ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)126
Vol.1975/0044

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(75 )126final
Brussels ,16April 1975
Proposal for aCouncil Decision onintervention bythe
Social Fund toencourage structural adjustment measures
.(Article 4oftheCouncil Decision of1February 1971 )
(submitted bytheCommission totheCouncil )
COM(75 )126final

-2-
■RXPLAMTOiY MEMORANDUM :
1.Atthe"summit"meetingheldinParisinDecember1974,theHeadsof
?ove-'"nentexpressedconcernabouttheemploymentsituationinthe
Communitywhichhad"beensteadilydeteriorating .Theystat-ed.thatit
wasessentialto-take"vigorousandcoordinatedactioratCommirHty
leveltodealwiththeproblemofemployment"andreferr 1tothepos­
sibilityofincreasingtheresourcesoftheSocialFundtotakeaccount
of"theproblemsoftheregionsandcategoriesofworkersmostaffected
byemploymentdifficulties".Theconceptofassistance fromtheSocial
Fundwassupportedbybothsidesofindustry.
Althou^iobserversinourcountriesarenotallinagreementonthe
natureandexpecteddurationnftherecessionorcrisisaffectingthe
Community,itisgenerallyacknowledged thattheeconomicphenomena-
compriserapidlygrowingproblemsofstructuraladjustmentorreedapta–
tionr.fittheemploymentlevel,thesestructuralchangeswillinevitably
ent'ailgreatermobilityoflabour,takingtheformmoreespeciallyof
transferstozonesofnewactivities ,changeswithinundertakings and
sectorsundergoingredevelopment ordiversification .
2.IntheSocialFund,theCommunityhasindependently ofotherpossible
anddesirablemeasures,aninstrumentforencouraging asignificant
andexemplarycommoneffortcapableofimprovinrtheadan^ation
betweensupplyanddemandonthelabourmarketrecess:tedbystructural
' changes.
Inviewofthenumberofpersonsaffectedbyrestructuring ,itseems
perfectly .justifiablefortheCommunitytotakespecificjointaction
underArticle4oftheDecisionof1February1971,byopeningthe
SocialFundtoacarefullychosenselectionofintervention measures.
•/•••

Itisclear that such anopening will not affect theintervention me­
thods already used bytheSocial Fund tosupport operations inregions
indifficulty ,particularly those with anunder developed industrial
structure .This fact will have tobetaken into account infuture
decisions onaidunder Article 5,which isspecifically designed to
help with such regional problems .Similarly ,itwiiil bepossible ,by
means ofassistance from' theFund pursuant toArticle kofthe
Decision ofJune 197^onmigrant workers ,tosolve s^rne ofdifficulties
encountered bymigrant workers .
Joint specific action could primarily encourage vocational training
'-orations facilitating new forms ofgrowth orrapid expansion ,ofvalue
vthe context ofthe Community 'smedium-term economic development
prospects Asregards the Community ,this means taking ;art inthe
effort torapidly provide asupply ofskilled labour for alimited num­
ber ofactivities which guarantefe ,inparticular ,easier access tonew
trades :projects onthe development ofenergy resources orthemore
rational use ofenergy ,newproduction formulae oraction corresponding
topriority collective needs ,e-g.,inthefield ofjoint transport or
theimprovement ofthequality oflife# Other operations chargeable to
theFund will bethose dealing with staff training andrecycling projects
forming part ofstructural adjustment ,reconversion ordiversification
measures ,insectors or -branches where present orplanned changes are
clearly affecting employment structures .Unless unemployment trends and
sectoral employment prospects aresuddenly reversed ,such sectors or
branches will primarily befound among those often referred toinrecent
consultations held at' Community level :motor vehicle ,building ,
textile and certain sections ofthe chemical industries ,aswell as
certain associated orsub-contracted activities .

Lastly ,each operation will have toform part ,ofagroup ofprojects
which inturn will form part ofaprogramme drawn upatthelevel of
either thesector ,theMember S+ate ,theregion oreven theunder­
taking ,stating theeconomic context andthescope oftheaction
taken toadapt and develop theundertakings .TheCommission thus
hopes toensure that theinterventions receiving assistance from the
Fund aresufficiently guaranteed astotheir advisability andefficacy
inthenational context ,andmake itpossible togradually ensure that
they are consistent with theeconomic and social guidelines ofthe
Community .
Pursuant tothe desire expressed atthe "summit "which was parti­
cularly concerned with the categories ofpersons and regions most
affected byemployment difficulties ,assistance from theFund should
give priority topersons insectors orbranches where theunemployment
n1""women /
rate hasrisen sharply and toyoung people ,atraditionally one ofthe
most vulnerable categories intimes ofcrisis orrecession .Itseems
reasonable ,however ,torestrict such priority topersons inregions
most affected byemployment difficulties .
Women will begranted priority onthebasis ofselective criteria
and forspecific projects resisting from thework connected with the
implementing oftheprogram "1"•»*fs"f"e'Ted tointhecommunication from
theCommission tothe Council ("Doc .COM (75)36).

The Council should also list the types ofaid which could receive
assistance from the Fund within the framework ofits Decision in
accordance with Article
Driring theprior consultations ,itappeared that theCouncil was not
likely ,atthis stage ,toapprove thesetting-un ofanew aidenabling
the Fund tobear the costs ofexpenditure oninterim allowances or
other forms ofguaranteed income .
Inimplementing itsDecision ,theCommission therefore proposes to
consider only the aids referred tointhe Regulation containing the
list ofaids­

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Proposal for aCouncil Decision onintervention bythe
Social Fund toencourage structural adjustment measures
(submitted bytheCommission totheCouncil )
TheCouncil oftheEuropean Communities ,
Having regard totheTreaty establishing theEuropean Economic Conpnunity ;
Having regard totheCouncil Decision of1February 1971 (l)onthereform
oftheEuropean Social Fund ,andinparticular Article 4thereof ;
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament .
Having regard totheOpinion oftheEconomic andSocial Committee ;
Whereas themethods ofaction andoperation oftheSocial Fund aredefined
byCouncil Regulation (EEC)no2396/71of8November 1971 implementing the
Council Decision of1February 1971 onthereform oftheEuropean Social Fund :
State or/
Whereas theHeads of/Government meeting inParis on10December 1974 called
fortheimplementation of"vigorous ,andco-ordinated action atCommunity
level todeal with theproblem ofemploymentf' strengthened ,ifnecessary ,by
greater useoftheresources oftheEuropean Social Fund ,with dueregard to
theproblem ofthe regions and categories ofworkers most affected by
employment difficulties j
Whereas ,inview oftheemploye situation intheCommunity ,itis
necessary totake specific commrm ac+ion toensure adjustment ofsupply
and demand onthe labour market *
______ •/••*
(1)OJ.No.L28,4.2.1971 ,p.15

I
-7-
Whereas,toenablemotilitytobeachievedundergoodconditions,theopera­
tionsto"begrantedassistancefromtheSocialFundmust"beprovidedforin
restructuring ordevelopmentprogrammescapableofprovidingthelabour
forcewithproductiveemploymentorre-employment ;
Whereassuchprogrammesshouldencouragethedevelopment oftheeconomic "branches
theexpansionofwhichisparticularly desirablefromthestandpointofthe
medium–termeconomicdevelopmentprospectsintheCommunityandfacilitatethe
structuraladjustmentofthesectorsmostaffected^
Whereaseconomicrestructuring isliabletoparticularly effectcertaincate­
goriesofpersonsandcertainregionswhichshouldthereforebegivenpriority;
Whereas theEuropeanSocialFunddecidedonbytheCouncilmakes
itpossibletocontributetothecostsresultingfrommeasurestakenortobe
takenintheMemberStatestoboostemployment andthegoegraphicorvocational
mobilityofpersonswhose .jobsarejeopardized bytheeconomicdifficulties in
thesectorsbeingrestructured ;
WhereastheoperationsandworkingmethodsoftheFundaredefinedinCouncil
Regulation (EEC)no.2396/71of8November1971implementing theCouncil
Decisionof1February1971onthereformoftheEuropeanSocialFund;
HASDECIDEDASFOLLOWS:
Article 1
1.PursuanttoArticle4oftheCouncilDecisionof1February1971,theas­
sistanceoftheSocialFundmaybegrantedforoperationslikelytofacili­
tatethegeographicaland/orvocationalmobilityofpersonsseekingstable
employmentineconomicactivitieswhosedevelopmentorstructuralreorgani­
zationrequireadequatelyskilledlabouri
•/•*O

2.ForthepurposeofapplyingthepresentDecisionandinaccordancewith
thecriteriareferredtointheaboveparagraph,theoperationshavebeen
selectedwhicharelikelytoencourage:
–thedevelopmentofactiviiicclinkedwiththerestructuring of
theenergysector;
–thepromotionofactivitiescorresponding topriorityCommunityneeds,
–thestructuraladjustment,diversifies *:5onandreconversion ofsector
branchesorproductionactiviteswi+hstructuralproblemsseriously
affectingemploymenttodevelopmentactivities .
Article 2
Inordertoreceiveassistance fromtheFund,operationsconcerningpersons
referredto"inArticle1mustruninlinewiththeimplementing ofadjustment
anddevelopment programmes consistentwiththe
economicandsocialobjectivesoftheCommunity.Suchprogrammeswilloutline
theeconomiccontestoftheprojectsthattheyorganizeanddefinethe
objectivesandresources.
Article3
WithinthetermsandlimitsofArticle1,priorityshallbegrantedtoopera­
tionscarriedoutinregionsmostaffectedbyenploymentdifficulties ,
benefiting :
–personsemployedinsectors-orbrancheswithstructuralproblemsseriously
affectingemployment ;
–youngpeopleunder25years'•"■^enwhoare^unemployedorseeking
employment.

-9-
Article4
PursuanttoArticle1,theassistanceoftheFundmay"begrantedforaid,
listedinRegulation(EEC)n°2397/71onaidwhichmayqualifyforassistance
fromtheEuropeanSocialFund.
Article 5
ThisDecisionshallenterintoforceonthefifthdayfollowingits"publica­
tionintheOfficialJournaloftheEMlopeanCommunities.
Itisapplicabletooperationsforwhichtheproposalhasreceivedtheagree­
mentoftheCommission "beforetheexpiryofadelayoftwoyearsafterthe
comingintoforceofthisDecision^vnthoutprejudicetotheimplementation
ofArticle11oftheCouncilDecisionof1February1971onthereform
oftheEuropeanSocialFund.