3. 10. 88 Official Journal of the European Communities No C 256/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) laying down provisions for implementing Council 
Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural 
Funds between themselves and with the operations of the European Investment Bank and the other 
existing financial instruments 
COM(88) 500/2 final — SYN 151 
(Submitted by the Commission on 30 August 1988) 
(88/C 256/01) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 130E and 
153 thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas the Council has adopted Regulation (EEC) 
No 2052/88 of 24 June 1988 on the tasks of the Structural 
Funds and their effectiveness and on the coordination of 
their activities between themselves and with the operations 
of the European Investment Bank (EIB) and the other 
existing financial investments (*); 
Whereas Article 3(5) of Regulation (EEC) No 2052/88 
provides that the Council, acting on the basis of Article 
130E of the Treaty, shall adopt the provisions necessary for 
ensuring coordination between the different Funds, on the 
one hand, and between them and the EIB and the other 
existing financial instruments, on the other; 
Whereas it is necessary to strengthen the coordination 
between the Structural Funds and between these Funds, the 
EIB and the Community's other financial instruments, in 
order to enhance the effectiveness of their contributions to 
the attainment of the objectives set out in Article 1 of 
(!) OJ NoL 185, 15.7. 1988, p. 9. Regulation (EEC) No 2052/88; whereas the Commission 
has an important role to play in this respect; 
Whereas to ensure effective coordination between grant 
and loan instruments, the Commission should, where 
appropriate, associate the EIB with the preparation of its 
decisions; 
Whereas Articles 8 to 11 of the abovementioned Regulation 
provide for provisions relating to their implementation to 
be laid down in the implementing decisions referred to in 
Article 130E of the Treaty; 
Whereas it is necessary to determine the criteria which the 
Commission should use to select those rural areas outside 
the regions designated for assistance from the Funds under 
Objective 1 which may receive assistance under Objective 
5(b) as defined in Article 1 of Regulation (EEC) No 2052/ 
88; 
Whereas it is necessary to specify the scope, duration and 
content of the plans to be submitted by the Member States 
and the time limits for the submission of these plans; 
Whereas it is necessary to give guidelines on the content 
and duration of the Community support frameworks to be 
established by the Commission and the time limit for their 
establishment; 
Whereas the Commission should be able to adapt 
Community support frameworks to take account of 
measures not provided for in the plans submitted by the 
Member States, including measures resulting from new 
Community initiatives; 
Whereas assistance from the Funds envisaged in the 
Community support frameworks should be provided 
mainly in the form of part-financing of operational 
programmes; 
No C 256/2 Official Journal of the European Communities 3. 10. 88 
Whereas it is necessary to specify the conditions for the 
implementation of operational programmes under the 
integrated approach; 
Whereas it is necessary to specify the general conditions 
governing the processing of applications for financial 
assistance from the Structural Funds; 
Whereas financial assistance from the Structural Funds 
under Objectives 1 to 4 and 5(b) should normally be 
provided only for measures indicated in the Community 
support frameworks and for expenditure incurred after 
presentation of an application for assistance from the 
Structural Funds; 
Whereas it is necessary to define the conditions under 
which the Structural Funds may provide global grants and 
part-finance major projects; 
Whereas provision should be made for the financing of 
studies and technical assistance linked to the joint or 
coordinated use of the Structural Funds, the EIB and the 
other financial instruments; 
Whereas to facilitate their own planning of programmes, 
beneficiaries should have indications as to the rates of 
assistance which will be provided by the Funds as a 
proportion of eligible public expenditure; 
Whereas at the same time the Commission must dif­
ferentiate rates in the light of the criteria laid down in 
Article 13(1) of Regulation (EEC) No 2052/88, including in 
particular the capacity of the other public bodies concerned 
to contribute to the financing of the measures concerned; 
Whereas to promote efficient and coordinated manage­
ment of the Funds' financial resources it is necessary to lay 
down common rules and procedures on commitments, 
payments and controls; 
Whereas in the interests of the wider use of the ECU in 
financial transactions in the Community and more 
specifically in the implementation of the Community 
budget, it is important that the Community's financial 
entitlements and obligations with respect to the Structural 
Funds should also be expressed in ECU; 
Whereas it is necessary to specify the arrangements for the 
monitoring and assessment of Community structural 
action in order to strengthen the effectiveness of assistance 
methods in achieving the objectives and to assess the 
impact of assistance; 
Whereas it is necessary to determine the arrangements for 
the working of the committees which will assist the 
Commission in the implementation of Regulation (EEC) 
No 2052/88; Whereas there is a need to specify the content of the annual 
report to be submitted in accordance with Article 16 of the 
abovementioned Regulation; 
Whereas provision should be made to give adequate 
publicity to Community assistance provided towards 
specific schemes; 
Whereas it is necessary to determine more specifically the 
transitional arrangements for assistance from the Funds 
which was approved or applied for before the entry into 
force of the implementing decisions referred to in Article 
130E of the Treaty; whereas it may also prove necessary, 
with a view to ensuring continuity in the operations of the 
Funds, to provide for approval of certain measures before 
the Commission has decided the relevant Community 
support frameworks, 
HAS ADOPTED THIS REGULATION: 
TITLE I 
COORDINATION 
Article 1 
General provisions 
Pursuant to Regulation (EEC) No 2052/88, the Commis­
sion shall ensure coordination of the activities of the 
different Funds as between themselves and with the 
operations of the EIB and the other existing financial 
instruments. 
Article 2 
Coordination between the Funds 
In order to ensure coordination of the activities of the 
Funds as between themselves, the Commission shall have 
recourse to the following: 
— Community support frameworks, 
— multiannual budget forecasts, 
— where expedient, integrated operational programmes, 
— monitoring and assessment of operations under the 
Funds carried out in connection with a single objective 
and of those carried out in connection with a number of 
objectives on the same territory. 
Article 3 
Coordination between the Funds, the EIB and the other 
financial instruments 
1. The Commission shall ensure consistency between 
assistance from the Funds and assistance provided: 
— by the European Coal and Steel Community in the form 
of readaptation aids, loans, interest subsidies or 
guarantees, 
— by the EIB, the New Community Instrument and 
Euratom in the form of loans and guarantees, 
3. 10. 88 Official Journal of the European Communities No C 256/3 
— from resources from the Community budget allocated 
in particular to the integrated Mediterranean program­
mes, support for the Specific Programme for the 
Development of Portuguese Industry (PEDIP), fisheries 
structures, transport infrastructure, environmental 
protection, energy programmes, small and medium-
sized enterprises, innovation schemes and venture-
capital investments, 
— from the resources of the Community research budget. 
2. The Commission shall associate the EIB in the use of 
the Funds or the other existing financial instruments with a 
view to the part-financing of investments that are also 
eligible for assistance from the EIB in accordance with its 
Statute. 
Article 4 
Selection of rural areas [Objective 5(b)] 
1. When presenting the rural development plans referred 
to in Article 11(3) of Regulation (EEC) No 2052/88, 
Member States shall propose to the Commission the areas 
which may be selected in the light of the criteria set out in 
paragraph 2. 
2. In accordance with Article 11(2) of Regulation (EEC) 
No 2052/88, the rural areas that may receive Community 
assistance under Objective 5(b) shall be selected in 
accordance with the following criteria: 
— high share of agricultural employment in total employ­
ment, 
— low level of agricultural income, notably as expressed in 
terms of agricultural value added by agricultural work 
unit, 
— low level of socio-economic development assessed on 
the basis of gross domestic product per inhabitant. 
In the selection of rural areas, areas to which one or more of 
the following criteria are applied may also be taken into 
consideration on receipt of a reasoned request from a 
Member State: 
— the extent of depopulation, 
— the peripheral nature of areas or islands in relation to 
urban centres, 
— the sensitivity of the area to developments in agricul­
ture, especially with a view to the reform of the common 
agricultural policy, assessed on the basis of the trend in 
agricultural incomes and the size of the agricultural 
labour force, 
— the structure of agricultural holdings and the age 
structure of the agricultural labour force, 
— the pressures exerted on the environment and on the 
countryside. 3. The Commission shall, in accordance with the 
procedures provided for in Title VIII and in the light of the 
criteria specified in paragraph 2, determine the rural areas 
to be eligible under Objective 5(b). 
TITLE II 
PLANS 
Article 5 
Scope and content 
1. Subject to the guidelines laid down in this Article, plans 
submitted in connection with Objectives 1 to 4 and 5(b) 
shall be drawn up at the geographical level deemed to be 
most appropriate by the competent national, regional or 
other authorities in Member States. 
Plans submitted in connection with Objective 1 shall, as a 
general rule, cover one or more regions at NUTS level II. 
Plans submitted in connection with Objectives 2 and 5(b) 
shall, as a general rule, cover one or more areas at NUTS 
level III. 
Plans may cover a wider territory than that of eligible 
regions or areas, provided they distinguish between 
operations in eligible regions or areas and operations 
elsewhere. 
2. For regions concerned by Objective 1, the regional 
development plans shall include measures relating to the 
conversion of declining industrial areas and the develop­
ment of rural areas, together with employment and 
vocational training measures not covered by plans 
submitted in connection with Objectives 3 and 4. 
Regional and social conversion plans submitted in 
connection with Objective 2 and rural development plans 
submitted in connection with Objective 5(b) shall also 
include employment and vocational training measures not 
covered by plans submitted in connection with Objectives 3 
and 4. 
Plans submitted in connection with Objectives 3 and 4 shall 
distinguish between expenditure in respect of the regions 
covered by Objectives 1, 2 and 5(b) and expenditure in 
respect of other regions. 
In the plans, Member States shall indicate the particulars 
relating to each Fund, including the volumes of assistance 
requested. 
3. In drawing up the plans, the competent authorities in 
Member States shall ensure that plans relating to the same 
objective within a Member State and plans relating to 
different objectives in the same geographical area are 
mutually consistent. 
No C 256/4 Official Journal of the European Communities 3. 10. 88 
4. The competent authorities in Member States shall 
ensure that the plans take full account of the development 
of Community policies. an outline of the forms of assistance to be provided 
including, for operational programmes, their specific 
objectives and the main types of measure involved, 
Article 6 
Duration and timetable an indicative financing plan specifying the financial 
allocations envisaged for the various forms of assist­
ance. 
Each plan shall cover a period of not less than three years. — where necessary, provisions for any studies or technical 
assistance operations relating to the preparation, 
implementation or adaptation of the measures con­
cerned. For areas designated for assistance by 31 January 1989, the 
initial periods covered by the plans shall commence on 
1 January 1989. 
Plans shall be submitted not later than 31 March 1989. 
However, plans relating to Objectives 3 and 4 shall be 
submitted as soon as possible after the Commission has 
issued the necessary guidelines, and at the latest by 1 June 
1989. Article 9 
Consistency and impact of measures 
Article 7 
Preparation 
1. The Commission may provide Member States at their 
request with any technical assistance necessary in the 
preparation of plans. 
2. The information provided in the plans shall contain, 
where appropriate, details relating to the general socio­
economic situation and to macro-economic policies and 
objectives. 
3. The Commission shall determine the detailed arrange­
ments for the implementation of the provisions of this 
Title. 
TITLE III 
COMMUNITY SUPPORT FRAMEWORKS 
Article 8 
Preparation, scope and content 
1. The Community support frameworks relating to 
Objectives 1 to 4 and 5(b) shall be drawn up on the basis of 
an agreement with the Member State concerned within the 
framework of the partnership and shall be established by 
decision of the Commission in accordance with the 
procedures laid down in Title VIII. The EIB shall be 
involved in the preparation of the Community support 
frameworks. 
2. A Community support framework may cover a period 
of three to five years. 
3. A Community support framework relating to any one 
objective may, where appropriate, relate to the combined 
territory of two or more eligible regions or areas. 
4. Each Community support framework shall include: 
— statement of the priorities for joint Community and 
national action in relation to the objectives set out in 
Article 1 of Regulation (EEC) No 2052/88, 1. The Community support frameworks shall indicate 
the consistency between the structural measures to be 
financed by the Community and, where appropriate, the 
macro-economic and structural policies pursued by the 
Member States concerned. 
2. In establishing and implementing the Community 
support frameworks, the Commission and the Member 
States concerned shall ensure that the annual increase in the 
appropriations for the Funds provided for in Article 12(2) 
of Regulation (EEC) No 2052/88 has a genuine additional 
economic impact in the regions concerned and results in 
corresponding increases in total public expenditure, in 
particular on investment. The Member States shall 
transmit to the Commission the information necessary for 
this purpose, in accordance with arrangements to be 
determined by the Commission. 
Article 10 
Approval and implementation 
1. Unless otherwise agreed between the Commission and 
the Member State concerned, the Commission shall take a 
decision approving the Community support framework 
not later than six months after receiving the relevant plan 
or plans. 
In order to expedite implementation of the measures 
provided for in a Community support framework, Member 
States may submit applications for assistance in good time 
for the Commission to approve them at the same time as it 
takes its decision on the Community support framework. 
In this case, the operational programmes may be im­
plemented immediately. 
2. The Commission decision on the Community support 
framework shall be sent as a declaration of intent to the 
Member State and to the other competent authorities 
concerned. The declaration shall be published in the 
Official Journal of the European Communities. 
3. 10. 88 Official Journal of the European Communities No C 256/5 
The Commission and the Member States shall ensure that 
measures accounting for at least two thirds of assistance 
from the Funds during the first year of the Community 
support framework are approved by the Commission 
within two months of its decision on the Community 
support framework. 
Article 11 
Community initiatives 
In accordance with Article 5(5) of Regulation (EEC) 
No 2052/88, the Commission may, on its own initiative 
and in accordance with the procedures provided for in Title 
VIII, decide to invite Member States to submit applications 
for assistance in respect of measures of significant interest 
to the Community not covered by the plans referred to in 
Title II. Any assistance approved pursuant to this provision 
shall be reflected in the establishment or revision of the 
relevant Community support framework. 
Article 12 
Forms of assistance 
Measures covered by a Community support framework 
shall be carried out primarily by way of operational 
programmes. 
Article 13 
Integrated approach 
The decision to implement measures on the basis of an 
integrated approach shall be taken in the context of the 
Community support framework. 
An operational programme may be implemented in the 
form of an integrated approach if: 
— the programme involves financing by more than one 
Fund or at least one Fund and one financial instrument 
other than a loan instrument, 
— the measures to be financed by different Funds or 
financial instruments are mutually reinforcing and 
significant benefits are likely to accrue from close 
coordination between all the parties involved, 
— the appropriate administrative structures are provided 
at national, regional and local level in the interests of 
integrated implementation of the programme. 
Where the Commission considers that Community assist­
ance can best be organized by way of an integrated 
operational programme, it may, within the context of 
initiatives covered by Article 11, propose that the Member 
State(s) concerned submit an application for assistance in 
respect of such a programme. In such cases, the Commis­
sion shall ensure that Community assistance is provided in the most effective manner, taking into account the special 
coordination effort required. 
TITLE IV 
ASSISTANCE FROM THE FUNDS 
Article 14 
Processing of applications 
1. Applications for assistance from the Structural Funds 
for specific operations shall be prepared by the competent 
national, regional or other authorities concerned and 
submitted to the Commission by Member States or by any 
bodies designated to do so by them. Each application shall 
relate to one of the forms of assistance provided for in 
Article 5 of Regulation (EEC) No 2052/88 (part-financing 
of operational programmes and of aid schemes, global 
grants, part-financing of major projects, and support for 
technical assistance, preparatory studies and pilot pro­
jects). 
2. Applications shall contain the information the Com­
mission needs in order to assess them, including a 
description of the operation proposed, its scope and 
specific objectives, the bodies responsible, the proposed 
beneficiaries and the proposed timetable and financing 
plan, together with any other information necessary to 
verify that the operation concerned is compatible with 
Community legislation and policies (including those 
concerning the rules of competition, the award of public 
contracts and environmental protection). 
3. The Commission shall examine applications with a 
view in particular: 
— to assessing the conformity of the proposed operations 
and measures with the relevant Community legislation 
and, where appropriate, with the relevant Community 
support framework, 
— to assessing the contribution of the proposed operation 
or measure to specific development or other objectives 
and, in the case of an operational programme, the 
consistency of the constituent measures, 
— to determining the arrangements for providing assist­
ance from the Fund or Funds concerned, 
— to checking that the administrative and financial 
mechanisms are adequate to ensure effective implemen­
tation. 
The Commission shall subsequently decide on the granting 
of financial assistance. In the case of an integrated 
operational programme, a single Commission decision 
shall be taken in respect of assistance from all the Funds 
and other Community budgetary instruments contributing 
to the financing of that programme. 
No C 256/6 Official Journal of the European Communities 3. 10. 88 
Article 15 — in relation to integrated operational programmes. 
Eligibility 
1. Subject to Article 34, expenditure in respect of 
measures covered by Objectives 1 to 4 and 5(b) shall be 
eligible for financial assistance from the Structural Funds 
only if the measures in question are indicated in the relevant 
Community support framework. 
2. Except as provided for in Article 34 of this Regulation, 
Article 9 of Regulation (EEC) No ... (ESF) and Article 11 of 
Regulation (EEC) No ... (EAGGF), expenditure may not be 
considered eligible for assistance from the Funds if it is 
incurred before the date on which the corresponding 
application reaches the Commission. The Commission 
shall fix the date on which eligibility for expenditure in 
respect of each measures takes effect. 
Article 16 
Specific provisions 
1. In the case of global grants, the intermediaries shall be 
designated by agreement between the Member States 
concerned and the Commission. The Member State 
concerned shall ensure that all intermediaries have a sound 
financial standing and have the administrative capability to 
manage global grant schemes. The intermediaries shall also 
be selected in the light of the particular situation in the 
Member States or areas concerned. In managing global 
grants, they shall be subject to control by the competent 
public authorities. 
2. The Funds may provide financial assistance towards 
expenditure in respect of major projects if the total cost 
taken into account in determining the amount of Com­
munity assistance is greater than 25 million ECU for 
infrastructure investments or 15 million ECU for product­
ive investments. 
However, projects costing less than this in the fisheries 
sector may be financed if they are covered by a multiannual 
guidance programme approved by the Commission under 
Council Regulation (EEC) No 4028/86 (i). 
3. In addition to similar assistance connected with the 
operations of the various Funds, the Commission may 
finance studies and technical assistance linked to the joint 
or coordinated deployment of the Structural Funds, the EIB 
and the other financial instruments: 
— in preparation for the establishment of plans, 
— with a view to assessing the impact and effectiveness of 
assistance provided under the relevant Community 
support frameworks, 
(!) OJ No L 376, 31. 12. 1986, p. 7. Article 17 
Implementation 
The Commission shall determine the detailed arrange­
ments for the implementation of the provisions of this 
Title. 
TITLE V 
DIFFERENTIATION OF COMMUNITY ASSISTANCE 
Article 18 
Differentiation of the rates 
of contribution from the Funds 
1. The financial contribution from the Funds shall be 
fixed as a percentage and shall be calculated in relation to 
either the total eligible cost of, or the total public or similar 
expenditure (national, regional or local, and Community) 
on, each measure (operational programme, aid scheme, 
global grant, project, technical assistance, study). 
2. In accordance with the first indent of Article 13(1) of 
Regulation (EEC) No 2052/88, the rates of financial 
contribution from the Structural Funds shall be dif­
ferentiated in the light of the seriousness of the specific 
regional problems. As a general rule, assistance from the 
Funds expressed as a percentage of public expenditure shall 
be: 
— 65 % in regions covered by Objective 1, 
— 50 % in areas covered by Objective 2, 
— 40 % in all other cases. 
The rates indicated above may be increased or reduced 
within the limits laid down in Article 13(3) of Regulation 
(EEC) No 2052/88 and in the light of the other criteria set 
out in Article 13(1) of that Regulation, taking account in 
particular of the capacity for contribution of the regional or 
local authorities concerned, notably in Greece, Ireland, 
Portugal and Spain. 
3. Where the measure concerned, among its other 
intrinsic characteristics, entails the financing of revenue-
generating investments, the rates of financial contribution 
from the Funds shall be differentiated in the light of the last 
indent of Article 13(1) of the aforementioned Regulation 
and according to the size of the cash flow which the 
expected revenue will generate. 
In any event, in connection with the development effort in 
the regions concerned, the contribution from the Funds to 
investments in firms may not exceed 50 % of the total cost 
in the regions covered by Objective 1 and 30 % of the total 
3. 10. 88 Official Journal of the European Communities No C 256/7 
cost in the other regions. It shall conform to the 
differentiation principles set out above. 
4. The Commission may differentiate the rates of 
contribution for individual measures forming part of 
operational programmes, aid schemes or global grants. 
Article 19 
Combination of grants and loans 
In the case of investments likely to be financed from both 
budget resources and borrowed funds, Community 
financing shall be a combination of loans and grants. This 
combination shall be determined in conjunction with the 
EIB when the Community support framework is being 
established. It shall take account of the balance in the 
proposed financing plan, the rates of contribution from the 
Funds established in accordance with Article 18 and the 
development objectives pursued. 
TITLE VI 
FINANCIAL PROVISIONS 
Article 20 
General provisions 
1. Financial assistance from the Structural Funds shall be 
subject to the relevant rules applicable to the Funds under 
the Financial Regulation and to the availability of 
budgetary resources. 
2. The financial assistance to be granted in respect of 
specific measures undertaken in implementing a Com­
munity support framework shall be consistent with the 
financing plan laid down in that support framework. 
3. In order to avoid administrative delays at the year end, 
Member States shall ensure that requests for payment are 
submitted in accordance with a balanced schedule 
throughout the year. 
Article 21 
Commitments 
1. Budgetary commitments shall be made on the basis of 
the Commission decisions approving the operations 
concerned. They shall be valid for a limited period, 
depending on the nature of the operations and on the 
specific conditions for their implementation. 
2. Commitments in respect of operations to be carried 
out over a period of two or more years shall, as a general 
rule, be effected in annual instalments. The commitments 
in connection with the first annual instalment shall be made 
when the decision approving the operation is adopted by 
the Commission. Commitments in connection with subsequent annual 
instalments shall be based on the financing plan for the 
operation concerned and on the progress made in 
implementing it. 
3. For operations to be carried out over a period of less 
than two years, the total amount of Community assistance 
shall be committed when the Commission adopts the 
decision approving the operation. 
Article 22 
Payments 
1. Payments of financial assistance shall be made in 
accordance with the corresponding budgetary commit­
ments to the responsible body indicated in the application 
submitted through the Member State concerned. They may 
take the form of advances or final payments. 
2. Following each commitment, the Commission may 
make a first advance of up to 50 % of the amount 
committed, taking into account the nature of the operation 
concerned. 
3. A second advance such that the sum of the two 
advances does not exceed 80 % of the commitment shall be 
made after the responsible body has certified that at least 
half of the first advance has been used up and that the 
operation is progressing according to the timetable laid 
down. 
4. Final payments in respect of each commitment shall be 
conditional on: 
— submission to the Commission by the responsible body 
of a request for payment within six months of the end of 
the year concerned or of completion of the operation 
concerned, 
— submission to the Commission of the relevant reports 
referred to in Article 26(4), 
— transmission by the Member State to the Commission of 
a certificate confirming the information contained in 
the request for payment and the reports. 
5. Member States shall designate the authorities empow­
ered to issue the certificates referred to in paragraphs 3 and 
4. 
6. In the case of measures that are designed to support 
agricultural incomes, such as compensation for natural 
handicaps in less-favoured or mountain areas, and that are 
governed by the provisions referred to in Article 11(1) of 
Regulation (EEC) No 2052/88, the conditions and pro­
cedures applicable in respect of advances or final payments 
shall be laid down in the corresponding Commission 
decisions, due regard being made to the specific nature of 
those measures. 
7. In the case of studies and innovation schemes, the 
Commission shall determine the appropriate payment 
procedures. 
No C 256/8 Official Journal of the European Communities 3. 10. 88 
Article 23 
Use of the ECU 
Commission decisions, commitments and payments shall 
be denominated and carried out in ECU. The Commission 
shall determine the detailed arrangements for the im­
plementation of this Article. 
Article 24 
Financial control 
1. In order to guarantee successful completion of 
operations carried out by public or private promoters, 
Member States shall take the necessary measures: 
— to verify that operations financed by the Community 
have been properly carried out, 
— to prevent and to take action against irregularities, 
— to recover any amounts lost as a result of an irregularity 
or negligence. The Member State concerned shall be 
responsible in a subsidiary capacity for repayment of 
any sums paid in error. 
Member States shall inform the Commission of the 
measures taken for those purposes and, in particular, of the 
progress of administrative and judicial proceedings. 
When submitting requests for payment, Member States 
shall make available to the Commission any national 
control reports on the measures included in the program­
mes or other operations concerned. 
2. Without prejudice to checks carried out by Member 
States under Article 206 of the Treaty or to any inspection 
arranged on the basis of Article 209(c) of the Treaty, 
Commission officials may carry out on-the-spot checks, 
including sample checks, in respect of operations financed 
by the Structural Funds. 
Before carrying out an on-the-spot check, the Commission 
shall, as a general rule, give notice to the Member State 
concerned with a view to obtaining all the assistance 
necessary. Officials of the Member State concerned may 
take part in such checks. 
The Commission may require the Member State concerned 
to carry out an on-the-spot check to verify the regularity of 
payment requests. Commission officials may take part in 
such checks. 
3. For a period of three years following the last payment 
in respect of any operation, the responsible body and 
authorities shall keep available for the Commission all the 
supporting documents regarding expenditure on the 
operation. Article 25 
Reduction, suspension and cancellation of assistance 
1. The Commission may reduce or suspend assistance in 
respect of a particular operation or measure if a check 
reveals irregularities or a significant change affecting the 
nature or conditions of the operation or measure for which 
the Commission's approval has not been sought. 
2. If completion dates have not been respected or if a 
particular operation or measure has been carried out in 
such a manner that payment of only part of the financial 
assistance allocated to it is justified, the Commission shall 
ask the responsible body and the Member State concerned 
to submit their comments within a specified period. Unless 
adequate justification is given to it, the Commission may 
cancel the remaining portion of the financial assistance 
concerned. 
3. Any sum received unduly and to be recovered shall be 
repaid to the Commission. Interest on account of late 
payment may be charged on sums not repaid. The 
Commission shall determine the detailed arrangements for 
the implementation of this paragraph. 
TITLE VII 
MONITORING AND ASSESSMENT 
Article 26 
Monitoring 
1. Within the framework of the partnership between all 
the bodies concerned, the Commission and the Member 
States shall ensure effective monitoring of implementation 
of assistance from the Funds, geared to the Community 
support framework and specific operations (programmes, 
etc.). Such monitoring shall be carried out by way of jointly 
agreed reporting procedures, sample checks and the 
establishment of monitoring committees. 
The Commission shall report to the committees referred to 
in Title VIII on the progress made in implementing 
assistance operations under the Funds, including the use 
made of appropriations in relation to the particulars given 
in the Community support frameworks. 
2. Monitoring shall be carried out by reference to 
physical and financial indicators specified, where ap­
propriate, in the Commission decision approving the 
operation concerned. The indicators shall relate to the 
specific character of the operation, its objectives and the 
form of the assistance provided, and to the macroeconomic 
and structural situation in the countries in which the 
assistance is to be provided. 
3. Monitoring committees shall be set up by agreement 
between the Member State concerned and the Commission. 
3. 10. 88 Official Journal of the European Communities No C 256/9 
The Commission and, where appropriate, the EIB may be 
represented on those committees and may appoint 
technical advisers to them. 
4. For each multiannual operation, the responsible body 
shall submit progress reports to the Commission within six 
months of the end of each full year of implementation. A 
final report shall be submitted to the Commission within 
six months of completion of the operation. 
For each operation to be implemented over a period of less 
than two years, the responsible body shall submit a report 
to the Commission within six months of completion of the 
operation. The Commission shall determine the form and 
content of the reports. 
5. On the basis of the monitoring procedures and reports 
outlined above, the Commission shall make any necessary 
adjustments to the volume or conditions of assistance as 
initially approved and to the schedule of payments 
envisaged. 
6. The Commission shall determine the detailed arrange­
ments for the implementation of this Article. 
Article 27 
Assessment 
1. Assessment shall be carried out within the framework 
of the partnership. The competent authorities in the 
Member States shall, where appropriate, contribute in such 
a way as to ensure that assessment can be carried out in the 
most effective manner. In this connection, assessment shall 
make use of the various particulars that the monitoring 
arrangements can yield in order to gauge the socio­
economic impact of the operations, where appropriate in 
close association with the monitoring committees. 
2. Ex ante and ex post assessment of operations 
undertaken for structural purposes by the Community shall 
be concerned with their effectiveness at three levels: 
— their overall impact on the objectives set out in Article 
130A of the Treaty, and in particular the strengthening 
of the economic and social cohesion of the Community. 
At this level, assessment shall be concerned in particular 
with macro-economic effects and performance, account 
being taken of the general socio-economic context in 
which the operations are being carried out and of the 
extent to which they complement national policies, 
— the impact of operations under each Community 
support framework, including their macro-economic 
effects on the economy of the regions and areas 
concerned and their contribution to the attainment of 
specific objectives, and in particular the development 
priorities, — the impact of individual operations (programmes, etc.). 
At this level, assessment shall be concerned primarily 
with the micro-economic effects of operations. 
Assessment shall, according to the circumstances, be 
carried out by reference to macro-economic indicators 
based on regional or national statistics, to information 
yielded by descriptive and analytical studies and to 
qualitative analyses. 
3. In drawing up Community support frameworks and in 
vetting individual applications for assistance, the Commis­
sion shall take into account, as the determining factor, the 
findings of assessments made in accordance with this 
Article. 
4. The assessment principle and procedures shall be laid 
down in the Commission decisions concerning the 
Community support frameworks. 
TITLE VIII 
COMMITTEES 
Article 28 
Advisory Committee on the Development 
and Conversion of Regions 
In accordance with Article 17 of Regulation (EEC) 
No 2052/88, an Advisory Committee on the Development 
and Conversion of Regions, made up of Member States' 
representatives and chaired by the Commission rep­
resentative, is hereby set up under the auspices of the 
Commission. The EIB shall take part in its deliberations. 
The Commission representative shall submit to the 
Committee a draft of the measures to be taken. The 
Committee shall deliver its opinion on the draft within a 
time limit which the Chairman may lay down according to 
the urgency of the matter, where appropriate by taking a 
vote. 
The opinion shall be recorded in the minutes. In addition, 
each Member State shall have the right to request that its 
position be recorded in those minutes. 
The Commission shall take the utmost account of the 
opinion delivered by the Committee. It shall inform the 
Committee of the manner in which it took account of the 
opinion. 
The Committee shall deliver opinions on draft Commis­
sion decisions concerning the Community support frame­
works as provided for in Articles 8(5) and 9(9) of 
Regulation (EEC) No 2052/88 and on the drawing-up and 
revision of the list of areas eligible in connection with 
Objective 2. The matters referred to in Article 10 of 
Regulation (EEC) No ... (ERDF Regulation) may also be 
referred to it by the Commission. 
No C 256/10 Official Journal of the European Communities 3. 10. 88 
Article 29 
Committee referred to in Article 124 of the Treaty 
In accordance with Article 17 of Regulation (EEC) 
No 2052/88, the Committee referred to in Article 124 of the 
Treaty shall be composed of two government representat­
ives, two representatives of the workers' organizations and 
two representatives of the employers' organizations from 
each Member State. The member of the Commission 
responsible for chairing the Committee may delegate that 
responsibility to a senior Commission official. 
For each Member State, an alternate shall be appointed for 
each category of representative mentioned above. In the 
absence of one or both members, the alternate shall be 
automatically entitled to take part in the proceedings. 
The members and alternates shall be appointed by the 
Council, acting on a proposal from the Commission, for a 
period of three years. They may be reappointed. The 
Council shall, as regards the composition of the Commit­
tee, endeavour to ensure fair representation of the different 
groups concerned. 
The Committee shall deliver opinions on the draft 
Commission decisions relating to the guidelines for action 
in connection with Objectives 3 and 4, on the Community 
support frameworks relating to those objectives and, in the 
case of support from the European Social Fund, on the 
Community support frameworks relating to Objectives 1, 2 
and 5(b). 
For their adoption, the opinions of the Committee shall 
require an absolute majority of the votes validly cast. The 
Commission shall inform the Committee of the manner in 
which it took account of those opinions. 
The Committee shall draw up its rules of procedure. 
Article 30 
Committee on Agricultural Structures and Rural 
Development 
In accordance with Article 17 of Regulation (EEC) 
No 2052/88, a Committee on Agricultural Structures and 
Rural Development, made up of Member States' rep­
resentatives and chaired by the Commission representative, 
is hereby set up under the auspices of the Commission. 
The Commission representative shall submit to the 
Committee a draft of the measures to be taken. The 
Committee shall deliver an opinion on the draft within a 
time limit which the Chairman may lay down according to 
the urgency of the matter under consideration. The opinion 
shall be delivered by the majority stipulated in Article 
148(2) of the Treaty in the case of decisions which the 
Council is requested to adopt on a proposal from the 
Commission; when a matter is put to the vote within the Committee, the votes of the Member States' representatives 
shall be weighted as provided for in the aforementioned 
Article. The Chairman shall not vote. 
The Commission shall adopt measures which shall apply 
immediately. However, if they are not in accordance with 
the opinion delivered by the Committee, they shall be 
communicated forthwith by the Commission to the 
Council. In that event, the Commission may defer 
application of the measures which it has decided for a 
period of not more than one month from the date of such 
communication. 
The Council, acting by a qualified majority, may take a 
different decision within the period provided for in the 
preceding paragraph. 
The Committee shall deliver opinions on draft Commis­
sion decisions: 
— relating to common measures in connection with 
Objective 5(a), 
— relating to Community support frameworks in connec­
tion with Objective 5(b). 
The Committee provided for in this Article shall replace the 
Standing Committee on Agricultural Structures, set up by 
Article 1 of the Council Decision of 4 December 1962 (!),in 
respect of all the functions assigned to it under that 
Decision or under Article 6 of Council Regulation (EEC) 
No 729/70 (2). 
Article 31 
Other provisions 
1. The Commission shall periodically refer to the 
Committees provided for in Articles 28, 29 and 30, the 
reports referred to in Article 16 of Regulation (EEC) 
No 2052/88. It may seek the opinion of those Committees 
on any matter relating to assistance operations under the 
Funds other than those provided for in this Article, notably 
in connection with its power of initiative referred to in 
Article 5(5) of Regulation (EEC) No 2052/88. 
2. Council Decision 75/185/EEC (3) setting up a Regional 
Policy Committee, Council Decision 83/517/EEC (4) 
concerning the Committee of the European Social Fund 
and, as regards the EAGGF Guidance Section, Articles 11 
to 15 of Regulation (EEC) No 729/70 concerning the 
EAGGF Committee are hereby repealed. 
(!) OJ No 136, 17. 12. 1962, p. 2892/62. 
(2) OJ No L 94, 28. 4. 1970, p. 13. 
(3) OJ No L 73, 21. 3. 1975, p. 47. 
(4) OJ No L 289, 22. 10. 1983, p. 42. 
3. 10. 88 Official Journal of the European Communities No C 256/11 
TITLE IX TITLE X 
REPORTS AND PUBLICITY FINAL PROVISIONS 
Article 32 Article 34 
Reports Transitional provisions 
The annual reports referred to in Article 16 of Regulation 
(EEC) No 2052/88 shall review, inter alia: 
— the efforts deployed under all the Funds, the EIB and the 
other financial instruments in support of the priority 
objectives referred to in Article 1 of the aforementioned 
Regulation, 
— the activities of each Fund, the utilization of the 
budgetary resources concerned and the deployment of 
the other financial instruments for which the Commis­
sion has responsibility. 
Article 33 
Information and publicity 
1. The body responsible for implementing an operation 
carried out with financial assistance from the Community 
shall ensure that adequate publicity is given to the 
operation with a view to: 
— making potential beneficiaries and trade organizations 
aware of the opportunities afforded by the operation, 
— making the general public aware of the role played by 
the Community in relation to the operation. 
Member States shall consult the Commission on, and 
inform it about, the initiatives taken for these purposes. 1. In accordance with Article 15(3) of Regulation (EEC) 
No 2052/88, applications in respect of multiannual 
operations received after adoption of that Regulation but 
before the entry into force of the implementing decisions 
referred to in Article 130E of the Treaty must be in keeping 
with the objectives set out in Article 1 of that Regulation 
and involve one of the forms of assistance provided for in 
Article 5 of that Regulation. 
2. In drawing up Community support frameworks, the 
Commission shall take account of any multiannual 
operation already approved by the Council or by the 
Commission before the entry into force of the implement­
ing decisions referred to in Article 130E of the Treaty and 
having financial repercussions during the period covered by 
those support frameworks. 
3. The Commission may propose that the Member State 
concerned apply the provisions set out in the Funds' rules 
which enter into force on 1 January 1989 to operations 
decided on before that date. 
4. In order to guarantee continuity of the activities of the 
Funds in the period between 1 January and 1 October 1989, 
the Commission may approve operations by way of 
derogation from Article 15(1). Such operations shall be 
indicated in the subsequent decisions concerning the 
relevant Community support framework. 
Article 35 
Entry into force 
This Regulation shall enter into force on 1 January 1989. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States.