On the initiative of Mr. Martin Bangemann, Commissioner responsible for industry, the European Commission has adopted a communication on the situation of the European automobile industry. The Commission finds that while sales of new cars and small commercial vehicles have recovered from the slump of 1993, and both productivity and quality have improved, there has been no employment growth in the sector. While the Community can help create a favourable business environment, increasing competitiveness is primarily a matter for the industry itself. The Commission proposes the following measures: - Promoting intangible investment, through initiatives such as the "Car of tomorrow" task force, and Community training programmes, such as LEONARDO DA VINCI and the ADAPT Community initiative of the Structural Funds; - Ensuring strong and fair competition, through application of the regulations on state aids, and pushing for deregulation and market opening on a global scale, as well as supporting international harmonization of standards; - Developing industrial cooperation, particularly for SMEs in the components industry; - Creating a favourable business environment based on a modern regulatory framework, including: . European-wide type approval system; . Examination of tax differentials; . Legislation on safety issues; . Proposals for reduction of emissions.