16. 8. 88 Official Journal of the European Communities No C 214/65 
Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 1307/85 authorizing the 
Member States to grant a consumption aid for butter 
COM(88) 379 final 
(Submitted by the Commission on 7 July 1988) 
(88/C 214/15) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 43 thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Whereas the arrangement introduced by Council Regu­
lation (EEC) No 1307/85 0) expires at the end of the 
1987/1988 milk year; whereas termination of the aid 
carries the risk of a rise in consumer prices in certain 
Member States at a time when butter supplies continue to 
be in surplus; whereas, in order to prevent a drop in butter 
consumption following an abrupt rise in its price, the aid 
(!) OJ No L 137, 27. 5. 1985, p. 15. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 235 
thereof, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas, in accordance with Article 2 of the EEC Treaty, 
the Community has as its task inter alia to promote a 
harmonious development of economic activities and 
continuous and balanced expansion throughout the 
Community; 
(!) OJ No C 33, 11. 2. 1987, p. 5. arrangement introduced by Regulation (EEC) No 1307/85 
should be prolonged, 
HAS ADOPTED THIS REGULATION: 
Article 1 
In Article 1 of Regulation (EEC) No 1307/88 '1987/1988' is 
replaced by '1988/1989'. 
Article 2 
This Regulation shall enter into force at the beginning of 
the 1988/1989 milk year. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Whereas Article 130 of the Treaty provides for the 
Community to develop and pursue its actions leading to the 
strengthening of its economic and social cohesion, and in 
particular for it to aim at reducing disparities between the 
various regions and the backwardness of the least-favoured 
regions; 
Whereas the Commission has presented a communication 
on reform of the structural Funds [COM(87) 376 final]; 
Whereas the Council recently approved the main lines of 
the policy followed and the strategy in the action 
programme for small and medium-sized enterprises, which 
recognizes that the development of a stable and innovative 
small and medium-sized business sector is an essential 
element in the strengthening of the Community's economy 
and is of prime importance for the effective development of Amended proposal for a Council Decision concerning a Community measure for the creation and 
development of business and innovation centres and their network (J) 
COM(88) 396 final 
(Submitted by the Commission pursuant to Article 149(3) of the EEC Treaty on 7 July 1988) 
(88/C 214/16) 
No C 214/66 Official Journal of the European Communities 16. 8. 88 
industrial areas in decline or lagging behind and for the 
creation of additional jobs; 
Whereas it has been recognized that the accelerated 
development of small and medium-sized enterprises 
requires the combined and organized use of the factors 
contributing to business creation; 
Whereas, to that effect, one of the essential objectives of 
Community regional policy is to strengthen and exploit the 
regions' potential for internally generated development; 
whereas business and innovation centres are a major 
instrument for making optimum use of that potential in 
areas with an industrial basis; 
Whereas each business and innovation centre is a locally 
based organization with entrepreneurial management 
whose purpose is the deliberate creation of innovative new 
SMEs with growth potential and the modernization and 
strengthening of existing SMEs; 
Whereas the Treaty has not provided the necessary specific 
powers, 
HAS ADOPTED THIS DECISION: 
Article 1 
1. With a view to contributing to the strengthening of 
small and medium-sized enterprises and to the exploitation 
of the regions' potential for internally generated develop­
ment, the Commission shall promote the creation and 
development of Business and Innovation Centres, here­
inafter referred to as 'BICs', which shall have the task of 
creating and developing independent small and medium-
sized enterprises, including cooperatives. The measures 
shall include support for cooperation between BICs, in 
particular through the European Business and Innovation 
Centre Network (EBN). 
2. This measure shall be implemented in areas with an 
industrial basis which are situated in regions covered by the 
European Regional Development Fund or an integrated 
Mediterranean programme, or which are situated in ECSC 
employment areas. 
Criteria for the selection of these areas are set out in 
Annex 1. 
3. The Commission shall ensure a balanced geographical 
distribution of the appropriations, taking into account the 
socio-economic situation of the regions referred to in 
paragraph 2. 
Article 2 
1. BICs shall be locally based, publicly-privately owned, 
professionally managed and ultimately self-financing 
organizations, whose object is to organize and operate a 
fully comprehensive system for: — detecting and selecting potential entrepreneurs and 
innovative ventures, 
— providing potential entrepreneurs and existing small 
and medium-sized enterprises, including cooperatives, 
which are capable of diversification and/or modern­
ization with a comprehensive programme of services 
necessary for the preparation, start-up and success of 
their new activities, including in particular: en­
trepreneurial training and counselling as an auto-
selective process; technical assessment; technology 
search, assessment, development and transfer; business 
management; marketing; finance; and preparation of 
business plans, 
— supplying equipped premises to new businesses in their 
start-up phase. 
2. The capital of BICs may be held by local and regional 
authorities, local or regional interest groups, banks, firms 
and private individuals. No party may hold a percentage 
high enough to give it potential control. 
Article 3 
BICs shall establish formal relations with the various local 
and regional, public and private development and financial 
organizations, capable of performing some of the functions 
mentioned in Article 2 above. 
Article 4 
The Commission may grant financial contributions to the 
following operations, a description of which is given in 
Annex 2: 
— the preparation and launching of BICs up to a ceiling of 
50 % of the cost of the work and for a maximum of two 
years, 
— the development of methods, models and procedures for 
the improvement of BICs management and services, 
— measures to promote the creation of BICs. 
Article 5 
1. Local sponsoring organizations may submit to the 
Commission a request for a Community contribution to 
the financing of the work on preparing and launching BICs. 
2. These organizations shall inform the competent 
authorities in the Member States of their request. The 
16. 8. 88 Official Journal of the European Communities No C 214/67 
Commission shall establish, through contact with the 
competent authorities of the Member States, that the 
assistance it provides is consistent with any measures taken 
and finance provided by them in respect of the same 
operations. 
Article 6 
For six years from the date of their creation, BICs shall be 
required to submit to the Commission each year a report on 
the results achieved. 
Article 7 
This measure shall initially be for a period of four years 
(1988 to 1991). The amount necessary to carry it out during 
this period is estimated at 15 500 000 ECU, to be provided 
out of the general budget of the European Communities. Article 8 
The Commission shall be responsible for the implemen­
tation of this Decision. It shall report to the Council and to 
the European Parliament on the progress and results of the 
measure every second year from the date of this Decision. 
In the light of the results achieved, the Commission shall, if 
appropriate, draw up at the beginning of the fourth year a 
proposal for the continuation of this measure and for 
possible amendments and to adapt it to the requirements of 
other less-favoured regions, together with appropriate 
resources. 
Article 9 
This Decision shall take effect on the day of its publication 
in the Official Journal of the European Communities. 
ANNEX 1 
INDICATIVE LIST OF CRITERIA FOR THE SELECTION OF AREAS FOR THE LOCATION OF 
BUSINESS AND INNOVATION CENTRES [Article 1(2)] 
Business and innovation centres are promoted in areas eligible for assistance under the ERDF and IMPs and in 
ECSC employment areas. Nevertheless, the BICs are designed for areas with an industrial basis which meet 
particular conditions as regards development or industrial redevelopment. In outline, the factors which should 
be taken into consideration when identifying these areas are: 
— Is it a zone or employment area with industrial activities? 
— Does it have a development structure, such as chambers of commerce, banks, development agencies ? 
— Is there a source of technical expertise e.g. a university, college of technology, research centre ? 
— What are the training and counselling possibilities ? 
— What is the labour force ? 
— Are there good communications ? 
ANNEX 2 
LIST OF OPERATIONS (Article 4) 
A. Preparatory work for the organization and launching of BICs 
Preparatory work includes: 
— the organization and testing of the functions and services of a Business and Innovation Centre, in 
particular: detection, screening and training of candidate entrepreneurs and SMEs wishing to diversify 
or modernize; preparation of business plans; technical assessment; local and international technology 
search; advisory services in managerial, legal, taxation, commercial and financial matters; provision of 
common premises, 
No C 214/68 Official Journal of the European Communities 16. 8. 88 
— the hiring of consultants with expertise in the setting-up of BICs, 
— the preparation of business plans for BICs, 
— the setting-up and launching of BICs. 
B. The development of methods, models and procedures for the improvement of BICs management and 
services 
This includes the search for and testing of methods, models and procedures related to the effective operation 
of BICs; in particular: business planning methods, procedures for technology search and assessment, 
international marketing for SMEs and BICs. 
C. The promotion of Business and Innovation Centres in specified areas 
Operations include: 
— the organization of technical seminars in areas of particular interest for Community regional policy, 
where BICs are to be promoted, 
— the hiring of consultants with expertise in the setting-up of BICs.