No C 291/8 Official Journal of the European Communities 31.10. 87 
II 
(Preparatory Acts) 
COMMISSION 
Programme for the conversion of shipbuilding areas — Proposal for a Council Regulation 
instituting a Community programme to assist the conversion of shipbuilding areas (Renaval 
programme) 
COM(87) 275 final 
(Submitted by the Commission to the Council on 31 July 1987) 
(87/C 291/08) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to Council Regulation (EEC) No 
1787/84 of 19 June 1984 on the European Regional 
Development Fund (') and in particular Article 7(4) 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Article 7 of Regulation (EEC) No 1787/84, 
hereinafter referred to as the Fund Regulation, provides 
for participation by the Fund in Community programmes 
the purpose of which is to help in solving serious 
problems affecting the socio-economic situation in one 
or more regions and which are designed to provide a 
better link between the Community's objectives for the 
structural development or conversion of regions and the 
objectives of other Community policies; 
Whereas, on 26 January 1987, the Council adopted 
Directive 87/167/EEC on aid to shipbuilding (2) and 
whereas that Directive has to be seen in the context of a 
further reduction in shipbuilding capacity in the 
Community and an even larger reduction in 
employment; whereas the foregoing considerations also 
apply to ship conversion and repair; 
Whereas a number of areas in the Community which are 
highly dependent on shipbuilding and which have 
already suffered major job losses as a result of the 
(') OJNoL 169,28.6. 1984, p. 1. 
O OJ No L 69, 12. 3. 1987, p. 55. decline in shipbuilding are likely to see a worsening of 
these adverse consequences; 
Whereas, in adopting the said Directive, the Council also 
took the view that additional measures should be taken 
to alleviate the social and regional consequences of the 
restructuring of the shipbuilding industry; whereas, to 
that end, the Commission sent to the Council and to the 
European Parliament a communication on the industrial, 
social and regional aspects of shipbuilding; (3) whereas, 
in that communication, the Commission proposed in 
particular that a Community programme within the 
meaning of Article 7 of the Fund Regulation should be 
instituted for the conversion of the worst-hit areas in the 
Community; 
Whereas, on 7 October 1980, the Council adopted Regu­
lation (EEC) No 2617/80 (4), as amended by Regulation 
(EEC) No 217/84 of 18 January 1984 (5) and by Regu­
lation (EEC) No 3635/85 of 17 December 1985 (4), 
which instituted a specific Community regional 
development measure contributing to overcoming 
constraints on the development of new economic 
activities in certain zones adversely affected by 
restructuring of the shipbuilding industry; whereas the 
areas in the new Member States adversely affected by the 
restructuring of shipbuilding should be allowed to 
benefit, in the form of a Community programme, from 
measures analogous to those introduced by the said 
Regulation; 
Whereas, on account of the worsening difficulties faced 
by shipyards, it will also be necessary to introduce in 
other areas of the Community, in the form of a 
Community programme, measures analogous to those 
already taken in certain areas of the Community under 
Regulation (EEC) No 2617/80, as amended, and, where 
appropriate, to reinforce as part of the same programme 
the existing measures in those areas; 
O COM(86) 553 final, 15. 10. 1986. 
(*) OJ No L 271, 15. 1.0. 1980, p. 16. 
O OJNoL27, 31. 1. 1984, p. 15. 
(') OJ No L 350, 27. 12. 1985, p. 8. 
31.10.87 Official Journal of the European Communities No C 291 /9 
Whereas the Member States concerned have provided 
the Commission with the necessary information and 
whereas, pursuant to Article 11 of Directive 
87/167/EEC of 26 January 1987, they are required to 
supply the Commission with yearly reports on the 
attainment of the restructuring objectives; 
Whereas, by assisting with the conversion of the 
declining industrial regions affected by restructuring of 
the shipbuilding industry, the Community programme 
contributes to the furtherance of both regional 
development objectives and the Community's objectives 
with regard to shipbuilding; whereas the level of 
Community participation must therefore be the 
maximum permissible under the Fund Regulation and 
whereas, at the same time, the programme is given 
priority in the management of Fund resources; 
Whereas it is necessary to avoid combining aid granted 
under the specific Community measures instituted 
pursuant to former Regulation (EEC) No 724/75 (') or 
Regulation (EEC) No 3634/85 (2) with aid granted 
under this Community programme; 
Whereas Community assistance must be provided in the 
form of multiannual programmes drawn up by the 
competent authorities in the Member States concerned; 
whereas, to ensure sound financial management of the 
Fund, the Member States must transmit those aid 
programmes to the Commission within a certain period 
after the areas to be covered by the Community 
programme have been determined; whereas it is for the 
Commission, in adopting those programmes, to ensure 
that the operations proposed therein are in keeping with 
this Regulation; 
Whereas, in view of the reform of the Structural Funds 
under Article 130 D of the Treaty which is in prospect, 
the choice of regions in the present Community 
programme and the criteria on which this choice is based 
should be consistent with the approach to be followed in 
the abovementioned reform, 
HAS ADOPTED THIS REGULATION: 
Article 1 
A Community programme within the meaning of Article 
7 of the Fund Regulation that contributes to the 
conversion of certain declining industrial regions in the 
Community adversely affected by restructuring of the 
shipbuilding industry is hereby established. 
Article 2 
The purpose of the Community programme shall be to 
contribute, in the areas concerned, to the removal of 
obstacles to the development of new, job creating, 
economic activities. To this end, the programme shall 
provide for the implementation of a series of consistent, 
multiannual measures relating to improving the infra-
C) OJNoL73, 21. 3. 1975, p. 1. 
O OJ No L 350, 27. 12. 1985, p. 6. structure and the physical and social environment in the 
areas concerned, as well as to the establishment of new 
activities, the growth of small and medium-sized 
enterprises and the development of innovation. 
The Community programme shall thereby seek to 
provide a better link between the Community's objectives 
for the conversion of regions and the objectives of the 
Community's policy on shipbuilding, in particular within 
the framework of directives on aids. 
Article 3 
1. The Community programme shall apply to areas 
satisfying the following criteria: 
(a) a minimum number of jobs in shipbuilding; 
(b) industrial employment dependent, in large measure, 
on shipbuilding; 
(c) major job losses in shipbuilding; 
(d) the socio-economic situation in the region in which 
the area concerned is located characterized by parti­
cularly marked employment difficulties. 
2. As soon as this Regulation has entered into force, 
the Community programme shall apply to the areas in 
Spain and Portugal which satisfy the criteria specified in 
paragraph 1, namely: 
— the provinces of La Corufia, Pontevedra and Cadiz, 
and the areas covered by a national regional aid 
scheme in the province of Vizcaya in Spain, 
— the area of Setubal in Portugal. 
3. The Community programme shall apply, subject to 
a decision by the Commission, to areas in all Member 
States which satisfy the criteria specified in paragraph 1 
and in which restructuring of the shipbuilding industry 
entails major job losses up to the end of 1989. In this 
respect, account shall be taken of the job losses over and 
above those taken into consideration when Regulation 
(EEC) No 2617/80 and the successive amendments 
thereto were adopted as well as those referred to in 
paragraph 2 above. 
The Commission shall take its decision within not more 
than three months of the date on which the Member 
State concerned submits an application in respect of the 
areas eligible for the Community programme. 
Applications shall be sent to the Commission by 30 April 
1990 and shall be supported by the requisite information, 
notably concerning job losses in the shipbuilding 
industry; such information shall be consistent with that 
supplied in the yearly reports on the attainment of the 
restructuring objectives which Member States are 
required to transmit to the Commission pursuant to 
Article 11 of Directive 87/167/EEC. 
Article 4 
The Fund may participate, under the Community 
programme, in operations such as those defined in 
NoC291/10 Official Journal of the European Communities 31.10.87 
Article 4 of Regulation (EEC) No 2617/80, as amended, 
with the exception of point 2. 
The latter provision is replaced by the following text: 
'2. Infrastructure contributing to the creation, the 
development and the adaptation of job-creating 
productive activities'. 
Article 5 
1. The Community programme shall be financed 
jointly by the Member State concerned and the 
Community. Assistance from the Fund, which may not 
exceed 55 % of the total public expenditure taken into 
account in the programme, shall be provided from the 
appropriations entered for this purpose in the general 
budget of the European Communities. The Community 
contribution for each type of operation shall not exceed 
the rate fixed in Article 5 (1) of Regulation (EEC) No 
2617/80, as amended (with the exception of point (b)). 
This latter provision is replaced by the following text: 
'(b) for infrastructure operations provided for in 
Article 4.2: 50 % of public expenditure'. 
2. As regards the areas in Portugal, the level of the 
Community contribution provided for in paragraph 1 
shall be increased until 31 December 1990 by 20 
percentage points, subject to a ceiling of 70 %. 
Article 6 
1. All or part of the aid may be in the form of a 
capital grant or an interest subsidy. 
2. The following shall be eligible for Fund assistance 
in respect of the operations referred to in Article 4: 
public authorities, local and regional authorities, other 
bodies, businesses, cooperatives or self-employed persons 
carrying on a productive activity. 
3. (a) Aid granted under the Community programme 
shall not be combined with aid granted for the 
same project under specific Community measures 
introduced pursuant to former Fund Regulation 
(EEC) No 724/75 or to Regulation (EEC) No 
3634/85; 
(b) In addition, the aids referred to in Article 5 (1) 
(c) and (e) of Regulation (EEC) No 2617/80, as amended, and, where it benefits businesses 
directly, the aid referred to in Article 5 (1) (g) of 
the said Regulation, may not have the effect of 
reducing the share of expenditure met by recipient 
businesses to less than 20 % of total expenditure. 
Article 7 
1. The programme of assistance drawn up by the 
competent authorities in the Member State concerned 
shall be sent to the Commission: 
(a) in respect of the areas referred to in Article 3 (2), 
within six months of the date of entry into force of 
this Regulation; 
(b) in respect of the areas referred to in Article 3 (3), 
within six months of the date of the Commission 
decision referred to in the said paragraph 3. 
Where the Commission's decision relates to an area 
referred to in Article 3 (2) or covered by a 
Commission decision within the meaning of Article 3 
(3), the programme of assistance shall be adapted 
accordingly. 
2. The duration of the programme of assistance may. 
not extend beyond 31 December 1992. 
Article 8 
The amount of Fund assistance may not exceed the 
amount laid down by the Commission when adopting 
the programme agreement referred to in Article 13 (1) of 
the Fund Regulation. 
Article 9 
The present Regulation shall be re-examined and if 
necessary amended to accord with the revision of Regu­
lation (EEC) No 1787/84 provided for in Article 130 D 
of the EEC Treaty. 
Article 10 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.