ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)756
Vol.1979/0251

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM<79)756final
Brussels.10thDecember1979
PROPOSALFORACOUNCILREGULATION <EEC)
ONCOMMUNITYAIDFORINDUSTRIAL RESTRUCTURING AND
CONVERSIONOPERATIONS!!^^E^MAN-MADEFIBRESSECTOR
vs
Iν"χ•s'"
■V-'/
(presented bytheCommissiontotheCouncil)
COM(79)756final

EXPLANATORY MEMORANDUM
i
* . -
The Council andParliament entered appropriations for commitment totalling
20million EUAandappropriations forpayment toalling 17million EUA in
the1978 Budget for _industrial conversion andrestructuring operations .
These appropriations Mere carried over tothe1979 Budget and Mi11lapse
attheendof1979 ifthey have notbeen committed andpaid bythat time ."'
». »
On26October ,1978 ,theCommission sent theCouncil aproposal for a
*
Regulation ontheuse oftheappropriations .On11January ,1979 ,this
proposal Massupplemented byproposals forDecisions bringing shipbuilding
andthetextile industry ,particularly man-made fibres ,Mithin the scope of
the Regulation .Theproposal for aRegulation Mas notdiscussed bythe
Permanent Representatives Committee unti I7November ,1979 :asaresult ,
itMill not come into force intime toserve asthe legal basis forusing
theappropriations before theendoftheyear .
TheCommission therefore suggests that the 1978 appropriations beused on
anadhocbasis forrestructuring andconversion operations intheman-made
fibres sector .This exceptional procedure Mould cover theuse ofonly part
ofthe1978 appropriations ;consequently ,itMould notset aprecedent for
the use ofappropriations entered inthe1979 Budget .Thechoice ofthe
man-made fibres ,sector isjustified bythe fact that itisundergoing a
crisis ofexcess production capacity Mhich hasprompted the industry to
seek Mays ofbringing inthenecessary rationalization measures .The
Commission believes that ;byusing theappropriations inquestion ,itcan '
make aneffective contribution toachieving these objectives .
Theappropriations Mould beused exclusively tofinance investment projects
Mith the folloMing aims :
-tocreate jobs in
Mould replace the
inthe industry 'sactivities other than man-made
fibre production activities of
rationalization efforts ;fibres production Mhich
the companies involved

-toadapt theproduction apparatus inline with therestructuring objec­
tives ,which arewell known toandaccepted byCommunity producers ,
without increasing man-made fibre production capacity .
Toenable this financing operation togoahead ,theCommission presents
the attached proposal for aRegulation :itincorporates the basic features
oftheproposal for aRegulation of26October ,1978 ,which wasendorsed
byParliament andtheEconomic andSocial Committee ,butpertains solely
totheman-made fibres sector ,asadvocated bytheCommission initspro­
posal for aDecision of11January ,1979 .
Asthere isvery little time until theend ofthe year ,itisproposed
that theaidshould beinthe form ofinvestment premiums .The aidwould
beprovided forprojects submitted bythe industry which theCommission
hasselected onthebasis ofthe criteria andprocedures setout inthe
proposal for aRegulation .
Since time issoshort and Parliament and the Economic and Social Committee
have endorsed theproposal for aRegulation of26October ,1978 ,the
Commission considers that itisnotnecessary toconsult these twobodies
again .

PROPOSAL FOR
COUNCILREGULATION (EEC)n°
ONCOMMUNITY AIDFORINDUSTRIAL RESTRUCTURING ANDCONVERSION OPERATIONS
INTHEMAN-MADE FIBRESSECTOR '
♦
*
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,,.■
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle235thereof,.
HavingregardtotheproposalfromtheCommission,
HavingregardtotheOpinionoftheEuropeanParliament,
(2)HavingregardtotheOpinionoftheEconomicandSocialCommittee,
(3)WhereasaproposalforaRegulation onCommunityaidforindustrial
restructuring andconversionoperationshasbeenlaidbeforetheCouncil,
WhereastheCommissionhasbeennotifiedofanumberofinvestmentprojects
whichitconsiderstobeeligibleforaidunderthecriteriasetoutin
theabovementioned proposalforaRegulation ;
Whereasthesituationintheman-madefibressectorjustifiesimmediate
actionasaprioritymeasure,tosupporttherationalization measures
takenbytheindustryintheCommunityandtoreduceitsproduction
capacity, .
0)OJnC127,21/5/79,p.52
(2)OJn°C128,21/5/79,p.1
(3)OJn°C,16/11/78,p.3

HAS ADOPTED THIS REGULATION : _
Article 1
!« Tnepurpose cftheaids granted under this Regulation -shall beto
assist theB>an-m.?,de fibres industry tofinance :
- xr>ves ttnertts tor therestruc 'txir i->.<?ofindustrial establishments
, operating inthenan-made fibres sector ,provided "that .theaim
ofcues 3.;*v«?.star»entsis'_oreduce production capacity ;
,~ conversion inves tiuenfcs carried out .bysuch estabi ishiuents forthe
purpose ofchanging toother types ofactivity ;
concerned
irivestmei-.ts tohelp create abyother undertakings }■in-theareas /
'(eiftV'lcyuieot catchment areas .,) .and .inother fields ofactivity ,
new .joes intented primarily forworkers made redundant bythe
restructuring orby 'thetotal orpartial closure ofsuch
establishments .
2.Anydecisions bytheCommission togrant such aids shall betaken
before 3!'December 197S .
V
Article 2
!= The aid referred toinArticle 1shall take the form ofinvestment
premiums .
2.Such premiums shall amount to5.7 %oftheinvestment ;they shall
beraised to9.5 %where theinvestment isundertaken ;
.a)inthelastfavoured regions orinregions orareas particularly
affected byrestructuring operations ; -
b)bysmall andmedium -sized enterprises .

The investors shall supply any information which theCommission
maydeem necessary and shall accept theinspections required for
checking that theprojects arebeing properly carried out .A
contract shall beconcluded tothis effect between the investor to
whom theaid isgranted and theCommission .This contract shall
also establish theprocedures forpayment oftheaid .
Article 3
Ifaninvestment project which hasreceived aidhasnotbeen carried
outasplanned oriftheconditions ofthis Regulation arenot
fulfilled ,theaidmaybewithdrawn inwhole orinpart bythe
Commission .
Member States shall make available tothe Commission all information
required for theapplication ofthis Regulation and shall take all
steps tofacilitate such supervision astlieCommission mayconsider
useful ,including on-the-spot checks .
Notwithstanding verification carried outbyMember States in
accordance with national laws ,regulations andadministrative
provisions ,andwithout prejudice totheprovisions ofArticle 206
oftheTreaty ortoanyinspection arranged pursuant toArticle 209 (c)
oftheTreaty ,thecompetent authorities oftheMember State shall ,
attherequest oftheCommission andwith theagreement pfthe
Member State ,carry outon-the-spot checks orenquiries about the
operations financed .Officials oftheCommission may take part in
such checks orenquiries .TheCommission may fixtime limits for
carrying outsuch checks .
Theobjective ofthese on-the-spot checks orenquiries about operations
financed shall betoverify :
a)theexistence ofsupporting documentary evidence anditsconformity
with the ,operations financed ;

-4-
b)theconditions under which theoperations financed areexecuted
and inspected ;
c)theconformity ofthework completed with theoperations financed .
Article 4
Theprovisions ofthis Regulation shall notprejudice theapplication
ofArticle 92,93and 94oftheTreaty .
Article 5
This Regulation shall enter into force onthedayfollowing itspublication
intheOfficial Journal oftheEuropean Communities ..

FINANCIAL RECORD
1.Title ofbudget heading -
Article 375 -industrial restructurations and reconversion .
2.Legal basis -Art .235
3.Description ofaction :
Action inthe synthetic fibres sector .
. »
4.Justification ofaction :- '
Toseeexplanatory memorandum
5.Financial implication ofaction onintervention expenditure :
5.1 action oflimited duration :total cost over whole
period :14.920.000 E.U. A.
5.2 .Proportion offinancing (in%)coming from theCommunity budget ,
national budgets andother sectors (ornational level ).
6.Financial implications inrespect ofthenumber ofpersonnel and
current operations :none .
7.Financing ofintervention spending .
7.1.Possible financing bycredits written into theelevant budget
heading .
8.Type ofcontrol totbeapplied :normal