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DOCUMENTS "COM"
COM(75)172
Vol.1975/0066

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COMMISSION OPTHE5U2.0E2AN COMMUNITIES
COM(75)172 final
Brussels .16April 1975
PROPOSAL FOR A
COUNCIL DECISION (EEC)
concerning a,
PROGRAMME OFPILOT SCHIMES AND STUDIES TOCOMBAT POVERTY
(submitted totheCouncil "bytheCommission )
C0M(75 )172final

PROGRAMS OFPILOT SCHEMES AED STUDIES TOCOMBAT
POVERTY
EXPLANATORY MHSORAIIDIM
TheCouncil ;initsResolution of21January 1974 concerning a
social action programme ,selected nine measures towhich itaccorded a
priority ;itnoted theCommission *sundertaking tosubmit toitduring 1974
thenecessary proposals concerning those priorities and itexpressed the
political will toadopt themeasures necessary toachieve those objectives
during afirst stage covering theperiod from 1974 "to1976 *
Inthecontext ofimproving theliving andworking conditions
ofpeople intheCommunity one ofthepriorities was "Theimplementation ,,
incooperation with theMember States ,ofspecific measures tocombat poverty
bythepreparation ofpilot schemes ".Furthermore itwasdecided that "the
Commission would propose ,before the endof1974 >aprogramme ofpilot schemes
tobelaunched in1975/76".
Indrawing uptheprogramme ofpilot schemes ,theCommission
consulted with officials from thegovernments oftheMember States andwith
representatives ofindependent social welfare organisations .Aworking party
representative ofawide range ofpublic ?ndprivate organisations was formed
which drew upaconsultative document .This document wasdebated ataseminar
convened inBrussels inJune 1974 szk!reviewed bythegovernment officials
inSeptember .Onthebasis ofthis document aprogramme ofpilot schenes
wasdrpwn up ,approved bytheComniseion and sent totheCouncil ina
Communication ,(Doc .SEC(74 )5225 final )dated 8January 1975•
purpoce oftheDecision istosetout thetypes of
schemes and studies tobepromoted and theprocedures tobefollowed "to
implement specific measures tocombat poverty bydrawing uppilot schemes ".

Article1
Paragraph1containsthedefinitionofpilotschemesandstudieswhichmay
bepromoted,carriedoutorassisted,inmostcasesitisenvisagedthatthe
Commissionwillbegrantingfinancialassistancetoschemespromotedbythe
MemberStatesand/orprivateorganisations ,butthepossibilityisbeingheld
openfortheCommissiontoassistschemeslaunchedonitsowninitiative.
Pilotschemesareactionresearchprojects.Theyareintendedasthemajor
componentoftheprogrammeandthetwoessentialfeaturesherearethat
theschemesshouldservepopulationsinorvulnerabletopoverty(thus
beingrelevanttotheobjectiveofcombattingpoverty)andthattheyshould
bepioneeringventurescapableofinformingfuturepolicy.
Populations "vulnerable"topovertyhavebeenincludedinthetarget
populations soasnottoexcludeschemeswhichareengagedwhollyor
partlyinpreventiveoraftercarework-e.g.dealingwithlocalities
orcategoriesofthepopulationatrisk,suchasurbanrenewalareasor
drugaddicts.
Iherequirementtoinformpolicymeansthatexperimentaloneisnotenough-
apilotschememustshowthewaytoEomefurtherdevelopment.Thedevelopment
offuturepolicyistheultimateobjectiveoftheprogramme.
Theprovisionforpilotstudiesofmorefundamentalresearchisincluded
inrecognitionofthefactthatverylittleisknownofthenature,extent
anddynamicsofpovertyattheEuropeanlevel.Whileitisnotintendedto
waitupontheresultsofbasicresearchbeforelaunchingactionresearch
venturescertainbasicresearchiscalledforalongsidetheactionresearch
elementsoftheprogramme.Itisenvisagedthatthepilotstudieswill
concentratemainlyoncross-national researchandwillabsorbasmall
proportionoftotalfunds.
AbasicconditionforCommunitysupportisthattheschemeshouldprovide
fortheparticipation oftheindividualsorgroupsserved.Thisofcourse
appliesonlytopilotschemesasthereisoftennodefinablepopulation
directlyservedbypilotstudies.However,clientparticipation maynotbe
impossibleeveninthelattertypeofscheme-e.g.intheformofadvisory
committees-andwouldbeencouraged.Hopreciseformulaeforparticipation
arelaiddown;eachproposalwillbejudgedonitsmerits.

-3-
Schemes ofapurely local ornational relevance areproperly theconcern of
local ornational organisations .TheCommission will address itself tothe
support ofschemes which tackle problems common toseveral Member States or
where ,even iftheproblem tackled isnotyetcommon ,theresults maybeof
more than national relevance -e.g. where there isaproblem that maydevelop
elsewhere orwhere theexperience gained bythescheme canperhaps beapplied
inother broader fields .
Paragraph 2.Adefinition ofpoverty isanessential corollary tothe
definition ofapilot scheme orstudy .Thedefinition chosen avoids attempting
anexhaustive list ofgroups defined bytheapparent causes oftheir poverty ,
such asunmarried mothers ortheunemployed ,andconcentrates instead onthe
common feature ofrelative deprivation .Thedefinition focuses onmaterial
deprivation -"income ,goods andservices "rather than non-material aspects ,
except insofarasthelatter arelinked with material deprivation .
Thestandard against which therelative deprivation ismeasured istobethe
average "ordinary living patterns ,customs andactivities "intheMember
State concerned .Atthemoment noattempt isbeing made tosetupaEuropean
poverty standard ,although this maybepossible inthelight offurther
research .
Article 2
Paragraph 1sets outthebasis forfinancial assistance toschemes ,which
will beaproportion oftheforecast costs subject toadjustment ifthe
forecast costs exceed actual expenditure .Theparagraph sets afifty per
cent limit fortheusual financial participation oftheCommunity .Infact
participation maybeless than this .Itisalso possible that thepercentage
support mayvary from year toyear ;perhaps reducing theCommunity share
atapre-determined rate .
Ingeneral itisconsidered advisable that funding should beapartnership
between theCommunity andtheMember States orpublic orprivate organisations
within theMember States ,soastogive other authorities ororganisations
atangible commitment tothesuccess ofthescheme .However asmall proportion
ofthetotal funds istobereserved for "exceptional cases "which theCommission
maywish tosupport athigher rates .Even under this provision however itis .
envisaged that theCommission would rarely finance 100percent ofthecost .

Paragraph2describesthetypesofcasesinwhichassistanceofmorethan
50%may"begiven.Cross-national studiesareintendedtoformpartofthe
overallprogrammebuttogetprojectsrunninginparallelinseveralMember
Statesmightbedifficultifthe50centlimitonCommunitysupportwere
imposedineachstate.AlsoitisintendedthattheCommissionshouldreserve
itselfacertainmarginoffreedomtoprovide"riskcapital"inothercases
offeringparticularbenefits.
Article3
ThisarticlegivestheCommissiontherighttocollect,useanddisseminate
thisexperience.ItalsoprovidesfortheCommissiontorunitsownevaluation
systemsinconsultation withthoseresponsibleforfinancingandexecuting
thescheme.Theserightsarenotexclusiverights,inthattheywillnot
precludetheotherbodiesconcernedfrompublishingtheirownreportsand
evaluations .
Thefinalsentenceistoprotecttheconfidentiality ofindividualsserved
bythescheme,inaccordancewithprofessional standards.
I
Article4
Paragraph1laysdowntheroleofnationalgovernmentsintheprocessof
submittingapplications .
Paragraph2makesanyprivateorganisations orlocalauthorityeligibleto
beconsideredforCommunityaid.
Paragraph 3providesthatinthecaseofschemeswhichtheCommissionwishes
topromoteonitsowninitiative,finalapprovalmustbeobtainedfromthe
nationalgovernmentconcerned.

-5-
Article 5
I
Paragraph 1provides fortheestablishment ofanAdvisory Group and
indic<ites itscomposition .
Paragraph 2sets out thecompetence oftheGroup which istobevery broad .
Inparticular ,itwill beconcerned with evaluation procedures andrelations
between schemes andother interested bodies including public authorities .
This last isinter alia toprovide aforum forthesettlement ofdisputes
which mayarise .
Article 6.
This provides forareport ontheCommission 'sactivities inthis field and
itsproposals forfuture initiatives tobesubnitted totheCouncil and the
European Parliament before theendof197a *Anaccount ofthis activity and
thegeneral evolution ofanti-poverty policies will beincluded inthe
annual Report ontheDevelopment oftheSocial Situation .
Article 7
This provides forthecoming into effect oftheDecision inaccordance
with theusual procedure .

BRAFT DECrSXOÎf
THE COUNCIL OFTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic
Community ,and inparticular Article 235thereof ?
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament ;
Having regard totheOpinion oftheEconomic andSocial Committee ;
Whereas ,pursuant toArticle 2oftheTreaty establishing the
European Economic Community ,theEuropean Economic Community shall
have asaparticular task topromote throughout theCommunity a
harmonious development ofeconomic activities ,acontinuous and
balanced expansion ,anincrease instability and anaccelerated
raising ofthestandard ofliving and closer relations between the
States belonging toit;
Whereas theabove objective isinconsistent with thepersistence of
pockfets ifmaterial ipovetty in-the
Whereas the Heads ofState orofGovernment affirmed attheir
conference inParis inOctober 1972 that ,economic expansion isnot
anendinitself but should result inanimprovement ofthequality
oflife aswell asofthestandard ofliving andinvited the C
Community institutions todraw upasocial action programme
providing forconcrete measures and thecorresponding resources ;
Whereas theCouncil initeResolution of21January 1f7^' concerning
asocial action programme expressed thepolitical will toachieve
theobjectives contained intheprogramme during afirst stage
covering theperiod 197^to1976 ;
Whereas theCouncil laid down asapriority inthesaid Resolution
theimplementation ,inco-operation with theMember States ,of
specific measures tocombat poverty bydrawing uppilot schemes ;
andnoted theCommission 'sundertaking tosubmit ,during 197^»the
necessary proposal concerning this action ;

-2-
Whereas the Commission submitted t6the Council aCommunication
dated 8January 1975 concerning aprogramme ofpilot schemes and
projects tocombat poverty ;
Whereas anaction bytheCommunity isnecessary toachieve an
objective asdealt with and that such powers cahbefound in
Article 235oftheTreaty ;
Whereas itisrecognised l>ytheMember States aswell asby
independent organisations concerned with theproblem that a
significant minority ofthepopulation ,oftheCommunity isin
poverty asisevidenced inparticular bythereports submitted tothe
Seminar "Action Against Poverty "held bytheCommission in
Brussels 2k-27June 197^5
Whereas such projects caninform future policies atnational and
Community level andbecomplementary totheother actions ofthe
Community ,inparticular those contained inthesocial action
programme and intheoperations oftheEuropean Social Fund ;
DECIDES
Article 1
1.Within thelimits oftheappropriations allotted forthat -
purpose -intheCommunity budget ,theCommission maypromote ,carry
out orassist :
-pilot schemes ,which'
(a)test outnewmethods ofmeeting theneeds ofpersons inor
vulnerable topoverty with thepurpose ofinforming future policies
atthenational orCommunity levels ;
(b),provide fortheparticipation ofthose served bytheschemes ,
both intheoperation and ,sofaraspossible ,intheplanning of
the schemes ;
(c)areofinterest totheCommunity asawhole inthat they
deal with problems common tomore than oneMembbr State orinthat
theexperience gained bytheschemes mayberelevant tothe
formation ofpolicy atCommunity level ; -
-pilot studies which aimtocontribute totheunderstanding ofthe

r3~
extent anddynamics ofpoverty insuch awayastoinform future
policies atnational andCommunity levels .
2.Forthepurposes .ofthis Decision .-individuals orfamilies maybe
considered ingeneral tobeinpoverty ;when they have acommand of .-
*•. sodeficient that they areexcluded from theordinary
IJ.■'-u'£ f.:Sterns ,customs andactivities oftheMember .State inwhich
they live .Byresources ismeant cash income ,goods andservices
both publicly andprivately provided . ' •
Article 2
1.Community aid shall not ,except foroperations mentioned in
paragraph 2ofthis article ,exceed 50%oftheactual cost ofa
pilot scheme' orstudy.'
2.Community aidupto100$ maybegranted inthecase ofoperations
involving more than oneMember State which areconsidered particularly
important -tobecarried outorinthecase of "operations which are
considered asoffering particular benefits togroups which have not
yetattracted adequate outside support.'
\ ' Article 3 ' *'
1.TheCommission shall ensure that theperson orbody responsible
forthepilot scheme orstudy shall provide regular reports onthe
progress ofthescheme orstudy totheCommission with such further
information astheCommission considers necessary .TheCommission
shall also conduct such evaluation procedures' asmaybedetermined
inconsultation with the ;persons orbodies concerned .Such information
andevaluations maybeused bytheCommission fb^thepurpose of
inter-project andcross-national comparisons andmaybepublished or
made available tothird parties at .thediscretion oftheCommission .
Therights ofthe -Commission tousesuch information ^aridevaluations r
shall notpreclude other bodi.eg concerned from collecting and .....
publishing information relating tothepilot schemes andstudies .
Notv /ithstanding theabove theCommission shall inallcases respect
theanonymity ofindividuals served bypilot schemes orindividuals
providing information forpilot studies .

-4-
Artide -, . •
1.Applications forCommunity aidunder this Becision shall be
submitted totheCommission bythejMerober State onwhose territory
the scheme ,isintended tooperate * . / ,••>
2.Anypublic orprivate body which isconsidered PU"1--3f^
'carrying outpilot schemes orstudies shall beeligible forsuch .aid .
3.TheCommission maypromote pilot schemes orstudies onitsown
initiative .Before doing so,itshall obtain theapproval ofthe
Member State onwhose territory theoperation istobecarried out .
Article 5
1.TheCommission shall setupanAdvisory Group composed of
representatives oftheGovernments oftheMember States and
independent experts .
2.TheCommission mayconsult theAdvisory Group onanyquestion
which itconsiders important with regard totheimplementation of
this Decision andinparticular with regard totheevaluation ofthe
results ofpilot schemes andstudies and toquestions concerning
co-operation andco-ordination between schemes and studies andthe
public andprivate bodies concerned .
Article 6
Before the endof1976 theCommission shall submit to .theCouncil
and totheEuropean Parliament areport onitsactivities concerning
pilot schemes andstudies promoted ,carried out .orassisted under
this Decision andproposals forfuture initiatives .
Article 7
This Decision shall enter into force onthefifth dayfollowing its
publication intheOfficial Journal oftheEuropean Communities .\.