EUROPEAN Community costs and bureaucracy come under sharp criticism

today from the Confederation of British Industry in a memorandum to

commission president Jacques Delors. The CBI also puts forward proposals

for increasing the EC's competitiveness.

It emphasises, not for the first time, that the EC has lost a fifth of

its share of world trade since 1980 and one worker in 10 is unemployed.

It risks losing even more trade and jobs unless it takes urgent steps to

reduce costs and bureaucracy.

The memorandum has been sent by CBI president Sir Michael Angus in

response to the European Commission's White Paper ''Growth,

Competitiveness and Employment'' to be presented to leaders at a

Brussels summit on December 11. The CBI highlights a range of evidence

suggesting that Europe is losing competitiveness.

Competition from newly industrialised countries is likely to intensify

over the current decade. The CBI again calls for an early completion of

the GATT round of trade talks and the development of the single market.

It wants more policies to encourage industrial development, more

flexible job markets, and a reduction in high public spending and

taxation.

The memorandum points out that exports of manufactures to outside the

Community fell from 22.4% of the world total in 1980 to 17.8% in 1992.

Since 1985, EC export volumes to the rest of the world have declined by

7% while import volumes have risen by 70%.

As a result, the Community moved from a trade surplus with the US in

the mid-1980s to a trade deficit in the early 1990s. The trade deficit

with Japan has widened during the same period. A substantial deficit

($11.3 billion in 1991) has emerged with the newly industrialised

countries of the Pacific Rim.

During the past decade, unit labour costs have risen 13% more than

those of the US, nearly 60% more than those of Japan and almost 9% more

than the average of nine major competitor countries. The CBI blames

inflexible wage structures, including minimum wages in most EC

countries.

The CBI is calling for the Community to adopt a six-point strategy to

enhance wealth generation and employment. A satisfactory GATT agreement

must be achieved to provide a stable and open international trading

environment.

Europe needs a strong competitive domestic market as a platform to

meet tough international competition, the CBI says.

The single market must be consolidated and developed though more

even-handed enforcement of trade regulations, opening up markets where

significant barriers still exist, implementation of a strong competition

policy, and a continued reduction in state aid to industry.

The CBI says more flexible labour markets must be promoted and

Community regulation stemmed.