28.889 Official]ournal of the European Communities No C 221/3 
Opinion on the European Regional Development Fund (ERDF): Thirteenth Annual Report 
(1987) from the Commission 
(89/C 221/02) 
On 2 March 1989 the Commission decided to consult the Economic and Social Committee, 
under Article 198 of the Treaty establishing the European Economic Community, on the 
European Regional Development Fund: Thirteenth Annual Report (1987) from the Com­
mission. 
The Section for Regional Development and Town and Country Planning, which was respon­
sible for preparing the Committee's work on the subject, adopted its Opinion on 29 June 
1989. The rapporteur was Mr Amato. 
At its 268th plenary session (meeting of 12 July 1989), the Economic and Social Committee 
adopted the following Opinion by a large majority, with 3 abstentions. 
1. Introduction 
1BL The Committee agrees with the statement by 
commissioner Schmidhuber, in the preface to the 
l^th report, thatthereduction of regionaldispanties 
must become a priority goal of the European Com 
mumty in order to achieve the economic and social 
cohesion foreseen in the Single Act, As Air Schmidhuber 
says, the completion of the internal market will 
undoubtedly give rise to new dynamic forces favouring 
growth, but it may also poseathreat to regions which 
are unable to respond with the appropriate vigour,The 
reform of the structural funds (approved by the Council 
on2^]une 1988) ismtendedtoimprove cohesion by 
focusing assistance on the least advantaged regions. It 
is against this background that we should consider the 
l^th report, in order to assess the extent to which ERDE 
assistance in 198B^ was consistent with this goal. 
2, General comments 
2,1, The Committee considers that economic and, 
more particularly, labour-market trends in the least 
advantaged regions arenocausefor optimism about 
theprospects of greater Community cohesion in the 
runup to 1992, despite the buoyant economies of some 
Aiember States with significant disadvantaged regions. 
The least advantaged regions have greater difficulty in 
seizing the economic opportunities which are opening 
up, Theyarealsoless able to participate in hightech 
Community programmes such as COAiETT, 
Aioreover,many Community policies^Commonagn 
cultural policy (CAl^), steel policy, etcd continue to 
aggravate the plight of many less developed regions, 
and the policies designed to close the development gap 
seem unable to reverse the trend. 2,2, The annual report on the economic situation in 
the Community sets economic policy guidelines for 
1989, It states that^the trend differences inthe gross 
domestic product (CD^) and population growth imply 
that inthe period immediatelyaheadnomorethana 
smallreductionin thedispanty of averagepercapita 
incomes can be envisaged,,,In 1992, average per capita 
CDl^inthefourpoorestcountries willstillrepresent 
only some 6^^of average per capita CDl^ in the four 
richest countnes^(^). The doubling of the structural 
funds can only have a minimal effect on this. The 
same report underlines the glaring disparities not only 
between Aiember States but moreespecially between 
regions,Unemployment isaparticularly striding e^am 
ple^20^m the less developed regions,agamstaCom 
munity average of 11^, 
2,^, The Committee is thus unable to share the Com 
mission^sapparent optimism about the contribution of 
present growth trends to restoring regional balance in 
the short or medium term(seepomtl,^ of the ERDE 
report). 
2,^, The Committee reiteratesapomt made in sev 
eral recent Opinions.the structural funds playamamly 
compensatory role, and althoughthey provide impor 
tantassistance,theycannot suffice to achieve internal 
cohesion. They must be backed by action in pursuit of 
theother twogoals enshrined in Article l^b of the 
Single Act coordination of national economic policies, 
and furtherance of economic and social cohesion by 
other Community policies. 
3. Specific comments 
3.1. The Committee stresses the usefulness of the 
STAR and VALOREM programmes (now underway), 
and of RENEVA1 and RESIDER (still on the drawing 
(«) Annual Economic Report 1988 1989 [COM(88) final], p 29 
(10 January 1989) 
No C 221/4 Official Journal of the European Communities 28. 8. 89 
board). Such programmes must be increasingly geared 
to the specific aim of improving regional balance, and 
must not simply cushion the negative impact of other 
Community policies. 
The Committee endorses the Commission's decision to 
launch two schemes in the field of R & D (STRIDE) 
and environment protection (ENVIREG) focusing on 
the least advantaged regions. The Committee would 
take this opportunity to propose again the establish­
ment of an ERDF programme for upland areas (]). 
3.2. Turning to the National Programmes of Com­
munity Interest (NPCI), the Committee notes that 
despite progress in some Member States and the 
increased dynamism which is changing the overall situ­
ation, no NPCI applications were received in 1987 from 
Greece, Ireland, Italy or Luxembourg — a list which 
includes some of the main ERDF beneficiaries. Exclud­
ing ERDF contributions to the Integrated Mediterrane­
an Programmes and the Integrated Development Oper­
ations, no applications for NPCI grants were made by 
either Italy or Greece. 
The Committee is seriously concerned at the delays and 
constraints which have emerged in the use of pro­
grammes, particularly as they could disrupt the launch 
of the reformed structural funds. Furthermore, these 
problems have appeared in Member States with sub­
stantial disadvantaged regions. Programmes received 
15,3% of ERDF appropriations in 1987, while the 
Regulation specified the allocation of at least 20%. 
3.3. There have also been a number of delays in the 
implementation of specific measures to tackle particular 
problems in certain Member States. As the Commission 
says, these delays are clearly due in part to the innova­
tive nature of the programmes; yet the first 'non-quota' 
measures date back to 1981. Such a lengthy lead-time 
must seriously impinge on their efficacy. 
3.4. The Committee appreciates the Commission's 
support for integrated development operations (IDOs), 
(') Sec the Committee Opinion of 28 April 1988 on a policy for 
upland areas (OJ No C 175, 4.7.1988, p.47). which has led to the presentation of a number of 
new proposals and the financing of a large number of 
preparatory studies. IDOs are the first concrete 
expression of the integrated approach enshrined in the 
new structural fund regulations. This approach is now 
widely held to be the best way of maximizing the 
efficiency of Community assistance. The various struc­
tural funds are used jointly, and the partnership prin­
ciple encourages regular talks between the Member 
State authorities (local, regional, national) and the 
Commission. The approach has also achieved useful 
synergies. 
However, it has to be said that the practical results 
of the integrated approach in the first IDOs remain 
unsatisfactory, as regards both the effective integration 
of assistance and coordination between the various 
authorities and financing instruments. 
3.5. The bulk of ERDF aid (84,7%) still goes on 
projects. The Committee notes the Commission's obser­
vation that there has been a steady improvement in the 
quality of grant applications. However, the proportion 
going to infrastructure projects has actually increased 
to 91 %, four percentage points up on 1986. It is interest­
ing to note the growth in support for infrastructure 
projects linked to productive activities. However, the 
funding allocated to productive investment projects 
remains, at 9,2 %, far below its 30 % target. Once again, 
the least developed countries (Spain and Portugal 0%, 
Greece 1 %, Italy 13%) have the greatest difficulty in 
submitting grant applications for productive investment 
projects. 
The Committee therefore considers that the next annual 
report shoud indicate the level of infrastructure pro­
vision for each region compared with the level of infra­
structure projects financed by the ERDF. The Commit­
tee also notes the unfortunate tendency of Member 
States with the worst regional problems to tackle infra­
structure first and investment afterwards, a practice 
which has proved unable to accelerate the development 
of the lagging regions. By blurring this compartmentali-
zation, the integrated approach offers the best way 
28. 8. 89 Official Journal of the European Communities No C 221/5 
to link infrastructure aid to aid for expanding and 
upgrading productive activities. 
The fact that 80% of assistance went to small projects 
is a cause for concern: if assistance is too fragmented, 
it cannot have a significant impact on regional econom­
ies and employment. 
3.6. On the subject of employment, the Committee 
notes that aid for infrastructure does not of itself create 
permanent jobs, and leads to the employment of less 
skilled labour than productive activities in the strict 
sense of the term. The number of jobs created and 
maintained between 1976 and 1987 is lower than fore­
cast, and is in any case low compared to the investment 
financed. However, the high proportion of infrastruc­
ture projects makes the figures all the more disappoint­
ing. The Committee stresses that ERDF projects must 
aim to improve both the quantity and quality of jobs. 
At all events, ERDF aid must not increase the number 
of temporary ill-protected jobs. 
3.7. Measures to tap the indigenous potential of 
the regions have received insufficient attention in the 
Member States with the greatest concentration of disad­
vantaged regions, where the mobilization of local 
resources should be seen as a major vehicle of economic 
growth and employment. In Italy, for example, 
measures to develop indigenous potential were only 
financed under the Integrated Mediterranean Pro­
gramme for the Molise region. 
3.8. The Committee is pleased to note that its request 
for more information on the studies financed by the 
ERDF has been met in the 13th report. 
However, the Committee notes that most were feasi­
bility studies regarding individual schemes or specific 
assistance. There was a lack of studies on the potential 
of innovative sectors and new technologies to boost 
regional development, and on the prospects for inte­
grated development of individual sub-regional areas. 
The Committee considers that wider recourse to studies 
financed by the ERDF could help improve the quality 
of the programmes and projects. The disparities 
between the number of studies financed by the ERDF 
in the different Member States (caused by the lack of 
initiatives in countries such as Italy, Spain and Greece) 
is a matter for concern. disadvantaged regions remains limited. 41 % of the 
Community population lives in areas eligible for ERDF 
assistance. In 1987 the less developed regions received 
75 % of ERDF aid; eight of these regions appear in the 
top ten beneficiaries. In accordance with the objectives 
of the new structural fund regulations, the Committee 
considers that aid should be concentrated more on the 
least advantaged regions and those in industrial decline. 
3.10. The Committee appreciates the fact that the 
Commission stepped up its checks in 1987. It is also 
pleased that the Commission has asked national autho­
rities to communicate information on the progress of 
ERDF projects more promptly. The high number (937) 
of 'dormant' projects shows that Member States 
seriously underestimate the importance of removing 
obstacles and bringing operations to a swift conclusion. 
The Committee urges action to ensure that the fund 
allocations are used more promptly, in order to improve 
the ratio between disbursements and commitments and 
speed up all programmes which are seriously behind 
schedule or dormant. 
3.11. The Committee endorses the Commission's 
concern to improve information about ERDF oper­
ations to meet the growing demand, particularly in 
the lagging regions. The Community should help to 
establish inter-regional and international cooperation 
and exchange arrangements as soon as possible. 
3.12. Once again, the Committee calls for the 
inclusion in the annual report of more detailed data 
concerning the impact of ERDF assistance on economic 
trends and employment in the individual regions. 
3.13. Chapter 7 contains information on other Com­
munity assistance in the regions, as requested in the 
Committee Opinion on the 12th report. The Committee 
considers that this information should be amplified in 
future reports to include a regional breakdown of all 
the measures financed under the various Community 
policies, to help gauge how far they meet the goal of 
improving internal cohesion. 
3.14. The report contains no details of the part 
played by the socio-economic organizations in the plan­
ning and implementation of ERDF projects. The Com­
mittee asks that such information be included in the 
next report. 
3.9. The geographical analysis of assistance reveals 
that the tendency to concentrate funds on particularly 3.15. The 13th report would undoubtedly have been 
more useful if it had been published sooner. The Com-
No C 221/6 Official Journal of the European Communities 28. 8. 89 
mittee urges the Commission to make greater efforts to 
speed up the preparation, translation and publication 
Done at Brussels, 12 July 1989. 
The Economic and Social Committee considers the 
proposed programme to be necessary. It is regarded as 
a sensible supplement to and continuation of earlier 
efforts on the energy market, and it will go very far to 
meet the Community's needs in this area, provided 
that the following comments and ideas are taken into 
account. 
The Committee is pleased to note that the single 
THERMIE programme now covers all measures to 
promote projects in the field of energy technology: this 
represents a certain rationalization of the efforts being 
made in this field. It would not, however, be acceptable 
to the Committee if this regrouping resulted in a 
reduction of the financial assistance to any of the sectors 
covered by the new programme. 
1. Assessment of previous programmes 
1.1. The present proposal for a Council Regulation 
(EEC) on promotion of energy technology in Europe 
constitutes a continuation of earlier activities in this 
field which were carried out under two programmes: 
the energy demonstration programme, of the report. An earlier first edition would be helpful, 
even if it only appeared in certain language-versions. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE 
the hydrocarbons technology programme (2). 
The results can be summarized as follows: 
1.2. Energy demonstration programme 
— The programme began in 1978. It runs from January 
1986 to the end of 1989, and is governed by Council 
Regulation (EEC) No 3640/85 of 20 December 1985. 
— There are two assessment reports: Projects on 
efficient energy use and renewable energy sources, 
November 1988, Caprioglio + March Consulting; 
and Solid Fuels, November 1988, Thurlow + Kal-
lembach. 
— By the end of 1987 1 445 proposals had been selected 
from a total of more than 5 000. 
— Of these 57 % concerned renewable energy sour­
ces, 36% energy saving, and 7% solid fuels, 
including liquefaction and gasification. Opinion on the proposal for a Council Regulation (EEC) concerning the promotion of energy 
technology in Europe (THERMIE programme) (!) 
(89/C 221/03) 
On 12 April 1989 the Council decided to consult the Economic and Social Committee, 
under Article 198 of the Treaty establishing the European Economic Community, on the 
abovementioned proposal. 
The Section for Energy, Nuclear Questions and Research, which was responsible for preparing 
the Committee's work on the subject, adopted its Opinion on 30 June 1989. The rapporteur 
was Mr von der Decken. 
At its 268th plenary session (meeting of 12 July 1989) the Economic and Social Committee 
adopted the following Opinion unanimously. 
(') OJ No C 101, 22. 4. 1989. (2) OJ No L 350, 27. 12. 1985, pp. 25-29.