact on stability in Europe

       The European Council discussed the French proposal for an  initiative
       to be taken by the European Union in favour of a Pact on stability in
       Europe. This initiative is directed towards assuring in practice  the
       application  of  the  principles agreed by  European  countries  with
       regard to respect for borders and rights of minorities. The  European
       Council agreed that recent events in Europe have shown that action in
       these areas is timely and appropriate. It welcomed the idea of  using
       the  instrument of "Joint Action" in accordance with  the  procedures
       provided for in the Common Foreign and Security policy.

       The European Council invited the Council (General Affairs) to examine
       the  proposal and report to its meeting in December 1993 with a  view
       to convening a preparatory conference on the pact.

   9.  Russia

       The  European  Council welcomed the new initiatives in  the  area  of
       political reforms in Russia undertaken by President Yeltsin. It hopes
       these  efforts  will be successful and  contribute  to  consolidating
       democracy and a market economy.

       The  European  Council  welcomed the progress made  recently  in  the
       negotiations on a partnership and cooperation agreement with  Russia.
       It  expressed its hope for an early conclusion of such an  agreement,
       in  the  context of creating a contractual relationship  between  the
       Community  and Russia which reflects the political and economic  role
       which Russia plays on the international scene and where consultations
       -  also  at  the  highest  level -  are  a  regular  feature  of  the

       The  European  Council  is looking forward to  continuing  the  close
       cooperation  with  Russia  in  the political  field  and  to  jointly
       contributing to the solution of international crises. This is seen as
       an  essential contribution to peace and stability in Europe  and  the
       world.  The  European  Council agreed to  propose  regular  Community
       meetings  between its President, the President of the Commission  and
       the Russian President.

       The European Council expressed its readiness to continue and  enhance
       its support for the Russian reform process. The coming G-7 summit  is
       seen  as  a  timely opportunity to further  the  substantial  efforts
       already  made  to support the reform measures underway in  Russia  as
       well  as  other countries of the former Soviet  Union.  The  European
       Council  took stock of the preparation of the discussion at  the  G-7
       summit on aid to Russia. The Community and its Member States attached
       particular  importance  to progress in Tokyo on  issues  relating  to
       nuclear  safety  (power stations, nuclear waste, and  dismantling  of
       nuclear weapons). It welcomed in this context the substantial follow-
       up  now  being  given to the guidelines laid  down  by  the  European
       Council  in  Lisbon including the agreement recently reached  by  the
       Council  (ECO/FIN)  on  EURATOM loans aimed at  improving  safety  in
       nuclear power stations in former Soviet Union republics as well as in
       Central and Eastern European countries.

       The  European  Council also stressed the importance  of  putting  the
       European Energy Charter into practical reality.

       The  European Council pledged the support of the Community  to  other
       concrete  steps  to promote the efficiency of  aid  directed  towards
       Russia and to concrete projects aimed at accelerating the process  of
       privatization, in particular through appropriate training of  Russian
       entrepreneurs  in the context of technical assistance.  The  European
       Council  emphasized that the effectiveness of aid efforts depends  on
       the existence of stability oriented economic policies in Russia.

   10. Ukraine

       The European Council expressed keen interest in expanding cooperation
       with Ukraine. Substantial progress towards the fulfilment by  Ukraine
       of its commitments under the Lisbon protocol to ratify Start 1 and to
       accede  to  the NPT as a non-nuclear weapons state is  essential  for
       Ukraine's full integration into the international community and would
       promote  the development of its relations with the Community and  its
       Member States.

   11. Former Yugoslavia

       The  European Council adopted the declaration  on  Bosnia-Herzegovina
       set out in Annex III.

   12. Relations with the Maghreb countries

       The   European  Council  recalled  its  determination  to   see   the
       relationship  with  the  Maghreb  countries  placed  at  a  level  of
       importance  and intensity which corresponds to the close links  which
       have been formed by geography and history. This should be done within
       the  framework of an upgraded partnership between the Union  and  the
       individual Maghreb countries.

       The European Council invited the Council to approve rapidly the draft
       directives presently being examined for a partnership agreement  with

       It  took  note  with satisfaction of the  Commission's  intention  to
       submit  rapidly  draft directives for the negotiation  of  a  similar
       agreement with Tunisia.

   13. Conclusions reached by Foreign Ministers

       The European Council took note of the conclusions reached by  Foreign
       Ministers on the issues set out in Annex IV.

   14. Common Foreign and Security policy - Preparatory work on security

       The  European  Council  noted the preparatory work  already  done  by
       Foreign Ministers on security in connection with the mandate from the
       Edinburgh  European Council and invited them to continue  their  work
       with a view to defining the necessary basic elements for a policy  of
       the Union by the date of entry into force of the Treaty.

   15. A Community close to its citizens

       The  European  Council invited all institutions to  ensure  that  the
       principles  of subsidiarity and openness are firmly anchored  in  all
       spheres  of Community activity and fully respected in the  day-to-day
       operations of the institutions.

       As regards the principle of subsidiarity, the European Council  noted
       with  satisfaction  that the Commission is now  submitting  proposals
       only  when it considers that they fulfil the  subsidiarity  criteria,
       and  welcomed in general the substantial reduction in the  volume  of
       Community  legislation  foreseen  in  the  Commission's   legislative
       programme for 1993 compared to earlier years. The wider  consultation
       by  the Commission before submitting important new proposals and,  in
       particular,  the  use  of "green papers" relating  to  important  new
       activities  as well as a cost and benefit analysis of  new  proposals
       are also highly promising. It looked forward to the completion before
       the  European  Council  in December of  the  Commission's  review  of
       existing  and  proposed legislation with regard to  the  subsidiarity

       The European Council noted with satisfaction that the Council and the
       Commission are now applying the principles, guidelines and procedures
       on  subsidiarity  decided  at Edinburgh as an integral  part  of  the
       decision making procedure. It hopes that the European Parliament will
       soon be able to join in this effort.

       On  openness,  the European Council noted the first  steps  taken  in
       response  to  the  conclusions  of  the  Edinburgh  European  Council
       regarding  the  opening  of certain Council debates  to  the  public,
       simplification   and  codification  of  Community   legislation   and
       information  in general. It confirmed its commitment to continue  the
       process of creating a more open and transparent Community.

       In  the area of public access to information, it invited the  Council
       and  the Commission to continue their work based on the principle  of
       the  citizens having the fullest possible access to information.  The
       aim  should be to have all necessary measures in place by the end  of

       The European Council invited the European Parliament and the  Council
       to   settle   the  last  outstanding  issues  with  regard   to   the
       establishment  to the Ombudsman in time for the entry into  force  of
       the Maastricht Treaty.

   16. Fraud affecting the Community

       The  European  Council  underlined the importance  of  continuing  to
       combat  fraud  and irregularities in connection  with  the  Community
       budget,  both  in view of the sums involved and in order  to  promote
       confidence   in  the  construction  of  Europe.  It  underlined   the
       importance  of  fully implementing the provisions in  the  Maastricht
       Treaty according to which Member States are to take the same measures
       to  counter fraud affecting the financial interests of the  Community
       as  they  take  to  counter  fraud  affecting  their  own   financial
       interests. It looked forward to the report on further developments in
       the  Commission's  anti-fraud  strategy  together  with  the  related
       proposals.  It  invited the Commission to submit  such  proposals  in
       March 1994 at the latest.

   17. Racism and Xenophobia

       The  European  Council  strongly  condemned  the  recent  attacks  on
       immigrants  and refugees in its Member States and expressed its  deep
       sympathy with the innocent victims of such aggressions.

       The  European Council reiterated its strong resolve to fight  by  all
       available means intolerance and racism in all its forms.  It stressed
       that  such intolerance and racism is unacceptable in our present  day

       The  European Council confirmed the commitment to protect  everybody,
       including immigrants and refugees, against violations of  fundamental
       rights  and freedoms as embodied in constitutions and laws of  Member
       States,   the   European  Convention  on  Human  Rights   and   other
       international conventions, including the United Nations Convention on
       the Elimination of all forms of Racial Discrimination.

       The European Council recalled its previous declarations on racism and
       xenophobia  and decided to intensify the efforts to identify  and  to
       root  out  the causes. It pledged that Member States  will  do  their
       utmost to protect immigrants, refugees and others against expressions
       and manifestations of racism and intolerance.

                                     - - -


                           ENTERING THE 21ST CENTURY

   1.  Staying on course for Economic and Monetary Union

       A single currency would:

       .   consolidate the single market and create the necessary conditions
           for fair and productive competition;

       .   make  investment  more  attractive, both  in  the  Community  and
           outside, and generally stimulate saving to provide the  necessary
           funds for major infrastructure projects;

       .   have  a stabilizing effect on the international  monetary  system
           and   discourage   the  speculation  responsible  for   so   much
           instability and uncertainty.

       In order to achieve this, we must:

       .   get back on the road to convergence, which will boost growth  and
           create jobs throughout the Community - a positive sum game;

       .   provide   national  policies  and  business  strategies  with   a
           credible,  clear and comprehensible perspective and to this  end,
           make the single market productive;

       .   strengthen   the  link  between  European  integration  and   the
           aspirations of ordinary people by pointing out the benefits to be
           gained from developing the Community and extending those benefits
           to  other Euroepan countries, particularly those in  eastern  and
           central  Europe, with their enormous potential for growth,  which
           would benefit us all.

   2.  The Community as an open and reliable partner in the world

       .   The Community must keep up its efforts to bring the Uruguay Round
           to a swift conclusion with a balanced agreement covering all  the
           problems now outstanding.

       .   The  agreement  must pave the way for the transition of  a  world
           trade  organization to reflect the globalization of  markets  and
           business strategies.

       .   This   organization   must,  without  exception,  be   based   on
           multilateralism,  both  in spirit and in  practice.  The  way  it
           operates  must be determined by other economic realities such  as
           currency movements, capital flows, the need to share the cost  of
           environmental  protection  fairly  and  to  deliver  the   social
           progress  to which everyone has a right by a gradualist  approach
           compatible with economic progress.

   3.  Increased cooperation in the field of research and development

       We must:

       .   aim  to  devote  3%  of  Gross  National  Product  to   research,
           development and innovation (as against 2% at present);

       .   concentrate  Community action on what can complement and  enhance
           the policies of Member States and businesses; and

       .   at  European  level and with the support  provided  by  Community
           action,  create frameworks for cooperation between businesses  to
           help them harness innovation and adapt production processes.

   4.  An   efficient   network   of   transport   and    telecommunications

       .   Making  it easier and cheaper for people, goods and  services  to
           move  around  will increase the competitiveness of  the  European

       .   Efficient  infrastructure networks will be of  inestimable  value
           for regional planning and economic and social cohesion.

       .   We  must  give  ourselves ten years in  which  to  stimulate  the
           European  industries  involved in designing  and  building  these
           networks  (transport,  construction,  public  works,   etc.).  An
           overall  total of ECU 30 billion a year seems to be  a  realistic
           minimum target for expenditure in this field.

   5.  Common information area: the new technological revolution

       .   We must aim for a decentralized economy, with a properly  trained
           workforce  and an abundance of small and medium-sized  businesses
           all cooperating with one another.

       .   To  achieve  this,  we need to  create  a  "European  information
           infrastructure"  to serve as the real arteries of the economy  of
           the  future  and  to stimulate  the  information  industry  (i.e.
           telecommunications,  computers,  fibre  optics,  etc.)  with  the
           prospect  of abundant supply over a number of years.  An  initial
           investment  of ECU 5 billion is required, followed by a  ECU  5-8
           billion-a-year programme.

       .   We  must  also  set up European training courses  for  these  new
           trades and professions and encourage distance working by computer
           (not  only for people in the data-processing industry itself  but
           also  for those working in education, medicine, social  services,
           environmental  protection, urban planning ... and those  involved
           in combating modern-day scourges such as disease, drug abuse  and

   6.  Profound changes in our education systems

       The priorities here are:

       .   learning how to keep on learning throughout our lives;  combining
           knowledge with know-how;

       .   developing each individual's creativity and initiative;

       .   establishing  the right of each individual to  lifelong  training
           (all  young  people  would be given vouchers  entitling  them  to
           initial education and/or training later on).

   7.  Towards a new model of development

       .   Taking into account the environment will create new jobs.

       .   Taxing  scarce natural resources will make it possible to  reduce
           excessive  taxes  on  labour, thus  enhancing  Europe's  economic

       .   Increases in productivity must be used to improve the quality  of
           life  and  create  new jobs; this is the dynamic  view  of  work-
           sharing:  increasing  the number of jobs available to  cover  new
           qualitative  demands,  which  provide  a  large  range  of  still
           unexplored, if not unknown possibilities.

   8.  More active policies towards the labour market

       .   Priority must be given to providing everyone on the labour market
           with a job, activity or useful training.

       .   Rather  than  trying  to hold  back  technological  and  economic
           change, we must anticipate it and deal with it in good time.

       .   The  quality  and the number of job agencies and  similar  bodies
           must be increased so as to provide effective help to every person
           out of work (expenditure needs to rise from 0.1% of Community GDP
           to 0.5%).

                                     - - -

           ANNEX II



           With  a  view to accession and the  relevant  preparations  - and
           alongside  the  bilateral structure of  the  Europe  Agreements -
             there will be set up, with the countries of Central and Eastern
           Europe   linked  to  the  Community  by  Europe   Agreements,   a
           multilateral   framework   for  a   strengthened   dialogue   and
           consultation on matters of common interest.

           The  framework will involve the holding of meetings  between,  on
           the  one hand, the Council of the Union and, on the  other  hand,
           all the associated CCEE on matters of common interest, decided in
           advance, arising in the Union's areas of competence, i.e.:

           -  Community  areas, especially with a trans-European  dimension,
              including   energy,   environment,  transport,   science   and
              technology, etc.;

           -  Common foreign and security policy;

           -  Home and judicial affairs.

           These meetings will be of an advisory nature.  No decisions would
           be  taken.  If conclusions requiring  operational  implementation
           were  to  emerge,  they will be implemented  in  the  appropriate
           institutional   framework   (ordinary  Community   procedure   or
           Association Council with each of the associated States).

           The  meetings  will  be  prepared for  internally  by  the  usual
           procedures, with the particular aim of establishing, according to
           the subjects discussed, the position to be taken.  They will also
           be the subject of preparatory contacts with the CCEE.

           In  addition  to  the application of the  general  structure  for
           dialogue set out above, dialogue relating to foreign and security
           policy matters will also include the following arrangements:

           -  Holding of a Troika meeting at the level of Foreign  Ministers
              and a meeting at the level of political directors during  each

           -  Briefing  at  Secretariat  level after  each  General  Affairs
              Council and each meeting of the political directors.

       -   Holding one Troika meeting at Working Group level:per  Presidency
           for relevant working groups.

           In  addition  regular Troika consultations  with  the  associated
           countries  will be held in advance of important meetings  in  the
           UN-General Assembly and the CSCE.


   (a) customs  duties  on  imports  to the  Community  of  sensitive  basic
       industrial products originating in associated countries (Annex IIb to
       the  Interim Agreements) will be abolished at the end of  the  second
       year after the entry into force of the Agreement (instead of the  end
       of the fourth year).

   (b) customs duties on the imports of the industrial products concerned by
       the  consolidation of GSP (Annex III to the Interim Agreements)  will
       be abolished at the end of the third year (instead of the end of  the
       fifth year).

   (c) the  amounts  of the quotas and the ceilings of the  above  Annex III
       (consolidation of GSP) to be increased by 30% (Poland, the Czech  and
       Slovak Republics, Bulgaria, Romania), 25% (Hungary) per year starting
       from the second half of the second year after the entry into force of
       the  Agreement (instead of 20% for Poland, Czechoslovakia,  Bulgaria,
       Romania and 15% for Hungary).

   (d) levies/duties  within  the quotas for agricultural products  will  be
       reduced  by 60% six months earlier than foreseen in  the  Agreements.
       The 10% increase in the quotas, foreseen from the third year onwards,
       will be applied six months earlier than foreseen.

   (e) the  exemption from customs duties as from the beginning of 1994  for
       products  concerned by outward processing operations and  covered  by
       Regulation No 636/82  will  be  extended  in  conformity  with   this
       Regulation, duly modified for this purpose.

   (f) customs duties on imports into the Community of textile products will
       be  reduced in order to arrive at their elimination at the end  of  a
       period  of  five  years starting from the entry  into  force  of  the
       Agreement (instead of six years).

   (g) customs  duties on imports applicable in the Community on ECSC  steel
       products originating in associated countries will be abolished at the
       latest  at the end of the fourth year after the entry into  force  of
       the  Agreement  (instead of the end of the fifth  year),  subject  to
       compliance  with  specific  decisions  relating  to  trade  in  steel

   (h) The  Council  invites  the  Commission  to  effect  a  study  of  the
       feasibility and impact of cumulation of rules of origin for  products
       from  the associated countries of Central and Eastern Europe and  the
       EFTA  countries  and, in the light of the findings, to submit  to  it
       appropriate proposals.


   (a) The Community will support the development of infrastructure networks
       in  Central  and  Eastern  Europe,  as  decided  at  its  meeting  in
       Edinburgh.  The EIB, the EBRD and the other  international  financial
       Institutions will take the leading role in this process.

   (b) The  Community  will  offer technical  assistance  through  the PHARE
       programme to prepare and facilitate major infrastructure improvements
       in  the  countries  of Central and Eastern  Europe.  Within  existing
       budgetary  limits,  and without distorting  the  essential  character
       of PHARE, the Community will also be willing, in response to requests
       from  Central  and Eastern European partners, to  provide  from PHARE
       limited additional funds for capital expenditure resulting from these
       technical  assistance  activities,  in specific  cases  where  it  is
       established that such additional funds are essential, and a necessary
       component  of  projects  which are jointly  financed  by  EIB  and/or
       international financial institutions and beneficiary countries,

       -   which cannot be privately financed,

       -   which  are  of  Community interest in particular  as  defined  in
           relevant Community texts.

   (c) These  additional  funds shall not exceed 15% of  total  annual PHARE

   (d) The  Commission  will review the use of PHARE  resources  to  support
       infrastructure  development  in  Central  and  Eastern Europe  on   a
       case by case   basis.  It  will  take  into  account  the   financial
       situation  of  the  beneficiary country on  the  basis  of  available
       analyses;  the financial institutions making loans to  projects  will
       carry out their own assessments in the normal way.  In each case  the
       Commission  will ensure that there is an adequate local  contribution
       to  project  financing to ensure the commitment  of  the  beneficiary
       Government to the project.

       The Commission will avoid undue concentration of the available  PHARE
       funds  for  this purpose on individual recipient countries  and  will
       therefore  avoid  an unduly large proportion of  national  programmes
       being devoted to this purpose.

       Proposals will be submitted to the PHARE management committee in  the
       normal way.


       Approximation  of laws: the countries of Central  and  Eastern Europe
       undertook  through  the Europe Agreements to implement  within  three
       years  from  their entry into force rules parallel to  those  in  the
       Treaty  of Rome and to ban restrictive practices, abuse  of  dominant
       positions  and  public  aid  which distort  or  threaten  to  distort
       conditions   of   competition.  In  addition,  it   is   particularly
       important, from the point of view of accession, that progress  should
       be  made  in  the  other areas  covered  by  the  Europe  Agreements,
       including  those  relating  to  the protection  of  workers,  of  the
       environment and of consumers.

       Preparations for accession will also be helped if officials from  the
       associated countries receive training in Community law and procedure.

       The Commission and the relevant administrations in the Member  States
       will  be  mobilized  to further  the  approximation  of  legislation,
       including technical assistance for training officials.  A task  force
       of  representatives of the Member States and the Commission  will  be
       set up to co-ordinate and direct the work.

       The  Commission  will consider which Community  programmes  could  be
       opened  to  participation  by the countries of  Central  and  Eastern
       Europe  and  will  submit its proposals to the  Council  by  the  end
       of 1993.

                                     - - -



   The European Council reviewed the extremely grave situation in the former
   Yugoslavia  and  the  latest  negotiations between  the  parties  to  the
   conflict  in Bosnia-Herzegovina on the basis of a report by Lord Owen  to

   The European Council expresses its full confidence in the Co-chairmen  of
   the  Steering  Committee of the International Conference  on  the  Former
   Yugoslavia and encourages them to pursue their efforts to promote a  fair
   and  viable  settlement acceptable to all three  constituent  peoples  of
   Bosnia-Herzegovina. It will not accept a territorial solution dictated by
   Serbs and Croats at the expense of the Bosnian Muslims.

   The   European  Council  reaffirms  its  conviction  that  a   negotiated
   settlement  has to be based on the principles of the  London  Conference,
   reflected  in the Vance/Owen Peace Plan, particularly  the  independence,
   sovereignty,   and  territorial  integrity  of  Bosnia-Herzegovina,   the
   protection   of   human  rights  and  the  rights  of   minorities,   the
   inadmissibility of acquisition of territory by force, the vital need  for
   humanitarian aid to be provided and reach those in need, the  prosecution
   of war crimes and breaches of international humanitarian law.

   The  European  Council  supports the call of the  government  of  Bosnia-
   Herzegovina for an immediate cease-fire. It reaffirms the need for  wider
   international  support  for  humanitarian aid  and  for  guaranteed  safe
   passage of convoys.

   Speedy implementation of UN Security Council resolutions on safe areas is
   an  indispensable  contribution to the implementation of  the  objectives
   mentioned  above. The European Council decided to respond  positively  to
   the  request  of  the UN Secretary General for men and  money.  It  urged
   member States to comply with that request within their abilities. At  the
   same time, it appeals to other members of the international community  to
   do likewise.

   Sanctions will remain in place and will be tightened until conditions for
   their  lifting set by the United Nations and the European Community  have
   been  met.  The Community and its member States will  contribute  further
   resources to their strict enforcement.

                                     - - -


   Foreign  Ministers,  meeting on the occasion of the European  Council  in
   Copenhagen on 21 and 22 June 1993, agreed on the following conclusions:


   Europe  is  Africa's major partner, politically, economically,  and  with
   regard  to development cooperation. The European Council  underlined  the
   importance of a continued cooperation based on solidarity.

   In 1993 the Community and its Member States have taken a number of  steps
   towards  deeper and wider cooperation with Africa. The  European  Council
   stressed   the  importance  of  further  expansion  of  co-operation   in
   democratization, peaceful development and development assistance.

   The  Community  and  its Member States are committed  to  supporting  the
   democratization  process which is gaining momentum in  Africa,  including
   support  for good governance, sound economic management and  respect  for
   human rights. The European Council recalled the resolution adopted by the
   Council (Development) on 28 November 1991 on human rights, democracy  and

   The  Community and its Member States have engaged themselves actively  in
   supporting  the election process in a number of African  countries.  They
   will continue their efforts to coordinate this assistance to ensure  that
   all  African  countries in a transitional process towards  democracy  are
   offered the necessary support and attention.

   The  successful referendum on the independence of Eritrea after 30  years
   of civil war has raised hopes that conflicts in Africa can be solved in a
   peaceful manner.

   The  European  Council  welcomed the  increasing  engagement  by  African
   countries  in solving crises and armed conflicts, as seen recently  in  a
   number  of cases. The European Council also hoped that Heads of State  of
   OAU at their forthcoming Cairo summit will address the important question
   of conflict prevention and resolution. A useful contact with the OAU  was
   established  during  the  visit to Copenhagen in June  of  the  Secretary
   General of this organization.

   The Community and its Member States have further strengthened development
   cooperation  with Africa. The Lomé Convention forms an important  element
   in this cooperation. Effectiveness and speed in the implementation of the
   European Development Fund is increasing to the benefit of all parties.

   Development Ministers have agreed on a special rehabilitation  initiative
   for  Africa.  At least 100 million ecu will be allocated  immediately  to
   fast  track rehabilitation programmes in selected sub-Saharan  countries.
   The  Council of Ministers is examining a further  special  rehabilitation
   programme for developing countries.

   South Africa

   The   European  Council  welcomed  the  recent  major  progress  in   the
   negotiation process in South Africa. The European Council hoped that  the
   parties  will  reach an agreement in the very near future that  will  set
   South Africa firmly on the road towards democracy.

   The  establishment of a Transitional Executive Council will be a  further
   step  in  the normalization and strengthening of political  and  economic
   relations between the Community and its Member States and South Africa.

   The  European  Council  reaffirmed its commitment to  contribute  to  the
   economic  and social development of the new South Africa.  Reconstruction
   and sustainable economic growth will only come about in a democratic  and
   non-violent  environment. Therefore the Community and its  Member  States
   stand prepared to provide support to the first free elections foreseen in
   April 1994, including election observers, as well as to strengthen  their
   assistance  to  the  democratization  process and  the  efforts  to  curb


   The  European Council expressed its concern with the continued civil  war
   in Sudan between the government in Khartoum and the SPLA-factions in  the
   south.  Some  500,000 people have already died and many  more  have  been
   displaced. The Abuja-talks between the parties have made little  progress
   towards  a solution. There is also serious concern for the  human  rights
   situation  in  Sudan including repression of civil  society  in  northern
   Sudan  by  the government, killings, arrests and  torture  by  government
   forces  in  the war zones and killings, arrests and executions  by  rebel
   forces. It urges the government of Sudan not to support activities  which
   go against a constructive relationship with the Community and its  Member

   The   European  Council  welcomed  the  increased  attention  which   the
   international community is now directing to the humanitarian  catastrophe
   unfolding  in the country. An EC Troika mission of Development  Ministers
   is  currently visiting the Sudan to underline the seriousness with  which
   the Community and its Member States view the humanitarian crisis and  the
   urgent  need  for  all parties to ensure a resolution  of  the  problems.
   Following  the  report  from the mission, the Community  and  its  Member
   States  will  consider  how  they  can  best  contribute  further  to  an
   alleviation of the plight of the Sudanese people including restoration of
   respect for human rights.


   The European Council welcomed the major efforts of the United Nations  to
   contribute  to the restoration of peace and security,  to  reconciliation
   and  political  settlement  in  Somalia  and  to  prevent  another  human
   catastrophe. To this end, disarmament of factions and restoration of  law
   and  order are important goals. Heads of State and  Government  condemned
   the  attack  perpetrated on Pakistani UN soldiers which resulted  in  the
   deaths  of  23 of them and the wounding of many more.  Those  responsible
   must  be brought to justice. They also regretted all civilian  casualties
   and extended their sympathy to all those affected by these tragic events.
   The European Council called on all parties to comply fully with  Security
   Council resolutions.


   The European Council deeply regretted the suspension of the  negotiations
   between  the Angolan Government and UNITA, and UNITA's continued  efforts
   to  seize  additional  territory through  military  power.  The  European
   Council expressed its full support for the Security Council's  Resolution
   834 of 1 June 1993, in which the actions of UNITA were strongly condemned
   and  an appeal was made to both parties for a return as soon as  possible
   to  the negotiating table and for the re-establishment of the  ceasefire.
   The European Council reaffirmed that in order to solve the present crisis
   a peaceful solution must be found based on national reconciliation and on
   the principles of the peace agreement. The European Council was extremely
   concerned with the humanitarian situation in Angola. It calls upon  UNITA
   to  accept  the UN plan for humanitarian relief. The  Community  and  its
   Member  States  commited  themselves  to respond to  the  UN  appeal  for
   assistance following the Donors' Conference of 3 June.


   The European Council regretted the serious delays in the peace process in
   Mozambique.  While it is heartening that the ceasefire is holding, it  is
   most disappointing that not much progress has been made in implementation
   of  the peace agreement. The European Council called upon the  government
   of Mozambique and Renamo to live up to the undertakings entered into when
   the peace agreement was signed. Furthermore, the Community and its Member
   States restated their commitment to contribute to the rehabilitation  and
   economic and social development of Mozambique.


   The European Council deplored the recent senseless killings of  civilians
   in  Liberia. The killings underline the urgent need to find  a  political
   solution  to the crisis. The Community and its Member  States  reaffirmed
   their  belief  that  the  Yamoussoukro IV Accord  is  the  best  possible
   framework  for such a peaceful resolution of the Liberian  conflict,  and
   they  urged all parties to support the efforts of UN and the OAU  special
   representatives to bring a peaceful end to the civil war.


   The  European Council welcomed the peaceful and efficient conduct of  the
   referendum in Malawi on 14 June, including the substantial improvement in
   the  conditions  for  the final stages of  the  campaigning  period.  The
   Community  and  its Member States are convinced that the  outcome  fairly
   reflects  the views of the Malawi people. They urged  Malawi's  political
   leaders  to work closely together in the new circumstances  to  safeguard
   human  rights, promote democracy and to deal with outstanding  governance
   issues,  thus  opening  the  way  to  the  resumption  of  full  economic


   The  European Council reiterated its support for the process of  national
   reconciliation and wished to express its concern at the deterioration  of
   the situation in Zaire, which is marked by a halt to the  democratization
   process  and  by  repeated infringements of  human  rights,  notably  the
   arbitrary arrest and detention of persons for crimes of opinion.

   The  European Council also denounced any incitement to ethnic  hatred  as
   reflected  in political violence and excesses in certain regions  of  the
   country, which are causing massive displacements of people. The  European
   Council  reaffirmed its support to the President of the High  Council  of
   the Republic and urged him to continue his efforts.


   The   European  Council  took  note,  with  great  concern,   of   recent
   developments  in Nigeria which could place in question the transition  to
   civil  rule  after  successful presidential elections  on  12  June.  The
   European  Council  expressed the hope that the transition to  civil  rule
   will  be allowed to continue so that full democracy can be introduced  in
   Africa's largest nation without delay.

   Middle East

   The European Council welcomed the resumption of the bilateral talks aimed
   at  a  just,  lasting and comprehensive settlement  of  the  Arab-Israeli
   conflict and the Palestinian question. It urged all parties concerned  to
   build on the results already achieved and to press ahead with substantive
   negotiations in a spirit of good will and compromise.

   The European Council once more called on all parties concerned to refrain
   from  all  actions which could undermine the peace process.  It  remained
   convinced   that  the  confidence-building  measures  suggested  by   the
   Community  and  its  Member States and significant  improvements  on  the
   ground, including of the human rights situation, would be instrumental in
   moving the peace process towards a successful conclusion.

   In accordance with their well-known positions of principle, the Community
   and  its Member States will continue to play an active, constructive  and
   balanced part in the Middle East peace process, in both its bilateral and
   multilateral  aspects.  They commended the untiring efforts  of  the  co-
   sponsors  to move the process forward and are prepared to participate  in
   international arrangements in support of a peace settlement.

   Central America

   The European Council noted with satisfaction the progress made in Central
   America  to  attain  peace, dialogue and reconciliation as  well  as  the
   achievements in the consolidation of democracy and regional integration.

   In   this  context,  the  European  Council  welcomed  progress  in   the
   implementation  of  the El Salvador peace agreements and  called  on  the
   signatories  to  fulfil  all the  remaining  commitments,  including  the
   recommendations  of  the Ad Hoc Commission and the Truth  Commission,  in
   order to complete the peace process and achieve national reconciliation.

   The  European  Council  expressed its satisfaction at  the  peaceful  and
   constitutional  outcome of the recent crisis in Guatemala and hopes  that
   the appointment of a new constitutional president will contribute to  the
   strengthening  of the democratic institutions, the full respect of  human
   rights  and  fundamental  freedoms  and  the  resumption  of  the   peace

   The  European  Council also welcomed the signing in San Salvador  of  the
   Cooperation Agreement between the European Community and the countries of
   the  Central  American  Isthmus which will contribute  to  intensify  and
   further increase their mutual cooperation.


   The  European  Council welcomed the holding of elections  in  Cambodia  -
   thanks to the support of the United Nations - which have demonstrated the
   aspirations of the Cambodian people towards peace and democracy.

   It  noted  the  decision by the Constituent  Assembly  confirming  Prince
   Norodom  Sihanouk at the head of the State of Cambodia. It expressed  the
   hope  that  the  peace  process may be concluded  in  the  best  possible
   conditions  with the adoption within three months of a  Constitution  and
   the   early  formation  of  a  government  which  will   allow   national
   reconciliation to begin.

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