The Assembly notes that the vigorous economic expansion characteristic
of the Western European economy since 1953 has continued throughout
the year 1955, but considers it its duty to repeat the warning against
complacency which it gave in its Reply to the Sixth Annual Report
of O.E.E.C. in view of certain dangers inherent in this economic
expansion. In particular, the Assembly calls upon O.E.E.C. to direct
its attention in formulating its policy on the following problems,
which are discussed in the Report and which cause concern as to
the future.
a While the inflationary
pressures in evidence throughout most of Europe necessitate concerted
measures to prevent an acceleration of the forces of disequilibrium,
such action must take into account the need for a sustained high
level of agricultural and industrial investment – which remains
a pre-requisite for the longer-term growth of the European economy.
b In some of the countries whose state of economic development
has not yet reached the desired levels a sustained high level of
investment in the infrastructure of the economy should be encouraged.
c In view of the lack of substantial progress in the abolition
of quantitative restrictions during 1955, further advances towards
freer intra-European and world trade should be sought by attacking
the remaining barriers to trade as a whole. In this connection,
the Assembly urges the particular need not only to consolidate this
liberalisation and to carry it forward, but also to take early and
effective action to reduce present inequalities in tariff protection
and to lower the level of tariffs in general on goods predominantly traded
between the countries of Western Europe and between them and the
overseas countries with which they have constitutional links.
d The Assembly also again stresses the urgent necessity
of ensuring the removal of trading practices, such as dual pricing
in the export of raw materials and export subsidies, which – whether
disguised or open – are frequently the cause for the adoption and
maintenance of protective counter-measures.
e Satisfaction with the improvement over the last three
years in the dollar balance of payments of Western Europe is qualified
by the fact that the surplus achieved is essentially due to the
substancial and – during 1955 – growing military revenue from the
United States. In particular, it must be a matter of concern that, while
imports from the United States have shown a very considerable expansion,
European exports to that country remained inadequate in spite of
the continued economic expansion in the United States. It therefore
remains urgent to find means of improving the dollar balance of
trade and commercial transactions through the common efforts of
European countries, the United States and Canada.
f While expanding production has in most European countries
absorbed the available labour force and led to an increasing shortage
of skilled manpower, considerable unemployment still persists in
several member countries. The Assembly, having regard to the influence
of lower birth-rates in some countries on the labour supply in years
to come, emphasises the importance to a continued growth of the European
economy of a larger measure of intra-European labour mobility and
urges O.E.E.C. to pursue this matter actively.
g While noting with interest the positive attitude taken
in the Report as regards the responsibility of O.E.E.C. and of national
Governments for contributing towards a solution to the needs of
under-developed areas both in Europe itself and overseas, the Assembly
urges O.E.E.C. to take the lead in formulating concrete proposals
for constructive and effective assistance. In this connection, the Assembly
draws the attention of O.E.E.C. to its proposal for the creation
of a European Development Fund, which is contained in Recommendation
95, adopted by the Assembly on 20th April, 1956.
