Proposal for a Council Regulation (EC) on the grant of financial assistance to Portugal for a specific programme for the modernization of the Portuguese textile and clothing industry (94/C 373/08) COM(94) 562 final - 94/0280 (CNS)

(Submitted by the Commission on 2 December 1994)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the last paragraph of Article 130b thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Having regard to the opinion of the Committee of the Regions,

Whereas a large part of the Portuguese textile and clothing industry is highly vulnerable in the face of current and future international competition and the weight of this sector in the economic fabric of some Portuguese regions might jeopardize the economic and social cohesion of the Community;

Whereas, at its meeting of 15 December 1993, the Council approved the Commission's intention to allocate ECU 400 million to the modernization of the Portuguese textile and clothing industry;

Whereas the Commission published Notice 94/C 180/04 to the Member States laying down guidelines for the initiative concerning the modernization of the Portuguese textile and clothing industry in the Official Journal of the European Communities (1).

Whereas the Budgetary Authority has agreed to enter ECU 400 million for the period 1995 to 1999 into one of the chapters of Section 3 of the financial perspective annexed to the Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure (2).

Whereas the provisions governing the use of these resources should be laid down;

Whereas, in order to simplify the administration of these resources, which should be entrusted to the Commission, and to ensure consistency with the Community's other structural measures, the Commission should apply the appropriate provisions governing the Structural Funds, in particular Regulations (EEC) No 2052/88, as amended by Regulation (EC) No 2081/93 (3), (EEC) No 4253/88, as amended by Regulation (EEC) No 2082/93 (4), (EEC) No 4254/88, as amended by Regulation (EEC) No 2083/93 (5), (EEC) No 4255/88, as amended by Regulation (EEC) No 2084/93 (6) and (EEC) No 1866/90, as last amended by Regulation (EC) No 2745/94 (7),

HAS ADOPTED THIS REGULATION:

Article 1

A programme for the modernization of the Portuguese textile and clothing industry is hereby instituted for the period 1995 to 1999 in order to facilitate its adaptation to increasing international competition.

Article 2

The eligible measures, conditions for granting Community assistance and implementing provisions shall be those set out in the Commission's Notice 94/C 180/04.

Article 3

The specific Portuguese textile programme shall be jointly financed by the Member State and the Community. The total Community contribution to the programme shall be ECU 400 million in 1994 prices. There may also be loans from the European Investment Bank. In order to facilitate this type of financing, Portuguese undertakings shall qualify for interest subsidies to be financed, up to ECU 100 million, from the allocation provided for this initiative.

Article 4

The provisions governing the Structural Funds, particularly those concerning rates of assistance, eligibility of expenditure, monitoring, evaluation, financial execution and control and indexation shall apply.

Article 5

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.

It shall apply from 1 July 1994.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No C 180, 1. 7. 1994, p. 15.

(2) OJ No C 331, 7. 12. 1993, p. 1.

(3) OJ No L 185, 15. 7. 1993, p. 9.

(4) OJ No L 193, 31. 7. 1993, p. 20.

(5) OJ No L 193, 31. 7. 1993, p. 34.

(6) OJ No L 193, 31. 7. 1993, p. 39.

(7) OJ No L 290, 11. 11. 1994, p. 4.