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DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)310
Vol.1978/0111

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)310 final.
Brussels ,4July1978,
EUROPEAN REGIONAL DEVELOPMENT FUND
ThirdAnnualReport(1977)
/VP ••U:i,'<X
pf^\\Jsj
COM(78)310final.

-1-
CONTENTS POINTS PAGE
Chapter I:INTRODUCTION
ChapterII:THEECONOMIC SITUATION AND
THEFUTURE OUTLOOK
-General economic situation in1977
-Effects ontheregions
-Outlookfor1978
ChapterIII:THEFUND'SACTIVITY IN1977
-Budgetaspects
-Applications forgrant
-Grantdecisions
-Impactonemployment
-Studies financed
~Complementary character ofFund
activity andnational measures
-Summaryofthesituation 1975-77
Chapter IV:REGIONAL ANALYSIS OFFUNDACTIVITY
-Geographical concentration of
assistance
-Fundactivity incertainpriority
regions
Chapter V:PAYMENTS ANDCONTROLS
-Payments
-Controls
Chapter VI:COORDINATION ANDPROGRAMMES
-Coordination ofnational policies
-Regional impactassessment
-Regional impactofotherfinancial
instruments
-Analysis oftherégionalsituation
-Regional development programmes
-Annualinformation statements
-Annualstatistical summaries1-7
8-18
8-11
12-13
14-18
19-38
20
21-26
27-32
33-35
36
37
38
39-62
39-41
42-62
63-72
63-66
67-72
73-110
74-75
76-84
85-90
91
92-105
106-108
109-1107
7
7
8
11
11
11
14
16
17
17
18
20
20
20
44
44
45
48
48
48
50
51
52
58
59

-2-
points page
i
ChapterVII:INFORMATION ONFUNDACTIVITY 111-114 60
ChapterVIII:CONCLUSIONS 115-126 61
ANNEXES 64
LISTOFMAPS
1.Unemployment byregionin1977 9
2.Assistance fromtheRegional Fundin1977 23

-3-
ANNEXES Page
A.SOCIO-ECONOMIC INDICATORS
Table1.Trendsinprincipal macro-economic aggregates 1976-1977 65
Table2.Forecasts for1978 65
Table3.Trendsininvestment 1976-1978 66
Graph.I:Trendsingrossdomestic productparhead
I96O-1977 67
Graph.II:Weighted appreciation ordepreciation of
currencies ofMemberStates1974-1977 68
Graph.III:Trendsinregional unemployment
1968-1977 69
B.REGIONAL FUNDACTIVITY
Table4.Summaryofaiddecisions in1977 70
Table5.Typesofinvestment financed intheindustrial
andservice sectors 71
Table6.Typesofinfrastructure investment financed 73
Table7.Regionalstatistics onFundaidgranted 75
Table8.Commitments andpayments made '76
Table9.Visitsofinspection carriedout 80
Table10.Budgetary situation 82

-4-
Chapter I:INTRODUCTION
1.TheEuropean Regional Development Fundwasestablished inMarch1975(1).
ThisthirdannualreportdealswithFundactivities during1977.Although
thetimeelapsedsincethecreationoftheFundisstillrelatively short,itisbynowpossibletodrawacertainnumberofconclusions from
acquired experience .Theseconclusions aregiveninChapterVIII;they
alsoformthebasisoftheproposals foramending theFundRegulation
whichwereadopted bytheCommission andpresented totheCouncilin
June1977(2).
2.TheFundendowment in1977was500millionu.a.(outof1,300million
forthethreeyearssinceestablishment ).In1977theCommission adopted
378grantdecisions inrespectof2,020investment projects representing
atotalinvestment of4,498millionu.a.Since19754,748projects have
beenapproved .Virtually alloftheappropriations available in1977
werecommitted,bringingto1,289millionu.a.thetotalcommitted since
1975.Oftheassistance grantedin1977,41%(1975-77 :35%)concerned
industrial andservicesectorprojectscreatingormaintaining 70,000
jobs(1975-77 :185,000jobs);59%(1975-77 :65%)concerned infra­
structure projects .
Payments madein1977were372millionu.a.,bringing thetotalpayments
madesincetheFundwascreatedto740millionu.a.Thisfigurere­
presents 577.oftotalcommitment appropriations .TheCommission
considers thatthispercentage issatisfactory giventhatpayments from
theFundaremadeonlyafterpaymentofthenational aidsonthebasis
ofwhichFundcontributions arecalculated ,andthatthesenational aids
arepaidoutasworkontheprojects progresses .
3.HoweveritmustbestressedthattheimpactoftheFundcannotbejudged
inisolation .TheFundmustcontribute totheachievement ofawhole
rangeofobjectives definedatCommunity levelandwhichseektoremedy
thetraditional imbalances betweenregions byimproving thesituation
ofthelessfavoured,andtoprevent newimbalances fromappearing .
Theachievement oftheseobjectives impliesnotonlyaRegional Fund
endowedwithlargerresources andgreaterflexibility thaninthepast,
butalso,asstatedinthesecondannualreport,anincreased coordination
ofallCommunity financial instruments whichprovideassistance inthe
lessfavouredregions,ofallCommunity policies withregional implica­
tions,andofnational regional development policies .
./.
(1)ByRegulation (EEC)n°724/75oftheCouncilof18March1975,esta­
blishing aEuropean Regional Development Fund(OJN°73of21.3.1975),
hereinafter calledtheFundRegulation .
(2)Points 5,6.

-5-
4.Theseconsiderations wereamongthefactors whichLedtheCommission in
January 1977forthefirsttimetogiveoneofitsMembersthespecific
taskofcoordinating allCommunity financial instruments withstructural
purposes .
5.Inaddition,inJune,inthecontextofitsGuidelines onCommunity
Regional Policy(1)theCommission proposed totheCouncilvarious
amendments totheFundRegulation .Themainchanges,accepted bythe
Council inJune1978,are:
-thecreation ofanon-quota sectionoftheFundforwhich5%oftotal
Fundresources willbereserved (2);
-changednational quotastogiveanincrease of2%intheFrenchquota,
tobenefittheOverseas Departments ;
-amoreflexibledefinition ofinfrastructure qualifying forFund
assistance .
6.TheCommission alsoincluded intheGuidelines otherproposals onre­
gionalpolicyingeneral :
-thepreparation ofaperiodic reportontheeconomic andsocialsitua­
tionoftheregions,uponwhichbasisregionalpolicyguidelines and
priorities couldbesetforthefollowing years.In
June1978 .theCouncilnotedtheCommission 'sintention and
undertook toexaminethisreport.(3)
-asystemofregional impactassessment enabling accounttobetaken
oftheeffectthemainCommunity polities mayhaveontheregions,
especially withregardtoemployment .TheCouncilhasadopted a
similar commitment (3).TheCommission . ■"
will,wherenecessary,proposesupplementary action,including specific
measures financed bythenon-quota sectionoftheRegional Fund,to
ensuretheachievement oftheaimsofthepolicies concerned andat
thesametimethecorrection ofpossible negativeeffects onthe
regions.
-closercoordination ofnational regional development policies .
MemberStateshavealsocommitted themselves tothis.(3).
TheEconomic andSocialCommittee andtheParliament gavetheirsupport
totheCommission proposals ontheiropinions of29September (4)and
13October 1977(5)respectively .
./.
(1)OJC161of9.7.1977;Supplement 2/77oftheECBulletin .
(2)Representing roughly 29million EUA1n1978.
(3)Thesecommitments willbeconfirmed inaCouncilresolution .
(4)OJC292of3.12.1977 .
(5)OJC266of7.11.1977 .

-6-
7.Whenthegeneral budgetoftheCommunities for1978wasadoptedin
December 1977,Fundappropriations werefixedat581million EUA(1).This
figure,representing anincreaseof56%on1977,resulted fromthe
political agreement withintheEuropean CouncilofDecember 1977,which
alsoagreedon620and650million EUAfor1979and1980respectively .
Thefinalfiguresforthosetwoyearswillofcoursebefixedaccording
tothenormalbudgetary procedures .
(1)Noteonunitsofaccount
ThenewEuropeanunitofaccount (EUA),whichhasbeeninusesince
1.1.78,isbaseduponaweighted averageoftheninenational currencies ;
itsvaluevariestherefore fromdaytoday.Theformerunitofaccount
(u.a.)useduntil31.12.77 hadafixedvalueinrelation tonational
currencies .Attheexchange rateoperative on1.1.78,1EUA=1.34u.a.
Onthatdatetherefore the500million UAavailable totheFundin1977
wastheequivalent of372,34 MEUA.
./.

ChapterII:THEECONOMIC SITUATION IN1977ANDFUTURE OUTLOOK (1)
Thegénéralsituation in1977(2)
8.Bycomparison with1976whenthetrendwasslightlypositive,theeco­
nomicsituation againdeclined in1977.Indeed,thevolumeofGDP
increased byonly1.9%compared with4.6%in1976,andindustrial
production by1.9Xinvolumecompared with7.8%in1976.Theaverage
rateofuseofCommunity industrial production capacity asawhole
hardlyimproved atall.
9.Sincethebeginning of1977,employment intheCommunity remained below
the1975level.Theworkingpopulation increased andtherewasconse­
quently anincrease inunemployment to6.3millionunemployed in
September 1977.Theunemployment ratewastherefore 5.9%oftheworking
population compared with5%inOctober 1976.Inrelationtothetotal
numberofunemployed ,theproportion under25yearsofageroseto
exceed37.5%inJuly(morethan2millionpersons).Thefemalejobless
accounted for43%ofallunemployed andtrendsindicate afurtherrise.
Partial unemployment alsorosesharplyinallCommunity countries,almost
reaching the1975level.
10.Thetrendofinvestment ,whichisparticularly important forregional
development ,washardlyencouraging .Thevolumeoffixedinvestment
rosebyonly1.1%compared with2.8%in1976.Irelandandthe
Netherlands recorded in1977anincrease involumeofgrossfixed
capitalformation ofrespectively 9and7.5%;intheothercountries
investment hardlyroseorevendeclined .Inall,thevolumeofinvest­
mentin1977exceeded thehighestpre-crisis levelonlyinFrance.
11.Theyear1977sawnofondamental changeintheeconomicsituation of
theCommunity norintherelativesituations ofthemembercountries .
Inthecontextofamediocre economic performance fortheCommunity
asawhole,theweakereconomies felttoasimilarextentthereper­
cussions ofthecrisis.Therewasthusnosignificant catching-up
ontermsofgrowth;andthoughtheincrease inunemployment wasbetter
contained thaninthecountries withstronger economies,thisis
essentially aconsequence ofthedifferent socialandeconomic conditions
onwhichtheactivityratedepends.Withinthiscontext,thecountries
concerned remainsubjecttothesameinternal andexternal constraints
ashavelimitedtheirpasteffortstocatchup.
Regional consequences
12.Atregional level,theoutcomeofthedivergent trendssince1974was
thatproductperheadremained wellbelowtheCommunity averageinall
regionsoftheUnitedKingdom,IrelandandItaly.Sincethen,the
situation hasnotimproved anditcanbeassumedthattheeconomictrend
in1977hasbarelyalteredthescaleofexisting regional imbalances .
./.
(1)Figuresinthischapteraretakenfrom"Theeconomicsituation ofthe
Community",N°4,1977andN°1,1978,unlessotherwise indicated .
(2)Table1andgraphsI,II,andIIIoftheannex.

-8-
13.During1977unemployment (1)developed asfollowsinthedifferent
MemberStates :
-FederalRepublic ofGermany :unemployment continued itsslowdecline
begunin1976andreached4.87.inJanuary1978.Regionaldatashows
thatthesituation hasdeveloped differently :ithasimproved inHesse,
Baden-Wurttemberg ,andBavaria (withtheexception oftheUpperPala­
tinateandLowerFranconia )andhasworsened inLowerSaxonyand
NorthRhine-Westphalia .Nevertheless ,theregions mostaffected by
unemployment remain,asin1976,Aurich(LowerSaxony),theSaarand
Bremen.
-France;unemployment hascontinued toriseandwas5.2XinJanuary
1978.Theregions mostaffected bytheincrease wereChampagne-
Ardennes,Haute-Normandie ,Nord-Pas-de-CalaisandLorraine .However
thehighestunemployment ratesarestillinLanguedoc-Roussillon and
Provence-Cote d'Azur-Corsica .
-Italy;asinFrance,unemployment hascontinued toriseandwas7.7X
inJanuary1978.Theregionsmostaffected arethoseoftheMezzogiorno .
-Netherlands ;unemployment hasdeclined andwas4.7%inJanuary 1978.
Allregions,havebenefited fromthisdeclineexceptZeeland and
Limbourg .Unemployment ishighestinthelastnamedregion.
-Belgium :unemployment reached8.5%inJanuary 1978(8.0%inFlanders;
9.8%inWallonia);theprovinces mostaffected bytheincrease were
EastandWestFlanders andLimbourg .Unemployment ishighestinthe
provinces ofLimbourg andLiege.
-Luxembourg :unemployment ,althoughithasincreased bymorethan
threefold,isstillverylowataround 1%.
-Denmark :unemployment hasincreased sharplytoreach7.8%ofthe
workforce.
-Ireland :unemployment hasfallenslightly andisnowaround9%.
-UnitedKingdom ;unemployment rosebysome100,000intheyearto
reach6.1%.Thisincrease wasfairlywidespread ,theregionsmost
affected beingScotland,Wales,theNorthofEnglandandNorthern
Ireland.Thelastnamedregionhasthehighestunemployment level.
Theoutlookfor1978(2) ,
14.Thegeneraleconomic outlookfor1978isslightlybetterthanfor1977.
Industrial production willdoubtless continuetomakeslowprogress
duringthefirstsixmonthsof1978;itishoweverdoubtful whetherthe
utilisation ofproductive capacity canaccelerate toanappreciable
degree.Ifthereisnonotableimprovement inthesecondhalf-year,
thegrowthrateinrealtermsofgrossdomestic productfortheCom­
munitycouldatmostachieve 3«5%forthewholeyear.
./.
(1)Registered unemployed as%ofwork-force ;basedonnationalfigures
andnotcompletely comparable asbetween MemberStates.
(2)Table2ofannex.,

Unemployment 1977
Variation aroundthe
Community average (1)
•'*"\
«V
!J.
\\
VJ
«84,9
M-114,9
»115(1)Estimations basedonthe
uniformdefinitions ofthe
Community work-force survey.
According tothesedefinition
averageunemployment inthe
Community in19r7was4.6%.

-10-
15.Withregardtoemployment ,themoderate growthofeconomicactivity
andoffixedinvestment andtheslightimprovement intheimmediate
economicsituation willdoubtless beinsufficient torestoretheposi­
tiononthelabourmarket.Itisnotevencertainthat,duetoan
increasing workingpopulation ,thelevelofunemployment willnotrise
againsomewhat during1978,exceptintheFederalRepublic andthe
Netherlands .
16.Themeasures forencouraging fixedinvestment plannedinmostMember
States,combined withsteadyimprovement infinancing conditions ,
shouldhelpincreaseslightly thereadiness toinvest.Asshownbythe
resultsofthelatestenquiryintotheinvestment outlookforCommunity
industry,itisexpectedthatfixedinvestment willgrowratherfaster
in1978thanin1977.
17.Theriseinpricesshouldcontinuetoslowdown.Thecurrentrestrain­
ingfactors-laxdemand,lowerwagepressures insomecountries and
atrendtowards lowerraw-material prices-arelikelytopersistinthe
nearfuture.Community imports fromnon-member countries willincrease
onlyslightly incomingmonthsandingeneralthebalanceofcurrent
payments willdoubtless continuetoimprove.
18.Theseeconomicdifficulties ,structural andshort-term ,whichconcern
bothemployment andoutputcapacity,andhavebeenapparent sincethe
startoftheeconomiccrisis,willcontinue withstillgreateremphasis .
Itshouldbenotedthatitwillbedifficult tocompensate forpastand
foreseeable lossesinemployment insectorssuchastextiles,clothing,
leather,shipbuilding andsteelbysufficient newjobsingrowthsectors,
whichareusuallyhighlycapitalintensive .

ChapterIII:THEFUND'SACTIVITY IN1977
19.Theoperations oftheFundin1977werecarriedoutindifficult eco­
nomicconditions .Asindicated inthepreceeding chapter,thegeneral
economicsituation oftheCommunity deteriated aftertheslight
improvement of1976;divergences betweennational economies andthe
imbalances whichpersistbetweenregionscontinuetohinderprogress
towardseconomic integration .
Aneconomic recovery wouldnotofitselfovercome thesedifficulties .
Consequently ,anactiveregional andstructural policyisneededat
Community level,theRegional Fundbeingoneoftheinstruments ofthat
policy.Yet,iftheeconomicsituation makestheFundmorenecessary,
italsomakesitstaskmoredifficult .Ontheonehand,inaperiod
ofeconomicdifficulty andagenerally lowlevelofinvestment ,itis
clearly moredifficult toguideinvestment towardsthelessfavoured
regions;ontheother,thehighrateofinflation,aboveallinthe
countries facedwiththemostsevereregional imbalances ,hadclear
andadverseconsequences fortherealvalueoftheresources which
wereavailable totheFundin1977butwhichwerefixedinDecember
1974.Itiswithintheframework ofthiseconomic situation thatthe
Fund'soperations in1977mustbejudged.
Budgetaspects
20.The1977commitment appropriation fortheFund,included inChapter 55
ofthegeneralbudgetoftheEuropean Communities ,amountedto500
millionu.a.asprovided forintheFundregulation .Paymentappro­
priations inthebudgetfor1977were400millionu.a.towhichwere
added82millionu.a.broughtforwardfrom1976.
(seetable10ofannex).
Applications
21.Thefirstseriesofgrantdecisions adoptedbytheCommission in
January1977concerned onlyapplications submitted in1976butwhich
couldnotbeapproved withinthe1976budget.Applications for1977
reachedtheCommission frommid-January andcontinued uptothebegin­
ningofOctober.Inall397applications werepresented duringthe
year,concerning 2,294investment projects .Tothisfiguremustbe
added182projects stemming from43applications submitted in1976or
1975.During1977theCommission therefore considered 440applications
inall,concerning 2,477projects.
22.378outofthese440applications wereapproved,relatingto2,020
investment projects .Nodecision wastakenon457projects .
Thedetailed figures onapplications submitted aregiveninthefol­
lowingtables :

-12-
TableN°1:Analysis bycateqory ofinvestment ofapplications submitted
in1977
Investment cateqory Amountofinvestment
million u.a. %
Industry andservices
-projects ofmorethan10m.u.a. 1-852.74 35.73
-projects oflessthan10m.u.a. 1,193.62 23.02
Subtotal 3,046*36 58.75
Infrastructure
-projects ofmorethan10m.u.a. 1,301.43 25.10
-projects oflessthan10m.u.a. 700.66 13.51
-projects inmountain andhill
farmingareas(1) 136.59 2.64
Subtotal 2,138.68 41.25
Total 5,185.04 100.00
(1)AsdefinedinDirective N°75/268/EECof28April1975(0JL128of19.5.1975 )
onmountain andhillfarming andcertainlessfavoured areas.
TableN°2:Projects approved andprojects onwhichnodecision wastaken
MemberStateNumberof
projects
presented '77
orbrought
forward 1975-
76(1)Numberof
projects
financed
1977Numberofprojects presented
1977onwhichnodecision was
taken(2)
0102030406Total
Belgium
Denmark
FRofGermany
France
Ireland
Italy
Luxembourg
Netherlands
UnitedKingdom47
60
424
370
78
900
1
5
59247
59
410
184
73
736
1
5
5051
5
1
51
12
35
2
39
43
31
64
2
30
5879
95
171
14
186
5
164
87
Total 2,477
I2,020 12936155191457
C1)Projectssubmittedin1975and1976forwhichgrantwasawardedin1977.
(2)01:industrial projectsofmorethan10millionu.a.
02:industrial projectsoflessthan10millionu.a.
03:infrastructure projectsofmorethan10millionu.a.
04:infrastructure projectsoflessthan10millionu.a.
06:infrastructure projectsinmountain andhillfarmingareas.

-13-
23.Thereasonwhynodecision wastakenon457projects wereasfollows :
-someprojects didnotcomplywiththeformalprovisions oftheFund
regulation (creating atleast10jobs,volumeofinvestment ofmore
than50,000u.a.,etc);
-otherprojects werenotaccepted forsectoral reasons (structural
overcapacity );
-lastlyinsufficient commitment appropriations limitedtheCommission 's
possibilities ofdecision insomecases.
Someoftheprojects notapproved mayhowever beapproved in1978.
Thisisparticularly thecaseforprojects whichcouldnotbeapproved
duetolackofavailable resources ;theseprojects maybefinanced out
1978appropriations .
24.Inaccordance withtheCommission 'srequestin1977,mostMemberStates
presented applications formorethantheirentitlement fromtheFundas
isshowninthefollowing table:
TableN°3:Valveofapplications submitted in1977as%ofsharesaccording
totheFundregulation (1)
en% I
IFrance 135
F.R.ofGermany 133
IUnitedKingdom 122
IBelgium 117
ILuxembourg 108
Italy 105
IDenmark 103
IIreland 95
jNetherlands75
(1)These%figures donottakeaccountofcaseswhereshareswereexceeded
orunder-utilised inthepreceeding year.
25.Thesurplusofapplications madeeasiertheCommission 'schoiceof
projects andalso,forofmostMemberStates,madeitpossible toalign
Fundcommitments for1975/1977exactlywiththenational quotasasset
outinArticle3.1oftheFundregulation .Thehighlevelofapplica­
tionsintroduced bytheFederalRepublic wasnecessary inviewofdelay
bythisMemberStateintakingupitsentitlement inthetwoprevious
years.
26.Itshouldberemembered thatthedistribution ratiolaiddowninthe
Fundregulation referstothetotalavailable forthethreeyears
1975/1977.In1977theCommission hadtherefore toensurethequotas
werestrictly adheredtoforthewholeperiod,takingaccountofover
andunder-uti lisationduringthetwoprevious years(1).
(1)Point37,Table5.

-14-
Grantdecisions
27.In1977theCommission adoptedfourseriesofgrantdecisions,in
January,May,JulyandDecember,afterreceiving thenecessary opinions
fromtheFundCommittee andtheRegional PolicyCommittee .TableN°4
oftheAnnexgives,foreachMemberStateandforeachinvestment
category asdefined bytheFundregulation ,thenumberofgrant
decisions,thenumberofprojects aided,thevolumeofinvestment
concerned andthetotalofgrantsapproved fromtheFund.Thedistri­
butionofgrantswasasfollows :
TableN°4:Distribution ofassistance granted bycategory ofproject
(inbrackets :totalinvestment concerned )
Industry and projects of10m.u.a.orover
projects under10m.u.a.
sub-total18.3%(31.0%)
23.0%(25.0%) Iservices
41.3%(56.0X)
Infrastructures projects of10muaorover
projects ofunder10mua
infrastructure inmountain,
hillareas
sub-tota I25.3%(27.1%)
28.1%(14.7%)
5.3%(2.2%)
58.7%(44.0%)
total 100.0 %(100.0 %)
28.Thistablecallsforthreecomments :
-Thereasonwhyindustrial andserviceprojects accountfor56%of
investment financed butonly41.3'/.ofgrantsisthatgrantsfor
theseinvestments maynotexceed20%ofinvestment cost(compared
with30%forinfrastructures )and50%ofnational aidgrantedto
theinvestment .Theyarealsosubjecttoaceilinglinkedtothe
numberofjobscreatedormaintained .
-Infrastructure projects represent asmallerproportion oftotal
grantsthanin1976,inwhichyearitwas75Itseemsthatthe
urgentrequestoftheCommission toMemberStatestogivepriority
toapplications forprojects whichdirectlycreatejobshada
positiveresulthere.
-Theproportion ofgrantstoprojects of10millionu.a.ormore
declined bycomparison with1976,fallingfrom52.9%to43.6%.
TheCommission considers that,inviewofthepriorityreferredtoin
Article 7oftheFundregulation ,morethanhalftheaidgranted
shouldgo,asin1976,toprojects of10millionu.a.ormore.

-15-
Principal typesofprojectassisted
TablesN°5and6intheannexindicate thetypesofinvestment for
whichFundgrantsweremade.Thesetablesrevealthefollowing facts:
29.Industry_and_seryice_sector investment s
-Theaverage volumeofinvestment perproject was35.7millionu.a.
forprojects of10millionu.a.ormore,and1.8millionu.a.forpro­
jectsoflessthan10millionu.a.ThelevelofFundassistance for
largeprojects amounted to35.6Zofnational aidand6.6%oftotal
investment ,andforsmallprojects 42.6Zand10.3respectively .
-Astotheeconomic sectorsconcerned,metalgoodsmanufacturing tops
thelistforthenumberofprojects financed oflessthan10million
u.a.,followed bynon-metallic minerals,mechanical engineering ,and
electrical andelectronic engineering .Chemicals leadforlarge
projects,followed bymechanical engineering ,andmotorvehicles
andspareparts.
30.Infrastructure
-Ingeneral,industrial estatedevelopment wasthemostimportant type
ofinvestment assisted,accounting for62Zoflargeprojects and
69Zofsmallprojects .
-Categories ofinfrastructures varyhoweverasbetween MemberStates
inthelightofregionalpriorities andnationalpolicies .Inall
MemberStates,withtheexception ofDenmark,FranceandIreland,
emphasis hasbeenputonthedevelopment ofindustrial estates;
yetitshouldbenotedthattherehasbeensubstantial assistance
forroadandportinfrastructure linkedwithindustrial estates
intheNetherlands ,forpublicworksprojects inmountain areasin
Italy,andinroadandtelephone infrastructure inFrance.InIre­
landpriority hasbeengiventotelephone installations ,water
supplyandsewerage;allinfrastructure projects forDenmarkwerein
Greenland andconcerned mainlyportinstallations .
Themoreflexibledefinition ofeligibleinfrastructure acceptedfor
themodified Fundregulation willallowthetypesofinfrastructure
projects aidedtobeevenbetterfittedtoregionalpriotities and
tothenationalpolicies followed .
-ThelevelofFundassistance averaged 27.4%ofeligible public
expenditure forsmallprojects (1)and16.5Zformajorprojects .
Thisisbecause someapplications wereforgrantsatlessthanthe
maximumrateof30%,andinsomecasestheCommission itself,in
agreement withtheRegional PolicyCommittee andtheFundCommittee,
variedthelevelofgrant.Formajorprojects,whereassistance may,
according totheFundregulation ,varybetween 10Zand30Zof
investment cost,lowerrateshavemoreoftenbeenappliedtoinfra­
structure projectsdirectly linkedtothedevelopment ofindustrial
andservicesectoractivity (2)butalsoservingthegeneralpublic.
Forsmallerprojects,attherequestoftheMemberStateconcerned,
theCommission applied alowerrateofgrantinanumberofcases.
(1)Investments oflessthan10m.u.a.
(2)Article4.1.boftheFundregulation

16-
Underthemodified regulation themaximumrateofgrantisraised
ito40%forinfrastructure projects incertainregions.Thiswillgive
toCommunity assistance aselective andincentive character,favouring
projects ofparticular interest tothedevelopment oftheregionwhere
theyarelocatedbutwhoseimplementation couldbeprevented or
delayedforfinancial reasons
Projects onwhichworkhasalreadybeencarriedout
31.TheFundregulation provides thattheCommission shouldconsider as
eligible forFundassistance allexpenditure incurred byMemberStates
after 1January 1975,eveniftheprojects concerned havealreadybeen
started orevenfinished atthatdate.TheCommission hashowever
stressed toMemberStatesthatpriority mustbegiventoprojects where
thebulkoftheworkstartsintheyearinquestion,sothatFund
assistance maybeanincentive fornewprojects .
32.Inthisconnection itisnoteworthy thattheMemberStatessent
practically nocompleted projects totheCommission in1977;thisshows
amarkedimprovement overprevious years.Manyprojects werehowever
alreadyinprogress .Whilethisisunderstandable formajorprojects,
whichrequiregenerally severalyearsforcompletion ,theCommission
considers nevertheless thatthereshouldbemoreemphasis onfinancing
entirely newprojects sothatFundassistance mayhavearealinfluence
onsolvingregional problems .
ImpactofFundassistance onemployment
33.OneofthemainaimsoftheFundisthecreation andmaintenance of
jobsinpredominantly agricultural regionsandthosesubjecttoin­
dustrial changeorstructural under-employment .Declining investment
intheindustrial sector,andacorresponding increase inunemployment
inMemberStatesasawhole,hasrenderedtheroleoftheFundparti­
cularlyimportant inthisfield.
34.Inthisconnection ,thefactthattheproportion ofindustrial and
service-sector projects financed bytheFundwashigherin1977than
in1976(41.3%compared with25%)produced anoticeable increase
intheimpactmadebytheFundonjobcreation .Projectsinreceipt
ofFundassistance in1977inthesesectorscreatedormaintained some
70,000jobscompared with55,000in1976according totheestimates
attachedtoapplications .Indeed,itistheindustrial andaboveall
theservicesectors,whichcreatethegreaterproportion ofnecessary
newpermanent jobs.Nevertheless ,infrastructure projects,forwhich
jobcreationfiguresarenotavailable docreatesubstantial work
which,eventhoughtemporary,oftenlastsseveralyearsandalso
providethebasisforthelatergrowthofindustrial andservice-sector
activity .Inaddition,themaintenance ofcompleted infrastructure
networksisalsoanotnegligible sourceofpermanent work.Aserious
assessment oftheimpactonemployment mustinanyeventbebasedon
regional development programmes (2)andstatistical summaries (3)
(1)Point92.
C2)Point109.

ratherthanontheabovefigures whichareonlyforecasts .
35.Asinprevious years,projects oflessthan10millions u.a.created
mostjobsinrelation tothetotalvolumeofinvestment and/orFund
aid.Thisisbecausethevolumeofcapitalinvested perjobis
generally moreforlargeprojects thanforsmallones,thelatter
oftenbeingstrongly labourintensive .
Financing studies
36.Nostudywasfinanced fromtheFundin1977underArticle 10ofthe
Fundregulation ,noMemberStatehavingrequested one.Thiswasso
essentially becausethecostofastudyhadtobededucted fromthe
quotaoftheMemberStateconcerned .Underthemodified Fundregulation
itwillbepossible tofinancestudiesalsounderthe"non-quota "
sectionoftheFundsoastoovercome thisdifficulty .
Complementary character ofFundactivity andnational mesures
37.Thequestion oftheadditional character ofFundactivity tonational
measures wasexamined indetailinthetwoprevious AnnualIReports (1).
Theinformation givenintheSecondAnnualReportremainsvalidfor
1977.Duringthatyearagain,according totheinformation available
totheCommission ,theassistance grantedforinfrastructure projects
(59%ofthetotal)wasinmostcasespaidovertoregional andlocal
authorities ,ifthese-wereresponsible fortheinvestments
involved .OntheotherhandnoMemberStateusedtheoptionprovided
forintheregulation oftransfering Fundaidtoindustrial investors .
FortheseprojectsallMemberStatestreated Fundassistance aspartial
repayment ofnational aid.TheMemberStatesreportthatinbothcases
Fundassistance hasenabled agreater numberofprojects tobefinanced
thanwouldotherwise havebeenpossible .
(1)Points52-67and36-40respectively .

-18-
Summaryofthethree-year situation ,1975-1977
38.Attheendofthethree-year periodreferred toinArticle 2ofthe
Fundregulation thebalance sheetofFundactivities standsasfollows.
Commitment _a£grogriat ions
Table5:TotalFundCommitments in1975,1976and1977
million u.a.
MemberStateAppro-
!priations
available
1975+
1976+
1977(1)Appropriations
committedDecom-
mittedTotal
(C+D+
E-F)%useI
ofap-l
propria
tions
availab
le
(Gover
B,,1975 1976 1977(2)
A Β
iC D E F G H
Belgium 19.35 4.04 6.67 8.62 19.33 100.0
Denmark 16.76 3.88 6.42 6.580.1216.76 100.0
Germany 82.49 9.47 19.88 42.85 0.2271.98 87.3
France 193.33 46.01 76.46 70.85 193.32 99.9
Ireland 84.00 19.93 34.54 30.32 0.9683.83 99.8
Italy 520.00 123.99 204.23 192.18 0.40520.00 100.0
Luxembourg 1.29 0.75 0.54 1.29 100.0
Netherlands 21.91 5.58 10.00 6.33 21.91 100.0
UnitedKingdom 360.89 86.18 141.92 45.9113.12360.89 100.0
Total 1300.00 299.83 500.12 504.18 14.821289.31 99.2
1)Article 2(1)oftheFundregulation
2)Projects withdrawn byaMemberStateafterdecision toawardgrant.
3)Includes financing ofacross-frontier studyapproved in1976.
Thepreceding tableshowsthatallMemberStateshavevirtually usedtheir
quota,withtheexception ofGermanywhichhasanunusedbalanceof10.5
million u.a.<12.7%ofquota).
Theprincipal features ofFundassistance overthethreeyearsare:
-4,747projects havebeenfinanced,representing atotalinvestment of
11,700millionu.a.

-19-
-65%ofFundgrantshavebeenalLocatedtoinfrastructure projects and
35%toindustrial orservice-sector projects ;
-projects of10millionu.a.ormorehavereceived 47XofFundassis­
tancecompared with53%forprojects oflessthan10millionu.a.
-finally/projects financed intheindustrial andserviceactivity
sectorshouldcreateormaintain 185,000jobs.

20
Chapter ,iy;REGIONAL ANALYSIS OFFUNDACTIVITY
Geographical concentration ofFundactivity
39.TableN°7oftheAnnexshowstheregionaldistribution ofFund
assistance in1975,1976and1977.
40.TheFundregulation statesthatregions andareaseligibleforFund
assistance shallbelimitedtothoseareasaidedbyMemberStatesunder
theirownsystemsofregional aid.TogivemaximumimpacttoFund
assistance ,priority musthowever begiventoinvestments locatedin
nationalpriority areas,takingaccountoftheprinciples forCommunity
levelcoordination ofregional aids.In1977thesituation wasas
follows forthevarious MemberStates :
-Belgium :Fundassistance waslocatedinareascovered bytheCommission
decision of26April1972(1)onaidsgranted undertheBelgian law
oneconomic expansion of30December 1970;
-Denmark :82%ofFundassistance wenttoGreenland ,theremainder to
specialpriority areas;
-FederalRepublic ofGermany :62%ofFundassistance wenttoBerlin,
totheZonenrandgebiet andtofirstpriority development poles
qualifying for20%aid;
-France:79%ofFundassistance wenttoregionsoftheWestandSouth­
west,toCorsica andtotheoverseas departments ;
-Ireland :53%ofaidedprojects wereinthe"designated areas','mainly
.inthewestofthecountry;
-Italy:91%ofFundassistance wenttotheMezzogiorno ;exceptionnal ly,
as'part'of thespecial measures tohelpthearea'sinFriuliaffected
bytheearthquake of6May1976,9%ofassistance wenttoFriuli-Venezia Giulia.
-Netherlands :Fundassistance waslimitedtothetwopriority areas
inthenorthandsouthofthecountry;
-UnitedKingdom :some86%ofFundassistance wenttoprojects located
inthepriority areas,namelyNorthern Ireland,theSpecial
Development AreasandtheDevelopment Areas.
41.'ItistobenotedthatinsomeMemberStatesthegeographical
concentration ofFundassistance waslessin1977thanin1976.
TheCommission takestheviewinthesecircumstances thatefforts to
concentrate Fundassistance inpriority regions mustbeaccentuated ,
giventhelimitedresources available totheFund
Fundactivities incertainpriority regions
42.ThispartofthereportdealswithFundassistance incertainregions
selected onthebasisofthefollowing criteria :
-inthefirstinstance,theregionsincluded inthe5areas
recognised ashavingpriority intheCommission 's"Guidelines on
regionalpolicy"(2 )andinthemodified SocialFundregulation (3),i.e.:
(1)O.J.N°L105of4.5.1972 .
(2)Supplement 2/77oftheEuropean Communities Bulletin .
6)0JL337of27.12.1977.Regulation (EEC)N°2893/77oftheCouncil..

-21-
.Mezzogiorno C1)Abruzzi
BasiLicata
Calabria
Campania
Molise
Apulia
Sardinia
Sicily
.Ireland
.Northern Ireland
.Greenland
.Frenchoverseas departments
-inthesecondinstance,theregionofeachMemberState(Luxembourg
excepted )whichhasbeentheprincipal beneficiary ofFundassistance
inrelation topopulation overtheyears1975-1977 ,unlessthis
regionisalreadyincluded inthelistabove.Onthebasisofthis
criteria thefollowing regionsareincluded
.Corsica
.theNorthofEngland
.theNorthoftheNetherlands
•Schleswig-Lowèr Elbe
.Wallonia
43.Eachregionhasbeenanalysed asfollows :
-areminder oftheeconomic situation oftheregion;
-anindication ofnational andCommunity aids(2)asawholeinrecent
years;
-abriefanalysis ofRegional Fundassistance givenin1977.
Theanalysis oftheMezzogiorno (1)comprises asection onthewhole
ofthishugeregion,followed bysections oneachoftheadministra­
tiveregionswithinit.Forothercountries,thereisaseparate
sectionforeachregion.
ItshouldbenotedthatinmanycasestheCommission doesnotpossess
fullandaccurate dataonnational aids.(3)Thefigures shownare
therefore oftenonlyapproximate estimates ;theimportance ofthe
Community 'saidcan,nevertheless ,bejudgedbycomparison withthese
ordersofmagnitude .National amounts havebeenconverted into"budget"
unitsofaccount (u.a.)(4)asusedfortheRegional Funduptothe
endof1977.
(1)ItalianregionsonlypartlywithintheMezzogiorno areexcluded .
(2)Concerning theEAGGF,onlyassistance fromtheGuidance Sectionunder
Regulation 17/64/EECisincluded .
(3)Points 95and110.
(4)1u.a.=FB50;DK7.5;DM6.66;FF5.55419;£ 0.416667;Lit625;Fl3.62.

-22-
AsfarasCommunity assistance isconcerned,thevalueofLoansfromthe
European Investment BankandtheECSCisexpressed innew"EuropearVunits
ofaccount (EUA)(1)andmustnottherefore beaddedtothefiguresfor
theRegional andAgricultural Funds,expressed "budget"unitsofaccount
(u.a.).
44.Thefollowing tablesummarises Regional Fundassistance fortheregions
concerned .
TableN°6.Fundassistance in1975-1977
ι
i i
,Region !ι
i i
[Total(m.u.a.) !|Perheadofpopula-J
Ition(u.a.) ;
ι
.Mezzogiorno . !i i
;423.91 ;I I
I21.67 ;
!Abruzzi . !!30.20 ! 25.02 !
I
!Basilicata !;13-01 ;I21.22 ;
!Calabre !39.77 !! 19.60
I I
jCampagna j;103.09 :;19.61 ;
!Molise !!6.69, !! 20.33 !
I
JPulia !i66.12 ;;17.65 ;
Sardinia !83.46 ! 54.02
I
JSicily ]81.57 ; 16-85
'Ireland !!83.76 !! 26.79 !
I I
[NorthernIreland j58.37 ;;37.98 ;
!Greenland !!13.14 !!265*45 !
JD.0.M. (2) :i i
;12.73 ;!10-73 J
Corsica !7.53 !!34.07 !
JNorthofEngland !108-55;34,72 ;
INorthern Netherlands !!12.77 !! 23.74 !
I
!Schleswig-Unter elbe \I I
;5.12 ;;7.40 ;
iWallonia (3) !
I !!9.28 !ι 2.89 !
ι ι
Asindicated atpoint39,thefiguresforFundgrantsinalleligible
regionsaregivenintable7oftheannex.
C1)EUA:newunitofaccountusedforthegeneral Community budgetsince
1.1.1978 butforalreadyseveralyearsbytheEIBandtheECSC.Seealso
foot-note topoint7.
(2)Frenchoverseas departments
(3)Assistance perheadisbasedonthetotalpopulation ofWallonia,and
notonthatoftheaidedareasalone.
./.

-23-
f -XI .JB
Τ Τ■ Τ=3·

-24-
Mezzogiorno
45.TheMezzogiorno hasasurfacearea,33Aofitmountain,whichcovers
40,8%ofthewholeofItaly,andapopulation comprising some35%ofthe
Italianpopulation (7.8%oftheCommunity),yetitprovides only30of
employment throughout thecountry (5.9%oftheCommunity total).The
southern regionsprovide54.4%ofnational employment inagriculture ,
against 23%forindustry and27.7%fortheservicesector.Theactivity
rateisonly34.8%andinOctober 1977unemployment stoodat10.5%.In
absolute termstherewere700,000unemployed intheMezzogiorno ,ofwhom
over400,000 wereagedbetween 15and19years.
Itisnotpossible togiveapreciseindication oftheamountsofpublic
expenditure onthedevelopment oftheMezzogiorno ,butonecanestimate,
veryapproximately thecapitalexpenditure ofcertain publicadministra­
tions(1)fortheperiod1974-1976 .Theseamounttosome12,000million
u.a.,ofwhich5,100millionu.a.isaccounted forbyoperations ofthe
CassaperilMezzogiorno .Itisincomparison withtheseordersof
magnitude thatCommunity assistance intheMezzogiorno duringthethree
yearsofregional Fund(1975-1977 )mustbejudged :
Grants
-Régional Fund 423m.u.a.
-Agricultural Fund 74m.u.a.
(Guidance Section )
Loans (2)
-European Investment Bank 772MEUA
-ECSC 267MEUA
Regional FundgrantsineachregionoftheMezzogiorno areexamined in
thefollowing pages.Incomparing Regional Fundgrantsandnational
publicexpenditure (especially thatoftheCassa)thefollowing points
shouldhowever beborninmind:thechoiceoftheprojects submitted
forFundgrantmadebytheItaliangovernment concerned theMezzogiorno
takenasawholeandalsotookaccountofthetime-scale fortheimple­
mentation ofcertainprojects;andsecondly,national publicexpenditure
intheMezzogiorno coversprojects whichareineligible ,oronlypartly
eligible,forRegional Fundgrant.Itistherefore .possiblethatRegional
Fundgrantstoagivenregionmaynotbeinproportion tonational
expenditure .
(1)FortheCassaperilMezzogiorno :expenditure otherthatoninterest
rebatesforindustrial investments ;forthecentraladministration :
expenditure bytheMinistries ofAgriculture andPublicWorks;forthe
regions :budgetestimates .
(2)Point43.
./.

Abruzzi
46.Themostnortherly regionoftheMezzogiorno ,Abruzzihasarelatively
smallpopulation of1,221,000 inhabitants .Productperheadisamong
thehighestoftheMezzogiorno ,butnevertheless in1976reachedonly
43%oftheCommunity average (at1976pricesandexchange rates.).
Unemployment ,at8.2%inOctober 1977,isneartheMezzogiorno average.
Over65%oftheregion "ismountain,withonly25%ofthepopulation
intowns withapopulation ofover50,000;thereisaclear
imbalance betweeninlandareassuffering fromaprocessofdepopulation
andcongested coastalzones.Theregionsuffered fromanetoutward
migration from1951-71 (300,000persons,or1.2%ofthepopulation per
year)andthereisconsequently anageingpopulation ,withthebirthrate
(12.9%)lowerthantheItalianaverage.Morerecently Abruzzihasseen
areturnofmanymigrants,aboveallfromabroad (some20,000person
from1971to1976).
Duringtheperiod1974-76capitalexpenditure bytheItalianpublic
authorities (1)canbeestimated veryroughlyat830millionu.a.which
corresponds onaverageto9%and33%respectively ofGDPandinvestment
intheregion.Ofthis,460millionu.a.represents expenditure bythe
CassaperilMezzogiorno
TheCommunity contribution forthefirstthreeyearsofRegional Fund
activity mustbejudgedincomparison withtheabovefigures :
6rants_
-Régional Fund 30m.u.a.
-AgriculturalFund:Guidance Section 6m.u.a.
Loans_(2)
-European Investment Bank 52MEUA
Regional Fundaidin1977
Ofthe23.97millionu.a.grantedtotheregionin1977(12.5%oftotal
contributions toItaly),44.8%(10.73millionu.a.)wasfor37projects
inindustry representing atotalinvestment of57.4millionu.a.and
designed tocreate2,000jobs.Byamountofinvestment ,projects inthe
rubberandplastics sectorsareinthelead,followed bymetalproduction
andprocessing ,processing ofnon-metal minerals andthefoodindustry .
lDlr§§tructure_Brgiects received 13.24millionu.a.Nineindustrial
estateprojects wereaided,withacontribution of1.9millionu.a.,
andaroadprojectconcerning various communes ofChietiprovince
received 11.3million u.a.towards aninvestment of48.5millionu.a.
(1)Point45,footnote 1.
(2)Point43.
(3)ofwhich50%(9.2MEUA)ofaloanconcerning Moliseaswell.

-26-
.Basilicate
47.Withitssmallpopulation (617,000personsin1976)andthelowest
population density (62personsperkm2)ofthesouthern regions,
Basilicate isamongthepoorestoftheCommunity'sregions.Gross
domestic productperheadin1976(38.1%oftheCommunity averageat
currentpricesandexchange rates)isafewpointslowerthanthe
averagefortheMezzogiorno ,andunemployment (14.0%inOctober 1977)
isratherhigher.
Only8%ofthesurfaceareaoftheregionisflat,with47%mountain
and45Zotherhillareas.Industrial development cannottherefore
bewidelyspread,andtheimbalance betweentheinterior andthelimited
coastalplanesispronounced .Therearefewlargetowns(only10%ofthe
population liveintownsofover50,000people)andurbaninfrastructures
andservices areinadequate .Ahighnetoutwardmigration (222,000
persons,thatisnearly36%ofthecurrentpopulation ,overtheperiod
1951-76)hasledtoagradualincrease inaverageage.Themainactivity
remainsagriculture ,whichprovided 35%ofemployment in1976.
Overtheperiod1974-76capitalexpenditure bytheItalianpublic
authorities (1)canbeestimately veryroughlyat810millionu.a.,
whichcorreponds to20%and46%respectively ofthegrossdomestic
productandofinvestment intheregion.Ofthistotal,390millionu.a.
represents theexpenditure oftheCassaperilMezzogiorno .
TheCommunity contribution overthethreeyearsoftheRegional Fund's
activity<1975-77 )mustbejudgedbycomparison withtheabovefigures :
Grants
rRégional Fund 13m.u.a.
-Agricultural Fund:Guidance Section 18m.u.a.
Loans_(2 )
-European Investment Bank(3) 100MEUA
Regional Fundaidin1877
In1977,FundgrantstoBasilicata amountedto2.3%oftotalFund
assistance toItaly.Totalcontributions were4.36millionu.a.,ofwhich
2.98millionu.a.(68.3%)wereforindustrial_activit^.8projectsin
thisfieldwerefinanced,representing atotalinvestment of17.1million
u.a.Theseprojects shouldcreatemorethan500jobs.Byamountofinvest­
ment,mechanical engineering isinthelead,followed bymotorvehicle
construction andtheprocessing ofnon-metallic minerals .
Threetouristinfrastructure_grojects receivedaidtotalling 200,000u.a.;
Fundgrantswerealsomadefor43publicinfrastructure projects inless
favoured mountain andfarmingareas(amounting to1.18millionu.a.
(1)Point45,footnote 1.
(2)Point43.
(3)ofwhich,50%(61,3MEUA)ofloansinvolving also
ApuliaandCalabria .
./.

-27
Calabria
48.Situated intheextremesouthofItaly,withanaveragesizeofpopulation
(2,048,000 in1976)and42%ofitssurfaceareamountain,Calabriais
thepoorestregionintheCommunity .In1976grossdomestic productper
headwasalmost 8%belowtheaveragefortheMezzogiorno andonly30%
oftheCommunity average.Theunemployment rate,at13.6%inOctober
1977,isclosetotheMezzogiorno average.
Asaresultofthehighbirthrateinthe1950s,nowdownto16.2%,the
massiveemigration between 1951and1976(730,000persons,or36%of
thepresentpopulation )barelyreducedthetotalpopulation ,although
theregionlostlargenumbersofworkingage.Anagriculture withvery
lowproductivity stilldominates economicactivity,andprovided 29.2%
oftotalemployment in1976.Pastinvestment hasbeenverylowsothat
industrial activity hardlyexists.Urbanstructures andservices are
alsoveryweak.
Capitalexpenditure intheregionbytheItalianpublicauthorities (1)
overtheperiod1974-76canbeestimated veryapproximately at1,140
millionu.a.,whichcorresponds to10%and29%ofGDPandinvestment
respectively .Ofthis,600millionu.a.wasaccounted forbythe
operations oftheCassaperilMezzogiorno .
TheCommunity contribution duringthethreeyearsofFundactivity
(1975-77)mustbeassessed inrelation totheabovefigures :
Grants
-Régional Fund 39.8m.u.a.
-Agricultural Fund:Guidance Section 4.9m.u.a.
Loans (2)
-European Investment Bank 74MEUA
Regional Fundaidin1977
In1977,FundaidtoCalabriatotalled 10.12millionu.a.(5.3%of
totalFundassistance toItaly)andwasallocated entirelyfor .
iUll§§£Jiy£jyi® projects :
-oneprojectconcerning thesecondphaseofconstruction ofthe
international airportofLamezia TermeatCatanzaro forwhich6.2
millionu.a.wasgranted,towards atotalinvestment of33.0million
u.a.;
-95publicinfrastructure projects inlessfavoured mountain and
farmingareas,whichreceived aidof3.92millionu.a.Theprojects
concerned weremainlycountryroads.
(1)Point45,footnote 1.
(2)Point43.
./.

-28-
Campania
49.With5,335,000 inhabitants in1976,Campania hasapopulation densityof
392personsperkm2,thehighestinItalyafterLombardy (nationaverage
187).Grossdomestic productperheadin1976wasjustbelowtheMezzo-
giornoaveragebutonly37.3%oftheCommunity average.Unemployment ,
at11.2%inOctober1976,isslightly abovetheaveragefortheMezzo-
giorno
Therateofnaturalpopulation increase,whelmingly concentrated inthe
coastalareasandmainlyintheNaples-Salerno-Casertatriangle,is
amongthehighestintheNine(1.3%).Incomedistribution isalsovery
unbalanced asaresult,amongotherthings,oftheconcentration of
population onthecoastanddepopulation ininlandareas.
Campania possessed themostextensive industrial sectorintheMezzogiorno
andconsequently theshareofindustrial employment (32.7%oftotal
employment in1976)isalsothehighest.Muchoftheindustry however
requires majormodernisation andconversion .
Capitalexpenditure intheregionbytheItalianpublicauthorities (1)
from1974to1976canveryestimated veryroughlyat1,980millionu.a.,
representing 6%ofGDPand33%ofinvestment .Ofthistotal,930million
u.a.isaccounted forbytheoperations oftheCassaperilMezzogiorno .
TheCommunity contribution forthethreeyearsofRegional Fundactivity
todate(1975-77 )mustbeassessed inrelation totheabovefigures :
Grants
-Régional Fund
-Agricultural Fund:Guidance Section
Loans (2)
-European Investment Bank 138MEUA
Regional Fundaidin1977
In1977,totalgrantscameto33.95millionu.a.,ofwhich14.11million
u.a.(41.6%)wereforindustrial activities and19.84millionu.a.(58.4%)
forinfrastructure .Theycomprised 17.7%ofallaidtoItaly.
The44industrial_gr02ects whichbenefitted represented atotalinvest­
mentof92.7millionu.a.,andshouldcreatesome3,000jobs.Themost
important project wasforthecreation ofacopperwirefactoryinAvellino
province;totalinvestment was12.8millionu.a.andtheFundgrant1.0
millionu.a.Amongtheotherprojects,byvolumeofinvestment ,the
processing ofnon-metallic minerals wasinthelead,followed bymetal
production andprocessing ,rubberproduction ,plastics,andtheelectrical
andelectronics industry .
(1)Point45,footnote 1.
(2)Point43.
./.103m.u.a.
6m.u.a.

119infrastructure projects werefinanced :
-4"large"projects (1),ofwhichoneinvolvedcostructing awater
purification systemtoovercome thepollution oftheBayofNaplesin
various communes oftheprovinces ofNaplesandCaserta;twoconcern
linkroadstoindustrial estates,andthelastthebuilding ofan
aqueduct carrying watertotheislandofCapri.Thegrantstotalled
13.7millionu.a.andtheinvestments concerned 275.2millionu.a.
-14projects (withgrantsof3.03millionu.a.),ofwhich12weresea­
sidetouristdevelopments ,oneaninlandtouristprojectandonethe
development ofanindustrial estate.
-102publicinfrastructure projects inlessfavoured mountain andhill
farmingareas,foratotalaidof3.11millionu.a.Theseprojects were
concerned essentially withruralroads.
Molise
50.Tinyregionwith331,000inhabitants andwhosesurfaceareais55%
mountain,Moliseisundoubtedly oneoftheleastfavoured regionsof
theCommunity .Grossdomestic productperheadiswellbelowthe
averagefortheMezzoaiorno andin1976amounted toonly34.8%ofthe
Community average.Unemployment ,8.3%inOctober1976,isslightlyless
thantheMezzogiorno average.
Theregional economyisbasedessentially onagriculture whichin1976
provided 21%ofregional product and41%ofemployment .Overtheperiod
1951-71thepopulation declined considerably (by19%)andemployment
evenmoreseriously (by41%).Themassiveemigration (2.1%peryearfrom
1951-76)hasledtoahighproportion ofolderpeopleinthepopulation ,
whichhasabirthrate,at12.8%,nowamongthelowestinItaly.There
arenotownswithover50,000inhabitants andurbanstructures and
services arenadequate .Thegapbetweentherelatively strongzonesand
themountainous areasisgrowingandcommunications withintheregion
remainverydifficult .
Overtheperiod1974-76capitalexpenditure bytheItalianpublic
authorities (2)maybeestimated veryroughlyat230millionu.a.,
representing onaverage 11%ofGDPand31%ofinvestment intheregion.
Thistotalincludes expenditure bytheCassaperilMezzogiorno of75
millionu.a.
(1)Equaltoormorethan10m.u.a.
(2)Point45,footnote 1.

-29a-
TheCommunity contribution overthethreeyearsofRegional Fundactivity
(1975-1977 )mustbeassessed inthecontextoftheabovefiguresfor
national expenditure :
Grants
-Régional Fund 6.7m.u.a.
-Agricultural Fund:Guidance Section 0.9m.u.a.
Loans(1)
-European Investment Bank(2) 15.4MEUA
Regional Fundaidin1977
in1977,FundaidtoMolisetotalled 4.18MUA,or2.2%ofthetotalfor
Italy.
(1)Point43.
(2)Including 50%(9.2MEUA)ofaloaninvolving AbruzziaswelL

-30-
SixindustriaL_grojects werefinanced withgrantsamounting to3.08millionu.a.(73.7%ofthetotalcontribution toMolise)foratotal
investment of19.9millionu.a.;theseshouldcreatemorethan500jobs.
Byvolumeofinvestment ,metalmanufacturing wasinthelead,followed
bythefoodindustry andtheprocessing ofnon-metallic minerals .
TheFundfinanced oneinfrastructure_gr02ect ,concerning thedevelopment
ofanindustrial estateatCampobasso ,withagrantof150,000u.a.42
publicinfrastructure projects werealsofinanced inlessfavoured
mountain andhillfarmingareas,withgrantstotalling 950,000u.a.
51.Economic andsocialindicators givehopethatApulia,theonlylarge
flatregioninsouthernItaly(only1.5Zofitsareabeingmountain),
andwitharelatively largepopulation (3,819,000 in1976),willbe
amongthefirstregionsoftheMezzogiorno toreacheconomicviability .
Grossdomestic product,whileonly38.2%oftheCommunity averagein
1976,iswellabovethatfortheMezzogiorno ;unemployment ,at7.2%
inOctober 1977,isbelowtheaverageratefortheMezzogiorno regions
takentogether .
Apuliahasnotsuffered fromthesamemassemigration asotherMezzo-
giornoregions,andevenifagricultural employment isstillfairlyhigh
(33.9%in1976)thegoodqualityofthelandwillallowaslowerrun­
downthanelsewhere,givingothersectors,especially industry,timeto
takeuptheslack.Thegoodqualityland-45%ofthelandwhichis
irrigated orcanbeirrigated throught theMezzogiorno issituated in
Apulia-meansthatproductivity isrelatively satisfactory .Theregion
alsohasadequate anddiversified urbanstructures andservices;and
investment undertaken inthepasthasbeensubstantial innearlyall
sectors .
Publiccapitalexpenditure during1974-76 bytheItalianauthorities (1)
maybeestimated veryroughlyat1,970millionu.a.,whichcorresponds
tosome7%and23%respectively ofGDPandinvestment .Expenditure by
theCassaperilMezzogiorno accounts for1,070millionu.a.withinthat
amount.
TheCommunity contribution forthethreeyearsoftheRegional Fund's
activity (1975-77)mustbejudgedbesidetheabovenational figuresApulia
Grants
-Régional Fund
-Agricultural Fund:Guidance Section66m.u.a
11m.u.a
Loans (2)
-European Investment Bank(3)
-ECSC227MEUA
261MEUA
(1)Point45,footnote 1.
(2)Point43.
(3)Including half(30MEUA)ofaloaninvolving alsoBasilicata .

-31-
Regional Fundaidin1977
In1977,FundaidtoApuliaamounted to17.9%oftotalFundassistance
toItaly.Totalgrantswere34.45million u,a.ofwhich18.04million
(52.5%)wereforindustrial activities and16.4million (47.6%)for
infrastructure .
lQdustri^l_acti vities
Twoprojects ofmorethan10millionu.a.werefinanced in1977:one
wasfortheextention ofafactoryforthemanufacture ofheatingequip­
mentatBari,theotherforafactoryproducing chemical productsat
Brindisi .Thetotalinvestment was84millionu.a.andFundaid6.7
millionu.a.Theseinvestments shouldcreatenearly700jobs.
Inaddition 42smallerprojects havereceived atotalcontribution of
11.34millionu.a.forinvestments totalling 64millionu.a.;these
shouldcreate2,400jobs.Ininvestment volumetheprocessing ofnon-
metallic minerals headedthelist,followed byelectrical andelectronic
engineering ,foodmanufacturing andmetalgoods.
lDl£§§îiy£îy£ e
Twoinfrastructure projects werefinanced .Oneconcerns thedevelopment
oftheportofTaranto (investment 73.2millionu.a.;grant11.5million
u.a.);theotheranindustrial estateatFoggia.Additionally 63public
infrastructure projects havebeenfinanced,toatotalof13.06million
u.a.ingrants,inlessfavoured mountain andhillfarmingareas.These
projects areconcerned essentially withtheextension ofelectrical
supplynetworks andruralroads.
Sardinia
52.Withitsrelatively smallpopulation (1,568,000 in1976)andlowpopulation
density (65personsperkm2),Sardinia hasperhaps mademoreprogress than
anyotherMezzogiorno regionsincethewar.Grossdomestic productper
headstandsamongthehighestintheItaliansouth,althoughitamounted
in1976toonly41.4%oftheCommunity average.Unemployment (12.2%in
October 1977)ishoweverworsethantheMezzogiorno average.
Tourismhasbrought aconsiderable expansion oftheservices sectorwhich
in1976provided 52%oftotalemployment .Employment inagriculture has
declined to20%,whichisthelowestrateintheMezzogiorno ,butstill
highcompared withtheCommunity average.Pastindustrial development ,
mainlyinthebasicsectorssuchaspetrochemicals andoilrefining has
beengeographically unbalanced andisconcentrated almostexclusively
aroundCagliari andSassari,withthecentralbeltandaboveallthe
easternpartoftheislandstillgravely lackingintermsofurban
development ,industrialisation andinfrastructure .

-32-
Capitalexpenditure bytheItalianpublicauthorities (1)in1974-76
canbeveryroughlyestimated atsome1,620millionu.a.,which
represents 14%ofregional GDPand34%ofinvestment .Ofthistotal,
650millionu.a.isaccounted forbyexpenditure bytheCassaperil
Mezzogiorno .
TheCommunity contribution forthethreeyearsoftheRegional Fund's
activity (1975-77)mustbeassessed incomparison withtheabove
approximate figuresfornational expenditure :
Grants
-Régional Fund 83m.u.a.
-Agricultural Fund:Guidance section 2m.u.a.
Loans_(2 >
-European Investment Bank 16MEUA
Regional Fundaid
In1977,Fundcontributions totalled 11.79millionu.a.,ofwhich2.73
millionu.a.(23.1%)werefor12industria l_gro2ects representing a
totalinvestment of15.5millionu.a.,andwhichshouldcreatemorethan
500jobs.Byinvestment volume,non-metallic minerals wereinthelead,
followed bywoodandmetalgoods.
lDl£i§iCy£iyE§_B£2i§£i §financedtotalled 17projectsinvolving the
development ofindustrial estates,(grantsof8.39millionu.a.)anda
further 17inlessfavoured mountain andfarmingareas(grantsof
670,000u.a.).
Totalaidin1977was6.1%oftotalFundgrantstoItaly,compared with
16%forthethreeyears1975-77.Thedifference isduemainlytothe
verylargegrant(36.6millionu.a.)madein1976forthenewindustrial
canal-port atCagliari .
Sicily
53.OneofthelargestItalianregions (25,708km2inareawithapopulation
of4,902,000 in1976),Sicilyisoneoftheleastdeveloped partsofthe
Community .Grossdomestic productperhead,slightly abovetheaverage
fortheMezzogiorno ,amounted in1976to38.4%oftheCommunity
average.InOctober 1977thenumberofregistered unemployed stoodat
10.9%oftheworkingpopulation despitesubstantial emigration amounting
tonearlyamillionpersons,oralmost 1%peryear,overtheper-'id
1951-76 .
Sicilyalsomanifests majorinternal imbalances :ontheonehand,the
polarisation ofexpansion inthePalermoconurbation andcitiesof
Syracuse,Augusta andCatania,andontheother,theimpoverishment
oftheinlandareaslargelydependent onrelatively backward agriculture .
(1)Point45,footnote 1.
(2)Point43.

-33-
Theinadequate urbanstructures andservices gohandinhandwitha
weakstructure ofproduction andawork-force amounting in1977toonly
32.6%ofthepopulation -thelowestactivity ratethroughout the
Mezzogiorno .
Capitalexpenditure bybytheItalianpublicauthorities (1)during
1974-76 canbeestimated veryapproximately at3,400millionu.a.,
corresponding to10%and37%respectively ofregional GDPandinvestment .
Thisfigureincludes 940millionu.a.ofexpenditure bytheCassaperilMezzogiorno
TheCommunity contribution duringthethreeyearsofFundactivity
(1975-77 mustbeassessed bycomparison withtheabovefiguresfor
national expenditure :
Grants
-Régional Fund 82m.u.a.
-Agricultural Fund:Guidance Section 25m.u.a.
Loans(2)
-European Investment Bank 147MEUA
-ECSC 6.5MEUA
Regional Fundaidin1977
In1977,totalFundassistance toSicilycameto28.59millionu.a.,of
which4.72million (16.5%)wereforindustrial activities and23.87
millionu.a.(83.5%)forinfrastructure projects .Sicilyreceived 14.9%
oftotalcontributions toItaly(15,7% .forthethreeyears1975-77).
lQS!y§£rl§i_EE2i®££ §werefinanced,representing atotalinvestment
of24.6millionu.a.,whichshouldcreate800jobs.Ininvestment volume,
rubberandplastics wereinthelead,followed bychemicals andnon-
metallic mineral products .
Twomajorinfrastructure_groiects werefinanced fromtheFundforatotal
of17.8millionu.a.5newasforbuilding aroadnetworktolinkthe
industrial estatesofCatania andMisterbianco ;theotherfordeveloping
theindustrial andportareaofSyracuse .Thelatterwasinfactafurther
stageofworkswhichreceived Fundgrantsin1975andin1976;afurther
application isexpected for1978.
(1)Point45,footnote 1.
(2)Point43.

-34-
Ireland
54.TheRepublic ofIreland,whichiseligible initsentiretyforFundaid,
hasapopulation of3,160,000 people.Itislargelydependent ona
relatively pooragriculture ,providing 24%oftotalemployment in1975,
and,linkedwiththis,thefoodprocessing industry.Manufacturing
industryrepresents onlysome30%ofemployment ,althoughitshowsrapid
growth,asdoestheeconomyasawhole(anestimated growthingross
domestic productof5.5Xin1977).However,majorproblems remaininthe
employment field,stemming inparticular fromtherapidincreaseofthe
activepopulation ,averyhighbirthrateandapronounced dropinoutward
migration .WithinthecountrytheDublinarea,withathirdofthetotal
population,andtherestofthecountrythereisanimbalance betweenthe
Dublinarea,witha.thirdofthe.totalpopulation ,andtherestofthe
countrywhereasparcepopulation isheavilydependent onagriculture .On
average,in1971,farmingprovided some36%ofemployment intheselatterregions
Unemployment in1977wasatanannualaveragerateof9.8Xoftheactive
population .Grossdomestic product,in1976,althoughslightly higherthan
thatoftheMezzogiorno ,wasstillamongthelowestintheCommunity atsome
48XoftheCommunity average (atcurrentpricesandexchangerates).
Overtheperiod1975-77expenditure onaidstoindustry bytheIrish
authorities totalled 725millionu.a.ingrants (plussome660millionu.a.
inloans).Inaddition,publicinfrastructure investment amountedto
1,210millionu.a.Community financial assistance granted,whichmustbe
seeninrelation withtheabovefiguresfornational expenditure ,werein
thesameperiod :
Grants
-Régional Fund
-Agricultural Fund:Guidance Section84m.u.a.
52m.u.a.
Loans(12
-European Investment Bank 175MEUA
2.5MEUA ECSC
Regional Fundaidin1977
In1977FundaidtoIrelandtotalled 30.32millionu.a.,ofwhich13.47
(44.4%)wereforindustry and16.85(55.6%)forinfrastructure .
(1)Point43.

-35-
IndustriaL_açtivit ^
Fourlargeprojects,ofmorethan10millionu.a.,werefinanced,
representing grantsof8.7millionu.a.andtotalinvestment of83.7
millionu.a.Thesefourprojects,whichshouldcreate .3,700'jobs,concern
newfactories makingsynthetic fibres(inCountyKerry),electrical
equipment (CountyKildare),refrigerated unitsforlorries (Galway)and
surgical products (CountyMayo).
/11otherprojects havealsobeenfinanced,representing atotalinvestment
of37.9millionu.a.;theseshouldcreatenearly2,500jobs.In
investment volume,mechanical engineering wasinthelead,followed by
chemicals andelectrical andelectronic engineering .
TheFundfinanced 58infrastructure projects in1977:
-42projects,withatotalinvestment costof47.1millionu.a.,including
onelargeproject (1)concerning thedevelopment ofCorkharbour.
Grantsamountedto10.8millionu.a.Ininvestment volume,thedevelop­
mentofindustrial estatestoppedthelistfollowed bytelephone
installations .
-16publicinfrastructure projects inlessfavoured mountain andfarming
areas.Theprojectsessentially concernwatersupply,sewerage and
telephone installations ,andthetotalgrantamountedto6.03millionu.a.
Northern Ireland
55.Northern Irelandisfacedwithtwotypesofmajorproblem.Unlikethe
otherregionsoftheUnitedKingdom,itdependsfairlyheavilyonagri­
culture,whichprovides 8.1%oftotalemployment ,comparedtoanational
averageof2.6%.Italsosuffersfromthedeclineoftraditional
industries situated mainlyintheBelfastarea.Jobsintextiles,clothing
andshipbuilding ,accounted for19%ofemployment tenyearsago,but
only12.5%in1976.Thereisanimbalance withintheregionbetweenthe
heavilypopulated urbanareaofBelfastandtheotherareaswherethe
population isgenerally widelydispersed .
(1)Investment of10m.u.a.orover.

-36-
Theunemployment rateisthehighestintheUnitedKingdom,withanannual
averageof10.0Xin1977;outwardmigration isalsosignificant .With
averyhighbirthrateuntilrecently,theactivepopulation isincreasing
considerably .Grossdomestic productperheadin1976stoodat59%of
theCommunity average.
Forthefinancial years1975/76and1976/77totalaidstoindustry amounted
to348millionu.a.Publicinvestment ininfrastructure benefitting economic
development (butalsothepopulation ingeneral)totalled some670million
u.a.Community helptotheregionmustbejudgedinrelationtotheabove
figures :
Regional Fundaidin1977
In1977,Fundaidtotalled 22.47millionu.a.,ofwhich11.27million
<50.1%)wereforindustry and11.20million (49.9%)forinfrastructure .
Theoverallfigureamountsto15.4%ofalltheFundaidtotheUnited
Kingdom.
lD^ystrial _activity
TheFundfinanced fourlargeprojects (2)representing atotalinvestment
of142.6millionu.a.,andgrantsof10.1millionu.a.Theseprojects,
whichshouldcreate2,500jobs,concernatextilefactoryinLondonderry
andthreefactories inBelfastformetalprocessing ,manufacture of
carburettors ,anddrilling equipment .
Eightotherprojects werefinanced,withatotalinvestment costof6.5
millionu.a.,andintendedtocreatemorethan600jobs.Ininvestment
volumemechanical engineering andthehotelsectorweremostimportant,
followed byelectrical andelectronic engineering .
IDI£â5îru£îure
Oneprojectofmorethan10millionu.a.wasfinanced,concerning high-
tensionelectricity supplyinvariousareas.Totalinvestment was47.9
millionu.a.,andtheFundaid6,4million.26otherprojects,(represent­
ingatotalinvestment of31.6millionu.a.)received Fundhelptotalling
4.78millionu.a.Byamountofinvestment thedevelopment ofindustrial
estatesheadedthelist,followed byportdevelopments .Onewater-supply
projectinalessfavoured mountain farmingareareceived agrantof
20.000u.a.
(1)Point"43 .
'2>Investment equaltoormorethan10millionu.a.-Grants
-Régional Fund
-Agricultural Fund:Guidance Section58m.u.a.
17m.u.a.
Loans(1)
-European Investment Bank 28MEUA

Greenland
56.Greenland facesquitespecialproblems duetotheharshclimate,thesize
oftheterritory andthelowpopulation density (0.1perkm2).Itis
infactthelargestandleastpopulated regionoftheCommunity (50,000
inhabitants ).Theincrease inpopulation isduetoafairlyhighrateof
immigration .Attheendofthesixties unemployment startedtoincrease
following thefishingcrisis,andin1974thelevelofunemployment was
estimated atsome8Incomeperheadwas1,380u.a.forGreenlanders
and4,890u.a.forimmigrants ,whorepresented 20%ofthepopulation .
Publicinvestments bytheMinistryforGreenland inhousing,electricity ,
transport andcommunications totalled 72millionu.a.in1975and1976,
andareestimated atsome60millionu.a.in1977.Community aidover
thesameperiodamounted to13.14millionu.a.fromtheRegional Fund
390,000u.a.-fromtheGuidance SectionoftheAgricultural Fund,and
aloanof7million EUA(1)fromtheEuropean Investment Bank.
Regional Fundaidin1977
GrantstoGreenland in1977cameto5.37millionu.a.,or82%ofall
grantstoDenmark,andtheyallconcerned nfrast£U£ture_grojects .In
all51projects wereaided,representing atotalinvestment of20million
u.a.Portinstallations ,educational buildings ,andairport andtelephone
installations ,inthatorderwereofthegreaterimportance involumeof
investment .
FrenchOverseas Departments (DOM)
57.Theoverseas departments considered inthisreportare(2)
Population Density/km2
(1974) (1974)
Guadaloupe 324,530 182
Martinique 324,852 295
Reunion 476,675 190
Guyane 55,125 0,6
Despitetheeffortsalreadyundertaken theDOMfaceparticular problems
relatedtodistance frommetropolitan France,topopulation growth
(57%in20years),topopulation density,tounemployment (affecting
20%oftheactivepopulation )andthepredominance ofagriculture which
employstwiceashighaproportion oftheactivepopulation asin
metropolitan France.Thissituation hasmuchtodowiththenegative
migratory balanceoftheDOMwiththeexception ofGuyane.
Thefollowing figures,thoughincomplete ,giveanindication ofthe
importance ofFrenchgovernment expenditure fortheeconomic development
ofthefourdepartments :
(1)Point43.
(2)TheislandsofSt.Pierre-et-Miquelon optedforDOMstatus
in1976 butnoaid-fromtheRegional Fundhas
beenappliedfortodate. ,

-3b-
-Specialtaxbenefits forproductive
investments (1976-77 )
-equipment grants(1975-77)18.0m.u.a.
16.?m.u.a
31,9m.u.a -infrastructure investment (1974-1976 )
Community aidoverthethreeyearsoftheRegional Fund'sactivity
(1975-77 )amounted to:
Guadaloupe Martinique Reunion Guyane Total
Grants
-Régional Fund(m.u.a.)
-Agricultural Fund4.17 3.56 2.792.21 12.73
(Guidance )(m.u.a.)
-European Development Fund0.65 2.91 1.120.75 5.43
1.55 1.55
Loans(1)
-EIB(MEUA)(2) 0.70 0.70
Regional Fundaidin1977
The2.06millionu.a.grantedtotheDOMin1977represented 2.9%ofall
Regional FundgrantstoFrance.Theaidgranted wasfor18industrial
grojectS/representing atotalinvestment of16.6millionu.a.,which
shouldcreate650jobs.Involumeofinvestment themanufacture ofwooden
goodsheadsthelist,followed bymineralextraction ,andthechemical and
foodindustries .Thebreakdown betweendepartments wasasfollows :
1.33millionu.a.forGuyane;310,000u.a.forGuadeloupe ;230,000u.a.
forMartinique and190,000u.a.forReunion.
58.Corsica wastreateduntilrecently asformingpartofProvence-CSte-d'Azur;
therearetherefore relatively fewstatistics onCorsicaalone.The
island'seconomyisbasedmainlyonagriculture andtourism,smalland
medium-sized industrystillbeinglittledeveloped .Population density
isthelowestofCommunity regionsalthoughithasrisenmorerapidlythan
thenational average.Theunemployment recordedisrelatively low(annual
averagerateof3.4%in1977).Somestandard oflivingindicators
(domesticelectricity consumption andthenumberofprivatecars,for
example)suggest alevelofdevelopment whichwillhavetobesupported
toreachthatoftheotherFrenchregions.However,thesefiguresare
insufficient tomakeanassessment ofthisregion,geographically very
different fromtherestofFrance.
(1)Point43.
(2)Loanmadefromresources oftheEuropean Development Fund.Corsica

-39-
In1976Francemadeavailable 800/000u.a.forgrantsforproductive
investments anddecentralisation grantsintheregion/plusmorethan
300/000u.a.intaxremissions .Investment intransport/airportand
otherinfrastructure /including thatinlessfavoured mountainregions/
weresome20millionu.a.in1975.
TheCommission hasnootherfigures,butcompared withtheseapproximate
totalsRegional FundaidtoCorsica (7.5millionu.a.in1975-77/or3.9%
oftotalcontributions toFrance)seemtohavebeenrelatively high.The
regionalsobenefitted fromnearlyonemillionu.a.received fromthe
Guidance SectionoftheAgricultural Fundoverthesamethreeyears.
Regional Fundaidin1977
In1977FundaidtoCorsica was2.1'/.oftotalFundaidtoFrance/at
1.47millionu.a.Itconcerned 112Dlr35£iy££yie_Br2i££l:S /allfor
newroads,forwhichthetotalinvestment costwas4.9millionu.a.
TheNorthofEngland
59.TheNorthern RegionofEngland/with3/120/000inhabitants /isanold
industrial regionwhichsuffersfromtherun-down ofitstraditional
industries .In1976coal/steel/shipbuilding /textiles andclothing
accounted for16%oftotalemployment /against 25%tenyearsago.
Shipbuilding andrepairing /whichemploywithintheregionroughly a
quarterofnational employment inthesector/poseparticular problems .
Theregionalsofacessevereurbanandenvironmental problems-poor
housing,inadequate economicinfrastructures /socialproblems andthe
lossofjobsandpopulation ininner-city areas.
Unemployment in1977reached8.4%ofthework-force asagainst anational
rateof5.9%.Grossdomestic productperheadin1975was95%ofthe
national averageand74%oftheCommunity average.
Forthefinancial years1974-75/1975-76and1976-77/national expenditure
onindustrial aidwas1,200millionu.a./ofwhichsome400millionfor
regional employment premiums/nowdiscontinued .Nofiguresareavailable
onwhichtoestimate theimportance toeconomic development ofinfra­
structure investments .
Community assistance totheregionin1975-77 was:
Grants
-Régional Fund
-Agricultural Fund:Guidance Section108m.u.a.
3m.u.a.
Loans(1)
-European Investment Bank(2)
-ECSC240MEUA
362MEUA
(1)Point43.
(2)Including 50%(98.5MEUA)ofloansalsoinvolving otherregions
(Yorkshire andHumberside /andScotland).

-40-
Regional Fundaidin1977
Totalaidin1977was46.06millionu.a.,ofwhich21.17million <46.0%)
forindustrial activities and24.89million (54%)forinfrastructure .
IOdustriaj._actiyities
TheFundgranted 19millionu.a.forsixlargeprojectsofover10million
unitsofaccount,representing atotalinvestment of182millionu.a.
Theseprojects shouldcreate1,800andmaintain 4,500jobs.Ofparticular
importance weretheconstruction ofacigarette factoryatDarlington ,and
themodernisation ofaBritishSteelCorporation worksatRedcarandofa
glassworks atSunderland .
Sixotherprojects received Fundgrants,representing atotalinvestment of
9.9millionu.a.;theyaimtocreateormaintain some400jobs.Electrical
andelectronic equipment wastheprincipal sectorconcerned .
Infrastructure
Fivelargeprojects,over10millionu.a.,wereaided:theKielder dam,
theEden-South Lakeland watersupplynetwork,roadimprovements inCleveland,
harbourimprovements atTees-Dock (Cleveland )andanelectricity supply
networkatStockton-on-Tees.Totalinvestment involved was288.8million
u.a.andtotalFundaid17.4millionu.a.Itshouldbenotedthatthe
Kielder damispartofthemajorprojectforbuilding areservoir andadue-
ductslinkingthreeriversandservingindustrial areasontheeastcoast
oftheregion.DuringthethreeyearsofFundactivitythisprojecthas
receivedgrantstotalling 25.5millionu.a.
77smallerprojects havealsobeenfinanced,withatotalinvestment cost
of76.5millionu.a.andgrantstotalling 7.5million.Byinvestment
volume,generalservicesforindustrial estateswereinthelead,followed
byenergysupplyandportinstallations .
TheNorthoftheNetherlands
60.Theprovinces ofGroningen,Friesland andDrenthetakentogether coversome
22%ofNetherlands territory withonly11%ofthepopulation .After
Zeeland,they havethelowestpopulation density.Employment infarming
(9.8%oftheworkforce )isequaltotheCommunity averagebutthehighest
inthecountry (national average5.8%).Unemployment isthehighestin
thecountryafterLimburg;andgrossdomestic productperhead,quitehigh
inGroningen,isconversely only82%and84%ofCommunity averagein .
Friesland andDrentherespectively ,and76%and78%ofthenational \
average. y
TheaidedregionoftheNorthoftheNetherlands coversthethreeprovinces
mentioned above,plusthenorth-west andnorth-east partsofOverijssel
province,andisthuscharacterised byaperipheral situation comparedto

-41-
thecountryasawhole,byaconcentration ofeconomicactivity incertain
sectors,andbyitsruralnatureandlowpopulation density.
Forthethreeyears1974-76aidstoproductive investment inthisregion
totalled 45millionu.a.,towhichmustbeadded41millionu.a.for
infrastructure projects closelylinkedtoinstallation ofindustrial
estates.Community aidfor1975-77amountedto30.55millionu.a.,of
which15.36millionfromtheRegional Fundand15.29millionfromthe
Guidance SectionoftheAgricultural Fund(1).
Regional Fundaidin1977
ApartfromtheNorth,theonlyotherNetherlands regioneligible for
regional aidsisthemuchsmallerareaofSouthLimburg;thisexplains why
Regional FundaidintheNorthwasnearly84%oftotalFundaidtothe
Netherlands for1977(70'/.in1975-77).Fundcontributions amounted to
5.34millionu.a.forfourinfrastructure_groiects .Onelargeproject
(2)wasfinanced :aroadlinkbetween Emshaven andthenational road
network,inGroningen province .Thetotalinvestment was22.1millionu.a.
andtheFundgrant1.3million.Thethreeotherprojects financed,alsoin
Groningen province,concerned theextension ofPort-Juliana (Eemshaven
section),andrailandroadimprovements linkingtheporttothenational
networks .Thetotalinvestment was13.4millionu.a.,andtheFund's
contribution 4.0millionu.a.
Schleswig-Lower Elbe
61.TheLandofSchleswig-Holstein isdividedintotwodevelopment programme
regions (Regionale Aktionsprogramme ):Schleswig-Lower Elbe,comprising
thenorthandthewestoftheLand,alongtheAtlantic coastandthe
Danishfrontier;andHolstein .TheLandasawholelost14%ofpopulation
between 1950and1955.Therehasbeenslowgrowthsincebutthepopulation
in1975hadnotyetregained thelevelof1950.Unemployment reached an
annualaverageof4.6%in1977.
Schleswig-Lower Elbeinparticular ischaracterised byaweakindustrial
structure .Unemployment was5.6%in1975;andgrossdomestic product
perheadin1974wasonly83%ofthenational average,though114%of
theCommunity average.Themostsevereproblems areencountered in
Schleswig,thatisthewesternpartoftheprogramme region,wherethe
weakeconomicstructure isdemonstrated bythelowestrateofindustrial­
isationinthecountry.
ForthethreeyearsofRegional Fundactivitynational expenditure onaids
toindustry wassome34millionu.a.,plusabout13millionu.a.for
investments ininfrastructure .Community assistance mustbejudgedin
relationtotheseamounts.TheRegional Fundmadegrantsof5.12million
u.a.,andtheGuidance SectionoftheAgricultural Fund5.3millionu.a.
(1)EAGGFaidinOverijssel notincluded .
(2)Equaltoormorethan10millionu.a.

Regional Fundaidin1977
In1977FundaidtoSchleswig-Lower Elbeamounted to2.46millionu.a.,or
5.7%ofallgrantstoGermany.Ofthisamount/1.12millionu.a.(54.5%)
weregrantedtoindustrial_pr_ser\ /ice_grgiects (1),representing total
investment of154millionu.a.andcreating 424jobs.Involumeofinvest­
mentthechemical industry wasinthelead,followed bypaperand
petroleum .8infrastructure_groiects werefinanced,allconcerning thedevelopment ofindustrial estates.Aidfortheseprojectstotalled1.12
millionu.a.andtheinvestment concerned 3.7millionu.a.
62.ThisBelgianregioncovers55%ofnationalterritory butcomprises only
33%ofthepopulation ,withaslightlyfallingbirthrate.Employment in
theagricultural ,industrial andservices sectorsisapproximately atthe
national averagebuttheratiobetweennon-workinq andworkingpopulation
isworsethanthenational andCommunity averages .Thisimbalance is
reflected inthegrossdomestic productperheadoftheregion,which
amountsto92and86%ofnational andCommunity averages respectively .
Theaveragelevelofunemployment in1977was10.6%ofthelabourforce.
Theregion'sproblems stemessentially fromdeclineofthetraditional
coal,steelandtextileindustries ,plusproblems intheruralareasof
thesouth-east ofthecountry.
OnlysomeareasofWallonia areeligible foraidsforregionalpolicy
purposes (2).In1975-77theseareasbenefitted from193millionu.a.of
industrial investment aidsunderBelgianlawsoneconomic expansion .
Inaddition,publicinvestment onindustrial estatesin1974-76 was53
millionu.a.Itisnotpossible toestimate whatpartofotherpublic
infrastructure investments isdirectedspecifically ateconomic development ,
butitmayhoweverbenotedthatin1976investment intransport infra­
structure alone,forWallonia asawhole,amountedto256millionu.a.
Community aidforWallonia overthefirstthreeyearsofRegional Fund
activity mustbejudgedbycomparison withtheabovefigures.Wallonia
Grants
-Régional Fund
-Agricultural Fund:Guidance Section9.3m.u.a
11.8m.u.a
Loans(3)
-European Investment Bank
-ECSC18MEUA
43MEUA
(1)Including 2projectsofmorethan10millionu.a.,bothinthe
chemicals industry .
(2)Point40.
(3)Point43.

-43-
Regional Fundaidin1977
TotalFundgrantsin1977foreligible areasofWalIoniaamounted to
4.75millionu.a.Fiveindustrial _E>roiectswerefinanced,including a
largeproject <1)inthemotorindustry,withatotalinvestment of17.3
millionu.a.,andwhichshouldcreate600jobs.Theremaining four
projects,withatotalinvestment of11millionu.a.,shouldcreate300
newjobs;thetotalFundcontribution was1.35millionu.a.Involumeof
investment ,mechanical engineering topsthelist,followed byelectrical
engineering andpaper.
Ofthe16infrastructure_groiects forwhichgrantstotalling 3.4million
u.a.weremade,15concerned mainlyindustrial estates,withatotal
investment of6.6millionu.a.Lastly,oneprojectinalessfavoured
mountain andfarmingarea,inLuxembourg province,wasfortheextension
ofthewatersupplynetworkinthecentralArdennes .Thisproject
received agrantof1.35millionu.a.
(1)Investment of10m.u.a.ormore.

-44-
Chapter V:PAYMENTS ANDCONTROLS
Payments
63.Totalpayments in1977amountedto372.51millionu.a.Thisfigure
compares with277.33millionu.a.in1976andbringsthetotalpayments
sincetheFundwasestablished to740.51millionu.a./or57%ofthe
totalof1,289.31millionu.a.committed uptotheendof1977.
Table10oftheAnnexshowstherelationship betweenthecommitment and
paymentappropriations contained inthegeneral Community budgetfor1977.
Table9oftheAnnexgivesdetailsofpayments madetoeachMemberState
from1975to1977ascompared withthecommitments ofFundaidtothese
countries inthoseyears.Thetablebelowsummarises thepayments and
commitments position foreachMemberState.
TableN°7:Payments made(million u.a.)
Commit-
ments
1975-77Payments
Comm.
1975Comm.
1976Comm.
1977TotalPayments
as%of!
commitment *
Belgium
Denmark
F.R.ofGermany
France
Ireland
Italy
Luxembourg
Netherlands
UnitedKingdom19.330
16.756
71.974
193.326
83.832
520.000
1.289
21.911
360.8891.556
16.126
6.996
44.296
0.227
2.849
18.6186.114
3.983
13.348
28.867
18.032
112.864
0.405
5.448
88.2692.825
5.763
24.891
45.828
22.111
149.517
0.117
2.817
118.6398.939
11.302
38.239
90.820
47.139
306.677
0.750
11.115
225.52746
67
53
47
56
59
58
51
62
Total 1.289.306 90.668 277.332 372.508 740.508 57
64.Therateofpaymentofcommitments in1977,57%,compares with46Xatthe
endof1976.Allcountries contributed tothisadvance,exceptBelgium,
Luxembourg andtheNetherlands wherethepaymentratesdeclined in1977.
Payments in1977(372.51millionu.a.)weremadepartlyfrompayment app­
ropriations whichhadbeenunusedattheendof1976andwerecarried
forwardto1977(82,00m.u.a.),andpartlyfrompaymentappropriations in
the1977budget(289,49millionu.a.).
65.Applications forpayments infactexceededslightly theamountspaidout
in1977:382.34millionu.a.asagainst372.51millionu.a.paid.

-45-
FOPthethirdyearinarow,payments fromtheFundfellshortofthe
appropriations provided intheBudgetforthispurpose.Thefollowing
istheposition .
(millionu.a.)
Paymentappropriations Actualpayments
Year
1975 150 90.67
1976 300 277.33
1977 400 372.51
Total1975/1977 850 740.51
The109,49millionu.a.,equivalent to83,08millionEuropeanunitsof
account (EUA),unusedattheendof1977havebeenaddedtothe525,00
million EUA(1)ofpaymentappropriations forwhichthereisaprovision
inthe1978budget.
66.Thevolumeofpayments madein1977isregarded bytheCommission as
satisfactory .Aspointedoutinprevious annualreportsoftheFund,
sincepayments aremadeinstepwiththecorresponding expenditure ofthe
MemberStates,therateofFundpaymentsreflects toalargeextentthe
speedatwhichdemandsforpaymentarepresented bytheauthorities in
theMemberStates.Oncedemandsarereceived intheCommission theyare
clearedinafewweeksexceptincaseswherenecessary supplementary
information isnotmadeavailable rapidly.OnceagaintheCommission
wishestoacknowledge theco-operation ofthenational administrations
inensuring thehighrateofpaymentofFundaid.Underthemodified
Fundregulation itwillbepossibletomakeaccelerated payments ofupto
75%oftheFundgrantforagivenproject,providedthatatleastonethird
Aftherelevantnational expenditure hasbeenincurred.Thesearrangements
willenablepaymentstobemademorerapidly,notablyforinvestments
whichareatanearlystageofimplementation .
Controls
67.Themainobjective ofthecontrolactivities oftheCommission isto
ensure-together withtheresponsible authorities intheMemberStates
andinaccordance withtheprovisions oftheFundRegulation -sound
administration andproperimplementation oftheprojects aidedbytheFund.
68.Thechecking ofinvestments whicharethesubjectofFundaidinvolves in
thefirstinstance thedetailed examination withintheCommission ofthe
application foraidanddemandsforpayment.Inaddition,asprovided
forinArticle 9oftheFundRegulation ,theCommission mayseekfrom
MemberStatesanyinformation itdeemsnecessary forthepropermanagement
oftheFund.Itmayalsorequest MemberStatestoarrangeforon-the-spot
checksofaidedprojects bytheresponsible nationalauthorities .The
Commission mayparticipate inthesechecks(2)Theon-the-spotchecks
entailtheverification ofsupporting documentation relating tothe
investments ,theexamination oftheprojects concerned toensuretheir
correspondance withtheapplications madetotheFund,andanassessment
ofthelikelycontribution oftheschemestothedevelopment oftheregions
involved .
(1)Point7,footnote 1.
(2)ThgControlCommission (nowCourtofAuditors)a,Isotakespartin
fsomeon-the-spotchecks:•

-46-
69.Theprogramme ofon-the-spotchecksisdesignedtocoverasampleofthe
different typesofprojectsforwhichFundaidisgiven.Whileparticular
emphasis hasbeengiventotheregionsmainlybenefitting fromtheFund,
theintention isthat,overtime,investments inallregionsofthe
Community shouldbechecked.Thewidegeographical spreadofprojects
visited canbeseenfromTable9intheAnnex.In1977theCommission
attachedparticular importance tothecheckingoflargeprojects andof
thoseprojects wheresupplementary information hadtoberequested when
thegrantapplication wasbeingexamined.
70.Inlinewiththeexpansion oftheoperations oftheFundandwiththe
completion ofinvestments inrespectofwhichFundaidwasawardedin
1975and1976,theCommission requested theMemberStatestocarryout
in1977alargernumberofon-the-spotchecksthaninearlieryears.
Thetotalnumberofon-the-spotcheckscarriedoutin1977was119
<1975:44;1976:87).Thebreakdown byMemberState,typeofinvestment
andyearwasasfollows :
TableN°8:Numberofprojects inspected sincetheestablishment of
theFund
Belgium
Denmark
France
Germany
Ireland
Italy
!Luxembourg
i
JNetherlands
!UnitedKingdomIndustry
1975
j
;
i
i
5
4
ι-
ι1976
2
6
6
1
4
31977
13
6
3
12
14Infrastructure
1975
4
5
261976
8
17
7
5
10
7
1
3
61977
2
7
6
6
19
31Total
10
25
33
18
32
50
1
3
78
TOTAL234835 6471
80 170 250
71.Overthe3yearperiod1975to1977about9.3%ofallprojects were
subjecttoon-the-spotchecks;thisfallsjustshortofthe10%ofprojects
whichtheCommission considers istheminimumacceptable level.This
targetwouldindeedhavebeenattained hadnotsomeMemberStatespostponed
until1978thecarryingoutofinspections scheduled for1977.Onlyin
threeoftheMemberStates(UnitedKingdom,FederalRepublicofGermany and
France)isthepercentage oftheprojects checkedbelowtheaverageofthe
Community asawhole(9.3%)andtheCommission proposesthatthispositiorv -
becorrected in1978.NocontrolvisitswerecarriedoutinBelgium,
Luxpmhniiro andtheNetherlands sinceahiahDercentaae ofFund-aided

-47-
projects inthesecountries hadalready ,beencheckedin1976.
2.Noirregularities werediscovered inthecourseofthechecksundertaken
during1977.Someparticular pointsarehoweverworthyofmention.
Thearrangements bytheFrenchauthorities fortheinspection ofindustrial
projects havebeensuchthatCommission officials werenotallowedtovisit
theprojects concerned ;thecheckshadtherefore tobelimitedtothe
examination ofdocuments heldbytheresponsible authorities .TheBatteris
currently thesubjectofdiscussions betweentheCommission tadtheFrenoh
authorities *InIrelandandItalythemeohanisms forthetransferofmonies
betweendifferent publicseotororganisations madeitdifficult todefine
qualifying expenditure undertheFundRegulation .InGermany somediscre­
panciesinpublicexpenditure figureswerediscovered ;thesearoselargely
becauseofohangesinestimates asworkprogressed *

48
Chapter VI:COORDINATION ANDPROGRAMMES
73.Asemphasized inprevious annualreports,theRegional Fundmustnot
beconfused withregionalpolicy.Itisbutoneinstrument ofthatpolicy,
whichcontains anumberofotherbasicaspects,suchasthecoordination
ofnational regionalpolicies,theassessment oftheregional impactof
Community policies andtheregularanalysis ofthesituation andproblems
oftheregionsoftheCommunity.,Inaddition,theotherCommunity
financial instruments forstructural purposes arealsoveryimportant
fromaregional pointofview.
Coordination ofnational regional policies
74.TheCommission emphasized inits"Guidelines forCommunity regional
policy"theimportance ofcoordinating national regionalpolicies .It
shouldberecalled herethatCommunity regional policyisconceived as
complementary tonational regional policies andthatthelatterretain
adecisive importance indefining development measures forlessfavoured
Community regions.Theircoordinated implementation istherefore amajor
requirement forreaching abalanceddistribution ofeconomicactivities
withintheCommunity
75.Thiscoordination musttherefore takeaccountofthevariousstructural
measures whichhavearegional impact,ofinfrastructure developments
withadirectorindirect regional effectandoffinancial transfers
betweenregionswithin acountry.Coordination ofgeneralregional aid
systemsisalsoanessential element.Regional development programmes
willformthemostsuitable framework forthepractical coordination
ofnational regionalpolicies .InJune1978theCouncilconfirmed that
Yhis.coordination isanintegral andessential partofCommunity
regional policy(1^.. >-:■
Assessment oftheregional impactofCommunity policies
76.ThemainCommunity policies haveregional implications ,amongothers,
andespecially consequences foremployment .TheCommission considersit
indispensable ,fromnowon,totakedueaccountoftheregional dimension
ofthesepolicies bothintheirplanning andtheirimplementation .In
addition thecreation withintheFundofanon-quota sectionenables
specific Community measures tobeundertaken ,linkedtoCommunity
policies andactioninordertotakebetteraccountoftheregional
dimension ofthesepolicies ortomitigatetheiradverseregional
consequences .Thepurposeofthesemeasures isnottheinternal restruc­
turingofthesectorsconcerned buttohelpthecreationofalternative
jobsinregionsorareasofdifficulty bytheestablishment ofnew
economic activities .
77.Inanticipation ofthesystematic implementation ofprocedures for
"regional impact"assessment andofthenon-quota section,theCommission
continued itsefforts in1977toensurebettercoordination between
regional andotherCommunity policies soastotakebetteraccountofthe
regional consequences ofthosepolicies .Ofparticular importance here
arethepolicies concerning farming,fishing,Community enlargement ,
industrial policy,competition ,transport andtheenvironment .
(1)TheCouncilpositionwillbeconfirmed inaCouncilresolution ../.

-49-
78.TheCommission hassentacommunication totheCouncil (1)Layingdown
guidelines fordeveloping Mediterranean regionsandcontaining afirst
seriesofproposals forMediterranean agriculture .Theproposals take
accountofthespecialstructural problems oftheseregionsinboththe
production andmarketing sectors.
79.Initsproposals foracommonfisheries policytheCommission has
plannedtogivespecialattention tolessfavouredareasprimarily
dependent onfishing.
80.WithinthecontextofCommunity enlargement ,theCommission hashadto
takeaccountbothoftheextremely seriouscharacter ofregional problems
ofthethreeapplicant countries,whichwillprovide arealchallenge
forCommunity regional policy,andtherepercussions ofenlargement on
certainregionsoftheexisting Community,inparticular theMediterra­
neanregions.
81.Inrecentyears,therecession andthechangesinworldeconomic
structures haveaffected agrowing numberofindustrial sectorswhich
faceproblems ofcompetitiveness and/orproduction capacity :these
sectorsincludecertainpartsofthetextileandclothing industry,
footwear,shipbuilding ,oilrefining andsteel.Workisinprogress to
ensurethattheregionaleffectsofthistrendareappreciated and
appropriate policies followed .
82.OtherCommunity policywithnotableregionaleffectsincludecompetion
policy,implying apermanent dialogue onaidsystemsingeneral andon
individual cases;transport policy,wheretherevisedprocedure for
coordinating transport infrastructure projects ofCommunity interest
shouldimprovecoherence betweennational policies;andenvironment
policy,wheretheproposed development ofasystemforEnvironmental
ImpactAnalysis couldhaveimportant implications forprojectlocation
andland-use planning inthelongerterm.
83.ItshouldalsobenotedthattheCommission ,initsActionProgramme
for1978(2),hasindicated thatthedevelopment ofCommunity structural
andsocialpolicies,bothintheirsectoral andregional dimensions ,is
oneofthethreemajorpriority foritsfutureaction.
84.inJune1978theCounciltooknoteoftheCommission's
intention toassesstheregional impactofCommunity policies andto
drawthenecessary consequences .TheCouncilhasalsostatedthatit
intendstotakeaccountoftheregionaleffectofthesepolicies inits
owndecisions .(3).
(1)Bull.EC,12-1977
C2)C0M(78)52 final
(3)Thedecisions willbeconfirmed inaCouncilresolution . /

-50-
Theregional impactofotherfinancial instruments
85.Theyear1977onceagainillustrated clearlytheimportance atregional
leveloftheactivities ofthevarious Community financial instruments
forstructural policypurposes .Theneedforaclosercoordination of
theirregional aspects wasoneofthereasonsfortheCommission 's
decision inJanuary 1977toentrust oneofitsMemberswiththespecific
taskofcoordinating allfinancial instruments forstructural policy
purposes andtosetupapermanent interdepartmental taskforceto
undertake thenecessary work.
86.LoansfromtheEuropean Investment BankwithintheCommunity amounted
to1,401million EUA(1)in1977,ofwhich69%(964million EUA)were
forregional development projects .Asintheprevious year,theCommission
noteswithregretthatnoMemberStatehasavaileditselfofthe
possibility undertheFundregulation toaidinfrastructure projects by
wayofinterest rebates onloansissuedbytheEuropean Investment Bank.
TheCommission willseektoincreaseitscooperation withtheBankin
particular throughthecoordination ofRegional Fundactivity andBank
operations forregional purposes .
87.Thedifficulties ofthecoalandsteelindustries havelongbeenone
ofthemaincausesofthepooreconomic situation ofsomeCommunity
regions.Inconsequence alargeproportion ofECSCaids,whetheraids
forindustrial retraining ,loansformodernisation andrestructuring ,"
andinparticular conversion loans,gotoareaseligible forRegional
Fundaid.
Inthelightofthecrisisinthesteelindustry,.heCommission adopted
inJuly1977newcriteriaforthegrantingofconversion loans'.Theireim
istoencourage thecreation ofsufficient alternative jobsinthe
regionsaffected bythedropinemployment incoalandsteel.Young
peopleentering thelabourforcewillbeabletotakeadvantage ofthese
newjobswhichwillnotbereserved exclusively forex-coal andex-
steelworkers,although thelatterwillstillhavepriority .Thevalue
ofconversion loansinfactincreased substantially in1977,totalling
120million EUAapproved (2)compared with62millionin1976and
64.5million in1975.
88.In1977some73%ofSocialFundgrants,whichtotalled 877millionu.a.,
wenttolessfavoured regions,including about50%underthespecial
regional headingofArticle 5(3).TheamendedSocialFundregulation (4)
adoptedinDecember laysdownthatinfutureatleast50%ofallaid
grantedwillbeallocated underthisregional heading,andthatthe
levelofSocialFundaidcangoupto55%insteadof50%incertain
priority regions suchastheMezzogiorno ,Ireland,Northern Ireland,
(1)Point7,footnote 1.
(2)Thefactthatonly16.4millionu.a.ofthe120millionapproved
wasactually paidoutreflects thefactthatalargeproportion
ofapproval decisions weremadeattheendoftheyear.
(3)0JL28of4.2.1971 .CouncilDecision N°71/66/EEC.
(4)0JL337of27.12.1977 .CouncilRegulation (EEC)N°2893/77.
./.

Greenland andtheFrenchoverleaf departments .TheCommission ,inits
annualreportontheSocialfund,willexamineannuallyitsregional
impact,andifitconsider*tltatImpactisinsufficient ,itwillpropose
appropriate changes.
89.Withregardtoagricultural guidance policy,theCommission madeit's
statutory five-yearly reexamination ofthethreesocio-structural
directives of1972(1).AssomeMemberStateshaveonlyrecently
implemented theenablinglegislation forthesemeasures,itisnecessary
totreatresultstodate ,withcaution .Nevertheless theCommission
considered itdesirable tomakecertainproposals totheCouncilwhich,
amongotheritems,provideforagreaterrecognition oftheeconomic
andstructural differences whichexistbetweenregions.Thusthe
Commission proposed thatthelevelofAgricultural Fundassistance
towards thecostofmodernisation offarms(2)beincreased from25%to
50%inthemountain andotherless-favoured areas(3)oftheWestof
IrelandandtheMezzogiorno .Proposed changesintherulesconcerning
theCommunity contribution towardstheannuities forthoseretiring from
farming aimtostimulate thetransfer oflandinthesesameregions,
wherefarmstructures areevolving particularly slowly (4).TheCommission
alsoproposed thattheAgricultural Fund'sshareofthespecialpayments
tofarmerstooffsetnaturalhandicaps inmountain andotherless-
favoured farmingareasbeincreased inthecaseofIrelandandItaly
from35%to50%(5).
90.Thenewnon-quota sectionoftheRegional Fundwillbemuchmore
flexible thanthequotasection.Thiswillfacilitate muchcloser
coordination withotherfinancial instrument thaninthepast.
Periodical analysis oftheregional situation andproblems intheCommunity .
91.Itisessential intheregional policyfieldtoestablish atregular
intervals abalancesheetoftheproblems arising,measures adopted,
difficulties encountered andresultsobtained inordertoestablish
priorities forfutureaction.Withthisinview,andinlinewithits
"Guidelines forCommunity regional policy"theCommission continued
itseffortsin1977toestablish aframework foranalysis andpolicy
formulation intheregional policyfieldinordertocreateacommon
basisofassessment ofregional problems intheCommunity .Inthis
contexttheCommission willsubmittotheCouncil,everytwoandhalf
years(6)areportonthesocialandeconomicsituation andtrendsof
theregions.Thiswillprovidetheopportunity foraCouncildebateon
thepriorities andguidelines proposed bytheCommission .
(1)0JL96of23.4.72.Directives 72/159,72/160and72/161.
(2)0JL96of23.4.72 .Directive 72/159.
(3)Asdefined inDirective 75/268.Seefoot-note 5.
(4)0JL96of23.4.72 .Directive 72/160
(5)0JL128of19.5.75.Directive 75/268
(6)The21/2yearlytimingisdesignedtoallowalternative issuesof
thereporttobeconsidered inconjunction withthemediumterm
economic programme ,whichisprepared every5years.

-52
Regional development programmes
92.Regional development programmes providethereference framework for
Fundactivity .Projects financed fromtheFundhavetofallwithinthat
framework /soastoensurecoherence betweennational measures of
regional development andtheCommunity'seffort.Moreover/inaddition
totheirimportance inrelation totheFund/theprogrammes willform
thebasicmeansofensuringbettercoordination ofnational regional
policies sincetheyprovide/first/ananalysis ofthesocialand
economicsituation andtrendsofregionseligible forFundaid/andalso
afairlydetailed description ofregional measures undertaken inthe
fieldsofbothaidsandinfrastructure /inthelightofexisting
problems/aimspursued andresources .
93.The31December 1977was,undertheFundregulation /thefinaldatefor
submission ofprogrammes /prepared according tojointoutlinerules(1).
From1978allapplications forFundaidwillbeexamined inthelight
oftheseprogrammes /whereaspreviously thiswasdoneinrelation tothe
annualinformation statements(2 )whichtooktheplaceofprogrammes
forthefirstthreeyearsoftheFund.
94.Alltheprogrammes foralltheregionseligible forFundassistance
weresenttotheCommission beforethefinaldateof31.12.77 .All
wereprepared according tothejointoutline/eventhoughimportant
differences existbetweencountries .Andtheyallemphasize theserious
problems ofemployment whichtheeconomiccrisishasmademoreacute
andmoredifficult tosolve/andwhich/withtheadventofyoungpeople
onthelabourmarket/willbefeltevenmoreinthefuturethaninthe
past.Manyregionsregister levelsofunemployment around 10%-with
pocketsof20%-andjobcreation prospects /allthingsbeingequal/
arenotencouraging .Itappears moreandmorethat/without somemove
towards asystemofwork-sharing withoutrealincrease inincomes/only
veryrapidgrowth/withalevelofinvestment wellabovethatofthe
past/couldeventually bringasolution totheseriousproblems of
employment arisingintheseregions.Inrealityitwilldoubtless be
necessary totakeactioninrespectofbothjobsupplyanddemandin
suchawayastogivepriority tosolutions inareaswheretheproblems
arethemostserious.
95.Asawholetheprogrammes /covering aperiodof3to4yearsending
generally in1980/analysethesituation andthetrendsintheregions
concerned fairlywell;theyindicate themainbottlenecks andstress
development possibilities .Insomecases,however/thereisnoreference
tothegeneralnational andCommunity economic framework anditis
difficult toseehowtheseregionsfitintotheoveralleconomy/andhow
•theirstructures aremovingtowardsgreater autonomy ofgrowth/greater
productivity andhiqherincome.Thisreflects perhapsthemajorun­
certainty whichpersists -aboutthefuturedevelopment oftheCommunity's
economyinarapidlychanging world.
(1)0JC69of24.3.1976 .
C2)Point106.
.7.

96.Alltheprogrammes havetobeconsidered bytheRegional Policy
Committee,whichisduetogiveanopinion ontheminJune1978.For
itsparttheCommission iscurrently examining eachprogramme but
nevertheless feelsitisusefultopresent abriefsummaryofthemhere
andnow.Itintendstobeginnowtheprocessofpublishing the
programmes .
Belgianprogrammels
97.Theregional development programmes communicated byBelgiumreferto
bothmajorregionscontaining areaseligible forFundcontributions ,
namelyFlanders andWallonia .Averagedisposable incomeperheadis
97.2ofthenational averageinFlanders and94.1inWallonia .These
programmes arestillprovisional ,andtheBelgianauthorities requested
inearly1978thattheirexamination bytheCommission andtheRegional
PolicyCommittee bepostponed .Anewprogramme bringing togetherall
partial (mainlysectoral )plansandcovering theperiod1979-80 was
submitted inJune1978.
Theprogrammes showarelatively unfavourable demographic situation,
disturbing unemployment andadeclineinindustrial investment .Aseries
oftargets havebeenpartlyquantified ,especially withregardto
infrastructure andworkershousing.Variousdevelopment measures are
envisaged forrestructuring sectorsindifficulty ,principally steeland
textiles .Measures arealsoplannedtohelpsmallandmediumsize
businesses .Financial resources areshownglobally intheformof
estimates ofbudgetexpenditure .
Programmes forDenmark
98.Denmarkhassubmitted twoprogrammes bothreferring totheyears1977-79,
onedealingwithGreenland andtheotherwithfourregionsofDenmark.
Greenland hasapopulation of50,000ofwhich80%wereborninthe
country.Development dependsmainlyonfishing,miningandthepublic
sector,thelatteremploying nearly55%oftheworkingpopulation .
Plannedpublicexpenditure overtheperiodconcerned is1,000million DKr
(134millionu.a.)peryear,at1976prices.Anurgentproblemisthat
oftrainingskilledworkers.ItisplannedthatGreenland willgain
internal autonomy ^™1979.
Theprogrammes forDenmarkitselfcoverthepriority zonesofthedevelop
mentareasofthecountry :NorthJutland,theThistedarea,South
JutlandandBornholm,comprising apopulation of770,000.Theseare
predominantly agricultural regionswherefishingalsoplaysanimportant
part.Thelevelofunemployment ishigh(some10%)andjobcreationis
aprioritytarget.Withdirectaidsof120million DKr(16millionu.a.)
peryearintheformofloansandgrants,itishopedtocreate1,500
jobseachyear.Theimprovement ofcommunications andthedevelopment
oftourismplayanimportant partintheeconomyoftheseregions.

-54-
Programmt_s_for_the_F^d era_l_Re_pjjof_Ge_rmany
99.The22regional development programmes oftheFederalRepublic of
Germanyconcernthe21"Regional ActionProgrammes "ofthefifthOut­
linePlanfortheCommonTask"Improvement ofregional economic
structures ",plusBerlin.Theyhavebeenprepared bytheFederal
Economics Ministry incollaboration withtheresponsible authorities
oftheLSnder,andcovertheyears1976-1979,withtheexception of
theBerlinprogramme forwhichnotime-scale isgiven.These22
programme regionshadapopulation of23.15millionattheendof1975
(37.6%ofthetotalpopulation oftheFederalRepublic )andcover
some147,000 km2(59%ofthenationalterritory).Theprogramme
regionshaveveryvariedstructures :theyincludebothfarmingregions
(forexample,inSchleswig-Holstein orBavaria)andindustrial regions
(suchastheNorthRuhrorSaarland).ExceptforBerlinthegross
domestic productperheadofworkingpopulation isbelowtheaverage
oftheFederalRepublic ofGermany;theaverageforthe21regionsis
12%belowthenational average.
Theaimsforthe21regionsovertheyears1976-1979 aretocreate
430,800 newjobsandtosecure177,700 more;theindustrial investment
shouldamounttoDM37,234million (10,200millionu.a.)andinvestment
inregionalinfrastructure toDM2,446million (668millionu.a.).To
thisenditisproposed toallocate atotalofDM3,700million (1.0..
millionu.a.)ofpublicfundstoindustrial investment andDM1,453
million (0.4million u.a.)toinvestment ininfrastructure .The
programme forBerlinhasnoquantified targets.
Proqramme_s for_France ^_ x
100.TheVllthPlan(1976-1980 )definestheaimsandtheeconomic andsocial
development strategy ofmetropolitan Franceandtheoverseas depart­
ments..Itcomprises priority actionprogrammes (PAPs),whichrepresent
afirmcommitment bythenationalauthorities ,andalsopriority action
programmes initiated regionally (PAPIRs),whicharetheresponsibility
oftheregions.
ThePAPsare25innumberandrefertotheprincipal measures which
centralgovernment intendstoadoptortoassistduringtheVllthPlan.
Theseprogrammes areestablished according totargets andreceive a
fixedfinancial contribution fromtheState.SomePAPsconcern or
interestspecific geographical areas.Theyreferespecially toimproving
theriverlinksbetweentheNorthSeaandtheMediterranean ,toimproving
thesituation ofruralareas,toopening uptheWest,South-West and
MassifCentral,andtomeasures tohelpsmallandmedium-size business .
Inall11PAPswithaclearregional impactrepresent publicfinance
ofFF246,000million (44,000millionu.a.)duringthelifeofthe
Plan.
./.

Foreachofthe21programme regions (concerning allofFranceexcept
theParisregion)andfortheoverseas departments ,theFrench
programme fixesspecific development aims.Inparticular itgivesthe
mainindicators ofregional trends,setsoutthesocialandeconomic
characteristics oftheregionandanalyses themainproblems .It
contains estimates forexpenditure onpublicinfrastructure ,and
indications oftheregional implications ofimplementing
thePAPsandPAPIRs.TheStatecontribution tocarryingout
thelatteramountstoFF20,000million (3,600millionu.a.).
Theoverseas departments benefit fromcertain PAPs(acceleration of
economic progress,reduction ofenergyexpenditure andofthecostof
rawmaterials )andfromPAPIRs.Additionally ,variousnational
programmes ofregional economic development areplannedoutsidethe
PAPs(modernisation ofthesugarindustry,development ofstock
rearing,supportfortheexportofbananasandtobacco).
Prog_r_amme ^fo_rJ/e^and
101.Thecentral document onIrelandisthewhitepaper"National Develop­
ment1977/1980(1).Thisdocument laysdownsocialandeconomic aims
andexamines themeasures whichmaybenecessary toattainthem.It
willbefollowed byanational planintroducing newstructural
measures .
Quantified targetsfortheyears1978to1980areset:
1978 1979 1980
Increase inGNP 77. 77. 77.
Reduction innumbers
outofwork 20,000 25,000 30,000
Rateofinflation 77. 57. 54
Publicsectorborrowin
as%ofGNP 13% 10% 8%
Theimplications arecalculated forprivateandpublicconsumption ,
employment andproductivity changesbymainsector,investment ,total
andmanufactured exportsandforimports.Investment wouldhavetorise
asaproportion ofGNPfrom27%in1977to31%in1980andmanufactured
exports growat15%ayear.
Suchgrowthcouldbeconstrained byinadequate investment (particularly
private),theneedtoreducepublicsectorborrowing,theincreased
balanceofpaymentsdeficitforecast andthegrowthofworldtrade.
(1)Published bytheGovernment ofIrelandearlyin1978.

-56
Toestablish conditions favourable togrowth,satisfactory incomeand
manpowerpolicies andimprovedindustrial relations areneeded,asare
certainreformsofthepublicservices .Agrowingpopulation implies
increased publicexpenditure butpublicresources willbeundersevere
strainandsomustbehusbanded foressential purposes .
Theannexestothewhitepapercontainsocialandeconomic analyses,
anddescriptions ofdevelopment incentives andthearrangements for
programming publicinvestment andimplementing theprogramme .
Programme _fo_r_I_ta^ly^
102.Theprogramme presented bytheItalianauthorities concerns theMezzo-
giornonamelyallofsouthernItalyandtheislands,(1)plustheaided
partsofLatium,MarcheandTuscany.Theprogramme isintwoparts
onedealingwiththeMezzogiorno asawhole,theotherwitheachregion
andareawithintheMezzogiorno .Theyearscoveredare1977-1980,and
anannualrevision isplanned.
TheMezzogiorno isalargeunder-developed region,withapopulation
of20million andagrossdomestic productperheadmorethan30%below
thenational andsome60%belowtheCommunity average.Itistherefore
largelydependent onexternal resources :20%oftheavailable resources
areformedfromnetimportsofgoodsandservices .Themostserious
problemfortheMezzogiorno isemployment .Unemployment (700,000 )is
10.5%ofworkingpopulation anditisestimated thatin1980therewill
be300,000additional jobseekers.Thisisinspiteofmassivepast
emigration ;from1951-1971,theMezzogiorno experienced netemigration
of4millionpeople,whichisapproximately 1%ofitspopulation per
year.
Theeconomic structure oftheMezzogiorno isveryweak,bothwith
regardtotheproductive sectors (predominantly agricultural )and
infrastructure ,andtoterritorial imbalances betweenflatcoastal
regionsandinlandareas.
Substantial resources havebeencommitted fortheimplementation of
theprogramme,deriving fromtheCassaperilMezzogiorno ,central
government andtheregions.National resources allocated forthe
specialoperations oftheCassaamountto18,080,000 millionlire
(28,900millionu.a.).Ofthistotal,theCassaisentitled tocommit
3,500,000 millionlire(5,600millionu.a.)between1976-1980 foraids
toindustry,3,000,000 million (4,800millionu.a.)tospecialprojects
and700,000million (1,100millionu.a.)toindustrial infrastructure .
TheCommunity 'sfinancial effortisconsidered anessential element
fortheimplementation ofthemeasures envisaged intheprogramme .
(1)Point42.
./.

-57-
Programme for_Luxembourg
103.Theprogramme fortheGrandDuchycoverstheentireterritory of
Luxembourg ,considered asasingleCommunity regionalunit.Itreveals
twomajorproblems :maintaining existing economicpotential inthe
depopulated northernarea,andplannedpriority measurestohelpthe
steelproducing areaofthesouth-west .Inthemediumterm(1978-1980 )
theprogramme providesforvariousmeasurestostimulate economic growth
andtoprotectfullemployment whilealsorestructuring thesteel
industry.Tothisend,apluriannual publicexpenditure programme has
beenprepared fortheyears1977-1980 .Thisprovides forrecoursetoa
loanofFL1,000million (20millionu.a.)peryear.
104.TheNetherlands programmes concerntworegionsconsidered ashaving
priority forregional development ,namely :
-the"Northernincentives area"(Noordelijk stimuleringsgebied )witha
population of1.5million;
-the"SouthLimburgrestructuring area"(Herstructureringsgebied Zuid-
Limburg")with700,000inhabitants .
Theseprogrammes arebasedontwodetailed studiesonthetwopriority
regionsandonagovernment memorandum onregional policyfortheyears
1977-1980 .(Thestudieshavestilltobeapproved bythenational
parliament ,thoughthenoteonregionalpolicyisalreadyapproved).
Theyareoverallprogrammes involving abalancedpresentation oftheir
economic,social/cultural andphysical planningaspects.
TheSouthLimburgprogramme isbasedontheconversion ofaneconomic
structure basedessentially ontheminingindustrytoamorediversified
andbalanced one.Ithasthegeneral aimofcreating 21,000jobs.
Theprogramme fortheNorthislessdetailed thanthatforSouth-Limburg :
itaimsatamorebalanced development ofaneconomywherefarmingis
particularly important .Itsgeneral aimistocreate36,000jobsby1980.
Thefinancial resources available areshownindetail,bytypeand
globally,forallaidedregionsoftheNetherlands .Theyincludespecial
headings forinfrastructure development ineachofthetworegions,and
anaidfundplannedforprojects whichareineligible forassistance
fromotherinstruments .Theregional development budgetforallaided
areasprovidesfor330millionflorinsayear(91millionu.a.),plus
supplementary aidfor1977-80of187million (52millionu.a.forthe
Northand92millionflorins (25millionu.a.)forSouthLimburg.The
twoprogrammes aredrawnupjointlybythecentral andprovincial
authorities ,withtheMinistryforEconomicAffairsresponsible for
overall coordination .

-58-
f£29£J5ïï!®_I2r_î]3S_i /Dited_Kingdom
105.TheUnitedKingdomprogramme coversregional problems andmeasuresbothingeneral
termsandforeachregionwhereregional incentives toindustry are
avaitable.Theassisted areascontain 43%oftotalemployment .Inrecent
yearsunemployment rateshavebeentypically oneandhalftimestotwice
thenational average,andgrossdomestic productperhead10%belowthe
national average,withtheexception ofNorthern Ireland wherethe
problems aremoresevere.Theprogramme describes indetailthesystem
ofindustrial incentives asawhole.Somereference ismadetomajor
investments ,mainlyininfrastructure .
TheUnitedKingdom'sregional problemisprimarily industrial andurban,
causedbythecontinuous declineofemployment intraditional industries
whichtendtobeconcentrated intheAssisted Areas.Themajor
declining industries arecoalmining (intheNorth,NorthWest,Yorkshire
andHumberside ,E.Midlands,Scotland andWales),shipbuilding and
marineengineering (intheNorth,NorthWestandScotland),textiles
(intheNorthWest,Yorkshire andHumberside ,andScotland),ironand
steel(intheNorth,NorthWest,Scotland andWales).Therearealso
remoteareaswithfalling employment inagriculture ,particularly in
theSouthWest,Scotland,WalesandNorthern Ireland.Various
traditional industrial areassufferseverely frompoorhousing,
dereliction ,obsolete andinadequate infrastructure andsocialproblems,
particularly inthecentreoftheoldercities.
Themeasuresfordevelopment areoffourtypes:incentives formanu­
facturing andserviceindustry;restrictions ondevelopment innon-
assisted areas;infrastructure ;andassistance totourism.Industrial
incentives aregivenwithoutdiscrimination betweenindustries or
between locations withinoneclassofassisted area.Infrastrcture
programmes arenotusually drawnuponthebasisofstandard regions
butdetermined bynational orlocalauthorities .Inthecaseof
integrated national systems,regional breakdowns ofinvestment arenot
considered meaningful .
Arevised programme wassubmitted inApril1978.
Annualinformation statements
106.In1977allMemberStatessentannualinformation statements (1)tothe
Commission inthelightofwhichapplications forFundcontributions
wereconsidered .Thestatements themselves wereconsidered bythe
Regional PolicyCommittee,andsummaries werethensenttotheParliament
andtotheEconomic andSocialCommittee,wheretheywereexamined atthe
sametimeasthesecondannualreportonFundactivity .
(1)Fundregulation ,article6.6.

-59-
107.Theannualinformation statements showthat,althoughdifferences in
ratesofeconomic progress havebeenaggravated sincethecrisis,both
weakandprosperous regionshavesuffered fromtherecession ;further
analyses areneededtoshowhowthedifferences betweenregionshave
evolved,bothatnational andCommunity level.Although therecession
hasmadelongtermstructural trendsratherunclear,itistobefeared
thatexisting regional problems willgrowworseincomingyearsandthat
newproblems willappear.
108.Although regional development programmes arenowavailable,MemberStates
willcontinue tosendinannualinformation statements .Theyshould
furnishfortheyearinquestionallusefulinformation notcontained
intheprogrammes ,moreparticularly onfinancial meansallocated to
regional development ,priority measures andtheusetowhichCommunity
financial resources areputincarrying outthesepriority measures .
Annualstatistical summaries
109.AtpresenttheCommission possesses statistical summaries (1)forthefirst
twoyearsoftheFund.Thesedocuments wereforthemostpartsentto
theCommission afterthefinaldateof1AprillaiddownintheFund
regulation .Itseemsthatcertain MemberStateshavehadtechnical
difficulties inrespecting thetimelimit.Forthisreason,although
theCommission proposed thatthisdateberetained intheamended
regulation sothatitcouldreceiveintimetheinformation required
forpreparing theannualreportontheFund,theCouncildecidedto
extendthetimelimitto 1October.
110.Generally,anddespite aclearimprovement in1976compared with1975,
thestatistical summaries donotasyetenabletheCommission tocheck
theresultsobtained foreachregionintheprevious year,asrequired
bytheFundregulation .ForthatpurposetheCommission wouldneed
comparable statistical data,foreachregioneligible forFund
assistance ,ontheinvestments aidedbytheFund,onresources committed
andonjobscreatedormaintained foreachofthemainindustrial
sectors.Forinfrastructure ,itwouldneeddataonthevolumeofapproved
investment permajorcategory .Thenforafollow-up policy,itwouldbe
necessary toknowtheamountofinvestment underfiken andexpenditure
incurred,andthenumberofjobsactually created.Itispossiblethat
thecollection ofthiskindofinformation stillpresentsstatistical
orotherproblems forsomenational administrations .However abasic
statistical summaryofthisnatureisindispensable forassessing the
realimpactonregional development ofthepolicies carriedout.
(1)Fundregulation ,article6.6.

-60-
ChapterVII:INFORMATION ONFUNDACTIVITIES
PressInformation
111.Asinthepast,theCommission issuedaftereachofthefourallocations
ofFundgrants apressrelease,together withregionalstatistics and
listsoftheprojects financed,inordertoshowinasprecise and
concrete awayaspossible thecontribution oftheCommunity toagiven
regionorlocality .Thisinformation isdistributed widelybythe
Commission 'soffices intheMemberStates.
Information hoardings
112.Thenumberofhoardings inplaceappearstohaveincreased in1977,
especially inItalyandtheUnitedKingdom,although theinformation
available totheCommission onthisquestion isstillincomplete .The
hoardings,erected onthesitesofmajorinfrastructure projects,show
thattheprojectinquestion ispartlyfinanced fromtheRegional Fund.
Publication intheOfficiai Journal
113.Thelistofprojects financed underthegrantallocations ofJulyand
December 1976waspublished inJuly1977(1);projects concerned bythe
allocations ofJanuary andJuly1977appearinthelistpublished in
April1978(2).Thelistrelating totheallocation ofDecember 1977
willbepublished together withthatconcerning thefirst1978
allocation .
Information toinvestors
114.Theinvestors concerned byFundgrantscontinuetobeinformedofgrant
decisions,eitherdirectly orviatherelevant national authorities .
(1)0JC166of13.7.1977 .
(2)OJC99of24.4.1978 .

-61-
ChapterVIII-CONCLUSIONS
115.Withintheframework ofitsnewguidelines forregionalpolicyadopted
inJune1977,theCommission madeproposals foramendingtheFundRegulation ,
andonthebasisofthesetheCounciladopted 1nJune1978themainooints
ofamodifiedregulation .Theseproposals werebasedonlessonslearned
fromthetwoinitialyearsofFundactivity <1975and1976),whichare
confirmed bytheexperience of1977.Thefollowing pointsarepartic­
ularlyworthyofmention.
116.Theaverageoftwotothreemonthsbetweenreceiptofapplications and
grantdecisions hasbeenmaintained ,but,asstatedintheprevious
report,someimprovements inadministrative procedures arestillpossible;
theywillbetakenaccountofinthemodified Fundregulation .
ItshouldalsobenotedthatinsomecasestheCommission wouldhave
wishedtoseemoredetailed information supplied intheapplication
submitted bysomeMemberStates.
117.Theresources available totheFundin1977(500millionu.a.)had
clearlydeclined intheirrealvalue,sincetheywerefixedinDecember
1974andnotsubsequently corrected totakeaccountoftheveryhigh
ratesofinflation whichstrucktheeconomies ofallEuropean countries -
andinparticular thosewhichfacethemostsevereregional problems and
absorbthreequarters ofallFundaid.From1975to1977theFundhad
available 1,300millionu.a.Political agreement withtheEuropean
Councilhasincreased thefigureto1,800million UCE(1)forthenext
threeyears.Thepassagefromthe"budgetary "unitofaccount (u.a.)
totheEuropeanunitofaccount (EUA)willinfactenableaccounttobe
takenofthedifferent trendsininflation ratesinthedifferent
countries .
118.TheoKimission continues toinsistontheprinciple thatFundaidis
additional tonational regional development efforts.Itispolitically
aswellaseconomically important thatthisprinciple berespected as
farasbothinfrastructure andindustrial projects areconcerned .
119.Everyregioneligible fornational regional aidsiseligible
forFundaid.Nevertheless ,theCommission hasalwaysstressed with
MemberStatesthattheyshouldconcentrate Fundassistance onpriority
areasandonprojects whichhaveasignificant impactonregional develop­
ment.Itconsiders thatsuchconcentration isparticularly necessary in
viewofthelimited meansavailable totheFund.Inthe1976reportthe
Commission notedaslighttendency tolessconcentration bycomparison
withtheprevious year.Itregretsthatthistendency showednoimprove­
mentin1977.
120.TheCommission notesthat,asin1975and1976,noMemberStatemadeuse
ofthefacility provided bytheFundRegulation togiveaidintheform
ofinterestrebateonloansissuedbytheEuropean Investment Bank.
(1)Point7.

-62-
Thispossibility wouldhaveincreased theimpactofbothofthese
instruments /ontheonehandbyproviding easiercreditforanumberof
investors,andontheother,bymobilising greaterresourcesforregional
development purposes viatheFund.
121.TheCommission continues toinsistonthegreatimportance ofinformation
ontheRegional Fund.Theconcrete andlocalised natureofFundactivity
makesitofspecialinterest topublicopinion.Itisclear,however,
thattheimpactofinformation isreducediftheadditional natureof
Fundaidcannotbeshownandifprojects aidedarenotidentified
individually .
122.Theregional development programmes andtheannualinformation state­
mentssubmitted byMemberStatessupplybasicinformation ofgreat
value.However,theymostlylackthedetailneededtos-erveasaguide
totheallocation oftheFund'sresources ortocoordinate themmore
closelywithassistance fromtheotherCommunity financial instruments .
ForthisreasontheCommission considers thattheprogrammes sub­
mittedin1977arenotyetintheirfinalformbutprovide abasisfor
progressive development
TheCommission alsoconsiders thatgrantapplications shouldbe
presented inamannertoshowmoreclearlythelinkbetweentheinvest­
mentprojectinquestion andtheachievement oftheaimsofthe
programme fortheregioninwhichitislocated.
123.Concerning thestatistical summaries whichshouldallowtheCommission
toassesstheeconomic impactofFundaid,itmustbenotedthatthe
documents submitted bytheMemberStatesin1977,asin1976,werenotsufficiently detailed toenablethisassessment tobemade.
124.Theobligation thatinfrastructure projectsaidedmustbedirectly
.linkedtothedevelopment ofindustrial orserviceactivities (1)
continued torenderacertainnumberofprojectsofundoubted interest
tothedevelopment ofagivenregionineligible forFundaid;it
therefore madeitimpossible totheFundtotakesufficient account
ofthediffering needsofthevariousregions.Themoreflexible
definition ofeligibleinfrastructure inthemodifiedregulation should
removethisdifficulty .
(1)FundRegulation ,Article4.1.b.

-63-
125.Veryfewapplications havebeenmadeconcerning theservicessector,as
inprevious years.TheCommission regretsthisfact,sinceitbelieves
thattheservicessector,andtourisminparticular ,canandshouldplay
averyimportant roleinthedevelopment ofmanyregions.Thisquestion
isbeingexamined bytheRegional PolicyCommittee .
126.Inthecircumstances ofeconomiccrisisexperienced bytheCommunity in
recentyears,thepromotion ofregional development hasbeenparticularly ,
difficult bothatCommunity andnational level.Thesecircumstances have
hadtheireffectontheimpactoftheFund.Itshouldbenotedfurther­
morethattheeconomiccrisis,thenewinternational division oflabour
andtherequirements ofCommunity policiesaffectsomeeconomic sectors
moreimmediately thanothersandcantherefore aggravate existing regional
imbalances and/orcreatenewones.TheRegional Fund,in1977asbefore,
providedsignificant supporttonational regional development measures.
Itsrelativeinflexibility hasnothoweverallowedittoplayitspart
indealingwiththesenewproblemsforwhichtheCommunity mustaccepta
specialresponsibility .TheCommission remainsconvinced thatthe
specific measures takenwithintheframework ofthenon-quota sectionof
theFund,closelycoordinated withtheactivities ofotherCommunity
financial mechanisms ,canhelpsupplythemeanstofillthismajor
inadequacy ofCommunity regional policy.

-64-
ANNEXES Page
A.SOCIO-ECONOMIC INDICATORS
i
Table 1.Trendsinprincipal macro-economi caggregates 1976-1977 65
Table2.Forecasts for1978 65
Table3.Trendsininvestment 1976-1978 66
Graph.I:Trendsingross -domestic productparhead
1960-1977 67
Graph.II:Weighted appreciation ordepreciation of
currencies ofMemberStates1974-1977 68
Graph.III:Trendsinregional unemployment
1968-1977 69
B.REGIONAL FUNDACTIVITY
Table4.Summaryofaiddecisions in1977. 70
Table5.Typesofinvestment financed intheindustrial
andservicesectors 71
(5.1:1977;5.2:1975-77)
Table6.Typesofinfrastructure investment financed 73
(6.1:1977;6.2:1,975-77)
Table7.Regionalstatistics onFundaidgranted 75
Table8.Commitments andpayments made 79
Table9.Visitsofinspection carriedout 80
ι
Table10.Budgetary situation 82

_65_
TABLE 1.Trendsinprincipal macro-economic agregates intheCommunity
in1977(1)
GDP Unemployment Consumer leurrent I
(volume)rate(1977 prices payments I
%(2)average ) balance I
|(3)(2)(Us.t1000m)
IBelgium I2.4 7.8 6.5 -0.1
IDenmark !0.9 5.9 10.5 -1.7
IGermany 2.6 4.0 3.9 +2.6(4)
IFrance 2.3 4.9 9.3 -3.0
IIreland 5.6 9.8 13.6 -0.2
Italy 1.8 7.0 18.5 +2.0
ILuxembourg 1.1 0.6 6.7 (5)
INetherlands 2.4 4.3 7.0 +0.5
IUnitedKingdom -0.1 5.8 14.9 +0.3
|Community1.9 5.4 9.6 +0.5
TABLE2.Forecasts for1978(6)
GDP Unemployment Consumer !
(volume)rate1978 prices I
%(2) (3)|%(2)
IBelgium 2.3 8.5 5.5
IDenmark 1.5 7.8 10.5
Germany 3.1 4.7 3.5
IFrance 2.7 5.2 7.0
IIreland 6.0 9.8 6.5
Italy 1.7 7.7 12.0
ILuxembourg 1.4 0.9 4.0
iNetherlands 2.1 4.7 5.5
IUnitedKingdom 3.5 6.1 8.4
Community 2.8 5.9 6.9
(1)Points9-13.
(2)Changeoverprevious year.
(3)Registered unemployed as%ofactivepopulation .Asdefinitions
arenotcompletely uniform,unemployment ratesshouldnotbe
compared asbetweencountries .
(4)3.5millionaccording totheGermanFederal Bank.
(5)Included underBelgium (B.L.E.U.).
(6)Points14-18
Sources :Theeconomic situation intheCommunity .N°4-1977and1,1978.

-66
TABLE 3.Trend ininvestment (1)
Gross fixed asset formation
(%change over previous year )
1976 1977τ
1978 (2)
volum® value volume value■volume J
Belgium -0.1 8.7 0.8 8.4 0.9
IDenmark 16.3 24.1 -3.5 4.5 1.5
IGermany 5.0 8.5 3.5 7.5 4.3
IFrance 4.5 14.0 0.5 10.7 2.0
IIreland 4.4 23.1 9.0 26.5 9.5
Italy 2.3 21.3 4.0 23.6 3.2
ILuxembourg -4.6 2.4 3.111.8 0.0
INetherlands -1.9 7.5 7.5 15.0 1.5
United Kingdom -4.4 12.3 -4.1 8.2 2.8
Community 2.8 12.2 1.1 10.3 2.9
(1)Points 10,16
(2)Forecast byCommission services
Source :Theeconomic situation intheCommunity ,N°4,1977
and1,1978 -

-67-
GRAPHI.IndicesofGDPiiTEUAperheadatcurrentprices(1)
(Base:EEC=100)
150n
140II
\ /zz
l\ ~lnv -//!
130I–i- – ~¥-T-–
120Ιν^Λ : –ΨV^/Λ.''"//,\^ \
ίΛ/'^Γ"' >> Ι'^\ .*/*77 *
h–
I N'^ *v -IRL50I N- 7^
S
406061626364656667686970717273747576777880
(1)1978:Forecasts (EUAexchange rateof17.3.1978).

-68-
PRGermany
France
ItalyNether lands
B.L.E.U
United KingdomIreland
DenmarkGraph II
Appreciation ordepreciation of
thecurrencies ofMember States
in1974-77
Weighted variation ,in%,compared with
1stquarter 1972 ;weighting according t
thestructure offoreign trade .
SO*i i.i i i50*
49. 49.
40.
39. /■*–-– 39.
30. / 30.
». 29.
20. S* S. / s*' " ^ """20.y ^ N«.f –
■*\ s*"""
S. s 8. !
«•S\- ""*'<• t..... ■-–t.–0. [
-S. -s. '
-10. -10.
_k
"1S* II--II -«•
-M. ~ ■**!■ " xv -20»
-23. \^ ^
-30. \\ ^ -30.
-39. \ -35-
-<o. ___ .te.
I -«.; ; ' j-«.
! 10,1 ιιIιI!ιιI*1ΙιιIιιI*;|!ιι1ιI1II!III<IΙIIIII1II1ί–1–1-30 .
1914 1313 1316 19H
ι ,

GRAPHIII:Registered unemployed as%ofactivepopulation/1968-77
(monthlyaverages )
:::::::::
zzzzzzzzl zzzzz-tzi 111,,1111
■« 7-–r. «
ζζζζζζζίζ ========= ========= ========= ζζζζζζρί ===|====|=; ζζζζζζζϊ
1 ί 1ϊϊ-ι-ί--...χ4·7--^&·-$·'-ί"Γ-τΐ-–/τΡ
THH HillHIl-t-HHFTIiTThH
iMT»*771|||Ill||l1MNNniinNiiN ;;M»»7infaM*tnr7
LLUm iiii'ii-
M«mnnn»>»i»77 MaionnnMJtarr
«•••ion7»n»t»»77
HUil-KLOiaUE DANMARK MDEUTSCHLAND FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND UNITEDKINQOOM
Source :ECSO

TABLE4-Summaryofaiddecisions in1977,analysed byMemberStateandbymaincategoryofinvestment (1)
Key:
A:industrial andservice investments of10million u.a.ormore
B:industrial andservice investments under10million u.a.
C:ifrastructure investments of10million u.a.ormore
D:infrastructure investments under10million u.a.
E:infrastructure investments inhill-farming areas
Member
StateNumberofaiddecisions (in
.bracket ^:numberofinvest­
mentsprojects ) (2)Investment involved
(million u.a.)Aidgranted ;
(million u.a.)
A Β C DnTotal A Β C D ETotal A ΒCJD ETotal
'Belgium 1
(.1)1
(4)3
(41)1
C1)6
(47)17,3011,00 19,735,6753,70 j
I0,570,78
I
Ij
I5,731,548,62
Denmark 1
(1)3
(7)10
(51)!
!14
(59)10,337,85 20,01 38,190,670,54 5,37 6,58
Germany 9
(9)61
(269)1
(1)55
(131)126
(410)332,52459,2638,5262,79 893,09 2,3420,55
I1,1818,78 | I
I42,85
France 3
(3)18
(80)3
(3)13
(93)37
(184)304,72161,5874,5266,97 607,7916,4212,39
i22,3519,69 I
I
I70,85
Ireland 4
(4)3
(11)1
(1)6
(41)3
(16)17
(73)83,7037,9514,2832,7821,8519G.56 8,684,79 I2,45
i8,376,0330,32
Italy 4
(4)15
(213)10
(10)17
(81)10
(428)56
(736)107,94370,78512,62124,4366,53118230 8,8465,3064,17
I35,5418,33192,18
Luxembourg 1
(1)1
(1)3,90 3,90 0,54 0,54
Netherlands1
(1)2
(4)3
(5)22,1016,70 38,80 1,315,01 6,32
United
Kingdom17
(17)11i
(34)13
(13)74
(435)3
(6)118
(505)I536,5178,61555,97316,56 2,461490,1154,8711,5036,4842,440,62145,91
Totals39
(39)112 i
(618)29
(29)!181
(883)
217
(451)378
(2020)139102112^03 121&01663,8796,514498>4
'92,39115,85127,94141,4726,52504,17
378
(2020)4498,44 504,17_J
(1)Points27,28.
(2)Fortheprojects of10millionu.a.ormoreincolumns AandCeachdecision relatestoasingleproject.

TABLE5.1:Typesofinvestment financed bytheRegional Fundin1977:
industry andservices .(1)
Category asdefinedin
theFundRegulationTotalamount
ofinvestment
(m.u.a.)Amountof
national aids
concerned (m.u.a.)Numberofprojects andmainsectorsconcerned
Industry
and
ServicesProjects of
10million
u.a.or
more1.392,02 .259,77
Projects
under10
million
u.a.1.127,03 271,87Γ3
2
8
1
2
39J7
t
,2ofA
winch1
2
1
2
1l1
r82
63
59
58
61849
of<142
which39
34
32
160Metalproduction andprocessing
Non-metallic minerals
Metalgoods
Mechanical engineering
Electrical andelectronic engineering
Motormanufacture andaccessories
Manufacture ofothermeansoftransport
Food,drinkandtobacco -
Footwear andclothing
Paper,papergoods,printing,publishing
Rubberandplastics
Financial institutions
Metalgoods
Non-metallic minerals
Mechanical engineering
Electrical andelectronic engineering
Rubberandplastics
Food,drinkandtobacco
Woodandfurniture
Chemicals
Paper,papergoods,printing and
publishing
Miscellaneous industries andservices
2.520,05 531,64 657projects
(1)Point29.

TABLE5.2:Typesofinvestment financed bytheRegional Fundin1975-1977
industry andservices
Category asdefinedin
theFundRegulationTotalamountof
investment
(m.u.a.)Amountofnational
aidsconcerned
(m.u.a.)1
Numberofprojects andmainsectorsconcerned
Γ r
Industry
and^
Services 1Projects of
10million
u.a.ormore
I3,266.20 607.33 85
of
whiché8Metalproduction andprocessing
4Non-metallic minerals
18Chemical ..
1Artificigl andsynthetic fibres
3Metalgoods
9Mechanical engineering
9Electrical andelectronic engineering
12Motormanufacture andaccessories
1manufacture ofothermeansoftransport
9Food-drinkandtobacco
1Textiles
2Footwear andclothing
1Woodandwoodenfurniture
4Paper-papergoods,printing,publishing
2Rubberandplastics
„1Financial institutions
Projects
under10
million
u.a.2,767.60 606.251,519
°f4which1f44Metalproduction andprocessing
120Non-metallic minerals
71Chemicals
198Metalgoods
147Mechanical engineering
157Electrical andelectronic engineering
55Motormanufacture andaccessories
35Othertransport equipment
30Precision andopticalinstruments
50Textiles
50Footwear andclothing
102Woodandfurniture
83Paper,papergood,printing andpublishing
103Rubberandplasting
61Catering andhotels
119Food-drink,andtobacco
L94Miscellaneous industries andservices
o,0"3.80 1,213.58 1,604projects

TABLE6.1.:TypesofInvestment financed bytheRegional Fundin1977:infrastructure (1)
Category asdefinedin
theFundregulationTotalamount
ofinvestment
millionu.a.Totalamountof
national aidcon­
cerned millionu.a.Numberofprojects andmaintypesofinfrastructure
concerned
r
i18Generalservices toindustrial estates
(roads,raillinks,watersupplyand
purification ,sewersetc.)
projects of
10million
u.a.or
more1,218.01 775.2629of
which[4Portdevelopment
I3Energysupply
2Waterdisposal;waterpurification
1Roadworks
k1Airportdevelopment
Infra­
structure J
projects
under10
million
u.a.663.87 516.50883oii
whichr26Sitepreparation forindustrial estates
609General services toindustrial estates
(roads,watersupply,sewers,etc.)
37Advance factories
59Tourist developments
20Roadworks
38Portdevelopments
9Airports
85Miscellaneous infrastructure (energy
production ,télécommunications etc.)
projects in
hillfarm­
ingareas96.51 8869.451ofI
which1[451Generalservices (road,water
[supply,etc.)
TOTAL projects
(1)Point30.

TABLE6.2.-TypesofInvestment financed bytheRegional Fundin1975-1977 :infrastructure
Category asdefinedin
theFundregulationTotalamount
ofinvestment
million u.a.Publicexpenditure
takenintoaccount
million u.a.Numberofprojects andmaintypesof
infrastructure concerned
Ψ
59General services toindustrial estates
(roads,raillinks,watersupplyand
purification ,sewersetc.)
projects of
10miIlion
u.a.ormore3,654.89 2,264,7985-of4
which|gPortdevelopment
3Energysupply
5Roadworks
2Airport development
8-Miscellaneous infrastructure (energy
►supply,telecommunications ,etc.)
Infra- ^structureProjects
under10
million u.a.
Projects in
hillfarming
areas1,771.08
251.121,342,65
218,J2D2,250 4
of.
which
809of
whichr31Purchaseoflandforindustrial useI
137Sitepreparation ft>r•fpdustrial estate
'1183Generalservices toindustrial estates
(roads,watersupply,sewers,etc.)
384Advance factories
82Tourist developments
122Roadworks
107portdevelopments
.23Airports
w181Miscellaneous infrastructure (energy
production ,telecommunications etc.)
809Generalservices (road,water
supply,etc.)
TOTAL 5,677,093,826,34 3,144projects |s

TABLE7.EuropeanBevelopnent Fund 1975-1977(1)
Regionalstatistics AidgrantedInroundedfigures.(Inbrockets,ftabofofprojects.)(•llUonu.a.)
I,Industrial handicraft
andserviceactivitiesIt.InfrastructureIII.RuralInfrastructureXV.Total* Less
decoositaliTotal
1975 1976 1977Total
75♦76♦771975 1976 1977Total
75♦76♦771975 1976 1977Total
75♦76♦771975 1976 1977Total !
75♦76♦771
BCLGIUN
riandara I 2/28(19)3/90(19)3/87(26)10/05(64) 2,28(19)I5/90(19)I3,87(26)10,05(64)I
Vallonla 0,89(5)I1,43(6)II1,35(5)3.67(16)0.87(12 )1.34(3)1.85(15)4.06(30)I 1,55(1)I1.55(1)11.76(17)2,77(9)I4,75(21)9,28(47)Il_- !
I0.89(5) 1/43(6)1/35(6)3/67(16)3/15(31)5/24(22)5/72(41)I14,11(94)1I1/55(1)J1/55(1)I4/04(36)I6/67(28)I8/62(47)19,33(111)I□□
DENMAftK
Greenland 3,25(25)4,52(31)5/37(51)13/14(107^ 3/25(25)6/52(31)15/37(51)I13,14(107 )0,01 I13.13
Otherreolona 0,62(9)0,57(10 )1,21(8)2.40(27)-I1,33(1)rl 1,33(1) 0,62(9)1.90(11)I1.21(8)I3,73(28)I0,10 I|3.63
TOTAL I0/62(9)I0,57(10 )1/21(8)2/40(27)3/25(25)II5/85(32)I5/37(51)14/47(108)1□ZJEZJ 3/87(34)6/42(42)6/58(59)I16/87(135)1 0,11 I16/76
6Ε4ΚΑΝΤ I
$chlcsw1g*Holste1n I0,01(1)0,89(14)3,73(28)4,63(43)1,02(4)1,26(8)3,58(24)5/86(36) 1,03(5)I2,15(22)7,31(52)10,49(79 )0,003 10,487I
9re*en I 0,11(1) 0,11(1)I0,05(1) 0,11(1)0,16(2) 0,05(1)0,11(1)0,11(1)0,27(3)
lowerSiioav i0,53(6)0,78(7)5,30(50)6,61(63)0,97(8)0,70(7)5,84(37)7,51(52) 1,50(14)1,48(14)11,14(87)14,12(115 )0,060 14,060
North-Rhine Westphalia 0,24(3)0,12(7)1,84(24)2,20(34) 0,24(3)0,12(7)1,84(24)2,20(34)
Messe 0,35(8)0,35(13)1,75(22)2,45(43)0,38(4)0,38(4)3,29(15)6,05(23) 0,73(12)I0,73(17)5,04(37)6,50(66)•0,007 6,493
RMneland-Palettnate 0,46(9)1,20(37)2,82(52)4,48(98)0,37(3)0,55(8)0,65(11)1,57(22) 0,83(12)I1,75(45)3,47(63)6,05(120)0,013 6,037
Saarlind 1,83(2)0,97(2)3,00(49)I5,80(53)I 0,75(4)1,48(10)2,23(14) 1,83(2)I1,72(6)4,48(S9)I8,03(67)
Bavaria 3,27(34)3,29(35)|6,56(69)I1,66(11)6,05(42)3/23(26)10/94(79) 1,66(11)I9,32(76)6,52(61)I17,50(148)0,127 17,373
BadervVûrtteaberg 0,38(4)1,16(18)I1,54(22)I0,64(3)0,12(3)0,60(7)1,36(13) 0,64(3)I0,50(7)I1,76(25)I2,90(35)0,010 2,890
Berlin L--_J 1.00(1)1.99(1)1.17(1)4,16(3)-I! 1.00(1)11.99(1)!1,17(1)4,16(3)
TOTALI3,42(29)JI8/07(11922/89(278)!I34,38(426)JI6/09(35)IΙ11/Β0(77ϊΠ 19,95(132 *37,84(244 *L«MBaaanal aaBBMauBijI9,51(64)I19,87(196)1 42,84(410)172/22(670)j0/220I72,00|
<1)Point39.

Tabla7(cont.)
MANCf
Alsaca
Aquitain *
Auvtrgna
Bassa-MoraandU
Burgundy
BHtanny
Chamoagno
Corsica
Franchr<o«té
Hauta-Nor«and1t
languadoc-ftouss 11Ion
Llaouiln
H1d1-Pyrénéas
Nord-Pas-dr-Calals
Paysdalaloir*
Picardie
Prov«nca-c6te d'Aïur
fthdne-Alpat
Guadcloupa
Guyana
HartlnJqua
ft«union
TOTALI,Industrial,handicraft and
sarvtcaactivity
1975
0,51(6)
1,51(8)
0,17(4)
1,38(7)
0,31(5)
1,13(11)
0,59(4)
0,01(1)
0,23(1)
0,76(9)
0,66(6)
3,09(19)
1,17(9)
0,97(12)
1,74(16)
0,01(1)
0,25(4)
0,05(2)
1,54(10)
0,65(19)
0,12(1)
0,97(6)
0,75(16)
18,77(179 )1976
0,58(2)
1,31(3
0,15(1
0,44(3
0,22(3
1,76(9
0,09(1
0,05(1)
1,26(3)
0,72(4)
5,56(19)
1,58(9)
2,57(7)
2,89(12)
0,42(3)
1,28(6)
0,70(4)
1,70(16)
0,31(3)
1,13(7)
0,48(7)1977
0,28(2)
5,54(7)
1,09(6)
1,12(4)
0,67(6)
0,40(2)
7,81(1)
0,78(3)
5,21(10)
1,21(9)
1,35(10)
1,29(5)
0,31(4)
1,33(4)
0,23(4)
0,19(6)
25,20(123 )JcmiBiian28,81(83)XX.Infrastructure
Total I
75♦76♦77|197».
1,37(10)
8,36(18)
1,41(11)
2,94(14)
0,53(8)
3,56(26)
0,68(5)
0,01(1)
0,28(2)
2,42(14)
1,38(10)
16,46(39)
3,53(21)
8,75(29)
5,84(37)
0,43(4)
2,88(20)
0,05(2)
3,53(19)
2,86(39)
1,76(8)
2,33(19)
1,42(29)2,18(4)
0,54(2)
9,60(8)
4,69(12)
0,56(1)
1,94(3)
0,72(2)
1,70(3)
1,22(11)
0,22(1)
72,78(385 )'23,37(47)1*74
6,42(17)
12,60(2)
18,96(2)
1,37(8)
3,86(1)
0,97(7)
4,17(28)
0,09(2)
0,»3(2)
1,23(12)
1,37(5)
51,27(86)19*
6,61(3)
0,59(2)
12,55(4)
1,47(11)
4,16(27)
5,81(16)
4,13(21)
6,72(17)
42,04(101 )Total
75♦76♦77
6,42(17)
21,39(9)
1,13(4)
61,11(14)
7,53(31)
4,72(28)
11,61(20)
5,82(30)
5,87(31)
6,72(17)
1,31(13)
0,45(3)
1,23(12)
1,37(5)
Il16,68(234r 3,88(6)XIX.RuralInfrastructure
1975
0,74(1)
0,32(1)
1,33(1)
1,49(3)1976 1977Total
75♦76♦77
0,74(1)
0,32(1,)
1,33(1)
1,49(3)IV.Total»
1975
0,51(6)
1,51(8)
3,09(9)
1,92(9)
0,31(5)
10,73(19)
0,59(4)
4,69(12)
0,01(1)
0,23(1)
1,64(11)
3,93(10)
3,09(19)
3,38(14)
0,97(12)
3,44(19)
0,01(1)
0,25(4)
0,05(2)
1,54(10)
2,07(30)
0,34(2)
0,97(8)
0,75(16)
46,02(232 )1976
0,58(2)
7,73(20)
12,75(3)
0,44(3)
0,22(3)
20,72(11)
0,09(1)
1,37(8)
0,05(1)
1,26(3)
4,58(5)
5,56(19)
2,55(16)
2,57(7)
7,06(40)
0,42(3)
1,28(6)
0,70(4)
1,79(18)
0,54(5)
2,36(19)
1,85(12)
(76,47(209 )1977
0,28(2)
5,54(7)
7,70(9)
1,71(6)
13,22(10 )
1,47(11)
4,56(29)
5,81(16)
7,81(1)
4,91(24)
5,21(10)
1,21(9)
8,07(27)
1,29(5)
0,31(4)
1,33(4)
0,23(4)
0,19(6)
70,85(184 )

Vâ9LC_r
I.Industrial,handicraft ond
••rvlcoactivity *XI.Infrootructuro "I.ferraiImfMtruttvft IV.Totalt Lf«»
»*<oao1toUTotal
19751
1976 I
|1977Total
75♦76♦771975 197» 1977Total
75♦76*77I19751976 1977Total
IFS♦76♦771975 1976 1977TotalI
p♦76♦77I
IftCLAm
(ontgil <4> (4) (11) (3) <19) <2) (4) (6) (15> (7) i17} (29)
MorthUtlt (2) (5) (1) (2) (6) (1) (3> (4) (6) (5) \5) (14)
Uffct (9) (5) (5) (9)(«II(5) (19) (9) (2) (11) (16) (112) (49)
muiteti (5) (2) <1> (•) (7) (5)I(4) (1) (12) (7) i(6)
SouthUtat (ê) (3) (2) (13) (4) (7)i(3) (14) (6) (1) (7) (12) (16) [6) (34)
SouthEut (5) (2) (1) (8) (3) (11) (6) (20) (8) (13) ([7) (28)
fltdlandt (7) (1) (2) (10) (8) (10) (3) (21) (3) (3) <15) (11) <[8)(34)I
Itit (4) (3) (2) (9) (3) (7) (10)(20) (7) (10) i12)(29)1
NorthCast (9) (1) (10) (3) (2) (4) (9) (2) (2) (12) (2) I7) (21)
RultWMlonal (1)L__». (2) (2) (4) <nl <ESLJ (5)L
TOTAL !I13^23(52)^12,73(17)JI13,47(15)J^39,43(84)J6.66(53)|16,69(54)I10,82(42 )34,19(149 )Lnnmi~l 5,07(18>J6,03(16)liiMiniim11,10(34)
taniutiaia19,91(105)1
LaaaaaaaaaaJ34,49(89)I30,32 <
Laaaaaai[73)184,72(267 )
laaaaaaaaaaaLïlJ 83,76|

îjbtf7(MM.)IZ.XnAiitrlaL/handicraftandt IXI»XnfrMtrvctvro * – 1
sorvtcoact1v1t1o « iHZ.fturalInfrastructure IV.Totolt miTotol{
ITotal Total Total i-ii 1IΤ·»>1 IfeCOMltatt
1973 1976 1977 75*76*77 1973 1976.22ZZ 79*76*77 1975 I1976 1977 75*76*77 I1975 l1976 I1977 73*76*77
ilMj Γ■"
AbruitlI1/33(6) 10.73(37)12.06(0 )4.19(6) 13/24(10)I17/42(16)I0,16(3)0/34(9) 0/72(14)9/69(17)I0.34(9)13/97(47)30/20(73)0/34 I29/06
Miftlcata 2/20(3)2/96(8)3/16(13) 2/61(4)0/20(3)I2/81(7)I1/66(26)2/16(29)1/16(43)3/02(98)1/66(26)I6/99(38)4.36(34)13/01(116)
Calabria 1/83(4) 1/83(4)422/71(3)6/20(1)28/91(6)2/15(27)2/96(60)3/92(95)9/03(182 M2/13(27)I27/30(69)10/12(96)39.77(192 )
UMIAilI16/82(25)7/36(23)14/11(44)36/29(92)12/64(4)28/63(12)16/73(18)56/00(34)0/44(13)3/25(34)3/11(1021 6/80(169)29/90(42)I39/24(09)33/95(164)1ρ03/09(295)
FHull-Vonotfo 61wl1o13/02(22)13/02(22) 4/83(63)4/83(63) 17/65(65)17/85(65)
LatióI19/12(7) 13/11(38)32/23(45)2,80(1)13/57(3)2/49(2)18/86(6)0/20(2)2/21(15)0/19(10)2/60(27)22/12(10)I13/78(18)15/79(50)53/69(76)0/01 33/68
MarchoI1/16(1) 3/83(9)4,99(10)0/51(1) 2/36(6)2/87(7) 0/13(3)0/13(3)1/67(2) 6/32(16)7/99(20)
ftollto3/08(6)3/08(6)|0/61(2) 0,15(1)0/76(3)0/34(3)1#56(7)0/95(42)2/65(52)0,95(5)I1/56(7)4/16(49)6/69(61)I
mollaI12/13(18) 18/04(44)30/17(62)I14/40(3)3/14(8)13/06(2)32/60(13) 3/35(63)3/35(63)26/53(21)I3,14(6)34/45(109166/12(138)1 0/03 66/07
Sardinia I3/08(3)I 2/73(12)5/81(15)I10/87(6)55/28(9)8/39(17)I74/54(32)1/30(8)1/14(4)0/67(7)3/11(19)15/25(17)I36/42(13)11/79(36)63/46(66)
Sully 7.11(14)4/72(17)11/63(31)!17/80(2)26/10(7)I23/67(9)I67/77(16)0/31(3)1/66(9) 1/*7(H)16/11(7)I34,87(30)28/59(26)61/57(63)
Tuieaiw 0/81(2)0/81(2) 0/61(2)0.81(2)
■ul1t-roo1ofi6t
(8«»iilcata-Pual1a ) - - -I16/18(1) 16,18(1) 16/18(1) 16.18(1)
T0TM. I53/64(60)|118/50(46)174/14(217)1uauuMni|l46/28(323)IiitMnnual63/81(25)2170/22(49)
•■■MMMau99/71C91)
•ΜΜΜΒΜΜ333/74(165)1 6/58(89)
laaaaaaaaaaa J15/50(187 18/33(428)1laaaaaaaaaaaa40/41(704)124/03(174)I204/22(282)
taaaaaaaaaaaa1192/18(736)p20/43(1192]I0/40320/03

IUXC.130UH6
NCTHMlAilM
(fcnlnqtn
llnburq
Frltsland
TOTAL
UNIT6P KINSOflH
N.England
N.U.England
YorksMr«iHubarsld «
C.Udlands
S.y.England
Scotland
Ualas
N.Iraland
y.Ndlands
TOTALI.Industrial /handicraft and
••rvletactivitiesZI*Infrastructure
ιjIXI.duraiInfrastructureIvTotala LNI
tecooaitalsTotal!i-j !1976 I1977 """1V"\7i*76*771975 1976 1977Total
75♦76♦771975 1976j1977Total
75♦76♦771975 1976 1977Total
75♦76♦77LJr^n I0,75(1)j 0,54m I1,29(2)j!
":0,75(1) 0,54(1)I1,29(2)j
■mnsmi
I
- II
I- 3,4«(2)3,95(1)5,34(4)12/77(7)ι 5/48(2)3/95(1)5.34(4)12/77(7) 12,77(7)
2/10(1)I3/56(4)0/99(1)6/65(6) 2/10(1)3/56(4)0/99(1)6/65(6) 6,65(6)
-I2,49(3) 2,49(3)I - 2,49(3) 2/49(3)2/49(3)
L-^_J I5/58(3)JI10,00(6)6,33(5)21,91(16 ) 5,58(3)J10,00(8)I6,33(5)I21,91(16)I 21,91(16 ]
3,95(34)23,762(46 )l
21/17(12)Iι
48/88(92)13/26(70)21,516(113 24,89(82 )59,67(265 ) 17,21(104 )45,278(159J 66/06(94)108,55(357 )!
2,1*106,41
1/04(15)I5;969(17)j7,68(8)14/69(40)6,24(49)10,467(85 )5,54(63)I22,25(197 ) 7/28(64)16,436(102 )13,22(71)I36,94(237 )0/38 I36/56
2/974(24)j1,27(3)4,24(27)2,38(43)2,050(36 )4,88(72)9,31(151 ) 2,38(43)5,024(60 )6,15(75)13,55(178 )0/51 I13,04
0,430(8)I 0/43(8)0,27(8)0,504(10 )0,79(9)1,56(27) 0/27(8)0/934(18)|0/79(9)I1/99(35)
0/85(9) ι0,372(9)I 1,22(18)1,02(34)1,403(13)I1,10(17)3/52(64) 1,87(43)1,775(22)I1,10(17)I4,74(82) «0,07 |4,67
9,16(45)j10,264(12)I21,07(4)40,49(61)10,24(77)22,004(90 )17,32(69)I49,57(236 )ι4/24(11)2/778(30)0/60(5)I7/62(46)23/64(133)35,046(13 ?)08,99(78 )97,68(343 )3,56 j92,12
0,96(7)9,413(40)I3,90(12)14,27(59)13,91(115 )10,664(77)I13,22(109 )37,79(301 ) 14,87(122 )20,077(11 ?)h?,12(121)I52,06(360 )1,50 I50,56
13,36(1)4,870(25)I11/27(12)29,50(38 )I5,24(15)11/354(38)!11/18(27)27/78(80) 1,065(17)I0/02(1)1/09(16)18,60(16 )17,289(80 )B2,47(40 )58,37(136 )2,96 55,41L:0,03(1)0,008(1) 0,04(2) 0,03(1)0,008(1)I-0,04(2)
29,32(111 )158,054(181 )66,36(51)I
1·····η·«Μΐ1153,72(343)1 I52,59(412)||79,970(463)j78 ,92(448)|
■•■•■•■•■■• MaaaaaaaBna[211,49(13231 4,24(11)
iiniHiiini(3,843(47),0,62(6)I8,71(64)15(534)Il41,867(691)£45,90(505 »p73,92(1730)113,12
^imiiinn360,80ι»ΐΜ*··η·Ι

TABLE8.Commitments andpayments byMemberState(1)
COMMITMENT S(2) PAYMENTS I
I197t
I1975-1 ?
| 1977 '~~jITotal1975-1977 1
committed committed ITotal X
m.u.a.1975 1976 1977 committed I
m■u•a•%I*Im-H--aLU ΓΤΊIm_14.a.IΓΤΊ m.u.a.%Y197S-77
IBelgium 8.619 219.330 1 6,114 22,825 Iη8,939I1 46
IDenmark 6,576 116,756 11,556 2 .3,984 15,763 211,302 67
IGermany 42,829 971,974 6 13,348 524,891 638,239 5 53
IFrance 70,856 14193,326 1516,126 1828,867 1045,828 1290,820 12 47
IIreland 30,308 683,832 76,996 818,032 722,111 647,139 6 56
Italy 192,180 38520,000 4044,296 49112,864 41149,517 40306,677 41 59
ILuxembourg 0,539 1,289 0,227 0,406 0,117 0,750 58
INetherlands 6,323 121,911 22,849 35,448 22,817 111,115 2 51
IUnitedKingdom 143,551 29360,889 2818,618 2088,269 32118,639 32225,527 31 62
j1Community501,781 1001,289,306 10090,668 100277,332 100372,508 100740,508 100 57
<1)Points63and64.
(2)Commitments madeandthencancelledwithin1977areexcluded,whichexplains
certainminordifferences ,for1977,betweenthefiguresinthistableandthoseinTable7.

-80-
TABLE9.Inspection visitscarriedoutin1975and1976(i)
Numberofprojects inspected
Country andregion 19771975-1977
I
I•Industry InfrastructureIndustry Infrastructure
Flanders
I8
Wallom a 2
Belgium 2 8
Greenland 2 19
NorthJutland 5
Viborg 1
Denmark 2 6 19
Schleswig-HolsteinI
1
LowerSaxony 1 4
Bavaria 3 3 3 3
Hesse 3 3 3
I3
Germany 6 6 7 11
Auvergne 5 4 5 4
Basse-Normandie 2
Britanny 2
PaysdelaLoire 3
Lorraine 6
Midi-Pyrénées 8 3 83
France 13719
I
Donegal1
^i
NorthWest 1 1
West 1 1
MidWest 1 5
SouthWest 3 6 3 6
SouthEast 1
Midlands 2
East 1
NorthEast 2 1
IrelandI
I3
I6 12 20
(1)Point70.

Table9(cont.)-81-
Numberofprojects inspected
Country andregion1 ■ ■ 1
1977 1975-1977
Industry Infrastructure Industry Infrastructure
Abruzzi
Basilicata
Calabria
Campania j
ι
Lazio i
Marche j
Molise
Puglia
Sardinia
Sicily3
3
3
1
23
4
5
2
4
1
ι/
3
3
3
1
6
2
13
4
5
4'
1
2
4
1
3
4
Italy121
19 19 31
Luxembourg ]
ii :ι
I
¡
i
i Ii
I! 1-
I
i
I
Gromngen j
Limburg jI
!I
2
1
–
Netherlands 3
Northern England
NorthWestEngland
Yorkshire&Humberside
Scotland
Wales3
2
2
3
48
13
5
53
2
2
3
517
13
5
23
5
UnitedKingdom
jI
IH
I31 15 63
Community 48 71 80t
170

Table10:Budgetsituation (1)
Useofcommitment appropriations (m.u.a.)
•Aopropriations available for1977Usein1977
T '-*
1977BudgetvBroughtforward ,
from197.6ITotal––– i
Commitments I%use
1977 . !Approps.avai lable'at3^.12.1977
500.00 . 12.48 512.48501.78 97.91 % 10.70
Usemadeofpaymentappropriations (m.u.a.)
!
jAppropriations available in1977 Payments madein1977Approps.outstanding at31.12.77
Broughtfor.warc
from19761977budqetTotalOnsumsbrought
forward 1976On1977
aDorooriaiioruTotal Onsumsbroughtforward 1976On1977appropriations
82.00 400.00 482.00 82.00 290.51 372.51 109.49
Development ofcommitments (m.u.a)
;Commitments
•unpaidat
I'1.1.77Commitments in1977 Total
commitmentsCommitments
paidandliqui­
datedin1977.Commitments
unpaidat
31.12.1977 Onsur&s-out-
standina from76On'1977
appropriationsTotal
-419.53 12.48 489.30 501.78 921.31 372.51 548.80
(1)Points20and63.