ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)348
Vol.1982/0124

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COΜ(82)348 final
Brussels .17th June 1982
ρ.2 ^
\ ;
\
COMMISSION COMMUNICATION TOTHE COUNCIL
ONTHE GREEK GOVERNMENT MEMORANDUM OF19MARCH 1982
COM (82)348 final

iw
1.On19March1982theGreekGovernmentsentthePresidentofthe
CouncilaMemorandumexplainingtheGreekGovernment *sposition
concerningGreece'srelationswiththeEuropeahCommunities .The
PresidentoftheCommissionalsoreceivedacopy*
2.TheEuropeanCouncilof29/30March1982tooknoteofadeclaration
bytheGreekPrimeMinisteronthesubject.Itagreedthatthe
CommissionshouldstudytheMemorandumandreporttotheCouncilonit.
3.AttheCouncilsessionon22/23March1982notewastakenofa
declaration bytheGreekMinisterMrVarfisontheMemorandumwhich
hadjustbeenpresented.TheCouncilaskedtheCommissiontoanalyse
itandsubmititsconclusions totheCounoilinduecourse.
4.TheGreekGovernmentisintendingtoraisethequestionattheEuropean
Councilon28/29June.
5.Thepresentcommunication representsinitialactiononthemandate
giventotheCommissionbytheCouncil*
6.TheCommissionhasexaminedtheMemorandumcarefullyandhascometo
theconclusions whichfollow*
7»TheCommissionisingeneralagreementwiththedescription ofthe
economicsituationgivenintheMemorandumandendorsestheviewthat
determinedactioniscalledfortodealwithit.
8.ThespecificnatureofCommunityMediterranean questionsisrecognized
bytheCommunity,notablyinconnectionwithworkonthe30May
Mandateandintheframework on-goingpreparationsforenlargement.

2
9.TheCommissionconsidersthatitwouldnot"beveryprofitableandcertainly -
contrarytothepriorityrequirement ,determinedaction,toenterintodis­
cussionontheMemorandum'sjudgementsonthecontentoftheActof
Accessionandtheeffectsofmembership ontheGreekeconomy.It
shouldhoweverbenotedthat:
–thereareunderdeveloped aspectsoftheGreekeconomyfor.whichthe
Communitycannotbeheldresponsible ;
–allthemembercountrieshave,todifferentdegrees,tocope
withthedifficulties oftheeconomiccrisis;
–theCommunitycannotbesolelyresponsibleforthedevelopmentofa
membercountry.Itsroleistobackupnationalefforts#
10.TheCommissionfeltthatitwouldbemoreconstructive totakethe
GreekGovernment'sdemandsandtosee,withtheutmostopen-mindedness ,
whatconcreteanswerscouldbefoundforthemattersraised.
11.ItshouldbenotedthatintheMemorandum theGreekGovernmentsaid
itwasawaitingimmediateactionintwofields*Ithassincereceived
satisfaction here:
–thedecisionsof18May.1982oncommonpricesandrelatedmeasures
haveprovidedtheanswertothequestionofsupportpricesforGreek
farmersthroughtheeffectsacertainnumberofthedecisionswill
have(quitesubstantialriseinpricesinECU,devaluationofthe
representative rateJTorthedrachma,accelerated alignmentofthe
pricesofcertainagricultural productjonthecommonprices,
increasesabovetheCommunityaverageforcertainMediterranean
products,etc.);
–themorefavourableconditionsandratesofrefundappliedinrespect
ofcertainMediterranean regionsaretobeextendedbytheendof
1982,.tosimilarareasinGreece*TheCommissionhaspromisedto
putforwardproposalsforthisby31July1982,
12.TheCommissionhasundertakenaninitialconsideration oftheGreekdemands
(Annex)andforeachofthemhastriedtofindananswercompatiblewith
existingconstraints *
13.Foreachofthedemandsitisstatedi
–whetherthedemandsarealreadycoveredbyexistingCommunityprovisions *
IliaquestionisexcisedwhetherGreeceisabletoderivefullbenefit

fromthem,bearinginaund-hat1981waseminitial,launchingyear.
Whereappropt-iate ,measures,whetherGreekorCommunity,toimprove
thesituationareindicated *Thispointconcernstheadministration
ofCommunityprovisions,"brutdoesnotruleoutadjustmentswhere
necessary ;
-whetherproposalsalreadymadewithadjustmentwhereneededcover
Greekdemands,
-whetherthemeasuresinquestionarealreadycontainedinproposals
envisagedbytheCommission.Thispointconcernsinparticularthefutur
Mediterranean programmeswhichtheCommissionistoputbeforethe
Councilbeforetheendof1982.
Howevergreatthepoliticalresolvemaybetocontributetosolvingthe
realproblemsofoneoftheCommunity'sMemberStates,presentconstraints
cannotbedisregarded.However,theirexistencedoesnotexcludeeither
imaginationinthesearchforasolution,ordetermination inits
application,onthecontrary.
Constraints ;legalandpolicyframework
TheCommunitycancontributetothedevelopmentofGreece*seconomyand
thesolutionofGreece'sspecificproblems,notbyderogatingfromthe
Treatiesbutthroughtheimplementation ofitspolicies.TheCommission
notesthatmostoftheGreekdemandscomewithin'thescopeofthe
Community^normaldecision-making processes.ProtocolVIItotheActof
AccessionlaysdowntheprinciplethattheInstitutions aretodoallthey
canwithintheframeworkoftheexistinginstrumenttoprovideforGreece*!
specialsituation.
TheCommunityisinnowaylackinginmeanstoallowforthespecific
natureofagivensituation.
TheprinoiplethatCommunitylawisonedoesnotentailitsbeing
uniformeverywhere.Thismeansthatessentiallydifferentsituations
mustbetreatedinaccordancewiththeirindividualcharacteristics .
Naturally,nomaamirecanbeintroducedthatwouldbeoontrarytothe
fundamentalrulesoftheTreaty,particularlythefourfreedoms
rightsthatlieatiheheartofit,,Similarly,therecanbeno
reductionof&la-rolofIfenalisaticja iategrationoxiceattained.

4
18.Inconsidering whatarrangements could"bemade,accountmust"betaken
oftheCommunity'spolicyconstraints ,includingbudgetaryconstraints.
Inanycasethemerediscussionofactionthatdidnotallowfor
suchconstraints wouldliecourtingfailure,andwould,moreover,be
asourceofcomplications anddifficulties .
19«SomeoftheGreekdamands,evenwheretheyhavespecifically Greek
connotations ,comevithinthescopeoftheCommunity *sgeneralconcern
regardingitsMediterranean regions.Inconnectionwiththis,the
Commission'sintentiontoproposeCommunityprogrammestotheCouncil
beforetheendof1982tospeedupdevelopmentintheMediterranean
regionsoftheCommunitydeservesveryspecialattention.Bothfor
thesubstanceofthematterandtheproceduretobefollowed,this
istheframeworkinwhichsolutionsshouldbesoughtforthispart
oftheGreekdemands,whilebearinginmindtheCommunity'senlarge­
mentprospects.
20.TheCommunity'sbudgetinterventions shouldberegardedasbacking-up
policiesandnotasanendinthemselves.TheCommission'sgeneral
approachwillthereforebetopreparebudgetaryactionwhere,andonly
where,suchactionwillassistaCommuniiypolicy.Thathavingbeen
said,Greece'ssituationissuchthatitwillprobablywarrantreceiving
specialattention.
21.TheGreekMemorandumposesthegeneralproblemoftheeconomicintegration
ofaMemberStateintotheCommunity.TheGreekGovernmentmentionsthe
adjustmentsexpectedinCommunitypolicies–whilereservingforitself
fullfreedomofactioninrespeotofthe^y^a-rplantobebroughtout
attheendoftheyear.Butthecountry'sintegrationintheCommunity–
aprimeobjectiveasbothsidesrecognize–wouldnotbepossibleifin
thechoiceofitsprioritiestheGreekGovernmentdidnottakeCommunity
aimsandpoliciesintoacoount.Experiencehasshownthattheextent
towhichtheCommunitycanhelpacountryisdependentonthecompatibility
ofthepoliciespursuedbythereoipientoouirfcrywithCommunityaotion,
evenonitsabilitytoderivemaximumbenefitfromsuchaotion.

22.The Commission ispleased tosee that theGreek GoveiTaient isdrawing upa
5–.year plan foreconomic development andtherestructuring oftheGreek
economy .Thefive year plan enables Community actions tobeincorporated
innational development efforts ,Itfollows -that contacts between the
Greek Government andtheCommission during preparation oftheplan areof
fundamental importance toensure that Community action andGreece 'seconomic
policy areinharmony .
23.Inthesame spirit theCommission isoftheopinion that ,provided
each makes thenecessary effort }avalid answer canbegiven tothe
questions posed bytheGreek Government .
Action requested oftheCouncil
24.Tk®Commission asks theCouncil
-torecognize ,astheGreek Government requests ,theneed totackle the
particular problems facing Greece andtotake the® into account inthe
framework established bytheCommission ;
-tonote that the Commission will take the decisions that fall within
itsfield ofcompetence ;
-toagree toactwith allduespeed ontheproposals already presented
bytheCommission andtowhich attention isdrawn inthepresent
communication aswell asanthose that theCommission istoprestent
within specified time limits . • .
25.TheCouncil expects Greece tostay inclose contact with the
Commission inpreparing itseconomic policy ,particularly its5~y&ar
development plan
26.TheCounoil asks theCommission toreport bytheendoftheyear onthe
aotion taken onits corasromicat ionand onthis Council decision .

ANNEX
GREEKDEMANDS
ANALYSIS ANDACTIONTOBETAKEN
RULESONCOMPETITION (§9)
Greekdemand Remarks
Principleofaderogation
fromrulesoncompetition
(g9(2)(b))...totakeinto
accounttheobjectivesof
economicexpansionandthe
raisingofthestandardof
livingofthepopulation
2."Grantingofdevelopment
incentives"(§9(2)(b))
3."Provisional andregulated
protectionofnewlycreated
industries"(§9(2)(b))
4."Grantingofexportaidfox
smallandmedium-sized 1
undertakings"(g9(2)(b))
5."Exemptionfromproduction
limits"(§9(2)(b))Althoughtheprincipleofaderogation
(formulatedinsuchgeneraltermsasthese)is
excludedbytheTreaties,theruleson
competition (EECArt.92-94,
elaboratedforregionalaidsinthe1978
coordination principles)allowtheCommission
totakeGreekparticularities intoaccount
whenconsideringaidprojects,inaccordance
withProtocolNo7totheActofAccession.
Inapplyingderogations providedforintheEEC
Treatyfromthegeneralprincipleprohibiting
aids,particularly thosespecifiedinArt.
92(3)(a)and(c)oftheEECTreaty,the
Commission takesintoconsideration thefeatures
peculiartothesituationofGreeceandits
industrywhenitassessesaidprojectssubmitted
toit.
Expressedinsuchgeneraltermsthedemandisnot
compatiblewiththeTreaty.Butwhenitcomes
toconsideraidprojectsorexistingaid
arrangements theCommissioncantakeGreece*s
economicsituationintoaccount,asstatedin
ProtocolNo7oftheActofAccession,provided
thegeneralprinciplesofaidcontainmentare
compliedwith.
Exportaidsareincompatible withthecommon
E?,rket.OntiieotherhandtheCommission has
alwaysbeanfavourablydisposedtowards
investmentaidsforsmallandmedium-sized
undertakings andtheirdevelopment .
Althoughthisdemand,asitstands,is
incompatible withCommunitylaw(ECSC:steel
quotaarrangements andDecision2320;EEC:aid
containmentfortextilesand5thshipbuilding
Directive),therulesaresufficientlyflexible
toallowfortheexceptionaldifficulties of
certainundertakings orregionsintheeconomy
ofaMemberState.

2
FINANCIAL INSTRUMENTS (S10-12)
Greckdemand
6."Thecriteriamustbereviewed
BOthatthewayinwhich
resourcesaregrantedandused
corresponds totheparticular
featuresofthesocial,economic
andadministrative situation
inGreece"(§10,1stindent)
7."Theresourcesavailablemast
beincreased"(g10,2ndindent)Remarks
(a)Communityactionalreadytakesthe
particularfeaturesofthesituationin
Greeceintoaccountinpart.Thisisthe
casefor;
–NCIII(adoptedinMarch1982,oneofthe
fieldseligiblebsi.igthedevelopmentof
Bmallandmedium-sizedundertakings );
–thepresentERDFnon-quotasection,for
whichtheCommissionistoputforward
implementing proposals.
(b)Otherproposalsalreadypresentedbythe
Commissionaretothesameeffect:
–reviewofERDF(COM(81)5^9final)(e.g.
byfinancingactiontoassistsmalland
medium-sized undertakings andcrafttrades);
–EAGGF:speedingupagricultural development
incertainregionsinGreece(COM(82)
72final);citrusfarming(COM(82)125
final),
(o)PresentCommissionthinkingontheMediter­raneanprogrammes*itistoproposebefore
theendoftheyearfollowsthesamelines.
(d)Greeceparticipatestoonlyaminorextentin
•theESF,traininginGreecenotbeingeligible,
largelybecauseitcomesunderthenormal
schoolsystem.TheCommissioniswillingtoI!
examinewithGreecehowitintendsits
trainingsystemstodevelop.Dependingwhati
prioritiesaredecidedonbyjointagreement,j,
theCommissionwouldthensee-ifGreece J
requestedthis–whetheranyspecial j:transitional measuresshouldbetaken(possible
whentheESFisreviewed)tohelpitspeedup
.thescheduledtransformation ofitsvocation
1trainingsystem.
Thisdemandprobablytiesinwiththe
Commission *sgeneralconcerntoseeageneral
increaseinFundresources.Inasmuchaswhat
isinquestionhereisinsufficient Greek
participation intheFunds,itshouldbe
notedthat:
(a)theincreasecouldcomeaboutnowthrough
theapplication ofthenon-quotasection
oftheERDFtoGreeceandprogressinthe
applicationoftheEAGGF,GuidanceSection;
(b)theCommissionproposalinconnectionwith'
thereviewoftheERDFprovidesforthe
quotasection'seffortstobeconcentrated onleast–favoured regions*!
,AllreferencestofutureintegratedMediterranean programmesinthiscommunication are
tothedocument"Mediterranean Programmes:LinesofAction"(COM(81)637final)*

3
AsfortheEAGGP,theadoptionoftheproposals
tospeedupagricultural developmentincertain
regionsofGreeceandcitrusfarmingwillincrease
Greece'sparticipation ;
(o)thedecisionson1982/83farmpricesinclude
acommitmenttoextendbeforetheendof1982the
morefavourableconditions andratesforthe
refundofsumsmadeavailablebytheEAGGPfor
structuralmeasurescurrentlyappliedinrespect
ofcertainMediterranean regionstosimilarareas
inGreece,TheCommissionhasundertakento
presentproposalsby31July1982,onwhichthe
Councilistoactbytheendoftheyear.
Mediterranean programmes :fortherecord.
8."TheactivitiesoftheFundsTheCommunity'sfinancialinstrumentsaretobe
mustbeco-ordinated coordinated moreorganicallyintheMediterranean
(§10,2ndindent) programmes.
"Participation inthefinancing
ofprojectsnustboconsiderably
inoreased(g10,3rdindent,1st
phrase)Thequestionisboundupwiththatofincreased
resources.Itshouldalsobeviewedinconjunction
withtheCommission 1sconcerntoobtainaneffect
ofquantitative andqualitativeadditionally .
(a)Greaterparticipation alreadyexistsin
certaincases:SocialFund;EAGGP:fishing,
aquaculture ;ERDF,non-quotaandquota
sections.
(b)Ithasbeenprovidedforinthefollowing
proposals:
–EAGGP:speedingupagricultural development ,
-ERDPreview,
(o)-Inthedecisionson1982/83farmprices
provisionismadeforextendingtocomparable
regionsofGreecethemorefavourable
intervention conditionsandratesalready
grantedbytheEAGGPforstructuralmeasures
incertainMediterranean regions(seeNo7)•
TheMediterranean programmesarealsoexpected
toprovideforhighlevelsofCommunity
participation .

1
10,"Expenditure onsocial
infrastructure mustbe
covered"(§10,3rd
indent,2ndphrase)
11."AnewFundmustbecreated
forthedevelopment ofthe
Mediterranean regionswith
itsownresources"
(g10,4thindent)
12."Theremust"begreaterscope
forfinancialresourcesto
beprocuredthroughtheNCI"
(g10,5*hindent)(a)Intervention toassistsocialinfrastructure
projectsislegallypossible(ERDF,EIB,NCI
andECSCincertaincases)The
Commissionwillconsideranyapplication
thatcomeswithintherulesinforce.
(b)ProvisioncouldbemadeintheMediterranean
programmesfortakingoverfinancial
responsibility forsocialinfrastructure
projects. ^
Thisquestionisbeingconsideredbythe
Commissioninconnection withworkonthe
integratedMediterranean programmes.There
couldbeachoicebetweentwoalternatives :
eithertosetupanewFundortoimprovethe
resources,adaptationandcoordination ofthe
presentinstruments .Thecreationofanadhoc
Fundwasrequestedalsointheparliamentary
resolutionof16February1^82(Pottering
report).
UnderNCIInoformalapplication wasmadeby
Greeceforaloan.TheCommission,together
withtheEIB-asthe"agent"-isexamining
thereasonsforthiswiththeGreekauthorities .
13.
14."Thefinancingofspecial
long-termprogrammesfor
theleast-favoured regions
ofGreece(islands,frontier
andmountainregions)"
(S11(1))
Particularattentiontobe
accordedtoGreece'sspecial
geographicalposition(no
landfrontierswiththe
Community,islands):transport
infrastructure problems
(811(2))Someofthedecisionsthathavebeentakenor
proposedaretothiseffect:thepossibilities
affordedbythedirectiveonmountainandhill
farming:less-favoured areas(75/268/EEC)
(alreadybeingimplemented),theimplementing
proposalstheCommissionisabouttomake
concerningthenon-quotasectionoftheERDF,the
proposalforspeedingupagricultural development
inGreece(COM(82)72final),whichthe
CommissionhasjustmadesothatGreececanbe
alignedonotherMediterranean regions.Butit
isparticularly whatisbeingplannedforthe
Mediterranean programmesthatcorrespondsquite
welltowhatGreeceisaskingfor.
TheCommissionrecognisesthatthereisa
specialproblemhere,whichitiswillingto
examinewiththeGreekauthorities.
(a)Atpresenttheonlypossibilities for
CommunityassistanceaxethroughtheERDF
(particularlyfortransportinfrastructure ).

(b)Theproposal foraregulation concerning
financial support forprojects ofCommunity
interest inthe field oftransport infra­
structure –putforward in1976 (COM (76)636
final andamended in1977 (COM (77)45&)and
inI98O (COM (80)58final )covers some of
Greece 'sspecific transport problems .It
provides inparticular that thecriteria for
selecting projects ofCommunity interest should
take regional effects into account .This
proposal hascome upagainst reservations
onthepart ofsome oftheMember States .
(c)Such action inthefield ofinfrastructure ,whose
effects will take some considerable time tobe
felt ,must beintegrated atCommunity level ,with
suitable measures for theoperation ofthetrans­
port market asregards both access tothemarket
(e.g. apportionment ofCommunity licences ,exten­
sion ofthe measures inthe First Directive
with regard tothefrontier -zone traffic ,
improvement ofroll-on/roll -offtransport chains ,
increased number oftransit licences for crossing
certain third countries ,etc.)andtransport
rates andconditions (e.g. ECSC through tariffs ,
application foraspecified period ofArt.80
ofEECTreaty ,etc.).
Athens and Thessaloniki to "be
eligible forCommunity
financing inorder toeata'bli -h
the infrastructure needed to
improve the qvvu.i+y of
decentralize industrial
activity totheprovinces ,etc ,
(S12)Under present Community legislation the
Community' sfinancial instruments apply inlaw
.toGreece aeawhole ,except forthequota ■
section ofth*FRP'F ,forwhich Athens isnot
■eligible ,being anarea excluded from national
adforregional purposes ,Athens would be,
however eligible forgrants from the nors-qUots .
section ofthe ERI>F . .
This situation isinkeeping with thespecific
aims ofthe various financial instruments and
particularly the ERIJF ,whose purpose isto :
contribute tothedecentralisation ofeconomic
activities andthecreation ofproductive jobs .
TheCommission iswilling ,naturally ,toexamine
with theGreek Government howtheCommunity' s
financial instruments canbest beused in
coordination fortheAthens area ,thediverse
purposes ofthevarious financial instruments
being respected ,provided Community intervention
does notcontribute toincreasing congestion
inthecapital twhose growth isdescribed in"■
thememorandum as"monstrous ". Inconnection
with this ,special attention could be.giveji
toreducing pollution inAthens itself .

6
AGRICULTURE AUDFISHERIES (S13)
Greek demand
16."Finance and technical
aid forcarrying out
major land improvement
projects (§13(2))Remarks
(a)TheEIBgrants loans inthis field .Greece
has nothowever asked forfinancing for
major land improvement projects .
(b)Themeasures proposed totheCouncil for
speeding upagricultural development in
certain regions ofGreece (COM (82)72final )
provide forfinancing forrural infrastructure
andland andforestry improvement which
could heused forthis type ofwork .
(c)Provision could hemade intheMediterranean
programmes formeasures along these lines .
17.Finance and technical aid
fordeveloping certain
seotors ,such asfishing ,
bymeans oftheefficient
exploitation ofGreek
lagoons (§13(2))
18.Finance and technical aid for
setting upandorganizing agri -
industrial complexes (§13(2))(a)Community fishery legislation ,already in
existence goes some waytowards meeting
theneeds oftheGreek fishery industry :
–1978 structural measures (Regulation (EEC)
1852/78);Greece qualifies fortheincreased
rate (Regulation (EEC)2992/81);
–1981 organization ofthemarket (Regulation
(EEC)3796/81).
Thefishery agreements with certain African
countries also benefit Greece .
(b)TheCommission hasmade proposals for
structural measures that should affect Greece :
development ofshipping andaquaculture ,
coordination ofresearch (COM (80)420final )-.
(c)Inconnection with theMediterranean
programmes theCommission will beconsidering
what further proposals could bemade to
develop fishing andaquaculture inthe
Mediterranean .
For the record :the Commission has decided to
have astudy carried outonthesituation of
Greek fisheries .
(a)Projects todevelop theagri-foodstuffs
industry areeligible forsupport from the
EAGGF and theERDF .Greater use could be
made byGreece oftheexisting instruments
(including thelending instruments ).
(b)Theproposals tobemade inconnection with
theMediterranean programmes will also cover
this field .

7
19.Financeandtechnical TheCommunityencouragestheformationof
aidfordeveloping producergroupsandassociations thereof-
cooperatives (g13(2)) formswhich,providedcertainconditionsarei
satisfiedandtherulesoncompetition
respected,canalsoincludecooperatives .
TheEAGGP,GuidanceSection,coversproducer
groups(Regulation(EEC)1360/78);alsofruitandvegetables(Regulation(EEC)1035/72)
cotton(Regulation (EEC)389/82),hops
(Regulation (EEC)1696/71),silkworms
(Regulation(EEC)707/76)andfisheries
(Regulation(EEC)3696/81).
20.Incomesupportforsmall AccordingtoCAPprinciplesfarmincomesare
farmers guaranteedorassistedbythefarmprices
Closingthegapbetween andrelatedmeasuresandbycertainstructural
increasedcommonprices measures. j
andtheinflationrate (a)Thedecisionson1982/83farmpriceswill
(§13(3)) enablethegapverylargelytobeclosed.
(b)Inconnectionwiththedecisionson
1982/83farmpricestheCounciilasked
theCommissiontogiveitsfiguresfor
farmincomesinGreeceasquicklyas
possibleand,inthelightofthose
figures,topresentspecificproposals
totheCouncilforresolvingwithall
duespeedanyproblemstheyhadfound.
Inthecommunication totheCouncilon
linesofactionfortheMediterranean
programmes(COM(81)637final),the ,
Commissionenvisagesthegrantingof
"directincomesupport"pendingan
improvementintheemploymentsituation
throughthedevelopiasntofother
activitiesandgreaterrationalization
inagriculture.19.Financeandtechnical
aidfordeveloping
cooperatives (g13(2))