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COM ( 83) 134 
 
 
 
Vol. 1983/0 039 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C O M (83) 134 final
Brussels, 29th M arch 1983
G R E E C E  IN  T H E  C O M M U N I T Y  
- A S S E S S M E N T  A N D  P R O P O S A L S  -
(Commission communication to the Council 
and the European Parliament)
COM(83) 134 final

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C O N C L U S IO N S
115. The Commission, in proposing the actions which the Community has 
already taken, in making an ambitious and comprehensive proposal for 
Greek development in the.IMP for Greece and in making the additional 
proposals for Community action outlined in this paper has Sought to 
devise a comprehensive and practical response to the concerns outlined 
in the Greek M em orandum .
116. This set of actions and proposals has two central objectives:
- helping the Government and people of Greece to achieve a 
far-reaching transformation of Greek economic structures, and
- accelerating the integration of Greece within the Community.
117. T he success of this ambitious enterprise will require determined 
commitment to both objectives on the part of all the Community 
institutions and also on the part of Greece. The Commission believes 
that the capacity of the Community to assist the Greek authorities
in their efforts to overcome the structural problems of the Greek 
economy - problems which were highlighted in the Greek M em orandum  - 
is considerable. The Commission is equally convinced that that capacity 
can be mobilized only to the extent that a corresponding determination 
on the part of Greece is applied to the major task of securing the 
full participation of Greece in all aspects of the Community system.
118. T he Commission believes that all parties concerned will succeed 
in achieving this objective which is of prime importance not alone to 
Greece but to the Community as a whole.

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Envi ronment 
Assessment
109. In the M em orandum, the Greek Government drew the attention 
of the Community institutions to the problems of the environment 
and the quality of life in Athens and Thessaloniki and in particular 
to the dramatic situation in the capital due to pollution, traffic 
congestion, total lack of town planning, the absence of an efficient 
social infrastructure, and the over-concentration of industry.
110. T he Commission agrees with this lis t, but does not regard it
as exhaustive. The problems created by the state of the environment 
in Greece are wider: there are other aspects, which either impede
the pursuit of economic activities such as tourism or fishing, or 
reduce the quality of life in a broad sense (pollution of the gulfs, 
for instance).
111. M ore generally, physical planning and integrated management 
would seem to be m ade more difficult by the country's configuration. 
Greece consists almost entirely of sensitive areas (mountainous, 
coastal and estuarine) that require a greater degree of environmental 
protection.
112. T o  take full account of this situation, all the feasibility 
studies undertaken with Community backing to promote Greece's 
economic and social development should, as explicitly stipulated 
in the Greek M emorandum, include an environment impact assessment 
of the projects planned.

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113. Given the enormity of the pollution and congestion problem of Athens, 
a solution will only be found through a long-term action involving a 
coordinated approach to its m any dimensions. The Commission is already 
helping to develop a basis for such an approach through the financing
of feasability studies and pilot experiments in Athens. The Commission 
will continue to cooperate with the Greek authorities in the search for a 
comprehensive action programme. W h en  this policy has been established, 
the Commission will furthermore present proposals for appropriate Community 
participation in its implementation.
114. The Commission will contribute to the cost of preparatory studies 
with an eye to :
- cleaning up gulfs which are so polluted that economic activity is suffering;
- introducing a system for monitoring the state of the Greek environment, 
the special features of which were discussed above;
- formulating multi-disciplinary plans for managing sensitive areas of 
national or Community interest based on practical Commission experience 
in this field;
- devising specific programmes for preserving or restoring the quality of 
the biotypes needed to ensure the survival of species threatened with 
extinction, som e of which no w  exist virtually nowhere except in Greece 
(for example, m onk seals).

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Assessment
104. In its communication of 14 June 1982 the Commission, referring tp 
problems of transport in the Greek economy, stated:
"The Commission recognizes that there is a special problem here,which it 
is willing to examine with the Greek authorities". In subsequent 
discussions the Greek authorities have outlined a number of concerns, 
for example:
- that the unfavourable balance of agricultural trade which arose since 
accession is substantially due to transport cost factors;
- that the size and geographical distribution of Greek farms especially in 
the 170 inhabited islands of Greece and in Greek ;  mountainous regions 
add considerably to certain basic costs;
- that the geographical situation of Greece has, following accession, 
added considerably to the cost of the import of calves for fattening;
- that a Community subsidy ought to be granted in respect of the transport 
of sheep and goats to and from seasonal pasture with a view to 
maintaining the level of population in the regions concerned.
105. Clearly the difficult transport situation is due to Greece's large
number of scattered islands: this is a problem which the Community has
not had to face before on such a scale.
106. The Commission accepts that Greece encounters particular problems in 
relation to these and several other aspects of transport which were 
detailed in the course of recent exchanges with the Greek authorities.
The Commission moreover accepts that the Greek transport infrastructure 
is very w eak in most sectors. The Commission prefers to intervene in
the structural areas and believes moreover that systems of subventions to 
transport are contrary to the spirit of the Community system and juridically 
problematic.Transport costs

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Action
107. Certain concrete demands presented by the Greek 
authorities arising from the cost of transport in 
the Greek agricultural sector because of the geographic 
position and configuration of Greece require Community 
action pending the development .of transport infrastructure. 
The Commission undertakes to propose a number of actions 
for a limited period aimed at reducing the effects on 
productivity of these specific Greek circumstances.
Other action on transport
108. In addition, the Commission is considering the possibility of  
providing:
- technical assistance to help the Greek Government speed up  
the proper implementation of Community law in areas such as  
the application of Community instruments regarding access to  
the occupation of road transport operator, and
_ assistance to the Greek authorities to improve management  
and technical cooperation between the Greek railways and  
the other railway undertakings in the Community·

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Transport
I_nfr£St_ructure£
A s s e s s m e n t ·
98. T h e inadequacies of Greece's inland !
transport system is Beriously handicapping the development of the  
national economy. The improvement of the infrastructure calls for  
measures which will remedy the shortcomings of the present national 
distribution network and reflect the obvious need to  
decompartmentalize the Greek economy» so it may gain better outlets  
in Community markets.
99. The resources to be granted to the construction of adequate links  
in the context of the improvement programmes in the Community or  
in transit countries such as Yugoslavia or Austria - will be  
concentrated on three a x e · :
(i) the South-North road link from Kalamata to the Yugoslav
border via Athens: completion of the section to the north of
Athens and modernization of the southern section, especially  
between Korinthos and Tripolis;
(ii) the Adriatic axis: the Volos - Igoumenitsa link;
(iii) improvement of the North-South rail axis, mainly the section  
from Larisa to Thessaloniki.
100. The Greek authorities regard the development of the South-North road  
axis as a priority. By adopting, in December 1982"!j a Regulation on  
the granting of limited support in the field of transport, the  
Council recognized the benefit which would accrue to the Community  
from accelerating the building programme for this link. Under this  
Regulation, it is planned to make an initial Community contribution  
to the cost of building part of this axis.
101. The acceptance of the financial hypotheses put forward by the
Commission in itB communication to the Council on a Transport
2Infrastructure Experimental Programme might mean only a limited  
amount of further support for the improvement of this suds.
102. In the circumstances, a specific Community financial measure is  
required with a view to accelerating work on those projects which  
are of Community interest.
Council Regulation (EEC) No 3600/82 of 30 December 1982 on the granting of  
limited support in the field of transport infrastructure, 0J L 376 of  
231 December 1982.
C0M(82)828 final of 10 December 1982.

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Action
For 1984 and 1985 the Commission will be proposing substantial
aid for infrastructure projects of Community interest in Greece;
this w ill  be in addition to the overall amount for implementing the
1experimental transport infrastructure project .
C0M(82)828 final of 10 December 1982.

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Fisheries
Assessment
93. Greek fisheries.are characterized by a L ong coastline, a narrow continental 
shelf, the low yield of Mediterranean waters, and under-exploitation
of pelagic fish. Consequently, there is a large variety of gear  
used by a fleet of some 11 000 commercial fishing vessels. Some  
74# of the deep-water fleet is more than 20 years old and much must  
be done to renew and modernize it, for frequently it is without the  
necessary minimum in the way of navigational aids and fishing gear.
P o r t  i n s t a l l a t i o n s  f o r  t h e  f l e e t  a r e  i n a d e q u a t e  ( 7  b a d l y  e q u i p p e d  
f i s h i n g  p o r t s )  a n d  t h e r e  a r e  a l m o s t  n o  p u b l i c  o r  p r i v a t e  s h o r e  
i n s t a l l a t i o n s  f o r  p r o c e s s i n g  a n d  m a r k e t i n g  f i s h e r y  p r o d u c t s .  T h e r e  
a r e  m a j o r  s h o r t e o m i n g s  i n  r e s e a r c h  s t r u c t u r e s  i n  s u c h  f i e l d s  a s  t h e  
b i o l o g y ,  t e c h n o l o g y  a n d  e c o n o m y  o f  f i s h e r i e s  a n d  a q u a c u l t u r e  a n d  
t h e  p r o c e s s i n g  o f  p r o d u c t s ,  a n d  a l t h o u g h  G r e e c e ' s  c l i m a t e  a n d  i t s  
s e a s  w o u l d  f a v o u r  a  m a j o r  a n d  r a p i d  e x p a n s i o n  o f  m a r i c u l t u r e ,  t h e r e  
h a s  a s  y e t  b e e n  n o  s c i e n t i f i c a l l y  m o n i t o r e d  a c t i v i t y  i n  t h i s  s e o t o r .
94; The Greek requests are for Community financial aid in the following  
fields;
— p o r t  i n s t a l l a t i o n s  ( b u i l d i n g  a n d  m o d e r n i z i n g  f i s h i n g  p o r t s ,  
e s t a b l i s h i n g  s h e l t e r  a r e a s ,  a n d  s e t t i n g  u p  i n s t a l l a t i o n s  o n  
l a k e s ;
— a q u a c u l t u r e  ( d e v e l o p m e n t  o f  l a g o o n s ,  c o n s t r u c t i o n  o f  h a t c h e r i e s ) ;
— r e s t r u c t u r i n g  o f  t h e  f l e e t  ( m o d e r n i z a t i o n  o f  t h e  c o a s t a l  a n d  
s p o n g e - f i s h i n g  f l e e t ,  b u i l d i n g  o f  n e w  d e e p - w a t e r  v e s s e l s ) ;
— p r o c e s s i n g  a n d  m a r k e t i n g  ( b u i l d i n g  i d i o l e s a l e  m a r k e t s  a n d  s h e l l f i s h  
c l e a n i n g  c e n t r e s ,  gin a d v e r t i s i n g  c a m p a ig n  f o r  p e l a g i c  f i s h ,  
c r e a t i o n  o f  a  m i x e d  e c o n o m y , i n v e s t m e n t s  i n  t r a n s p o r t  a n d  c o l d  
s t o r a g e ) ;
— technical assistance (training assistance personnel, starting up  
assistance centres in ports, scholarships for specialist training  
of scientific staff from the Ministry);

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- research (building fishery research centres, with oceanographic research 
vessels, and financing joint research programmes);
- reducing pollution in 12 gulfs where m uch fishing is done.
95. The integrated Mediterranean programme meets all of these requests.
It also makes provision for increasing the funds available and reinforcing 
existing measures.
Action
96. In the framework of Council Regulation 31/83 concerning interim 
restructuring measures in the coastal fishing and aquaculture sectors,
Greece has so far benefited to a disproportionately limited degree.
The Commission is prepared to give priority to Greek demands in this area.
97. The Greek authorities have informed the Commission that they are 
seriously concerned that the terms of the Council Resolution of
25 January 1983 on the adaptation of capacities in the fishing sector
fail to take account of the fact that the types of vessels which have
proved to be the best suited to fishing conditions in Greek waters are
for the most part less than 18 metres long and the fact that the average
age of Greek fishing vessels is over 20 years. The Commission has
already indicated that it would consider the concern of the Greek authorities
as constructively as possible.

- 25 -
82. Better administrative preparation might admittedly have helped,  
but it would certainly not have been enough to avoid the  
consequences of an over—rapid dismantling of the previous  
national system, which was markedly centralized and dirigiste,  
and its replacement by the Community system based on the  
principle of free circulation.
83. Against this background, the incomes of m ost Greek 
producers have none the less developed favourably over the last  
few years, despite falls in income or stagnation in some sectors,  
particularly in marketing.
84. The aim of one of the missions was to finalize, together with the  
Greek authorities, the figures on the development of farm  
incomes in Greece. When the farm prices for 1982-83 were  
decided upon, the Council asked the Commission to make available,  
as soon as possible, its figures on farm incomes in Greece and,
in the light thereof, to put before the Council such specific  
proposals as were necessary for tackling with dispatch all  
problems that could be identified.
85. The examination of farm incomes in Greece shows an increase  
of 4*3% in real terms in 1981 and 5*8$ in 1 982* .
86. In its proposals on the fixing of prices for certain agricultural 
products and on certain related measures ( 1983/84) ,  the 
Commission included no special proposals for Greece.
87. No specific measure for this purpose seems necessary now either.  
The adjustment of the representative rate for the "green"  
drachma following Greece’s devaluation, together with the  
increase in common prices, should protect Greek producers from  
any fall in incomes in real terms in 1 983/84.  In the longer  
term, however, there is some reason for anxiety.
1
From 1974 to 1981, Greek producers' incomes increased by
^25% in real terms.
See C0M(82)650 final, Volume I, points 22, 67 and 68.

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88. After the accession of Greece the Commission attempted to extend 
the existing Mediterranean package to Greece. A  series of actions 
were decided by the Council in 1982. This work is to be completed now.
89. It is agreed between the Greek authorities and the Commission that 
the deficiencies in the Greek agricultural training service,, the system 
for the dissemination of information, the Greek agricultural research 
infrastructure and the machinery of quality control constitute elementary 
obstacles to basic development in the Greek agricultural sector.
90. The Greek authorities have in the M em orandum  context formulated
a large number of demands in the agricultural sector. The Commission is 
convinced that the integrated Mediterranean programme for Greece 
provides a positive and dynamic Community response to most of the 
specific problems of this sector (see section 33).
Action
91. A s  in the past the Commission will pay particular attention to 
Greece's problems in the context of the next review of structures policy. 
A s an immediate step however it proposes to extend irrigation measures
to all rural areas of Greece - forestry and infrastructure measures 
already apply to certain parts of the country - until such time as the 
integrated Mediterranean programme for Greece, which will reinforce 
these measures, comes into force.
92. Given the insufficiencies in the Greek system of quality control 
which is a matter of concern both to the Commission and the Greek 
authorities, the Commission proposes exceptionally a measure aiming at 
the development of the means necessary for an increase in the number and 
rhythm of quality controls.
Regulation 1975/82; section 23.

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75. It will also propose that financial assistance be m ade available 
to improve facilities for the occupational and social rehabilitation 
of certain categories of handicapped persons.
76. Both of these actions, which would be limited to four years, 
would help Greece m ake better use of the Fund's resources.
77. A s regards priorities in relation to Fund assistance, the 
Commission is prepared
- to help with the gradual introduction of a pretraining provision;
- to encourage the training of instructors executives, vocational 
guidance counsellors and placement officers, and to finance studies 
aimed at developing vocational training provision;
- to fa cilitate the transition from school to working life;
- to help with the training of textile workers for new  technologies.
- to examine favourably the possibility of providing a programme of 
assistance to Greek emigrants on their return to Greece.
Agriculture
Assessment
78. Difficulties have arisen on certain markets since Greece joined 
the Community. A  number of factors have combined to bring this about, 
som e of which cannot be directly attributed to accession as such but 
rather to Greece's general economic situation.

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7 9 ·  T h e  s t e e p  r i s e  i n  p r o d u c e r  p r i c e s  i n  G r e e c e  i n  t h e  p e r i o d  " b e f o r e
a c c e s s i o n  c e r t a i n l y  h e l p e d  t o  i n c r e a s e  t h e  in c o m e s  o f  G r e e k  f a n n e r s  
a n d  a l l o w e d  o u t p u t  o f  c e r t a i n  ( e s s e n t i a l l y  M e d i t e r r a n e a n )  p r o d u c t s  
t o  e x p a n d ,  b u t  t h i s  p o l i c y  d e c i s i o n  -  s t i l l  t a k e n  a t  n a t i o n a l  l e v e l  
a n d ,  s i g n i f i c a n t l y ,  a f f e c t i n g  a  f a r m i n g  p o p u l a t i o n  a c c o u n t i n g  f o r  
a  t h i r d  o f  t h e  c o u n t r y ’ s  w o r k f o r c e  -  a l s o  i n v o l v e d  a  n u m b e r  o f  r i s k s .
8 0 .  A c c e s s i o n  h a s  d o n e  n o t h i n g  t o  r e v e r s e  t h e s e  t r e n d s  a n d  t h e  w e a k n e s s e s  
o f  c e r t a i n  m a r k e t s  h a v e  b e c o m e  m o r e  m a r k e d .  T o d a y  t h e r e  a r e  
g e n u i n e  d i f f i c u l t i e s  i n  m a r k e t i n g  G r e e k  p r o d u c t s  o n  b o t h  t h e  i n t e r n a l  
m a r k e t ,  b e c a u s e  o f  i n c r e a s e d  c o m p e t i t i o n  f r o m  i m p o r t s ,  a n d  o n  
f o r e i g n  m a r k e t s ,  b e c a u s e  o f  t h e  u p s e t t i n g  o f  t r a d e  p a t t e r n s ,  t h e  
d i s a p p e a r a n c e  o f  c e r t a i n  i n c e n t i v e s  o r  g u a r a n t e e s  e x i s t i n g  u n d e r  t h e  
p r e v i o u s  s y s t e m  a n d  a l s o ,  n o  d o u b t ,  p r o b l e m s  o f  q u a l i t y  o f  c e r t a i n  
p r o d u c t s .
8 1 .  T h e  r e s u l t  h a s  b e e n  a  g r o w i n g  d i s e q u i l i b r i u m  i n  G r e e c e ’ s  a g r i c u l t u r a l  
b a l a n c e  o f  t r a d e ? · a n d ,  i n  s o m e  c a s e s ,  a  f a l l  i n  t h e  in c o m e s  o f  
p r o d u c e r s  o n  t h e  G r e e k  m a r k e t  a n d  a b r o a d .  T h i s  s i t u a t i o n  h a s  i n  
m a n y  i n s t a n c e s  l e d  t h e  G r e e k  a u t h o r i t i e s  t o  a d o p t  m e a s u r e s  r e s t r i c t i n g  
t r a d e ,  i n  c o n t r a v e n t i o n  o f  C o m m u n it y  r u l e s ,  a m o u n t i n g  i n d e e d  t o  
g e n e r a l  c o n t r o l  o f  i m p o r t s ,  e s p e c i a l l y  i m p o r t s  o f  l i v e s t o c k  p r o d u c t s .
In 1980, surplus of 3 28l million drachmas
In 1981, deficit of 4 581 million drachmas

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Employment and Social Policy
67. The Greek Government's objectives in this field are decentralization, 
keeping rural populations in their ow n regions and reducing the
level of unemployment, which is giving cause for concern. The Government 
stressed that a restructuring of the currently inadequate vocational 
training system w as a prerequisite of any improvement in the employment 
outlook.
68. The Greek authorities highlighted particular problems relating 
to the link between vocational training and the labour market, the 
availability of instructors, the rehabilitation of the disabled
and the need for training infrastructure and suitable training fa c ilitie s . 
The Commission has assigned a group of experts the task of investigating 
the scope for modernizing structures for the rehabilitation of the disabled 
and providing more E S F  assistance for the handicapped.
69. W ith regard to infrastructures, the Greek authorities have indicated 
that most training centres are housed in rented premises and cannot 
therefore be easily adapted to training requirements, particularly as 
regards equipment. Furthermore, training centres tailored to the special 
needs of the disabled are few and far between in Greece. Similarly, 
equipment in most of the training centres is out-of-date. With a view
to improving training infrastructure, the Greek Government plans to 
build a number of training centres over the period 1983-85, the cost of 
which will amount to about 120 million E C U .
70. Since 1981, the European Social Fund has granted assistance towards 
the bulk of training activities in Greece, with the exception of 
apprenticeships and advanced technical training, which are not considered 
eligible. Commitments amounted to 30.57 million E C U  in 1981 and
60.42 million E C U  in 1982. These amounts correspond to 3 %  and 4 %  
respectively of the total E S F  budget for those years. Although 
information is not yet available on the actual rate of u tilizatio n , 
refunds m ade up to the end of 1982 on account of non-implementation of 
all or part of the training programmes approved by the Fund for 1981-82 
amount to 10.1 million E C U , i.e . 11.2% of the amount approved. T he 
Greek authorities forecast that applications for assistance in 1983 
will amount of 156 million E C U  or 4.2% of the total amount forecast by 
all M em ber S tates’.
71. The Greek authorities have requested Fund assistance for a series 
of priority measures required to improve the existing vocational 
training system.
72. The Greek authorities have also asked for:
- an increase in the rate of intervention from 5 5 %  to 6 5 %  for 
individual vocational training programmes throughout Greece;
These figures give no indication regarding the percentage of the
Fund's resources to be allocated to operations in Greece in 1983.

- 22 -
- an increase in the rate of intervention from 55 to 8 5 %  where training 
schemes form part of integrated development programmes;
- part-funding of courses in centres for advanced technical and vocational 
training (K A T E E ) and technical and vocational schools (lower and upper 
secondary) and of the apprenticeship courses run by the o A E D  (Employment 
and M anpower Office) with a rate of intervention of 75% ;
- financing of social infrastructure such as hospitals, schools, cultural 
centres and nursery schools and the construction of housing for manual 
workers.
73. A s regards Fund assistance:
- the Commission proposes, as part of the integrated Mediterranean programme 
for Greece, that a Community contribution of 7 5 %  be granted towards 
certain additional vocational training activ ities;
- both the K A T E E s and the apprenticeship system are shortly to be the 
subject of a reform which m ay  fa c ilita te  the provision of Fund assistance 
on certain conditions;
- the Commission is prepared, again as part of the integrated Mediterranean 
programme for Greece, to help improve the viability of rural areas by 
contributing 7 5 %  of the cost of building training centres. But urban 
areas, notably Athens and Thessaloniki, also suffer from a shortage of 
vocational triafnfng faci litie s . Assistance must therefore be provided for 
the construction of centres in these areas too.
- there is a genuine need in Greece to establish an adequate system of medical 
treatment and occupational and social rehabilitation for certain categories 
of handicapped persons. This w i ll entail the construction and adaptation
of buildings and facilties and the introduction of modern treatment on 
an adequate scale. In addition to financial aid, the Community might 
also assist by providing the services of experts.
Action
74. In the context of the campaign against unemployment in general and 
youth unemployment in particular, the Commission is envisaging action to 
modernize Greece's vocational training system. T o this end it will propose 
that financial assistance be m ade available for the construction and fitting-out 
of vocational training centres in urban areas.

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Research and Technology
58. The broad Lines of the Greek science policy amount basically  
to:
(a) Concentration on a relatively small number of priority sectors,  
ranked as follows:
- information technologies,
- biotechnology,
•  - the electronic properties of matter, in particular their
application to photovoltaic cells and microelectronics,
- food production, in particular aquaculture.
Cb) Development of priority sectors through the following measures:
- enlisting the cooperation of Greek top-level scientists,
mainly by encouraging the repatriation of those currently  
working in the United States: the Greek Government has already
started and will continue taking the necessary steps;
- setting up research centres with equipment of a sufficiently  
high standard to allow top quality work; the Greek Government  
hopes to obtain Community aid in support of this activity;
- submitting existing research projects for inclusion (on a  
strictly competitive basis) in Community schemes.
59. The Greek authorities have submitted a biotechnology project.
This, and other actions planned in the context of Greek policy,  
seem consistent with the Community's scientific research strategy.  
Community aid could be made available for specific research contracts  
(maximum Community contribution 50%) under Community research programmes.
60. A key factor in the Greek strategy, which may largely determine  
the success or failure of its science policy, is the need for equipment.
A particular effort by Greete could receive aid from Community financial  
instruments.
61. Action by the Community to provide support will be made, in  
accordance with the Community objectives, on the basis of applications  
submitted by the Greek authorities.

-  20  -
Energy
62. The development of the Greek energy sector will be pursued vigorously  
within the framework of the 1983/87 Five-Year Plan. The major thrust  
will be the identification and maximum utilization of indigenous energy  
sources, and reduced dependence on imported oil. The energy sector  
investment programme, if fully implemented, would require an outlay of  
the order of 200 billion drachmas over the five-year period.
63. All the projects submitted tally with the guide Lines and objectives of  
the Community's energy strategy. Some are already being part-financed
by Community instruments. The Greek authorities should therefore be  
encouraged to file the necessary applications.
64. Two programmes have also been submitted, one dealing with oil and gas  
exploration, the other with the non-electric utilization of lignite,  
notably gasification.
65. These two programmes come - in part at least - under arrangements for  
Community financial support, either as technological development, research  
or demonstration projects.
6 6.  The integrated Mediterranean programme for Greece includes a series
of projects in the field of renewable sources of energy: hydro-electric,
wind, solar energy, and biomass.

- 17 -
(a) a number of major industrial projects;
(b) a biotechnology programme;
(c) major infrastructure projects (roads, railways, drainage of  
the Plain of Attica, sewerage systems and waste treatment  
plants in Thessaloniki);
(d) a comprehensive programme for draining and irrigating  
agricultural land;
(e) in the energy sector, a series of investment projects in  
electricity generation, an oil and natural gas exploration  
programme, a programme for utilizing lignite and peat  
(gasification) and the modernization of an oil refinery;
(f) a national programme to promote the development of SMEs;
(g) social measures and vocational training;
(h) general plans for certain social infrastructure projects.
53. A very large proportion of these aid requests fall within  
the normal areas of Community assistance. Others fall within the  
ambit of the Mediterranean programmes. Many appear to be consistent  
with the objectives of Community policies. The Commission can of  
course only define its position on the basis of formal applications  
submitted to the financial instruments concerned.
54. In addition, Greece has requested that feasibility studies  
for several integrated development programmes in certain areas be  
financed by the Community.
55. Together with these desiderata, the Greek authorities have  
made in the Memorandum a number of general requests relating to  
certain financial instruments, including a larger ERDF quota for  
Greece, revision of the eligibility criteria and higher rates of  
Community assistance. To be borne in mind here are the positions  
adopted by the Commission in its Mediterranean programme proposals  
for Greece and as regards the reform of the Funds now in progress.

- 18 -
Action
56. The Commission will give sympathetic consideration to any  
applications formally submitted by the Greek authorities, bearing  
in mind the criteria applicable to aid from the various financial  
instruments and to the different Community policies.
57. Furthermore, for major projects which are ineligible for aid  
under the Mediterranean programmes or for other special aids  
mentioned in this communication, the Commission will consider the  
possibility of special measures to supplement the aid the Community  
instruments can grant. If necessary, it will put proposals to the  
Council for special measures which would apply for a maximum of  
four years.

THE PROPOSALS
47. It is proposed that some specific actions should be taken to help the  
Greek authorities to launch their five-year development programme and
in certain cases to meet specifc demands outlined in the Memorandum which  
in the judgment of the Commission require action but which do not arise  
in the context of the Mediterranean programmes.
48. The Commission believes that several of the problems encountered by  
Greece are deep-rooted and that it will be necessary to pay particular  
attention to them for some time to come.

-16 -
Five-Year Plan - Major projects
1Assessment
49. During the period of the missions the Greek Government was engaged in  
preparing a Five-Year-Plan for the economic and social development of  
Greece. The Commission was informed of the overall targets of the Greek  
Government. Some other aspects of Greek Government thinking in the  
framework of the Plan were discussed in separate missions.
50. The Five-Year-Plan had not been finalized by the time the missions came
to an end. It is understood that the first section of the Plan, a  
statement of general objectives, will be submitted to the Greek'National  
Assembly in the very near future. Detailed plans for the various sectors  
will follow later: the Commission has been informed that there will be
contact between the Greek authorities and the Commission in relation to  
these sectoral programmes.
51. The Commission reaffirms the crucial importance of contacts between  
the Commission and the Greek Government to ensure that Community action  
is in harmony with the economic policy pursued by Greece. In particular,  
improved competitiveness should facilitate the gradual integration of  
Greek industry into the Community economy, of which it is an integral part,  
and enable it to exploit the Community dimension to the full.
52. As part of the Five-Year Plan, the Greek authorities propose to
carry out a number of investment projects for which the Community financial  
assistance is sought. These are:
The assessment of the situation is based on the reports of the missions  
of the Commission to Athens and other discussions with the Greek  
authorities in the context of the Memorandum.

- 13 -
Implementation of Community legislation
41. The Commission is working with the Greek authorities to find  
satisfactory solutions to problems associated with the application  
of Community legislation in Greece.
42. The problems are twofold: they involve (a) the adaptation
of national legislation to bring it into line with Community provisions,  
notably those which are directly applicable, and (b) correct  
transposition of Community legislation into Greece's legal order.
43. The Commission is aware that compliance with the obligations  
flowing from Community membership is creating particular problems  
in certain areas and feels that a search - by both sides - for a  
solution to these problems is not only a duty but also a key element  
in the process of integrating Greece into the Community. With  
particular reference to taxation, the Commission is planning to  
produce a fixed timetable for bringing the Greek system into line  
with Community rules as soon as possible. This timetable will provide  
a solid basis for an orderly alignment of the Greek and Community  
systems and will take due account of Greece's economic problems
and the practical difficulties inherent in a major reform of its  
tax system.
44. Lastly, in the field of competition, the Commission has followed  
up its comments in its original communication (see section 15) by  
discussions with the Greek authorities on the application of the  
competition rules, particularly those applicable in the field of state  
aids. It can be confirmed that flexibility exists within the existing  
framework both of the Treaty and the policy decisions of the Commission  
based thereon.
o
o o

- 14 -
..The assessment of the missions was that both at the Level of Government  
and Civil Service a serious attempt is being made to face the difficult  
challenge for a new Member State of analysing Community issues and  
coordinating the positions and actions of the Government. Not surpris­
ingly, despite this considerable effort, a good deal of work remains to  
be done to rationalize fully the inter-Ministerial coordination in order  
to secure for the benefit of Greece and the Community the fullest possible  
participation by Greece in the Community system.
The Commission welcomes the efforts of the Greek Government aimed  
at modernizing the Greek administration and at promoting the qualifi­
cation and training of civil servants, and in particular the Govern­
ment's intention to set up a National Administration School. The  
Commission will propose a specific Community contribution to this  
institution relating to the administration of Community policies in  
Greece,,

THE PROPOSALS THE COMMISSION WILL BE MAKING
36. This report was preceded by a considerable effort by the Commission to  
familiarize itself with the problems facing Greece.
THE MISSIONS TO GREECE
37. In July 1982, the Greek Government and the Commission agreed upon a series  
of missions at service level in view of an in-depth examination of all  
aspects of the questions raised in the Memorandum in the framework of the  
approach outlined in the communication of the Commission to the Council  
of 17 June, 1982 and with a view to identifying a range of practical  
measures to be taken in Greece. In addition, the Commission wished to  
improve the dialogue on many issues of common interest between the  
Commission and the Athens authorities, thus developing Greek participation  
in the Community system. In particular the Commission wished to provide  
practical assistance in certain cases to those in the Greek public  
administration who deal with Community issues.
38. These missions , taken together, constitute an unprecedented effort
by the Commission to intensify its contact with a new Member State.
The experience proved to be of significant benefit to both sides. The  
Commission services for their part developed a more profound sense of  
the realities of Greek problems. On the other hand the Greek authorities  
derived a number of concrete benefits from the exercise, e.g. as a result  
of the missions the number of Greek applications to the Social  
Fund has increased, applications for loans under the New Community  
Instrument have begun to flow and it proved possible through the process  
of dialogue to discuss in depth for the first time and in some cases  
eliminate a number of suspected infringements by Greece.
39. The missions took place between September 1982 and February 1983. They 
covered the following sectors :  taxation, agriculture, fisheries, social  
Fund, competition rules, implementation of Community legislation, transport  
Community participation in major projects under Greece's  
five-year plan (including projects in the field of industry  
and energy), research and technology, environment.

-  12  -
40. In effect these special missions covered aspects of most of the  
issues involved in the participation of Greece in the Community system  
except the external dimensions of Community policy (which of course were  
not mentioned in the Memorandum). As such they provided an important  
opportunity for the Commission to deepen its assessment of the situation  
in Greece as it is affected by the relatively recent experience of  
membership, with a view to preparing this communication and discussing  
the implementation of Community legislation with the Greek authorities.
o
oo

- 9 -
Olive oil sector: programmes for the conversion or renovation
of olive groves.
Standardization, rationalization and improvement of quality of  
fruit and vegetable sectors.
Programmes to improve cattle farming including the development  
of fodder and protein crops as well as genetic improvement schemes  
and aids for improving livestock housing.
A series of programmes to improve overall productivity and incomes  
in the fisheries' sector: the development of lagoons, and the
establishment and modernizing of fish farms, the construction  
of public and semi-public hatcheries and the restructuring of 
the Greek deep sea fishing fleet and the development of ports  
infrastructure.
Aids for processing and marketing activities in both agriculture  
and fisheries: with new Community aid for producer groups.
A series of actions to develop small business and craft industries:  
market analysis services, additional investment aid, aid to
improve management and organization, access to new technologies  
and products, improved access to risk capital, measures to boost
exports to non-EEC Mediterranean countries, information aids to  
promote enterprise.
Programmes to encourage business to relocate outside Athens:  
aid for dismantling, transferring and modifying equipment; aid  
for the construction and modernization of housing to accommodate  
staff accompanying firms leaving Athens.
Rural tourism: construction and conversion of small hotels and
the development of rural guest accommodation and camp and caravan  
sites; development of common services or bodies responsible for  
promoting and advertizing, local development of transport facilities,  
restoration and protection of small architectural features of  
local interest.
Development of industrial zones.

-  10  -
- Development of the communications infrastructure between certain
towns and Greece's main transport network: road, telecommunications,
data transmission, water and energy networks, data processing
and telecommunications centres.
- Building and major equipment of higher institutes for technical  
education in industrial, agricultural or service sectors.
- Measures to improve the viability of rural areas: construction
and equipment of small medical centres and vocational training,  
advisory and technical assistance centres; improvement of road  
networks between rural areas and towns.
- Community aid for the training and recruitment of additional  
agricultural advisors and the development of the agricultural  
advisory services; launching of a technical assistance service  
in the fisheries sector.
- An increase in Community assistance for training middle management,  
for development training and for multi-activity training.
- Development of major research programmes for agriculture, fisheries  
and industry, as well as for environment and human health  
protection.
Solidarity measures
34. It is worth remembering here that solidarity measures are to  
be taken to assist the less-prosperous countries (Greece, Ireland  
and Italy) following the agreement of 26 October 1982 on financial  
compensation to the United Kingdom and Germany.
o
o o
35. The Community's response to date has been far from negligible,  
the IMPS in particular providing a specific response to certain  
Greek demands. Others, however, have still to be met.

- 7 -
26. The Commission proposes that in the period 1985 - 1991
2 542 MECU should be invested by the Community in Greece as follows:  
agriculture 1 235 MECU, forestry 120 MECU, fishing 139 MECU and  
general economic development 1 048 MECU.
27. The integrated Mediterranean programme (IMP) for Greece responds  
to demands outlined either in the Greek Memorandum itself or in
the discussions between the Commission and the Greek authorities  
in the context of the Greek Memorandum both at general and sectoral  
levels. The following paragraphs briefly summarise the outstanding  
instances at both levels; they do not constitute a summary of the  
entire IMP for Greece.
General priorities of the Greek Memorandum to which the IMP for  
Greece responds directly
28. The Greek authorities requested a revision of the criteria
of the Community funds so that resources could be used so as to  
correspond to the particular features of the social, economic and  
administrative situation in Greece: the IMP for Greece is a deliberate
attempt on an ambitious scale to apply precisely these criteria
in an integrated effort involving Community and Greek national,  
regional and local resources.

-  8 -
29. The Greek Memorandum requested that there should be an increase
in the resources of the funds: the IMP for Greece as proposed by
the Commission would involve a highly significant increase.
30. The Greek authorities requested that the activities of the
funds as applied to Greece should be coordinated: the efforts to
coordinate all actions involving all relevant Greek and Community  
policies is the distinctive feature of the IMP approach.
31. The Greek authorities requested a higher Community participation  
in the financing of projects in Greece (up to 75% in certain regions):  
the rates of the Community's contribution to the implementation
of the proposed IMPs are differentiated so as to take account of
the relative socio-economic situation. For measures financed entirely
out of public funds (infrastructures), socio-structural measures
and labour market and vocational training measures, the proposed
rate of intervention is 75% for Greece (65% for Italy, 50% for France).
32. The Greek authorities also requested that there should be
Community expenditure on social infrastructure projects: such an
initiative is envisaged in several instances in the IMP for Greece.
Sectoral proposals of the IMP for Greece which respond directly  
to sectoral priorities in the Memorandum
33. The following actions are envisaged:
- Major irrigation and drainage schemes including the requisite  
public works (dams, reservoirs etc.).
- New programmes for the development of sheep and goat farming.
- Forestry improvement and expansion.
- Restructuring and relocation programmes for wine-growing and where  
necessary for conversion from vines to other crops.

- 5 -
ACTIONS DECIDED OR PROPOSED
22. The Community has already responded in several respects to
demands formulated in the Greek Memorandum:
(a) various decisions affecting agriculture, transport infrastructures  
and the environment;
(b) the integrated Mediterranean programme for Greece;
(c) solidarity measures.
Actions already decided
23. The following decisions have already been taken:
- the decisions of 18 May 1982 on common prices and related measures  
for 1982/83 provided a response in 1982 to the question of support  
prices for Greek farmers (substantial rise in prices in ECU,  
devaluation of the representative rate for the drachma, accelerated  
alignment of the prices of certain agricultural products on the  
common prices, increases above the Community average for certain  
Mediterranean products, etc.); subsequent decisions on the timetable  
for devaluation of the green drachma in 1983 constitute the response  
on this point for the situation obtaining in 1983;
- more favourable conditions and rates of refund applied in respect  
of certain Mediterranean regions were extended to similar areas
in Greece by the Council in November 1982*;
- measures in force in favour of other Mediterranean regions in  
the fields of infrastructure, irrigation and forestry were extended  
to a part of Greece by a Council regulation adopted in July 1982  
concerning the acceleration of agricultural development in certain  
regions in Greece ;
*Regulation 3164/82, OJ L 332 of 27.11.1982;  
Directive 82/786, OJ L 327 of 24.11.1982.
★Regulation 1975/82, OJ L 214 of 22.7.1982.

-  6 -
- the Council regulation concerning the improvement and production  
of citrus in the Community extends the existing scheme to Greek
ikvarieties ;
- a Community contribution to an important road infrastructure project  
in Greece ;
- the Commission's contribution to the financing of feasibility  
studies and pilot experiments in Athens with a view to protecting  
the environment.
The integrated Mediterranean programme for Greece
24. During the period of the missions, the Commission was devoting
a major effort to devising its proposals on integrated Mediterranean
programmes. The Commission recently adopted proposals for integrated
***programmes for Greece, Italy and France
25. In the case of Greece, it is envisaged that the Community's  
action will be more extensive and more intensive than in the rest
of the Mediterranean area of the Community. In devising its programme  
for Greece, the Commission attempted as far as possible to take  
account of the specificities of the Greek situation as outlined  
in the Greek Memorandum. The Commission's proposals for Greece  
in this policy area are far-reaching and ambitious and, in effect,  
constitute a response on the part of the Commission to many of the  
demands outlined in the Memorandum.
Regulation 1204/82, OJ L 140 of 20.5.1982.
1Regulation 3600/82, 0J L 376 of 31.12.1982.
'  - f a
C0M(82)24 final.

THE COMMISSION'S COMMUNICATION OF 14 JUNE 1982
7. In its communication of 14 June 1982 the Commission gave its initial
- largely open - response to the Greek Government's requests. The main  
elements of the communication are summed up below.
8.  The Commission is in general agreement with the description of the  
economic situation given in the Memorandum and endorses the view that  
determined action is called for to deal with it.
9. The specific nature of the Community Mediterranean questions is recognized  
by the Community, notably in connection with Work on the 30 May <1930 mandate 
and in the framework of ongoing preparations for enlargement.
10. There are underdeveloped aspects of the Greek economy for which the  
Community cannot be held respnsible.
11. All member countries have, to different degrees, to cope with the  
difficulties of the economic crisis.
12. The Community cannot be solely responsible for the development of a
member country: its role is to back up national efforts.
13. For each of the demands presented in the Greek Memorandum, the  
Commission stated
- whether the demands are already covered by existing Community provisions,
- whether proposals already made, with adjustment where needed, cover  
Greek demands,
- whether the measures in question are already contained in proposals  
envisaged by the Commission, and in particular in the Mediterranean  
programmes.
14. The Community can contribute to the development of Greece's economy  
and the solution of the country's specific problems, not by derogating  
from the Treaties but through the implementation of its policies. The  
Commission noted that most of the Greek demands come within the.scope of  
the Community's normal decision-making processes and that Protocol 7
to the Act of Accession lays down the principle that the Institutions are  
to do all they can within the framework of the existing instrument to  
provide for Greece's special situation.

- 4 -
15. In regard to State aids, the Commission recalled that, although the  
principle of a derogation is excluded by the Treaties, the rules on  
competition allow the Commission to take Greek particularities into account  
when considering aid projects, in accordance with Protocol 7 to the  
Act of Accession.
16. In considering what arrangements could be made, account must be taken  
of the Community's policy constraints, including budgetary constraints.
17. Some of the Greek demands, even where they have specifically Greek  
connotations, come within the scope of the Community's general concern  
regarding its Mediterranean regions. Both for the substance of the  
matter and the procedure to be followed, solutions should be sought for  
this part of the Greek demands in the framework of the Mediterranean  
programmes.
18. The Community's budget interventions should be regarded as backing up  
policies and not as an end in themselves. The Commission's general approach  
could therefore be to prepare budgetary action only where such action will  
assist a Community policy.
19. The extent to which the Community can help a country is dependent on  
the compatibility of the policies pursued by the recipient country with  
Community action. The Commission stated that for this reason contacts  
between the Greek Government and the Commission during the preparation  
of the Greek Government's five-year plan for economic development and  
restructuring of the Greek economy were of fundamental importance to  
ensure that Community action and Greece's economic policy are in harmony.
20. However great the political resolve may be to contribute to solving  
the real problems of one of the Community's Member States, present cons­
traints cannot be disregarded. Their existence does not exclude either  
imagination in the search for a solution, or determination in its application,  
on the contrary.
21. The Commission came to the conclusion that, provided each made the  
necessary effort, a valid answer could be given to the questions posed  
by the Greek Government.

-  1 -
INTRODUCTION
1. On 19 March 1982, the Greek Government sent the Council of Ministers a  
Memorandum concerning Greece's position within the European Communities.
The President of the Commission also received a copy.
2. The European Council 0f 29/30 March 1982 took note of a declaration
by the Greek Prime Minister on the subject. It agreed that the Commission  
should study the Memorandum and report to the Council on it.
I
3. The Commission examined the Memorandum carefully and presented its  
conclusions to the Council in a communication of 14 June 1982.
4. The Council took note of the Commission's communication at its session  
of 20/21 June 1982. It was agreed that the Greek Government and the  
Commission would remain in contact in order to clarify the various aspects  
of this question as far as possible.
5. The present communication begins by reviewing the response already  
given by the Commission in its communication of 14 June 1982 and in its  
subsequent proposals to the Council and goes on to out line the main details  
of what the Commission feels is necessary to complete an appropriate reply  
to the memorandum.

-  2 -
RESPONSE TO DATE
6.  The Community's response to date comprises:
(a) the Commission's communication of 14 June 1982, and
(b) a number of proposals, some of which have already been adopted by  
the Counci l.

CONTENTS
Sections
Introduction 1 to 5
Response to date 6 to 35
The Commission's communication of 14 June 1982 7 to 21
Actions decided or proposed 22 to 34
Actions already decided 23
The integrated Mediterranean programme for Greece 24 to 33  
Solidarity measures 34
The proposals the Commission will be making 36 to 114
The missions to Greece 37 to 46
The proposals 47 to 114
The Five-year plan - major projects 49 to 57
Research and technology 58 to 61
Energy 62 to 66
Employment and social policy 67 to 77
Agriculture 78 to 92
Fisheries 93 to 97
Transport 98 to 108
Environment 109 to 114
Conclusions 115 to 118