31. 12.83 Official Journal of the European Communities No C 360/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation amending Regulation (EEC) No 724/75 
establishing a European Regional Development Fund 
COM(83) 649 final 
(Submitted by the Commission to the Council on 18 November 1983) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular Ar­
ticle 235 thereof, 
Having regard to the proposal from the Commis­
sion, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Council Regulation (EEC) No 724/75 (•), 
as last amended by Regulation (EEC) No 3325/ 
80 (2), established a European Regional Develop­
ment Fund, hereinafter referred to as 'the Fund', de­
signed to correct the main regional imbalances in 
the Community; 
Whereas Article 22 of the said Regulation provides 
that the Council, on a proposal from the Commis­
sion, should reconsider this Regulation before 1 Jan­
uary 1982; 
Whereas the coordination of national regional poli­
cies with each other and with that of the Community 
is an essential element of Community regional poli­
cy, intended to promote the convergence of national 
economies and a more balanced distribution of 
economic activities within Community territory; 
Whereas the two tasks assigned to the Fund, which 
are directly related to the fundamental objectives of 
the Community's structural actions, are, first, the 
(>) OJ No L73, 21.3. 1975, p. 1. 
(2) OJ No L 349, 23. 12. 1980, p. 10. development and structural adaption of underdevel­
oped regions and, secondly, the conversion of de­
clining industrial regions; 
Whereas it appears necessary, in view of the trends 
in the economic and social situation of the Commu­
nity, that the use of the Fund's resources as a whole 
should be governed by quantitative guidelines tak­
ing the form of indicative ranges of minimum and 
maximum amounts of assistance that each Member 
State may receive during a five-year period and 
involving a certain concentration compared with the 
distribution provided for in Regulation (EEC) 
No 724/75; 
Whereas, to improve the impact of Fund operations 
and the complementary character of Fund opera­
tions and those of national and regional authorities, 
it is appropriate gradually to replace the financing 
of individual investment projects by the financing of 
programmes, which may concern both infrastructure 
and national aid arrangements in relation to indus­
trial, handicraft and service activities; 
Whereas, in order to increase the effectiveness of 
Fund operations and to ensure a stronger link be­
tween the objectives of structural development and 
conversion of the regions and the objectives of other 
Community policies, it is appropriate that Fund 
operations in the form of programmes should take 
the form of either Community programmes taken at 
the initiative of the Community, or national pro­
grammes of Community interest, where the initiative 
lies with the Member States; whereas priority should 
be given to Community programmes; 
Whereas the economic situation and that of employ­
ment in the Community require that the best pos­
sible use of growth potential in less-favoured regions 
be sought; whereas to this end it is desirable to 
No C 360/2 Official Journal of the European Communities 31. 12. 83 
widen the range of activity of the Fund to include 
the financing of operations designed to promote the 
local development potential of regions; 
Whereas an accelerated procedure for payments by 
the Fund would facilitate the successful conduct of 
operations assisted by the Fund; whereas the intro­
duction, under certain conditions, of, a system of 
advance payments complies with this purpose; 
Whereas to enable a better integration of financial 
resources, both Community and national, in areas 
affected by especially serious problems, due particu­
larly to delayed development or industrial or urban 
decline, it is appropriate to promote the implemen­
tation in those areas of integrated development 
operations, closely concerted between the Com­
munity and the national authorities concerned, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The enacting part of Regulation (EEC) No 724/75 is 
hereby replaced by the text annexed to this Regula­
tion. 
Article 2 
This Regulation shall enter into force on 1 January 
1984. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
TITLE I 
COORDINATION OF REGIONAL POLICIES 
Article 1 
1. In order to contribute to the achievement of a 
higher degree of convergence of the economies of 
Member States and to ensure a more balanced dis­
tribution of economic activities within the territory 
of the Community, Member States and the Commis­
sion shall coordinate: 
— Community policies with each other, to the ex­
tent that they affect regional development, tak­
ing account of the aims of each of those poli­
cies, 
— the guidelines and orientations of the Communi­
ty's regional policy and those of the national 
regional policies, 
in accordance with the procedure laid down in Arti­
cle 2. 2. The object of such coordination shall be to 
avoid inconsistencies between the policies referred 
to in paragraph 1. 
This coordination shall also take account of the 
regional impact of Community and national eco­
nomic and sectoral policies. The Commission shall 
ensure that the resources of the European Regional 
Development Fund and of the Community's other 
financial instruments, to the extent to which they 
affect regional development, are used in a consistent 
manner. 
3. For the regions located along internal Com­
munity frontiers, the Member States concerned shall 
endeavour to pursue, — without prejudice to the 
application of Articles 92, 93 and 94 of the Treaty — 
within the framework of their bilateral relations, 
transfrontier coordination of regional development 
by the means and at the levels which they jointly 
consider appropriate. In this context, they shall fos­
ter cooperation between the regional and local 
bodies involved. 
Article 2 
1. The periodic report, the regional development 
programmes, regional impact assessment and the 
European Regional Development Fund shall con­
tribute to the performance of the tasks provided for 
in this Regulation. 
Furthermore, coordination of general regional aid 
schemes shall be an essential feature. 
2. After consulting the Regional Policy Commit­
tee, the Commission shall prepare a periodic report 
on the situation and socio-economic changes in the 
regions of the Community. To this end, Member 
States shall provide the Commission with the rele­
vant information permitting an analysis to be made 
of regions or sub-regions which, as far as possible, 
are comparable. 
The periodic report, prepared at intervals of two 
and a half years, coinciding on every second occa­
sion with the examination of the medium-term eco­
nomic policy programmes, shall be examined by the 
Council after consultation of the European Parlia­
ment and the Economic and Social Committee. 
On the basis of this report the Commission shall, 
where appropriate, present proposals for Com­
munity regional policy guidelines and priorities. 
3. (a) Member States shall communicate to the 
Commission their regional development pro­
grammes, and any amendments thereto, for 
the assisted regions and areas eligible for as­
sistance from the European Regional Devel­
opment Fund. 
31. 12. 83 Official Journal of the European Communities No C 360/3 
Such programmes shall be prepared in ac­
cordance with the common outline drawn up 
by the Regional Policy Committee (') and in 
the light of the Commission recommendation 
of 23 May 1979 (2). 
Where other regions or areas are covered by 
national regional policy measures, the Mem­
ber States shall also communicate to the Com­
mission the corresponding programmes or 
other documents, which should indicate at 
least the priorities, objectives and financial 
and operational means to be applied for the 
development of the region. 
The regional development programmes shall 
be indicative in nature and shall specify the 
development objectives for the region and the 
practical measures to be applied. The regional 
authorities concerned shall be involved as 
much as possible in their preparation. When 
communicating these programmes to the 
Commission, Member States shall, as far as 
possible, transmit to it the information con­
cerning, as regards their entire territory, the 
essential public measures that are likely to 
influence the regional balance, including ex­
penditure in each region under their infra­
structure budgets. 
The regional development programmes and 
other documents transmitted to the Commis­
sion under this paragraph shall be examined, 
in the light of their consistency with the Com­
munity's programmes and objectives, by the 
Commission and the Regional Policy Com­
mittee, which shall make known its views on 
them to the Commission. The latter shall, 
where necessary, address appropriate recom­
mendations to Member States. 
(b) Before 1 July each year, Member States shall 
send to the Commission a report on the im­
plementation of the regional development 
programmes and the documents and pro­
grammes mentioned at (a) above, giving for 
each region and for the preceding year: 
— quantified information on the results of 
measures carried out in the regions in 
terms of investment and jobs, 
— the financial resources deployed, both 
from national and Community sources, 
distinguishing, where applicable, those 
provided by the European Regional 
Development Fund from those provided 
under the Community's other financial 
instruments, 
— where possible, the rate of utilization of 
the major infrastructures completed dur­
ing the year, 
(') OJ No C 49, 24. 3. 1976, p. 2. 
(2) OJ No C 143, 12. 6. 1979, p. 9. — the amounts of assistance made available 
under regional aid schemes, 
— quantified information on the results of 
measures taken to harness the region's in­
digenous potential. 
4. The Commission shall make a regional impact 
assessment of Community economic and sectoral 
policies in which it shall examine the main common 
policies and essential measures which it proposes to 
the Council. It shall inform the latter and the Euro­
pean Parliament of the way in which account is 
taken of this assessment. 
TITLE II 
GENERAL PROVISIONS RELATING TO THE 
EUROPEAN REGIONAL DEVELOPMENT FUND 
Article 3 
The purpose of the European Regional Develop­
ment Fund, hereinafter referred to as 'the Fund', is 
to contribute to the development and structural ad­
justment of regions experiencing delayed develop­
ment and to the conversion of declining industrial 
regions. 
Article 4 
1. The endowment of the Fund shall be determined 
annually in the general budget of the European 
Communities. 
2. For the financial year in question, the budget 
shall show for the Fund: 
(a) the commitment appropriations; 
(b) the payment appropriations. 
Unless any specific provision of this Regulation pro­
vides otherwise, the Financial Regulation applicable 
to the general budget of the Communities shall 
apply to the management of the Fund. 
3. The Fund's resources shall be used on the basis 
of ranges of which the upper and lower limits are 
shown below. 
(in %) 
Member State 
Belgium 
Denmark 
Germany 
Greece 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
United Kingdom Lower limit 
0,85 
0,81 
3,55 
11,05 
10,44 
5,05 
30,17 
0,06 
0,95 
20,23 Upper limit 
1,20 
1,14 
4,81 
15,60 
14,74 
7,13 
42,59 
0,08 
1,34 
28,56 
No C 360/4 Official Journal of the European Communities 31. 12. 83 
4. The upper and lower limits shall apply for a pe­
riod of five years. Within that period, they shall be 
indicative. 
For each Member State, the lower limit of the range 
may be reached only if the assistance applied for 
satisfies the conditions set out in Title III, and in 
particular those relating to Community interest. 
5. Where the portion of Fund resources falling 
within the upper and lower limits shown above is 
concerned, allocation shall be made in the light of 
the priority assigned to Community programmes as 
referred to in Article 6 and in the light of the interest 
to the Community of the measures proposed by 
Member States, while respecting the conditions set 
out in Title III. 
TITLE III 
THE OPERATIONS OF THE FUND 
Article 5 
The Fund shall participate in the financing of: 
— Community programmes, 
— national programmes of Community interest, 
— projects, 
— studies. 
Article 6 
1. A growing share of the Fund's resources shall be 
allocated to programme financing. 
2. Each Member State shall submit an appropriate 
number of grant applications in the form of pro­
grammes so that the Commission may ensure in its 
management of the Fund that the share of assistance 
allocated to programme financing, including Com­
munity programmes, is equal to at least 10 % of the 
available appropriations at the end of the second 
year, 20 % at the end of the third year and 40 % at 
the end of the fourth year. 
3. The. obligation referred to in paragraph 2 shall 
not apply to those Member States whose upper limit 
to the range referred to in Article 4 (3) does not 
exceed 2 %. 
4. The above percentages may be amended by the 
Council, acting on a proposal from the Commis­
sion. 
5. During the period referred to in paragraph 2, 
Community programmes shall be given rising 
priority. Chapter I 
Programme financing 
Section I 
Community programmes 
Article 7 
1. A Community programme means a coordinated 
series of multiannual measures directly serving 
Community objectives and the implementation of 
Community policies. Its purpose shall be to help 
resolve serious problems affecting the socio-eco­
nomic situation in one or more regions. It shall pro­
vide a better link between the Community's objec­
tives for the structural development and conversion 
of regions and the objectives of other Community 
policies. 
2. A Community programme shall normally con­
cern more than one Member State. 
Article 8 
1. Community programmes shall be undertaken at 
the Commission's initiative. 
Acting on a proposal from the latter and after con­
sulting the European Parliament, the Council shall 
adopt by a qualified majority: 
— the specific objectives, 
— the Community criteria for determining the terri­
torial scope, 
— the nature and terms of assistance, 
that constitute the framework of the programme. 
2. The Fund's contribution to the financing of 
Community programmes shall be determined in the 
light of the socio-economic situation in the regions 
and the types of measure involved in the pro­
grammes. 
3. On the basis of the framework set out in para­
graph 1, a programme shall be drawn up in consul­
tation with the authorities of the Member State or 
States concerned. 
It shall be adopted in the manner provided for in 
Articles 14 and 39. 
Article 9 
Community programmes shall include at least the 
following: 
(a) the areas and regions receiving Fund assistance; 
(b) the objectives as defined by the Council and the 
expected results, where possible in quantified 
form; 
31. 12.83 Official Journal of the European Communities No C 360/5 
(c) the nature of the operations involving the 
Fund; 
(d) the financing arrangements; 
(e) the assistance made available by the national 
authorities; 
(f) the amount of Fund assistance and the interven­
tions, where applicable, of other Community in­
struments ; 
(g) the categories of recipients of Fund assistance; 
(h) where applicable, related measures essential for 
implementing the programmes, and, in particu­
lar, measures necessary in the field of training 
and for the protection of the environment; 
(i) the arrangements for publicizing the provision of 
Fund assistance, for the purpose of informing 
potential recipients and business interests of the 
opportunities offered by the programme and of 
the role played by the Community. 
Article 10 
1. Where a Community programme concerns a terri­
tory covered by a regional development programme, 
the latter shall, where appropriate, be adapted. 
2. When a Community programme concerns a ter­
ritory not covered by a regional development pro­
gramme, a regional development programme for the 
area shall be drawn up and presented by the Mem­
ber State concerned to the Commission within three 
months following adoption of the Community pro­
gramme. 
Section II 
National programmes of Community 
interest 
Article 11 
1. A national programme of Community interest 
means a coherent set of multiannual measures serv­
ing national and Community objectives and poli­
cies, as defined either at national or Community lev­
el. In particular, it shall assist the convergence of 
Member States' economies through a reduction of 
regional disparities. It shall translate into opera­
tional commitments the indications contained in re­
gional development programmes. It may concern 
part of a region or one or more regions, in one or 
more Member States. 2. In particular, such measures shall concern, 
jointly or separately, infrastructure investments, aid 
schemes for industry, craft industries and services, 
and operations to exploit the potential for internally 
generated development. 
Article 12 
1. National programmes of Community interest 
shall be undertaken on the initiative of Member 
States. The Member State concerned shall first pre­
pare the programme in asssociation with the autho­
rities or bodies concerned within the limits laid 
down by national legislation, and then present it to 
the Commission. The Commission shall examine 
whether the measures provided for by the pro­
gramme are consistent with all the operations to 
assist the region carried out by the public authorities 
of the Member State concerned and with the objec­
tives and priorities of Community policies. 
2. Programmes shall be assessed on the basis of 
their contribution to: 
(a) the economic development of the region, in par­
ticular as regards: 
— the impact on employment, 
— the improvement of productivity, 
— the diversification of economic structures, 
— the accelerated provision of the necessary in­
frastructure facilities, 
— the careful use of natural resources; 
(b) the attainment of Community objectives, in par­
ticular as regards: 
— the consistency of the programme's objec­
tives and measures with Community objec­
tives and policies, 
— the integrated use of any other Community 
financial instrument for structural purposes. 
Other Community assistance shall thus be 
coordinated with Fund assistance in such a 
way as to promote convergent measures in a 
given region in order to guarantee, in particu­
lar, consistency between regional policy and 
other Community policies. 
3. Regions and areas which may benefit from 
Fund assistance through national programmes of 
Community interest shall be limited to those assisted 
areas designated by Member States for the purposes 
of their regional aid schemes. In the selection of pro­
grammes, priority shall be given to investments in 
national priority areas, taking account of the princi­
ples for the coordination at Community level of 
regional aids. 
No C 360/6 Official Journal of the European Communities 31. 12. 83 
4. National programmes of Community interest 
shall form part of the regional development pro­
grammes referred to in Article 2 (3). 
5. If the Commission considers that the draft pro­
gramme submitted merits assistance from the Fund, 
it shall so inform the Member State concerned, ad­
ding its observations. The Commission and the 
Member State shall by common consent finalize the 
programme. The programme shall be adopted as 
laid down in Articles 14 and 39. 
6. The Fund's contribution to the financing of na­
tional programmes of Community interest shall be 
determined in the light of the socio-economic situa­
tion of the regions and the types of measure in­
volved. It may amount to 65 % of the total public 
expenditure taken into account in the programmes. 
Article 13 
1. National programmes of Community interest 
shall include the following: 
(a) an indication of the regions or areas concerned; 
(b) the objectives and the results expected, where 
possible in quantified form; 
(c) the nature of the measures; 
(d) the operations and assistance planned and their 
time scale; 
(e) a forward plan for financing the programme, 
making a distinction between the various sources 
of national finance and highlighting the fact that 
Fund assistance takes the form of an overall sup­
plementary financial contribution in favour of 
the regions or areas concerned; 
(f) an indication of the authorities or agencies re­
sponsible for implementing the various parts of 
the programme; 
(g) where applicable, related measures essential for 
the implementation of the programme and, in 
particular, measures necessary in the field of 
training and for the protection of the environ­
ment which are undertaken in the Member State 
and receive no financial assistance from the 
Community; 
(h) the arrangements for publicizing the provisions 
of Fund assistance, for the purpose of informing 
potential recipients and business interests of the 
opportunities offered by the programme and of 
the role played by the Community; 
(i) — in the case of infrastructure investment pro­
grammes: a description of the most signifi­
cant projects, — in the case of the co-financing of aid 
schemes: the priorities and criteria for select­
ing investment projects, 
— in the case of operations to exploit the poten­
tial for internally generated development: a 
description of the operations as laid down in 
Article 16. 
2. For national programmes of Community inter­
est relating to: 
— infrastructure investment projects, the provisions 
of Article 19 shall apply, 
— investment projects in industry, craft industries 
and services, the provisions of Article 20 (1) and 
(2) shall apply. 
Section III 
Common provisions 
Article 14 
1. A programme which is the subject of an agree­
ment between the Commission and the Member 
State or States concerned and has been adopted by 
the Commission after consultation with the Fund 
Committee in accordance with the procedure laid 
down in Article 39 shall constitute a 'programme 
contract'. 
2. Decisions on the grant of Fund assistance for 
programme financing shall be published in the 
Official Journal of the European Communities. 
Article 15 
1. The Commission shall supply national and re­
gional administrations which so wish with technical 
assistance to help them in the preparation and im­
plementation of the programmes. 
2. (a) Each year before 1 June the Member State 
concerned, or the bodies responsible for im­
plementing the programmes, shall submit to 
the Commission a progress report for each 
programme concerning the preceding calen­
dar year, with reference to the information 
required under Articles 9 and 13. This report 
shall be such as to enable the Commission to 
satisfy itself as to the implementation of the 
programmes, to take note of their effects, 
where possible in quantified form, and, where 
applicable, to establish that the operations are 
being carried out in a consistent manner. The 
report shall be communicated to the Fund 
Committee. 
31. 12. 83 Official Journal of the European Communities No C 360/7 
(b) On this basis, the Commission shall report to 
the Council and the European Parliament as 
laid down in Article 45. 
(c) In the event of a programme in the course of 
implementation being substantially amended, 
the procedure provided for in Article 39 shall 
apply. 
(d) Upon completion of each programme, the 
Commission shall inform the Fund Commit­
tee of the results achieved. 
Chapter II 
Measures to exploit the potential for internally 
generated development of the regions 
Article 16 
1. For the purposes of greater exploitation of the 
potential for internally generated development of 
regions, the Fund may contribute, within the frame­
work of the programmes, to the financing of meas­
ures for assisting undertakings, especially small and 
medium-sized undertakings, in industry, craft indus­
tries and the tourist industry in order to: 
— provide them with facilities enabling them to ex­
pand their activities and to obtain access to new 
technology, 
— facilitate their access to the capital market. 
These measures shall involve in particular: 
(a) aid for studies to help identify the opportunities 
for internally generated development in the re­
gions assisted by the Fund; 
(b) aid for the establishment and operation of local 
and regional agencies for applied research to 
further internally generated regional develop­
ment; 
and in the case of small and medium-sized under­
takings only: 
(c) financing the transfer of technology through 
operating aids for agencies compiling and dis­
seminating information on product and techno­
logical innovations and for feasibility studies 
and projects permitting the application of these 
innovations in undertakings; 
(d) aid for sectoral studies to improve knowledge of 
opportunities for access to national Community 
and external markets and for the dissemination 
of the results of such studies; (e) aid to increase the efficiency of undertakings by 
making it easier for them to obtain management 
or organization advice; this aid shall cover the 
expenditure of undertakings on services pro­
vided by consultancy firms or agencies; 
(f) start-up aids to facilitate the establishment of ser­
vices common to several undertakings and cov­
ering part of the operating expenditure of the 
common services; 
(g) aid to improve exploitation of the regional po­
tential for tourism and covering part of the oper­
ating expenses of agencies for the promotion and 
coordinated management of accommodation; 
(h) measures to promote the establishment and ex­
pansion of these undertakings by providing them 
with easier access to the capital market. 
2. Within the limits laid down by national legisla­
tion, the Fund may also make a contribution to­
wards expenditure by national, regional or local au­
thorities on the planning, technical preparation and 
implementation of operations in respect of which a 
Member State has applied for aid from the Fund. 
Article 17 
1. The Fund contribution to the measures provided 
for in Article 16 may not exceed 65 % of the public 
financing for each measure or series of measures 
covered by one and the same programme contract. 
The contribution for each study or enquiry may not 
exceed 70000 ECU. 
2. The Fund contribution to the financing of the 
measures referred to in Article 16 may not exceed 
15 % of the appropriations allocated to each Mem­
ber State over a given three-year period. 
This limit shall not apply to those Member States 
whose upper limit of the range referred to in Arti­
cle 4 (3) does not exceed 2 %. 
3. The Fund contribution shall be decided by the 
Commission in accordance with the procedure refer­
red to in Article 39. 
4. In the case of the same recipient and the same 
measure, the aids referred to in Article 16 may not 
last longer than three years. 
No C 360/8 Official Journal of the European Communities 31. 12. 83 
Chapter III 
Project financing 
Article 18 
1. The Fund may contribute to the financing of 
investment projects costing more than 75000 ECU 
each, in industry, craft industries, services or in 
infrastructure, under the conditions laid down in 
this Chapter. 
2. Investments may benefit from the Fund's assi­
stance only if they fall within the framework of a 
regional development programme the implementa­
tion of which is such as to contribute to correction 
of the main regional imbalances within the Commu­
nity which may prejudice the proper functioning of 
the common market and the convergence of the 
Member States' economies, with a view, in particu­
lar, to the attainment of economic and monetary 
union. 
3. Regions and areas which may benefit from the 
Fund by way of projects shall be limited to those 
aided areas established by Member States in apply­
ing their systems of regional aids. When projects are 
selected, priority shall be given to investments in 
national priority areas, taking account of the princi­
ples for the coordination at Community level of 
regional aids. 
Article 19 
1. Infrastructure investment projects which may be 
assisted by the Fund shall be those the cost of which 
is borne wholly or partly by public authorities or by 
any other agency responsible, in the same way as a 
public authority, for the creation of infrastructures. 
Within the limits defined in the Annex, infrastruc­
ture projects to be financed shall contribute to the 
development of the region or area in which they are 
situated. 
2. Exceptionally, and after consultation of the 
Fund Committee in accordance with the procedure 
provided for in Article 39, aid from the Fund may 
be granted for all or part of infrastructure invest­
ments which, although not located in an eligible 
region or area as defined in Article 18 (3), are situ­
ated in an area adjacent to such a region or area and 
are an essential complement to its infrastructure fa­
cilities. The Fund's aid shall cover only that part of 
the investment required to develop the region or 
area in question. Article 20 
1. Investment projects in industry, craft industries 
or services which may be assisted by the Fund shall 
relate to economically sound activities which are 
intended to create or preserve permanent jobs. 
Where the intention is to preserve jobs, the invest­
ments shall fall within the framework of a conver­
sion or restructuring plan to ensure that the under­
taking concerned is competitive. Preference shall, 
however, be given to operations which both main­
tain existing jobs and create new jobs. 
2. Official aids to be taken into consideration in 
determining Fund assistance shall be grants, inter­
est-rate subsidies or their equivalent where loans at 
reduced rates of interest are concerned, irrespective 
of whether such aid is linked to the amount of 
investment or to the number of jobs created. 
Such aids may include aid to an investment project 
involving the transfer of plant and workers. The aid 
equivalent shall be calculated in accordance with an 
Implementing Regulation adopted pursuant to Arti­
cle 39. Aid granted in the form of rent reductions or 
exemptions in respect of buildings, including plant, 
may also be taken into account provided the same 
calculation can be carried out. 
3. Service activities qualifying for assistance shall 
be those concerned with tourism and those having a 
choice of location. Such activities should have a 
direct impact on the development of the region and 
on the level of employment. Tourist activities must 
contribute to the development of tourism in the 
region or area in question. 
4. The contribution from the Fund may, pursuant 
to a prior decision of the Member State concerned 
communicated at the same time as the request for 
this contribution, either supplement aid granted to 
the relevant investment by public authorities or re­
main credited to those authorities and considered as 
a partial repayment of such aid. 
Article 21 
1. In the case of investment projects in industry, 
craft industries and services, the amount of the 
Fund's contribution may not exceed 50 % of the aid 
granted to each project by the public authorities 
under a regional aid scheme. 
2. In respect of infrastructure investment projects, 
the amount of the Fund's contribution shall be 40 % 
31. 12. 83 Official Journal of the European Communities No C 360/9 
of the total expenditure charged to a public author­
ity or equivalent body where the project costs less 
than 10 million ECU, and between 20 and 40% in 
the case of projects costing 10 million ECU or 
more. 
However, the maximum contribution may rise to 
50 % in the case of projects of particular importance 
to the development of the region in which they are 
located. 
Article 22 
1. The provision of Fund assistance shall be de­
cided upon by the Commission in the light of the 
relative severity of the economic imbalance of the 
region in which the investment project is carried out 
and of the direct or indirect impact of the project on 
employment. The Commission shall examine, in 
particular, the consistency of the project with all the 
measures taken by the Member State concerned to 
assist that region, as described in the information 
supplied by Member States pursuant to Article 2, 
with particular reference to: 
(a) the project's contribution to the economic devel­
opment of the region; 
(b) its consistency with the Community's pro­
grammes or objectives; 
(c) the situation in the economic sector concerned 
and the profitability of the investment made; 
(d) whether the project is located in a frontier area, 
i.e. in a region adjacent to one or more other 
Member States; 
(e) delays and imbalances due to the fact that the 
area which the investment is intended to benefit 
is located on an island, or is a peripheral area; 
(f) the effects of the investment on the region's natu­
ral resources; 
(g) other assistance granted by Community institu­
tions or by the European Investment Bank either 
in respect of the same project or for other meas­
ures in the same region; other Community assist­
ance shall therefore be coordinated with Fund 
assistance in such a way as to promote conver­
gent measures in a given region in order to 
guarantee, in particular, consistency between 
regional policy and other Community policies. 
2. In the case of investment projects costing 
10 million ECU or more, the Commission shall de­
cide on the Fund's contribution in accordance with 
the procedure provided for in Article 39. 
In the case of investment projects costing less than 
10 million ECU, the Commission shall decide on the Fund's contribution and shall inform the Fund 
Committee of its decisions. 
Article 23 
1. Applications for Fund assistance shall be sub­
mitted to the Commission by Member States, to­
gether with such information as will enable the 
Commission to assess the merit of the investment 
projects in the light of Articles 2 and 22. 
2. In the case of investment projects costing less 
than 10 million ECU, Member States shall present 
grouped applications at the beginning of each quart­
er. These applications shall be submitted on a re­
gion-by-region basis, a distinction being made be­
tween investment projects in industry, craft indus­
tries or services and infrastructure investment pro­
jects. 
The applications shall state: 
(a) in respect of investment projects in industry, 
craft industries or services: 
the names of the undertakings concerned, their sec­
tor of activity, and the location of each investment 
and its object (setting up, extension, conversion or 
restructuring of an establishment), the total amount 
of investment involved and the part taken into ac­
count in the application for aid, the predicted over­
all effect on employment (creation or maintenance 
of jobs), proposed time scale for implementation, 
total aids granted in connection with which Fund 
assistance is applied for, and the planned schedule 
of payments; 
(b) in respect of infrastructure investment projects: 
the location of each project and its object, its 
contribution to the development of the region, 
predicted total expenditure and expenditure to 
be borne by public authorities and also expendi­
ture taken into account in the application for 
aid, the planned schedule of payments, the 
names of the responsible authorities, the total 
amount of Fund assistance applied for, and the 
estimated time scale for implementation. 
3. In the case of investment projects costing 10 
million ECU or more, applications shall be submit­
ted separately and shall include the following infor­
mation: 
(a) in respect of projects in industry, craft industries 
or services: 
the name of the undertaking, the sector of activi­
ty, the object of the project and its location, the 
effect on employment, the proposed time scale 
for implementation, the details of any grants, 
interest-rate subsidies or loans at reduced rates 
of interest, the planned schedule for payment of 
No C 360/10 Official Journal of the European Communities 31.12.83 
such aids, any other form of aid granted or plan­
ned by the public authorities and the financing 
plan, indicating in particular any other Commu­
nity aids applied for or provided for, the portion 
of these aids taken into consideration in the ap­
plication for assistance, the total investment and 
the portion taken into consideration in the appli­
cation for assistance, the time scale provided for 
the payment of aids and in addition a profitabil­
ity analysis. 
The Member State shall specify in its application 
the total amount of assistance which, in its opin­
ion, should be granted to the undertaking and the 
contribution it is seeking from the Community. 
(b) in respect of infrastructure projects: 
the responsible authority, the object of the project, 
its location, its contribution to the development of 
the region, its cost, the financing plan, the expendi­
ture to be borne by public authorities and also ex­
penditure taken into account in the application for 
aid, the time-scale for implementation, the amount 
of Fund assistance applied for and other Commun­
ity aid applied for or provided for, the planned 
schedule of payments and a cost-benefit analysis. 
4. Provision of Fund assistance shall be decided 
upon by the Commission: 
(a) on an aggregated basis for application covered 
by paragraph 2; 
(b) on a case-by-case basis for applications covered 
by paragraph 3. 
5. Member States shall give priority to the submis­
sion of grant applications in respect of projects cost­
ing 10 million ECU or more. 
Article 24 
1. The investors concerned shall be informed, in 
agreement with the Member States concerned, that 
part of the aid granted to them has been provided by 
the Community. 
2. In the case of infrastructure projects, Member 
States, in agreement with the Commission, shall take 
all necessary steps to ensure that the assistance from 
the Fund is given suitable publicity. 
3. The list of projects that have received Fund 
assistance shall be published every six months in the 
Official Journal of the European Communities. 
For each project the list shall specify its object, its 
precise location, the name of the investor and the 
amount of the assistance granted. 
Chapter IV 
Studies 
Article 25 
1. The Fund shall contribute to the financing of 
studies closely related to its operations. The Commission shall decide on the Fund's contri­
bution and shall inform the Fund Committee of the 
studies carried out and the results obtained. 
2. The Fund may contribute to prior and subse­
quent assessments of the economic efficiency of, 
and Community interest in, Fund programmes or 
projects with the assistance of experts. 
TITLE IV 
COMMITMENTS, PAYMENTS AND CHECKS 
Chapter I 
Programmes 
Article 26 
1. The budget appropriations for the financing of a 
programme shall be committed, according to budge­
tary availability, in tranches covering a period of 
one year. The first tranche shall be committed as 
soon as the grant decision is taken by the Commis­
sion. Subsequent tranches shall be committed ac­
cording to progress on the programme. 
2. Expenditure which the authorities or other 
organizations concerned have incurred or expect to 
incur from 1 January of the year in which the pro­
gramme is submitted to the Commission shall be eli­
gible for Fund assistance. 
Article 27 
1. Each payment claim shall be accompanied by a 
certificate issued by the Member State attesting to 
the execution of the operations and the existence of 
detailed supporting documents, and shall contain 
the following information: 
— object of the operations covered by the payment 
claim, 
— amount and type of expenditure incurred in res­
pect of the individual operations during the 
period covered by the claim, 
— confirmation that the operations described in the 
claim were started as provided for in the pro­
gramme. 
2. The Member State shall keep available to the 
Commission for a period of three years following 
the last payment made in connection with the pro­
gramme all the documents in support of expenditure 
incurred under the programme or certified copies 
thereof. The Commission may make a detailed ex­
amination of each individual project implemented 
under the programme. 
31. 12.83 Official Journal of the European Communities No C 360/11 
3. The Commission shall make the payments: 
— to the public authorities commissioning the work 
where the programme contract concerns the 
financing of an infrastructure investment 
programme, 
— to an agency designated for this purpose by the 
Member State concerned where the programme 
contract concerns the financing of a State aid 
scheme in industry, craft industries or services. 
Chapter II 
Measures to exploit the potential for internally 
generated development of the regions 
Article 28 
1. Payment claims shall be submitted to the Com­
mission by Member States, together with a certifi­
cate issued by the latter attesting to the execution of 
the operations and the existence of detailed support­
ing documents; they shall contain the following in­
formation : 
— object of the operations covered by the payment 
claim, 
— amount and type of expenditure incurred in res­
pect of the individual operations during the 
period covered by the claim, 
— confirmation that the operations described in the 
payment application have been commenced in 
accordance with the programme. 
2. The Commission shall make the payments to the 
public authorities, agencies or businesses con­
cerned. 
3. The aids provided for in Article 16 (1) shall not 
reduce the undertakings' share of total expenditure 
to less than 20 %. 
4. The Member State in question shall keep availa­
ble to the Commission for a period of three years 
following the final payment made in connection 
with the programme all the documents in support of 
expenditure incurred under the programme or certif­
ied copies thereof. The Commission shall have the 
right to make a detailed examination of each indivi­
dual project implemented under the programme. 
Chapter III 
Investment projects 
Article 29 
1. The amount of Fund assistance, calculated, 
where applicable, on the basis of the aid equivalent 
according to an Implementing Regulation adopted 
pursuant to Article 39, shall be paid upon presenta­tion by the Member State concerned of quarterly 
statements certifying expenditure and the existence 
of detailed supporting documents and containing 
the following information: 
(a) for interim payment claims: 
— the name of the undertaking concerned or, in 
the case of infrastructure projects, the name 
of the responsible authority, 
— the location of the project, 
— total public expenditure incurred after the 
date referred to in Article 30 and that part of 
the amount in respect of which payment is 
applied for, 
— the amount of the payment requested from 
the Fund, 
— a statement projecting future payment 
claims; 
(b) for final payment claims, all the information re­
ferred to at (a), with the exception of the last 
indent, together with: 
— the amount actually invested and confirma­
tion that the project carried out corresponds 
to the project originally planned, 
— the date of completion of the project, 
— the number of jobs created or maintained, 
where the project is in industry, the craft 
industries or services, 
— the amounts of public expenditure, 
— an assessment of the economic effectiveness 
of the measures undertaken. 
2. Where expenditure provided for in the decisions 
referred to in Article 23 consists of aids granted in 
the form of interest-rate subsidies or loans at re­
duced rates of interest, the amount of the Fund's 
contribution in respect of such aids that is still due 
when the projects are completed shall be paid in a 
single transaction upon presentation of the certifi­
cate attesting to the completion of the projects. 
3. Accelerated payments under a decision to grant 
aid from the Fund may be granted by the Commis­
sion to a Member State on the latter's request. They 
may not exceed 75 % of the total amount of aid from 
the Fund. Such accelerated payments shall be sub­
ject to the condition that at least 30 % of the pay­
ments constituting the basis for aid from the Fund 
have been made. 
4. Member States shall designate the authorities or 
agencies authorized to issue the certificates referred 
to in this Article. In the case of infrastructure invest­
ment projects, the Commission shall make the pay­
ments to the bodies commissioning the projects. 
In the case of investment projects in industry or 
the service sector, payments shall be made to the 
No C 360/12 Official Journal of the European Communities 31. 12. 83 
Member State or to a body designated by it for 
this purpose. 
Article 30 
The Commission shall take into consideration for 
Fund assistance payments made by the Member 
States as from the 12th month before the date on 
which it receives the application for assistance, in 
respect of investments not completed by the latter 
date. This period shall be increased to 24 months for 
payments in respect of investment projects in Green­
land. 
Chapter IV 
Advances 
Article 31 
1. In the case of measures referred to in Title III, 
Chapters I and II, advances of up to 80 % of the 
Fund aid committed may be granted by the Fund 
according to the state of progress of the operations. 
2. At the Member State's request, the Commission 
may, as from the scheduled starting date for the 
operations, make an initial advance of aid from the 
first annual tranche. 
3. Applications for advances in respect of subse­
quent annual tranches may be. submitted provided 
that the Member State certifies that at least 30 % of 
the advance received from the preceding tranche has 
been disbursed. 
4. The balance of each tranche shall be paid at the 
request of the Member State upon presentation of a 
certified statement that the operations covered by 
the tranche in question may be deemed to have been 
completed, and of a statement of public expenditure 
incurred. 
Chapter V 
Monitoring operations 
Article 32 
1. Where a measure granted assistance from the 
Fund has not been carried out as planned, or where 
the conditions imposed by the provisions which gov­
ern the measure are not fulfilled, the Fund assis­
tance in question may be reduced or cancelled if the 
Commission, after consulting the Fund Committee, 
so decides. where national aid used as the basis for calculating 
the amount of Fund assistance has been repaid to 
the Member State concerned by the investor. 
2. Member States shall make available to the Com­
mission all the information necessary to ensure ef­
fective operation of the Fund and shall take all steps 
to facilitate such monitoring operations as the Com­
mission may deem useful for Fund management 
purposes, including on-site inspections. They shall 
notify the Commission of the cases referred to in the 
first subparagraph of paragraph 1. 
3. Without prejudice to checks carried out by 
Member States in accordance with national laws, 
regulations or administrative provisions and without 
prejudice to Article 206 of the Treaty or to any 
inspection arranged on the basis of Article 209 (c) of 
the Treaty, on-site inspections or enquiries in respect 
of operations financed by the Fund shall be carried 
out by the competent authorities of the Member 
State and by officials of the Commission or any 
other persons empowered by the Commission for 
this purpose. The Commission shall determine the 
time limits for the performance of the checks and 
shall inform the Member State concerned of them in 
advance in order to obtain all the assitance neces­
sary. 
4. The purpose of such on-site inspections and en­
quiries in respect of operations financed by the 
Fund shall be to verify: 
(a) the conformity of administrative practices with 
Community rules; 
(b) the existence of supporting documents and their 
correspondence to the operations financed by 
the Fund; 
(c) the conditions under which operations financed 
by the Fund are executed and monitored; 
(d) the conformity of the projects carried out with 
the operations financed by the Fund; 
(e) the economic effectiveness of the operations fi­
nanced by the Fund and their coherence with the 
objectives and priorities of Community policies. 
5. The Commission may suspend payment of assis­
tance in respect of a particular operation if a check 
reveals irregularities or a substantial change in the 
object or conditions of the project for which the 
Commission's approval has not been sought. 
6. By way of derogation from Article 6 (2) of the 
Financial Regulation of 21 December 1977 appli­
cable to the general budget of the European Com­
munities (!), if an operation granted assistance from 
the Fund has not been completed or has been car­
ried out in such a manner that payment of only part 
Member States shall repay to the Commission the 
amount of Fund assistance received in all cases (i) OJ No L 356, 31. 12. 1977, p. 1. 
31.12.83 Official Journal of the European Communities No C 360/13 
of the Fund assistance granted in respect of that pro­
ject is justified, the remaining portion of Fund assis­
tance shall be allocated to another operation in one 
of the eligible regions of the same Member State 
under the conditions laid down in this Regulation. 
Where an operation has not been the object of any 
payment for four years and where no explanation 
for the delay has been received from the Member 
State concerned within a period fixed by the Com­
mission, that operation shall be considered not be 
have been executed and that part of the Fund's assis­
tance shell be reallocated. 
Any sums paid shall be repaid to the Community by 
the Member State concerned or, where applicable, 
by the body to which the Fund contribution has 
been paid, within 12 months of the date on which 
the relevant decision was notified, unless the provi­
sions of the first subparagraph apply. 
Article 33 
Within three years of completion of the measures 
financed by the Fund, Member States shall inform 
the Commission of the following: 
— in the case of investment projects in industry, 
craft industries or the services sector, the number 
of jobs created, 
— in the case of infrastructure investment projects 
costing more than 10 million ECU, the rate of 
utilization of the infrastructure in question, 
where such information is available. 
TITLE V 
FINAL PROVISIONS 
Chapter I 
Integrated development operations 
Article 34 
1. In the granting of Fund assistance, investment 
projects and measures referred to in Title III which 
form part of an integrated development operation 
may be accorded priority treatment. 
2. An integrated development operation shall com­
prise a coherent set of public and private measures 
and investment projects which have the following 
characteristics: 
(a) they relate to a limited geographical area af­
fected by particularly serious problems involv­
ing, in particular, delayed development or indus­
trial or urban decline and which are likely to 
affect the development of the region in ques­
tion; (b) the Community, through the joint use of various 
structural financial instruments, and the national 
and local authorities in Member States con­
tribute in a closely coordinated manner to their 
implementation. 
3. The Member State concerned shall ensure con­
certed use of Community and national financial re­
sources and close coordination between the public 
authorities involved in the execution of the inte­
grated operation. 
4. The Commission shall likewise ensure concerted 
use of the Community's structural financial re­
sources. 
5. The level of Fund assistance to investment pro­
jects and measures forming part of the operations 
referred to in this Article may be increased by 10 
points in accordance with the procedure laid down 
in Article 39. 
Chapter II 
Other provisions 
Article 35 
All or part of the Fund assistance granted may be in 
the form of an interest-rate subsidy on Community 
loans. 
In order to favour aid to investment by small and 
medium-sized undertakings in industry, the craft in­
dustries and the services sector, the Member States 
and the Commission shall allocate at least 5 % of the 
Fund's total endowment for assistance in the form 
of interest-rate subsidies on Community loans for 
small and medium-sized undertakings. 
Article 36 
The Member States, in submitting their applications, 
and the Commission, in administering the Fund, 
shall, in so far as is possible, ensure that at least 40 % 
of the Fund's total endowment is allocated to invest­
ments in industry, the craft industries and the ser­
vices sector during a given three-year period. 
Article 37 
An investment project may benefit from Fund aid 
under only one of Articles 8, 12, 16 or 18. 
No C 360/14 Official Journal of the European Communities 31. 12. 83 
Article 38 Article 43 
1. A European Regional Development Fund Com­
mittee, hereinafter referred to as 'the Committee', is 
hereby established. It shall be composed of repre­
sentatives of the Member States and chaired by a 
representative of the Commission. 
2. Within the Committee, the votes of the Member 
States shall be weighted in accordance with Arti­
cle 148 (2) of the Treaty. The chairman shall not 
vote. 
Article 39 
1. Where the procedure laid down in this Article is 
to be followed, the chairman shall bring the matter 
before the Committee, either on his own initiative or 
at the request of a representative of a Member 
State. 
2. The representative of the Commission shall sub­
mit drafts of decisions to be taken. The Committee 
shall deliver its opinion on such drafts within a time 
limit that the chairman may determine in the light of 
the urgency of the matters under consideration. 
Opinions of the Committee shall be adopted by a 
majority of 45 votes. 
3. The Commission shall take decisions which 
shall apply immediately. However, decisions not in 
accordance with the opinion of the Committee shall 
forthwith be communicated by the Commission to 
the Council. In that event, the Commission shall 
defer application of the decisions taken by it for not 
more than two months from the date of such com­
munication. The Council, acting by a qualified ma­
jority, may take a different decision within two 
months. 
Article 40 
The Committee may consider any other matter relat­
ing to the Fund's operation referred to it by its chair­
man, either on his own initiative or at the request of 
a representative of a Member State. 
Article 41 
The necessary measures for implementing this Regu­
lation shall be adopted in accordance with the pro­
cedure laid down in Article 39. 
Article 42 
1. Member States shall take the necessary steps to 
ensure that the amounts received from the Fund are 
clearly identified, in a form consonant with the par­
ticular characteristics of the national budget sys­
tems. 
2. At the request of the Commission, Member 
States shall provide it with information on the allo­
cation of the amounts received from the Fund. Assistance from the Fund shall not distort the condi­
tions of competition in a manner incompatible with 
the principles set out in the relevant provisions of 
the Treaty and elaborated upon in the principles for 
the coordination of the general regional aid 
schemes. In particular, the provisions of this Regula­
tion shall not prejudice the application of Arti­
cles 92, 93 and 94 of the Treaty, particularly as 
regards establishing and modifying the areas aided 
by national regional aid schemes. 
Article 44 
The Commission shall ensure that, as far as statistics 
allow, account is taken of the situation of and out­
look for the employment of women and the different 
age groups: 
— in the preparation of the coordination instru­
ments referred to in Article 2, and in particular 
in the regional development programmes and the 
reports on their implementation, 
— in the applications for assistance for investment 
programmes and projects, 
— in the Fund assistance decisions concerning 
those applications, 
— in the preparation of the reports on the imple­
mentation of this Regulation referred to in Arti­
cle 45. 
Article 45 
1. Before 1 October each year, the Commission 
shall present to the Council, to the European Parlia­
ment and to the Economic and Social Committee a 
report on the implementation of this Regulation 
during the preceding year. 
2. The report shall describe the financial manage­
ment of the Fund and present the Commission's 
conclusions based on the monitoring operations car­
ried out in respect of the Fund's activities. 
Article 46 
On a proposal from the Commission, the Council 
shall review this Regulation within five years from 
its entry into force. 
Article 47 
This Regulation shall enter into force on the day fol­
lowing its publication in the Official Journal of the 
European Communities. 
31. 12. 83 Official Journal of the European Communities No C 360/15 
ANNEX 
LIST OF CATEGORIES OF INFRASTRUCTURE WHICH THE FUND MAY NOT ASSIST 
The Fund shall participate in the financing of infrastructure investments, with the exception of 
those falling into the following categories: 
1. Establishments of general education, except in regions with a severe shortage of such es­
tablishments, and connected sports and cultural facilities. This definition does not include es­
tablishments of specialized technical education or vocational training, even at university 
level. 
2. Hospitals and related facilities, except in regions with a severe shortage of such provisions. 
3. Old people's homes and other residential care facilities. 
4. Fire stations, day nurseries, child-minding facilities and similar social welfare facilities not 
directly linked to industrial estate facilities or to the creation or maintenance of employ­
ment. 
5. Public administration buildings. 
6. Coastal protection and soil conservation infrastructures with a predominantly agricultural 
bias in so far as the projects or infrastructures are financed under the Guidance Section of the 
European Agricultural Guidance and Guarantee Fund. 
7. Reafforestation and prevention of forest fires. 
8. That proportion of public expenditure incurred in land acquisition exceeding 15 % of the cost 
of the infrastructure in question.