No C 336/60 Official Journal of the European Communities 23. 12. 81 
Proposal for a Council Regulation amending Regulation (EEC) No 724/75 establishing a 
European Regional Development Fund 
(Submitted by the Commission to the Council on 29 October 1981) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 235 
thereof, 
Having regard to the proposal from the Commission, 
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 of 18 
March 1975 establishing a European Regional 
Development Fund('), as last amended by Council 
Regulation (EEC) No 3325/80 (2), established a 
European Regional Development Fund designed 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 Commission, should 
reconsider this Regulation before 1 January 1982; 
Whereas the coordination of national regional policies 
with each other and with that of the Community is an 
essential element in Community regional policy, intended 
to promote the convergence of national economies and a 
more balanced distribution of economic activities within 
Community territory; 
Whereas it appears necessary, in view of the trend of the 
economic and social situation of the Community, on the 
one hand to adapt the section of the Fund, which is 
divided in national quotas, to concentrate Fund 
assistance on regions experiencing particularly serious 
structural problems and on the other hand to allocate 
more credits from the section not distributed in national 
quotas to regions particularly affected by recent, serious 
problems of industrial decline or by the consequences of 
certain Community policies; 
Whereas the regions with particularly serious structural 
problems in which the Fund is called upon to give 
assistance must be decided according to Community 
criteria, taking account in particular of the relative 
intensity of the social and economic problems of regions, 
in relation to the Community average, which problems 
are to be assessed both by the level of economic 
development and by the situation with regard to 
employment; Whereas to improve the impact of Fund assistance and the 
complementary character of Fund assistance measures 
and those of national and regional authorities, it is 
appropriate to replace the system of financing individual 
investments gradually by a system of financing 
programmes, which contracts may concern both 
infrastructure and national aid systems in industrial, 
handicraft and service activities; 
Whereas the economic situation and that of employment 
in the Community require seeking the best possible use of 
growth potential in less favoured regions; 
Whereas to this end it is desirable to broaden the field of 
aid of the section of the Fund divided in national quotas to 
include financing of operations designed to promote the 
local development potential of regions; 
Whereas accelerated Fund payments are of a nature to 
facilitate realization of measures assisted by the Fund; 
whereas the introduction, under certain conditions, of a 
system of advance payments complies with this 
purpose; 
Whereas the eminently Community character of specific 
measures of regional development justifies their adoption 
by the Commission after consulting the Fund 
Committee; 
Whereas to enable a better integration of financial 
resources, both Community and national, in the areas 
affected by especially serious problems, due particularly 
to delayed development or industrial or urban decline, it 
is appropriate to promote the implementation in those 
areas of integrated development operations, closely 
concerted between the Community and the national 
authorities concerned, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The,text of Regulation (EEC) No 724/75 of 18 March 
1975 establishing a European Regional Development 
Fund is replaced by the text annexed to this Regulation. 
Article 2 
This Regulation shall enter into force on 1 January 
1982. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
(') OJNoL73,21. 3. 1975, p. 1. 
(2) OJ No L 349, 23. 12. 1980, p. 10. 
23. 12. 81 Official Journal of the European Communities No C 336/61 
ANNEX 
Regulation concerning the coordination of regional policies and the European Regional 
Development Fund 
Delegations from the present text of the Regulation are indicated by the sign [. . .], and 
additions or amendments are printed in italic. 
TITLE I 
COORDINATION OF REGIONAL POLICIES 
Article 1 (new) 
1. In order to contribute to the achievement of a high 
degree of convergence of the economies of Member States 
and a more balanced distribution of economic activities 
throughout the Community, Member States and the 
Commission shall institute coordination between 
national regional policies and between those policies and 
Community regional policy according to the procedures 
provided for in Article 2 below. 
2. The object of such coordination shall be: 
— the adaptation of national regional policies so as to 
avoid, in particular, contradictory results; 
— the closer convergence between national regional 
policies and Community objectives and priorities in 
particular the regional; 
— to ensure especially that aids take account of the 
severity of the regional problems existing within each 
member country and at Community level. 
3. This coordination must take account of the impact 
upon regions of the economic and sectoral policies of the 
Community and of the Member States. 
Article 2 (new) 
1. Preparation of the periodic report and examination 
of regional development programmes and the regional 
impact assessment shall be instrumental in promoting the 
said coordination, with a key role also being performed 
by coordination of general regional aid schemes. 2. The Commission, working in close association 
with the Regional Policy Committee, shall prepare a 
periodic report on the situation and socio-economic 
changes in the regions of the Community and on national 
regional policies. To this end, Member States shall 
provide the Commission with the relevant information. 
This report shall be prepared at regular, 
two-and-a-half-year intervals, with every other report 
coinciding with the examination of the medium-term 
economic policy programmes. On the basis of this report, 
the Council, acting on a proposal from the Commission 
and after consulting the European Parliament and the 
Economic and Social Committee, shall adopt the regional 
policy guidelines and priorities. 
3. (a) Member States shall communicate to the 
Commission their regional development 
programmes, and any amendments thereto, for 
the regions and areas covered by a regional State 
aid scheme. Such programmes shall be prepared in 
accordance with the joint outline drawn up by the 
Economic Policy Committee (J) and in the light of 
the Commission recommendation of 23 May 
1979 (2). They shall be indicative in nature and 
shall specify the objectives of the development of 
the region concerned and the means to be 
employed. They shall be prepared in close 
association with the regional authorities 
concerned. When communicating these 
programmes, Member States shall transmit to the 
Commission the information concerning, where 
their entire territory is concerned, the essential 
public measures that are likely to influence the 
regional balance, including expenditure in each 
region under their infrastructure budgets. 
(>) OJ No C 69, 24. 3. 1976, p. 2. 
(2) OJ No C 143, 12. 6. 1979, p. 9. 
No C 336/62 Official Journal of the European Communities 23. 12. 81 
The regional development programmes shall be 
examined by the Commission and the Regional 
Policy Committee in the light of the coordination 
objectives as laid down in Article 1 above. The 
Regional Policy Committee shall make known its 
views on them to the Commission, which shall, 
where necessary, address the appropriate 
recommendations to Member States. 
(b) Before 31 May each year, Member States shall 
send to the Commission a report on the 
implementation of the regional development 
programmes, 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 means employed, both from 
national and Community sources, making 
separate mention, where applicable, of those 
provided by the Fund or under the 
Community's other financial instruments; 
— the rate of utilization of the major 
infrastructures completed during the year, 
when possible. 
4. The Commission is analyzing the regional impact of 
the main common policies and essential measures which it 
proposes to the Council. It is informing the latter of the 
way in which account is taken of this analysis, including, 
where relevant, its intention to implement a specific 
Community measure as indicated in Article 27 of the 
current Regulation. The Council, on a proposal from the 
Commission, will adopt the required measures. 
TITLE II 
GENERAL PROVISIONS RELATING TO THE EUROPEAN REGIONAL 
DEVELOPMENT FUND 
Article 3 (former Article 1) 
The European Regional Development Fund, hereinafter 
referred to as 'the Fund', is intended to correct the 
principal regional imbalances within the Community 
resulting in particular from agricultural preponderance, 
industrial change and structural underemployment. 
Article 4 (former Article 2) 
1. [...], the endowment for the Fund shall be 
determined annually in the general budget of the 
European Communities, with a distinction being made 
between the measures referred to in Title 111 and 
Title IV. 
2. The annual budget shall indicate for the relevant 
year under the heading for the Fund: 
(a) appropriations for commitment; 
(b) appropriations for payment. 
Unless any specific provision of this Regulation provides 
otherwise, the Financial Regulation applicable to the 
general budget of the Communities shall apply to the 
management of the Fund. 
3. The following may be financed by the Fund with a 
view to contributing to attainment of the objectives 
referred to in Article 3: 
(a) Community measures to assist regions suffering from 
especially serious structural problems, as provided for in Title III. [. . .] The resources of the Fund 
intended for financing such measures shall be 
allocated as follows: 
— The Mezzogiorno as defined in Article 1 of 
Decree No 218 of 6 March 1978 issued by the 
President of the Italian Republic 43 • 67 % 
— Greek regions, with the exception of A areas as 
defined in Article 4 of the Greek Law No 
1116/81 of 14 January 1981, paragraph 1, 
taking into account Article 4, paragraph 2 of the 
same Law 15*97 % 
— Ireland 7-31 % 
Assisted areas as defined in section 7, 
paragraph 7 of the United Kingdom Industry Act 
of 9 August 1972 and elaborated upon in the 
decision of the United Kingdom Government of 
17 July 1979 and in the subsequent decisions 
implemented with effect from 1 August 1982 in 
Northern Ireland, Scotland, Wales and the North 
and North West of England 29 • 28 % 
— Greenland 
— French overseas departments 1 • 30 % 
2-47% 
The distribution of the resources of the Fund referred 
to above shall be applied on a global basis for periods 
of three years. 
When granting aid from the Fund, priority will be 
given to investments located in national priority 
zones, taking account of the principle of coordinating 
regional State aid schemes at Community level. 
23. 12. 81 Official Journal of the European Communities No C 336/63 
(b) specific Community regional development measures 
to assist regions particularly affected by recent and 
serious problems of industrial decline or by the effects 
of certain Community policies, as provided for in 
Title IV. The assistance allotted to these measures 
may not exceed 20 % of the Fund's resources. 
The Fund's resources intended for financing these 
measures shall be used having due regard to the 
CHAPTER 1 
GEOGRAPHICAL SCOPE 
Article 6 (new) 
1. The list of regions and zones referred to in A rticle 4 
(3) (a) may be revised by the Council, acting by a qualified 
majority on a proposal from the Commission, in 
particular where the analysis made in the periodic report 
referred to in Article 2 (2) reveals substantial changes in 
the relative severity of socio-economic problems in the 
regions of the Community. 
2. The Commission may, at the request of the 
Member State concerned and in accordance with the 
procedure laid down in Article 31, decide to make 
amendments to the said list which shall not have the effect 
of increasing the population in the eligible regions and 
areas in a particular Member State by more than 
0-5 %. 
CHAPTER 2 
OPERATIONAL RULES 
Section 1: 
Provisions relating to the financing of programme 
contracts 
Article 7 (new) 
1. The Fund shall participate in the measures referred 
to in Article 4 (3) (a) by financing programmes stipulating 
the conditions for financial assistance by the Community 
in respect of infrastructure investments and/or State aid specific problems of the regions and to the relative 
severity of regional imbalances in the Community. 
Article S (new) 
Measures referred to in Article 4 (3) (b) which are carried 
out in regions or areas covered by a regional State aid 
scheme and all the measures referred to in Article 4 (3) (a) 
shall form part of a regional development programme as 
referred to in Article 2, paragraph 3. 
schemes for industry, the artisanat or the services sector, 
including tourism. 
2. Infrastructures to be financed under investment 
programmes shall contribute to the development of the 
region or area in which they are located. 
3. State aid schemes for industry, the artisanat or the 
services sector shall be financed in respect of economically 
sound activities that create or maintain jobs. The 
Community may finance all or only part of the aid 
schemes. 
Article 8 (new) 
1. As a general rule, the duration of programmes 
referred to in Article 7 may not be less than three 
years. 
2. The programmes shall concern one or more, or 
part, of the regions or areas referred to in 
Article 4 (3) (a). 
3. They shall include the following: 
(a) expected results, where possible in quantified 
form; 
(b) measures to be taken to achieve these results, together 
with the implementation schedule; 
(c) plan for financing the programme, making a 
distinction between Community, national and 
regional sources of finance; 
(d) designation of the authorities or agencies responsible 
for implementing the programme and the actions 
within it; TITLE III 
COMMUNITY MEASURES TO ASSIST REGIONS EXPERIENCING ESPECIALLY 
SERIOUS STRUCTURAL PROBLEMS 
No C 336/64 Official Journal of the European Communities 23. 12. 81 
(e) essential ancillary measures that are taken by the 
Member State in question and do not benefit from 
Community financing; 
(f) information showing that Community aid will result 
in additional financing and, consequently, additional 
practical measures to promote development of the 
region covered by the programme contract; -
(g) steps relating to the measures envisaged to protect the 
environment in the regions concerned; 
(h) arrangements to publicize the provision of Fund 
assistance, the purpose being to inform potential 
beneficiaries and the various sections of the economy 
of the opportunities afforded by the programme and 
of the role played by the Community. 
4. The details of elements provided for at paragraph 3 
to be contained in the programmes shall be determined by 
the Commission in accordance with the procedure 
referred to in Article 31. 
Article 9 (new) 
1. Programmes that might qualify for assistance from 
the Fund shall be submitted to the Commission by the 
Member State in question. They shall be drawn up by the 
latter in close association with the authorities 
concerned. 
2. The Fund's contribution to programme financing 
may amount to 50 % of the expenditure taken into 
account in determining the amount of Fund assistance. 
The Commission shall lay down the criteria for 
implementing this paragraph in accordance with the 
procedure provided for in Article 31. 
3. The Commission shall assess a programme taking 
due account of its consistency with the regional 
development programmes and of its contribution to 
attainment of the Community's regional objectives and 
priorities, and notably the creation or maintenance of 
productive jobs, mobilization of the indigenous potential 
of the region concerned and strengthening of its economic 
base. 
4. // the Commission considers that the programme 
submitted can receive assistance from the Fund, it will 
inform the Member State concerned adding its 
observations. The Commission and the Member State 
concerned shall finalize the programme by common 
consent which must in particular detail the complete 
financial plan. A programme which becomes in this way 
the subject of an agreement between the Commission and 
the Member State is considered to be, under the terms of 
the present Regulation, a programme contract. 
The programme and the programme contracts, in which 
the Commission may among other things lay down 
special conditions relating especially to the 
implementation of Article 8 (3) (f), shall be approved by 
the Commission in accordance with the procedure provided for in Article 31. The provision of Fund 
assistance shall be decided upon by the Commission at the 
same time and in accordance with the same procedure. 
5. The Commission shall decide the aids from the 
Fund in accordance with Article 31. The programme 
contract shall be attached to the grant decision. 
6. The aids from the Fund shall be published in the 
Official journal of the European Communities. 
Article 10 (new) 
1. Each year, before 31 May, the Member State 
concerned shall submit to the Commission a report giving 
details of the progress made in implementing each 
programme during the preceding calendar year and 
making reference to the information required under 
Article 8 (3). These reports shall enable the Commission 
to verify implementation of the programme, to take note 
of their effects and, where necessary, to determine 
whether the operations are being carried out in a 
consistent manner. They shall be communicated to the 
Fund Committee. 
2. On the basis of these reports, the Commission shall 
present a report in the manner set out in Article 36. 
3. In the event of a programme in the course of 
implementation being substantially amended, the 
procedure provided for in Article 31 shall apply. 
4. Upon completion of each programme, the 
Commission shall inform the Fund Committee of the 
results achieved. 
Article 11 (new) 
1. For a transitional period of three years beginning on 
1 January 1982, the Fund may contribute both to the 
financing of programmes in accordance with the 
arrangements laid down in this Section and to the 
financing of investment projects in accordance with the 
arrangements laid down in Section 2. 
2. In the second and the third year of the transitional 
period and subject to the provisions of paragraph 3 
hereafter and Sections 3 and 4, the proportion of Fund 
assistance allocated to the financing of programmes may 
not, for each Member State, be lower than 30 % and 
60 % respectively of the appropriations available for 
Community measures to assist regions having 
particularly serious structural problems. After the end of 
the transitional period, all available appropriations shall, 
also subject to paragraph 3 below and to the provisions of 
Sections 3 and 4, be used for the financing of 
programmes. 
3. At the end of the transitional period, investment 
projects costing more than 40 million ECU may continue 
to be financed by the Fund, in accordance with the 
arrangements laid down in Section 2. 
23. 12. 81 Official Journal of the European Communities No C 336/65 
Section 2 
Provisions relating to the financing of investment 
projects 
Article 12 (former Article 4 (2)) 
1. In the case of investment projects in industry, the 
artisanat or the services sector, the amount of the Fund's 
contribution shall be equal to 20 % of the investment 
cost; it may not, however, exceed 50 % of the aid granted 
to each project by the public authorities under a regional 
aid scheme and, moreover, it shall be confined to that part 
of the investment cost not exceeding 100 000 ECU per 
job created or 50 000 ECU per job maintained. 
In the case of the services sector and the artisanat, the 
Fund's contribution shall he calculated on the basis of the 
number of jobs created or maintained. It shall amount to 
20 000 ECU per job but may not exceed 50 % of national 
aid. 
The State aids to be taken into consideration shall be 
grants, interest-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 granted in respect of an 
investment project and linked to the transfer of plant and 
workers. The aid equivalent shall be calculated in 
accordance with an implementing regulation adopted 
pursuant to Article 31. 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. 
In accordance with a prior decision by the Member State 
concerned notified at the same time as the grant 
application, the Fund's contribution as thus defined may 
be in addition to aid granted by the public authorities in 
respect of the relevant investment project, or may remain 
credited to those authorities in partial repayment of such 
aid. In this case, the financial effort of the Member State 
in the region in question shall be increased by the amount 
of Community assistance. 
2. In the case of infrastructu re investment p rojects, the 
amount of the Fund's contribution shall be equal to 30 % 
of the total cost of the investment measures carried out 
where the project costs less than 5 million ECU and to 
between 10 % and 30 % where the project costs 5 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. 
Member States shall give priority to the submission of 
grant applications in respect of investment projects 
carried out by regional or local authorities. 3. All or part of the Fund's contribution may be in the 
form of an interest-rate subsidy on Community loans 
made in the regions or areas referred to in Article 4 (3) 
(a). 
Article 13 (former Article 5) 
1. The provision of Fund assistance shall be decided 
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 
development of the region; 
(b) its consistency with the Community's programmes 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) other assistance granted by Community institutions 
or by the European Investment Bank, either in respect 
of the same project or for other measures in the same 
region. In this way, Fund assistance will be 
coordinated with other Community assistance in 
such a way as to promote comprehensive convergent 
and coordinated measures in a given region and to 
guarantee, in particular, consistency between 
regional policy and the policy on agricultural 
structures. 
2. (a) In the case of investments of 5 million ECU or 
more, the provision of Fund assistance shall be 
decided upon by the Commission in accordance 
with the procedure provided for in Article 31. 
(b) In the case of investment projects costing less than 
5 million ECU, the Commission shall decide on 
the Fund contributions and shall inform the Fund 
Committee of these decisions taken. 
Article 14 (former Article 7) 
1. Applications for Fund assistance shall be submitted 
to the Commission by Member States, together with such 
No C 336/66 Official Journal of the European Communities 23. 12. 81 
information as will enable the Commission to assess the 
merit of the investment projects in the light of Articles 2 
and 13. 
2. In the case of investments of less than 5 million 
ECU, Member States shall present grouped applications 
at the beginning of each quarter. These applications shall 
be submitted on a region-by-region basis, with a 
distinction being made between investments in industry, 
the artisanat or the services sector and investments in 
infrastructure. 
These applications shall state: 
(a) in respect of investments in industry, the artisanat or 
the service sectors, the names of the undertakings 
concerned, their sector of activity, and the location of 
each investment and its object (establishment, 
extension, conversion or restructuring of an 
undertaking), the total amount of investment 
involved, the predicted overall effect on employment 
(creation or maintenance of jobs) the estimated 
implementation schedule, total aids granted in 
connection with which Fund assistance is requested, 
and the planned schedule of payments; 
(b) in respect of investments in infrastructure, the 
location of each investment and its object, its 
contribution to the development of the region, 
predicted total expenditure and expenditure to be 
borne by public authorities, the planned schedule of 
payments, the name of the responsible authorities, 
the total amount of assistance requested from the 
Fund, and the estimated implementation schedule. 
3. In the case of investment projects costing 5 million 
ECU or more, applications shall be submitted separately 
and shall include the following information: 
(a) in respect of projects in industry, the artisanat or the 
services sector, the name of the undertaking, the 
sector of activity, the object of the project and its 
location, the effect on employment, the planned 
implementation schedule, the details of any grants, 
interest-rate subsidies or loans at reduced rates of 
interest, the planned schedule for payment of such 
aids, any other form of aid granted or planned by the 
public authorities and the financing plan, indicating 
in particular any other Community aids requested or 
planned. 
The Member State shall specify in its application the 
total amount of assistance which, in its opinion, 
should be granted to the undertakings 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, its financing plan, the implementation schedule 
and the planned schedule of payments. 4. Provision of Fund assistance shall be decided upon 
by the Commission: 
(a) on an aggregated basis for each 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 submission 
of grant applications in respect of projects costing 
5 million ECU or more. 
Article 15 (former Article 10) 
1. The investors concerned shall be informed, in 
agreement with the Member States in question, that part 
of the aid granted to them has been provided by the 
Community. In the case of infrastructure projects, 
Member States, in agreement with the Commission, shall 
take all necessary steps to ensure the assistance from the 
Fund is given suitable publicity. 
2. The list of projects that have received Fund 
assistance shall be published every six months in the 
Official Journal of the European Communities. It shall 
specify the nature and location of each project and the 
amount of investment involved. 
Section 3 
Provisions relating to the financing of operations aimed at 
exploiting the indigenous development potential of the 
regions 
Article 16 (new) 
The Fund may contribute to the financing of operations 
aimed at exploiting the indigenous development potential 
of the regions that fall within one of the following 
categories: 
(a) measures to provide small and medium-sized 
businesses, artisanal enterprises and rural tourism 
with facilities enabling them to expand their means of 
action and to have access to new technology. Such 
measures shall include: 
— operating aids for agencies compiling and 
disseminating information on product and 
technological innovations and for conducting 
feasibility studies and projects permitting the 
introduction of these innovations in 
undertakings; 
23. 12. 81 Official Journal of the European Communities No C 336/67 
— aids for conducting sectoral studies with a view to 
providing fuller information on access to 
national, Community and external markets and 
aids to encourage the dissemination of 
information concerning the findings of such 
studies; 
— aids to increase the efficiency of undertakings by 
making it easier for them to obtain management 
and organizational advice; these aids shall cover 
the expenditure of undertakings relating to 
services provided by consultancy firms or 
bodies; 
— starting-up aids facilitating the introduction of 
services to be used jointly by two or more 
undertakings, and covering in part operating 
expenditure relating to the common services; 
— aids to promote more effective exploitation of 
regional potential in the field of rural tourism and 
related to a part of the operating expenses of 
agencies responsible for the promotion and 
coordinated management of tourist 
accommodation; 
(b) assistance for the regional or local authorities in 
working out a programme and making the technical 
and financial preparations for, and in implementing, 
operations that might qualify for Fund assistance; as 
well as improving the performance of the agencies 
called on to fulfil these tasks; 
(c) measures to promote the establishment and 
expansion of small and medium-sized businesses by 
providing them with easier access to the capital 
market, in accordance with arrangements to be 
adopted by the Council, acting on a proposal from 
the Commission, pursuant to an implementing 
regulation. 
Article 17 (new) 
The Fund contribution o/ measures provided for in 
Article 16 shall be determined as follows: 
1. (a) for the operations provided for at (a) first and 
third to fifth indents are degressive for a period of 
three years, at a rate of 70 % for the first year, and 
shall not exceed an average of 55 %for the period 
of three years. 
For the feasibility studies provided for at (a) first 
indent, the Fund contribution shall not exceed 
70 % of the cost of the study, with a limit of 
50 000 ECU per study; 
(b) for the operations provided for at (a), second 
indent, 70% of the cost of the studies and 
expenditure relating to the dissemination of their 
results. 
2. For operations provided for at (b), 70 % of the 
expenses to be borne by the regional or local 
authorities. 3. The Fund contribution shall be decided by the 
Commission according to the procedure set out in 
Article 31. 
Section 4 
Provisions relating to studies 
Article 18 (former Article 12) 
1. The Fund may contribute to the financing of studies 
closely related to Fund operation and conducted at the 
request of a Member State. 
2. Fund assistance may not exceed 50 % of the cost of 
the study. 
CHAPTER 3 
PAYMENTS AND CHECKS 
Section 1 
Provisions relating to programmes 
Article 19 (new) 
1. The budget appropriations for the financing of a 
programme shall be committed in allocations covering a 
period of one year. The first allocation shall be committed 
once the grant decision has been taken by the 
Commission. Subsequent allocations shall be committed 
subject to the budget resources available and the progress 
of the programme. 
2. Those expenditures which the authorities 
concerned have or expect to be made from 1 January of 
the year in which the programme is presented to the 
Commission shall be eligible for Fund contributions. 
Article 20 (new) 
1. Each payment application shall be accompanied by 
a certificate issued by the Member State and evidencing 
execution of the operations and the existence of detailed 
supporting documents. It shall contain the following 
information: 
— object of the operations covered by the payment 
application; 
— amount and type of expenditure incurred in respect of 
the individual operations during the period covered 
by the application; 
No C 336/68 Official Journal of the European Communities 23. 12. 81 
— confirmation that the operations described in the 
payment application were started as provided for in 
the programme. 
2. The Member State in question shall keep available 
for inspection by the Commission for a period of three 
years following the last payment made in connection with 
the programme all the documents in support of 
expenditure incurred under the programme or certified 
copies thereof. 
The Commission reserves the right to make a detailed 
examination of each individual project being 
implemented in the framework of the programme. 
3. Payments shall be addressed by the Commission: 
— 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, the artisanat or the services sector. 
Section 2 
Provisions relating to investment projects 
Article 21 (former Article 8) 
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 31, shall be paid as and when expenditure is 
incurred, 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 intermediate payment applications: 
— 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 22 and that part of the 
amount for which payment is requested; 
— the amount of the payment requested from the 
Fund; 
— a forecast of future payment applications; 
(b) for final payment requests, all the information 
referred to at (a), with the exception of the last indent, 
together with: — the amount actually invested and confirmation 
that the project carried out corresponds to the 
initial project; 
— the date of completion of the project; 
— the number of jobs created or maintained by a 
project in industry, the artisanat or the services 
sector; 
— the amounts of public expenditure. 
2. Where expenditure provided for in the decisions 
referred to in Article 14 consists in aids granted in the 
form of interest-rate subsidies or loans at reduced 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 certificate evidencing completion. 
3. Member States shall designate the authorities or 
agencies authorized to issue the certificates referred to in 
this Article. In the case of infrastructure investment 
projects, payments shall be addressed by the Commission 
to the bodies supervising the work concerned in the 
particular investment. 
In the case of investments in industry or the service sector 
payments shall be addressed to the Member State or to a 
body designated by it for this purpose. 
Article 22 (former Article 11) 
Payments made by Member States as from 1 January of 
the year during which the grant application was 
submitted and in respect of projects not completed by that 
date shall be eligible for contributions from the Fund. 
This time limit may be extended by six months for 
payments in respect of projects in Greenland. 
Section 3 
Provisions relating to operations aimed at exploiting the 
indigenous development potential of the regions 
Article 23 (new) 
1. Grant applications shall be submitted to the 
Commission via the Member States. 
2. They shall state: 
— for measures referred to in Article 16 (a), the object of 
the measure, its location, the nature of the agencies or 
businesses benefiting from the measure, its effect on 
employment, the planned implementation schedule 
and the financing arrangements; 
23. 12. 81 Official Journal of the European Communities No C 336/69 
— for measures referred to in Article 16 (b), the object of 
the measure, its location, the effect expected by the 
regional or local authorities and the duration of and 
arrangements for financing the measure. 
3. Payment requests shall be submitted to the 
Commission by Member States, together with a 
certificate issued by the latter and evidencing execution of 
the operations and the existence of detailed supporting 
documents. They shall contain the following 
information: 
— object of the operations covered by the payment 
application; 
— amount and type of expenditure incurred in respect of 
the individual operations during the period covered 
by the application. 
4. Payments shall be addressed by the Commission to 
the public authorities, agencies or businesses concerned. 
The aids provided for at Article 16 (a) third and fourth 
indents and, when they directly benefit businesses, the 
aids provided for at Article 16 (a) first indent, shall not 
reduce the businesses' share of total expenditure to less 
than 20 %. 
Section 4 
Advances 
Article 24 (new) 
1. In the case of measures referred to in Articles 7,12 
and 16, undertaken after the entry into effect of the 
revised version of the present regulations, advances of up 
to 80 % may be granted by the Fund in the light of 
progress made in the operations and available budget 
resources. 
2. At the Member State's request, the Commission can 
make an initial advance of 80 % of its aid in respect of the 
first annual allocation, after the starting date scheduled 
for the implementation of operations. 
3. Applications for advances in respect of the other 
annual allocations may be submitted where at least 60 % 
of the planned operations covered by the preceding 
allocation have been completed and where work covered 
by any other previous allocations has been concluded. 
4. The balance shall be paid at the request of the 
Member State upon presentation of a certified statement 
that the operations covered by the first allocation can be 
deemed to have been completed, and of a statement of 
public expenditure made. 
5. The form and conditions of the applications for 
advances referred to in paragraphs 2 and 3 shall be 
determined in accordance with the procedure laid down 
in Article 31. Section 5 
Provisions relating to checks 
Article 25 (former Article 9) 
1. Where a measure that has received a contribution 
from the Fund has not been carried out as planned, or if 
the conditions imposed by the provisions which govern 
the measure are not fulfilled, the Fund's contribution may 
be reduced or cancelled if the Commission, after 
consulting the Fund Committee, so decides. 
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 
twelve months of the date on which the relevant decision 
was communicated. 
Member States shall repay to the Commission the amount 
of Fund assistance received in all cases 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 
Commission all the information necessary to ensure 
effective operation of the Fund and shall take all the steps 
likely to facilitate such monitoring as the Commission 
may deem useful in managing the Fund, including 
on-the-spot checks. They shall notify the Commission of 
the cases referred to in the first subparagraph of 
paragraph 1. 
3. Notwithstanding 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-the-spot 
checks 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 time limits for the performance of the checks 
and inform the Member State concerned of them in 
advance in order to obtain all the assistance necessary. 
4. The purpose of such on-the-spot checks or 
enquiries 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 the fact 
that they correspond to the operations financed by 
the Fund; 
(c) the conditions under which operations financed by 
the Fund are executed and monitored; 
No C 336/70 Official Journal of the European Communities 23. 12. 81 
(d) the conformity of projects carried out with the 
operations financed by the Fund. 
5. The Commission may suspend payment of 
assistance 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 applicable to 
the general budget of the European Communities ('), if an 
operation that has received assistance from the Fund has 
not been completed or has been carried out in such a 
manner that payment of only part of the Fund assistance 
granted in respect of that project is justified, the 
outstanding part of the Fund's contribution shall be 
OJNoL356, 31. 12. 1977, p. 1. allocated to another activity in one of the eligible regions 
of the same Member State under the conditions laid down 
in this Regulation. 
Article 26 (new) 
Member States shall, within three years of completion of 
the actions financed by the Fund, inform the Commission 
of the following: 
— in the case of investment projects in industry, the 
artisanat or the services sector, the number of jobs 
created; 
— in the case of infrastructure investment projects 
costing more than 5 million ECU, the rate of 
utilization of the infrastructure in question, where 
such information is available. 
TITLE IV 
SPECIFIC COMMUNITY REGIONAL DEVELOPMENT MEASURES 
Article 27 (former Article 13) of [. . .] employment in regions or areas experiencing 
difficulties. 
1. In the case of Community measures referred to in 
this Title, the Fund shall also grant assistance in regions 
or areas which may differ from those referred to in 
Article 4 (3) (a) provided the Member State concerned 
has already taken action, or takes action at the same time, 
to tackle the problems which the Community measures in 
question are intended to resolve. 
2. The measures referred to in this Title may differ in 
whole or in part from the measures referred to in Title III. 
They shall be aimed at Community regions and zones 
particularly affected: 
— either by recent, serious problems of industrial 
decline, 
— or by certain Community policies or by measures 
adopted by the Community in order to facilitate the 
implementation or to mitigate the regional 
consequences of these policies. 
These measures may not have as their object the internal 
reorganization of declining sectors but may, by 
establishing new economic activities and the 
implementation of new technology, promote the creation These measures shall be financed jointly by the 
Community and by the Member State or States 
concerned. 
3. Member States shall provide the Commission with 
the information on regional problems that might qualify 
for a specific measure within the meaning of 
paragraph 2. 
4. Without prejudice to the responsibilities of the 
Commission with regard to State aids under Articles 92, 
93 and 94 of the Treaty, the Commission shall fix, 
according to the procedure provided for at Article 31: 
(a) the nature of the operations eligible for Fund 
assistance; 
(b) the areas and regions in which the Fund may grant 
assistance; 
(c) the national public aid taken into consideration in 
granting Fund assistance; 
(d) the contribution of the Fund; 
23. 12. 81 Official Journal of the European Communities No C 336/71 
(e) the categories of beneficiaries of Fund assistance; 
(f) the financing arrangements; 
(g) the arrangements to publicise the provision of Fund 
assistance, the purpose being to inform potential 
beneficiaries and the various sections of the economy 
of the opportunities afforded by the programme and 
of the role played by the Community. Article 28 (former Article 14) 
1. The Fund may bear all or part of the cost of 
preparatory studies for specific Community regional 
development measures. [. . .] 
2. The Commission shall decide the amount of Fund 
contribution and inform the Fund Committee of the 
studies undertaken and of their results. 
TITLE V 
GENERAL AND FINAL PROVISIONS 
CHAPTER 1 
PROVISIONS RELATING TO THE INTEGRATED 
OPERATIONS OF DEVELOPMENT 
Article 29 (new) 
1. In the granting of Fund assistance, investments and 
measures referred to in Titles III and/or IV which form 
part of an integrated development operation may be 
accorded priority treatment and a preferential rate. 
2. An 'integrated development operation' comprises a 
coordinated package of public and private measures and 
investments which have the following characteristics: 
(a) they relate to a limited geographical area suffering 
from particularly serious problems associated in 
particular with under-development or with industrial 
or urban decline and likely to affect the region in 
question; 
(b) the Community through the combined use of various 
structural financial instruments, and the national and 
local authorities in Member States, contribute in 
close association to their implementation. 
3. The Member States concerned shall ensure the 
concerted use of Community and national financial 
resources and close coordination between the individual 
public authorities taking part in the implementation of 
the integrated operation. 
4. The Commission too shall ensure the concerted use 
of the various Community structural financial 
instruments. 
5. The Fund's contribution to investments and 
measures that form part of the operations referred to in 
this Article may be increased by 10 % points, but shall 
not exceed 80 % of expenditure, according to the 
Article 31. CHAPTER 2 
OTHER PROVISIONS 
Article 30 (former Article 15) 
1. A Fund Committee (hereinafter referred to as 'the 
Committee') is hereby established. It shall be composed of 
representatives 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 Article 
148 (2) of the Treaty. The chairman shall not vote. 
Article 31 (former Article 16) 
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 submit 
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 forty-five 
votes. 
3. The Commission shall take decisions which shall 
apply immediately. However, if these decisions are not in 
accordance with the opinion of the Committee, they shall 
forthwith be communicated by the Commission to the 
No C 336/72 Official Journal of the European Communities 23. 12. 81 
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 communication. The 
Council, acting by a qualified majority, may take a 
different decision within two months. 
Article 32 (former Article 17) 
The Committee may consider any other matter relating to 
the Fund's operation referred to it by its chairman, either 
on his own initiative or at the request of a representative 
of a Member State. 
Article 33 (former Article 18) 
The necessary measures for implementing this Regulation 
shall be adopted in accordance with the procedure laid 
down in Article 31. 
Article 34 (former Article 19) 
1. Member States shall take the measures necessary to 
indicate separately and in a manner reflecting the special 
characteristics of national budget systems the amounts 
received from the Fund. 
2. At the request of the Commission, Member States 
shall provide it with information on the allocation of the 
amounts received from the Fund. 
Article 35 (former Article 20) 
Assistance from the Fund shall not distort the conditions 
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 Regulation shall not prejudice 
application of Articles 92, 93 and 94 of the Treaty, 
particularly as regards establishing and modifying the 
areas covered by a regional aid scheme and referred to in 
Article 2 (3) [...]. 
Article 36 (former Article 21) 
1. Before 1 October each year, the Commission shall 
present to the Council, to the Parliament and to the 
Economic and Social Committee a report on the 
implementation of this Regulation during the preceding 
year. 
2. The report shall also deal with the financial 
management of the Fund and discuss the Commission's 
conclusions based on the checks carried out in respect of 
Fund operations. 
Article 37 (former Article 22) 
On a proposal from the Commission, the Council shall 
re-examine this Regulation within three years from 
1 January 1982. 
Article 38 (former Article 23) 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities.