They can do this by writing off all the poorest countries’ debts, by taking measures to alleviate the position of threshold countries, by no longer imposing ‘structural adjustments’ as conditions and, of course, as has been said, we have to make this part of an all-round aid policy and, with all haste, seek new sources of finance.

If we agree with the view that the most effective response to upheavals in the structure of world trade and to the effects that they have on workers is to take pro-active steps such as investment in the creation of new jobs, support and encouragement for business enterprise, increased funding for science and research and greater flexibility on the job market (which will create the conditions for an overall increase in Europe's competitiveness), we should welcome the proposal to set up a European Globalisation Adjustment Fund (EGF) - which, for a number of reasons, should be brought into existence straight away.

Monetary policy is facilitating these adjustments by supporting aggregate demand, with the goal of keeping the economy near its full production potential and inflation on target.

5.2. The Commission has pursued the policy of structural adjustment support and implemented the relevant measures in a manner which has been considered satisfactory overall, bearing in mind that it is a new instrument for development aid policy and is complex by its very nature.

3. Topics for the meeting Since most of the Mediterranean partner countries have entered, or are going to enter, into intensified economic relations with the Union (customs union or free trade) and many of them have serious problems in maintaining their economic aggregates, or as regards structural adjustment or shortcomings in sectoral policies (although the situations are fairly diversified), it would appear useful to take the following subjects for discussion: - analysis, from the macroeconomic policy point of view, of the structural changes resulting from the introduction ...[+++] of free trade with the EU (including the effects as regards competitiveness and budgetary policy issues); - examination of the structural reform programmes (global, sectoral and concerning the regulatory and legislative framework) implemented by the Mediterranean countries in order to promote the proper functioning of the Association Agreements; - examination of issues linked specifically with the reform of the Union partners' national financial sectors; central banks, commercial banking, risk-capital instruments, and banking training, etc (if necessary, this subject could be looked at in greater detail at a later stage).

These principles, unanimously approved by the Council, stressed that the public authorities are responsible for creating a stable environment conducive to industrial activity, for facilitating the requisite structural changes and making sure that the markets work properly, by making coordinated use of all the policies with a bearing on industry, i.e. foreign trade, competition, internal market, research and development, networks, economic and social cohesion and small business policy. - In 1992 the Treaty on European Union enshrined industrial competitiveness as one of the objectives of the Community and, for the first time, included a t ...[+++]itle on industry (Article 130). - In 1993 the White Paper on growth, competitiveness and employment submitted to the European Council in Brussels set objectives and priorities designed to create the conditions for dynamic growth which will generate more jobs based, in particular, on the information society and on improving European industry's position in global competition. - Now the Commission intends to define how to attain those objectives and to indicate the action needed to make the European Union's industry more competitive".