No C 53/12 Official Journal of the European Communities 2. 3. 89 
Draft Joint Decision of the Council and the Commission of the European Communities setting 
up a programme of options specific to the remote and insular nature of the overseas 
departments (Poseidom) 
COM(88) 730 final 
(Submitted by the Commission on 1 December 1989) 
(89/C 53/10) 
THE COUNCIL AND THE COMMISSION 
OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 227 (2) 
thereof, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the French overseas departments, hereinafter 
referred to as the 'OD', suffer from a serious structural 
lack of development aggravated by a number of 
constraints (remoteness, isolation, small size, difficult 
terrain and climate, and economic dependence on a 
small number of products) whose unchanging nature and 
combined impact have serious adverse effects on their 
economic and social development; whereas these 
constraints differentiate sharply the social and economic 
context of the OD from that of the other Community 
regions; 
Whereas Article 227 (2) of the Treaty stipulates that the 
institutions of the Community will, within the framework 
of the procedures provided for in this Treaty, take care 
that the economic and social development of these areas 
is made possible; 
Whereas the Community authorities have repeatedly 
shown their solidarity with the OD, whether through 
assistance from Community funds or by taking their 
specific nature into account in applying Community 
rules; whereas Parliament stated in its resolution of 11 
May 1987 on the regional problems of the OD (') that it 
was convinced 'that the serious situation which exists in 
the French overseas departments justifies and makes it 
imperative to pursue economic and social development in 
various sectors' and called on the Community authorities 
to implement a broad range of highly diverse operations; 
Whereas the special constraints on the OD make it 
necessary to step up Community support in order to 
promote their economic and social development; 
(') EP 14201, doc. A2-250/86. whereas such support should be forthcoming 
immediately in order to facilitate the integration of their 
economies in the 1993 internal market; 
Whereas the OD form an integral part of the 
Community pursuant to Article 227 (2) of the Treaty, as 
interpreted by decisions of the Court of Justice, which 
has ruled that the provisions of the Treaty and secondary 
legislation apply automatically to the OD, it being 
understood that it is always possible to adopt specific 
measures to assist them to the extent that, and for as 
long as, there remains an objective need for such 
measures with a view to the 'economic and social devel­
opment of these areas'; 
Whereas, however, while forming an integral part of the 
Community, the OD are located in developing regions 
which lie in tropical latitudes; whereas any operation 
concerning the OD must therefore be based on a clear 
understanding of this twofold dimension and be aimed 
both at the objective of completing the internal market 
and at that of recognizing the regional reality; whereas 
the objective of completing the internal market should be 
reflected in the maintenance, modification or abolition of 
rules in force in the OD in line with those which will 
become the norm in the Community as a whole, with a 
view to enabling the departments to catch up with the 
average Community level; 
Whereas attainment of these objectives will require the 
adjustment of general Community rules in so far as they 
do not take sufficiently into account the specific realities 
of the OD; whereas a coordinated approach should 
therefore be adopted in the framework of a compre­
hensive programme of operations; 
Whereas the Council and the Commission must act 
together in adopting such a programme by virtue of their 
respective fields of competence; whereas implementation 
of the programme would require the adoption of legal 
acts, either by the Council or by the Commission as the 
case may be, some of which could apply solely to the 
OD while others would be of only incidental concern to 
them in texts of general scope; 
Whereas in order to be effective such a programme must 
be carried out over a period of years, which could 
extend in the case of certain components beyond 31 
December 1992, given the permanent constraints which 
are a particular feature of the OD; 
2. 3. 89 Official Journal of the European Communities No C 53/13 
Whereas the economic effects of any special 
arrangements must remain strictly limited to the territory 
of the OD without affecting directly the functioning of 
the common market; 
Whereas some of the tropical products originating in the 
OD are not yet covered by common measures, which 
means that the aims set out in Article 39 of the Treaty 
cannot be attained in respect of the producers 
concerned; whereas it will therefore be necessary to 
introduce 'adjustments' under certain common organ­
ization arrangements or to make provision for ad hoc 
solutions; whereas it will be necessary in particular to 
adopt common measures for the banana market that take 
account of the economic and social importance of this 
product in certain of the OD; 
Whereas the exceptional geographical situation of the 
OD in relation to sources of supply for products used as 
inputs in certain food sectors, which are essential for 
current consumption, entail costs that are a severe 
handicap for those sectors; whereas more of their 
requirements in agricultural and food products should be 
met from local production, particularly in the case of 
livestock farming, where inputs account for a substantial 
proportion of the cost of the end product; whereas this 
handicap should accordingly be mitigated by appropriate 
measures; 
Whereas the OD are suppliers on the Community 
market in Europe of tropical products that are similar to 
and in competition with those produced in part at lower 
cost in neighbouring developing countries which enjoy 
preferential terms of access to the Community market, so 
that the principle of Community preference is difficult to 
apply in practice to products obtained from the OD; 
whereas for the OD the neighbouring countries also 
represent a potential outlet for their tropical products, as 
the important tourist industry in the region is generally 
supplied with products from other sources at lower cost 
and greater regional cooperation could provide the OD 
with a means of making better use of this outlet; whereas 
this handicap too should be mitigated by means of 
appropriate measures; 
Whereas numerous national rules specific to the OD 
have been adopted, many of them being of long 
standing, in order to promote their economic and social 
development; whereas the drive to complete the internal 
market requires that a decision be taken before 31 
December 1992 on maintaining, modifying or abolishing 
these rules in accordance with the general principles of 
the Treaty, while taking into account the special 
constraints affecting the regions concerned; 
Whereas in this context traditional rum is a product of 
prime economic and social importance in the OD; 
whereas Council Decision 88/245/EEC (') authorized 
France, notwithstanding Article 95 of the Treaty, to 
maintain special tax arrangements on the French internal market until 31 December 1992; whereas between now 
and then it will be necessary to study the implications of 
the new Community definition, the abandonment of the 
allocation among Member States of the quota granted to 
the ACP States, and the abolition of the special tax 
arrangements after 1 January 1993, and to draw the 
appropriate conclusions; 
Whereas in this context also the OD have their own tax 
arrangements, particularly in the form of dock dues, 
which encourage self-reliant management by local auth­
orities in their own development by providing them with 
own resources and help support local production ac­
tivities; whereas completion of the internal market will 
require that this system be adapted in order to make it 
compatible with Community law while fostering its 
function as an effective instrument for development in 
the regions concerned; 
Whereas in the context of rationalizing the aims of the 
Structural Funds, the Brussels European Council of 12 
and 13 February 1988 laid down five priority objectives, 
including promotion of the development and structural 
adjustment of the less-developed regions; whereas it 
explicitly and definitively included the OD in the list of 
regions covered by this objective and stated that contri­
butions to all the less-developed regions from the 
Structural Funds would be doubled in real terms between 
1987 and 1992; whereas in consequence assistance for 
the OD will be provided from the Structural Funds, the 
European Investment Bank and the other financial 
instruments on the basis of the corresponding 
Community support framework, in a coordinated and 
concentrated manner that will be complementary to 
national and local initiatives, pursuant to Council Regu­
lation (EEC) No 2052/88 (2); 
Whereas the OD are surrounded by States and territories 
with which the Community maintains relations of a 
varied nature, which take the form of cooperation 
policies that are relatively uncoordinated and are 
conducted alongside each other; whereas, however, the 
development of the different constituents of a given 
geographical area, each of which has similar constraints 
and characteristics, requires the implementation of 
regional projects common to the various constituents, 
irrespective of their status in relation to Community law, 
as this makes it possible to achieve economies of scale 
and strengthens regional cooperation among the partners 
concerned; 
Whereas, furthermore, these neighbouring entities are 
traditionally faced with similar problems despite their 
differing legal status; whereas regional cooperation that 
is geared to local realities involves more direct dialogue 
between the parties concerned; whereas it is therefore 
appropriate to foster regional consultation procedures, in 
(') OJ No L 106, 27. 4. 1988, p. 33. (') OJ No L 185, 15. 7. 1988, p. 9. 
No C 53/14 Official Journal of the European Communities 2. 3. 89 
close cooperation with the Member States concerned in 
the case of regions or territories that are the responsi­
bility of Member States, 
HAVE DECIDED AS FOLLOWS: 
Article 1 
1. A multiannual action programme for the French 
overseas departments, known as 'Poseidom' (programme 
of options specific to the remote and insular nature of 
the overseas departments) is hereby established. It will 
deal with legislative measures and financial 
commitments. 
2. Poseidom shall be based on the twofold principle 
that the OD form an integral part of the Community 
and that the regional reality, characterized by the special 
features and constraints specific to the regions concerned 
as distinct from the Community as a whole, must be 
recognized. 
Article 2 
1. Implementation of Poseidom shall in principle be 
carried out from 1 July 1989 to 31 December 1992, 
through the adoption either by the Council or by the 
Commission, as appropriate, of the necessary legal acts. 
2. Given the permanent and specific constraints on the 
OD, certain measures under the programme may 
continue to apply after 31 December 1992 so as to make 
possible the economic and social development of these 
areas. 
Article 3 
Poseidom shall help attain the general aims of the Treaty 
and Annex VII to the third Lome Convention by contri­
buting to the achievement of three specific objectives: 
(a) making possible the realistic integration of the OD 
into the Community by establishing an appropriate 
framework for the application of common policies in 
those departments; 
(b) helping the OD catch up economically, with a view 
to the completion of the internal market by 31 
December 1992, through coordinated and concen­
trated action involving the Structural Funds, the 
European Investment Bank and other Community 
instruments; measures adopted by national or 
regional authorities must be integrated with such 
actions; 
(c) promoting regional cooperation in the developing 
areas where the OD are situated, notably through 
the provision of appropriate instruments for partici­
pation in joint regional projects or programmes. TITLE I 
Application of common policies in the OD 
Article 4 
Community measures already adopted for the OD will 
be maintained, extended or adapted in accordance with 
this Decision in order to provide a better response to the 
specific characteristics of the OD. 
Article 5 
Directives or other measures to be adopted in connection 
with the internal market, social matters, technological 
research and development and environmental protection 
will have to take into account the special character of the 
OD. 
Article 6 
1. Agricultural products not covered by common 
measures will qualify for specific measures which may 
take the form of assistance for production, processing or 
marketing. 
The Council or the Commission, as appropriate, will 
adopt the first measures necessary to this end within one 
year of the date this Decision takes effect. 
2. The Council, acting on a proposal from the 
Commission, will adopt Community measures 
concerning the banana market which take account of 
recent production trends in the Member States and of 
the interests of the productive areas of the Community, 
and also of the interests of countries in respect of which 
the Community has given specific undertakings. 
3. In the case of rum, the Commission will examine 
the economic and social implications of the new 
Community definition, the abandonment of the allo­
cation among Member States of the quota granted to the 
ACP States, and also the abolition of the special tax 
arrangements, taking into account the interests of 
Community producers and producers in third countries 
in respect of which the Community has given specific 
undertakings. 
Article 7 
1. Within six months from the date this Decision takes 
effect the Council or the Commission, as appropriate, 
will adopt measures intended to compensate for the 
exceptional geographical situation of the OD in relation 
to the continental territory of the Community, taking 
into account the aims of regional cooperation. 
2. 3. 89 Official Journal of the European Communities No C 53/15 
2. These measures will be aimed, first of all, at facili­
tating the supply to the OD of inputs for local livestock 
farming, To that end, grain intended for livestock 
production will be exempt from the levy applicable to 
products originating in developing countries with the 
possibility of extending this provision to include other 
third countries in cases of supply difficulties duly 
recognized by the Commission, when imported direct 
into the OD, within the limits of local market 
requirements and for the purposes of those requirements, 
and on condition that the products concerned do not 
give rise to re-exports. 
An arrangement of this kind could also be applied on 
identical terms in respect of products imported direct for 
human comsumption, originating in the ACP States; it 
could be extended to cover other non-ACP developing 
country sources should the products concerned not be 
available in neighbouring ACP States. 
3. In addition, there will be measures to assist the 
production of certain agricultural products in the OD 
(fruit, vegetables and flowers), which will be adopted on 
the basis of objective criteria to be established in the 
context of a product-by-product analysis to be carried 
out by the Commission. These measures may take the 
form of: 
(a) a Community contribution to the development of 
tropical products for which there are outlets on local 
markets, in neighbouring tourist areas, and also in 
the rest of the Community; 
(b) assistance for other lines of production, taking into 
account the concept of an effective economic contri­
bution to the development of the OD and also the 
danger of potential injury to production elsewhere in 
the Community; 
(c) trade promotion campaigns between OD, overseas 
countries and territories and nearby ACP States, in 
particular by participation by the Structural Funds. 
Article 8 
1. National measures which have specific effects 
favouring the OD will be listed systematically in order 
that a decision may be taken before 31 December 1992 
on whether to maintain, modify or abolish them in line 
with the general principles of the Treaty, while taking 
into account the special constraints on the OD. 
2. The Council shall authorize France to grant, under 
the production arrangements, national aid for sugar cane 
and cane sugar, as has been the practice since the entry 
into force of the common organization of the sugar 
market. 
3. "With regard to aid within the meaning of Article 92 
of the EEC Treaty, the Commission: (a) after compiling the list of measures referred to in 
paragraph 1, shall examine them in the light of that 
provision and shall adopt measures within the scope 
of its powers or, where appropriate, shall propose to 
the Council any measures that prove necessary, 
pursuant to Articles 92 to 94 of the EEC Treaty, 
taking into account the specific position of the OD 
and the impact of the Community measures provided 
for in the programme or adopted in implementation 
of it; 
(b) shall continue, even after 31 December 1992, to 
examine at regular intervals the aid given with a view 
to making any changes required by developments in 
the situation. 
Article 9 
The system of charges applied in the OD under the 
heading of dock dues will be converted in accordance 
with Council Decision .../.. ./EEC ('). 
TITLE II 
Action involving the Structural Funds, the European 
Investment Bank and other financial instruments 
Article 10 
1. The aims and procedures set out in Regulation 
(EEC) No 2052/88 will apply, as from the entry into 
force of the Regulation and on the terms laid down 
therein, to assistance to the OD from the structural 
Funds, the European Investment Bank and other existing 
financial instruments with a view to promoting the devel­
opment and structural adjustment of the OD. 
2. Structural aid shall take account of the additional 
handicaps of remoteness and insularity borne by the OD. 
3. Pursuant to Article 8 of Regulation (EEC) No 
2052/88, the French authorites and the Commission shall 
ensure that measures to assist the OD that are covered 
by Community support frameworks are carried out 
primarily through the implementation of operational 
programmes. 
4. Within the scope of its powers and in accordance 
with the eligibility rules of the Structural Funds, the 
Commission shall endeavour to speed up the grant of 
assistance in cases where aid from the Funds is needed to 
repair demage caused by natural disasters endemic to the 
tropical regions concerned, notably hurricanes, where 
such repair is not covered by emergency aid. 
(') Draft Council Decision published in C 39, 16. 2. 1989, p. 6. 
No C 53/16 Official Journal of the European Communities 2. 3. 89 
TITLE III 
Regional cooperation 
Article 11 
1. Regional consultations between the different States, 
territories and departments in the two geographical areas 
where the OD are situated shall be encouraged, in 
conjunction with the authorities of the relevant Member 
States in the case of OD and territories, in the interests 
of better regional cooperation. Regional trade 
cooperation could take the form, in due course, of 
regional trade agreements. 
2. Within the framework of its management powers 
with regard to the Structural Funds, and in accordance 
with the eligibility rules of the said Funds, the 
Commission will ensure that the OD receive assistance 
from the Structural Funds in the context of regional 
projects or programmes common to OD, OCT and ACP 
States in the same geographical region, provided and to 
the extent that: 
—- these joint regional projects or programmes shall be 
those defined, as regards their aims, scope and 
procedural rules, in Articles 101 to 113 of the third Lome Convention and in Articles 54 to 66 of Council 
Decision 86/283/EEC ('), 
— the procedural rules for financing these projects or 
programmes shall be those specific to each of the 
Community Funds concerned. 
The Commission will ensure coordination of the 
financing timetable and also of the subsequent 
implementation of the projects or programmes. 
TITLE IV 
Final provisions 
Article 12 
This Decision shall take effect on 1 July 1989. 
Article 13 
This Decision shall be published in the Official Journal of 
the European Communities. 
O OJ No L 175, 1. 7. 1986, p. 1.