16. 3. 87 Official Journal of the European Communities No C 68/17 
2.7.5. The Community ought to promote the setting up 
of professional advisory services for LEI development, and 
build on and further encourage the useful 'networking' and 
information role of ELISE. Better use should also be made of 
guidance and written material available. 
2.7.6. All persons employed or self-employed in LEIs 
ought to have access to State support in the form of 
unemployment benefit and other social insurance benefits 
both in cases of failure and of temporary inactivity. 
2.7.7. Workers' take-overs of insolvent or bankrupt 
enterprises could be facilitated by formally involving them in 
the liquidation procedures and by preventing an 
(uneconomic) shut-down of a factory by means of a jointly 
agreed care and maintenance contract procedure or through 
appropriate legal procedures in court, the interests of all 
parties concerned being taken into account with prime 
consideration being to maintain viable jobs. 
Done at Brussels, 17 November 1986. 
1. Introduction 
1.1. The Economic and Social Committee has for a 
number of years concerned itself with the subject of 
integrated development operations, in the firm belief that 
underdeveloped and particularly run-down areas need 
coordinated integrated help from various Community 
instruments and national development measures. 
1.2. On 30 April 1980 the Committee unanimously 
approved a report by Mr Bornard on the Lorraine region. 
1.3. In 1982 Mr Bornard produced another report, on 
integrated operations as a whole. The. main document dealt 2.7.8. The role of the social partners in stimulating LEIs 
and ensuring proper working conditions could be organized 
through the setting up, Europe-wide, of local and regional 
tripartite committees composed of: 
— employers, workers and representatives of other 
socio-professional groups; 
— local government representatives; 
— local prime mover groups and representatives of LEI 
projects. 
Such Committees could jointly aid, advise and constructively 
monitor the progress of LEIs emerging in their own 
communities, also as regards any ancillary employment 
resulting from large-scale infrastructure schemes provided 
for by the Council to support production activities and 
employment. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT 
with the general problems facing integrated development 
operations, whilst the appendices, drawn up by 
co-rapporteurs Mr Masprone(1), Mr Hall (2), Mr 
Ognibene (3) and Mr Kolbenschlag (4) presented an analysis 
of the operations already underway in Naples and Belfast and 
examined a number of proposed schemes for other areas. 
1.4. Following a proposal by various members of the 
Section for Regional Development, the Committee 
subsequently produced an information report on an 
(») On Naples. 
(2) On Belfast. 
(3) On disadvantaged rural areas. 
(4) On the Bavarian forest. Opinion on the criteria and efficiency of integrated operations 
(87/C 68/10) 
No C 68/18 Official Journal of the European Communities 16. 3. 87 
integrated operation for the County of Clwyd, North Wales 
(rapporteur: Mr Regaldo). 
1.5. In April 1985, acting under the fourth paragraph of 
Article 20 of its Rules of Procedure, the Committee 
authorized the Section for Regional Development to draw up 
an own-initiative opinion on the criteria and efficiency of 
integrated operations on the basis of the studies mentioned 
above. 
1.6. The Section adopted its opinion on 12 September 
1986, in the light of the report by Mr Delia Croce. 
At its 242nd plenary session (meeting of 17 December 1986), 
the Committee adopted the following opinion with two 
dissenting votes and two abstentions. 
2. Integrated operations implemented so far 
2.1. The integrated operations in Naples and Belfast, 
begun several years ago on an experimental basis, are the 
only operations which are currently being implemented. In 
addition to these two pilot operations which are carried out 
mainly under the ERDF, we should also mention the 
'integrated development programmes' in rural areas which 
mainly come under the EAGGF; these are not covered in the 
present opinion. 
2.2. The Commission has on several occasions stated its 
intention to introduce more integrated operations, but has as 
yet selected no further areas for action. 
2.3. In the light inter alia of the experiences in Belfast and 
Naples, the Committee feels that integrated operations are an 
effective instrument for promoting the development of 
certain areas. A precondition for their success is the 
involvement of the various local and national authorities, 
with use being made of all the various Community funds and 
the contributions provided for in national legislation. The 
aim of the integrated operations must be the implementation 
of a programme drawn up with the all-important 
cooperation of the socio-economic interest groups, taking 
account both of the real needs of the areas involved and of the 
Community interest. 
2.4. It is therefore necessary to advance beyond the 
pilot-scheme stage to a point where integrated operations 
become an accepted instrument of regional development. 
This instrument should be reserved for particular cases 
selected on the basis of established criteria. 3. Legal basis of integrated development operations 
3.1. Article 34 of the new ERDF Regulation (adopted in 
1984), dealing with integrated development operations, 
demonstrates their importance by giving high priority to 
ERDF financing of investment and measures in this area. 
3.2. An integrated operation, according to Article 34, 
comprises a coherent set of public and private-sector 
measures and investments, within a limited geographical 
area affected by particularly serious development lag or 
industrial or urban decline. An essential feature of integrated 
operations is the joint use of various structural financial 
instruments coordinated by the Community and by the 
national and local authorities. 
3.3. As it stands, Article 34 provides only general 
guidance; it could usefully be expanded and made more 
precise. 
3.4. The Committee urges the Commission to carry out 
its frequently avowed intention to present a draft Regulation 
on integrated operations, even though more recently it seems 
to have modified its position and now prefers to speak of an 
integrated approach in general. 
3.5. What is called for is not only a more precise 
definition of the legal basis but also improvements to the 
rules governing procedure and administration. 
The rules on integrated operations should therefore lay down 
a proper procedural code to be observed both for the 
planning stage and for the launching and administration of 
the operations. 
3.6. On 2 September 1986, the Commission presented an 
Information Memo to the Council and the European 
Parliament, entitled 'procedures and content for the 
implementation of an integrated approach'. 
This document is of special interest, and is consistent with 
some of the guidelines suggested by the Committee in the 
past. However, the document speaks throughout of 
'integrated approach' rather than integrated development 
operation. Nevertheless, since it repeats the definition given 
in Article 34, we may deduce that it does refer principally to 
integrated operations. 
It would, however, be useful to make sure that everything is 
crystal clear, including the terminology. 
16. 3. 87 Official Journal of the European Communities No C 68/19 
Lastly, the Committee asks to be formally consulted on all 
the measures taken or planned to implement the integrated 
approach. 
4. Financing of the integrated operations 
4.1. Integrated operations call for the economic and 
financial assistance of the Member States (including, where 
appropriate, the regional and local authorities), the 
Community's structural funds, and the EIB. 
4.2. The Community's financial support should 
supplement, not replace, that coming from the national and 
local authorities. 
4.3. The Community's financial contribution can be 
provided through the existing Funds, provided that use of 
them is coordinated. The provisions governing allocations 
and supervision must be standardized, and commitments 
must be made for longer periods than at present to allow for 
the time-span of the integrated operations and ensure 
continuity. 
4.4. The rules governing the structural funds need to be 
changed to allow coordination and greater flexibility, and to 
provide for assistance in cases not covered at present. 
4.5. Without prejudice to the content of the Single Act, an 
additional budget line should be provided for the integrated 
operations, similar to those provided for the Integrated 
Mediterranean Programmes (IMPs) (the existing budget line 
is only used for financing the feasibility studies). 
4.6. Whilst not being in any sense negligible, and whilst 
providing an important stimulus to planning and 
coordination, the Community's financial contributions to 
the integrated operations in Belfast and Naples have 
remained modest both in absolute terms and as a percentage 
of the overall funding. 
4.7. The Committee hopes that the proportion of 
Community to national financing will be higher in future 
integrated operations. Such an increase would be likely to 
have a disproportionately favourable impact on the 
mobilization of local resources. 
4.8. In stressing the need to increase the percentage of 
integrated operation financing coming from the Community 
funds, we must reiterate the Committee's abiding view that 
the sums allocated to the structural funds are inadequate. 
4.9. The current situation of the Community budget gives 
further cause for concern; as is clear from the report on the implementation of structural interventions in 1986, this has 
an adverse effect on the ERDF. 
5. Integrated assistance from the structural funds 
5.1. The integrated operations have hitherto received 
financial aid from the ERDF and, to a lesser extent, the Social 
Fund. The EAGGF — Guidance Section — has been tapped 
to only a minor extent and without integration, except in the 
integrated development programmes. 
5.2. However, it would be unrealistic to underestimate 
the obstacles which make it difficult under current practice to 
integrate the EAGGF — Guidance Fund — with the other 
structural funds. We must thus strongly emphasize the fact 
that the Commission Green Paper itself recognized the need 
to coordinate agricultural measures with regional 
development measures. 
5.3. The Commission recognizes the need to concentrate 
all the available funds on general goals which concern the 
whole regional economy rather than just agriculture, and 
states that it is convinced of the usefulness of an integrated 
approach; accordingly, EAGGF support should be an 
accepted instrument for integrated operations in areas with 
an important agricultural sector. 
5.4. Allocation of more funds to the EAGGF — Guidance 
Section — would help to make measures more effective. 
6. The planning of integrated operations 
6.1. Each integrated operation should be based on a 
programme for a coherent set of measures and 
public/private-sector investments calculated to have a 
substantial effect on underdevelopment and decay in the area 
in question. 
6.2. In drawing-up an overall programme it should be 
remembered that an integrated operation is a major event 
with valuable spin-off, and not just a battery of seperate 
projects. 
The overall programme should therefore specify in detail and 
quantify the benefits which are expected as a direct result of 
the integration of action — benefits which will be 
substantially greater than those obtainable from isolated 
Community measures. 
6.3. For this reason the programme should provide for 
joint use of the various national financing instruments and 
the Community Funds. 
6.4. These financing instruments should also be 
employed in a way which will produce a multiplier effect on 
private-sector investment. 
6.5. Right from the planning stage, there is a clear need 
for full collaboration and joint efforts from all the 
No C 68/20 Official Journal of the European Communities 16. 3. 87 
institutions, agencies, organizations and operators who are 
involved in the project. 
7. The role of the socio-economic organizations and the 
presence of the Community institutions 
7.1. In both Naples and Belfast, the socio-economic 
organizations have been little involved in the integrated 
operations, and this has been a limiting factor. 
7.2. This contrasts with the major contribution from 
Community representatives, bearing witness to the 
Community's concern for the success of the operations and 
above all making it clear that the programmes are part of a 
European regional development policy. The Commission 
representatives have also provided important technical 
back-up on the use of the structural funds. 
7.3. It is thus clear that the Community institutions and 
the socio-economic organizations should play an active part 
right from the planning stage. 
7.4. All the relevant economic and social interest groups 
must be consulted during the planning stage. 
Whilst not being binding, their opinion should be given due 
consideration when projects are being chosen. 
8. Administration of the integrated operations 
8.1. All aspects of the planning, supervision and 
administration of the integrated operations are of vital 
importance. 
8.2. The administration of each integrated operation 
should be under the constant supervision of a consultative 
committee which should include representatives of all the 
organizations and agencies involved. This committee would 
check that the various measures followed the aims of the 
original plan and decide whether any changes or adjustments 
were necessary. It would also periodically check the actual 
results achieved. 
8.3. The integrated operations should be administered by 
bodies or agencies endowed with the structures needed to 
manage a complex instrument of this type. 
Whilst taking the form of public institutions, or governed 
by public law, these bodies or agencies should have an 
efficient administrative and organizational set-up and 
possess an operational and managerial capacity similar to 
that of modern private-sector firms. 8.4. The success of integrated operations depends to a 
large extent on good relations between local and national 
authorities and on satisfactory liaison between them and the 
Community bodies. The administration of the integrated 
operations, the activities of the bodies or agencies responsible 
for administration, and the activities of the supervisory 
consultative committees must all be governed by the 
over-riding need for harmonious relations between the 
various authorities and by the need for proper integration of 
the measures. The full commitment of the Member States is 
vital for this. 
9. The essence and content of the integrated operations 
9.1. The integrated operations must be geared to the 
economic and social development of the areas concerned. 
This mainly means increasing imployment and gross 
domestic product, raising living standards and improving 
living conditions. 
9.2. The most important aim should be to improve the 
employment situation by increasing the number of 
permanent jobs. To support this aim, the profits on the 
capital invested in the operations should be reinvested 
locally, thus giving a sustained boost to employment. 
9.3. Multi-sectoral measures involving a wide range of 
actions designed to achieve coordinated results are of great 
importance in integrated operations. 
9.4. The aid should be satisfactorily distributed between 
infrastructures, manufacturing, the tertiary sector and 
agriculture. Due attention should also be given to the 
protection of the environment, the countryside and our 
cultural heritage. Finally, sufficient funds should be set aside 
for vocational training so that workers' qualifications and 
skills can be brought up to the levels required by the 
development planned. 
9.5. In underdeveloped or decaying areas such as those 
eligible for integrated operations, there is an undeniable need 
to focus particular attention on the housing problem. 
Housing programmes should not, however, be allowed to 
swallow up most of the funds since this would affect 
investment in productive sectors, thereby perhaps 
jeopardizing the objectives of the integrated operations. 
9.6. As part of the major drive to create lasting 
employment, steps must be taken to provide secure 
manufacturing or service jobs for workers temporarily 
employed in the construction of infrastructure and factories 
or in the special housing programmes. 
16. 3. 87 Official Journal of the European Communities No C 68/21 
10. Geographical extent and time-span of integrated 
operations 
10.1. In the planning of integrated operation 
programmes provision should be made for their 
implementation over a medium or long-term period. For this 
to be possible, however, certain guarantees are needed. 
As noted above, these guarantees concern the rules and 
procedures governing the integrated operations, as well as 
the assistance from the structural funds, the coordination of 
the various Commission Directorates-General, and the 
administrative structure of the Commission services dealing 
with the integrated operations. 
When an integrated operation is decided on, all those 
involved should be able to rely on it being carried out as 
scheduled, without undue red tape or procedural 
complications, or delays in the allocation of funds. 
10.2. The geographical delimitation of the areas chosen is 
also a delicate and complex problem, as the project must 
cover a homogeneous area whilst sufficiently involving all the 
territory. 
The implementation of the integrated operation must be 
clearly visible for all the residents of the area 
11. Final comments 
11.1. Detailed appraisals of the two integrated 
operations in Belfast and Naples appear in the Section's 
report (CES 706/86 fin). The Committee's assessment is 
basically favourable, although much remains to be done to 
achieve the full promise of this method. 
11.2 The results of the two pilot operations should 
encourage the Community to make further use of ERDF 
Article 34, perhaps extending operations to non-urban areas. 
Island regions, upland areas and underdeveloped rural areas 
deserve special attention. 
Also of special interest are some structurally weak border 
areas, which offer real potential for promoting investment. 
Integrated operations should play a part in helping to 
improve the organization of national measures on both sides 
of the border; where possible a coordinating role should be 
played by supranational bodies. 
Done at Brussels, 17 December 1986. 11.3. The legal basis of the integrated operations needs to 
be expanded and more clearly defined. The Commission 
information memo of 2 September 1986 should receive a 
swift follow-up. The Committee notes that the Commission 
has already recognized this shortcoming, by creating the new 
General Directorate XXII specifically in charge of 
coordinating structural instruments. It is to be hoped that 
this new department will have the authority to carry out this 
task effectively. 
Some five years ago the Committee offered the Commission 
some suggestions for improving the legal basis of the 
integrated operations. Article 34 of the new ERDF 
Regulation adopted a good number of these suggestions, and 
has clarified the areas which the measures are to cover. 
11.4. Stress must be laid urgently on the need for 
appropriate further aid from all the structural funds. The 
regulations governing these funds should be adapted to the 
integrated instrument. 
It is only sensible that any coordinated programme involving 
a community should apply the various available funds in 
concert, as this is the only way to achieve real impact. The 
circumstances for adoption of an integrated operation and of 
the requirements for submission of a proposal will also need 
to be clearly specified. 
11.5. Full involvement and commitment from the local, 
national and Community authorities, along with all the 
socio-economic interest groups, is vital for the integrated 
operations. 
11.6. In neither Naples nor Belfast does there seem to 
have been a significant improvement in the employment 
situation. Hence the need to stress again that the main aim of 
an integrated operation should be a significant long-term 
increase in additional job opportunities. 
11.7. Finally, the Committee points out that in preparing 
this opinion it has been subject to constraints owing to the 
deadline and the need for an in-depth analysis of the 
experience in Belfast and Naples. 
However, the Committee hopes to be able to continue its 
work on integrated operations and deal specifically with the 
situation in certain areas where feasibility studies are 
underway or planned (e.g. the Bavarian forest and the Island 
of Reunion). 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT