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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
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règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
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file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
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COMMISSION OF THE EUROPEAN COMMUNITIES
C O M(84) 344 fin a l  
Brussels, 13 July 1984
STATISTICAL M ACHINERY T O  ESTABLISH THE O R D E R  O F  PRIORITY T O  B E  
APPLIED W H E N  G RANTING E U R O P E A N  SOCIAL F U N D  ASSISTANCE T O  REG IO NS
(Communication from the Commission to the Council)
C O M(84) 344 fin a l

C O M M U N IC A T IO N  F R O M  T H E  C O M M IS S IO N  T O  T H E  C O U N C IL
Subject :  Statistical m achinery to establish the order of priority to b e
applied w h e n  granting European Social F u n d  assistance to regions
IN T R O D U C T IO N
During the review of the European Social Fund, the C o m m issio n  presented to  
the Council a  proposal for the allocation of appropriations b ased o n  the  
classification of applications for assistance submitted to the C o m m iss io n  
according to a  declining order of regional priority. This proposal did not  
concern the regions benefitting from  a  higher rate of intervention (*).
T h e  C o m m issio n  drew  u p  a  list of C o m m u n ity N U T S  level II I (**) regions b ased  
o n  the following objective criteria:
- statistics o n  gross dom estic oroduct reflecting the econom ic perform ance  
of the region;
- statistics o n  general unem ploym ent, long-term structural u n em p lo ym en t a n d  
youth unem ploym ent, w hich  are given equal weight in the u n em p lo ym en t  
indi cator.
T h e C o m m issio n  pointed out that the data u sed  w a s  that available to the  
M e m b e r States in respect of N U T S  leveL III regions a n d  w a s  collated with  
C o m m u n ity statistics d raw n  from  the Labour Force S am p le Survey a s  regards  
the u nem p lo ym ent indicators) in order to establish comparability a n d  obtain  
indications of trends. National data w ere corrected to ensure comparability  
(date of collection a n d  updating of statistics) a n d  reliability, particularly  
w h ere data w ere not available at the level required for certain co m p o n en ts of  
the indicator.
During the examination of the proposed machinery divergent view s w ere  
expressed in the Council o n  the validity of the statistical bases a n d  
the adequacy of the indicators.
O n  adopting the instruments concerning the tasks of the E uropean Social Fund,  
a n d  esoecially Article 7(3) of the Decision 83/516/EEC(****) w hich m a k e s  
certain provisions about the allocation of resources from  aregional ooint  
of view, the Council requested the C o m m issio n  "to continue its studies wit  
a  view to achieving reliable statistical machinery, taking account inter alia  
of the criterion of per capita G D P , a n d  to present suitable proposals o n  the  
subject before 1  July 1984 to enable the Council to act before  
3 1  D e c e m b e r 1984 (***).
Pending the develoom ent of a  n e w  m eth o d  of evaluating the priority regions  
for F u n d  assistance, the C o m m issio n  decided to d raw  u p  a  list of these  
regions for 1984 a n d  1935 o n  the basis of:
(*) Greenland, Greece, French O verseas Territories, Ireland,
Nezzi cgi orno, Northern Ireland.
(**) N U T S : Nomenclature of statistical territorial units.
(***) _ _ _ the remaining appropriations shall b e  concentrated^on operations
in
 respect of em ploym ent in other areas of high a n d  long-term  
u nem ploym ent and/or industrial a n d  sectoral restructuring.
(****) Decision 83/516/EEC o n  the tasks of the European Social F u n d ,
formally adopted o n  17 October 1983, O J  L  289, 22.10.83, p a g e  38.

2.-
- the List, d raw n  u p  in 1983, of priority regions for F u n d  assistance  
in respect of youth unem ploym ent ;
- areas in receipt of national aid to prom ote regional econom ic  
developm ent in accordance with Article 9 2  of the Treaty a n d  
eligible for E R D F  assistance (quota section) ;
- certain other regions added d u e to their econom ic situation,  
particularly E R D F  non-quota regions.
T h e  C o m m issio n  h a s  in the m eantim e continued its studies and, in close  
collaboration with the M e m b e r States' statisticians, h a s  draw n u p  a  
m eth o d  for calculating indicators w hich m a k e s  it possible to ensure  
comparability betw een figures for C o m m u n ity countries a n d  update the  
statistics to reflect the recent position.
I. STA TISTIC A L M E T H O D S  U S E D  F O R  C A L C U L A T IN G  IN D IC A T O R S
A . U N E M P L O Y M E N T
1. National u nem ploym ent rates
1.1. W ith respect to the various categories of unem ployed, the
figures u sed  are those established b y  the Labour Force S am p le  
Survey (LFSS ) 1983 updated, w here necessary, in line with  
changes in the n u m b e r of registered unem ployed. F o u r categories  
are distinguished :  m e n  2 5  years, w o m e n  - * = r  2 5  years,
m e n  2 5  years a n d  w o m e n  ^  2 5  years ; totals are
obtained by addition of the four categories.
1.2. T h e  size of the w o rk force for the four categories (see 1.1.)  
in d raw n from  the L F S S  1983.
1.3. U n em p lo ym en t rates for each category are obtained b y  relating  
the n u m b e r of unem ployed (1.1.) to the size of the w o rk  
force (1.2.).
2. U n em p lo ym en t rates at regional level (N U T S  II)
2.1. T h e total n u m b e r of jobless (1.1.) for the various categories
is divided following the N U T S  II regional breakdow n of registered  
unem ployed (1).
2.2. T h e  size of the labour force for the four categories at N U T S  II  
level is taken from  the L F S S  1983.
2.3. T h e  u nem ploym ent rates for each category in the N U T S  II regions  
are obtained b y relating the n u m b e r of unem ployed (2.1.) to  
the size of the labour force (2.2.).
(*) T h e  figures for Italy are derived from  the "Inchiesta sulle forze di
lavoro (Labour Force Survey). These statistics s h o w  greater consistency  
over time - since they are compiled quarterly b y  category a n d  b y  region -  
than the statistics o n  registered unem ployed persons, w hich tend to vary  
in line with regional legislation (e.g. L a w  N ° 140 of 18 April 1 9 8 1  
solely concerns the C am p an ia an d  Basilicata regions).

3.-
3. U n em p lo ym en t rates at regional subdivision Level (N U T S  III)
3.1. T h e  estimates for the various categories of unem ployed b y  region  
(N U T S  II level) (2.1.) are divided following the subregional  
breakdow n (N U T S  III level) for the categories of registered  
unem ployed (*).
3.2. T h e  total labour force for each category at N U T S  II level (2.2.)  
shall b e  broken d o w n  at N U T S  III level o n  the basis of labour force  
estimates to b e  supplied b y  the M e m b e r States at this (subregional)  
level (autum n 1984).
3.3. T h e  u nem ploym ent rates at subregional level (N U T S  III) shall b e  
obtained for each category b y  relating the n u m b e r of u nem ployed  
(3.1.) to the total labour force (3.2.). Labour force estimates  
at level N U T S  III cannot at this juncture b e  m a d e  in the case of  
Belgium  (in the absence of results from  the population census)  
a n d  unem ploym ent rates are only available at level N U T S  II.
B . G R O S S  D O M E S T IC  P R O D U C T  (G D P )
1. A t national level
E a c h  year, within nine m o n th s of the e n d  of the reference year, G D P  
data are d raw n u p  b y  the departments responsible in the M e m b e r States  
in accordance with the concepts of the European S ystem  of Integrated  
E co n o m ic A ccounts (ESA). T h e  data for 1983 should therefore b e  
await able before the en d  of 1984. _ _ ___
2.
 A t regional level (N U T S  II)
National G D P  is broken d o w n  b y region o n  the basis of the m o s t recent  
data o n  the regional distribution of gross value ad d ed  at m arket prices.  
Regional data o n  value ad d ed  for 1 9 8 1  should therefore b e  available in  
the second half of 1984 ; they are u sed  o n  the generally accepted  
assum ption that regional structures are relatively stable in the short
term.
3. A t subregional level (N U T S  III)
T h e above-mentioned regional G D P  is broken d o w n  at subregional level  
(N U T S  III) o n  the basis of the m o s t recent G D P  indicators established  
at N U T S  II I level b y  the departments responsible in the M e m b e r States.  
These indicators are available for 1979, 1980 or 1 9 8 1  depending o n  the  
M e m b e r State ; their u s e  is likewise based o n  the assum ption that regional  
structures will b e  relatively stable in the short term.
However, certain c o m m e n ts  should b e  m a d e  concerning G D P  indicators at  
N U T S  III level :
- France :  these indicators are the product of a  feasibility study  
entrusted to IN S E E  (**) b y  E U R O S T A T  a n d  are only available in the
form  of ranges ;
(*) S e e  (*) p ag e 2.
(**) institut national d e  la statistique et des études économ iques.

4.-
- Italy :  the indicators are established b y the Italian U nion of C h a m b e rs  
of C o m m e rc e  ;
- Belgium  :  there are n o  G D P  indicators at N U T S  II I level.
C . E V A L U A T IO N  O F  T H E  M E T H O D  U S E D  F O R  C A L C U L A T IN G  IN D IC A T O R S
1. in the case of u nem ploym ent,, the point of departure of the m eth o d  u sed  for  
indicators is the statistical data m o s t likely to ensure comparability  
betw een the M e m b e r States :  in other words, data provided b y C o m m u n ity  
labour force surveys.
T h e basis for com parison will b e  provided b y  the 1983 survey carried out  
in the M e m b e r States in line with the definitions of "unem ploym ent" a n d  
"working population" set out in the international recom m endations of the  
thirteenth International Conference of Labour Statisticians organized b y  
the ILO  (*) in October 1982.
T h e  unem ployed are defined as persons without em ploym ent, seeking  
paid em ploym ent a n d  immediately available for s u c h  em ploym ent.
Using this broader concept a  m o re  objective appreciation of the unem ployed c a n  
b e  obtained, in particular as regards job seekers from  the category formerly  
classified a s  "non-active". Stricter monitoring to determine whether  
registered job-seekers are actively seeking w o rd  a n d  available for it m a y  
produce slightly lower totals for all the M e m b e r States than in previous  
surveys.
1.1. In the statisticians' view, at the present time it is impossible to  
include co m p o nents to take account of under-em ploym ent or other  
form s of precarious em ploym ent in calculating the unem ploym ent  
indicators. Definitions of these p h e n o m e n a  an d  the collection of  
the related data are still inadequate, a n d  even the international  
recom m endations are vague o n  this subject.
1.2. T h e  m eth o d  for calculating indicators will b e  applied to the results  
of the 1983 survey, to b e  available in the au tu m n  of 1984, the results  
of the 1984 survey already carried out o n  the spot in m o s t countries,  
a n d  the results of the 1985 survey for w hich a  draft regulation will  
b e  submitted to the Council in Ju n e 1984.
T h e  proposed m etho d  also provides for updating in April an d  October  
each year if it proves necessary.
1.3. T h e m eth o d  Tor calculating indicators provides for a  regional breakdow n  
of the national data in line with regional structures a n d  is based o n  
the national data considered the m o s t reliable a s  regards unem ploym ent.
This procedure h as the advantage of providing coherent estimates for  
level II a n d  II I regions while eliminating doubts o n  the reliability  
of certain statistics obtained in regions with lo w  population densities.
(*) International Labour Office

5.-
1.4. U n em p lo ym en t is evaluated seoarately for each of four categories
of unem ployed: m e n  under 2 5  years, w o m e n  under 2 5  years, m e n  over
2 5  years a n d  w o m e n  over 2 5  years. A  better grasp of youth  
u nem ploym ent is thus possible.
1.5. "Long-term unem ploym ent" w a s  eliminated from  the calculation of  
the u nem p lo ym ent indicators d u e to the lack of reliable statistics.  
T h e  statisticians pointed out that existing statistics are by­
products of administrative statistics com piled according to different  
rules ; they are not com parable betw een countries a n d  som etim es
not even consistent over time.
1.6. Areas undergoing industrial a n d  sectoral restructuring.
There are basically four sectors of restructuring at C o m m u n ity  
level :  textiles, shipbuilding, steel a n d  coal. H arm onised  
em p lo ym en t data c a n  at present b e obtained for level II in  
respect of the textile, steel a n d  coal sectors, but not of that  
of shipbuilding, for w hich the data are included in a  m u c h  bigger  
grouping concerning the building of transport equipm ent.
Moreover, the data for the four sectors are not available for  
level II I.
2. T h e  regional distribution of gross dom estic product in 1982 or 1983 is  
affected in tw o  stages (at level I or II o n  the basis of the 1 9 8 1  regional  
structures a n d  at level II I o n  the basis of the m o s t recent - although
in s o m e  cases not s o  recent - sub-regional structures) ensuring consis­
tency betw een the estimates at N U T S  II a n d  N U T S  III levels a n d  m aking it  
possible to take account of the m o s t recent available data at national,  
regional or sub-regional level.
3. T h e proposed m etho d s for calculating indicators will also b e  u sed  for  
other C o m m issio n  work. They h ave already b een  u sed  at level II to
draw  u p  the S eco n d  Periodic Report o n  the social a n d  eco n o m ic developm ent  
of the regions of the C om m unity.
II. T H E  S TA TIS TIC A L M A C H IN E R Y
1. General rem arks
1.1. T h e  m achinery consists of determining for each area of the C o m m u n ity  
at level III a n  indicator (k n o w n  a s  IZ) based o n  data in respect of  
the area's u nem p lo ym ent a n d  G D P  per capita. F r o m
this calculation is d raw n  the basis for identifying priority areas.  
T h e list of these areas will b e  d raw n u p  every year with the  
"Guidelines for the M a n a g e m e n t of the European Social Fund", i.e.  
before 1  M a y  for application as from  1  January following.

6. -
Greenland, Greece, the Frehch Overseas Departments, Ireland,  
the Mezziogiorno a n d  Northern Ireland are not included in this  
exercise, since their econom ic a n d  social features h ave earned  
th em  a  privileged status.
1.2. T h e  data is in respect of unem ploym ent but also of G D P  per head.  
Although the European Social F u n d  aim s to give a  particular  
importance to unem ploym ent, the capacity of each area for dealing  
with its econom ic problem s m u s t also b e  taken into account.
1.3. T h e  reasons set out in paragraphs I.C.1.5. a n d  I.C.1.6. concerning  
the reliability of data o n  "long-term unem ploym ent" a n d  
"em ploym ent in areas undergoing industrial a n d  sectoral  
restructuring" h ave m ean t that this type of data could not b e  
u sed  for the purpose of the statistical machinery.
A s  regards long-term unem ploym ent, the C o m m issio n  regrets that,  
despite Council agreem ent o n  the importance to b e  given to this  
factor, the persisting divergences betw een M e m b e r States a s  
regards the definition of this type of unem ploym ent m a k e  it  
impossible to take account of long-term unem ploym ent in the  
statistical machinery at this stage. T h e  C o m m issio n  intends to  
m a k e  a  contribution to resolving the debate o n  this problem  in  
the context of its forthcoming com m unication concerning long-term  
unem ploym ent. In any event, the M an ag em e n t Guidelines will m a k e  
provision for priority to b e  given, a s  at present, to actions  
w hich are designed to c o m b at long-term unem ploym ent.
A s  regards areas of industrial an d  sectoral restructuring,  
priority will b e  given to those areas w hich benefit from  the  
intervention of the Regional Developm ent F u n d  whether in the  
context of specific "non-quota" actions o n  the basis of the  
regulation currently in force, or in the fram ework of the n e w  
regulation, together with those areas w hich are E C S C  priority  
reconversion areas (under Article 56). This will in effect  
represent a  continuation of the approach already adopted in  
the fram ework of the current Guidelines for the m an a g e m e n t of  
the Social F u n d .
2. Choice of statistical level
T h e  harm onised data are usable at N U T S  level III, both for  
unem ploym ent and for per capita gross dom estic oroduct.
H ow ever, in the case of France a n d  Italy, available data o n  gross  
dom estic product at level II I w ould only b e  u sed with the agreem ent  
of the M e m b e r States concerned for reasons set out in paragraph  
I.B.3. In the case of Belgium, it h a s  to b e  accepted that only  
data at N U T S  level II ca n  b e  used (as regards G D P  a s  well a s  
unem ploym ent rates) given the absence of data at N U T S  level III.

7.-
3. Weighting of each c o m p o n e n t in the obtaining of the area indicator
3.1. U n em p lo ym en t rates b y  area for y o u n g  people a n d  adults.
Article 7(1) of Decision 83/516/EEC lays d o w n  that in an y o n e  year,  
F u n d  assistance allocated to y o u n g  people m u s t not b e  low er than  
7 5 %  of total available appropriations, a n d  assistance in respect  
of specific projects m u s t not b e  higher than 5 %  of this figure.
This leaves about 2 0 %  of the annual appropriations available for  
projects for adults.
How ever, appropriations for specific projects are themselves  
divided betw een operations for y o u n g  people a n d  adults in a  pro­
portion w hich should not differ markedly from  that applied to the  
European Social F u n d  budget as a  w hole (about 7 5 %  a n d  20% ). F ro m  
this it m a y  b e  deduced that the bulk of the appropriations are  
distributed betw een y o u n g  people a n d  adults in a  ration of about  
8 0 %  to 2 0 % .
3.2. Weighting of unem ploym ent an d  gross dom estic product per capita  
per area.
In the obtaining of the area indicator, the C o m m issio n  proposes  
the following weighting: 7 0 %  for unem ploym ent a n d  3 0 %  for gross
dom estic product per capita.
4. Proposed m achinery
T h e  m eth o d  involves, first, the selection of a n  u nem p lo ym ent indicator  
in each level III region using 8 0 %  of the youth unem ploym ent indicator  
(base 100 ■  C o m m u n ity  average) (*) a n d  2 0 %  of the adult u n em p lo ym en t  
indicator (base 100 - C o m m u n ity average) (*).
A  per capita gross dom estic product indicator for each level III region  
is then determined (index 100 - C o m m u n ity  average) (*).
T h e  proposed formula for the indicator of the zo n e (IZ) is a s  follows:
IZ - 7 0 %  (0.80 Ij +  0.20 la) +  3 0 %
Ip
Ij - index of youth u nem p lo ym ent  
la - index of adult u nem p lo ym ent  
Ip - index of per capita gross dom estic product
Note: T h e  gross dom estic product index m u s t b e  inverted (i.e. m u s t
form  the denominator) to m a k e  it operate in the s a m e  direction  
a s  the unem ploym ent index.
(*) This average takes n o  account of the data for the six absolute  
priority regions.

8.-
5. Establishing a n  area's priority status
A n  indicator is thus given to each of the level III areas, w hich  
can  then b e  listed in descending order. This list will serve a s  
a  basis for identifying priority areas for F u n d  assistance.
Priority w ould b e  accorded b y  fixing a  threshold w hich c a n  b e  
adjusted in the light of F u n d  m an a g e m e n t policy.
T h e  C o m m issio n  is convinced that greater geographical concentration  
should b e  aim ed at than is the case at present, w hereby 63.6% of  
the working population of the C o m m u n ity is situated in a  priority  
region (of w hich 11.3%  in absolute priority regions).
In addition, the u se of a  threshold involves a  m u c h  needed element  
of flexibility in the m an ag em en t of the European Social F u n d ,  
enabling account to b e  taken of financial conditions a n d  conditions  
for priority other than regional criteria; it c a n  also serve to  
limit, a s  far as possible, the application of the reduction  
m eth o d  in respect of the am o u n ts of assistance granted.
T h e  unem ploym ent indicators (see I.A.3.2.) a n d  gross dom estic  
product indicators (see I.B.2.) at level III are not yet available.  
For this reason the list of areas in descending order of priority  
is not annexed to this paper.
Conclusion:
T h e  C o m m issio n  h a s  presented the principles w hich w ould enable  
priority areas to b e  classified according to objective statistical  
data w hich will b e  available in a u tu m n  1984. T h e  C o m m issio n  
considers this data corresponds a s  far a s  possible to the criteria  
requested b y  the Council w h e n  adopting the Decision o n  the tasks  
of the European Social F u n d . It h a s  outlined the approach w hich  
it considers should b e  used in determining geographical priorities  
for the forthcoming Guidelines for the m an a g e m e n t of the F u n d .
O n c e  the European Parliament h a s  delivered its opinion, the Council  
is invited to take a  decision before 3 1  D e cem b er 1984 in accordance  
with the declarations entered in the minutes annexed to Decision  
83/516/EEC a n d  to adopt the conclusions reached b y  the C om m ission.