Spain and the European Community

SPAIN AND TH. EUROPEAN COMMUNITY I. INTRODUCTION . - . II. THE 1970 SPAIN-EEC TRADE AGREEMENT . . . . . 1. P o isions o he ag eemen . . . . . . . . . . . . . 2. Adap .a ion o he ag eemen . . . . . . . . . III. SECTORIAL PROBLEMS 1. S ee l . . . . . . . . . . . . . . . . . . . . . . 2. Fi she ies . . . . . . . . . . . . . . . . . 3. Tex i les and shoes . . . . . . . . . . . . IV. TOWARDS SPAIN' S ACCESSION TO THE EUROPEAN COMMUNITY 1. Reques o accession . . . . . . . . . . . . . . 2. The Commission s opinion . . . . . . . . . . . . . . . 3. Posi ions o he Council o Minis e s, he Eu opean Pa l iamen and he Economi c and Social Commi ee . . . . . . . . . . . . . . 4. P og ess o he nego ia ions . . . . . . . . . 5. Consequences o he enla gemen o hi d coun ies . . V. THE SECOND ENLARGEMENT OF THE COMMUNITY Conclusions Annex : Economic p o ile o Spain . . . . . . . . . . . . - . 23/X/80 29/80 ...~/ May 1980 F ee ep oduc ion au ho ized, wi h o wi hou indica ion o sou ce. Vouche copies would be app ecia ed. INTROOUCTION The aim o his no e is o e ace he his o y o ela ions be ween he Eu opean Camnmi y and Spain since 1962 when, a e a long pe iod o inwa d~looking, Spain made i s i s app oach owa ds associa ion wi h he Ccmnuni y. Spain is going o en e a Ccmauni y which, wi h G eece and Po ugal, will ex end u he owa ds he Sou h am will ake on a new geog aphical, econanic and poli ical dimension. II. THE 1970 SPAIN-EEC TRADE AGREEMENT F an 1962 onwa ds, he Spanish Go e n oen had made app oaches wi h a iew o an "associa ion which migh one day each o al in eg a ion " . Explo a o y con e sa ions ook place an 1964 o 1966 wi h a iew o nego ia ing an ag eemen which would ha e a s ic ly ca me cial con en . The nego ia ions las ed an 1967 o 1970. The ade ag eemen be ween Spain am he me was signed on 29 June 1970 am en e ed in o o ce on 1 Oc obe o he same yea ( 1) . P o isions o he ag eemen The con ac ing pa ies unde ook o "consolida e and ex end he exis ing econanic am comne cial ela ions and o lay down " he bases o a p og essi e enla ganen o mu ual ade ; hey s essed he conce n o he EEC o de elop i s econanic am ccmne cial ela ions wi h he coun ies o he Medi e anean basin. The p e e en ial ag eem:m is based on A icle 113 o he EEC T ea y. I p o ides, du ing a i s s age which is o las a leas six yea s, o " he p og essi e supp ession o obs acles o he bulk o ade. The passage o a second s age, aiming a es ablishing a ee ade zone, he modali ies o which ha e no been de ined, is subjec o nego ia ions be ween he pa ies. A join comni ee, canposed o ep esen a i es an he E e and Spain, has been ins i u ed o : ooni o he co ec execu ion o he ag eem:m . The ag eemen maybe cancelled by ei he o he pa ies a six oon hs ' no ice. I does no co e he coal am s eel sec o s which a e dependen on he ECSC T ea y. In he indus ial ield, he Communi y applies a i concessions o 40% o 60% (acco ding o p oduc s) on ah os all impo s an Spain. In he ag icul u al sec o , abou hal o he impo s bene i om a i p e e ences o be ween 25% and 60%. (1) O icial Jou nal o he Eu opean Communi ies NO L. 182 o 1970. ~ 2- Spain' s a i concessions a e o 25% o 60% acco ding o p oduc s. A la ge pa o he i opo scaning an he Ccmnuni y bene i s om hese concessions. The adap a ion o heag eanen Sho ly a e he en y in o o ce o he ag eemen , he Spanish au ho i ies and heCcmnuni y we e conce ned wi h he epe cussions he e migh be an he accession o New Membe S a es - and in pa icula G ea B i ain - o he Ccmnuni y. The Uni ed Kingdan, in ac , cons i u ed he chie expo ma ke o Spanish ag i- cul u al p oduc s, o en no co e ed by he ag eemen ; and' i s a i was o be aised o be aligned wi h ha o i s new pa ne s. Spain could no accep a simple echnical am legal adap a ion o he 1970 ag eemen : on he con a y, i was looking o basic adjus men s, aking accoun o all he implica ions o he enla ganen , including he concessions al eady g an ed o ce ain coun ies o he Medi e anean Basin. Nego ia ions wi h a iew o a new ag eemen in he con ex o he Camluni y s Medi e anean policy ook place in 1973 am 1974, a e a p o ocol had been signed on 29 Janua y 1973 p o iding, o 1973, he p o isional non~applica ion o he 1970 ag eemen o he new Membe S a es. The nego ia ions eached an impasse: he Camluni y p oposed as an obj.ec i e indus ial ee ade acccmpanied by esh ag icul u al concessions, whe eas Spain wished o es ablish a link be ween ee ade in he indus- ial and ag icul u al ields. A camp anise began o eme ge a he end o 1975, bu he nego ia ions we e in e uF ed by he Commmi y which in ended o p o es agains he iola ions o human igh s in Spain. A e he en h onemen o he king Juan Ca los I on 22 No embe 1975, con ac s we e e-es ablished. A he beginning o 1976, he Spanish go e nmen indica ed ha i nON wished o si ua e i s ela ions wi h he Camnuni y in he pe spec i e o an accession o he Ccmnuni y. In consequence, as he Spanish au ho i ies saw i , he e was no use in concluding a~ ~ ade ag eemen as en isaged in he con ex o he Can- muni y s o e all Medi e anean app oach. In hese condi ions, in Ap il 1977, nea he end o he ans~ i ional pe iod p o ided by he ac o accession o he Uni ed Kingdom, Denma k and I eland, nego ia ions we e en e ed in o o he egu1a isa ion o econanic ela ions be ween Spain and he enla ged Ccmnuni y. The solu ion was o conclude an exchange o le e s da ed 25 July 1977 which pe mi ed he p o isions o he ag ee oon be ween he h ee new Manbe S a es and Spain o be applied au on(IOC)usly on 1 July 1977. - 3 III. SEC oRIAL PROBLEMS 1. S eel Spain has been a adi ional impo e o s eel p oduc s om he Comnuni y, and has also become i s la ges supplie . To a ain p ice discipline and a oid dis u bances on he Com~ muni y ma ke in he p esen c isis si ua ion, an in o mal a angemen was concluded wi h Spain in Ap il 1978. This a angemen , he alidi y o which was limi ed o 1978, was enewed o 1979 by an exchange o le e s da ed 11 Ap il 1979. I was ex ended o 1980 by a second exchange o le e s da ed 25 Feb ua y 1980. The an i -dumping p ocedu es which had a ec ed di ec impo s c:m Spain o ce ain s eel p oduc s we e all abolished by he Commission in 1979. Consul a ions a e held egula ly be ween Spanish and Camnission ep esen a i es o examine ends in .expo s o Spanish s eel p oduc s o he COlIl lUni y . The e has also been a i s exchange o iews on he p ospec s o accession. The echnical discussions on his subjec ha e s a ed . 2. Fishe ies A e he ex ension, on 1 Janua y 1977, by a conce ed ac ion, o he limi s o he ishing zones o Membe S a es o he Co muni y o 200 sea miles om he A lan ic and No h Sea coas s, he Ccmnission was au ho ised o. open nego ia ions wi h ce ain hi d coun ies on access o ishe y esou ces and con ol measu es necessa y in pa icula o he con~ se a ion o species. A amewo k ag eemen nego ia ed be ween he Comnuni y and Spain was ini ialled on 23 Sep embe 1978 (1).. While wai ing o he conclusion o his ag eemen , i is applied de ac o in he sense ha consul a ions ake place on annual sys ems o ecip ocal ishing concessions. These annual sys ems aim o achie e p og essi ely a sa is ac o y balance in mu ual ishing possibili ies. 3 . Tex iles and shoes A he end o 1977, he Communi y concluded wi h hi d coun ies, in he con ex o he in e na ional ag eemen on ade in ex iles, : oo e han wen y i e-yea ag eemen s aimed a gua aJ:i eeing and disciplining ex ile expo s o he Can~ muni y whose p oduc ion capaci ies appea ed h ea enend in he sho e m by compe i ion an low-cos supplie s. (1) The ag eanen was signed on 15 Ap il 1980. The o e all Ca muni y ade policy o ex iles also co e ed impo s om coun ies ha ing p e e en ial links wi h he Ccmnuni y, such as Spain. Nego ia ions we e held o egu1a ise impo s an hose coun ies. Fo Spain, hey esul ed in he se ing up, cm May 1978, o a sys em o adminis a i e coope a ion aimed a pe - manen ly con olling pa e ns o ading and pe mi ing, in case o di icul ies, adequa e solu ions o any p oblems. This sys em was imp o ed in he con ex o he join ac ionJIlEm) andum concluded on 20 Feb ua y 1979. In he con ex o his sys Em he Camlission, by a Regula ion o 1 Feb ua y 1979, se up a sys em o Ccmauni ysupe ision o impo s o ce ain ex ile am clo hing p oduc s cm Spain. On 11 Decembe 1979, his sys em was ex ended o 31 Decembe 1980. I makes he admission o he ma ke o p oduc s o Spanish o igin dependen on he p esen a ion o a documen pe mi ing impo in o he Membe S a es o he Ccmnuni y. The .ins i u ion o Ccmnuni y supe ision o all supplie s including Spain was also decided on o shoe impo s, un il a : oo e lexible sys em could be se up which did no equi e he p io g an ing o an impo licence. IV. 'l'QNARDS SPAIN' S ACCESSION 'IO THE ElIROPEAN C(II1MUNITY 1. The applica ion o accession In Feb ua y 1976, sho ly a e he en h onem:m o King Juan Ca los, he Spanish Fo eign Minis e , M. de A eilza, indica ed du ing a isi o he Ccmnission, ha Spain migh apply o accession o he Ccmnuni y as soon as he p ocess o p og essi e democ a isa ion o he coun y had been canple ed. On 28 July 1977, immedia ely a e he June elec ions, he new Spanish Fo eign Minis e , M. O eja Aqui e, o icially p esen ed o he P esiden in o ice o he Council, he 13elgian Minis e M. SiIIDne , he le e s an P esiden Sua ez con aining his coun y' s eques o accession. This applica ion came wo yea s a e ha o G eece (June 1975) and ou mon hs a e ha o Po ugal (Ma ch 1977) . The Eu opean Ccmnission welcaned he wish exp essed by Spain, am on 20 Sep embe , he Council o icially acknowledged eceip . The Council hen cha ged he Ccmnission, in con ac wi h Spain and he Menbe S a es, wi h p epa ing an opinion p io o he opening o nego ia ions . Many con ac s and mee ings ook. place in B ussels and Mad id wi h he Spanish au ho i ies o iden i y he p oblems which migh a ise when Spain was in eg a ed in o he Ca muni y, and o d aw he conclusions on hese p oblems which we e o be s a ed in he opinion. - 5- The Opinion was adop ed by he CO mission on 29 b Bnbe 1978 an:l cx:mmmica ed o he Council o Miids e s ( 1) . 2 . The Camlission' s Opinion The Ca mission in o med he Couooil ha i welcane d he app lie a ion o accession am was happy abou he p ospec o seei.n1 a dsID- c a ic Spain pa icipa ing in he uni ica ion o ~. I 1'o.1gh ha nego ia ions on accession should be opened as soon as J;OSsible . am ca ied h ough wi h a will o in::1 he nPs sa is ac o y solu ions o he p oblems posed The CO missionconside ed ha he addi ion o he Spanish ma lce , which had conside able de elopnen .po en iali ies, walld ha e bene- icial e ec s on in a-camn.mi y ade, am ha hese ~d s ill u he accen ua ed by he possibili ies opened on Ia in Ame ican ma ke s, because o Spain' s adi ional links wi h ha con inen . Howe e , he accession would no be made wi b;)u di icul ies, i was he e o e :iI p) an , in he in e es s bo h o he Ccmnuni y and o Spain, o ake he neCessa y measu es am p ecau ions o ensu e i s success. This success could be coon ed on only i he inse ion o he Spanish econany in o ha o he Ccmwni y could be ca ied ou wi hou in ole able ensions o ei he pa y an:l i , when his was achie ed, he Cam uni y we e s en: .hened a he han weakened - and his made i all he m e u gen o ake ac ion o s en:J hen he cohesion o he Cam uni y. A e ha ing e iewed he Cam uni y s eco onic si ua ioo am ha o Spain, he opinion p oceeded o e alua e he inpac o he accession on he a ious sec o s o ac i i y. Sec o ial aspec s in gene al In ce ain sec o s, he Spanish econcmy is a nPs e ec i e can- pe i o o he Cam uni y. This migh lead o conside able ensions o ce ain sec o s o he Camnmi y econany, .i adequa e measu es we e no adop ed in good ime am wo ked in O he p ocess o in- eg a ion which would ollow he accession i sel . This would in pa icula apply o ce ain egions which we e np e exposed han o he s, ei he because o hei eco onic s uc u e o because o hei geog aphical si ua ion. Fo he Spanish side, he weigh o he Ca muni y econany migh , unless simila p ecau ions we e aken, also cause ensions o he same na u e o ce ain sec o s and ce ain egions whe e inca e is essen ially ea ned cm p oduc ions which could s and up o Camnmi y ca qJe i ion. (1) upp emen '1/ n:s Eu opean Ccmnuni y Bulle in - 6~ This is why i is impe a i e o ake he necessa y p ecau ions on bo h sides o acili a e he inse ion o Spain in o he Camnmi y. In pa icula , he gap be ween he espec i e de elq:men le els, which cons i u es one o he os ob ious sou ces o ension, mus be educed as a as possible. Indus ial sec o In he indus ial sec o , we would haVe o mee h ee equi anen s elimina e he p esen imbalance in disman ling o a i s pa a- a i ba ie s be ween he Ccmnuni y and Spain, in i ue o he applica ion which was made o he 1970 p e e en ial ade ag eemen ; ha n"Pnise he basic condi ions o canpe i ion, in pa icula o axes and subsidies: apidly associa e Spain wi h he ac ions o indus ial ~s uc- u ing and join disciplines o eseen o c isis sec o s bo h in he Comnuni y and in Spain. Ag icul u e Spain occupies a pa icula place among he candida e coun ies, om he ag icul u al poin o iew: i s accession would, in ac , in ol e o he Ca muni y a 30% inc ease in i s ag icul u al su ace, a 31% inc ease in i s ac i e ag icul u al popula ion and a 31% inc ease in he numbe o i s anns. Ag icul u al expo s, which ep esen abou 23% o o al expo s, play animppo an ole in he coun y' s ade balance. Abou 58% o hese expo s go o he p esen Camluni y, whe eas only 10% o Spanish impo s ccme om he Ca muni y . The : oos di icul p oblems will be concen a ed a ound "Medi e - anean p oduc ions" and, o his eason, will ha e epe cussions which will a ec ce ain egions which a e among hose leas de~ elope. in he Ca muni y. This is why, al hough Spain should be able o adop he Ca mon Ag icul u al Policy as soon as i accedes o he Canmuni y, he con e gence o p ices would ha e o be made p og essi ely while, du ing he ansi ion pe iod, mechanisms would ha e o be se up in o de o a oid he ee ci cula ion o p oduc s causing dis u bances in Comnuni y ma ke s du ing ha pe iod. - 7- In addi ion, he enla gemen would b ing abou an inc ease in he p oblems connec ed wi h s uc u al impe ec ions o anns and inadequacies o a me s ' incanes. The esul would be ha we would ha e o inc e.ase ou e o s o educe di e ences in p o- duc i i Ybe ween anns in he Ccmauni y. S uc u al ac ions would ha e o be adap ed o egional equi emen s, and conside in pa - icula he si ua ion o he leas a ou ed egions, since, in addi ion, hese would be IOOs a ec ed by he accession o Spain. The inancial pa icipa ion o he Ccmnuni y would ha e o ake accoun o he deg ee o acu eness o he p oblems caused o hese egions. Regional and social policy In he enla ged Camnuni y, he e would be a conside ably g ea e p opo ion o unde -de eloped egions, aced wi h p oblems o e- con e sion, and cha ac e ised by a weak economic en i onmen .. Besides, in Spain, he es uc u ing o eseen o indus ial sec o s in di icul y and he e y ex ensi e cons ain s in he c a sec o s o he coun y migh cause pa:c icula l y acu e p oblems o adap a ion and econ e sion o ce ain p o inces. The measu es o es uc u ing in i dus ial sec o s, bo h in Spain and in he Camumi y, and he accele a ion o he ligh an he land, would also ha e, in he i s s ages, conside able epe - cussions on employmen . The ex en o he p oblems ha would ace he enla ged Ccmnuni y in he labou ma ke would make i s ill IOO e necessa y o gi e pa icula a en ion o employmen in coo dina ing econanic and social policies o Membe s a es a Can- muni y le el, in pa icula o a oid dispa i ies be ween a es o employmen in di e en egions, and mig a ion caused by he cons ain o unemploymen . Ex e nal ela ions The accession o Spain would ha e a double impac on he CamIuni y ex e nal ela ions. On he one hand, i would inc ease he ccmne - cial powe o he Ca ununi y, and on he o he hand i would ha e epe cussions on ce ain aspec s o i s ex e nal policy, pa icula ly conce ning i s ela ions wi h he Medi e anean coun ies, whose expo s a e oo e canpe i i e han hose o Spain, which .Spain would end o de elop a e accession. The Ccmauni y would ha e, as soon as possible, o ca y ou a policy o ac i e conce a ion wi h hese coun ies, and seek. o ways and ! eans o es uc u ing ade. The ansi ion pe iod We should i s o all s ess ha Spain would be a canple e membe o he Ccmnuni y cxn he nanen o i s accession. Howe e , aking accoun o he ex en am ca:nplexi y o he p oblems in ol ed, i is necessa y o ha e a ansi ion pe iod du ing which, among o he hings, he cus ans e i o y be ween Spain and he Ccmnuni y would be uni ied, he ee ci cula ion o labou would be achie ed, and du ing which would be app l i ed he p o isions o he Ca mon Ag icul u al Policy and o he ag eemen s wi h hi d coun ies. The Ccmnission, in consequence, had es ima ed ha ansi ional measu es should be applied wi hin a pe iod o en yea s, and ha he du a ion o each o hese ansi ional J;X '0 isions should be ixed a he ime o nego ia ions. 3. Posi ions o he Council o Minis e s, he Eu opean Pa liamen am he Econanic and' Social CCmni ee. The Council o Minis e s, ha ing aken no e o he Ccmnission' s opinion, p onounced in a ou o Spain' s eques o accession du ing i s mee ing on 18 am 19 Decembe 1978. I was ag eed ha he p epa a o y wo k indispensable o he es ablishmen o a ca mon nego ia ing basis should be ca ied ou as soon as poss- ible and in a posi i e spi i , and ha he nego ia ions o Spain' s accession should open o mally in Feb ua y 1979. The posi ion o he Council was made clea by i s P esiden in O ice, M. Jean F anc;:ois-Ponce , du ing he solemn opening o he nego ia ions (see poin 4 ollowing). In a esolu ion adop ed on 18 Janua y 1979, he Eu opean Pa lia nen welccm:d he e-es ablishmen o d.emx a ic egimes in G eece, Spain am Po ugal, and con inned i s poli ical will o see hese coun ies uni ed wi h he CoI muni y. I no ed wi h sa is- ac ion he es ablishmen o egula ela ions wi h he Spanish Pa liamen (+) and asked o he many links exis ing be ween he Ins i u ions o he Ca muni y, he Mambe S a es am he candida e coun ies o be de eloped am s eng hened. (+) In his con ex , we should single ou he isi o a dele- ga ion cm he Spanish Co es o he Eu opean Pa liamen on 14 o 16 Janua y 1980. Du ing his isi , he i s since he elec ion o he Eu opean Pa liamen by di ec uni e sal su age, a se ies o eca menda ions was adop ed, in pa icula on (a)' he necessi y apidly o inish he accession nego ia ions am (b) o be egul- a I yin onned on he p og ess o nego ia ions. The nex mee ing be ween he Eu opean Pa liamen and he Co es will ake place in Spain May/June 1980. 15 Ag icul u e Ag icul u e, like indus y, has played a undamen al ole in Spain I S econanic de elo ;. oen . Ag icul u al expo s ep esen one qua e o o al expo s. Spanish ag icul u e is abo e all cqnpe i i e in he p oduc ion o ui and, in pa icula , o ci us ui , ege ables and oli e oils, which cons i u e : oo e han a hi d o o al p oduc ion and 74% o Spanish ag icul u al expo s (o which mo e han hal o he Ccmmuni y) The clima ic condli ions o he coun y and he he e ogenei y o p oduc ion s uc u es mean ha highlyccmpe i i e sec o s such as ha o he "Medi e anean" p oduc s co-exis wi h o he s whe e p oduc i i y is less sa is ac o y. This sec o has, howe e , a eal de elopnen. po en ial, and im- po an e o s a e being made o imp o e s uc u es, de elop i iga ion and use he soil which so a has been inadequa ely exploi ed. Ene gy The ene gy esou ces a e ela i ely uni opo an . In spi e o i s hyd oelec i and coal p oduc ion, Spain depends on ou side sou ces o 75. (1967) o i s ene gy supplies. An ene gy plan, es ablished in 1978 , aims a IIPde a ing consump ion, while ensu ing sa is ac o y and di e si ied supply which allows gnp g ow h. The measu es p oposed aim a educing, be ween now 1987, dependence on impo s o 54. 2%, and a di e si ying sou ces o supply. This leads o a : oo e han p opo ional g ow h in he p oduc ion o elec ic ene gy based on na ional esou, ces o coal and hyd o- elec ici y , and on less one ous o eign esou ces (in he nuclea ield). These, and he u anium depoSi s possessed by Spain a e, on he o he hand, he basis o a as in es men p og anme o he cons uc ion o supplemen a y nuclea powe s a ions. In p epa ing his s a egy, accoun has been aken o en i omen al p o ec ion and he de ence o consume s in he domes ic sec o and in small indus ies. 16- Spain s ade The sec o ial dis ibu ion o Spain' s ade wi h he es o he wo ld was as ollcMS o 1978 Food , d ink and obacco Ene gy and lub ican s Raw ma e ials, oils am a s Machine y and anspo ma e ials O he p oduc s IJ: q?o s % 11.7 28. 14. 19. 25. Expo s % 19. 25. 46. Sou ce : Basic S a is ics o he Communi y, 1979 The Ccmnuni y is by a he bigges suppl ie and he bigges cus cme o Spain. As i s cus a e g oup, he Ccmnuni y (46.3% o o al expo s) is ahead o A ica (11.4%), No h Ame ica (10.1%), Asia (9.8%), he o he Eu opean coun ies such as SWi ze - land SWeden, e c. (8. 9%), AL'PJ.J::, (The La in-Ame ican F ee T ade Associa ion) (7 . 5%) am CCMEDJN (2.7%). (1978). As i s geog aphical supplie g oup o Spain, he Ccmnuni y (34. o o al impo s) is ahead o Asia (25.5%), No h Ame ica (14.1%), A ica (9%), AL'PJ.J::, (6.7%), he o he Eu opean coun ies (SWi z- e land, Sweden, Aus ia, e c.) (5. 5%) and cx:MEXX)N (2%) (1978). Sou ce : OECD. Balance o paymen s Spain' s cu en balance o paynen s, un il 1977, was g ea ly in de ici , bu his' was ans o med' in o a su plus o 2 millia d dolla s o 1978 and was o he sane o de o 1979. The o igin o his posi i e esul , aIIDng o he hings, was a pa ie- ula inc ease in expo s. IJ: q?o s , on he' o he hand, inc eased a : oo e slowly. Besides, e enues an ou ism inc eased, al- hough less apidly han be o e. Fo 1980, because o he gene al slow~down in he wa ld econany, he cu en balance o paynen s should once : oo e be in de ici . G oss in e nal p oduc In 1978, he g oss in e nal p oduc pe head was 3, 147 UCEwhich was be ween ha o I aly and ha o I eland. Se ices ep esen he la ges cClIlpOnen in GNP (50%), ollCMed by indus y (40%) and ag icul u e. (10%) .