ARCHIVESHISTORIQUES
DELACOMMISSION
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DOCUMENTS "COM"
COM(82)485
Vol.1982/0162

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COMMISSION OFTHEEUROPEAN COMMUNITIES
OPINION OFCOMMISSION ONTHEREVIEWOFTHEEUROPEAN SOCIALFUND
PROPOSAL FORACOUNCIL REGULATION TOIMPLEMENT
ACOUNCILDECISION ONTHETASKSOFTHERUOPEANSOCIALFUND
OPINION OFTHECOMMISSION ONTHERULESOFTHE
COMMITTEE OFTHEEUROPEAN SOCIALFUND
(presented fromtheCommission totheCouncil)
COM(82)485finalCOM(82)485final
A-'/AV-f-r9-.-vA'X\
K-H
"•<%-dBrussels,8thOctober1982

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OpinionoftheCommission onthereviewoftheEuropeanSocial'Fund
1.Introduction
Generalissues
1.1Article11ofCouncilDecision71/66/EEC0)»asamended ,byDecision
77/80l/SEC(2)providesforareviewoftheEuropeanSocialFundby
theCouncilnotlaterthan31December1982.Ifnecessary,theDecision
maybeamendedonthebasisofanopinionoftheCommissionbasedon
Article126oftheTreaty.TheCommissionconsidersthatamendments
areneededtoenabletheFundtoplayamoreforward-looking andcreative ;
roleinimprovingemploymentopportunities ,takingaccountofchanging
featuresoflabourmarketandvocationaltrainingsystemswithinthe
Communityandthedevelopment ofCommunityemploymentpolicj'.Inthis
opiniontheCommissionsuggestsanunberofchangestctheF\jndand
explainswhyitregardsthemasnecessary.
1-2TheCommissionhasalsodraftedanewdecisiontoreplace71/66/EEC.Although?"f;.
partsoftheexistingdecisionshould,intheCommission'sview,beretainedi;,or;
lessunchanged,otherpartsrequiresubstantialalterationanditistherefore
procedurally simplertoconsideracompletenewdecisionthanaseriesofamendr.;e
totheexistingone.Thisopinionandthedraftbasicdecisionshouldbeconsic'e-
withtheCommission'sproposalforaregulationtoimplementthenewdeoisico
andwiththedraftforanewdecisionontherulesoftheSocialFundCommittee .
Togethertheseinstruments wouldformthebasisoftheFundafterthereviewC3).
(1)OJno.L28of4.2.1971,p.15
(2)OJno.L337of27.12.1977,p.8
(3)Theseproposalsdonotprejudicetheworkinprogressfollowingtheresponse
givenbytheCommissiontothememorandum putforwardbyGreece,whichhas
specificproblemsregardingitsparticipation intheFundasaresultofits
particular economicandsocialstructure.

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Contextofthereview
1.3ThespecificactionoftheSocialFund,toimproveemploymentoppor­
tunitiesshouldbereviewedinthecontextoftherecentdevelopment
ofCommunityemploymentpolicy(1)whichhastakenonanewurgent
dimensiongiventhatthereairenowover10500000unemployed ,inthe
Communityand.thattherearestillfewsignsofanyrecoveryinthe
employmentsituation.TheSocialFund,throughitssupportoflabour
uarketmeasures,shouldbeusedtocomplementandnottosubstitute
forconcertedactiononabroaderleveltopromotearecoveryin
employment–creatingeconomicgrowthandtoencourageamoreequitable
distribution ofemploymentopportunities .
1.4TheSocialFondshouldcontinuetoplayaroleinsupportofcorrective
labourmarketmeasuressuchasthosedesignedtoreducethemismatch
betweenthedemandandsupplyofmanpowerandtofacilitatetheemploy­
mentofdisadvantaged groups..Itshouldalsocontinuetoconcentrate
itsresourcesinareasofgreatestneed,takingaccountofthepsrsistently
highlevelofunemployment inthelessdevelopedregionsandinthose
areasnowexperiencing amarkeddeclineoftraditionalindustrieswhich
wereamajorsourceofemployment .TheSocialFundwillalsoneed,
however,toadjusttothemorerecentemphasisgivenbytheComnunity
tomeasuresdesignedtostimulatethecreationofnewemploymentoppor­
tunities,whetherthroughwagesubsidies,ortrainingprogrammesin
managementskillsorthroughtheprovisionofspecialised adviceand
counselling onsettingupneweconomicactivities.
1.5TheSocialFundshouldbeequippedtoadapttoanasupportthechanging
orientation oflabourmarketmeasureswhicharelikelytodiversify
furtherinresponsetothevaryingpaceoftechnological change .andthe
specificpotentialforemploymentgrowthindifferentpartsoftheCommunity.
TheFundmustalsobeabletoadapttomeetthenewLabourmarketrequirements
whichwillariseafterthenextenlargement oftheCommunity.
(1)CouncilResolutionof27.5-1982
./.

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Objectives ofthe review
1.6 Themajor objective ofthereview istoestablish acLoser coordination
between theFund and Community priorities inrespect ofemployment and
vocationa Ltraining .Similarly ,greater consistency must besought between
theFund 'sinterventions andtheeconomic ,industrial andsectoral policies
pursued bytheCommunity .Finally ,thereview must enable more effective
coordination between the Fund and theCommunity 'sother financial instruments
tobeguaranteed .
Thus theprincipal objectives ofthereview derive from analysis both ofthe
employment situation andofthefunctioning ofthecurrent Fund andmaybe
summarised asfollows :
-toprovide support for theimplementation ofatraining guarantee
forallyoung people and topromote adynamic response tothe
Problem ofyouth unemployment ;
-toadapt theFund toenable ittostimulate investment inhuman
resources and toencourage equality ofopportunity forall workers ;
-toenable theFund toplay amore active role 0nbehalf oflocal initia­
tives concerned with employment and tostimulate jobcreation ,particularly
insmall andmedium^sized undertakings ,including cooperatives;'
totake account oftheconsequences ,both positive andnegative ,which
theintroduction ofnewtechnology mayhave onthe level ofemployment ,
andtocontribute inparticular toraising thestandard oftraining to
meet therequirements ofthedevelopment ofsuch technology ;
–toimprove andperfect the Fund 'smechanisms soastoallow itto
have greater impact where unemployment problems aremost acute ;
–toincrease theflexibility andefficiency oftheFund toenable ix
torespond rapidly tothechanging requirements ofthelabour market
andinline with Community policies inthearea ofemployment and
vocational training ;
–todevelop therole oftheFund insupporting innovatory training
andemployment measures andtheir wider application within fceir.ber
States andthroughout theCommunity .
./.

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2.Structure ofthe Fund
2.1 Thestructure ofthecurrent Fund iscomplicated ,comprising adivision into
twoparts under Articles 4and 5ofDecision 71/66/EEC,together with sub­
division into 9separate fields ofintervention plus thesmall section forpre­
paratory studies andpilot scherries .This hasproved somewhat rigid .
Instead theCommission suggests that the Fund rules should infuture
define abroad range ofeligible people andoperations ;from within theeligible
operations specific target groups andareas oftheCommunity would beselected for
aconcentration ofFund aid .Theselection would bemade through aset ofgeo­
graphical criteria inthestatutes combined with priorities setout in .the
Guidelines .TheGuidelines would continue tobeupdated annually bythe vCom­
mission ,after consultation with the Fund Committee ,toensure Fund support for th
achievement ofCommunity objectives inthearea oftraining andemployment
policies .
2.2 Inorder tomeet therequirements arising from thelatest developments
inthelabour market andinemployment policies ,theFund 'sinterventions
will need tobeconcentrated inthree distinct areas ofactivity :
(a)Thefirst area comprises support forinitiatives linked tothe
development ofemployment opportunities for people aged 18
andover belonging totheworking population ,including vulnerable
groups such asmigrants andmembers oftheir families ,andthe
disabled .Thetypes ofoperation eligible forfunding inthis
category would include practically allthose eligible under the
existing provisions oftheFund .These essentially concern
training operations ,but also include recruitment subsidies linked
tojobcreation ,integrated training andemployment meASureb aspart
oftherestructuring orconversion ofundertakings related to
theintroduction ofnewtechnology ,resettlement andintegration
measures ,and jobadjustment fordisabled people .This area of
Fund activity should also infuture extend tosupport forspecific
operations designed tostimulate thecreation ofnewemployment
opportunities through thedevelopment ofadvice andcounselling
facilities especially forthose involved insetting upnew
economic activities orextending them .

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2.2 (b)Thesecond area ofactivity concerns support fortheprogressive
extension ofvocational training provisions inorder tomeet ,in
principle within aperiod offive years (1)/theneeds ofallyoung
people under theageof18whohave completed compulsory schooling .
Theobjective would "betocontribute totheefforts byMember States
toestablish acoherent strategy onthe social andvocational pre­
paration ofyoung people foradult andworking life .Fund aid on
"behalf ofthose under 18would take theform ofsupport toschemes
combining training andwork experience provisions (2).These schemes
maybedeveloped onthebasis ofexisting systems ofvocational
training (whether ornotthey arespecifically designed forunemployed
young people )forinstance byextending apprenticeship training orby
adapting existing wage subsidy schemes toincorporate anappropriate
training component .The specific character ofthis type ofFund
intervention ,which isdirectly linked tothedevelopment of
Community policy onvocational training (3)should notprovide a
precedent foraproliferation ofother separate categories of
intervention forparticular groups ofunemployed people tobe "
catered forunder 6(a)above .
(1)cf.Conclusions oftheEuropean Council of29/30March 1982 .
(2)Council Resolution of18.12 .1979 onlinked work andtraining
foryoung people •
(3)cf Commission communication onthesubject ,C0MC82 )
637 of6.10.1982 .

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2.2(c)Finallyasathirdareaofactivity,thereisthefundingof
specificoperationslinkedtotheCommunityemploymentandvocational
trainingpoliciesandactionprogrammes .Theaimherewouldbeto
enabletheFundtoplayamoreactiveroleinthedevelopment of
innovatorypoliciesthroughouttheCommunity.Moreemphasisshould
inparticular beplacedonthecomparative evaluationofdemonstration
projects,theexchangeofexperienceandthedissemination of
informationforthebenefitofbothpolicymakersandpractitioners .
Suchoperationsshouldbe:
-ofLimitedsizeandduration;
-relatedtoparticularaspectsofemploymentpolicyandvocational
training;and
-ofpotentialinteresttootherMemberStates.
Forexample,thelaunchingofagroupofprojectswithintheframework
oftheactionprogrammerecentlyapprovedbytheCouncil(1)onbehalf
ofdisabledpeoplewouldcomeunderthisheadingaswouldtheaction
projectsproposedintheCommission Communication ontrainingandnew
technology (2).
Equally,asapartofthisareaofactivitytheFundshouldcontinue
tosupportinnovativeprojectsandexperimental orpilotschemesin
preparation forfull-scaleprogrammeswhichmayinturnbecomethe
subjectofapplications forFundaid.
Similarly,theFundshouldcontinueitsactionunderthisheadingin
supportofexperimental andpilotschemesoftrainingfordevelopment
whichhelpthoseresponsible inalocalcommunitytodesignandcarry
outprojectsintroducing neweconomicactivitiesorrevitalising
existingactivities .
(1)OJNoC347of31.12.1981.
(2)COM(82)296finalof3.6.1982

Theactivities described inpoints 2.2(a )and2.2(b )above arethose tobe
carried outbyMember States within national ,regional orlocal manpower
programmes financed jointly bytheFund andspecific public budgetary
provisions inMember States .Themajor part oftheFund 'sresources must
beallocated tothesupport ofthese activities ,which should be
identified under twoseparate Articles within asingle Chapter oftheBudget .
Theactivities described inpoint 2.2(c ),which aredifferent innature and
origin from theother operations oftheFund ,should come under aseparate
Chapter intheBudget .
Although themajority ofMember States' manpower policy measures under 2.2(a)and
2.2(b )maybecarried outbypublic bodies ,andmany oftheexperimental
projects under 2.2(c)may beundertaken byprivate organisations ,itwould
notbeappropriate toestablish separate criteria onthis basis ..Itis
therefore considered that norestrictions should beplaced onthetypes
ofbodies eligible forFund support :both public andprivate bodies should
continue tobeeligible ,asatpresent .
Categories ofpeople elifoible for Fond aid
Indetermining which categories of .people should beeligible forFund aid ,
thestarting point isailthose seeking employment andthose groups
known tobeespecially susceptible tounemployment . Individuals *
employment prospects canbeimproved through vocational preparation ,training
orretraining ,through incentives toemployers (recruitment subsidies )and
through aids togeographical mobility .AsaCommunity instrument ,theFund
hasaparticular responsibility tosupport thefree movement ofworkers
between Member States andtheintegration ofmigrant workers within the
host country .Thefamilies ofmigrant workers should therefore also con­
tinue tobeeligible forFond aid .Itistherefore proposed that the

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following categories ofpeople should continue tobeeligible forFund aid :
–unemployed orunder–employed people andthose threatened with
"unemployment ;
–other people seeking employment such aswomen whowish toresume
work ,anddisabled people capable ofworking intheopen economy ;
~people whochange their place ofresidence inorder towork ina
Member State ,together with members oftheir families .
3.2 Inaddition thefollowing categories should bespecifically
included amongst those eligible :
.–young people under theageof18whohave completed compulsory
schooling ;
-people who areemployed insmall andmedium-sized undertakings andwho
require retraining owing totheintroduction ofnewtechnology which
substantially alters production ormanagement techniques inthose undertakings ;
-people tobeengaged inthefollowing intermediary occupations onthe
labour market :trainers ;vocational guidance orplacement experts ;
development agents .
•/.

Young people
Thechange ineligibility asregards young people under 18toinclude
young people whoarenotnecessarily registered job-seekers isnecessary
inorder toenable theFund toassist Member States more effectively
inrationalising anddeveloping existing training provisions foryoung
.people whohave completed compulsory schooling ,asmentioned inpara 2.2(b )
above .Inthepast ,young people under 25have been eligible fortwo
types ofassistance from theFund :vocational training (principally for
first job-seekers )andforjobcreation through wage subsidies .However ,
theFund v:as specifically precluded from financing the initial training
ofyoung people immediately after thecompletion ofcompulsory schooling
andtherefore restricted itssupport toprogrammes specifically designed
forthose registered asunemployed .Byremoving this Limitation ,the
Social Fund would beable tosupport efforts tomake available abroad-based
vocational training including work experience toallyoung people atthe
end ofcompulsory schooling .
This provision would notdetract from thesupport given bytheFund to
measures onbehalf ofyoung jobseekers aged between 18and25.They
would beeligible under thesame conditions asatpresent and would
becatered forwithin thegeneral area ofFund activity referred tounder
para 2.2(a )above .

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Smaltandmedium-sized undertakings
3.4TheCommissionsuggestsaspecificprovisiontoenabletheFundtosupport
thetrainingorretrainingofemployeesofsmallandmedium-sized
undertakings (SMU)whichismadenecessarybytheintroduction ofnew
technologyintoproductionormanagement .Thisprovisionwouldnot
affecttheFund'scapacitytointerveneonbehalfofemployeesinother
firmswhentheyfindthemselvesthreatenedwithunemployment asaresult
ofchangesintheemploymentsituation,stemmingforinstancefrom
technological developments .Thereisnevertheless atwo-foldjustification
foraparticularemphasisonsmaller-scale undertakings .First,although
thesefirmshaveconsiderable potentialforindustrialinnovation,they
oftenrequireextraincentives,particularly intheformoftraining
provisions,tofacilitatetheadoptionofnewtechniquesandprocesses.
Butsecondly,andmoreimportantinthecontextofemploymentwithinthe
Community,experience showsthatsmall-scale firmshaveaconsiderable
capacityforjobcreation.Inmanyareassmallfirmsaresteppinginto
fillthegapsleftbytheclosureoftraditional largeemployerssuchas
steel,textileandshipbuilding firms.Thediversityofsmallfirms'
activitiesprovidesasoundbaseforindustrialrestructuring byensuring
thatareasarenolongerheavilydependentonasingleindustry.
Trainers
3.5HithertotheFundhasbeenabletosupportthetrainingandemployment
oftrainersonlyinsofarasthiswasanintegralpartofprogrammes
onbehalfofspecificcategoriesofworkers.Butanadequatesupply
ofqualifiedtrainingpersonnelisimportantbothforthequalityand
quantityoftraining.TheFundshouldthereforebeable,inspecial
cases,toassistprogrammesforthetrainingoftrainerswhicharenot
relatedtothesubsequenttrainingofparticularworkersbutwherethere
isaspecificshortageoftrainers,able,forinstancytocombine
teachinginbusinessandtechnicalskills.

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Vocationalguidanceandplacementexperts
3.6TheCommissionproposesthat,incasesofobviousneed,theFundshould
beabletoassistwiththetrainingofexpertsofthevocationalguidance
andplacementservices.InsomepartsoftheCommunity,theseservices
arenotalwayssufficiently developedtoensurethatthelabourmarket
functionsreallyefficiently .Adequatetrainingfortheexpertsinvolved
isnecessaryiftheseservicesaretobeimprovedandoperatemoreeffectively
forinstanceinmatchingworkerstojobsandfillingvacancies.
Development agents
3.7TheCommissionseesarolefordevelopmentagents,tostimulatejobcreation
atlocallevelparticularly insmallandmedium-sized undertakings .Managers
ofsmallfirmshavetrainingneedswhichareusuallymuchbroaderandless
easilydefinedthanpurelyvocationalskills.Peoplestartingsmallfirms
andcooperatives needadviceonmarketing,raisingcapital,accountancy and
commercialandemployment law.
Inmostcasesitwouldbesensibleforsuchservicestobeprovidedata
locallevel,bydevelopment agents,soastobebestadaptedtotheneeds
ofthesmallfirmswithinagivenarea.HithertotheFundhasbeenable
tosupportthetrainingofsuchspecialistadvisersonlyonalimitedscale,
wherethisresultedinaclearandnecessaryimprovement inlocal-training
structures .TheCommissionconsidersthattheavailability ofFund
aidforsuchagentsshouldbeincreasedbecauseoftheirpotentialto
generateemployment .
3.8ThroughtheGuidelinestheCommissionwouldidentifythecircumstances
inwhichtheFundcouldassistoperationsinvolvingtrainers,vocational
guidanceandplacementexperts,anddevelopmentagents.Prioritywould
begiventooperationsdesignedtoremedyclearlyidentifiedshortcomings
inspecificlabourmarketsandtoprojectswithaclearpotentialfor
jobcreationinareasofhighunemployment .

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4.Selectionofapplications forfunding
4.1AtpresenttheFund'srulesprovideforasubstantialpartofitsassistance
tobedirectedtothosepartsoftheCommunitywhichareeligibleforaid
fromtheEuropeanRegionalDevelopment Fund.InadditiontheCommission
hasestablished alistofregionsofhighyouthunemployment andhasgiven
priorityundertheyoungpeoplefieldofinterventiontoapplications from
thoseregions.However,theadoptionoftheCommission'ssuggestionto
abolishseparatefieldsofintervention wouldnecessitate arevisedsystem
ofgeographical priorities.Theessentialcharacteristics ofsucha
systemshouldbe:
-toconcentrate Fundaid-,on.thepartsoftheCommunitywhere-it^ismost
needed,thelevelofneedbeingestablished byanobjectiveassessment
both-ofthelevelofunemployment andoftheunderlyingeconomicresources
ofanareaasindicatedbyitsGDPperhead;
-toprovideamethodofallocatingtheFund'slimitedresourcesinthe-
mostefficientandequitablemanner.
4.2Tofeettheserequirements theCommissionproposestocompileanewindex
toreplacetheexistingcriteriaforgeographical selectivity .Thisindex
wouldgiveanequalweighttothefollowingfourcomponents :GDPperheadof
population,overallunemployment,long-termunemployment andyouthunemployment.
Theaimistoidentifythesecomponentsforsmallergeographical unitsthan
thosecurrentlyusedforCommunitypurposes.Inpracticethiswouldmean
movingfromthelargelevelIIregionsforwhichCommunitystatistics
arecurrentlycompiledandestablishing arankingoftheCommunity'slevel
IIIregions(1).ThisrankingwouldbepublishedintheOfficialJournal
wellbeforetheannualclosingdateforthesubmissionofapplications
./.
(1)ThefollowingarelevelIIIregions:Belgium-arrondissements:
Denmark-amtskommune;France-departements ;Ireland-planningregions;
Italy-provincie;Netherlands-regio's;UnitedKingdom-counties.
LevelIIIhasnotbeendefinedforGreece.ForthepurposesoftheFund
itshouldbepossibletouseArbeitsamtsbezi rkeforGermany.
TheGrandDuchyofLuxembourgisconsideredasalevelIIIregion.

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totheFund,soastoenablepotentialapplicantstogaucjetheirchances
ofreceiving Fundaid.TheCouncil,actingonaproposalfromtheCom­
mission,woulddesignatetheregionstobeplacedattheheadofthe
list,i.e.theregionswiththemostacuteproblems.This
provisionisnecessarytosafeguardthepositionofregionswhichcurrently
benefitfromtheFund'sincreasedrateofintervention .Thedesignation
couldbereviewedinthelightofsubsequent economicandlabourmarket
developments andofnewaccessionstotheCommunity.
4.3inviewoftheneedtoensureamoreeffectiveconcentration ofFund
resourcesintheareamostaffectedbyunemployment ,theCommission
attachesgreatimportance totheimprovedcollection ofstatistics to
facilitate thecompilation ofanindexbasedonsmallergeographical units
thantheregionscurrently used.UntilMemberStatesmakearrangements
tosupplythenecessaryinformation forlevelIIIregions,theCommission
willusethebestestimates derivedfromtheavailablestatistics .Never­
theless,itisunlikelythatsucharefinementofthemethodofidentifying
areaswillenableaccounttobetakenofallthoseareasintheCommunity
withemployment problemsjustifying Fundintervention .TheCommission
thereforeconsidersthatitshouldretaintherighttotakeanymeasures
necessaryinordertoensurethattheFundmaycontinuetointervene,in
exceptional cases,onbehalfofclearlydefinedoperationsrelatingto
localunemployment 'blackspots'which,forthepurposesofthestatistics
usedtocompiletheindex,aredisguised bysurrounding areaswithless
seriousproblems.
4.4Theproposedmethod,withitsaccentontheidentification ofsmaller
geographical areas,isintendedtotakeaccountoftheincreasein
structural unemployment incertainareas,asaresultmainlyoftherapid
declineoflarge-scale laboui–intensiveindustries .TheERDFregionsin
whichtheFund'saidisatpresentlargelyconcentrated arecharacterised
bystructural unemployment oflongstanding;bysubdividing thelarge
regionsintosmallerareasandintroducing theelementofoverallunemployment,
whichisfarfrombeingsimplyanindicatoroftheeconomiccycle,theFund
willbecomeabletocontributetoresolvingcertainproblemswhicharenot
coveredbythecurrentregionalpriorities.Thedeclineofimportantsectors

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ofactivityhashadseriousconsequences eveninmoreprosperousparts
oftheCommunitywhicharenowfacedwiththeneedtoundertakemajor
industrialrestructuring whereformerprincipalactivitiesaredisappearing .
Theproposedindexmustenabletheareaswiththemostseriousemployment
problemstobeidentifiedandincludedamongstthoseabletobenefitfrom
Fundintervention .
4.5Theindexwouldbeusedtoclassifyapplications onbehalfofyoungpeople
under18andforoperationsformingpartofnormallabourmarketpolicy
(cf.points2.2(a)and(b)above).Themethodofusingtheindexwouldbeas
follows:theCommissionwouldidentifythoseschemesmeetingthecriteria
forprioritysetoutintheGuidelinesforthemanagementoftheFund.The
commitments budgetwouldthenbedistributed amongthepriorityapplications,
beginningwiththeregionsattheheadoftheindexandworkingdownuntil
thepointwasreachedwherethebudgetwasexhaused.Suchasystemhasthe
advantageofconcentrating Fundaidwhereitismostneeded,butalso
avoidsaproblemofthecurrentFundwherebythereareofteninsufficient
resourcestomeetalltheapplications inagivenlevelofpriorityand
Fundaidisspreadthinlyamongstallapplications .
4.6Itisnotintendedthattheoperations,studiesandevaluationsspecified
inpoint(c)ofpara2.2aboveshouldbesubjecttotheseregional
criteria.ThelogicforFundsupportforexperimental andinnovativeschemes
isdifferenttothatformoreconventional labourmarketmeasures.Fund
supportfortheformerisdesignedtosupportsmall-scaleactionresearchand
thedevelopmentofinnovativeapproachesinemploymentandvocationaltrai­
ningpolicy.Theexchangeofexperienceandthedissemination ofinformation
wouldbefurtherdevelopedinordertoenablepolicy-makers throughoutthe
Communitytodrawontheresultsofsuchprojects.Theconsiderations of
concentration inthosepartsoftheCommunitywiththegreatestemployment
problemswouldnotthereforeapplytotheseprojectsoflimitednumberand
sizeaimedatimprovingstandardsthroughouttheCommunity.

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5.GuidelinesforthemanagementoftheFund
5.1TheCommissionproposesthatitshouldcontinuetodrawupthe
Guidelinesannually.Thesewouldcontainqualitativecriteria,to
beusedincombinationwiththeregionalindex,andtheirregular
revisionwouldenableprioritiestobeadjustedtomaintainclose
coordination withCommunitytrainingandemploymentpolicies.
TheywouldalsoensurethatFundinterventions wereconsistent
withotherCommunitypolicies,suchasthoserelatingtoindustrial
sectors.TheCommission'sserviceswoulddiscusstheGuidelinesin
outlinewitheachMemberStatebeforetheyarefinalisedbythe
Commission.TheGuidelineswouldinpracticeservetwopurposes:on
theonehandtheywouldcontaingeneralcriteriareflectingbroad
policyandmanagementobjectiveswhichwouldpermittheidentification
andfinancingofoperationstocounteractthemostseriousimbalances
inemployment;ontheotherhandtheywouldcontainveryspecific
criteriareflectingcertainmoreambitiousCommunitypoliciesto
enableexceptionally highqualityoperationstobeidentified which
couldthenbemoveduptheindexandconsideredforfinancingwitha
higherdegreeofprioritythanwouldotherwisehavebeenthecase.
Althoughthelatterprovisionwouldbeintendedtohaveonlyalimited
impactontheclassification ofapplications,itwouldprovideanaddi­
tionalmeansfortheFundtocontinuetosupportinnovatoryprojectsand
certainoperations (e.g.thoseonbehalfofmigrantworkersandwomen)
whicharetraditionally locatedinareasoflowpriority.
InapplyingtheGuidelinestheCommissionwillensurethatclose
coordination ismaintained betweentheFundandotherCommunity
financialinstruments inorderbothtoassuretheoptimumuseof
availableresourcesandtoavoidanyriskofoverlap.

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6.Ratesofintervention
6.1Underthecurrentrules,theFundfinances50%ofeligibleexpenditure
inthecaseofoperations bypublicauthorities andbodiesgovernedby
publiclaw.Inthecaseofprivatesponsors,theFundcontributes an
amountequaltotheshareofexpenditure bornebypublicauthorities .
IncertainareasoftheCommunity-currentlytheFrenchoverseasdepartment,
Greece,Greenland,Ireland,theMezzogiorno andNorthernIreland-the
rateofintervention isincreasedby10percent(i.e.to55percent
ofeligiblecosts).Theseratesofintervention bytheFundappear
tobeadequateanditisproposedthattheywouldberetainedfor
operationscarriedoutinthetwoareasofactivitydescribedin
paragraph2.2(a)and(b)above.Asregardstherateofintervention
bypublicauthorities,theCommissionsuggeststheadoptionofamore
flexibleapproach:insteadofamatchingcontribution ,itisproposed
thatpublicauthorities shouldcoveraminimumof30percentof
eligiblecosts,therebyensuringthatcertainworthwhileprojects
withaccesstoothersourcesoffinancearenotpreventedfromgoing
aheadthroughlackofcorresponding publicfinance.
6.2OnedeparturefromtheFundratesofintervention proposedabovewill
benecessaryinrespectofoperationswheretheFund'scontribution is
tobemadeonthebasisofflatratesratherthanasapercentage
ofrealcosts.Inthefirstinstance,itisproposed(inthe
implementing Regulation )thatflatratesshouldbeappliedinthe
caseofemploymentaids.FlatratesshouldbecalculatedinECU
andexpressedasanamountperpersonperunitoftime,(asis
currentlythecasefortheceilingratesforemploymentaids
concerningyoungpeople).Theintroduction offlatratesforother
typesofexpenditure wouldbringconsiderable advantagesinterms
ofadministrative efficiencyandsimplicitybothforFundapplicants
andfortheFund'smanagement.TheopportunityfortheCommission
tosubmitfurtherproposalstotheCouncilinthisrespectistherefore
providedfor.

-17-
6.3Asregardstheoperationsandstudiesreferredtounderparagraph2.2(c)
above,therewouldbenorequirementforapubliccontributiontosuch
operations,asispresentlythecaseforFundpilotprojectsandstudies.
Forthespecificinnovatoryprojects,itisproposedthattheFund's
normalrateofintervention (50percentand55percent)maybe
increasedbyupto40percent(i.e.70percentand77percent).
Theintentionofthischangeistoencourageinnovatoryexperiences
carriedoutbyprivatebodies.Asregardspreparatorystudiesand
evaluations,theFundshouldcontinue,asatpresent,tobeableto
covertheentirecost,ifnecessary.
Conclusions
7.Thechanges proposed would remove existing statutory rigidities inthe
Fund andmake itamore flexible instrument ofCommunity employment
policy .Theestablishment ofabroad basis ofeligibility would enable
precise priorities forCommunity policies tobeadapted andmodified
inresponse tothelatest developments andpolicies affecting employment
andvocational training *Theconcentration ofresources instructurally
disadvantaged regions would bemaintained andtheFund would continue to
support vocational training ,employment promotion andthegeographical
mobility ofworkers ,wherever possible with acloser relationship to
labour market needs .Specific provision would bemade tosupport new
operations flowing from Community action programmes andtopromote
experimentation andinnovation inlabour market measures .

CouncilDecision 82//EECof
onthetasksoftheEuropeanSocialFund
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle126thereof.
HavingregardtotheopinionoftheCommission,
Havingregardtotheopinion'oftheEuropeanParliament (1),
HavingregardtotheopinionoftheEconomicandSocialCommittee (2),
WhereasCouncilDecision 71/66/EECof1February1971onthereformofthe
EuropeanSocialFund(3)asamendedbyDecision77/801/EEC(4)hasbeenthe
subjectof-areviewofthebasisonanopinionoftheCommission asprovided
forinArticle11ofthatDecisionwhichitwouldbeappropriate toreplace
byanewCouncilDecisionestablishing rulesfortheFund;
WhereasthetaskoftheFundistoparticipate inparticular inthefinancing
ofvocationaltraining,employment promotion ar.dgeographical mobility,it
beingunderstoodthatitsactioncannotcontravenetheTreatyprovisions
regardingStateaids;
WhereasincarryingoutitstaskstheFundshouldassistintheimplementation
ofCommunityemploymentpoliciesandshouldcontributeinparticulartothe
socialandvocationalintegrationofyoungpeopleanddisadvantaged workers,t
theadaptationoftheworkforcetolabourmarketdevelopments andtechnologia
change,tothepromotionofnewemploymentopportunities andtothe
reductionofregionalimbalances;
Whereasthemeansshouldbeprovidedtofinanceoperations whicharcconcerned
withspecificaspectsofCommunityactionprogrammesintheareaofemployment
policyandvocationaltrainingandwhichaimatpromotinginnovatorypolicy
inareasofcommoninteresttoMemberStates;
(1)OJNo.L28of4.2.1971p.15
(2)OJNo.L337of27.12.1977 p.8
(3)OJNo.L28of4.2.1971,p.15
(4)OJNo.L.337of27.12.1977,p.8

-2-
(
Whereas toenable theFund tobecome amore active instrument insupport
ofjobcreation policies ,therange ofpeople eligible forassistance
should beenlarged soastoextend thepossibility ofsupport tothose
working astrainers ,vocational guidance orplacement experts ,and
development agents ;
Whereas inorder todevelop employment theFund must take aparticular
effort onbehalf ofsmall and .medium –sized undertakings modernising thair
management orproduction techniques onthe "basis ofnewtechnology
Whereas itisappropriate ontheone hand tomaintain anincreased rate of
Fund intervention foroperations tofurther employment inthemost
disadvantaged regions oftheCommunity ,andontheother toprovide
increased assistance foroperations ofparticular significance forthe
development ofCommunity policies ;
Whereas inorder tosimplify theprocedures ofgranting Fund assistance ,
flat rates should beestablished inECU forthe whole ofthe Community
inrespect ofcertain types ofexpenditure ;
Whereas the Fund 'ssupport foroperations carried out inMember States
within the framework oftheir labour market policies must beconcentrated
where there arethegreatest imbalances inemployment ;
Whereas theCommission shall beresponsible fordrawing uptheguidelines for
themanagement ofthe Fund soastoensure amore effective concentration
onoperations inaccordance with Community priorities andwith related
action programmes inthearea ofemployment orvocational training :
HAS ADOPTED THIS DECISION

Article 1
1.The Fund shall assist intheimplementation ofpolicies designed
toequip theworkforce with skills required forstable employment and
togenerate employment opportunities .Itshall inparticular contribute
tothe social andvocational integration ofyoung people anddisadvantaged
workers ,totheadaptation oftheworkforce tolabour market developments
and totechnological change and tothe reduction ofregional imbalances .
2.The Fund shall participate inthefinancing ofoperations concerning
(a)vocational training andguidance
(b)recruitment andwage subsidies
(c)re.'settlement andsocial integration inconnection with geographical mobil
(d)technical services and advice onemployment creation .
Article 2
Fund assistance shall begiven foroperations carried outboth bypublic
bodies andbyindividuals orentities governed byprivate law .The
relevanl Member States shall guarantee thesuccessful completion ofthe
operat ions .
Article 3
1.Fund assistance maybegranted foroperations carried out inMember
States within theframework oftheir training and labour market policies .
These operations shall include those concerned with theextension of
training provision foryoung people immediately after their completion
ofcompulsory schooling .

2.Fundassistance mayalsobegrantedforspecificoperations,
preparatory studiesorevaluations intendedto
(a)facilitate thelaunchingofinnovatoryoperations,notablyinthe
application ofaCommunityprogrammeor
(b)testnewmethodsor
(c)promotethedissemination ofexperience.
Article 4
1.Fundassistance maybegrantedonbehalfofallpeopleseekingworkand
particularly onbehalfof:
(a)unemployed people,thosewhoarethreatened withunemployment or
whoareunderemployed ;
(b)young-peopleundertheageof18yearswhohavecompletedcompulsory
schooling;
(c)womenwhowishtoreturntowork;
(d)disabled peoplewhoarecapableofworkingintheopenlabour
Market.
2.Fundassistance mayalsobegrantedonbehalfof:
(a)peoplewhoareemployedinMallandmedium-sized undertakings andwho
requireretraining owingtotheintroduction ofnewtechnology which
substantially altersproduction ormanagement techniques inthose
tfidertakings ;
(b)ptopletobeengagedastrainers,vocationalguidanceorplacement
experts,ordevelopment agents;
(c)peoplewhomovetotakeupworkinaMemberState,together
withaenbersoftheirfamilies.
Article 5
1«Fundassistanceshallbegrantedattherateoffiftypercentofel<3111
expenditure .

-5-u
2.Inthecaseofoperationstofurtheremployment inregionswherethereisan
especially seriousandprolongedimbalanceinemployment,suchregions
tobedefinedbytheCouncil,actingbyaqualifiedmajorityona
proposalfromtheCommission,Fundassistanceshallbeincreasedby
tenpercent.
3.Inthecaseofoperations underArticle3paragraph 2,assistance shall
beincreased byfortypercent.Assistanceforthepreparatory
studiesorevaluations specifiedinArticle3,paragraph 2,maycover
thetotaleligibleexpenditure .
A.Inthecaseofoperations underArticle3,paragraph 1,thefinancial
contribution ofMemberStates'publicauthorities shallbeequalto
atleastthirtypercentofeligibleexpenditure .
5.Forthetypesofexpenditure,laiddownbytheCouncil,actingbya
qualifiedmajorityonaproposalfromtheCommission,Fundassistance
shallbecalculated onthebasisofflatratesestablished fortheCommunity
asawholeinECUperpersonandperunitoftimeforeachtypeofexpenditure .
6.Fundassistanceshallnotresultinfinancinginexcessofactualexpenditure .
Article 6
1.Fundassistanceshallbegranted,untilthebudgetisexhausted,tooperations
tofurtheremploymentinregionswiththegreatestimbalancesinemployment.
2.Inordertoimplementparagraph 1abovetheCommissionshall,before1May
ofeachyear,drawupalistclassifying theregionsoftheCommunity,at
thelowestlevelpermittedbyCommunitystatistics,takingaccountbothof
economiccapacityandoftheemploymentsituation asthesearereflectedin
overallemployment,inlong-termstructural unemployment andinyouthunemploy­
ment.TheCommissionshallpublishthelistintheOfficialJournalofthe
EuropeanCommunities .TheCouncil,actingbyaqualifiedmajorityonaproposal
fromtheCommission,maydeterminetheregionstoappearattheheadofthat
list.
./.

-6-1
3.TheCommission mayexceptionally alsograntaidfromtheFundforoperationsto
furtheremployment inareasforwhichthecompetentauthorityin
theMemberStatehasidentifiedanunemployment rateequaltonotless
thanthreetimesthenationalaverage,irrespective oftheclassification
onthelist,providedforinparagraph 2,oftheregionsinwhichthese
areasarelocated.
4.TheseprovisionsshallnotapplytotheassistancespecifiedinArticle3,
paragraph2.
Article7
1.TheCommissionshalladopt,before1Mayofeachyearandforthethree
followingfinancialyears,theguidelinesforthemanagementoftheFund
whichshalldeterminethoseoperationstobegivenpriorityinaccordance
withCommunitypoliciesandinparticularwithactionprogrammesinthe
areaofemploymentorvocationaltraining.
2.TheCommissionshallinformtheEuropeanParliamentandtheCouncilofthe
Guidelines andshallpublishthemintheOfficialJournaloftheEuropecin
Cornmunities.
Article8
TheassistanceprovidedforinArticle125oftheTreatyshallnolonger
begranted.
Article9
1.ThisdecisionshallbepublishedintheOfficialJournaloftheEuropean
Communities andshallenterintoforceon1January1983.
2.TheDecision71/66/EEC,asamervdedbyDecision77/801/EEC,ishereby
repealed.However,thatDecisionandtheDecisionstakenbyvirtueof
Article4cfthatDecision,shallremaininforceinrespectofoperations
forwhichapplicationsaresubmittedbefore1April1983.
DoneinBrusselson
fortheCouncil

Proposal
foraCouncilRegulationtoimplement
CouncilDecision82//EEConthe
tasksoftheEuropeanSocialFund

ProposalforaCouncilRegulationtoimplement
CouncilDecision82//EEConthetasksofthe
EuropeanSocialFund-Explanatory Memorandum
Introduction
1.InitsopiniononthereviewoftheSocialFund,togetherwiththeaccompanying
draftforthebasicdecisionontheFund'stasks/ theCommission
hassetoutitsgeneralpolicyobjectivesfortheFund.Initsproposalfora
regulationtoimplementthatdecisiontheCommissionhasconcentrated onthe
majoradministrative provisions whichhaveadirectbearingonthefinancial
shapeofFundinterventions ..Suchfurtheradministrative arrangements asmay
benecessaryareoflesssignificance andmaybedealtwithbymeansof
Commissiondecisions.TheproposedregulationisintendedtoreplaceCouncil
Regulation (EEC)No.2396/71C1)asamendedbyRegulation (EEC)No.2893/77(2)
andCouncilRegulation (EEC)Mo.858/72(3)asamendedbyRegulation (EEC)
No.2894/77(4).
Article 1
2.ThefirstArticledealswiththetypesofexpenditureeligibleforFund
assistanceandcorrespondstoArticle3ofRegulation2396/71asamended.
TheCommissionproposesasimplification andrationalisation oftheeligible
expenditure undertheFund'scurrentrules.Allthemainformsofeligible
expenditure undertheexistingrulesaremaintainedbutinrevisedforms.
Certainminorcategoriesofexpenditure whichhaveeithernotbeenimplemented
orwhichhaveseldombeenusedareabolished.Allexpenditure whichisnot
specifically declaredeligiblebythisArticleisbyimplicationineligible.
3.Themostimportanttypesofexpenditure,involumeterms,arethosein
respectofvocationaltraining.Theyareavailableforallthecategories
ofpeopleeligibleforFundsupportandaredividedinto(a)trainees'
incomesand(b)allothercostsinvolvedinrunningtrainingcourses,
includingdepreciation costsofbuildingsandequipmentand,inthecase
ofthevocationalintegrationofdisabledpeople,thecostofadapting
jobs.
(1)OJNo.L249of10.11.1971,p.54
(2)OJNo.L337of27.12.1977,p.1
(3)OJNo.L101of28.4.1972,p.3
(4)OJNo.L337of27.12.1977,p.5

ThepresentFundhasthreemain"typesofemploymentaid:onefor
newly-engaged workersintheregionseligibleforassistancefrom
theRegionalDevelopmentFund(Article3(l)(e)ofReg.2396/7*0an<i
twoforyoungpeopleunderCouncilRegulation(EEC)No.3039/78of
18December 1978(5).Thesearereplacedbythreenewtypesofaid,
oneforrecruitment premiumsforpeopleaged18andover;oneforthe
employmentofthoseoutofworkformorethantwelvemonthsonprojects
forthecreation -ofadditionaljobswhichfulfilapublicneed;andone
forassistingintheremuneration ofdevelopmentagents.Allthree
wouldbelimitedtoamaximumperiodoftwelvemonthsperperson
benefitting fromFundaid.
Therecruitment premiumsforpeopleaged18andoveraresimilartothe
twotypesofaidcurrentlyavailabletopromotetherecruitment ofyoung
peopleunder25andofworkersinregionswithaseriousandprolonged
imbalanceinemployment (ERDFregions).Infutureasingleformof
recruitment premiumwouldbeavailable.Farfrombeinganoperatingsubsidy,
suchassistanceshouldcontinuetobeusedtoencouragetheselectivegranting
ofrecruitment premiums:assistance wouldeffectively bereservedforyoung
peopleagedbetween18and25,women,disabledpeopleandthoseunemployed
foroversixmonths.Asatpresent,recruitment shouldbeintonewlycreated
jobslikelytoenableworkerstoimprovetheirvocationalqualifications
throughadditionaltrainingandworkexperience .TheCommissionshould
continuetoincludepreciseprioritiesintheGuidelinesforthemanagement
oftheFundfortheuseofrecruitment premiums.
Theaidforemployment onprojectsofsocialbenefitissimilartothe
othertypeofaidforyoungpeopleundertheexistingrules.However,
theCommissionbelievesthatsuchaidshouldbesadeavailabletoadult
workersasweJlasyoungpeople,butonlyforthosewhohavebeenunemployed
formorethan12months.Thisrestriction
isnecessarytoensurethatsuchprojectsdonotabsorbanexaggerated
shareoftheFund'sresources.Thistypeofaidisintendedtohelpthose
whoaredifficulttoplaceinemploymentbecausetheyhavebeenunemployed
foralongperiod.
(5)OJKo.L361oi'23.12.1978,p.3

-3- 7
7.Theproposedincomesupportfordevelopmentagentsfollowsfromthe
suggestedextensionofeligibilitytoincludethem(cf.article4(f)of
theCommission'sdraftbasicdecision).Theintentionistoassistthe
firsttwelvemonthsofprogrammestocreatejobsthroughthestimulation,
developmentandcounsellingparticularlyofsmallfirmsandcooperatives]
8.FinallytheArticleprovidesforexpenditure onthesocialandvocational
integrationofmigrantworkersandtheirfamilies,andontheoperation
ofstudiesandpilotprojects,,tobeeligibleforFundsupport.Thisis
acontinuation oftheexistingpositionandderivesfromthecategories
ofpeopleandtypesofoperationdefinedaseligibleinthedraftbasic
decision.
Article2
9.This.Articlecontainsprovisionsrelatingtoflat-ratepayments.
Article5(5)ofthedraftbasicdecisionenablestheCouncil,acting
onaCommissionproposal,todeterminecertaintypesofexpenditure
forwhichtheFundwillpayafixedamount,ratherthan50%ofthereal
cost.Thepurposeofflat-ratepaymentsistosimplifythefinancial
aspects'ofapplications andofpayments,both forapplicantsthemseIvesandforthe
fund.Themaximumsiniplificationwouldbeachievedbyadoptingflatratesfor
alltypesofexpenditure .However,analysisofexistingFundapplications
showsverylargevariationsinthedifferenttypesofexpenditure .The
immediateapplication oftheflat-ratesystemwouldthereforeresult
inanomalousandarbitrarylevelsofFundsupportforsomeapplications .
Accordingly theCommissionproposesthattheflat-ratesystemshouldbe
appliedinitiallytoexpenditurerelatingtoemploymentaids(Article1
(c)oftheproposedregulation).

AsafeguardisprovidedbyArticle5(4)oftheCommission'sdraft
basicdecision.Thisprovidesthatforoperationsw.ithintheframeworkof
MemberStates'manpower .policies,whethercarriedoutbypublicorprivatebodi£
thepublicauthoritycontribution mustequalatleast30%ofthetotaleligible
expenditure .InadditionArticle5(6)ofthedraftdecisionprovidesthatthe
Fund'scontribution mustnotleadtofundinginexcessoftherealcostofanoperation
Thismeansthatitmayinsomecircumstaricesbenecessarytoreducetheamountpaid
bytheFund-whetherthisamountisaflatrateor50%offorecast
eligibleexpenditure-inordertoavoidover-funding .
Paragraph .2ofArticle2setsoutthemethodofcalculating theflat-rate
amounts.Fortheexpendituretobecoveredbyaflatrate,the
averageexpenditure bornebytheFundperpersonperdayorweekwillbe
calculated fromalltheapplications submittedtotheFundduringthemost
recentfinancialyearforwhichresultsareavailableprecedingthecommence­
mentoftheregulation.Theflatrateswouldthereforebeaverages,
expressedinECU,oftheshareofcostswhichismetbythefundacross
thewholeoftheCommunity;theywouldbeupdatedannuallyinlinewith
thechangeinthecostoflivingaveragedacrosstheCommunityasawhole.
Paragraph 3providesfora50%increaseintheflatratesfor
recruitment premiums.Theobjectiveofthisprovisionistoprovide
increasedincentivesforoperations onbehalfofgroupsofpeople
ofparticularpriority.

-5-
Article3
13.ThisArticleprovidesfortheregionswhichunderthecurrentrulesbenefit
fromtheincreasedrateofFundintervention tocontinuetodosoandfor
themtobeplacedexaequoattheheadofthelistofpriorityregions.
Thisprovision,intendedtoreplacetheFund'sexistinggeographical selection
criteria, ismadebyvirtueofArticles5(2)and6(2)ofthe
draftbasicdecisionwhichenabletheCouncil,actingbyaqualified
majorityonaproposalfromtheCommission,todeterminetheregionsto
benefitfromtheincreasedrateofintervention (55%insteadof50%)and
tobeplacedattheheadofthelistofpriorityregions.Theaccelerated
depreciation ofrecentlyestablishedtrainingcentresismaintainedforthese
regions.
14.Itisintendedthatthedesignation ofGreece,Greenland,theFrenchover­
seasdepartments,Ireland,theMezzogiorno andNorthernIrelandasheading
thepriorityrankingofregionsshouldremaininforceuntilsuchtimeas
changesintheeconomicandemploymentsituationintheCommunityjustify
areviewofthisprovision,onthebasisofaoroposalfromtheCommission.
Article4
15.ThisArticleisconcernedwithproceduresforthesubmissionofapplications
forassistance.Paragraph 1providesthat,inordertobeconsidered,
applications foroperationstakingplacewithintheframeworkof-national
manpowerpolicies(i.e.thosecoveredbyArticle3(1)ofthedraftbasic
decision)mustbesubmittedbyMemberStatesbefore1Septemberoftheyear
precedingthatduringwhichtheoperationstakeplace.Atpresentappli­
cationsaresubmittedintwobatchesandthishasledtodelaysinthe
Commission'sdecisionapprovingorrefusingassistance.TheCommission
cannotjudgetherelationship betweenapplications andbudgetuntil
examinationofthesecondbatchhasbeencompleted.Thismeansthatdecisions
onmanyfirstbatchapplications mustbedelayeduntilthefinalbudget
positionisknown,atwhichpointtheCommissioncandecidewhichlevels
ofprioritycanbefinancedandtowhatextent.Asaresultofthis
inevitabledelay,theCommission'sdecisiononsomeapplications cannot
betakenuntilseveralmonthsafterthescheduledstartdate.
./.

-6-
16.Inordertoensurethatapplicantsreceiveadecisionasquicklyas^J
possible,andinmanycasesbeforetheiroperationsareduetobegin,
theCommissionproposesthatallapplications shouldbesubmittedinonebatch
during theyearprecedingthestartofschemes.Thiswouldenableall
applications tobeconsideredsimultaneously ,therebyavoidingtheproblem
ofthesecondbatch.Theadvanceofthesubmissiondatebysome7weeks,
togetherwithadministrative improvements,notablythroughtheadoption
offlatratesforsomeformsofexpenditure andthroughincreasing
computerisation ofapplications byMemberStatesandtheCommission,would
enabletheCommissiontotakeitsdecisionby31January,providedthat
theCommunitybudget,includingtheSocialFundbudget,hasbeenfinalised
by1January.Ifthebudgetisfinalisedafterthatdate,theCommission
willdecidewithin30daysoftheannouncement oftheaffinitive ,budget.
17.Theabovetimingisnotintendedtoapplytotheinnovatoryoperations
orpreparatory studiesorevaluationscitedinArticle3(2)ofthe
draftdecision.Paragraph 3ofArticle4oftheCommission'sproposed
regulation wouldenabletheCommissiontoadoptthenecessaryadministrative
arrangements forsuchschemes.Thesearrangements wouldbedesignedto
takeaccountoftheneedsofpromotersofsmall,experimental projectsand
shouldbemoreflexiblethantheprovisionsinrespectofestablished
labourmarketmeasures .TheparagraphalsoenablestheCommissiontomske
arrangements toconsiderapplications ofaparticularly urgentnature.The
objectofthisprovisionistoenabletheFundtosupportoperationswhich
conformtothecriteriaofeligibility andpriorityintheordinaryway,
but"forwhichapplications couldnothavebeensubmittedbythenormal
deadline.Suchapplications maybesubmittedwhenasuddenemergencyoccurs
whichthreatensthelevelofemploymentinanarea,forexample,adecision
toclosealargefactory.
Article5
18.Article5oftheproposedregulationmakesprovisionsrelatingto
advanceandfinalpayments.Paragraph 1providesthattheapproval
ofanapplication underArticle3(1)ofthedraftdecision(operations
withintheframeworkofnationalmanpowerpolicies)willautomatically
befollowedbythepaymentofanadvanceof60%oftheamountapproved.
Paragraph 2providesthatforapplications underArticle3(2)ofthe
draftdecision (pilotprojects,studiesandevaluations )the
Commission'sapprovalwillautomatically befollowedbyanadvanceof
40%ofthetotalaidcommitted,evenwhereoperationsareduetolast
formorethanoneyear,withafurtheradvanceof40%payablewhen

-7-
theMemberStateconcernedcertifiesthathalfoftheoperationhas
beencompleted.Forbothtypesofoperationthebalanceispayable
whentheoperationshavebeencompletedandafullreportontheir
contentandfinancialaspectshasbeensubmitted.
19.Thesearrangements foradvancepaymentsrepresentachangetothe
existingsystemwhereby,attherequestofthepromoterandMember
Stateconcerned,annualadvancesof30%maybepaidwhenanoperation
hasbegun,followedbyafurtheradvanceofupto30%whentheMember
Statecertifiesthattheplannedactivitiesfortheyearinquestion
arehalfcompleted.Theproposedchangestothissystemareintended
bothtosimplifyandreducetheadministrative burdenontheFund,
MemberStatesandapplicants,andtoovercomethecashflowdifficulties
whichsomeapplicants,notablythoserunningpilotprojectsetc.,have
encountered becauseofthedelayinreceivingalargeproportionof
theaidcommitted.
20.Suchasystemofautomaticadvancesmayleadtoaslightincreasein
theriskofoverpayments fromtheFundwhichmustsubsequently be
recovered.However,therearetwosafeguardsinArticle6(described
below):thenewrequirement forunwarranted paymentstoberepaidwith
interest,andthefactthatMemberStateshavesubsidiaryresponsibility
forsumsowedtotheFund.Thesesafeguardsareanessentialprecondition
fortheimprovedsystemofadvancepayments.
21.Paragraph4providesfortheCommissiontomakepaymentsdirectlyto
thosewithfinancialresponsibility foroperations.Atpresent
manypaymentsaremadevianationalauthorities andthiscandelay
thereceiptbyapplicantsofFundassistance.TheCommissiontherefore
proposesthatitshouldinfuturemakepaymentsdirectlytobeneficiaries
butshouldcontinuetonotifyMemberStatesofallpaymentsmadeas
atpresent.

-8-
Article 6
22.ThisArticledealswithcaseswheretheFund'sassistance isnotusedin
accordance withtheconditions laiddownintheCommission'sdecision .Para­
graph1providesthatinthesecircumstances theCommission maysuspend,
reduceorwithdrawFundassistance,afterhavinggiventherelevantMember
Stateanopportunity tocomment.Thisprovisionrepeatsthatinthe
existingrules(Regulation 858/72asamended.Article4(3).
23.Paragraph 2providesthatwherepaymentshavebeenmadewhichare
subsequently shownnottohavebeeni-.arranted,becauseoperations havenot
beencarriedouttotheextentorinaccordance withtheconditions laid
downinthedecisionapproving Fundassistance,theamountsinvolvedmust
berepaidwithinterestcalculated accordingtothebankrateobtain",nS
intheMemberStateconcernedatthetimeoftheunwarranted payment.This
sanctionisnecessarytoensurethepromptrestitution byapplicants of
Fundassistance whichtheynolongerintendtouse,sincewithoutsucha
provision advancepaymentswhicharenotusedforthepurposeintended
couldbecomeaformofsoftloantoapplicants .Undertheexistingrules,
whichdonotcontainsuchaprovision,asignificant proportion ofFund
assistance isnottakenupbyapplicants andinsomecasesadvancesmust
bepartlyrepaid.Ifrestitutions arenotmadebytheendoftheyear
followingthattowhichthedecisiongranting Fundassistance applies,then
thoseresourcesarelost.If,ontheotherhand,restitutions aremade
quickly,theycanbeusedto'financeprojectswhichwouldotherwise have
toberefused.
24.Paragraph 2alsomaintainstheprovisionsoftheexistingrules(in
Article4(3)ofCouncilRegulation (EEC)No.858/72asamended)whereby
MemberStateshavesecondaryliabilityforsumsowedtotheCommunity .
WhereaMemberStaterepaystotheCommunity anamountowedbyanapplicant,
therightsoftheCommunityinthematteraretransferred totheMember
State.Inotherwords,whereanapplicant hasreceivedanunwarranted payment
fromtheFundandtheCommission hasnotbeenabletosecureitsreturn,
-/.

-9-
theCommission mayrequiretheMemberStatetopaytheamountowed.
WhentheMemberStatehasdoneso,itacquires therighttoproceed
againsttheapplicantinquestiontorecovertheamountwhichithas
repaidontheapplicant'sbehalf.
Articls7
25.ThisArticleisconcernedwithcheckstobecarriedoutonoperations
andpaymentclaims.ThemainpurposeoftheArticleistomaintainthe
existingprovisions (inArticle5ofRegulation 858/72asamended)which
empowertheCommission'srepresentatives togowherevernecessaryandto
haveaccesstoallmaterialsanddocumentsrelatingtoapplications in
ordertochecktheaccuracyofapplications andpaymentclaims.Two
newprovisionsarecontainedinparagraph 2,whichenableschecksto
bemadebysampling,andparagraph 5,whichenablestheCommissionto
requestofficialsoftheMemberStatetocarryoutchecks,accompanied
byCommissionofficialswhereappropriate .Paragraph 2giveslegal
backingtoapracticewhichoccursunderthepresentruleswiththe
consentofsomeMemberStates-andapplicants .Samplingisthemost
efficientmethodcheckingclaimswhere,forexample,notallparticipants
inaprogrammeareeligibleforFundaidandtheratioofeligibletonon-
eligiblemustbeverified.Arandomsampleofallparticipants canbe
examinedforeligibility andtheresultingpercentagesappliedtothe
wholeclaim.
26.SinceMemberStatesthemselveshavearesponsibility toverifyappli­
cationsandpaymentclaims,itmayonoccasionsbeappropriateforthe
Commissiontoentrusttheverification ofdetailstoMemberStates,thereby -
reducingadministrative effortandavoidingduplication.Paragraph 5
providesthenecessarylegalbasisforsuchadivisionofresponsibility .
Article8
27.ThisArticlemaintainstheexistingrequirementfortheCommissionto
presentareporttotheParliamentandCouncilbefore1Julyofeach

-10-
yearontheactivitiesoftheFundduringitsprecedingfinancial
year.
Article9
28.ThisArticleempowerstheCommissiontoadoptadministrative arrangements
necessarybothfortheimplementation oftheproposedregulation andfor
allthesubsequent managementfunctionsoftheFund.
Article10
29.ThefinalArticleprovidesforcommencement on1January1983andrepeals
theregulations whichitreplaces(Nos.2396/71asamendedand858/72
asamended)whileprovidingthattheseregulationsshallremaininforce
inrespectofapplications submittedbefore1April1983.Thistransi­
tionalperiodisnecessarybecauseFundapplicantswillhaveprepared
theirapplications for1983onthebasisoftheexistingrules.
30.Paragraph3ofthisArticlecontainsatechnicalprovisiontoenable
theCommissiontore-approveunderthenewrulesanyapplications
previouslyapprovedwhichcontinueintotheperiodwhereapplications
aredealtwithunderthenewrules.Thepurposeofthisprovisionis
toensurethattheFunddoesnothavetoapplysimultaneously two
differentsetsofrulesandprocedures,eginrespectoffinalpayment
claims.Applications alreadyapprovedwouldcontinuetobefunded
fortheperiodlaiddownintneCommission'soriginaldecisionbut
wouldbesubjecttotheprovisionsofthenewrulesonpaymentforms,
methodofpresentation andverification ofexpenditure,flatrate
paymentsetc.

Proposal
CouncilRegulation (EEC)No„/82
of 1982
concerningtheimplementation ofCouncilDecision82//EEC
onthetasks oftheEuropeanSocialFund
THECOUNCILOFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle127thereof.
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament (2),
HavingregardtotheopinionoftheEconomicandSocialCommittee(3),
Whereasthetypesofexpenditure whichmaybethesubjectofFundassistance
snouldbedefined;
WhereasforthetypesofexpenditureforwhichFundassistanceisgrantedby
flatrates,themethodofcalculatingthoseflatratesmustbedetermined;
WhereastheregionsoftheCommunitywhichareeconomically andsociallyrr.ost
disadvantaged mustoeplacedattheheadofthelistprovidedforinArticle6,
paragraph2oftheDecision82//EEC;
Whereasitisappropriatetodeterminethemethodsofsubmittingandapproving
applicationsrelatingtooperationscarriedoutinMemberStateswithintne
frameworkoftheirlabourmarketpolicies;
Whereasitisappropriatetodeterminethemethodsofcheckingandmaking
paymentsinrespectofapprovedoperations;
Whereaswhenpaymentsaremadewhicharenotwarranted,theoriginalsummust
berepaidwithinterest;HavingregardtoCouncilDecision82//EECof
oftheEuropeanSocialFund(1),1982onthetasks
(1)
C2)

HAS ADOPi'ED THIS REGULATION j
Article 1
Assistance maybegranted from theFund forexpenditure inrespect of:
a)incomes oftrainees ;
b)thecosts of
–thepreparation ,operation andadministration oftra-ining courses ,
including thecost ofthetraining ofteaching staff andofdepreciation
–tramees' accommodation ,
–inthecase ofvocational integration ofthedisabled ,theadaptation
ofworkplaces ;
c)thegranting foraperiod notexceeding twelve months of
-premiums fortherecruitment ofyoung people aged 18to25,women ,
disabled people andthose unemployed forover sixmonths ,innewly
created jobs which will enable theworkers concerned toimprove their
skills through further training andwork experience ,or
–assistance towards thewage costs ofthose who ,having "been out
ofwork formore than twelve months ,areengaged onprojects for
thecreation ofadditional jobswhich fulfil apublic need ,or •
–assistance towards theremuneration ofdevelopment agents *
d)benefits designed toassist theintegration intonewsocial and
vocational environments ofpeople whomove totake upwork ina
Member State andofmembers oftheir families ;
e)carrying outpreparatory ore\raluation operations orstudies .
Article 2
*jndassistance shall begranted inflatrates fortheexpenditure
specified inArticle 1(c).
Tnefiatrates snail "beequal totheaverage ofthecosts metby
theFund across thewhole Community inrespect ofeach relevant
type ofexpenditure during thelatest financial year forwhich
results areavailable preceding theentry into force ofthis
regulation .They shall berevised inline with thechange in
thecost ofliving .

-3-
3.Theflatratesforrecruitment premiumsregardingthecategories
ofpeoplespecifiedinArticle1(c)firstindent,shallbe
increasedbyfiftypercent.
4.Before1Mayofeachyear,theCommissionshalldeterminethelevelsof
theflatratesforthefollowingfinancialyearandshallpublishthem
intheOfficialJournaloftheEuropeanCommunities .
Article3
1.OperationstofurtheremploymentintheFrenchoverseasdepartments,
Greece,Greenland,Ireland,theMezzogiorno andNorthernIrelandshall
benefitfromtheincreasedrateofassistanceprovidedforinArticle5,
paragraph 2ofDecision82//EEC.
2.Intheapplication ofArticle1(b)firstindent,thedepreciation of
trainingcentresestablished intheregionsspecifiedinparagraph 1may
becalculatedoveraperiodofsixyears,insofarassuchamethodofdeprecia
tioniscompatible withthatinforceintheMemberStateconcerned.
Insuchacase,theallowancefordepreciation shallbeconsideredfully
providedforattheendofthesixthyearaftertheestablishment ofacentre.
3.Theregionsspecifiedinparagraph 1shallappearattheheadoftheList
providedforinArticle6ofDecision82//EEC.
Article4
1.Applicationsrelatingtoexpenditure duringthefollowingyearor,inthe
caseofoperationslastingmorethanoneyear,years,onmeasures
specifiedinArticle3,paragraph 1,ofDecision82//EECmust,inorder
tobetakenintoconsideration ,besubmittedbyMemberStatesbefore
1Septemberofeachyear.
2.TheCommissionshalltakedecisionsontheseapplications before31January
oftherelevantfinancialyear.Ifthedateofadoptionofthebudget
forthatfinancialyearisafter1January,theCommissionshall
takeitsdecisionswithinthirtydaysofthatdate.
3.TheCorafflissionshalldrawupthearrangements fortheproceduretobe
followedinthecaseofapplications submittedunderArticle3,
paragraph2oftheDecision82//EECandofapplications ofanurgent
nature.

-A-
Article 5
1.Theapprovalofanapplication submittedunderArticle3,paragraph 1
ofDecision82//EECshallbefollowedbythepaymentofanadvance
ofsixtypercentoftheassistance approved.
2.Theapprovalofanapplication submittedunderArticle3,paragraph 2
ofDecision82//EEC,eveniftheapplication concernsanoperation
lasting ,formorethanoneyear,shallbefollowedbythepaymentofa
firstadvanceofanamountequaltofortypercentoftheassistancegranted ™
Asecondadvance,notexceedingfortypercent,maybepaidwhen
theMemberStateconcernedcertifiesthatthefirsthalfoftheoperation
hasbeencompletedinaccordancewiththeconditions setoutinthedecision.
3„Finalpaymentclaimsshallcontainadetailedreportonthecontent,
resultsandfinancialaspectsoftherelevantoperation.TheMemberState
shallcertifytheaccuracyofthefactsandaccountsinpaymentclaims.
ι
4.TheCommissionshallmakepaymentstothosewithfinancialresponsibility
foroperations.ItshallinformtherelevantMemberStateofallpayments
made.
Article 6
1.WhenFund .assistance isnotusedinconformity withtheconditions setout
inthedecisionofapproval,theCommission maysuspend,reduceorwithdraw
theaidafterhavinggiventherelevantMemberStateanopportunity to
comment.
2.Sumspaidwhicharenotusedinaccordance withtheconditionslaiddownin
thedecisionofapprovalmust-berepaidtogetherwithinterest ,calculated
accordingtothebankdiscountrateobtainingintherelevantMemberState
onthedayonwhichtheunwarranted paymentwasmade.TherelevantMember
Statehassecondaryliabilityforthesumstoberepaid;totheextentthat
aMemberStaterepaystotheCommunity sumsowedbythebodyfinancially
responsible foranoperation ,theCommunity'srightsinthematterare
transferred totheMemberState.

Article7
1.TheCommission maymakecheckswhereverapplications andpaymentclaims
aredrawnupandwhereveroperationsforwhichassistanceisgrantedare
carriedoutandadministered .
2.Checksonthecontentofapaymentclaimmaybemadebysamp!ing.
BeforemakingachecktheCommissionshalldetermineinadvancethe
samplesizewithreferencetothephysicalandtechnicalaspectsofthe
operationconcerned.Totheextentthatasampleleadstoareduction,this
shallbeappliedproportionally tothewholeoftheamountclaimed.
3.TheCommissionshallhaveaccesstoallsourcesofinformationnecessary
toenableittoappraiseboththeaimsandcontentofapplications andof
claims,andtheprogress,financingandresultsofoperations.Member
StatesshallmakeavailabletotheCommissionthematerialjustifying
thecertification specifiedinArticle5,paragraphs 2and3.
4.TherelevantMemberStateshallprovidetheCommissionwithanyassistance
necessarytocarryoutchecks.TheCommissionshallgivetheMemberState
duenoticeofchecks.Representatives oftheMemberStatemayparticipate
insuchchecks.
5.AttherequestoftheCommission andwiththeagreementoftherelevant
MemberState,checksmaybecarriedoutbytheco.npecentauthoritiesof
theState.Representatives oftheCommission mayparticipate insuchcheck
Article8
.TheCommissionshallpresenttotheEuropeanParliamentandtotheCouncil
before1JulyofeachyearareportontheactivitiesoftheFundduringthe
precedingfinancialyear.
Article9
TheCommissionshalldrawupthenecessaryarrangements fortheimplementation
ofthisregulation.

-6-
Article 10 4
1«ThisRegulation comesintoforceon1January1983,
2mTheregulations (EEC)No,2396/71,asamendedbytheregulation (EEC)
No.2893/77(4),No*2895/77(5)andNo«858/72,asamendedbyregulation
(EEC)No.2894/77(6),areherebyrepealed.However,theyshallremainin
forceforoperationsforwhichapplications aresubmittedbefore1April
1983.
3.Inordertoensureequaltreatmentofalloperationscarriedoutwith
assistance fromtheFund,whenthefirstdecisiononapplications istaken
underthisregulation,thedecisionspreviously takenconcerning operations
tobecarriedoutafter31December1983shallbethesubjectofanew
Commission decision.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels,
FortheCouncil
(4)OJNoL249,10.11.1971,p.54andL337,27.12.1977,p.1.
(5)0JNoL337,27.12.1977,p.7.
(6)0JNoL101,28.04.1972,p.3andL337of27.12.1977,p.5.

OpinionoftheCommission
ontherulesoftheCommittee
oftheEuropeanSocialFund

OpinionoftheCommissionconcerningtherulesoftheCommitteeofthe
EuropeanSocialFund
1.CouncilDecision
(EEC)No./82OT/82/EECof 1982andCouncilRegulation
1982laydownnewrulesgoverningthe
tasks oftheFund.ThedutiesoftheCommittee mustbe
adaptedtothosenewrules.TheCommissionthereforeconsidersthatitwould
beappropriatetoreplacetheexistingrules,inforcewithonlyminor "
amendmentssince1960,bynewrulestakingaccountoftheneedforthe
j.CommitteetoassisttheCommission intheadministration oftheFundas
providedforinArticle124oftheTreaty..
2.ThedutiesoftheCommitteeareessentially threefold :
-ithasapartinthedraftingoftheFund'sannualbudget.Inviewofboth
thegrowthoftheFundinrecentyearsandtheCommunity'snewfinancial
order,therearetwoimportantaspectstothisrole:first,sinceitis
essentialtoadaptthebudgettodevelopments inlabourmarketsandto
Communitypriorities,Committeemembersmustbeinapositiontoundertake
thoroughstudiescftheemploymentsituationintheirrespectivecountries;
andsecondlytheCommitteemusthelptheCommission byadvisingofthe
resultsofitsresearchwhichareofassistanceinmakingthepolitical
choicesinherentinthepreparation ofthebudget;
-itcanassisttheCommissiontodetermineanyoperatingrulesoftheFund.
HeretheCommitteehasanimportantroletoplayintheprocessofdrawing
upproposalstotheCouncilfornewregulations,offixingflatratesfor
Fundassistance andofdraftingtheannualGuidelinesforthemanagement ,
oftheFund;
-itcanassisttheCommissiontodecidewhichapplications forassistance
submittedbyMemberStatesshouldbeapproved.Approvalshoulddependnot
onlycnwhetherapplications conformtotherulesinforcebutalsoor.the
extenttowhichproposedoperationsareconsistentwithCo:i..nunitypriorifrcs.

-2-
3.ThedutiesoftheCommittee,whethertheyconcernthebudget,the–■'
Guidelinesorapplications forassistance,allrequirethat,fordecisions
tobetaken,allthenecessaryinformation onemploymentwithincountries,
regionsandindustrialsectorsshouldbeavailableattheCommunitylevel.
MembersoftheCommitteerepresenting Governments andtheSocialPartners
shouldthereforerelaytotheCommunityinformation ontheareasand
problemsforwhichtheyareresponsible .TheroleoftheCommitteeincreases
inimportancewiththeacceleration ofeconomicandsocialdevelopments
andastheemploymenteffectsoftheserapiddevelopments becomeincreasingly
serious;atthesametimetheadaptationoftheworkforcetonewtechnology
andtheratiobetweenjobvacanciesandunemployment playanever-growing
roleindetermining thespeedofeconomicgrowthandsocialprogres-s.In
thiscontexttherepresentatives oftheSocialPartnershaveaparticularly
importantcontribution tomake.
A.TurningtotheCommittee'smethodsofoperation,theCommissionsuggests
thatthefullCommitteeshoulddelegateitsresponsibilities forthe
day-to-daymanagementoftheFundtoasub-committee ,drawnfromits
membership,whichwouldhavehavethedutyofassistingtheCommission
toexamineapplications .ThefullCommitteewouldthenbebetterable
todevote'itselftothestudyofbudgetaryproblemslinkedtothe
implementation ofCommunitypriorities.
5.InorderfortheFundCommitteetofulfilitsdutiesproperly,theCoramission
considersthattheexistingrulesshouldbereplacedbynewstatutory
provisions,adraftofwhichisattachedasanannextothisopinion.The
proposednewrulescontainthefollowingprincipalnewelements:
-thegroupingintoasinglelegalinstrumentofalltherulesconcerning
theCommittee;
-theexerciseofthechairmanship ;
-thepossibilityofcreatingasub-committee responsibleforissuingan
opiniononapplications forassistance;
-theobligations onmembersbeforeapplications areconsideredwithin
theCommittee.S

DraftAnnex
COUNCILDECISION
OKTHERULESOFTHECOMMITTEE OFTHEEUROPEAN !SOCIALFUND
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles124and153thereof.
Havingregardtotheopinion "oftheCommission,
WhereasCouncilRegulation (EEC)No..../82of 1982(1)laysdown
newmethodsofoperationfortheEuropeanSocialFundderivingfromthetssksof
theFundasdefinedbyCouncilDecision82/.../EECof 1982(2);
Whereasitisappropriate torevisetherulesoftheCommitteeoftheSocial
Fundtoenableittobecomemoreefficienttakingaccountofthenew
methodsofoperationoftheFund;
Whereasintheinterestsofgreaterclarityandlegalcertaintyitisappropriate
fortheCouncilDecisionof25August1960ontherulesoftheCommitteeofthe
EuropeanSocialFund(3),amendedbyCouncilDecision68/188/EECof9April19tS
(4)andbytheActsofAccessionof1972and1979,tobereplacedbyanewdecisis
HASDECIDED ASFOLLOWS :
(1)
(2)
(3)0JNo.56,31.08.1960
(4)0JNo.L91,18.04.1968

-2-
'ν'
Article 1
1.TheCommitteeshallattherequestoftheCommissiongiveitsopinionon
a)proposalsanddraftsconcerningtherulesgoverningthetasksand
operationofthefund,
b)decisionsapplyingtherulesgoverningthetasksandoperationofthe
Fund,
c)theguidelinesforthemanagementoftheFund,
d)thepreliminarydraftofthebudgetrelatingtothe
Fund,
e)applications forassistance fromtheFund.
2.TheCommitteemay,atitsowninitiative,presentopinionstothe
Commission onanyquestionconcerningthetasksandoperationcfthe
Fund. I
Artiele'2
TheCommitteeshallbecomposedoftworepresentatives oftheGovernment,
tworepresentatives ofTradeUnionsandtworepresentatives ofEmoloyers'
Organizations foreachMemberState.
Article3
1.ForeachMemberState,onealternate
categoryreferredtoinArticle2.membershallbeappointedforeach

-s-
b
2.Intheabsenceofoneorbothmembers,theiralternateshallbe
automatically entitledtotakepartinthedeliberations ofthe
Committee .
Article 4
1.Thetermofofficeformembersandalternatesshallbetwoyears.
Theirappointments mayberenewed.
2.Afterexpiryoftheirtermofoffice,membersandalternates
shallremaininofficeuntiltheyarereplacedoruntiltheir
appointments arerenewed.
Article 5
1.OnlynationalsofMemberStatesmaybeappointed Committee members
oralternates .
2.Thedutiesofamemberoralternateshallbeincompatible withthose
ofamembercfaninstitution oftheEuropeanCommunities orofthe
Economic andSocialCommittee andwiththoseofanofficialofthe
EuropeanCommunities .
Article 6
1.Membersandalternates shallbeappointed bytheCouncil.Inappointing
theCommittee,theCouncilshallmakeeveryefforttoachievefair
representation withinthevariousgroupsconcerned .
2.TheListofmembersandalternatesshallbepublishedintheOfficial
JournaloftheEuropeanCommunities .

Article7
Intheeventofthedeathorresignationofamemberoralternateorifhe
isnolongerqualifiedtoserveontheCommittee,anewmemberoralternate
shallbeappointedinaccordancewiththeprocedureprovidedforinArticle
6fortheremainderofthetermofoffice.
ArticleS
ThememberoftheCommissionresponsibleforchairingthe.Committeemay
delegatethisdutytoaseniorofficialoftheCommission .
Article?
1.TheCommitteemaydelegatethedutyafissuinganopiniononapplications
forassistancetoasub-Committee composedforeachMemberStateofone
memberforeachcategoryreferredtoinArticle2.
2.TheprovisionsgoverningtheoperationoftheCommittee
shallapplytothesub-Committee .
Artic'le10
1.TheCommitteeshallbeconver.eabyitschairmaneitheronhisowninitiate
orattherequestofathirdofthemembers.
2.Noticesofmeetingsshallcontaintheagendadecidedonbythechairman
fordiscussion .TheCommitteemaydecidetodiscussothermattersfalling
withinitscompetence .
3.ThemeetingsoftheCommitteesnailnotbepublic.
Article11
Beforemeetingswheretheagendaprovidefortheexaminationofapplications
forassistance,eachMemberStateshallorganise ameeting,tobeattended
bythemembersoftheCommitteewhoarenationalsofthatState/duringwhich
shallbeconsideredanyproblemswhich,intheopinionofthesocialpartners
mightberaisedbythesubmissionofcertainapplications .Theminutesofthis
meetingshallbeforwardedtothechairmanoftheCommittee.

Article12
TheCommitteeshalltakealldecisionsbyanabsolutemajorityofthevotes
validlycast.
Article13
Onaproposalfromthechairman,theCommitteemayhearexperts.
Article14
TheCommitteeshallpresenttotheCommission asummaryoftheopinionswhich
ithasformulated;thissummaryshallalsomentionminorityopinionsexpressed
Article15
TheCommission mayconsulttheCommitteeinwritingwhenconsultation is
ofanurgentnatureandisappropriate forsuchaprocedure.TheCommittee
shallbeinformedwithoutdelayoftheopinionsexpressedbyitsmembers.
IfonethirdofthemembersoftheCommitteesorequest,thewrittenprocedure
shallbesuspendedandthechairmanshallconvenetheCommitteewithoutdelay.
jArticle16
WhentheCommissiondisagreeswithanopinioncftheCommitteeitshallinform
theCommitteewithinfortydaysofthereasonsforitsdisagreement .
Article17
TheCommissionshallinformtheCommitteeregularlyoftheprincipleaspects
ofCommunitypolicyoneconomicandsocialaffairs.
Article18
Secretarial servicesshallbeprovidedfortheCommitteebytheCommission .
TheCommissionshallmakeavailabletotheCommitteethepremisesand
facilitiesneededforitsoperation.

Artiele19
1.TheCommitteeshallestablishitsrulesofprocedure.
2.TherulesofprocedureshallbeapprovedbytheCouncil,after
consultingtheCommission .
Article20
TheCouncilDecisionof25August1960,asamendedbyCouncilDeci
68/188/EECaridbytheActsofAccessionof1972and1979,ishereb
repealed.
DoneatBrussels
fortheCouncil