ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)270
Vol.1980/0102

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COMMISSION
OFTHE
EUROPEAN COMMUNITIESCOM(80)270 final
Brussels,21stMay1980
FOROFFICIAL USEONLY
GeneralSecretariat
REQUEST FORTHE GRANT OFAGLOBAL LOAN ,PURSUANT
TOARTICLE 562a)OFTHEECSC TREATY ,ONBEHALF OF
INVESTMENTS ININDUSTRIAL AND SERVICE ACTIVITIES
INTHE RHONE-ALPES REGION :
"SOCIETE DEDEVELOPPEMENT REGIONAL DUSUD-EST " (FRANCE )
.(Communication from the Commission tothe Council )
COM(80)270 final

COMMUNICATION TOTHECOUNCIL
Subject:Requestforthegrantofagloballoan,pursuanttoArticle562a)
oftheECSCTreaty,onbehalfofinvestments inindustrial and
serviceactivitiesintheRhone-Alp^Ss-region:Soci6tedeDeveloppe-
mentRegionalduSud-Est(France),
:SociétédeDéveloppement RégionalduSud-Est
:Variousconcerns
:Creatingandextendingsmallandmedium
sizeconcerns
:Rhone-Alpes
:FF100millionminimum(+17.10MEUA)
:FF50million(+8.55MEUA)
:3%pointsannuallyforthefirstfiveyears
on8.55MEUA
:500jobsminimum
II.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
ThedistrictsofSaint-Etienne andMontbrison haveanoverallpopulationof
581.225andaworkingwage-edrning populationof189.685.
ThedepartmentoftheLoiretakenasawhole,(leavingasideArdechewhich
haslittleindustry)hasthehighestlevelofunemployment intheregion
Rhone-Alpes withmorethan10%.
Coalmininghasensuredpastprosperityoftheregion.Theproblemsraised
byconcertingminingactivityarerelatedtotheworkersconcerned.In1954,
17.900wage-earners wereemployedintheminingbasin,lesHouilleres,and
therearenowfewerthan900.
Moreover,workersinthesteelindustryin1975weresome9.700andwere
employedmainlybyCreusot-Loire initsChateauneuf,FirminySaint-Etienne
factories;theFuransteel,thefoundriesandelectricalsteelworksatFeurs.
Since1962,thisbranchofactivityhaslost20%ofwage-earners .TheCreusot-
LoireMarrelfactoryemploying1.465hashadtolayoff728.TheFuransteel
workshaveannouncedtheirclosureandthiswillrender240redundant.I.BASICINFORMATION
Applicant
Beneficiaries
Project
Location
Globalinvestment amount
Globalloanrequested
Interestrebate
Jobscreated
ioneioddress:RuedeloLoi200,B-1040Brussels-Téléphoné350040-358040-Télégraphieoddress:«COMEURBrussels»-
Telex:.COMEURBRU 21877.

OntheMateysideplateau,(Isere)thecoalmines,andintheSavoyvalleys,
thesteelworks,formingtheonlyindustrialactivitiesintheirrespective
areas,haveentirelyclosedorhavereducedtheirworkforceconsiderably .
Lastly,theBlanzycoalminesintheneighbouring regionwillhavetobe
closedsoon.
III.THEINTERMEDIARY GROUP
TheS.D.R.oftheSouthEast,aregionalprivatefinancialinstitution created
in1957undertheauspicesofthepublicauthorities inconformitywiththe
decreeof30June1955,adopted5October1966,fixingthestatute(Articles
ofAssociation )andaimsofregionaldevelopment companies.
TheautorisedcapitaloftheSouthEastregionaldevelopment companyisFF40
million;Thebalancesheettotalat31December1978wasmorethanFF1.200
miIlion., -
TotallongtermloansissuedbytheS.D.R.oftheSouthEastoutofborrowed
resources wasFF160millionin1978.
TheprincipaldetailedrulesgoverningS.D.R.activityare:
-Measuresderivedfromownfunds
Tadate,theS.D.R.hasparticipated insome80minoritycapitalshareholdings
representing morethanFF20.000.000 .-
-Longtermloans
.Thereare15yearloansvestedinamutualguaranteefundat4%interest.
OutgoingstddatearesomeFF1.000millionofwhichasubstantial proportion
areusedforleasingcontractstakenoutthroughasubsidiary,BastimapSicomi.
-Mediumtermloans ;
.TheS.D.R.considersandguaranteespartially-inconjunction withtheCaisse
■nationaledesmarchesdeI'Etat(statepubliccontracts)-.mediumtermloans
financedbybanks.OutgoingsstandatrathermorethanFF160.000.000 .
-Ancillaryactivities
TheS.D.R.isashareholder inseveralcompaniesforfinancing newprojects,
forprojectsofvocationalrestructuring ,foraddingtoownfundsofaverage
size,forseekingbusinesspartners,forgeneraladviceandadviceon
recruitment .
IV.THEGLOBALLOAN
TheamounttobemadeavailabletotheSouthEastregionaldevelopment company
isFF50.000.000tocreateatleast500jobs.
Thisloanwillbemadeavailablebyinstalments andasandwhenapprovalis
giventosubsidiary loans.Theintermediary companywillsubmiteachsubsidiary
loanforapprovalbytheCommission.

-3-
Thedecisiononsubsidiary Loanswillbetakeninconformitywiththeaims
andcriteriapublishedby.theCommission (O.J.No.C178/2of27July1977
andO.J.No.C82/8of29March1979)takingaccountinparticularofthe
numberofjobscreatedandreservedforformerECSCworkersinrelationtothe
sizeoftheloancontempleted andtheamounttobeinvestedinfixedcapital.
Therateofinterest,applicabletoeachinstalmentofthegloballoan,will
applywithinterestrebatetosubsidiary loans.
Thisgloballoan,validforthreeyears,willcontributetothefinancial
requirements ofsmallandmediumsizeconcerns,whichfrequently havefewer
possibilities ofaccesstocapitalmarketsthanlargerconcernsandwhich,
generally,investlessbyjobcreatedthanlargerconcerns.
Theregionaldevelopment companywillreporteverysixmonthstotheCommission
ontheusetowhichthegloballoanhasbeenput;itwillreportannuallyon
there-emplyment offormerECSCworkersinindustrial concernsfinancedbythe
globalloan.
V. .IMPACTOFTHELOANONTHERE-EMPLOYMENT OFWORKERS
Itisforecastthatindividual aidedprojectswillcreate500newjobsatleast
forformerECSCworkers.Itisimportantthatinvestments beassistedoutside
ECSCsectorsintheareasabovementioned,inparticular throughsmalland
mediumsizeconcerns.Shouldthepresentdecisionproveinsufficient ,furtheri
instalments couldbeenvisaged.
VI.CONCLUSIONS
a)TheCommission considersthattherequestcomplieswiththeconditions
>ofArticle56.2a)oftheECSCTreaty.Inconsequence,ithasauthorised
thegranttotheSocietedeD6veloppement RegionalduSud-Estofa
globalloanofFF50million(+8.55MEUA)orofanequivalent amount.
Theratesofinterestwillbesubjecttoarebateof256.500EUAannually
forthefirstfiveyearsfollowingpaymentorpaymentsoftheloan.
,_<N• •••
b)TheCommission askstheCounciltogiveitsassenttotheforegoing
decision.