m 
i* 1 
u COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC91) 121 final 
Brussels, 16 April 1991 
•il 
Pif 
i ' 
'3 k 
Vf 
m 
MB m 
mm 
m 
itl-. CONCLUSIONS OF THE REPORT 
in accordance with Article 25 of Regulation (EEC) No 4253/88 
EA6GF - GUIDANCE SECTION - 1989 
(presented by the Commission) 
vs. •'» 
^ 4 l*o -
CONCLUSIONS OF THE REPORT 
in accordance with Article 25 of Regulation (EEC) No 4253/88 
EAGGF - GUIDANCE SECTION - 1989 
This report relates to 1069, the first year of implementation of the reform 
of the structural Funds; it oonoerns a transitional year during vhioh the 
reform vas introduced. The measures Implemented are the continuation of 
those already existing, with the new programmes in the oourse of drafting, 
discussion or approval. Œne EAOGF Guidance Seotion contributes with the 
two other Funds towards measures Implemented in the regions covered by 
Objective 1 and in the areas oovered by Objective 6(b); it bears the full 
burden of financing general measures under Objective 6(a). 
The measures finanoed by the EA3GF Guidance Seotion differ by the method of 
contribution, i.e. they are either direot measures taking the form of 
financing of individual projects or indirect measures taking the form of 
reimbursement to the Member States of part of their expenditure. Since the 
reform of the Funds, EAOGF Guidance Section contributions for Objectives 1 
and 5(b) also follow the new procedures for the Oommunity support 
frameworks; the new methods of financial contribution have begun to be 
introduced in the framework of some operational programmes; this type of 
contribution will develop in the future. 
I. Analysis by objective 
Depending on the objectives, the type of work oarried out during 1989 
varied substantially. Under Objective 1, development plans presented for 
each region by the Member States were analysed, then the oorresponding 
Community support frameworks were drawn up and approved by the Commission; 
agriculture reoeives only part of the Ctammunity contribution; the bulk of 
the appropriations come from the Regional Development Fund. 
As regards areas oovered by Objective 5(b), work related mainly to the 
selection of areas for inclusion under that objective. As for 
Objective 5(a) measures, a certain number had to be re-examined to take 
account of the objectives of the reform of the structural Funds and the 
guidelines of the common agricultural policy. ïhis review resulted in a 
change in existing legislation and/or In a change in the oo-f inancing 
rates. 
- 2 -
Objective 1 regions 
As the regions were defined in Council Regulation (EEC) No 2052/68 of 
24 June 1988, the main task involved analysing the agricultural and rural 
aspects of the development plans presented by the Member States, 
negotiating with national authorities in the framework of partnership 
having regard to applications submitted and available appropriations and 
defining the agricultural and rural development aspects of the Oommunity 
support frameworks for each country ooncerned. 
The main aspects selected for total financing or for contributions from the 
EA3GF Guidance Seotion are as follows : 
- Improvement of competitiveness of farming; 
improvement of quality and marketing of agricultural products in line 
with market requirements; 
taking account of and protecting the environment; 
diversification of production; 
- rural development. 
The Oommunity support frameworks were adopted by the Commission on 
31 October 1989, with the exception of the CSF for Greece (adopted an 
30 March 1990). 
Total appropriations earmarked for the EAOGF Guidance Section for the 
period 1989-93 amount to ECU 6 427 minion, or 15% of the total 
appropriations earmarked for that objective (BŒJ 36 200 million). 
Objective 6(b) areas 
In 1989 the Member States presented their proposals for the list of areas 
to be included in the rural areas under Objective 6(b). Those proposals 
complied with the criteria laid, down in Article 4(1) of 
Regulation (EEC) No 4253/68 : 
high share of agricultural employment in total employment; 
low level of agricultural income, notably as expressed in terms of 
agricultural value added by agricultural work unit; 
low level of socic>-eoonomio development assessed on the basis of 
gross domestio product per inhabitant. 
The Commission approved the list of areas relating to Objective 6(b) on 
10 May 1989, taking into account the areas which also complied with one or 
more of the criteria set out in Artiole 4(2) of that Regulation. The areas 
seleoted cover 17% of the Commuhity area and 6% of the population. AH 
countries which are not included totally in regions relating to Objscstiv© 1 
have one or more areas classified in Objective 6(b) areas. 
The Member States submitted their development plans before 28 October 1989, 
with the exception of Belgium, which presented its plan on 
22 November 1039. In the framework of partnership, negotiations begm:. with 
the Member States; 58 plans were presented. 
On 20 December 1939, the Commission decided to apportion among the 
Member States BCa 2 493 million out of the total of ECU 2 795 xaillica 
earmarked for Objective 6(b). 
- 3 -
Objective 5(a) 
In the context of the implementation of Objective 6(a) concerning the 
adaptation of agricultural structures, the general structural measures were 
slightly adjusted. The main changes related to measures benefiting 
agricultural holdings, provisions on investments in the marketing and 
processing of agricultural produots and the oo~financing rates. 
For measures benefiting agricultural holdings provided for under 
Regulation (EEC) No 797/85, as amended by Regulation (EEC) No 3808/69, the 
main changes involved investment aids (extension to lTv»1"^e part-time 
farmers and widening of the category of eligible investments to i rainée 
tourism, craft trades, etc.); aids for the installation of young farmers 
(part-time farmers; increase in eligible maxima for aid for first 
installation); aids to less-favoured areas (adjustment of oonditions for 
granting of the compensatory allowance); aids to environmentally sensitive 
areas, etc. 
For aids for the processing and marketing of agricultural produots, a new 
regulation was proposed to the Council laying down new conditions and new 
methods of fiiiancing. The system of individual projeots is abandoned. 
Financing will henceforward take the form of aid to operational programmes 
or applications for global subsidies. Such aid applications must comply 
with the selection criteria adopted by the Commission after consulting the 
Member States and must be in line with the sectoral plans submitted by the 
Member States to the Commission, which will specify the priority 
intervention areas in a Community support framework. That regulation was 
adopted on 29 March 1990 by the Council, together with the one on forestry 
products (Regulations (EEC) Nos 866/90 and 867/90). 
lastly, the Community co-financing rates were adjusted to take account of 
Article 13 of Regulation (EEC) No 2052/88 on the reform of the structural 
Funds. 
II. Budget execution In 1909 
Total commitments amounted to ECCJ 1 462 million, including 
ECU 862.1 million for regions relatiig to Objective l1; BCD 616.2 million 
for abjeotive 6(a), ECU 26.8 minion for areas relating to Objective 8(b) 
and ECU 56.8 million for transitional measures. It should be stressed that 
the amounts under Objective 6(b) relate to regionalized measures only. 
This presentation differs from that for Objective 1 as all expenditure, 
including that resulting from general measures (Objective 5(a)'are i™?hidefl 
for the latter. 
The main recipient countries were Italy (ECU 263.6 million), Greece 
(ECU 235.3 million), Spain (ECU 203.9 million), France (ECU 179.8 million) 
and Portugal (ECU 179.4 million). 
1 Including expenditure under Objective 5(a) in those regions, 
- 4 -
As regards measures, the greater part of t&e appropriations was spent 
within the framework of Regulation (EEC) No 797/85 on improving the 
efficiency of agricultural structures; that Regulation involves numerous 
categories of expenditure in all Community regions. Hie most important are 
those for the compulsory allowance (Article 15). equalling 
BCU 282.7 million, investments in agricultural holdings (Article 4), 
equalling ECU 90.8 million, and young farmers (Article 7), equalling 
ECU 42.6 million. 
Aid granted in respeot of projects for the processing and marketing of 
agricultural and fishery produots amounted to ECU 361.6 mllion, including 
ECU 319.3 million for agricultural projects (Regulation (EEC) No 355/77). 
Among the most important regional measures, ECU 66.6 million was granted 
under Regulation (EEC) No 1976/82 on the acceleration of agricultural 
development in certain regions of Greece; ECU 65.8 million was granted 
under Regulation (EEC) No 3828/85 on a specific programme for the 
development of Portuguese agriculture; and ECU 63.6 million was granted 
under Regulation (EEC) No 1118/88 on a specifio measure to encourage the 
development of agriculture in certain regions of Spain. 
A last category of Important expenditure relates to premiums for the 
definitive abandonment of vine-growing areas, involving ECU 156.6 million. 
Lastly, it should be stressed that the first three operational programmes 
approved in 1989 by the Commission received aid amounting to 
ECU 12.8 million (in Greece : oombating phylloxera and conversion of 
aprioot trees; In Ireland : pollution control in farming). 

ISSN 0254-1475 
• it 
COM(91) 121 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-9M57-EN-C 
ISBN 92-77-71300-3 
PRICE 1 - 30 pages: 3.50 ECU per additional 10 pages: 135 ECU 
Office for Official Publications of the European Communities 
L-2985 Luxembourg