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Report drawn up on behalf of the Committeeon Agriculture on A. the proposals from the Commission of the European Communities to the Council (Doc. 1-893/83-COM(83) 548 final) for: I. a regulation amending Regulation (EEC) No. 804/68 on the common organization of the markets in milk and milk products. II. a regulation laying down general rules applying to the milk sector levy specified in Article 5(c) of Regulation (EEC) No. 804/68. III. a regulation laying down general rules applying to the milk sector levy specified in Article 5(d) of Regulation (EEC) No. 804/68. B. the proposals from the Commission of the European Communities to the Council (Doc. 1-996/83-COM(83) 611 final) for: I. a regulation amending Regulation (EEC No. 1723/81 as regards the possibility of granting aids for the use of butter in the manufacture of certain food-stuffs. II. a regulation amending Regulation (EEC) No. 1411/71 as regards the fat content of drinking milk. III. a regulation laying down general rules on the granting of aid for concentrated skimmed milk and concentrated milk for use as animal feed. IV. a regulation amending Regulation (EEC) No. 1269/79 with regard to the terms for the disposal of butter at a reduced price for direct consumption. C. the proposal from the Commission of the European Communities to the Council (Doc. 1-1113/83)-COM(83) 644 final) for a regulation amending Regulations (EEC) No. 1078/77 introducing a system of premiums for the non-marketing of milk and milk products and for the conversion of dairy herds.

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This paper conceptualizes the European Union (EU) as a system of differentiated integration characterized by both variation in levels of centralization (vertical differentiation) and variation in territorial extension (horizontal differentiation) across policy areas. Differentiation has been a concomitant of deepening and widening and has increased and consolidated as the EU’s powers, policy scope, and membership have grown. Turning to explanation, the paper attributes the pattern of differentiated integration in the EU to the interaction of interdependence and politicization. Differentiation among the member states (internal differentiation) results from supranational integration under conditions of high interdependence and politicization. By contrast, external differentiation (the selective policy integration of non-member states) occurs in highly interdependent but weakly politicized policy areas. These constellations are illustrated in case studies of differentiation in the internal market, monetary union, and defence.

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Germany's economic and social system faces immense economic, social, and political demands. These may be encapsulated in challenges like "new management concepts and labor policies," "deregulation of the infrastructure sector," "globalization," and "reunification." The paper analyzes these challenges and changes to the corporatist system of industrial relations--a cornerstone in .Model Germany's specific economic success and social consensus until now.