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   1.  The degree of implementation of the White Paper programme remains the
   same  as in December: 95%.  The lack of any progress does not  mean  that
   work has halted. Important decisions have been taken, for example in  the
   areas  of  technical  rules,  the  Agency  for  Medicinal  Products   and
   intellectual property.  However, some important dossiers remain blocked.

   - The  Statute for a European company remains blocked principally on  the
   question of worker participation and because of growing doubts concerning
   the  need  for such a Statute.  Several discussions have taken  place  at
   Council  level  without any progress other than of  a  technical  nature;
   (INTERNAL MARKET COUNCIL)
   - By  contrast,  the  creation  of  the  Community  trade mark  has  made
   significant progress on one of the points which had hitherto blocked  the
   dossier,  the  working  languages; only the German  delegation  is  still
   holding  up  the  compromise  which has  been  reached  (INTERNAL  MARKET
   COUNCIL)
   The question of the location of the Trade Mark Office was settled at  the
   Brussels European Council on 29 October 1993 with the decision that it be
   located  in  Spain.  The  question  of  its  working  languages  will  be
   discussed by the Internal Market Council on 11 November 1993.
   - The abolition of double taxation on businesses depends on the  adoption
   of  proposals on the removal of withholding tax on interest  and  royalty
   payments  (COM(90)571; COM(93)196) and the taking into account of  losses
   (COM(90)595).  These  proposals, which have been on the  Council's  table
   since  1990, have never been examined by the Ecofin Council  despite  the
   Commission's  insistence.  Both are plagued with political  difficulties.
   (ECOFIN COUNCIL)

   2.  These  delays have not affected the achievement of the  objective  of
   abolishing  frontier  controls  on goods,  services  and  capital.  These
   controls have disappeared, but the retention of personal identity  checks
   still  requires  an  administrative presence and  an  infrastructure  for
   controls  at  the  internal  frontiers  to  be  maintained.  The  Council
   continues  to  adopt  measures  to  further  the  abolition  of  frontier
   controls;  the  latest concerns transfers of radioactive  substances  and
   products.  The main outstanding decisions concern the following matters.

   - VAT:  the  harmonizing  provisions  for  gold,  second-hand  goods  and
   passenger  transport remain blocked within the Council; the last  attempt
   at adoption was for the proposal concerning second-hand goods, which  now
   depends  on  UK  agreement  on  the  transitional  arrangements  it   has
   requested. (ECOFIN COUNCIL)

   - Dual-use  goods:  the proposal has never been examined by  the  Council
   despite pressure from the Commission; the latest attempt was made at  the
   Internal  Market  Council on 14 June. (GENERAL  AFFAIRS  COUNCIL/INTERNAL
   MARKET COUNCIL)

   3.  The  internal-market dossiers to which the Belgian Presidency  should
   give priority are as follows:

   Internal Market Council

   - functioning of the internal market: strategic  programme/trans-European
   networks (see paragraph 4),
   - Community trade mark,
   - European company,
   - data protection: the Belgian Presidency accepted at the Internal Market
   Council  meeting  on  27 September  that a report  be  presented  on  the
   progress   of  this  dossier  but,  in  agreement  with  the   Commission
   departments, this report was removed from the agenda of 11 November  with
   the intention that it be discussed by the Council on 16 December.
   In the area of intellectual property:
   - legal protection of biotechnological inventions,
   - legal protection of databases,
   - the  Directive on the term of copyright protection was adopted  by  the
   General Affairs Council on 29 October.

   In the area of technical harmonization:
   - precious metals: the Commission's proposal was presented at the end  of
   October,
   - amendment of Directive 83/189/EEC on the notification of standards,
   - foodstuffs (labelling, new products, irradiated products) - a political
   agreement  on a Common Position on sweeteners and colours was reached  by
   the Internal Market Council on 27 September 1993,
   - lifts,  pleasure  craft,  equipment  which may  be  used  in  explosive
   atmospheres, motor vehicles, labelling of shoes.

   In the area of financial services:
   - pension funds.

   In the area of the free movement of persons:
   - right  of  residence  for students: the Directive was  adopted  by  the
   General Affairs Council on 29 October 1993.

   Ecofin Council

   Direct taxation:
   - removal of withholding tax on interest and royalty payments,
   - taking into account of losses.

   Indirect taxation:
   - VAT on second-hand goods,
   - VAT on gold,
   - VAT on passenger transport.

   Financial services:
   - guarantee  system  for bank deposits (Common Position  adopted  by  the
   Ecofin Council on 25 October),
   - amendment  of the Directive on the listing particulars to be  published
   for the admission of securities to official stock exchange listing,
   - follow-up to the BCCI affair,
   - amendment of the UCITS Directive,
   - protection of investors/securities.

   Agriculture Council
   The proposal on Community plant variety rights (COM(90)347;  COM(93)104),
   which made some progress during the Danish Presidency, and a proposal  on
   financial liability for the introduction of organisms harmful  to  plants
   or plant products (COM(89)647; COM(91)24), which needs a boost within the
   Council.

   General Affairs Council/Internal Market Council
   - Export controls on dual-use goods.

   Social Affairs Council
   The amendment to the Regulation on the free movement of workers and their
   families remains blocked within the Council.

   Transport Council
   Adoption  by  the  Ecofin  Council  on  25 October 1993  of   legislation
   concerning the agreements reached by the Transport Council on 19 June  on
   the definitive cabotage arrangements for road haulage and on the taxation
   of transport.

   Functioning of the internal market
   4.  In  June  the Commission presented to the Council  and  Parliament  a
   working document which launches the preparation of a strategic  programme
   for  the management and development of the internal market  (COM(93)256).
   This has three objectives:
   - to  involve the Member States and economic operators in the  definition
   of  the  main  priorities,  based  on  the  primary  consideration   that
   management is a responsibility to be shared with national administrations
   and that the development of the internal market must remain geared to the
   needs to businesses;
   - to keep up the momentum for integration, recognizing that administering
   the rules on a strictly administrative basis cannot counter the risks  of
   refragmentation  of the market and that the internal market can  have  an
   economic impact only if such momentum exists;
   - to  maintain  a global approach which allows the variety of  needs  and
   concerns  to be dealt with according to the specific  characteristics  of
   the  sector concerned; this global approach includes  the  trans-European
   networks.

   These  documents  are currently the subject of a broad  consultation  and
   will  lead to the drawing-up of a programme before the end of  the  year.
   The  "strategic  programme" has already been discussed within  the  other
   institutions  (Parliament, the Economic and Social Committee) and at  the
   Internal   Market   Council  meeting   of   27 September 1993.  Reactions
   concerning the document's approach are generally positive.
   On  the  matter of trans-European networks, it is urgent,  following  the
   statements  made  at the Copenhagen European Council,  that  the  Council
   adopt the following.
   -  The  proposals for Regulations introducing a declaration  of  European
   interest  (COM(92)15) to facilitate the establishment  of  trans-European
   networks  in  the transport, energy and  telecommunications  domains.  An
   amended  proposal (COM(93)115) was recently presented to take account  of
   Parliament's  opinion.  These  proposals  should be adopted  as  soon  as
   possible,  under  the  Belgian  Presidency.  Although  there  are   three
   proposals, one for each sector, their content is identical.  In order  to
   ensure  consistency between them, a single working party should  meet  to
   examine  them  all with a view to their adoption at the  Internal  Market
   Council meeting on 11 November 1993.

   - The  proposals  for Decisions on data communications  networks  between
   administrations  (COM(93)69).  In March 1993 the Commission  presented  a
   communication on data-communication networks between administrations.  It
   contains  two  proposals  for a Council Decisions,  one  identifying  the
   objectives, priorities and most important measures to be taken, the other
   concerning  the  Community  contribution in the  form  of  a  multiannual
   programme to support projects of common interest for  data-communications
   networks  between administrations, as defined in the framework  decision.
   These  proposals are now awaiting Parliament's opinion.  Meetings of  the
   Council working party should be organized to ensure that these  proposals
   are adopted by the Internal Market Council before the end of the year, as
   intended.

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