10. 9. 79 Official  Journal  of the European  Communities  No  C 227/1 
II 
(Preparatory  Acts) 
ECONOMIC  AND  SOCIAL  COMMITTEE 
Opinion  on the  proposal  for  a Council  Regulation  concerning  interest  rebates  for  certain 
loans  with  a structural  objective 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 167th  plenary  session  held  on 4 and  5 April  1979  the Committee,  acting  on a proposal 
from  the Bureau,  decided  to deliver  an opinion  on the  abovementioned  subject  on its own 
initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 168th 
plenary  session  held  in Brussels  on 22 and  23 May  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the European 
Economic  Community,  and  in particular  Article  198 
thereof, 
Having  regard  to the fourth  paragraph  of Article  20 of 
the Rules  of Procedure, 
Having  regard  to the decision  taken  by the Economic  and 
Social  Committee  on  4 and  5 April  1979  (on  the 
proposal  from  its Bureau)  to draw  up an opinion  on the 
matter, 
Having  regard  to the  decision  taken  by  its Bureau 
instructing  the  Section  for  Economic  and  Financial 
Affairs  to draw  up an opinion  and  a report  on the matter, 
Having  regard  to the opinion  issued  by the  Section  for 
Economic  and  Financial  Questions  at its 51st  meeting 
held  on 8 May  1979, 
Having  regard  to the  oral  report  submitted  by the 
rapporteur,  Mr Margot, 
(i) OJ  No C 65, 9. 3. 1979,  p. 3. Having  regard  to the  discussions  at its 168th  plenary 
session  held  on 22 and  23 May  1979  (meeting  of 22 May 
1979), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously: 
1. The  proposal  for a Regulation  concerning  interest 
rebates  for  certain  loans  with  a structural  objective 
constitutes  one  of the  measures  provided  for  by the 
European  Council  of 4 and  5 December  1978  to help  the 
less prosperous  Member  States  take  part  in the European 
monetary  system  by strengthening  their  economies. 
2. The  proposed  interest  rate  subsidies  to be financed 
out of the Community  budget  in respect  of loans  granted 
through  the  new  Community  instrument  and  by the 
European  Investment  Bank  will  be granted  for  'loans 
primarily  devoted  to financing  projects  and  programmes 
relating  to the infrastructure'.  The  measures  in question 
'will  have  to be aimed  at reducing  regional  and  structural 
imbalances,  and  thus  at bringing  economic  performances 
within  the Community  closer  together'. 
No C 227/2 Official  Journal  of the European  Communities 10. 9. 79 
3. The  proposed  Regulation  stipulates  that  the 
subsidized  loans  must  be devoted  to financing  projects 
and programmes  relating  to the infrastructure,  provided 
such  loans  are consistent  with  the Community's  priority 
objectives,  especially  those  of regional  policy.  It further 
stipulates  that  the  interest  rate  subsidy  shall  be 3 % a 
year.  The  amount  of interest  rate  subsidies  financed  from 
this budget  may  not exceed  1 000  million  European  units 
of account,  divided  into  five  annual  instalments  of 200 
million  European  units  of account  each. 
4. The  Committee  approves  the proposal  to grant  the 
interest  rate  subsidies  so long  as they  are  in respect  of 
loans  used  primarily  for  financing  infrastructure  and energy  projects  and  programmes  which  are in line  with 
the Community's  priority  objectives.  The  Committee 
considers,  however,  that  to achieve  the  aims  set out  in 
paragraph  2 above,  all projects  to be financed  from  such 
subsidized  loans  should  be properly  appraised,  so as to 
ensure  that  the  returns  on them  reflect  as closely  as 
possible  the 'opportunity  cost'  of capital  in the recipient 
country. 
5. The  Committee  hopes  that  this  Regulation  will 
achieve  its objective,  but considers  that  the ability  of such 
a measure  to bring  economic  performances  within  the 
Community  closer  together  should  not  be  over-
estimated. 
Done  at Brussels,  22 May  1979. 
The Chairman 
of the Economic  and  Social  Committee 
Fabrizia  BADUEL  GLORIOSO 
Opinion  on the  possible  ways  of achieving  better  coordination  of the  Member  States' 
economic  policies  with  a view  to greater  convergence  of economic  performance 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 167th  plenary  session  held  on 4 and  5 April  1979  the Committee,  acting  on a proposal 
from  the Bureau,  decided  to deliver  an opinion  on the  abovementioned  subject  on its own 
initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 168th 
plenary  session  held  in Brussels  on 22 and  23 May  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the European 
Economic  Community,  and  in particular  Article  198 
thereof, 
Having  regard  to the conclusions  of the Presidency  of the 
European  Council  in Paris  on 12 and  13 March  1979 
(Chapter  IV 'Convergence'), 
Having  regard  to  the  communication  from  the 
Commission  to the  European  Council  entitled  'Use  of 
Community  instruments  and  greater  convergence  of 
economic  performance'  (Doc.  COM(79)  116  final  of 
7 March  1979), Having  regard  to the fourth  paragraph  of Article  20 of 
the Rules  of Procedure, 
Having  regard  to the decision  taken  by the Economic  and 
Social  Committee  on  4 and  5 April  1979  (on  the 
proposal  from  its Bureau)  to draw  up an opinion  on the 
matter, 
Having  regard  to the  decision  taken  by  its Bureau 
instructing  the  Section  for  Economic  and  Financial 
Affairs  to draw  up an opinion  and  a report  on the matter, 
Having  regard  to the  opinion  issued  by the  Section  for 
Economic  and  Financial  Questions  at its 51st  meeting 
held  on 8 May  1979,