52 OfficialJournaloftheEuropeanCommunities
4.2.71 OfficialJournaloftheEuropeanCommunities NoL28/15
COUNCILDECISION
of1February1971
onthereformoftheEuropeanSocialFund
(71/66/EEC)
WhereastheFundmustlikewisecontributetothe
furtheranceofexistingmeasuresforsecuringforall
workersemploymentthatbestcorrespondstotheir
abilities,andtoensurecontinuityofemploymentand
ofincome;
WhereasitisthereforenecessarythattheFund
shouldbeabletointervenetomeetsituationsarising
fromCommunityDecisionsorrequiringactionat
Communitylevelandtomeetalsosituationsarising
indirectlyfromthefuntioningofthecommonmarket
orimpedingtheharmoniousdevelopmentofthe
Community ;
WhereastheDecisionof21April19704providedfor
thereplacementoffinancialcontributions from
MemberStatesbytheCommunities'ownresources;THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity,andinparticular
Article.126thereof;
HavingregardtotheOpinionoftheCommission 1;
HavingregardtotheOpinionoftheEuropean
Parliament 2;
HavingregardtotheOpinionoftheEconomicand
SocialCommittee 3;
WhereasArticle123oftheTreatyassignstothe
EuropeanSocialFund(hereinaftercalledthe'Fund')
thetaskofrenderingtheemploymentofworkers
easierandofincreasingtheirgeographicaland
occupationalmobilitywithintheCommunity,and
whereasthemeasuresnowinforcehaveprovedtobe
inadequatetopermittheFundtoaccomplishthis
taskeffectively;
Whereas,inpursuingthistask,accountmustbe
takenofthedemandsofsocialprogressinthefaceof
technicaldevelopment ;
Whereasaninterdependence existsbetweensocial
policyandeconomicpolicy;
Whereasitisimportanttocontinueeffortstoremedy
thestructuralunemployment andunderemployment
stillexistinginvariousareasoftheCommunity ;
Whereasforthispurposethereisalsoneedto
intensifypreventiveactionagainstunemployment and
underemployment ;HASADOPTEDTHISDECISION :
I.ABOLITION OFTHEASSISTANCE PROVIDED FOR
INARTICLE125OFTHETREATY
Article1
SubjecttotheprovisionsofArticle10ofthis
Decision,theassistanceprovidedforinArticle125of
theTreatyshallnolongerbegranted.
II.DEFINITION OFTHENEWTASKSOFTHEFUND
Article2
ThenewtasksoftheFund,whichareinaccordance
withtheobjectiveslaiddowninArticle124ofthe
Treaty,aresetoutinArticles3,4and5.
1OJNoC131,13.10.1969,p.4.
2OJNoC2,8.1.1970,p.7.
3OJNoC26,4.3.1970,p.6. 4OJNoL94,28.4.1970,p.19.

OfficialJournaloftheEuropeanCommunities 53
A.Scopeasregardspersons
Article3(c)shalldetermine,whereappropriate,thecategories
ofpersonswhoaretopursueactivitiesas
self-employed personstowhomassistancemay
begrantedfromtheFund.
Article51.TheFundmaygrantassistanceformembersof
thelabourforcewho,havingbenefitedfroma
measuretakenunderthepowersoftheFund,areto
pursueactivitiesasemployedpersons.
2.TheFundmayalsogrant,inspecialcasestobe
determinedbytheCouncil,assistanceforpersons
whoaretopursueactivitiesasself-employed persons.
B.Areasofintervention
Article41.TheFundcanalsotakeactionwherethe
employmentsituationincertainregions,incertain
branchesoftheeconomyorincertaingroupsof
undertakingsisaffectedbydifficultieswhichdonot
arisefromanyparticularmeasuretakenbythe
CouncilwithintheframeworkofaCommunity
policy,butwhichresultindirectlyfromtheworking
ofthecommonmarketorimpedetheharmonious
developmentoftheCommunity .
Inanysuchcases,assistanceshallbegrantedto
eliminatelong-termstructuralunemployment and
underemployment ,totrainahighlyskilledlabour
forceand,furthermore ,formeasuresforthe
absorptionandreabsorptionintoactiveemployment
ofthedisabled,andofolderworkers,womenand
youngworkers.
2.Theprovisionsrequiredtoimplementthis
Decision,tobeadoptedinaccordancewithArticle
127oftheTreaty,shall:
—definetheassistancereferredtoinparagraph1
whichshallbegrantedforthwithtomeetalready
existingsituationsorneedsthatrequire
immediatelong-termaction;and
—determinetheprecisecriteriawhichanoperation
mustsatisfytobeeligibleforassistancefromthe
Fund.
Assistancethusdefinedshallbegrantedwithout
furtheractionbytheCouncil,subjectonlytothe1.TheFundcantakeactionwhenthe
employmentsituation:
—isaffectedorindangerofbeingaffectedeitherby
specialmeasuresadoptedbytheCouncilinthe
frameworkofCommunitypolicies,orbyjointly
agreedoperationstofurthertheobjectivesofthe
Community ;or
—callsforspecificjointactiontoimprovethe
balancebetweensupplyofanddemandfor
manpowerwithintheCommunity .
TheFundshallbeauthorisedtointervenebya
specificDecisiontakenbytheCouncil,actingbya
qualifiedmajorityonaproposalfromthe
Commission ,thelatteractingeitheronitsown
initiativeorattherequestoftheCouncilorofoneor
moreMemberStates.
2.TheCouncil,intakingspecificDecisionsofthe
typereferredtoinparagraphI,shallstateasoneof
thegroundsofsuchDecisionsthefactthatthe
existingorforeseeableimbalanceinthefieldof
employment :
—isonascalejustifyingCommunityintervention ;
—issuchthatitleads,ormaylead,tothenecessity
foraconsiderablenumberofworkerstochange
employment,toacquirenewqualifications ,orto
movetheirhomeswithintheCommunity .approvalprovidedforinArticle7.
C.SubmissionbyMemberStatesofschemesorof
applicationsforassistanceandtheirapprovalbythe
Commission
Article6
InsuchDecisions,theCouncil:TheMemberStateorStatesconcernedshallsubmit
totheCommissiontheirschemesformeetingthe
situationsreferredtoinArticle4,andany
applicationsmadeinadvanceforassistancetomeet
thesituationsreferredtoinArticle5;eachschemeor
applicationshallproposeasetofspecificmeasures,
andshallalsogivedetailsoftheirmethods,scopeand
duration.(a)shalldeterminetheareasinwhichtheFundmay
intervene;
(b)shallstatewhichofthetypesofaiddefinedin
provisionslaiddownpursuanttoArticle127
mayqualifyforassistancefromtheFund;

54 OfficialJournaloftheEuropeanCommunities
Article7 CreditsforactionunderArticle5shallnotinany
yearbelessthan50%ofthetotalcreditsavailable.
Thisapportionment ofcreditsshallbereviewedby
theCouncilwithinthetimelimitlaiddowninArticle
11,itbeingunderstoodthatinthelongtermthe
greaterpartoftheavailablecreditsmustbereserved
foractionunderArticle4.TheCommission shallsubmittheschemesand
applicationsreferredtoinArticle6forconsideration
bytheEconomicandSocialCommittee,asprovided
forinArticle124oftheTreaty,andshallapprove
themuptotheamountofthecreditsavailableifthey
complywiththeconditionslaiddowninthe
Regulationimplementing theprovisionsofArticle
127oftheTreatyandtheDecisionstakenbythe
CouncilunderthatRegulation .III.TRANSITIONAL ANDFINALPROVISIONS
Article10
D.Rateofcontribution
Article81.TheprovisionsofthisDecisionshallapplyfrom
thedateofentryintoforceoftheprovisionsrequired
toimplementthisDecision,whichshallbeadoptedin
accordancewithArticle127oftheTreaty.
2.AssistancefromtheFund,asprovidedforin
Article125oftheTreaty,shallbegrantedinsupport
ofoperationscompletedatlatestonadatetobe
fixedbytheprovisionsreferredtoinparagraph1.
TheperiodswithinwhichtheMemberStatesmust
submittheirapplicationsforreimbursement inrespect
oftheseoperationsshallalsobedeterminedbythose
provisions .1.AssistancefromtheFundshallbegrantedatthe
rateof50%ofeligibleexpenditureinsupportof
operationsbypublicauthorities,bodiesgovernedby
publiclawandjointsocialinstitutionsentrustedwith
tasksinthepublicinterest.
2.Assistanceshallalsobegrantedinrespectof
operationsbybodiesorotherentitiesgovernedby
privatelaw,onconditionthatthepublicauthorities
oftheMemberStateorStatesconcernedguarantee
thecompletionofsuchoperations.Insuchcase,the
Fundshallcontributeanamountequaltoany
expendituretakenoyerbythepublicauthorities.Article11
TheCouncilshallreviewthisDecisionnotlaterthan
fiveyearsafterthedateofitsentryintoforceas
providedinArticle10(1).Ifnecessary,thisDecision
shallbeamendedonthebasisofafurtherOpinionof
the.CommissionbasedonArticle126oftheTreaty.E.Budgetaryprocedure
Article9
Article12
ThisDecisionshallenterintoforceonthefifthday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .1.Eachyear,onthebasisofthepreliminarydraft
budgetdrawnupbytheCommission,credits
authorisedforthefunctioningoftheFundduringthe
currentfinancialyearshallbeincludedinthebudget
oftheEuropeanCommunities .
Thefinancialregulationsadoptedinpursuanceof
Article209oftheTreatyshalldeterminethemethods
wherebytheexpendituremaybeauthorisedfora
furthertwo-yearperiodaftertheendofthecurrent
financialyear.
2.CreditsforactionbytheFundunderArticle4.
shallbeseparatefromthoseforactionunderArticle5.DoneatBrussels,1February1971.
FortheCouncil
ThePresident
M.SCHUMANN