This report on materials is not a sequel to the five or six high-quality reports published in certain Community countries over the last few years, nor does it attempt to summarize them. Nor is it a technical summary of the state of the art in new materials. It is rather to be seen as a survey of economic dynamics and strategy, carried out for the purpose of prompting political and industrial leaders throughout the European Community to reflect in some depth on the subject of materials. The report is arranged in five parts : the first is concerned with a definition of materials, the second with structural materials and their influence on the reconception of industrial processes, and this part is complemented by the third, which looks at the three main sectors using structural materials (transport, packaging, building and public works). The fourth part analyzes functional materials and the way in which they affect basic components in the technological system (information, energy, biotechnology). The fifth and last part makes a strategic analysis for Europe (in the spheres of industrial strategies, the role of the authorities and developments in employment and skills).