ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81)370
Vol.1981/0115

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenne etdelaCommunauté européenne del'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiés conformément àl'article5dudit
règlement.
Inaccordance withCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
Community andtheEuropeanAtomicEnergyCommunity (OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocuments inthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeit zugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)370 final
Brussels.20thJuly1981
V•--:i
\i'
EUROPEAN REGIONAL DEVELOPMENT FUND
Sixthannualreport(1980)
C0MC81)370final

EUROPEAN REGIONAL DEVELOPMENT FUND
Sixth annual report (1980 )

PREFACE
TheCouncil Regulation Establishing aEuropean Regional Development Fund
requires that :
1."Before 1October each year theCommission shall present areport to
theCouncil ,totheEuropean Parliament and totheEconomic andSocial
Committee on the implementation of this Regulation during the
preceding year .
2.This report shall also cover thefinancial management oftheFund and
theconclusions drawn bytheCommission forsupervision oftheFund 's
operations ".
Preface ìii

TABLE OFCONTENTS
CHAPTER I:INTRODUCTION 1
CHAPTER II :REGIONAL POLICY IN1980 3
Political andEconomic Context . 3
Régional Fund 4
Quota Free ..... 4
Amendments totheRegulation 6
Periodical Report 7
Regional impact ofother policies andfinancial instruments 7
Financial Instruments inSupport ofRegional Development 9
Regional Development Programme 13
Annual Statistical Outlines onRegional Policy Results 14
Integrated operations ofregional development 15
Regional Development Studies 16
Regional Policies ofMember States . 17
Régional Policy Committee 18
CHAPTER III :FUND ACTIVITIES IN1980 19
Fund assets 19
Applications forcontributions toinvestment projects 19
Grant decisions 22
Principal types ofprojects assisted 24
Realisation ofprojects assisted 25
Grant ofaninterest rebate onEIB loans 25
Impact ofFund assistance onemployment 25
Financing studies 26
Complementary character 27
Useofcommitment appropriations 28
Fund Committee activity in1980 29
Summary ofthesituation 1975-1980 31
Integrated operations ofregional development 33
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 35
Geographical concentration ofaids 35
Fund activity incertain priority andother regions ......... 37
CHAPTER V:PAYMENTS AND CONTROLS 59
Budget resources available andfinancial results 59
Controls 65
CHAPTER VI :PUBLICITY OFFUND ACTIVITY 69
CHAPTER VII :CONCLUSIONS 73
Table ofContents v

APPENDIX A.STATISTICAL ANNEX OFFUND ACTIVITY 75
Table 1:Summary ofaiddecisions in1980 75
Table 2:Types ofinvestment financed bytheRegional Fund -
Industry and Services 78
Table 3:Types ofinvestment financed bytheRegional Fund -
Infrastructure 80
Table 4:Fund assistance percapital 82
Table 5:Regional analysis ofFund assistance 83
Table 6:Budget situation 88
Table 7:Payments made 89
Table 8:Control operations undertaken 90
APPENDIX B.BIBLIOGRAPHICAL ANNEX 93
Provisions adopted onCommunity Regional Policy 93
Commission proposals 95
Publications 95
APPENDIX C.PRINCIPAL INSTRUMENTS 99
LIST 0FMAPS 107
LIST 0FTABLES 109
vi ERDF

CHAPTER I :INTRODUCTION
1.The European Regional Development Fund (ERDF )Regulation was
approved bytheCouncil inMarch 1975 (l),andamended on6February
1975 (2).This sixth annual report deals with Fund activities in
1980 .During that year theprovisions oftheamended regulation were
fully put into practice .Inconsequence ,the adoption bythe
Council ,inOctober 1980 ,offive regulations implementing the
"quota free "section (3)were one ofthemajor events ofthat year
forCommunity regional policy .Moreover ,1980 wastheyear inwhich
thefirst periodical report wascompleted onthesocial andeconomic
situation ofCommunity regions (A).Finally ,inview oftheaccession
ofGreece on 1January 1981 ,theCouncil on16December 1980 amended
the national quotas ofMember States inorder toinclude theGreek
quota (5).
2.Fund assets in1980 were 1165 million EUA ,compared with 945million
EUA in1979 ,anincrease of23%ontheprevious year .Ofthe 1165
million EUA ,58million were allocated tothe "quota free "section of
the Fund but could not becommitted in1980 since the implementing
regulations were not adopted bythe Council until the end ofthe
year .
1Council Regulation (EEC)No.724/75of18March 1975 establishing a
European Regional Development Fund (O.J. No.L73of21.3.1979 )
hereinafter called theFund Regulation .
2Council Regulation (EEC)No.214/79of6February 1979 amending
Regulation (EEC)No.724/75of18.3.1975 of18.3.1975 .
3Council Regulations (EEC)No.2615 /80,2616 /80,2617 /80,2618 /80and
2619 /80of7October 1980 introducing five pecific Community measures
ofregional policy (O.J. No.L271of15.10.1980 ).
4Point 20ofthis report .
5Council Regulation (EEC)No.3325 /80of16December 1980 amending
Regulation No.724/75.
CHAPTER I:INTRODUCTION 1

3.In1980 theCommission adopted under thequota section 390decisions
approving 2563 investment projects ,involving atotal aid volume
of1126.38 million EUA .Since 1975 ,11,745 projects have been
approved bringing the total appropriation commitment to3,586
million EUA (6).Proportionally tothepopulation oftheaided areas
ofeach country ,theaidvaries from 66.26 EUA perhead for Ireland
to9.37 EUAforLuxembourg (7).
The 1126.38 MEUA in1980 were allocated asto26%(1975-80 :30X)
forprojects inindustry andservice activity ,creating 60,000 jobs
(1975-80 :400,000 )and 74%(1975-80 :707)toinfrastructure
projects .Payments in1980 were 726.698 MEUA or101.6 7ofbudget
credits available for the quota section ,raising total payments
since the creation ofthe Fund to56.4 7>oftotal commitment
appropriations .
4.This report includes aparagraph ontheactivities oftheRegional
Policy Committee (®).Inpractice ,this in1980 played animportant
role inconcerted activity between theCommission andMember States ,
particularly onpreparation ofthe first periodical report onthe
social andeconomic situation ofCommunity regions .
Aparagraph hasalso been included onFund Committee activities .
Abibliographical annex isalso attached this year ,referring tothe
basic legal instruments governing the Regional Fund andCommission
publications onregional policy .
Itshould benoted that aidfrom theFund isdecided ,and that payment
made ,innational currency .Inthis report ,theamounts areexpressed
inEuropean units ofaccount (EUA).Inview ofthevariable rate of
exchange oftheEUA ,inusesince 1.1.1978 ,these amounts must be
treated asonly approximate .Amounts relating totheperiod 1975-1977
have been converted into EUAattheexchange rate applicable 1.1.1978 .
Except where otherwise stated ,data for 1980 have been converted at
theexchange rate applicable on1.1.1980 . -
Table 4inannex .
Point 39ofthis report .
2 ERDF

CHAPTER II :REGIONAL POLICY IN1980
POLITICAL AND ECONOMIC CONTEXT
5.Atthe end of1980 ,the European Economy was still inastate of
crisis .The growth volume inGDP for the year was some 1.4
consumer prices rose by 11%andbytheend oftheyear thelevel of
unemployment was 7.2 ,reaching atotal of7.7million compared with
6.1million ayear before .
6.In1981 ,therate ofgrowth ofGDP isslightly negative (some -0.6%)
andunemployment will probably reach 7.7 .Aslight stackening inthe
rate ofprice increase isexpected in1981 .Thedecline inlevel of
economic activity isexpected tocease inthefirst half of1981 and
theCommunity 'seconomy isexpected tostabilise bythemidyear .
7.That isthe general economic context .The regional figures inthe
first periodical report onthe economic and social situation of
Community regions (and other European Regions )(*)show that the
situation ofless favoured regions deteriorated considerably during
the seventies .Regional imbalances have become increasingly marked
when measured bydifferences confirmed inGDPperhead ,market prices
and current exchange rates .The gapbetween the tenmost developed
and the ten less favoured regions oftheCommunity rose from 2.9to1
in1970 to4.0 to 1in1977 .Since the accession ofGreece tothe
Community on 1January 1981 ,itreached theratio of5.0to 1.While
this trend inregional economies isduepartly tonational trends in
the economic development ofMember States ,itderives also from
aggravated productivity gaps between thedeveloped and less favoured
regions within theCommunity .
8.Inthis context ,the general increase inunemployment within the
Community has had particularly serious consequences for theweaker
regions .Theweight ofstructural unemployment ,inparticular ,ison
the upgrade (unemployment ofmore than sixmonths ,unemployment of
young people and women ).This observation does not diminish the
finding that certain reconversion areas intheCommunity have also
suffered astrong increase inunemployment .
*COM(80 )816final of7January 1981 .
CHAPTER II :REGIONAL POLICY IN1980 3

9.Afurther factor significantly affects thepresent situation and the
future economic outlook ofCommunity regions ;thedecline inthe
population growth rate ,giving rise toafall inthepopulation of
most German regions and insome regions ofother Member countries .
Ireland ,where the population isrising steeply ,isanotable
exception tothe current phenomenon .These population trends are
explained partly byafall inthebirth rate butalso byageneral
decline inmigratory movements .There isamarked fall inemigration
from peripheral regions (theregions ofIreland andsouthern Italy in
particular )tothecentral Community regions ;this takes theform of
positive migration balances inmany regions with traditional
features ofmajor emigration .
10.Whereas thefall inemigration from less favoured isofanature to
correct theage pyramid ofthepopulation and thereby tocontribute
positively tobolstering theeconomy ofthose regions ,thefact that
thepopulations inquestion are inagricultural areas ,historically
the less favoured oftheCommunity ,aggravates theeconomic problems
ofthose among them whohave notyetreached alevel enabling them to
sustain the additional demographic burden imposed upon them bythe
present trend .
11.The population structure isaffected furthermore bythe fact that ,
over the next five years ,agreater number ofyoung people (some 1
million annually )will come onthelabour market .This increase will
befelt especially bymany less favoured regions :theMezzogiorn ,
the regions ofthe west and north ofFrance ,Ireland andNorthern
Ireland .
REGIONAL FUND
QUOTA FREE
12.On7October 1980 ,theCouncil adopted thefirst five proposals (10)
for special Community measures ofregional development within the
ERDF quota free section .Indeciding ,theCouncil confirmed ,in
particular ,thepolicy grounds ,theregions orareas involved andthe
distribution ofthefinancial amounts proposed bytheCommission .It
also adopted ,indetail ,theCommunity aidrules pursuant tothenew
and more closely Community concept underlying the quota free
section ,which reflects especially theapplication ofthis orthat
policy andCommunity responsibility therefore intheregions ,the
choice ofregions orareas ,thepluriannual nature ofthemeasures in
question ,the type ofmeasures planned and the detailed rules
governing their financing .
10SeeERDF 5thAnnual Report -1979 -point 16.
4 ERDF

13.For the first time the ERDF will inpractice finance measures of
regional development forwhich the geographical location has been
proposed bytheCommission onthebasis ofCommunity criteria and
not ,asisthecase with thequotas ,byMember States onthebasis of
aided areas established bythemselves and inaccordance with their
ownaidrules forregional policy purposes .
14."Quota Free "measures will beapplied byway ofspecial pluriannual
programmes tobepresented byeach Member State concerned .The
"programme "approach isnew ;theCommission will nothave toexamine
amultitude ofindividual projects asisthe case with thequota
section oftheFund .
15.The "quota free "measures differ from quota financing both with
regard tothe nature ofaided operations and tothedetailed rules
governing their financing .
1.For instance certain aids have not hitherto been eligible for
ERDF aid .The aids concerned are designed toenable business
undertakings toadapt tomarket conditions byassisting projects
unable tomaterialise through lack offavourable "intellectual
environment "(sectoral studies ,access torisk capital for
instance ).Itwill benoted that these aids are especially
concerned with Community peripheral regions andare intended to
deal with the special problems raised bytheir distance .The
detailed rules for these aids toprojects arealso new .Firstly
the level ofaid ishigh since itcan reach 70%.Ontheother
hand ,some ofthese aids have atime limit and decrease over
time .They are therefore not somuch simply aids tocurrent
business but aids for launching economically viable activities .
Lastly the aids are anew factor since they are expressed in
terms ofreal expenditure (expenditure offirms requiring the
services of consultative companies ,running costs of
organisations responsible forcoordinated management oftourist
accommodation ..) and are nolonger related tonational public
aids forthis type ofmeasure .
2.The more "classical "aids to productive investment or
infrastructure are also included within theplanned measures but
subject togeneral considerations ;for example ,ifaids to
investments toSMC are eligible according tothe quota free
section and may begranted ,they cannot besounless market
research ,eligible for quota free financing ,reveals that they
are needed and provided the operations designed toimprove the
"intellectual environment "of the concerns inquestion are
feas ible .
CHAPTER II :REGIONAL POLICY IN1980 5

16.Each special programme will bejointly financed bytheCommunity and
the Member State concerned ,thereby creating akind ofcontractual
arrangement between them .This does notmean that each operation will
necessarily include financial participation bytheMember State .On
the contrary ,insome cases ,particularly for new measures ,the
Community will be the sole supplier ofpublic aid .For these
measures ,the existence ofaprior system ofnational aid isnot
necessary inpractice ,afactor which emphasizes still further the
Community character of"quota free ".Inthis instance ,theCommunity
aidwill bepaid directly totherecipients indicated inthespecial
programme .Itwill benoted inthis context that the range of
recipients isvery wide :public authorities ,local authorities ,
various organisations ,business concerns orindividuals .
17.Lastly ,there isacommitment forMember States toinform potential
recipients ofthese quota free measures ,byappropriate means ,ofthe
possibilities open tothem through theaidsystems nowavailable and
oftherole oftheCommunity therein .
AMENDMENTS TOTHE REGULATION
18.On16December 1980 ,theCouncil adopted Regulation (EEC)No.3325 /80
(ll)onrevision ofERDF quotas totake account oftheaccession of
Greece on 1January 1981 .
ThenewFund quotas are :
19.The Commission proposed initially a15%quota forGreece with
account taken oftheentire Greek territory .But theCouncil reduced
this figure to137*considering that theAthens area should be
ineligible forFund assistance .
Ontheother hand theCouncil agreed with theCommission toadopt a
non-linear method ofcalculating the drop inthequota ofother
Member States .This method ,based onthevalue ofGDP perhead of
population ofthevarious Member States inrelation totheCommunity
average hasledtoIreland ,Italy andtheUnited Kingdom incurring a
smaller drop inquota than other Member States .
11 OJEC no.L35of9.2.1979 .Belgium
Denmark
Germany (FR)
Greece
France
Ireland
Italy
Luxembourg
Netherlands
United Kingdom1.11X
1.06X
4.65 X
13.00 X
13.64 X
5.94 X
35.49 X
0.07 X
1.24X
23.80 X
6 ERDF

PERIODICAL REPORT
20.Thefirst periodical report "theregions ofEurope wascompleted in
1980 .
This report was prepared pursuant tothe Council Resolution of6
February 1979 (12).This provided that ,with aview toestablishing
ofacomprehensive system ofanalysis and policy formulation for
Community regional policy ,the Commission ,working inclose
collaboration with the Regional Policy Committee will prepare a
periodical report on the situation and social and economic
developments intheregions oftheCommunity .
The main conclusions ofthis first report -increase inregional
imbalances ,regional effect ofworsening unemployment andpopulation
problems -have been considered inaforegoing paragraph (I3).
Principally on the strength ofthis report ,the Commission is
preparing amemorandum for communication tothe Council onthe
priorities andguidelines ofCommunity regional policy .
REGIONAL IMPACT OFOTHER POLICIES AND FINANCIAL INSTRUMENTS
21.Inits Guidelines onCommunity regional policy .forwarded tothe
Council inJune 1977 ,the Commission indicated that itconsidered
indispensable tointroduce into the concept andapplication ofits
policies an assessment and consideration of their regional
dimension .InitsResolution of6February 1979 theCouncil stated
itsintention totake account ofthese implications when adopting its
decisions relating tothese policies .
Pursuant tothis Resolution ,theCommission hascontinued toexamine
themost important Community policies .Forinstance :
22.Inthe field ofagricultural policy ,forwhich theCommunity has a
very special responsibility ,the studies undertaken by the
Commission have shown theexistence ofvery substantial regional
imbalances inagricultural incomes and that these imbalances are
increasing .The common agricultural policy has not contributed to
restricting these imbalances .Onthecontrary ,theuniform character
ofprices and markets policy has given greater benefits toregions
with more efficient agriculture .In practice ,the support
mechanisms established within theframework ofmarket organisations
benefit ,asageneral rule ,theproducts ofrich regions (cereals ,
sugar ,milk )more than those ofless favoured regions inparticular
Mediterranean regions (fruit ,vegetables ,wine ).Moreover ,these
mechanisms give aprivileged position tomore productive farms and
holdings which are concentrated mainly inthe more well todo
regions .
12OJEC no.C36of9.2.1979
13Seepoint 7.
CHAPTER II :REGIONAL POLICY IN1980 7

The results ofthese studies therefore confirm theindispensablity
of taking the regional dimension into consideration inall
arrangements concerning thecommon agricultural policy formarkets .
Astep inthis direction hasbeen taken onmilk production .The
Council decided when fixing agricultural prices for 1980-81 that ,
whereas mountain and hill farmers would continue tobenefit from
exemption onpayment oftheco-responsibility levy ,thelevy would be
reduced for farmers inless favoured areas ,thereby meeting the
proposals oftheCommission tothis end .
This guideline should befollowed infuture .Inthis context ,inits
"Reflections onthecommon agricultural policy "communicated tothe
Council inDecember 1980 ,theCommission noted that "theprices and
markets policy cannot beconsidered apart from thegrowth inregional
imbalances "and that "common market organisations tend togive a
privileged position tothe more well todoproducers ,who are
concentrated mainly inthericher regions ".
Inconsequence ofthis fact ,the Commission holds that one aim in
adapting theCAP should be"toensure abetter regional distribution
ofthe benefits deriving for farms and holdings ofthe common
agricultural policy (markets andstructures )".
These affirmations and guidelines are particularly useful when ,
either due tobudget problems ortothe prospect ofthe future
accession ofSpain and Portugal ,agricultural policy isobliged to
adapt .
23.Inthefield oftrade policy ,while adegree ofprudence isneeded in
view ofthemany problems ofmethod and statistics ,itwould seem
that ,without proper consideration ofregional problems ,free trade
tends toaggravate regional imbalances within theCommunity .Indeed ,
thenew export markets often profit stronger regions more than weak
regions ,while the latter ,handicapped bymore rigid structures ,are
more susceptible tocompetition from imports than other regions ,in
particular from thenewly industrialising countries .
24.Onenlargement ,theCommission ,ingeneral thoughts communicated to
theCouncil inApril 1978 ,showed that ,without adequate corrective
policies ,enlargement could put thedevelopment ofacertain number
ofweak Community regions atrisk :theMezzogiorno and South West
France .Studies ontheeconomies ofthese twogroups ofregions have
indeed revealed for each group some ofthepositive and negative
repercussions onenlargement .
Apart from thelessons tobedrawn forthenegotiations onaccession
and for adapting the CAP and toprepare theregions therefore ,the
Council adopted on7October 1980 aCommunity measure involving 120
MEUA forcontributing totheir development .This measure looks to
developing the SMC (small and medium concerns )and handicraft
activities ,inparticular byassisting their marketability through
adapting and developing their means ofproduction and improving
their management .Itisalso designed topromote innovation and to
develop tourism potential .
8 ERDF

25.Inthe field ofindustrial policy ,through more exact studies than
those previously undertaken ,the Commission isanalysing the
situation and prospects oftextile industries and their clothing
counterparts inCommunity regions inparticular toprepare the3rd
multifibre negotiation .It intends tocontinue and reinforce
specific measures for assisting structural adaptation incertain
weak regions ,which have been particularly affected by the
restructuring ofthesteel industry .
26.OnCommunity policy forresearch anddevelopment ,theCommission ,at
therequest oftheCouncil ofMinisters ,ispreparing proposals when
specific credits are available ,tocontribute directly tothe
development ofregional policy .
FINANCIAL INSTRUMENTS INSUPPORT OFREGIONAL DEVELOPMENT
27 .GRANTS
• EAGGF /Guidance Section
The 5th ERDF report indicated the measures taken within the
framework ofthe policy for agricultural structures toassist
modernising structure intheless favoured regions .In1980 ,the
first commitments were made for some ofthese measures :29.49
MEUA for aid torural infrastructure projects insouthern France
(13.15 MEUA )and intheless favoured agricultural areas ofItaly
(16.34 MEUA ), 26.05 MEUA for forestry measures in the
Mediterranean regions ofItaly (16MEUA )and France (10.05
MEUA );47.7 MEUA for irrigation projects intheMezzogiorno ;7
MEUA for incentives toagricultural development inthe less
developed areas ofWestern Ireland .Aspecial measure was also
adopted onbehalf ofGreenland .
Also in1980 the Commission informed the Council ofproposals
relating inparticular totheFrench overseas departments and
the less favoured areas ofNorthern Ireland .The Commission is
studying those regions indifficulty which could bethesubject
ofintegrated development programmes ,comparable tothose still
being considered bytheCouncil .
• The Social Fund
The proportion ofcontributions granted from the Social Fund in
1980 onbehalf oftheMezzogiorno ,Ireland ,Northern Ireland and
the French overseas departments was 32.9 %.The percentage of
grants made toall less favoured areas also eligible for ERDF
contributions was 81.4 %.
CHAPTER II :REGIONAL POLICY IN1980 9

LOANS
Conversion Loans
Restructuring measures taken inthe Community steel industry
provoked in1980 afurther substantial contraction ofemployment in
this sector ofactivity andhave ledtheCommission tointensify its
efforts and toreinforce its financial measures through theuse of
all itsfinancial instruments andasshown bytable 1below mentioned
through thegrant ofloans pursuant toArticle 56oftheECSC Treaty .
The Commission also decided in1980 togrant loans inanamount of
260MEUA (see table 1),which received interest rebates amounting to
28.485 MEUA through theuse ofcredits setaside for thepurpose in
theECSC operational budget .
The instrument of loans with interest rebates borne oncredit
allocations for this purpose inthe ECSC operational budget
amounting to28.485 MEUA (14)has enabled grants tobemade of26
MEUA toconversion projects .
The progressive widening of the network ofglobal loans made
available tofinancial organisations inseveral Member States has
greatly helped access tosmall andmedium concerns .
Interest rebates
1975 3.6385 MEUA
1976 5.2770 MEUA
1977 17.3000 MEUA
1978 18.0000 MEUA
1979 25.5000 MEUA
19S0 28.4850 MEUA
TOTAL 98.2005 MEUA
ERDF

Table 1
Loans granted (a)pursuant toArticle .56
ofthe ECSC Treatv fbl
(inMEUA )
Member States 1961-1977 1978 1979 1980
Belgium 36.67(12 )– – 12.50(1 )
Germany 126.58(62 ) 63.70(1 )- 27.30(4 )
(c)
France 221.09(53 ) 9.50(5 ) 94.48(9 ) 19.91(3 )
Ireland 2.00(1 )- - 4.45(1 )
(d)
Italy 79.32(19 )- - 13.11(1 )
Luxembourg- 2.49(1 ) 1.69(1 ) 10.79(2 )
Netherlands 46.82(38 )- - 7.30(1 )
U.K. 93.98(11 ) 124.96(5 ) 103.95(15 ) 165.47(21 )
(d-e)
Community 606.46(196 ) 200.65(12 )200.12(25 ) 260.33(34 )
(a)Based oncredit commitments
(b)Figures inbrackets refer tothenumber ofloans granted
(c)Includes aloan pursuant toArticles 54and 56oftheECSC Treaty
(d)1973-1977
(e)Taking account ofthecancellation in1979 ofaloan granted in1976
29.THE EUROPEAN INVESTMENT BANK
In1980 ,the loans made bytheEuropean Investment Bank from itsown
resources inthenine Community countries totalled 2,753.2 MEUA (15)
compared ,with 2,281.23 MEUA in1979 .Investments ofregional
interest were 1,815.7 MEUA compared with 1,570.6 MEUA in1979 .The
priority direction for loans onbehalf ofinvestments ofregional
interest was therefore maintained .
Theregular growth ofconcentrated financing incountries faced with
the most acute structural problems :Italy ,Ireland ,the United
Kingdom continued and reached atotal ofsome 907,ofthe total
volume ofloans granted forregional purposes .
Thesectoral distribution indicates that 78.7 %ofloans were granted
for infrastructures (ofwhich 49.7 %went totheenergy sector )and
21.3 %were granted toindustry ,agriculture andservices .
15Thedefinition oftheEIBunit ofaccount (U.A. )according toArticle
4oftheBank 'sstatutes isthesame asthat fortheEuropean unit of
account (EUA).
CHAPTER II :REGIONAL POLICY IN1980 11
(2)

30.NEW COMMUNITY INSTRUMENT FOR BORROWING AND LENDING (NCI )
After 18months oflife ,theamounts committed for theNCIwere 474.6
MEUA on31.12.80 .The geographical distribution ofloans granted
according totheNCI isasfollows :
Itshould berecalled here that when theNCIwascreated in1978 ,the
Council authorised total borrowing upto1,000 MEUA tobelent asa
first instalment andupto500MEUA fordeveloping infrastructure and
energy .On22July 1980 the Council authorised the Commission to
commit asecond instalment of500MEUA foridentical purposes .
Geographical Distribution
•Italian projects which represented approximately 47%ofthe
total related for the greater part toregions which benefited
from regional aids .The remaining 117 MEUA were granted to
projects which contributed togreater independence ofenergy
supply inthe Community such ashydroelectric and geotheral
installations ,agaspipeline and theconstruction ofamotorway .
• IntheUnited Kingdom which received 22%ofthe loans ,the two
loans inquestion related todevelopment areas .These concerned
work onthe Diwornic hydro-electric station inNorth Wales ,
which accounted for 14Xofthetotal ,whilst theremainder went
towater supply schemes inScotland (Lothean water ).
• 27%ofloans went to7projects inIreland .
•Denmark received twoloans accounting for4%ofthetotal .
31 .INTEREST REBATES FOR CERTAINS LOANS GRANTED WITHIN THE
FRAMEWORK OFTHE EMS
Byway ofthe 1980 budget and at1.10.1980 ,loans of579.2 MEUA
received rebates of3interest points within the framework ofthe
European monetary system ,ofwhich 376.1 MEUA were forinvestments in
Italy and 203.1 MEUA for loans toIreland .The rebates were
respectively 61.19 MEUA for Italy ,ofwhich some 84%went tothe
development regions ,and43.31 MEUA onloans toIreland .
Pursuant theCouncil Regulation No.1739 /79of3August 1979 relating
tothesubsidisation ofcertain loans granted inthecontext ofEMS ,
these subsidies given toanamount of1,000 MEUA infive annual
tranches of200 MEUA for loans from NCI resources and EIB loans from
the Banks own resources toanamount of5,000 MEUA infive annual
tranches of1,000 MEUA .Attheendof1980 ,397MEUA hadbeen granted
inrebates onloans amounting to1916 MEUA .Denmark
Ireland
Italy
United Kingdom18.1 MEUA
123.4 MEUA
222.8 MEUA
105.3 MEUA
12 ERDF

REGIONAL DEVELOPMENT PROGRAMME
32.In1980 ,acertain number ofregional development programmes were
communicated bydifferent Member States totheCommission andhave ,
asawhole ,only introduced minor changes with theexception of
Italy .
For France ,the updated programme inthe Overseas departments
(Guadeloupe ,Martinique ,Reunion ,Guyane ,Saint-Pierre andMiquelon )
include new developments for sugar ,rhum ,bananas and pinapple
products anddiversification foragriculture ,industry and tourism .
Some statistical data were brought uptodate but this current
programme does notyet include sufficient information onpriorities
andontheuseofFund (ERDF )resources .
For Ireland ,thenewcurrent programme replaces macro-economic aims
with outline projects .
ForItaly ,theGovernment hassent theCommission pursuant toArticle
6(3)ofthe ERDF Regulation the "updated regional development
programme for theMezzogiorno 1977-1980 ".Thedocument inquestion
hasbeen examined bytheCommission andtheRegional Policy Committee
and isafully revised regional development programme for the
Mezzogiorno 1977-1980 .With reference tothe earlier version ,it
gives additional details ofcentral government measures (sectoral
plans inparticular )and above all on measures by regional
authorities .Italso includes two major problems ofundoubted
interest for Community regional policy ;the natural gas supply
programme andtheintegrated operation forNaples .
Finally ,although Greece only joined theCommunity on1January 1981 ,
the Greek Government sent the Commission in1980 its regional
development programme for 1981-1985 .The programme covers thewhole
country with theexception ofAthens .
The two outstanding problems are population andeconomic imbalance
between the Athens region and the rest ofthecountry -theAthens
region contains 357.ofthenational population andproduces 607,of
Gross Domestic Product -and widespread latent under-employment in
rural areas .
The main aims ofGreek regional policy are toestablish abetter
geographical balance of population and to hasten economic
development bywayofacertain number ofregional development poles .
Tothis end ,theprogrammes fixthetarget fordeveloping industrial
activities atarelatively high productivity level without ,however ,
neglecting environment problems andother long term implications .It
isalso planned tospeed theintroduction ofinfrastructure needed to
create industrial activities and tokeep thepopulation onthespot
inaddition toadopting incentive measures forlocal projects .
CHAPTER II :REGIONAL POLICY IN1980 13

Public expenditure planned for the programming period including
investments planned bypublic works concerns were 304,000 million
drachmas (1980 prices )orsome 5,000 million EUA .
ANNUAL STATISTICAL OUTLINES ONREGIONAL POLICY RESULTS
33.Onthebasis ofdata contained inthese statistical outlines ,the
table below could beestablished for theyear 1979 .However this
attempt atassessment was limited toafewessential andglobal data :
industrial investments ,which were the subject ofanaiddecision ,
thecommitted costs involved andanestimate ofjobs planned .These
figures and part estimated and must betreated with customary
reserve .
Table 2
Regional aids in1979 (MEUA )(1)
Investments Pubi .aid Jobs Inv./ Cost
decided planned job pub.
Member State Tot . of Tot . of creat . main -
which which tan.
by by
ERDF ERDF (5) (5)
Belgium 956 56 157 6 6,643– 0.144 0.024
Denmark 97 24 21 2 2,645- 0.037 0.012
Germany 3,621 1,079 228 42 47,175 68,325 0.031 0.002
(2)
France 1,112 1,001 128 64 49,581- 0.022 0.003
Ireland 794 223 362 29 38,991- 0.020 0.009
Italy 1,421 265 395 50 36,515- 0.039 0.011
(3)
Luxembourg 100 - 10 - 862 - 0.116 0.012
(4)
Netherlands 286- 50- 2,823- 0.101 0.018
U.K. 4.870 732 940 76 69,548 43,623 0.043 0.008
(4)
Totals 13,257 3,381 2,301 269 254,783 111 ,958 0.036 0.006
(1)Average exchange rates 1979
(2)Excluding the investment grant calculated at250MEUA
(3)Excluding aids byway ofinterest rebates
(4)Estimated
(5)These estimates must betreated with customary reserve
14 ERDF

INTEGRATED OPERATIONS OFREGIONAL DEVELOPMENT
34.The Commission has stressed onseveral occasions the necessity to
identify needs ,tolook for the means torender the Community
financial instruments more effective and ,from this aspect ,to
encourage aworking coordination of the various Community
instruments forstructural policy purposes .
Moreover ,theCommission considers useful andnecessary that there
should bemore concerted measures between Community measures for
structural policy purposes and linked national measures when the
latter furnish substantial financial support toanarea with a
serious economic and social situation .
Tomeet their concern onthis score the Commission has decided to
experiment with anew operational technique ,that ofintegrated
operations .
35.Anintegrated operation isformed from acoherent group ofmeasures
and public and private investments designed toaid economic and
social development ofagiven geographical area towhich national
central ,regional and local authorities contribute with the
Community bywayofthevarious Community financial instruments for
structural policy purposes .
Anintegrated operation isthe end product ofaninterlocking
negotiation between theCommunity ,theMember State and theregional
and local authorities concerned .For asuccessful outcome it
requires agroup of economic ,financial and administrative
conditions that are not tobefound everywhere .Accordingly the
Commission has decided toproceed with caution byway oftwopilot
projects atNaples andBelfast .
36.Moreover ,the draft general budget oftheEuropean Communities for
1981 contains anadhoc line token entry enabling theCommission to
contribute tofinancing thestudies ofpreliminary character needed
toprepare integrated operations and tofinance with national or
local authorities those specific measures ,which donotfall within
theexisting framework ofpresent Community financial instruments .
TheCommission will study thedetailed rules which should govern use
ofthis budget line inthe light ofaid possibilities already
available through theexisting Community financial instruments .
CHAPTER II :REGIONAL POLICY IN1980 15

REGIONAL DEVELOPMENT STUDIES
37.Theregional study activity undertaken bytheCommission isintended
inparticular tocontribute toimplementing newregional policy
guidelines adopted bytheCommission andtheCouncil .
Within thecategory ofstudies financed solely bytheCommission ,
reference may bemade tostudies ontheregional impact ofthecommon
agricultural policy and the studies used bytheCommission and the
Regional Policy Committee toprepare thefirst periodical report on
the economic and social situation ofCommunity regions .Among the
most important are :
•acomparative study on policies for disincentives and
deconcent ration ;
•astudy ontherole ofservice activities inregional policy ;
•astudy onregional labour markets inEurope .
Among the studies initiated in1980 and still inprogress the
following deserve mention :
•Location factors inWestern Europe (FLEUR ),
•Therole ofinfrastructure inregional development ,
•Effects ofCommunity enlargement onthe economies ofthe
Mezzogiorno andSouth-West France .
Among categories of studies undertaken byMember States with
Commission co-financing are :
•astudy ontheimpact ofmicro-electronic technology inIreland ;
•astudy onguidelines and methods required for aneconomic
redeployment strategy inIreland ;
•astudy onthedevelopment ofinland areas intheMezzogiorno
especially inBasilicata .
The Commission has also co-financed feasibility studies undertaken
pursuant toArticle 46ofthe ECSC Treaty onthe possibilities of
conversion forsteel producing areas affected bythecrisis inthesteel
industry ,such asDerwentside ,Wolverhampton ,Lanarkshire and theLongwy
basin .
Within theframework ofArticle 12oftheFund Regulation ,theCommission
has shared ,tothe tune of50%ofthecost ,infinancing 16studies
undertaken byMember States andwhich have aclose anddirect link with
thework oftheFund .These were 4feasibility studies (1each inItaly ,
theUnited Kingdom ,Ireland andGreenland )and 12technical studies in
Italy (6inCampania and 6inSardinia )(I6).
16Point 54ofthis report .
16 ERDF

REGIONAL POLICIES OFMEMBER STATES
38.In1980 ,The Federal Republic ofGermany ,Belgium ,Denmark and
Luxembourg made fewchanges intheir regional policies .
InFrance ,the benefit ofparticipating loans from the F.S.A.
(Special Fund for Industrial Adaptation )was extended tothe
employment areas ofcertain oldindustrial regions (Albi-Decazeville
andAles ).
InIreland .1980 was the last year ofgovernment taxexemption known
as Export Sales Relief and Shannon Relief ,enabling foreign
companies established inIreland todeduct from their taxable
profits those realised from exports .Companies towhich this aidhas
already been granted may continue tobenefit until 1990 .However a
10%tax has been introduced onprofits ofall concerns ,payable
until theyear 2000 .
InItaly certain small changes have been made totheboundaries of
aided regions intheCentre andNorth ofthecountry .
IntheNetherlands .thelevel oftheIPRgrant (investment grant )was
raised inanumber ofareas intheprovinces ofGroningen ,Drenthe
andLimburg .
Inpractice ,most changes have occured inthe United Kingdom .
Firstly ,pursuant totheaim established in1979 toreduce regional
aids upto1982 progressively ,the United Kingdom Government at 1
August 1980 reduced aids andcorresponding areas where they applied ;
mainly inScotland and Wales .Parallel thereto ,aids were created or
increased onbehalf ofsome areas affected bytherecession inthe
steel industry (atScunthorpe ,Newport ,Pontypool ,Port Talbot ,
Shutton and Corby ).Rather more favourable conditions were made for
the hire ofadvance factories .Aids granted for activities inthe
Highlands and Islands ofScotland continue tobenefit from ceiling
adjustment (75%ofinvestment )but are limited toprojects ofless
than 600,000 EUA totheexclusion ofprojects located intheNairn ,
Lerwick andKirkwall areas .
CHAPTER II :REGIONAL POLICY IN1980 17

REGIONAL POLICY COMMITTEE
39.TheRegional Policy Committee metfive times im1980 .
Oneessential task oftheCommittee was totake part inpreparing the
first periodical report onthe economic and social situation of
Community regions .Inthis context there was close collaboration
between theCommission andtheCommittee inanadhocworking group .
Additionally the Committee deliberated atlength over the draft
communication ofthe Commission tothe Council oncategories of
infrastructure towhich the ERDF could contribute .Intheabsence of
unanimous agreement ,theCommittee included four differing opinions
inits opinion .The Council has undertaken toconsider this draft
communication in1981 .
TheCommittee welcomed Greek observers atthree successive meetings
andheard statements from them onregional problems inGreece andthe
Greek regional development programme .
Mention should also be made of the work of the Committee in
connection with greater efficiency of regional aids ,with
consideration ofadraft recommendation ontransfrontier problems
and with greater consistency ofregional measures through improved
coordination offinancial instruments .
Asinprevious years ,the Committee gave its opinion onmajor
infrastructure projects (ofmore than 10MEUA )forwhich ERDF aidwas
requested ;these were 90in1980 .
TheCommittee paid abrief visit tostudy thesituation intheNorth
Jutland region ofDenmark .
18 ERDF

CHAPTER III :FUND ACTIVITIES IN1980
FUND ASSETS
40.Since the rules implementing the quota free section ofthe Fund
were only adopted bythe Council inOctober 1980 (17),thesection
had notyetbeen thesubject ofanaiddecision in1980 .Thepresent
chapter only deals therefore with quota section activity .
Within this section and for the first time ,acertain number of
studies were financed inclose relation with Fund activities
according toArticle 12oftheRegulation .
41.For 1980 ,total available commitment appropriations for the "quota
free "section oftheFund were 1169.64 MEUA ,consisting of1,106 MEUA
written into Chapter 55oftheBudget ,3.22 MEUA carried forward from
1979 ,14.67 MEUA deriving from withdrawals and adjustment to
exchange rate fluctuations and 45MEUA transferred from the quota
free section .These operations areanalysed indetail in"CHAPTER V:
PAYMENTS ANDCONTROLS "onpage 59and table 4ofthis Chapter gives
anoutline oftheuseofcommitment appropriations available in1980 .
Itwill benoted also that these were insufficient toallow for
corresponding commitments for all projects onwhich the Fund
Committee was consulted in1980 .For this reason decisions on232
investment projects ,representing atotal configuration of251MEUA
were carried forward tothefollowing financial year andwere subject
matter for the first instalment of1981 .
APPLICATIONS FOR CONTRIBUTIONS TOINVESTMENT PROJECTS
42.In1980 424 applications were made onbehalf of2,925 investment
projects ,327projects must beadded tothese figures corresponding
to69applications made before 1980 .Inall ,the Commission
therefore considered 493 applications in1980 regarding 3,252
projects .
17Point 12ofthis report .
CHAPTER III :FUND ACTIVITIES IN1980 19

Applications forcontributions in1980 were spaced over theyear up
toOctober 1980 andreached theCommission with substantial delays in
the case of some Member States .Infact ,nearly half the
applications representing rather more than half the total volume of
contributions asked were made after thebeginning ofJuly ,which
created acertain imbalance inthework oftheCommittee (18).It
would therefore bepreferable tolook for amore even spread over
time ofapplications byMember States ,themore sobecause ,when a
Member State applies late ,payments will bedelayed correspondingly
to the disadvantage of the Member State concerned .The late
introduction ofrequests has the effect ofinfluencing the
calculation ofthe proportion ofpayments inrelation tototal
commitments .
43.Applications in1980 referred toprojects with total investments of
11,865 MEUA .About onequarter ofthis amount wasforinvestments in
industry and service activities and three quarters for investments
ininfrastructure .
Table 3
Types ofinvestment aonlied for in1980
Categories ofinvestment Volume ofinvestm .
MEUA %
-Industrial and service activities
(projects ofmore than 10MEUA )
-Industrial and service activities
(projects ofless than 10MEUA )
SUBTOTAL1,674.62
1,248.2314.11
10.52
2,922.85 24.63
-Infrastructure
(projects ofmore than 10MEUA )
-Infrastructure
(projects ofless than 10MEUA )
-Infrastructure inmountain and hill
agricultural areas (1)
SUBTOTAL7.545.87
1.345.25
51.2563 .60
11 .34
0.43
8,942.37 75.37
TOTALS 11,865.22 100.00
(1)Within the meaning ofDirective No.75/268/EEC of28April 1975 on
mountain andhill andcertain less favoured agricultural areas .
18Point 61ofthis report .
20 ERDF

44.Ofthe 3,252 projects presented ,2,563 were financed in1980 .
Moreover ,inview ofinsufficient commitment appropriations ,232
investment projects could only bethe subject ofadecision to
contribute inthefirst instalment of1981 .
Taking account ofthe integration ofsome projects with others ,the
absence ofpositive decisions affected 432 projects in1980 for the
following reasons :
• 141projects gave rise toproblems oninvestigations preventing
adecision ontheir behalf in1980 ;
• 23projects were withdrawn atthe request oftheMember State
concerned ;
• 145projects did notcomply with theformal conditions laid down
intheFund Regulation (creating atleast 10jobs ,investments of
more than 50,000 EUA ...);
• 62projects were not accepted for sectoral reasons (example :
structural overcapacity );
• 81 projects were unacceptable for various reasons (late
applications ,aid granted byMember States notcompatible with
thecommon market ,nature ofinvestment ,...).
Table 4
Result ofinvestigation ofaid applications
Member State (A) (B) No .ofprojects presented in1980
onwhich nodecision was taken
01 02 03 04 06 Tot .
Belgium 82 76 – 4– 2 – 6
Denmark 96 94- 1- 1 - 2
Germany 249 232- 15- 2 - 17
France 393 271 2 77 - 43- 122
Ireland 36 35- - 1 - - 1
Italy 1,765 1,522- 26 4 211 2 243
Luxembourg 1 1 - - - - - -
Netherlands 7 7 - - - - - -
U.K. 623 325 2 3 15 270 8 298
Totals 3,252 2,563 4 126 20 529 10 689
(A)Number ofprojects presented in1980 orbrought forward from previous
years .
(B)Number ofprojects financed in1980 .
CHAPTER III :FUND ACTIVITIES IN1980 21

45.Inprevious years and tomake theCommission 'schoice ofprojects
easier ,theCommission hasasked Member States toapply formore than
their quota ofthe Fund .The previous report (x*)noted with
satisfaction the efforts made bymost Member States inthis
direction .In1980 ,this wasespecially thecase forFrance ,Ireland
and Italy .Ontheother hand ,other Members States only applied fora
number ofprojects corresponding approximately totheir quota .
GRANT DECISIONS
46.In1980 ,the Commission adopted 390 grant decisions for investment
projects totalling 1,126.38 MEUA ,anincrease ofsome 17%oncredits
granted in 1979 .As inprevious years ,these decisions were
distributed infour instalments over theyear :
January :46decisions foratotal grant of161.79 MEUA .
May : 66decisions ,241.58 MEUA .
September :85decisions ,192.76 MEUA .
December :193decisions ,530.25 MEUA .
Decisions were adopted when the Commission had received the
necessary decisions from theRegional Policy Committee and theFund
Committee pursuant totheFund Regulation .
Table 1inannex gives for each Member State and for each major
investment category the number ofgrant decisions adopted ,the
number ofprojects financed ,thenumber ofinvestments involved and
thevolume ofFund Assistance .
Inall ,assistance wasdistributed asfollows between categories of
projects :
19Point 47ofthe5thERDF annual report .
22 ERDF

Table 5
Assistance granted and investments financed bv
categories ofproiects
Assist . Investm .
Industry &services projects +10MEUA
projects -10MEUA17.31 X
8.69 X30.42 X
11.02 X
26.00 X 41.44 %
Infrastructure projects +10MEUA
projects -10MEUA
infrastructure in
hill &mountain
farming areas45,59 X
28.19 X
0.22 X47.51 X
10.97 X
0.08 X
74.00 X 58.56 X
TOTAL 100.00 X 100.00 X
47 .This Table calls for comment :
•Industrial and service investment projects asapercentage of
total assistance were 26X,in1980 .However the proportion of
infrastructure investments aslaid down inArticle 4.1.b ofthe
Fund Regulation rose asapercentage oftotal Fund assistance
over the years 1978-1980 at70X,thereby meeting commitment
according totheRegulation .Nevertheless several Member States
inrecent years ,particularly Denmark ,Ireland and Italy ,have
tosome extent reduced the volume ofpercentage assistance on
behalf ofindustry and services ;ifthis trend were not to
change ,itmight raise problems inthefuture for thecommitment
to allocate no more than 70Xto Fund assistance for
infrastructure investments .
•Atthe same time ,the percentage ofinfrastructure projects as
part of total assistance financed continued torise and
accounted for 74Xin1980 .The projects benefitting from the
possibility available according tothe amended Regulation of
February 1979 togrant assistance upto40Xofinvestment cost
accounted for 22Xofprojects ofmore than 10MEUA ;incontrast
14Xofprojects received arate ofassistance ofless than 30X.
•The proportion ofgrants toprojects of10MEUA ormore was62.9
X.This amount ,showing anincrease over 1979 ,corresponds tothe
priority referred tointheFund Regulation onbehalf ofmajor
proj ects .
CHAPTER III :FUND ACTIVITIES IN1980 23

PRINCIPAL TYPES OFPROJECTS ASSISTED
Tables 2and 3inannex indicate thetypes ofinvestment forwhich Fund
assistance wasgranted .These tables reveal thefollowing facts :
48 .Industrv and services
•In1980 ,the average amount per project was 73.0 MEUA for
projects ofmore than 10MEUA and 2.0MEUA forprojects ofless
than 10MEUA .Fund grants were equal to37.0 7ofnational aids
and 6.37oftotal investment for large projects and to47.0 7
and8.87respectively inthecase ofsmaller projects .
•ERDF aidbysector ofactivity wasasfollows :Themotor vehicle
industry and spare parts was inthe lead for the number of
projects ofmore than 10MEUA ,followed bythe chemicals
industry ,engineering andengineering equipment .Forprojects of
less than 10MEUA ,metal construction was inthe lead ,followed
byengineering and engineering equipment ,the food industry ,
beverages and tobacco ,rubber and plastic processing .For
smaller projects at the level of Member States ,metal
construction was inthe lead inFrance andItaly andengineering
andengineering equipment inGermany .
49 .Infrastructure
•For projects ofmore than 10MEUA ,investment perproject in1980
was 63.9 MEUA and Fund grants were 28.4 7,ofpublic expenditure
eligible forFund assistance .Forsmaller projects ,thevolume of
investments perproject was0.6MEUA andFund grants were 30.7 7
ofpublic expenditure considered .TheCommission recalls inthis
context that ,for major projects ,itwasobliged ,insome cases
and pursuant totheFund Regulation ,toadjust thelevel ofgrant
between 10and 307,taking account ofthe importance ofthe
project for thedevelopment oftheregion inquestion ;moreover ,
always pursuant totheRegulation ,projects ofspecial interest ,
whatever their size ,could receive assistance ata40Xrate .
This adjustment has been applied after consultation with the
Regional Policy Committee and the Fund Committee and the
Commission ,after consultation with theFund Committee ,hasjust
formulated more exact guidelines onthematter .
•For theCommunity asawhole ,themajority ofprojects assisted
concern road infrastructure andwater supply orprojects ofmore
than 10MEUA towhich drainage for small projects istobeadded ;
inmountain and hill areas ,infrastructure isabove all ,with
regard tothenumber ofprojects financed ,forinvestment inthe
output ordistribution ofgas and electricity and inroad
infrastructure .
•Thecategories ofinfrastructure assisted vary ,however ,between
Member States according tonational policies and regional
priorities .Inthis way ,water supply takes the lead for large
projects inIreland whereas inItaly ,forthenumber ofprojects
financed ,this type ofinfrastructure isequalled bydrainage and
24 ERDF

infrastructure for industrial estates and road infrastructure is
inthe lead inFrance and intheUnited Kingdom .InFrance too
there are many major projects oftelephone infrastructure .The
greater number ofsmaller projects inDenmark concern energy
distribution ,general infrastructure for industrial estates in
Germany and Belgium ,telecommunications and energy supply in
France ,"advance factories "inIreland ,road infrastructure in
Italy and theUnited Kingdom .
REALISATION OFPROJECTS ASSISTED
50.Since revision oftheFund Regulation ,payments byMember States are
eligible for Fund assistance bytheCommission from the 12th month
before thedate onwhich itreceives therequest forassistance ,in
respect ofinvestments not completed bythat date .TheCommission
considered that the results ofthese new provisions have been
satisfactory inthat 26%ofprojects financed started in1979 and54
%inthe same year asthedecision togrant assistance .Five Member
States (Belgium ,Germany ,the United Kingdom ,the Netherlands and
Italy )have even introduced acertain number ofapplications for
projects starting in1981 .
GRANT OFANINTEREST REBATE ONEIB LOANS
51.NoMember State ,in1980 ,used the facility ofobtaining Fund
assistance inthe form ofinterest rebate onaloan issued bythe
European Investment Bank .
IMPACT OFFUND ASSISTANCE ONEMPLOYMENT
52.One ofthe main aims ofthe Fund isthe creation ormaintenance of
jobs inpredominantly agricultural regions ,orinthose subject to
industrial change orstructural underemployment .Theassessment of
Fund grants inthis connection isespecially difficult because ,in
1980 asinprevious years ,thegreater number ofprojects financed
from the Fund were infrastructure projects ,not ,inmost cases
themselves ortoavery small extent ,creators ofjobs but intended
toestablish conditions whereby employment could develop .
Furthermore ,even with regard tojob creation ,the basic role of
infrastructure indeveloping less favoured regions should not be
underestimated .By its very nature ,regional policy should
concentrate mainly onmedium and long term structural measures ,such
asimprovement orinfrastructure ,which areessential tocreating or
maintaining permanent jobs inthefuture .
CHAPTER III :FUND ACTIVITIES IN1980 25

Itisestimated with regard tothedirect creation ofpermanent jobs
above all through development ofthe industrial and service sectors
that nearly 60,000 ofthenumber forecast forcreation ormaintenance
derived from applications which were thesubject ofagrant decision
in1980 ;jobs created ormaintained due toaFund contribution were
greatest inFrance andtheUnited Kingdom .
53.Asinprevious years ,projects ofless than 10MEUA created most jobs
bycomparison with the amount ofthe investment and/orthe Fund
contribution .Investment perjobcreated ormaintained was 140,000
EUAand theFund assistance perjobcreated ormaintained was9,000
EUA for projects ofmore than 10MEUA and the figures were
respectively 31,000 and2,700 EUAforprojects ofless than 10MEUA .
This isdue tothefact that thevolume ofcapital invested perunit
oflabour ismostly more for large than for smaller projects ,the
latter being often highly labour intensive .
However ,there are fairly substantial gaps inthis context between
Member States ,due inpart todifferences insectoral distribution of
industrial projects inreceipt ofFund assistance and intheir
relative economic situations .
Fund assistance per job created for large projects was highest in
Belgium and theUnited Kingdom and lowest inIreland andFrance ;for
small projects ,itwas highest inItaly and Belgium and lowest in
Denmark ,Ireland andFrance .
FINANCING STUDIES
54.In1980 ,the Commission shared ,uptoamaximum 50%ofcost ,in
financing 16studies closely linked tothework oftheFund and
undertaken byaMember State ,using here thefacility provided by
Article 12oftheFund Regulation (20).
The grant ofassistance for these studies should enable the
Commission toparticipate inassisting acertain number of
investments when conceived and toplay amore active part intheir
implementation .
Other aims which the Commission considers should beachieved by
financing studies are the encouragement of the complementary
character ofFund resources for individual projects ,theformation
ofaportfolio ofinvestment projects toenable theCommunity to
improve programming ofmeasures for development toachieve the
purposes oftheFund andimprovement incarrying outjoint measures
bywayofseveral Community financial instruments .
20Asindicated inpoint 37ofthis report ,other studies onregional
development were financed bywayofother headings ofthegeneral
budget oftheCommunities .
26 ERDF

55.Taking account oftheaims mentioned above andtheprovisions ofthe
Regulation ,theCommission has considered that priority should be
given totechnical and feasibility studies ,directly linked toa
project orgroup ofprojects .•
Moreover ,this choice does not exclude theERDF ability tofinance
studies designed toprepare asectoral orregional programme ,when
these studies lead toidentification and quantifying agroup of
investments andarenottoogeneral andmacro-economic incharacter .
56.Among studies forwhich adecision tofinance wasadopted in1980 may
beinstanced :
•afeasibility study onhydro-electric energy supply forisolated
public bodies inGreenland ;
•agroup ofpreparatory studies onthedrainage programme ofthe
Shannon (Ireland );
•afeasibility study onrestoring sites intended for industry at
Pyewine ,Grimsby (United Kingdom );
•aninventory ofwater resources inSardinia .
Other studies financed in1980 were technical studies ontransport
projects ,water works and energy distribution undertaken atthe
request oftheItalian authorities (6inCampania and 5inSardinia ).
The total amount ofERDF contributions for studies was 7.94 MEUA .
COMPLEMENTARY CHARACTER
57.The request oftheCommission that itshould receive information on
the use ofFund assistance made inaccordance with Article 19ofthe
ERDF Regulation hashadvirtually noresponse .
However ,onthestrength ofinformation available totheCommission
onthis matter ,itprepared adraft note ,submitted tonational
experts .Thereafter theMember States ,all excepting France ,sent
their comments to the Commission enabling completion of this
document without the Commission deriving satisfaction from the
comments included :replies were rarely exhaustive and referred more
tobudget technicality than tothebasic problem .
While recognizing the difficulty of indicating complementary
character ,the Commission has the impression that alarge part of
ERDF contributions are entered asglobal receipts inthe overall
national budget oftheMember State inquestion .TheStates maintain
that inpreparing this budget ,they have already taken account of
funds derived from theERDF with regard toregional policy .
CHAPTER III :FUND ACTIVITIES IN1980 27

Moreover ,ithasbeen possible toconfirm complementary character in
infrastructure projects inacertain number ofcases with ERDF
payments being transferred directly totheinvestor ortoregional or
local authorities .This occurs particularly inserveral Mezzogiorno
regions .For industrial projects allMember States have continued to
treat assistance for industrial projects aspart repayment of
national aids .
USE OFCOMMITMENT APPROPRIATIONS
58.Total Fund grants analysed inprevious paragraphs (assistance for
investments and studies )have led in1980 to1,137.785 MEUA (2l)of
commitment appropriations being actually absorbed out of1,169.641
available .
Table 6
Level ofuse and balances available end 1980
Member StateCommitment
Appropriât ions
available 1980
(1)Commitments
appropriatedLevel
ofBalance
available
Belgium 21 .909 11.632 53 10.277
Denmark 15.771 11.957 76 3.814
Germany 73.511 69.023 94 4.487
France 206.444 194.793 94 11.650
Ireland 77.183 76.942 100 0.241
Italy 474.101 473.867 100 0.234
Luxembourg 1.082 0.485 45 0.596
Netherlands 22.350 22.260 100 0.090
U.K. 277.291 276.825 100 0.465
EUR 9 1,169.641 1,137.785 97 31.855(1 )
(1)Includes the carry forward from 1979 to 1980 ,withdrawal
transactions ,adjustments for exchange rate variations and 45MEU
deriving from the "quota free "section .
21Taking account ofthenature andpurpose ofthis section ,therate of
exchange used here isthe effective rate used for commitment
appropriations ,which explains possible differences with other data
inchapters IIIand IV.Taking account ofthesmall size ofthese
differences ,which innoway affects thesizes given ,ithasseemed
preferable tokeep tothe analysis ofFund activities inthese
Chapters asshown ininterim documents distributed before the
exchange rate used inpoint 19wasknown .
28 ERDF

59.The reasons why some Member States have not used the full credits
available are :
•some countries have notapplied fortheir full entitlement ;
•some applications have arrived late ;
•some projects are still being investigated due toinsufficient
information :
• the limited Luxembourg quota only allows for assisting one
project ;cross checks fortwoamounts isnotalways possible .
60.Ifthewhole period 1978-1980 isconsidered ,itcanalso beconfirmed
that each Member State has used virtually its full credit
entitlement .Only Belgium ,Luxembourg and toasmaller extent
Denmark aremarkedly below 100%.
FUND COMMITTEE ACTIVITY IN1980
61.The Fund Committee held three meetings in1980 inApril ,July and
December .In accordance with Article 16(2 )of the amended
Regulation ,these meetings have inthe first place assured the
opinion oftheCommittee ondraft decisions forFund assistance .The
table below gives acertain number ofquantitative facts onthis
activity oftheCommittee .
Table 7
Draft decisions Dresented tothe Fund Committee
in1980
1980 meetings
April July Decern . 1980
Number ofdraft decisions 68 91 221 380
No.ofinvestment projects 316 647 1.539 2.502
Volume ofinvestments (MEUA ) 2.315 1.764 5.233 9.312
Volume oftotal contribution
proposed (MEUA ) 241 ,07 200,91 701 ,88 1.143,86
CHAPTER III :FUND ACTIVITIES IN1980 29

62.Thesimplified procedure laid down intheamended Fund Regulation has
continued toassist consultation oftheFund Committee ,especially
ofless than 10MEUA (22).
However ,thefact that nearly all projects and aids proposed had to
beexamined atthe last meeting oftheFund Committee isasource of
imbalance inthe organisation ofthe Committee 'swork and the
preparation ofmeetings ,which could indue course lead toserious
difficulties inparticular with regard toFrench and Belgian
applications .TheCommission has inconsequence drawn theattention
ofMember States totheneed ofbetter scaling throughout theyear in
the despatch oftheir applications forassistance toensure better
distribution oftheCommittee 'stasks also throughout theyear .
At its last meeting in1980 ,the Committee also gave informal
examination tothefirst twelve draft decisions affecting Greece .
63.Inthecourse ofitsthree meetings in1980 ,theCommittee considered
the Commissions 'sproposals on several basic questions ,in
particular the adjustment oftheERDF aid rate for investments in
infrastructure .Generally speaking ,these discussions provided
clarification oncertain future guidelines and anagreement on
principles anddetailed rules governing this adjustment wasreached .
The Committee also continued todiscuss the matter of"advance
factories ".
30Article 5(2)b )oftheRegulation .
ERDF

SUMMARY OFTHE SITUATION 1975-1980
64.Thefollowing table gives themain features oftheFund fortheyears
1975-1980 .
Table 8
Summary ofdecisions ongrants 1975-1980
Member State Number Grants made Investments (A)
grant
decis .
(B) Indus . Infr . Indus . Infr .
Belgium 38 18.51 32.83 286.90 124.58 5,206
(232)
Denmark 64 6.33 40.05 91.54 199.78 3,302
(342)
Germany 435 152.75 132.01 3,917.88 638.29 54,255
(1318 )
France 426 208.82 417.54 3,681.42 1,789.52 128,038
(1755 )
Ireland 81 78.81 148.95 1,630.79 1,372.71 35,083
(558)
Italy 363 249.13 1,148.00 1,633.37 9,589.20 58,139
(4506 )
Luxembourg 5- 3.43- 24.03-
(6)
Netherlands 21 12.51 58.54 133.45 345.99 1,155
(34)
U.K. 561 348.41 535.10 3,771.51 4,976.51 112,368
(2294 )
1,994 1,075.27 2,510.45 15,146.86 18,760.92 397,546
(11.745 )
(A)Maintained byinves .ind .services
(B)Projects inbrackets .
65.Themain features ofthis activity summarised have been :
•Since its creation ,theFund has taken 1,994 grant decisions
corresponding toassistance for 11745 investment projects
representing atotal investment of33,908 MEUA .
•Contributions granted may becalculated at3586 MEUA ofwhich
70.0 7>went toinfrastructure projects and30.0 %toindustrial
and service projects .52%ofgrants went toprojects ofmore
than 10MEUA and427.toprojects ofless than 10MEUA .
CHAPTER III :FUND ACTIVITIES IN1980 31

•Projects assisted inindustry and services should create or
maintain some 400,000 jobs .Inrelation tothenumber ofprojects
financed ,sectors having benefitted most from Fund aid for the
large projects are themotor vehicle industry andconstruction
and the metal construction ,food industry and electrical and
electronic engineering industries forsmaller projects .
•The greater number ofinfrastructure projects since 1975 tohave
received Fund assistance were for equipping industrial estates
and road infrastructure where major projects were concerned .
Small infrastructure projects varied between energy output ,
telecommunications and also infrastructure for industrial
estates .
66.The following table gives anoutline ofcommitment appropriation
balances available annually since theFund wascreated .
Table 9
Trend inbalances carried forward since 1975
Year Commitment appropriated Com .appropr .
appropriât ions carried forw .
MUA MEUA MUA MEUA MUA MEUA
1975 300.00 292.86 7.14
1976 500.00 494.67 12.47
1977 500.00 501 .78 15.03(3 )
1978 581 .00 552.55(1 ) 43.48
1979 900.00 940.26(1 ) 3.22
1980 1,151.75(2 ) 1,123.11(1 ) 31.86
(1)Including withdrawals andadjustments forexchange rate varations
(2)Including 45MEUA deriving from the "quota free "section
(3)Conversion of10.69 MUA into MEUA atJanuary 1978 rate >
32 ERDF

INTEGRATED OPERATIONS OFREGIONAL DEVELOPMENT
67.Afirst experience ofanintegrated operation was launched bythe
Commission atthe end of1979 inthe Naples area ,including the
province ofNaples and the immediate hinterland .This area was
selected ,inagreement with the Italian Government because ofthe
serious problems ofunemployment and lack ofpublic equipment .This
situation has also worsened considerably since the recent
earthquake .
68.The aims and measures inquestion have been defined inabasic
operational file prepared inclose conjunction with the national
organisations concerned .The Minister for the Mezzogiorno ,the
Cassa per ilMezzogiorno ,the Campania region ,the Naples Comune
(local authority )aided bythe Commission ,inparticular bythe
Directorate General forRegional Policy .
The operation will becarried out byatechnical working group ,
formed inOctober 1979 ,atafirst meeting ofthose responsible for
theoperational policy ,namely theEuropean Commissioner responsible
for regional policy and coordination ofCommunity Funds ,the
Minister for theMezzogiorno ,the Pi-esident oftheCampania region
and theMayor ofNaples .
The group ,which consists ofrepresentatives ofthe .authorities
mentioned above ,has met several times in1980 .It isthis
co-ordination of Community and national intervention ,making
possible closely concerted action ,which constitues oneofthemajor
advantages oftheintegrated operation .
CHAPTER III :FUND ACTIVITIES IN1980 33

69.In1980 thefollowing measures were adopted :
1.atCommunity level
•TheERDF granted assistance ofL.76,000 million (cleansing
the Bay of Naples ,water supply ,infrastructure for
industrial estates ,road links andinvestments inindustry ).
Itshould benoted that for thenewaqueduct intheNaples
area theERDF decided in1980 togrant L.92,000 million of
which 19,000 were committed in1980 andthebalance of73,000
atthe start of 1981 because ofinsufficient commitment
appropriations in1980 .
Thetotal cost ofinvestments aided bytheERDF wastherefore
some L.500 ,000million .
•The Social Fund granted assistance ofL.1,600 million fora
vocational training programme for20small local industries .
The ECSC made aloan (Article 56oftheECSC Treaty )of
L.240,000 million forrestructure oftheBagnoli steel works
and aglobal loan ofL.15,000 million (Article 56oftheECSC
Treaty )intended forsmall industrial investments .
The Community Fund insupport ofdevelopment for new sources
ofenerev eranted L.1,200 million toaproject fordeveloping
ageothermal deposit close toNaples designed toproduce
electricity .
2.atnational level
The Cassa per ilMezzogiorno has provided for financial
commitments ofL.1,000 ,000 million for cleansing the Bay ,for
transport systems , water supply , industrial estates
infrastructure .
TheCampania region hasprovided initsbudget forcommitments of
L.860,000 million ofwhich L.760,000 million for housing
construction .
The Naples Comune committed L.196,000 million insectors :
public buildings ,housing ,health andhygiene .
70.The 1981 aid programme istoconcentrate ,apart from thepriority
sectors already planned inthebasic operational file (transport ,
health-hygiene and employment )on the urban cleansing sector
(priority aids following theearthquake ).
71.Asecond pilot experiment concerns Belfast ,Northern Ireland ,an
area also faced with serious economic problems andmatters ofurban
cleansing .This hasbeen finalised andwill probably belanched in
1981.
34 ERDF

CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY
GEOGRAPHICAL CONCENTRATION OFAIDS
72.Table 5inannex shows theregional distribution ofaids granted by
theFund from 1975 to1980 .
73.TheFund Regulation requires that regions andareas eligible forFund
assistance must beconfined toaided areas decided byMember States
when applying their aid rules forregional policy purposes.' However
togive maximum impact toFund aids ,priority must begiven to
investments located inpriority areas atnational level ,taking
account of the principles governing coordination ofaids for
regional policy purposes atCommunity level .Thesituation in1980
fortherespective Member States inthis context was :
•For Belgium .Fund aids were located inthe areas covered bythe
Commission decision of26April 1972 (OJL105of (23)onaids
granted according tothe Belgian Law of30December 1970 on
economic growth .
•ForDenmark .64.27 7„ofFund contributions went toGreenland .
•For Germany .85.50 Xofcontributions went toBerlin ,tothe
Zonenrandgebied (zone frontier area )and the special priority
development poles (those benefitting from aids at20%).
•For France .86.2 Xofcontributions went tothepriority regions
ofNord -Pas-de-Calais, Lorraine ,Western and South Western
France ,Corsica and theoverseas departments .
•For Ireland .53.6 7>ofprojects were located inthe "designated
areas "located mainly inthewest ofthecountry .
•For Italy .967,ofFund aids went tothe Mezzogiorno with the
remainder tothe Friuli-Venezia -Guilia areas hitbythe 1976
earthquake (this wasthethird Fund aid togotothese regions ).
23 OJL105of4.5.1972 .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 35

MAP 1 :REGIONAL FUND AID 1975 -1980
36 ERDF

•For theNetherlands .100%ofFund aids went totheonly two
priority areas intheNorth andSouth ofthecountry .
• For the United Kingdom ,some 79.7 %ofcontributions went to
projects inpriority areas :Northern Ireland ,the Special
Development Areas and theDevelopment Areas ,
Ingeneral ,the Commission considers that planned concentration on
priority regions indicated innational aidrules issatisfactory and
should becontinued .
FUND ACTIVITY INCERTAIN PRIORITY AND OTHER REGIONS
74.This part ofthe report indicates ,aswas the case with previous
annual reports ,the activity oftheFund inacertain number of
regions .These regions have been selected according tothefollowing
criteria :
•Inthe first place ,the regions included inthe five areas
recognized aspriority bythe Commission in"Guidelines on
Regional Policy "June 1977 (24)namely :
- Mezzogiorno (2S)
Abruzzi
Basilicata
Calabria
Campania
Molise
Apulia
Sardinia
Sicily
- Ireland
- Northern Ireland
- Greenland
-French overseas department (DOM)
•Secondly ,theregion ofeach Member State (Luxembourg excepted )
tohave received most intheform ofFund aid inproportion to
its population over the 1975-80 years .However ,tolimit
duplication ,ifaprevious report has analysed the region in
question ,itwill bereplaced where feasible bythe region in
second place .Thefollowing are therefore selected :
-Brittany
– South Limburg
– Flanders
- Wales
-Heide-Elbufer (Lower Saxony )
24Supplement 2/77-EC Bulletin
25TheMezzogiorno includes southern Italy and theIslands ;regions are
excluded ,which areonly partly included intheMezzogiorno :Latium ,
Marche ,Tuscany .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 37

75.Each region isanalysed asfollows :
•anindication isgiven ofthesize ofnational aids (26)andof
Community aids (27)intheir entirety over recent years .
•asummary analysis ismade ofRegional Fund activity in1980 .
The Commission does not possess for all regions full ,exact and
comparable data onaids from national authorities (28).Thefigures
shown are therefore only approximate estimates .Thecontributions of
the Regional .Fund and other Community financial instruments may
nevertheless beassessed inrelation tothese size categories .
TheMezzogiorno analysis includes asection onthis major region asa
whole ,followed bysections oneach administrative region within the
Mezzogiorno .For the other countries concerned ,there isonly one
section perregion .
76.Thefollowing table summarises ,for theregions considered ,theaid
provided from the Regional Fund and certain social and economic
indicators .Asshown inpoint 72,the total amounts ofFund
assistance inalleligible regions appear inTable 5oftheAnnex .
26The volume ofexpenditure incurred bynational authorities hasbeen
converted into EUA atthe average rate foreach year considered .It
must bestressed that the consequential figures are only size
categories .Nevertheless they enable assessment ,foreach region ,of
theimportance ofRegional Fund aids .
27EAGGF :Guidance Section measures according toRegulations 17/64/EEC
and335/77/EEC .
EIB :
ECSC :Loans accord ing
28Point 33ofthis report .Individual loans (additionally credits issued from global
loans )granted according toArticle 130(a )oftheEECTreaty ;
(foradditional details seetheannual reports oftheEIB).
Loans according toArticles 54and56oftheECSC Treaty .
38 ERDF

Table 10
Fund Assistance .1975-1980 and main
social and economic indicators
Assistance
1975-1980
Total
MEUA/head
pop EUASocial and economic indicators
Pop .1980
1000 pop .Km2
(1) (2)Unempl .
index
1979(3 )GDP/head Index
1977(4 )
purch .power party
EUA
ABRUZZI
BASILICATA
CALABRIA
CAMPANIA
MOL ISE
APULIA
SARDINIA
SICILY
IRELAND
N.IRELAND
GREENLAND
D0M
BRITTANY
IIEIDE
ELBUFER
WALES
S.LIMBURG
FLANDRES86.97
33.73
126.35
314.43(5
22.79
162.12
106.80(5
211 .89
230.59(5
131.55
37.68(5 )
54.48
123.58
13.00
149.88
23.34
25.2670.65
54.58
61.25
58.23
68.64
41.86
67.25
42.78
69.64
85.48
753.60
45.40
46.94
14.33
54.15
21.96
5.401,231
619
2,063
5,400
332
3,873
1,588
4,953
3,311
1,539
50
1,200
2,633
907
2,768
1,063
4,675114
62
137
397
75
200
66
193
47
109
0.1
12
97
102
133
481
389143.9
243.9
312.2
268.3
122.6
165.9
239.0
156.1
192.7
170.7
±200.0
±488.0
107.3
±124.0
114.6
136.6
165.9.2
.4
.6
.4
.649.2
46.4
34.6
40.4
41.6
42.8
48.1
39.3
46.5
52.1
±60.0
±45.0
82.3
118.0
60.7
102.3
131.0
AVERAGE (6) 50.81 170 100 100
(1)Source :Periodical report :Table Annex 2.4
(2)Source :Periodical report :Table Annex 2.6
(3)Source :Periodical report :Table Annex 3.1
(4)Source :Periodical report :l'able 4.1
(5)Including contribution tostuties (seepoint 54ofthis report )
(6)Greenland andDOMexcluded
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 39

MEZZOGIORNO (2')
77.It isnot possible toobtain anexact indication ofpublic
expenditure amounts intheMezzogiorno .However ,onemayestimate
very approximately that the volume ofcapital expenditure for
certain public administrations (30)from 1974-1979 issome 19,691
MEUA ofwhich 7,803 MEUA are for aids bythe Cassa per il
Mezzogiorno .Community aids inthe Mezzogiorno over 6years of
Regional Fund activity (1975-80 )must beassessed inrelation to
these size categories .
Grants
•Régional Fund
•Guidance Section -Agricultural Fund
•European Social Fund
Loans
•European Investment Bank 2928.2 MEUA
•NewCommunity Instrument 106.3 MEUA
•ECSC 284.2 MEUA
Regional Fund activity in1980
78.Regional Fund assistance throughout the Mezzogiorno in1980 was
476.94 MEUA ;31.49 MEUA ofthis total went tothree regions (Latium ,
Marche ,Toscana ),which areonly partly included intheMezzogiorno
andwhich donottherefore appear inthemore detailed analyses which
follow (32).Some two thirds ofaids toItaly concern projects
achieved and financed bytheCassa per ilMezzogiorno ,thecentral
organisation responsible for Mezzogiorno development .The other
third consists ofprojects conceived ,carried out and financed by
regional andprovincial authorities orbyother public organisations
oflocal character ,thereby achieving real complementary character
ofakind that does notalways appear atnational level .This form of
aid ,almost inexistant until 1977 ,hasdeveloped considerably inthe
last three years due to promotional activity byCommission
departments with local authorities ofthecountry .
29Point 74,footnote 25ofthis report .
30Cassa per ilMezzogiorno :all expenditure save that which cannot be
regionalised e.g. interest rebates ;regions :committed costs in
budget estimates .
311978-80 figures
32 Itshoud benoted that theonly region tobenefit from Fund aid in
1980 outside theMezzogiorne wasFriuli-Venezia Giulia (seetable 5in
annex ).1364.0 MEUA
211.9 MEUA
468.0 MEUA (31)
2928.2 MEUA
106.3 MEUA
284.2 MEUA
40 ERDF

ABRUZZI
79.During the years 1974-1979 ,capital expenditure ofItalian public
authorities can beestimated very approximately at1,339 MEUA .650
MEUA ofthis amount areaids bytheCassa per ilMezzogiorno .
Community aids over the six years ofRegional Fund activity
(1975-1980 )must beassessed inrelation tothese size categories :
Grants
•Régional Fund 87.0 MEUA (33)
•Guidance Section-Agricultural Fund 18.8 MEUA
Loans
•European Investment Bank 244.8 MEUA (34)
'Regional Fund activity in1980
80.In1980 ,Regional Fund aids totheAbruzzi were 8.67,oftotal aids
toItaly .Total contributions made to92projects were 42.76 MEUA of
which 33.74 MEUA (78.9 %)were for industrial activities and 9.02
MEUA (21.1 %)were forinfrastructure projects .
Industrial and service activities
81.Aproject ofmore than 10MEUA was assisted tocreate afactory to
manufacture light utility motor vehicles inChieti province .The
investments cost was 188.24 MEUA and theaidgranted was27.40 MEUA .
This investment should create some 3,000 jobs .Moreover ,47projects
ofless than 10MEUA were assisted for atotal investment of34.65
MEUA and should create some 1,200 jobs .For investment volume the
engineering and engineering parts sector was inthe lead followed
metal manufactures andprocessing ofnonmetallic minerals .
Infrastructure projects
82.Aproject ofmore than 10MEUA wasassisted onplanning theAtessa
industrial estate inChieti province .Theaidgranted was4.36 MEUA
and the investment concerned was 14.94 MEUA .Inaddition ,theFund
aided 44projects ofless than 10MEUA for atotal investment of
17.50 MEUA andatotal Fund contribution of9.02 MEUA .These projects
were concerned essentially with water supply ,railway infrastructure
anddrainage .
33This amount does not include aids granted tomultiregional projects
also ofinterest totheAbruzzi (seetable 5inannex ).
34Individual loans :211.5 MEUA :assignments onglobal loans :33.3
MEUA
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 41

BASILICATA
83.For the years 1974-1975 ,capital expenditure ofItalian public
authorities can beestimated very approximately at1,320 MEUA .Of
this amount ,613MEUA were aids from theCassa per ilMezzogiorno .
Community aids over the six years ofRegional Fund activity
(1975-1980 )must beassessed inrelation tothese size categories .
Cirants
•Régional Fund 34.0 MEUA (35)
•Guidance Section-Agricultural Fund 20.8 MEUA
Loans
•European Investment Bank 110.0 MEUA (36)
Regional Fund activity in1980
84.In1980 ,Regional Fund aids toBasilicata were 2.6%oftotal aids to
Italy .Total contributions made to209 investment projects in
infrastructure were 12.75 MEUA ofwhich 74.5 Xwere for projects
carried outbyregional orlocal authorities .The 209projects were
of less than 10MEUA for atotal investment of42.96 MEUA .For
investment volume ,water supply mains were inthe lead followed by
road and service infrastrucutre for the civil population (general
infrastructure ).
CALABRIA
85.During the years 1974-1979 ,capital expenditure ofItalian public
authorities can beestimated very approximately at2,014 MEUA .983
MEUA ofthis amount are aids bythe Cassa per ilMezzogiorno .
Community aids over thesixyears ofRegional Fund activity (1975-80 )
must beassessed inrelation tothese size categories .
Grants
•Régional Fund 126.0 MEUA (37)
•Guidance Section -Agricultural Fund 20.8 MEUA
Loans
•European Investment Bank 185.0 MEUA (38)
35This amount does not include aids granted tomultiregional projects
also ofinterest toBasilicata (seetable 5inannex ).
36Individual loans :104.1 MEUA ,assignment onglobal loans 5.9MEUA .
37This amount does not include aids granted tomultiregional projects
also ofinterest toCalabria (seetable 5inannex ).
38Individual loans :176.8 MEUA :assignments onglobal loans 10.2 MEUA .
42 ERDF

Regional Fund activity in1980
86.In1980 ,Regional Fund aids toCalabria were 13.9 %oftotal Fund
aids toItaly .Total contributions made to345 investment projects
were 69.07 MEUA ,ofwhich 34.7 1/2were forprojects carried outby
regional orlocal authorities .Three projects were assisted ofmore
than 10MEUA .They are involved with constructing three dams and
reservoirs in the provinces ofCatanzaro ,Cosenza and Reggio
Calabria .Aids granted were 43.90 MEUA for investments of110.42
MEUA .342projects ofless than 10MEUA represent atotal investment
of 84.86 MEUA have also received Fund aid of25.17 MEUA .For
investment volume ,road infrastructure projects are inthe lead
followed bywater supply and service infrastructure for the civil
population .
CAMPANIA
87.During the years 1974-79 ,capital expenditure ofItalian public
authorities canbeestimated very approximately at3,097 MEUA .1499
MEUA ofthis amount are aids bythe Cassa per ilMezzogiorno .
Community aids over the six years ofRegional Fund activity
(1975-1980 )must beassessed inrelation tothese size categories :
Grants
•Régional Fund 313.0 MEUA
•Guidance Section-Agricultural Fund ' 17.4 MEUA
Loans
•European Investment Bank 391.6 MEUA (39)
Regional Fund activity
88.In1980 ,Regional Fund aids were 22%oftotal Fund aids toItaly .
Total grants to291projects were 105.97 MEUA ofwhich 7.54 MEUA (7
%)were for industrial activities and 98.43 MEUA (93X)went to
infrastructure projects .24.6 %ofFund aids went toprojects carried
out byregional orlocal authorities .Additionally ,the Fund gave
assistance to7studies closely linked toFund operations (40);aid
here was 4.15 MEUA .Campania was the Italian region ,which
benefitted most in1980 from Fund assistance .Itshould bestressed
inthe connection that the Campania region receives ,through the
Naples integrated operation (**), special andconverging aids from
theERDF andother Community financial instruments .
39Individual loans 343.8 MEUA :assignments onglobal loans 47.8 MEUA .
40Point 54ofthis report .
Point 67ofthis report .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 43

Industrial and service activities
89.35projects ofless than 10MEUA were assisted ,representing atotal
investment of40.19 MEUA and should create some 1,400 jobs .For
investment volume ,the electrical and electronic sector was inthe
lead followed bythesector forprocessing nonmetallic minerals and
metal manufactures .
Infrastructure
90.Sixprojects ofmore than 10MEUA were assisted foraninvestment of
376.63 MEUA with anaid contribution of63.57 from theFund .They
concerned adam and reservoir project onthe river Tamaro inthe
province ofBenevento ,building asection ofaroad link atNaples ,
establishing apurification plant atPunta Gradella inNaples ,road
works included inthe Special Project for themetropolitan area of
Naples ,basic urban public works for thenewNapolitan town centre
andbuilding thewestern Campania aqueduct .
250 projects ofless than 10MEUA also received Fund aid of34.86
MEUA .Total investment cost was 109.44 MEUA .For investment volume ,
drainage was inthe lead ,followed bywater supply and port
installation .
M0LISE
91.During the years 1974-1979 ,capital expenditure ofItalian public
authorities canbeestimated very approximately at349MEUA .120MEUA
ofthis amount were aids bytheCassa per ilMezzogiorno .Community
aids over thesixyears ofRegional Fund activity must beassessed in
relation tothese size categories :1975-1980 .
Grants
•Régional Fund 23.0 MEUA
•Guidance Section-Agricultural Fund 1.8MEUA
Loans
•European Investment 71.4 MEUA (*2)
Regional Fund activity in1980
92.In1980 ,Regional Fund aids toMolise were 0.8%oftotal Fund aids
toItaly .Total contributions made to7infrastructure projects were
3.81 MEUA .
Noproject ofmore thatn 10MEUA wasassisted in1980 .The 7projects
for less than 10MEUA involve atotal investment of12.45 MEUA .For
investment volume ,the projects involve mainly service
infrastructure forthecivil population andfordrainage .
42Individual loans :66.9 MEUA :assigments onglobal loans 4.5MEUA
44 ERDF

APULIA
93.During the years 1974-1979 ,capital expenditure ofItalian public
authorities can beestimated very approximately at2,996 MEUA .1,541
MEUA ofthis amount were aids bythe Cassa per ilMezzogiorno .
Community aids over the six years ofRegional Fund activity
(1975-1980 )must beassessed inrelation ofthese size categories :
Grants
Regional Fund aid
Guidance Section -Agricultural Fund162.0 MEUA (43)
23.7 MEUA
Loans
European Investment Bank
NewCommunity Instrument
ECSC801.4MEUA (♦«)
52.1 MEUA
261.0MEUA
Regional Fund activity in1980
94.In1980 ,Regional Fund aids toApulia were 6.8%oftotal Fund aids
toItaly .Total contributions to80projects were 33.53 MEUA ofwhich
8.62 MEUA (25.7 X)were for industrial activities and 24.90 MEUA
(74.3 %)for infrastructure .217„ofFund aids went toprojects
carried outbyregional orlocal authorities .
Industrial and service activities
Aproject ofmore than 10MEUA was assisted ,which istoextend a
factory manufacturing injection equipment formotor vehicles inBari
province .Thevolume ofinvestment was27.60 MEUA andtheaidgranted
was 3.86 MEUA .This investment should create some 200 jobs .
Additionally ,19projects ofless than 10MEAU were assisted fora
total investment of24.36 MEUA anddesigned tocreate some 700jobs .
For volume ofinvestment ,the sector for the manufacture ofmetal
goods isinthe lead followed byprocessing ofnonmetallic minerals
andthemanufacture ofrolling stock .
Infrastructure
95.Aproject ofmore than 10MEUA wasassisted tocomplete water supply
and distribution works inthe province ofFuggia .Aid granted was
11.38 MEAU for aninvestment of28.45 MEUA .These works fall within
theframework ofthe Special Project oftheCassa per ilMezzogiorno
for the use between sectors ofthe water supply oftheApulia and
Basilicata regions .Inaddition ,the Fund assisted 59projects of
less than 10MEUA for atotal investment of45.08 MEUA with anaid
contribution of13.53 MEUA .These projects areconcerned essentially
with road infrastructure ,drainage and service infrastructure for
thecivil population .
43This amount does not include aids granted tomultiregional projects
also ofinterest toApulia (seetable 5inannex ).
**Individual loans :774.2 MEUA :assignments onglobal loans 27.2 MEUA
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 45

SARDINIA
96.During theyears 1974-1979 ,capital expenditure ofItalian public
authorities can beestimated very approximately at1,727 MEUA .989
MEUA ofthis amount are aids bythe Cassa per ilMezzogiorno .
Community aids over the six years (1975-1980 )ofRegional Fund
activity must beassessed inrelation tothese size categories :
Grants
•Régional Fund
•Guidance Section -Agricultural Fund
Loans
•European Investment Bank 264.2 MEUA (45)
Regional Fund activity in1980
97.In1980 ,Regional Fund aids toSardinia were 4.87oftotal Fund aids
toItaly .Total contributions made to158 investment projects in
infrastructure were 21.62 MEUA ,ofwhich 217were for projects
carried outbyregional orlocal authorities .Inaddition ,theFund
assisted 6studies financially closely linked with Fund operations
(46);theaid inquestion was 2.00 MEUA .Noproject ofmore than 10
MEUA was assisted in1980 .138projects ofless than 10MEUA received
total Fund aid of21.21 MEUA for atotal investment of73.08 MEUA .
For investment volume ,road infrastructure was inthe lead followed
byport installation works ,service infrastructure for thecivil
population and water supply .Inaddition ,theFund aided 20public
projects inless favoured agricultural areas (47)tothe tune of
410,000 MEUA .These projects were essentially forrural electricity
supply .
48Individual loans 244.5 :assignments onglobal loans 19.7 MEUA .
46Point 54ofthis report .
47Within themeaning ofDirective 75.268 (EEC). (Article 4.1.c .ofthe
fund Regulation )Itshould benoted that thefigure (20projects )
above mentioned atpoint 97underestimates thenumber ofprojects in
mountain areas assisted bytheFund since some projects inthese areas
were aided byway ofdecisions according toArticle 4.1.b .Thesame
applies tocertain other Mezzogiorno regions .107.0 MEUA
14.3 MEUA
46 ERDF

SICILY
98.During the years 1974-1979 ,capital expenditure ofItalian public
authorities canbeestimated very approximately at6,126 MEUA .1,339
MEUA ofthis amount were aids bytheCassa per ilMezzogiorno .
Community aids over thesixyears 1975-80 ofRegional Fund activity
must beassessed inrelation tothese size categories .
Grants
•Regional fund 211.0 MEUA
•Guidance Section -Agricultural Fund 27.9 MEUA
Loans
•European Investment Bank
•NewCommunity Instrument
• ECSC
Regional Fund activity in1980
99.In1980 ,Regional Fund aids onbehalf of78projects inSicily were
14.3 7„oftotal Fund aids toItaly .Total contributions were 70.85
MEUA ofwhich 4.46 MEUA (6.3%)were for industrial activities and
66.39 MEUA (93.7 %)forinfrastructure .77XofFund assistance went
toprojects carried outbyregional orlocal authorities .
Industrial and service activities
100 .Only 17projects ofless than 10MEUA were assisted for atotal
investment of22.76 MEUA creating some 600 jobs .For investment
volume ,projects inthemetal production andproduction sector were
inthe lead followed bythe sectors forprocessing ofnonmetallic
minerals andfood products .
Infrastructure projects
101 .Three projects ofmore than 10MEUA were assisted foraninvestment
of168.14 MEUA for which the aid contribution was 45.90 MEUA .They
concerned construction ofdams and reservoirs onthe S.Leonardo and
Irminio rivers ,respectively intheprovinces ofPalermo andRagusa ,
road infrastructure andenergy conveyance for several provinces and
localities ,falling within development plans for rural roads and
rural electricity .
Inaddition ,Fund aids went to58projects ofless than 10MEUA
amounting to20.49 MEUA .For investment volume ,water supply was in
the lead followed bytourism facilities and service infrastructure
for thecivil population .
Individual loans 474.1 MEUA :assigments onglobal loans 28.8 MEUA .
49Including aloan of41.7 MEUA also ofinterest toCalabria for
constructing theItaly /Algeria gaspipe line .502.9 MEUA («•)
54.2 MEUA («*)
6.5MEUA
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 47

MULT IREGIONAL PROJECTS INITALY
102 .Two investment projects ininfrastructure ofmore than 10MEUA
concerning 2ormore Mezzogiorno regions were aided bytheRegional
Fund in1980 .
One decision toaid concerned thesecond phase financing ofavery
major project designed asawhole toinstall anatural gaspipe line
toimport natural gasinto Italy from Algeria ;this included thework
needed for use ofthe gas inMezzogiorno regions and the link with
the distribution system inthe North ofItaly with themain import
pipeline .Total investment is 3,189.09 MEUA and the Fund
contribution in1980 was 66.93 MEUA .This project wasthesubject of
afirst Fund decision in1979 for43.86 MEUA .
The other major infrastructure project assisted concerned theApulia
andBasilicata regions andwas toconstruct thefirst section from S.
Venere attheLocone reservoir ofawatersupply main tothecoast at
Bari .Total investment was 23.54 MEUA and the Fund contribution was
9.42 MEUA .
Additionally ,theFund assisted infinancing 4projects ofless than
10MEUA for atotal investment of6.5MEUA .Thecontribution was 2.59
MEUA .These projects were forwater supply works falling within the
Velino water plan ofservice tothemountain areas ofLatium andthe
Abruzzi .
103 .During theyears 1975-1979 ,theexpenditure onaid toindustry bythe
Irish authorities was some 900MEUA intheform ofgrants .Moreover ,
public investments ininfrastructure were 1,298 MEUA .Community
aids ,which must beassessed inrelation tonational aids ,were as
follows over theyears 1975-80 :IRELAND
Grants
•Régional Fund
•Guidance Section-Agricultural Fund
•European Social Fund320.0 MEUA
60.5 MEUA
182.7 MEUA (50)
Loans
European Investment Bank
NewCommunity Instruments
ECSC856.3 MEUA
128.4 MEUA
17.5 MEUA
50 1978-80 figures .
48ERDF

Regional Fund activity in1980
104 .In1980 ,Fund aids onbehalf of35projects inIreland were 77.82
MEUA ofwhich 9.91 MEUA (12.7 %)were for industrial activities and
67.91 MEUA (87.3 %)were for infrastructure .The fund also helped
tofinance astudy closely linked tothework oftheFund (5I)with
aidamounting to740,000 EUA .
Industrial and service activities
105 .Two projects ofmore than 10MEUA were assisted for atotal
investment of584.30 MEUA and aFund grant of5.63 MEUA .These
projects should create some 1,400 jobs .They involve thebuilding of
twofactories ;one toproduce aluminium from bauxite intheCountry
ofLimerick and theother toservice aircraft engines atDublin .
Moreover ,8projects were assisted ofless than 10MEUA foratotal
investment of 33.18 MEUA and creating some 2,000 jobs .For
investment volume ,projects in the electrical and electronic
engineering sectors were inthe lead followed bymanufacturing
industry and themotor vehicle sector .
Infrastructure projects
106 .Fourtheen projects ofmore than 10MEUA were assisted for an
investment of1,006.33 MEUA with anaidcontribution of66.48 MEUA .
Theprojects were :
•modernising theDublin sururban railway andelectrification of
thesection Bray-Howth ;
•developing thetelecommunications network ;
• improving national main and secondary road systems and making
certain improvements inurban areas ;
•drainage works forwater supply systems intheMaigue andBoyne
catchment areas (2projects );
•construction water supply mains anddrainage invarious parts of
thecountry (9projects ).
Inaddition ,11projects ofless than 10MEUA have received Fund aid
for atotal investment of6.89 MEUA .Fund aid was 1.43 MEUA .These
projects concern essentially theconstruction ofadvance factories .
51Point 54ofthis report .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 49

NORTHERN IRELAND
107 .During theyears 1975 /6-1978 /9,total national aidforindustry was
430 MEUA .Public investments ininfrastructure assisting economic
development -butalso thecivil population ingeneral ,were some 450
MEUA inthe twofinancial years 1978 /9and 1979 /80.Community aids
over sixyears ofRegional Fund activity 1975-80 must beassessed in
relation tothese size categories :
Grants
•Régional Fund 132.0 MEUA
•Guidance Section-Agricultural Fund 20.0 MEUA
•European Social Fund 107.1 MEUA (52)
Loans
•European Investment Bank 187.8 MEUA (53)
Regional Fund activities in1980
108 .In1980 ,Regional Fund aids toNorthern Ireland were 12.20 Xoftotal
Fund aid totheUnited Kingdom .Total aids to25projects were 29.61
MEUA ,ofwhich 11.42 MEUA (38.6 %)were forindustrial activities and
18.19 MEUA (61.4 %)were forinfrastructure projects .
Industrial and service activités
109 .Aproject ofmore than 10MEUA was assisted for extending afactory
producing motor vehice spare parts atBelfast .Investment was 32.41
MEUA and aid granted was 6.48 MEUA .This invest should create some
800jobs .Inaddition ,13projects were assisted ofless than 10MEUA
for atotal investment of24.75 MEUA andcreating nearly 1,300 jobs .
For investment volume ,the engineering and engineering material
sector was inthe lead followed bythe paper and manufacturing
industry .
Infrastructure projects
110 .Aproject ofmore than 10MEUA was assisted for building abridge
over the river Foyle atLondonderry .The contribution granted was
9.71 MEUA for aninvestment of24.28 MEUA .Inaddition ,the Fund
aided 10projects ofless than 10MEUA for atotal investement of
28.50 MEUA with anaidcontribution of8.48 MEUA .These projects were
essentially forport installation androad infrastructure .
52 1978-80 figures
53Individual loans 187.1 MEUA :assigment ofglobal loans :0.7MEUA .
50 ERDF

GREENLAND
111 .Public investments carried out bythe Greenland Ministry inthe
sectors ofhousing ,electricity ,transport andcommunications were
some 245MEUA during theyears 1975-1979 .Community aids over thesix
years ofRegional Fund activity 1975-1980 must beassessed in
relation tothese size categories .
Grants
•Régional Fund 37.0 MEUA
•Guidance Section-Agricultural Fund 1.6MEUA
•European Social Fund 15.1 MEUA (54)
Loans
•European Investment Bank 33.3 MEUA
Regional Fund activity in1980
112 .In1980 ,Fund aids forGreenland were 64,3 7«oftotal Fund assistance
forDenmark .Total contributions made to64projects were 7.82 MEUA
allofwhich ,asinprevious years ,were forinfrastructure .
Inaddition ,theFund assisted infinancing astudy closely linked to
Fund operations (5S)tothetune of0.58 MEUA .
Aproject ofmore than 10MEUA was assisted for building an
electrical power station with heat storage use potential .Aid
granted was 2.81 MEUA for investment of10.27 MEUA .Inaddition ,the
Fund assisted 63projects ofless than 10MEUA foratotal investment
of 15.23 MEUA .These projects were concerned essentially with
airport installation ,energy conveyance infrastructure and port
installation .
5*1978-80 figures .
55Point 54ofthis report .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 51

FRENCH OVERSEAS DEPARTMENTS (DOM )
13.Thefollowing figures ,although very incomplete ,give anindication
ofthesize ofaidbytheFrench authorities foreconomic development
ofthese four departments :
•special taxexemptions for productive investments (1976-77 ):
17.3 MEUA
•equipment grants (1975-78 ):19.3 MEUA
•infrastructure investments (1974-76 ):30.7 MEUA
Community aids for the six years ofRegional Fund activity (EUA
million )were :
Grants
Guadeloupe Martinique Reunion Guyane Total
-Regional Fund 16,48 16,49 12,97 8,54 54,48
-Guidance section EAGGF 0,65 6,34 2,20 0,75 9,94
-European Development Fund 0,56 0,51 0,70 0,47 2,24
-European Social Fund 72,1
Loans
-European Investment Bank 0,70_ – 0,50 1,20
-European Development Fund 1,40 1,53 2,25 0,01 5,19
Regional Fund activity in1980
14.In1980 Regional Fund aids for theoverseas departments were 15.7 %
oftotal Fund aids toFrance .Total aids to61investment projects in
infrastructure were 31.27 MEUA .Aids granted were divided between
0.59 MEUA for Guadeloupe ,4.93 MEUA for Guyane ,9.13 MEUA for
Martinique and7.62 MEUA forReunion .
Four projects ofmore than 10MEUA were assisted with aids of10.11
MEUA foraninvestment of25.26 MEUA .Two ofthese projects are for
telephone equipment ,twoother forport installation .Inaddition ,
57projects ofless than 10MEUA for aglobal investment of53.60
MEUA also received Fund aid of21.16 MEUA .For investment volume ,
telecommunications are inthe lead followed byroad infrastructure
andport installation .
61978 -1980 figures .
7Loans granted from the resources oftheEuropean Development Fund .
Pursuant toadecisions ofitsBoard ofGovernors of18March 1980 ,
theEIBmaynowaidtheDOMonthesame conditions asforother French
departments .
ERDF

BRITTANY
115 .During theyears 1975-1979 ,national aids forregional development
ofBrittany were 62.60 MEUA .The State contribution toregional
programme priority measures according totheVllth Plan (P.A.P.I.R. )
were 45.89 MEUA during theyears 1976-1980 .
Community aids for the six years ofRegional Fund activity must be
assessed inrelation ofthese size categories :
Grants
•Régional Fund 124.0 MEUA
•Guidance Section-Agricultural Fund 24.0 MEUA
Loans
•European Investment Bank 67.1 MEUA (58)
Regional Fund activity in1980
116 .In1980 ,Fund aids toBrittany were 18.8 Xoftotal Fund aids to
France .Total aids to25projects were 37.46 MEUA ,ofwhich 2.93 MEUA
(7.8 7o)were for industrial activities and 34.53 MEUA (92.2 %)were
for infrastructure .
Industrial and service activities
117 .Only projects ofless than 10MEUA ,23innumber ,for atotal
investment of36.45 MEUA ,were assisted .These should create some
1,700 jobs .For investment volume ,thefood secotr was inthe lead
followed bymetal work andchemicals .
Infrastructure projects
118 .Thefund assisted twoprojects ofmore than 10MEUA foraninvestment
of115.11 MEUA .These were substantial investments inroads (Breton
Plan )andtelecommunications .
58Individual loans 45.8 MEUA :assignments onglobal loans :21.3 MEUA .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 53

SOUTH LIMBURG (S9)
119 .National authorities expenditure for the South Limburg region for
theyears 1975-1979 was 76.24 MEUA forinvestment grants andsome 24
MEUA for improving infrastructure .Community aids during theyears
1975-1980 ofRegional Fund activity must beassessed inrelation to
thesize category :
Grants
•Régional Fund 24.0 MEUA
•Guidance Section-Agricultural Fund 3.2MEUA
Regional Fund Activity in1980
120 .In1980 ,Fund aids toSouth Limburg were 26.1 %oftotal Fund aids to
theNetherlands .Total grants (aids )were for 3investment projects
ininfrastructure of5.89 MEUA foratotal investment of19.64 MEUA .
Aproject ofmore than 10MEUA was assisted for building abridge
over theMeuse atMaastricht (first section ).The aid was 4.49 MEUA
and the investment 14.98 MEUA .The twoprojects ofless than 10MEUA
toreceive Fund aidwere for road infrastructure .
FLANDERS
121 .Only certain areas ofFlanders areeligible forregional aids .During
the years 1975-1979 ,these areas received 314.7 MEUA ofaids to
industrial investments according toBelgian Laws oneconomic growth .
Inaddition ,public investments for planning industrial sites were
108 MEUA between 1975-1979 .Itisnot possible tocalculate the
proportion ofother public investments ininfrastructure related to
economic development ,but itmaybementioned ,however ,that during
the years 1977-1979 ,investments intransport infrastructure alone
for the twoareas ofFlanders asawhole were some 1,900 million EUA .
Community aid toFlanders for 1975-1980 must beassessed inrelation
tothese size categories :
Grants
•Régional Fund 25.0 MEUA
•Guidance Section-Agricultural Fund 18.7 MEUA
•European Social Fund 182.7 MEUA
Loans
•European Investment Bank
• ECSC
s*The restructuring region ofSouth Limburg (Herstructureringsgebied
Zuid-Limburg )covers thesouthern part oftheNetherlands province of
Limburg .
60Individual loans :2.5MEUA :assignments onglobal loans :16.2 MEUA18.7 MEUA (60)
58.9 MEUA
54 ERDF

Regional Fund activity in1980
122 .In1980 ,Regional Fund aids toFlanders were 75.4 %oftotal Fund
aids toBelgium .Total aids to54projects were 8.96 MEUA ,ofwhich
6.78 MEUA (75.7 %)went toindustrial activities and2.18 MEUA (24.3
X)toinfrastructure projects .
Industrial and service activities
123 .Two projects were assisted ofmore than 10MEUA for atotal
investment of34.12 MEUA and receiving anaid of2.00 MEUA .These
projects should create some 100 jobs .They are tocreate a
petrochemical factory andachemical products factory intheHasselt
region .Inaddition ,19projects ofless than 10MEUA were assisted
for atotal invetment of56.39 MEUA andcreating some 800 jobs .For
investment volume ,the sector of electrical and electronic
engineering was inthe lead followed bymotor vehicles ,rubber and
plastics .
Infrastructure projects
124 .Only 33projects ofless than 10MEUA were assisted for atotal
investment of9.03 MEUA .These projects areessentially forplanning
industrial estates ,drainage andwater supply .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 55

MALES
125 .During theyears 1975 /76-1978 /79,total national aids toindustry
were some 440 MEUA .Public investments ininfrastructure for
economic development (butalso forthepublic ingeneral )were some
950MEUA over thetwofinancial years 1978 /79and1979 /80.Community
aids for thesixyears ofRegional Fund activity (1975-1980 )must be
assessed inrelation tothese size categories .
Grants
Régional Fund
Guidance Section-Agricultural Fund150.0 MEUA
3.6MEUA
Loans
•European Investment Bank
•NewCommunity Instruments280.2 MEUA (61)
79.4 MEUA
Regional Fund activity in1980
126 .In1980 ,Fund aids toWales were 27.5 Xoftotal Fund aid tothe
United Kindom .Total aids to104 projects were 66.4 MEUA ofwhich
38.95 MEUA (58.4 X)were for industrial activities and 27.69 MEUA
(41.6 %)forinfrastructure .
Industrial and service activities
127 .The Fund assisted two projects ofmore than 10MEUA for atotal
investment of87.70 MEUA andcreating some 250jobs .Theaidgranted
was 6.60 MEUA ;the projects are torestructure arolling mill to
increase itsoutput and tocreate acanning factory .Inaddition ,the
Fund assisted amajor industrial project inthemotor industry of
interest toWales and the North East .The relevant decision was
adopted in1979 foratotal amount of92.44 MEUA ,ofwhich 46.22 MEUA
were tobeallocated in1980 .33.35 MEUA went tothat part ofthe
project ofinterest toWales and 13.87 MEUA tothe part ofthe
project ofinterest totheNorth West .
Infrastructure projects
128 .The Fund assisted two projects ofmore than 10MEUA forroad works
and for aninvestment of46.33 MEUA .Aid granted was 3.52 MEUA .In
addition ,99projects ofless than 10MEUA were also assisted fora
total investment of119.93 MEUA .These projects concern essentially
road infrastructure ,advance factories and planning ofindustrial
estates .
61Individual loans 265.9 MEUA :assignments onglobal loans :14.3 MEUA .
56 ERDF

HEIDE-ELBUFER
129 .For the year 1975-1980 ,expenditure by the German Federal
authorities onthis programme region was ,asplanned intheregional
development programmes for the same period ,158,75 MEUA ofwhich
93.56 MEUA was for aid toproductive investment and 65.19 MEUA for
improving infrastructure .Community aid for this region during the
sixyears ofRegional Fund activity must beassessed inrelation to
these size categories :
Grants
•Regional fund 13.0 MEUA
Regional Fund activities in1980
130 .In1980 ,Fund aid to31projects located inthis programme region was
8.2%oftotal Fund aid toGermany .Total aids granted were 5.85 MEUA
ofwhich 5.03 MEUA (86.0 %)were for industrial activities and
820,000 EUA (14.0 X)were forinfrastructure .
Industrial and service activities
131 .The Fund assisted 2projects ofmore than 10MEUA for atotal
investment of33.45 MEUA and with aid granted of1.98 MEUA .These
projects should create some 100jobs .They involve theextension of
two factories :for spare parts for motor vehicles and for conical
ball bearings .Inaddition ,25projects ofless than 10MEUA were
assisted for total investment of50.63 MEUA and intended tocreate
some 900 jobs .For investment volume ,projects inthe metal
manufacture sector are inthe lead followed byrubber ,plastic
processing andpaper .
Infrastructure
132 .The fund assisted 4projects ofless than 10MEUA .Total investment
inthese projects was 4.65 MEUA for planning ofindustrial estates
andfordrainage .
CHAPTER IV :REGIONAL ANALYSIS OFFUND ACTIVITY 57

CHAPTER V :PAYMENTS AND CONTROLS
BUDGET RESOURCES AVAI LABLE AND FINANCIAL RESULTS
133 .The "quota free "section didnotgive rise tobudgetary operations in
1980 (62).This analysis offinancial management istherefore only
concerned with the "quota section ".
Having regard tobudget resources available for thefinancial year
1980 ,itwill benoted firstly that ,whereas the entitlement in
commitment appropriations adopted by the budget authority is
1,106.750 MEUA ,total credits finally available were 1,169.641 MEUA .
This difference ispartly due toadjustment andadaptation during the
year occasioned bypayment operations ofFund aids .These operations
areshown inpoints 134and 135following .
AstotheFund entitlement inpayment appropriations ,this wasfixed
bythe budget authority at392.375 MEUA towhich 323.043 MEUA were
added ,brought forward from the 1979 financial year tothat of1980
thereby bringing total payment appropriations initially available at
thebeginning ofthe 1980 financial year to715.418 MEUA .Attheend
of1980 ,anunused amount of16MEUA from the "quota free "section ,
already carried forward from 1979 to1980 ,wasalso added .Theuseof
payment appropriations is indicated inparagraphs 137 to140
following .
Table 6inannex gives anoutline ofthebudget situation attheend
ofthe1980 financial year .
134 .Theanalysis ofFund aids shown inChapter IIIhasindicated that ,in
1980 ,commitment appropriations tothe tune of1,137.785 MEUA were
absorbed and that abalance unused of31.885 MEUA remained in
relation tothecommitment appropriations available for 1981 ,namely
1,169.641 MEUA .Now ,available credits were 62.891 MEUA inexcess of
the annual budget entitlement ,namely 1,106.75 MEUA .Ifthis
difference ispartly explained bythecarry forward of3.221 MEUA of
credits from 1979 and bythe transfer ,atthe .end ofthe 1980
financial year of45MEUA unused from the "quota free "section ,it
should be observed here that adjustments for exchange rate
variations and withdrawal operations carried out during the
financial year affect the amount ofcommitment appropriations .
Adjustments for exchange rate variation ,which are inherent inthe
62Point 12ofthis report .
CHAPTER V:PAYMENTS AND CONTROLS 59

European monetary system ,may have an effect in certain
circumstances ofaffecting payments pursuant toArticle 9(6)ofthe
Fund Regulation will onbyaltering thecredits available .
Inthis way ,adjustments forexchange rate variations ,in1980 led ,
globally considered ,toafall incredits of10.803 MEUA .This fall
isnevertheless only apparent because inreal terms each Member State
receives theexact equivalent ofitsquota .
Withdrawal operations arecarried outwhen theinformation given by
Member States totheCommission particularly with payments requests
orfacts ascertained when controls take place onthespot show that a
project has notbeen carried out orthat its implementation only
merits part oftheFund aid .These operations led in1980 toincrease
inavailable commitment appropriations ofsome 25.473 MEUA onthe
understanding that the proportion thus recovered wasavailable for
thegrant ofaids toother investments inoneoftheeligible regions
ofthesame Member State from whon theaidhad been recovered .
Table 11following shows how far adjustments for exchange rate
variations andwithdrawal operations ,occuring during thefinancial
year 1980 ,have affected therespective quotas ofMember States .
Table 11
Operations affecting budget availability
Balan - Credits With - Adjust- Total Credits Balan­
ces 1980 drawals ments avail . absorb .ces
(1) 80from 80rates 1980 in end
commitm .oncomm . 1980 1980
1975-79 1975-79
Β 5,515 16,009 +0,060 + 0,324 21,909 11,632 10,277
DK 1,675 13,821 +0,022 + 0,254 15,771 11,957 3,814
D 0,059 69,105 +2,321 + 2,026 75,511 69,023 4,487
F 8,334 194,185 +0,041 + 3,883 206,444 194,793 11,650
IRL -0,605 74,403 +2,444 + 0,941 77,183 76,942 0,241
I -11,909 453,674 +13,801 +18,535 474,101 473,867 0,234
L 0,030 1,037- + 0,015 1,082 0,485 0,596
NL 3,971 18,198- + 0,182 22,350 22,260 0,090
UK -3,848 311 ,318 +6,785 -36,964 277,291 276,825 0,465
CE 3,221 1.151,750 +25,473 -10,803 1169,641 1137,785 31,855
(1)
(1)Includes 45MEUA transferred from quota free .
60 ERDF

135 .The available balances shown inthe last column ofthe Table above
andtotalling 31,855 MEUA will beadded totherespective quotas of
Member States in1981 .Itshould bestressed that this amount ,which
isinfact thebalance ofthe two initial three year periods ofthe
existence ofthe Fund ,issmall when compared with the volume of
Commitments made between 1975-1980 and which are more than 3,500
MEUA .Itmay bestated ,also ,that theavailable credits would have
been insufficient if1980 hadnotbeen the last financial year ofthe
second three year period ofFund activity .
Indeed ,according tothe declarations made bytheCouncil atthe
first revision ofthe Fund Regulation onthe application ofthe
quotas ,itwasnecessary ,attheendof1980 ,tolimit commitments to
Italy ,Ireland and theUnited Kingdom totheamount oftheir three
year quota .Thecommitments for these three Member States ,which had
therefore tobecontracted atstart of1981 and thereafter included
inthe budget credits for 1981 (63)had theeffect ofreducing the
budget credits for 1981 (1,463 MEUA )by256.27 MEUA (64);thecredits
actually available for newcommitments in1981 aretherefore nomore
than 1,206.73 MEUA .
136 .Onpayments ofcontracted commitments ,ithasbeen noted that in1980
and for the first time since the creation oftheFund ,payment
appropriations initially available i.e. 715.418 MEUA were fully
used ,the payments made having reached 726.698 MEUA and having
therefore exceeded credits initially available by11.279 MEUA ,16
MEUA ,transferred from the "quota free "tothequota section atthe
end of1980 ,had also tobeabsorbed atleast toalarge extent ,
finally leaving abalance ofnomore than 4.720 MEUA attheend of
the1980 financial year (seetable 4).
Itshould benoted that infact therequests forpayment byMember
States were for 747.4 MEUA and therefore slightly exceeded payments
actually .made ,namely 726.698 MEUA .Thedifference between these two
amounts isexplained bymovements indifferent directions asa
consequence ofadjustments inexchange rates and ,ontheother hand ,
by adaptations made after investigation toapplications for
payments .
Table 12following shows the situation with regard topayments of
commitments attheend ofthe 1980 financial year .Table 7inannex
adds ,foreach Member State ,thedetail ofpayments in1980 following
the financial year during which thecorresponding commitments were
contracted .
63Point 41ofthis report .
64Attherate ofFebruary 1981 .
CHAPTER V:PAYMENTS AND CONTROLS 61

Table .12
Pavments in1980
Member State Commitm . Commitm . Paym . Commitm .Paym .
1975-80 1980 1980 unpaid in7,
unpaid (2) 1980 of
1979(1 ) 75-80
MEUA MEUA MEUA MEUA MEUA
Belgium 18,608 11,632 6,585 23,655 53,1
Denmark 11,154 11,957 9,438 13,673 69,4
Germany 59,588 69,023 50,449 78,162 64,2
France 191 ,784 194,793 99,662 286,915 55,2
Ireland 62,425 76,942 69,552 68,815 67,1
Italy 461 ,189 473,867 249,080 685,976 47,5
Luxembourg 1,455 0,485 0,992 0,948 71,1
Netherlands 18,346 22,260 7,698 32,908 53,0
U.K. 293,648 276,825 233,242 337,231 65,6
Totals 1.118,196 1.137,785 726,698 1.529,283 56,4
(1)At the end of the 1979 financial year 1979 ,unpaid 1975-1979
commitments were really 1,132.37 MEUA (Table 9ofthe 1979 annual
report ).This ajnount has had tobeadapted totake account of
withdrawal operations (+25.473 MEUA )andadjustments forexchange
rate variations (-10.803 )in1980 to1975-1979 commitments (See
Table 11).
(2)Including withdrawal operations (-0.393 MEUA )and adjustments to
exchange rate variations (11.539 MEUA )in1980 .
137 .Table 12shows that at31December 1980 ,56.4 7,oftotal commitments
contracted since the start ofthe Fund has been paid .This ratio
between payments andcommitments certainly reflects theexisting gap
between therythmn ofcommitments and therythmn ofpayment butdoes
notmean thereby that payments have been delayed .Inpractice ,this
gap isinherent inthefact that decisions toFund aidtaken bythe
Commission lead atonce toacharge oncommitment appropriations
available from total grants available whereas payment ofcommitments
i.e. payment oftheaid isspread ,according totheprovisions ofthe
Fund Regulation over several years according tothe rate of
realisation ofthe investments assisted and inthis context ofthe
level ofpublic expenditure carried outbyother Member States .
62 ERDF

Thepercentage of56.4 istobecompared with that reached attheend
of1979 i.e. 53.2 7,and 53.3 %attheend of1978 (6S)This rise in
the ratio between payments and commitments isgeneral with the
exception ofGermany and the Netherlands .Four Member States :
France with 55.2 7>,Belgium with 53.1 7,Netherlands with 537and
Italy with 47.5 7are below theCommunity averable (seealso table
3).
Table 12also gives the situation byMember State ofcommitments
outstanding atthe end of1980 .From 1,118.96 MEUA atthe end of
1979 ,unpaid commitments rose to1,529.283 MEUA attheend of1980 .
This increase isexplained bythe increase incommitments in1980
i.e. 1,137.785 MEUA andbytheabove mentioned gapbetween therythm
ofcommitments and that ofpayments .The proportion ofItaly in
total commitments outstanding isclearly thehighest .With 685.976
MEUA ,itwas some 44.85 7,ofthe total (theItalian quota attheend
of1980 was39.39 %).
138 .Thedistribution ofannual payments from theFund since 1975 isshown
inTable 13.
Table 13
Distribution ofannual pavments bvMember States
Member State In7,ofpayments made
1975 1976 1977 1978 1979 1980
Belgium 0 1,66 0,76 2,34 0,60 0,91
Denmark 1,71 1,51 1,55 0,54 1,78 1,30
Germany 0 3,63 6,69 16,55 8,97 6,94
France 17,79 12,23 12,30 15,95 20,20 13,71
Ireland ·■·· 7,72 6,80 5,93 8,03 6,41 9,57
Italy 48,86 42,71 40,14 30,81 28,00 34,28
Luxembourg 0,25 0,17 0,03 0,08 0,06 0,14
Netherlands 3,14 2,26 0,75 2,54 1,68 1,06
U.K. 20,05 29,05 31,85 23,16 32,30 32,09
100 100 100 100 100 100
Itshould benoted that theconstant decline intheannual proportion
ofItaly ended in1980 when that country absorbed 34.28 7ofpayments
compared with 287only in1979 and30.81 7in1978 .
65Table 7inannex gives this comparison byMember State attheend of
thefinancial years 1979 and 1980 .
CHAPTER V:PAYMENTS AND CONTROLS 63

139 .Payments actually made in1980 i.e. 726.698 MEUA exceeding those made
in1979 by41.5 X;thelatter were 513.147 MEUA .Table 14gives an
outline ofthe use ofpayment appropriations since the fund was
created .
Table 14
Trend inoavment anoroDriations since 1975
Budget Credits Payments made Payment appropriât .
carried forward
Year EUA MEUA EUA MEUA EUA MEUA
1975 150,00 90,67 74,058 52,93
1976 300,00 277,33 213,052 82,00
1977 400,00 372,51 275,699 109,49 83,083 (1)
1978 525,000 254,892 353,191
1979 483,000 513,148 323,043
1980 1-392,375 726,698 0
•■+16,000 4,720
(1)Conversion ofEUAmMEUA
This table shows that ,with theexception oftheamount of16MEUA ,
transferred from thesection tothequota section attheendof1980 ,
available budget credits forthequota section i.e. 715.418 MEUA were
used upto101.6 %.Thecarry forward of353.191 MEUA from 1978 to
1979 ,due totheovervaluation ofpayment appropriations for1978 and
the bottleneck inpayment requests in1978 following special
circumstances (66),hasbeen entirely absorbed .This absorption has
certainly been assisted byanadjustment ofbudget estimates ,but it
isessentially the outcome ofaccelerated rate ofpayments which
started in1979 andwhich continued through the1980 financial year .
140 .Toaccess the impact which the accelerated payments procedure ,
initiated in1979 ,hashadonpayment results inI9S0 ,itisclearly
insufficient toadd together all requests foraccelerated payments
byMember States .Payments must bededucted ,which would normally
have occured inthe light ofthe trend ofpublic expenditure in
Member States ,even ifthere were noaccelerated payments system .In
this waytheimpact ofaccelerated payments in1979 wascalculated at
150MEUA maximum (67).In1980 theimpact increased toreach some 240
MEUA ,which is33%ofthevolume ofannual payments made compared
with rather less than 33%in1979 .
66Fifth annual report oftheFund ,point 133
67Fifth annual report oftheFund ,point 134 .
64 ERDF

CONTROLS
141 .TheCommission ,inthefifth annual report oftheERDF (68),stated
that itwould beshortly find itmaterially impossible torealise the
quantitative aim ,which inthe early years ofthe Fund ,was to
inspect and check agiven number ofaided projects onthe spot so
that there would beacumulative check covering some 107.ofall
projects having received Fund assistance inprevious years .The
achievement ofthis quantitative aim ishindered bythe limited
number ofofficials for the task inrelation tothe number of
projects aided (68)while the Commission could not ,inany event ,
sacrifice quality ofcontrol toobtaining apurely quantitative
result .The aim in1980 was therefore tocover atleast the same
number ofprojects asin1979 .Inthe present circumstances ,the
Commission will endeavour tomaintain this target while seeking to
take more consideration ,not somuch for thenumber ofprojects in
question ,but for the aid asdefined and granted bytheERDF since
the use towhich this aid isput isthereal purpose ofthecontrols
(fifth annual report ,point 135).
142 .In1980 ,onthespot checks were made on202projects ;thepercentage
ofprojects controlled inall Member States since the Fund was
created which is841 ,rose bytheend of1980 by9.17>ofthenumber
ofprojects assisted between 1975 and 1979 ,which were 9.204 .Atthe
end of1979 the corresponding percentage was 10.06 %since atthat
date 639 projects of6.348 assisted from 1975 to1978 had been
checked onthespot .
Asin1979 ,theBoard ofAuditors took part infour control missions :
inGermany ,Ireland andtheUnited Kingdom .
The following table 15shows the distribution ofcontrols made by
Member State andbytype ofinvestment .Itshould benoted that there
was nocontrol made in 1980 inDenmark ,Luxembourg and the
Netherlands since thenumber ofprojects checked inearlier years was
sufficiently high inrelation tothenumber ofprojects aided between
1975 and 1979 .The Commission will endeavour however inthe future to
include allMember States each year forinspection andchecking while
understandably taking account ofthe volume ofFund aid granted to
each Member State .
48Fifth annual report oftheFund ,point 135 .
CHAPTER V:PAYMENTS AND CONTROLS 65

Table 15
Table 15 ;Number ofinvestment proiects controlled
since the creation ofthe Fund
Member State Industry Infrastructure Total
1975 - 1980 Tot . 1975-1980 Tot . Tot .
1979 1979
Belgium 3- 3 11 1 12 15
Denmark 8 - 8 19- 19 27
Germany 53 10 63 36 8 44 107
France 77 26 103 32 4 36 139
Ireland 14 6 20 25 6 31 51
Italy 55 36 91 89 45 134 225
Luxembourg- - - 2 - 2 2
Netherlands - - - 4- 4 4
U.K. 62 15 77 149 45 194 271
Totals 272 93 365 367 109 476 841
143 .Of93industrial projects checked and inspected in1980 in1980 ,14
referred toinvestments ofmore than 10MEUA ,while of109investment
projects ininfrastructure 19were ofmore than 10MEUA .
Byway ofprojects controlled in1980 ,theuseofamaximum amount of
aid ofsome 140MEUA was checked inthecourse ofthis onefinancial
year .This figure istobecompared with the volume ofcredits -
commitment appropriations -from 1975 to1979 ,namely some 2,500 MEUA
and thevolume ofpayments made over thesame period ,namely 1,330
MEUA .Total projects controlled in1980 were for investments
totalling some 1,400 MEUA .
Table 8inannex shows how controls carried out in1980 and from 1975
to1980 were distributed throughout thevarious Community regions .
144 .While endeavouring toweight thepurpose recorded inproject numbers
aswasthecase inthefirst years oftheoperation oftheFund byway
ofacriterion more linked tothe volume ofaid granted ,the
Commission has sought toensure accurate checking and thereby sound
management oftheFund itself .
Inthis context ,systematic measures with regard tosocalled
"sleeping "projects were adopted in1980 ;when controls have been
carried out onthe spot and additional toactual inspection and
checking ,projects located intheregion visited forwhich payments
arebehindhand according toschedules planned have been investigated
inconjunction with authorities responsible for managing these
projects .Thepurpose ofthis investigation wastoreveal thecauses
ofdelay and toaccelerate treatment ortheclosing ofaccounts
either byfinal payment iftheprojects arecompleted orwithdrawal
ofthe project ifithas failed tomaterialise .This special
regionalised measure is carried out parallel with general
66 ERDF

investigation of so called sleeping "projects carried out
periodically by the Commission with Member States but where
immediate andpositive results have notalways proved satisfactory .
Inthis way ,when onthe spot controls took place in1980 ,209
sleeping projects were especially investigated ,ofwhich 19have
been orwill bewithdrawn ,whereas 42other projects have inthe
meantime been subjects ofanewapplication for payment .For 27of
these projects ,the payment application was final ;163 projects
investigated arestill inprogress .
145 .Onassessment ofthe impact ofFund aids onregions ,theCommission
hasalready hadoccasion tostress (6*)tocomplex character ofthis
assessment ,which experiences ofMember States reveal isnoteasy of
application .Asfar aspossible ,the Commission ,when undertaking
controls onthe spot ,seeks toconfirm ,inthe light ofguidelines
supplied byregional development programmes ,thereal contribution
ofprojects aided bytheFund and itendeavours todescribe ,through
annual Fund reports ,the impact ofprojects onregions .Itmust
inevitably berecognized however that Fund aid isonly one factor
among others which decide the trend ofregions ;aneffective control
oftheresults ofregional measures implied notonly theassessment
ofthe degree ofachievement inregional development but also an
assessment oftheeconomic efficiency ofregional measures asawhole
atboth national andCommunity level .
146 .Onthe spot controls carried out in1980 revealed noindication of
fraud was revealed i.e. noexample ofimproper financial advantage
derived from ERDF aid .However there was onecomment with regard to
France and several general comments ,which are applicable ,in
varying measure however ,toallMember States .
147 .While the1979 financial year wascharactarised bysome progress with
regard toonthespot check inFrance (70),itmust beconfirmed that
in1980 France continued torefuse authorised Commission officials
access for visits toindustrial concerns onthe spot tocarry out
effective checks with national officials .Since France istherefore
infringing theTreaty ,theCommission isseeking actively toendthis
anomaly which ifitcontinues could beamatter for the Court of
Justice .However the Commission ,inview ofits contacts with the
French authorities does not exclude finding asolution tothis
matter .
Inthemeantime ,theCommission has informed theFrench authorities
that asfrom the financial year of1980 ,outstanding Fund payments
will remain insuspense for industrial projects towhich access has
notbeen allowed toCommission officials foronthe spot checks and
forwhich therefore nocontrol has been possible inaccordance with
Article 19oftheFund Regulation .This precautionary measure isnow
inforce .
69Fifth annual report oftheFund ,point 140 .
70Fifth annual report oftheFund ,point 142 .
CHAPTER V:PAYMENTS AND CONTROLS 67

Onthe spot checks carried out in1980 have shown ,apart from some
lack ofclarity ininformation supplied byMember States ,either on
applying for assistance oronpresentation ofproject completion
reports ,the increasing difficulty ofindustrial concerns toachieve
their targets ,more especially increating ormaintaining jobs as
initially fixed when preparing applications forFund assistance and
therefore asagreed ingrant decisions .This isnotsurprising in
view ofthecurrent economic circumstances .
The Commission has ofcourse stressed with Member States that this
lack ofclarity ,should beavoided infuture and inanyevent inall
cases where this has affected Fund assistance .Ithas already
proceeded orwill proceed totherecovery ofFund aidaccording to
the provisions ofArticle 9(6)ofthe Fund Regulation .The same
applies where agap occurs between estimates and actuality onjob
creation ormaintenance insofarastheminimum of10jobs laid down
inArticle 4(1)a)oftheFund Regulation andtheratio between jobs
created and theamount ofthe investment asfixed inArticle 4(2)b)
has notbeen respected .
Inthis way ,ofthe 202 projects inspected onthe spot in1980 ,9
projects have already been orwill bewithdrawn and ERDF aid
recoverd .Intwo cases ,there has been partial recovery with the
amount ofFund aid reduced .Inseven cases there has been total
recovery due essentially tothe projects inquestion failing to
materialise .148 .Onthe spot checks have shown that there isnot
always aparallel between national criteria onregional aid and
criteria applicable atthelevel ofFund aidandthat inconsequence ,
the Member State tends tolimit its own control toobservance of
national criteria .Ifthere isnot initself amajor drawback for
Community controlling agents ,itissometimes nevertheless thecase
that onthespot checks carried out attherequest oftheCommission
suffer from acertain lack ofpreparation bynational managers in
carrying out inconjunction with theCommission ,the checks and
inspection required bythe Fund Regulation .This isespecially so
when national regional aid rules donotrequire adirect link with
job creation ;this does nothelp Commission officials toconfirm
whether the requirements oftheRegulation onthis score have been
respected .This isalso thecase when national rules donotprovide
forrecovery ofnational aid if,forinstance ,afirm having received
Fund aid ,should goout ofbusiness .This does not encourage the
Member State concerned toinform theCommission automatically with a
view torecovering theFund aidbased onthenational aid .
The Commission isseeking toremedy this state ofthings inclose
association with thenational departments concerned .
68 ERDF

CHAPTER VI :PUBLICITY OFFUND ACTIVITY
149 .TheCommission considers that information onFund activity should be
distributed aswidely aspossible .Itisofthe opinion that the
European citizen has theright toknow howCommunity Funds areused
and which are financed bythe European taxpayer .Hehas also the
right toknow what profit hederives directly from Community support .
In1980 public information onERDF aids went through the same
channels asinprevious years :press information ,information panels
and posters ,publication oflists ofprojects inthe Official
Journal ,letters toinvestors .Inaddition tothis rather standard
publicity ,asagreed byMember States orlaid down inthe Fund
Regulation ,the use ofinformal channel ,for instance personal
contacts ,speeches ,campaigns ofgeneral information including
regional policy or the publication of pamphlets have also
contributed toinforming thepublic onERDF activities .
PRESS INFORMATION
150 .After each ofthe four annual grant instalments from theERDF ,the
Commission *has informed the Press through hand outs and lists of
projects assisted ineach Member country and ineach region .These
details areusually used more bytheregional and local than bythe
national Press .While Press articles have been especially frequent
inIreland ,Italy andtheUnited Kingdom ,theFrench andGerman Press
seem less interested .Itistrue that information regarding these two
latter countries permits neither the journalist nor the newspaper
reader toidentify with ease the individual projects inreceipt of
ERDF aid which means that information isbrief .Ontheother hand ,
lists onIreland ,Italy and theUnited Kingdom arequite detailed and
give precise details on the project aided .This precision
contributes without doubt toincreasing theinterest ofreporter and
reader inthe information .But itisalso true that ERDF aid tothese
three countries isthe largest intheCommunity inrelation togross
domestic product ;this also explains why the public take such
interest inFund activity .
InJanuary 1980 aPress Conference bytheCommissioner responsible
for regional policy onthefourth ERDF instalment for1979 found good
response inthe national Press ,represented bycorrespondents in
Brussels .
CHAPTER VI :PUBLICITY OFFUND ACTIVITY 69

INFORMATION PANELS AND POSTERS
151 .Theinstallation ofinformation poster onthespot where substantial
infrastructure projects arebeing carried outfalls within Article
10oftheFund Regulation .Like press hand outs ,these posters give
information details tothepublic atlarge .Thenumber ofprojects
for which posters have been erected and the number ofposters
themselves (some projects are indicated byseveral posters ),in
relation tothenumber ofinfrastructure projects having received an
aid contribution ,differs widely between countries .This isdue in
part tothe fact that distribution between aided large and small
projects isnot identical inall countries but also tonational
definitions differing ondeciding which project issufficiently
important toreceive aninformation poster .Inaddition ,some
important projects donot lend themselves atall toonthe spot
publicity .But that isalso duetoamore orless responsive attitude
ofnational authorities with regard totheir obligation toerect
relevant posters .
According todetails available totheCommission ,which are still
incomplete ,formore than 100projects ,posters were installed upto
theend of1980 .Distribution inMember States is :
Table 16
Installed information posters
Member State Number projects
with postersSituation end
Belgium 26 1980
Denmark 6 1980
Germany 42 1980
France 33 1978
Ireland 41 1980
Italy 593 1980
Luxembourg 4 1980
Netherlands 7 1980
United Kingdom 370 1980
Total 1.122
70 ERDF

PUBLICATION INTHE OFFICIAL JOURNAL
152 .According toArticle 10oftheFund Regulation ,theCommission must
publish the list ofprojects inreceipt ofFund aidevery sixmonths
inthe Official Journal .After afirst year ofrunning in(1975 ),
this schedule was observed in1976 and 1977 .Thereafter delays have
been prolonged and are now 12to18months .Indeed ,the list of
projects decided in1978 waspublished inDecember 1979 (71)andthat
for projects decided in1979 inDecember 1980 (7Z).TheCommission
regrets these longer delays ,due essentially tolack ofstaff .The
technical work involved in finalising lists has increased
considerably :the lists for 1975 concerned 1,183 projects ;in1980 ,
there are 2,562 projects .Incontrast ,thenumber ofstaff has not
risen over thesame period oftime .
INFORMING INVESTORS
153 .After each series ofinstalment decisions ongrants ,theCommision
has written toeach investor concerned toinform him ofCommunity
support for his project .Only French investors receive noletters
directly from the Commission but through the intermediary oftheir
national authorities .
71 OJC327of31.12.1979 .
72 OJC354of31.12.1980 .
CHAPTER VI :PUBLICITY OFFUND ACTIVITY 71

CHAPTER VII :CONCLUSIONS
154 .1980 may beconsidered asatransitional year between 1979 atthe
start ofwhich acertain number ofimportant changes were introduced
into the Regional Fund and 1981 when theCouncil should re-examine
this Regulation .
155 .Onthe quota free section ,the Council adopted the first five
proposals for specific meaures ofregional development .The
Commission welcomed these decisions ,which gave anewdimension to
Community regional activity both with regard toselected aims andto
financial measures andregional scope ofFund assistance .
156 .Onthequota section ,reference should bemade firstly tothechange
innational quotas made inDecember totake account ofGreek
accession on 1January 1981 .TheCommission regrets that theCouncil
did not accept its original proposals for the Greek quota but
considers the decision positive because ittook place intime for
Greece tobenefit from Fund aid onaccession and because the method
which isproposed foradjusting other quotas were finally adopted by
theCouncil .
157 .The Fund endowment has increased substantially bycomparison with
1979 since total credits and commitment appropriations were 1,170
MEUA ,ofwhich 1,107 MEUA arewritten into thebudget and 63derive
from withdrawals orsums carried forward from theprevious financial
year .Available credits have been almost entirely committed (1,138
MEUA )without enabling the Commission toassist all eligible
projects presented .Decisions on232 investment projects ,onwhich
the Fund Committee had given anopinion in1979 had tobecarried
forward to1981 .
158 .Payment appropriations were 393 MEUA ,towhich are added 323 MEUA
carried forward from 1979 to1980 .All these payment appropriations
were used :716MEUA .This positive result wasdue totheintroduction
ofthesystem ofaccelerated payments .
159 .The Commission regrets that the application ofArticle 19on
verifying the complementary character between Fund assistance and
national regional aids didnotallow ittoindicate inasatisfactory
manner that this principle was respected inallMember States .The
principal positive acquisition here isthat direct complementary
character has been instituted for infrastructure projects insome
Member States andthat Fund payments have been passed totheinvestor
ortoregional orlocal authorities .
CHAPTER VII :CONCLUSIONS 73

160 .Themaximum proportion of70%ofFund assistance tobeallocated to
infrastructure projects for 1978 /1980 was respected .However the
Commission stresses that the 70Xshould betreated asamaximum and
renews its requests toMember States toapply formore projects in
industrial orservice activities ,which aredirect creators ofjobs .
161 .The Commission welcomes the readiness ofMember States in1980 to
make good use ofArticle 12oftheFund Regulation providing forthe
possibility ofFund financial participation instudies closely
linked with Fund activity .The grant ofassistance tostudies ofthis
kind should enable theCommission totake part infinancing acertain
number ofinvestments asand when these areconceived and toyplay
more active part intheir implementation .
162 .Onintegrated operations ,the Commission concentrated its main
efforts in1980 onthe Naples area .Atechical working group of
representatives of the Commission and responsible national and
regional authorities ,has assisted coordination ofCommunity
measures (essentially oftheRegional andSocial Funds )andmeasures
oftheCassa per ilMezzogiorno ,theCampania region and theNaples
local authority .Financial commitments have been adopted at
Community andItalian level .
163 .Finally ,the Commission completed in1980 the first periodical
report onthe social and economic situation and trend inCommunity
regions .Themain conclusions ofthis report will beused toprepare
amemorandum onCommunity regional policy tobepresented bythe
Commission in1981 .
74 ERDF

APPENDIX A.STATISTICAL ANNEX OFFUND ACTIVITY
Table 1
Summary ofgrant decisions from theFund in1Q80
analysed byMember States andbymaior type ofinvestment CI")
LEGEND A
B
C
D
EIndustrial and service investments of10MEUA ormore
" " " "ofless than 10MEUA
Investments ininfrastructure of10MEUA ormore
" " "ofless than 10MEUAmhill farming areas (2)
MEMBER STATENumber
numberof
ofgrant decisions (inbrackets :investment projects )(3)
A Β C D E total
BELGIUM 2
(2)7
(22)- 3
(43)1
(9)13
(76)
DENMARK - 9
(29)2
(2) (63)- 18
(94)
GERMANY 12
(12)37
(164)2
(2)23
(54)- 74
(232)
FRANCE 11
(11)37
(143)24
(24)16
(93)- 88
(271)
IRELAND 2
(2)1
(8)14
(14)2
(11)- 19
(35)
ITALY 3
(3)9
(155)17
(17)56
(1327 ) (20)86
(1522 )
LUXEMBOURG - - - 1
(1)- 1
(1)
NETHERLANDS 1
(1)- 3
(3)2
(3)- 6
(7)
UNITED KINGDOM 11
(11)16
(47)13
(13) (24¿)1
(8)85
(325)
TOTALS 42
(42)116
(568)75
(75)154
(1841 )3
(37)390
(2563 )
390
(2563 )
1)Point 46ofthis report
2)Within themeaning ofDirective 75/268/CEE
3)Forprojects of10MEUA ormore incolumns AandC,each decision
relates toasingle project .
(6)Appendix A.STATISTICAL ANNEX OFFUND ACTIVITY75

Table 1
Summary ofgrant decisions from the Fund in1980
analysed bvMember States and bymaior type ofinvestment CO
(continued )
LEGEND A
B
C
D
EIndustrial and service investments of10MEUA ormore
" " " "ofless than 10MEUA
Investments ininfrastructure of10MEUA ormore
" " "ofless than 10MEUA
" "inhill farming areas (2)
Investments concerned
MEMBER STATE (MEUA )
A Β C D E total
BELGIUM 34.12 59.02 - 17.16 1.76 112.06
DENMARK - 27.18 15.12 15.22 - 57.52
GERMANY 263.91 504.69 67.28 68.29 - 904.17
FRANCE 647.19 246.92 396.72 106.25 - 1397.08
IRELAND 584.30 33.19 1006.32 6.89 - 1630.70
ITALY 320.99 152.14 2531.79 572.64 1.74 3579.30
LUXEMBOURG - - - 214 - 214
NETHERLANDS 55.91 - 44.32 7.66 - 107.79
UNITED KINGDOM 1160.02 88.35 728.32 309.59 5.07 2291.35
TOTALS 3066.44 1111.49 4789.77 1105.84 8.57 10082.11
10,082.11
1)Point 46ofthis report2)Within themeaning ofDirective 75/268/CEE
76 ERDF

Table 1
Summary ofgrant decisions from theFund in1980
analysed byMemberStates andbymaior r.vpp nfinvestment f1^
(continued )
LEGEND :A:Industrial and service investments of10MEUA ormore
B: " " " "ofless than 10MEUA
C:Investments ininfrastructure of10MEUA ormore
D: " " "ofless than 10MEUA
E: " " "inhill farming areas (2)
Assistance granted
MEMBER STATE (MEUA )
A Β C D E total
BELGIUM 2.00 4.98 - 4.39 8.51 11.88
DENMARK - 1.82 4.75 5.01 - 11.58
GERMANY 12.90 21.87 19.88 16.41 - 71.06
FRANCE 25.03 20.75 118.49 34.49- 198.76
IERLAND 5.63 4.28 66.47 1.44- 77.82
ITALY 37.62 29.46 249.01 173.15 0.41 489.65
LUXEMBOURG - - - 0.50- 0.50
NETHERLANDS 6.99 m 13.25 2.30 - 22.54
UNITED KINGDOM 104.78 14.78 41.72 79.80 1.51 242.59
TOTALS 194.95 97.94 513.57 317.49 2.43 1126.38
1,126.38
1)Point 46ofthis report
2)Within themeaning ofDirective 75/268/CEE
Appendix A.STATISTICAL ANNEX OFFUND ACTIVITY 77

TABLE 2:TYPES OFINVESTMENT FINANCED BYTHEREGIONAL FUND IN1980 :
INDUSTRY AND SERVICES
Type asdefined inthe
Fund RegulationTotal
investment
(MEUA )National aid
involved
(MEUA )Number ofprojects andmain sectors ofactivity concerned
projects
of10MEUA
ormore3,066.44 526.6842
of
which1Nuclear fuel
3Metal production andfirst stage processing
5Chemicals
3Metal manufactures (excluding Transport machinery
and material )
4Mechanical engineering
!12Motor manufacture ans spare parts
2Other transport equipment
1Precision ,optical andsimilar instruments
2Food ,drinks and tobacco
3Paper ,printing andpublishing3Rubber ,plastic processing
Industry
and
service »
projectsofless than
10MEUA1,111.49 208.04568
of
which10Metal production andfirst stage processing
44Non metallic minerals
20Chemicals
88Metal manufactures
61Mechanical engineering
5Office machines andmachinery andequipment for
information treatment
38Electrical endelectronic engineering
18Motor manufacture and spare parts
9Other transport equipment
16Precision ,optical anssimilar instruments
53Food ,drinks and tobacco
11Textiles
28Footwear andclothing47Timber and wood furniture
34Paper ,printing andpublishing52Rubber ,plastic processing
8Catering and hotels26Miscellaneous industries and services
TOTALS 4,177.93 734.72 610project·

>
*0Ό
Π)
3&
Η·Χ
>
C/5H>HMWHMη>Γ1
£
ζ
Ρ1χ
§
>ηΗ
ι–ί
►<TABLE 2STYPES OPINVESTMENT FINANCED BYTHEREGIONAL FUND IN1975-1976-1977-1978-1979-1980:INDUSTRY AND SERVICES (continued )
Type asdefined intneFund Regulation
Projects of
10MEUA
ormore
Industry I
and <
service » I
oroj «
lessprojects ofless than
10MEUA
TOTALSTotal
investment
(MEUA )
9580.03
5566.83
151467.86National aid
involved
(MEUA )
1555.57
1074.31
2629.88Number ofprojects andmain sectors ofactivity concerned
198
of
which2Nuclear fuel
1Mining andprocessing ofmetallic ores
12Metal production andfirst stage processing
12Non-metallic minerals
40Chemicals
2Artificial and synthetic fibres
7Metal goods17Mechanical engineering
17Electrical andelectronic engineering
39Motor manufacture andspare parts4Other transport material
2Precision ,optical andsimilar instruments
17Foods ,drinks and tobacco
1Textiles
2Footwear andclothing
3Timber and furniture
7Paper ,printing andpublishing12Rubber andplastics
1Financial institutions
79Production and first stage processing ofmetals
258Non-metallic minerals
157Chemicals
1Artificial andsynthetic fibres
454Metal goods300Mechanical engineering
5Office machines andmachinery andequipment for
information treatment
286Electrical andelectronic engineering
3204 <118Motor manufacture and spare parts
of 57Other transport equipment
which 71Precision ,optical andsimilar instruments
289Food ,drinks and tobacco
85Textiles
107Footwear andclothing
268 Timber and furniture
169rnper ,printing andpublishing250Rubber andplastics
79Cathering and hotels
171Miscellaneous industries and services
3402 projectsM rr
_>3a rt)
c3
75 Cl
/-ν rt
o Hh
o<M·H
3 3 03
cf 05 03U*
Η* 3
3aη ro
C n>
roín CL·Maa
s»/ o*
<<
r-·
η rt
a>
Via>
C
3a

COo
TABLE 3STYPES OFINVESTMENT FINANCED BYTHEREGIONAL FUND IN1980 :
INFRASTRUCTURE
Type asdefined bythe
Fund Regulation
Projects of
more than
10MEUA
Infra - <
structurel
projects of
less than
10MEUA
projects inhill farming
areas
TOTALSTotal
investment
(MEUA )
4789.77
1105.84
8.57
5904.18National aid
involved
(MEUA )
1807.75
1033.58
8.11
2849.44Number ofprojects andmain types ofinfrastructure concerned
5General services toindustrial estates
(roads ,railways ,water supply and
purification ,drainage ,etc.)
1Public buildings (exhibition hall ,of.which
75< covered market )
of I24General serviceswhich 21Road works
3Port development
1School premises
20Miscellaneous infrastructure (energy production ,
télécommunications ,etc. )
184K
of I
which8Site preparation for industrial estates
173General services for industrial estates
(roads ,water supply ,drainage ,etc.)
47Advance factories
3Public buildings (exhibition hall ,
covered market )
74Tourism infrastructure
538 Road works
77Port development
8Airport development
913Miscellaneous infrastructure (energy production ,
telecommunications ,etc.)47
3
74
538
77
37<37General services (roads ,
of I water supply ,etc.)
which
1953 projectsrt
Û)
7)
rt
Co
rt
G
w

>
Ό
Π)
3αTABLE 3TYPES OFINVESTMENT FINANCED BYTHEREGIONAL FUND IN1975-1976-1977-1978 -1979-1980:
INFRASTRUCTURE (continued )
Type asdefined bythe
Fund RegulationTotal
investment
(MEUA )National aid
involved
(MEUA )Number ofprojects andmain types ofinfrastructure concerned
Projects of
10MEUA
ormore13975.91 5747.66
Infra - <
structural
projects iless than
10MEUAof
4483.74 3883.49
projects innill farming
areas301.27 282.281Purchase ofsites for industry
94General services toindustrial estates
(roads ,railways ,water supply andpurification ,drainage ,etc.)
1Public building (exhibition hall ,
252 < covered market )
of 17Port developments
which 3Energy transport infrastructure
1Tourism infrastructure
40General services
52Road works
7Airport development
1School premises
35Miscellaneous infrastructure (energy output ,
telecommunications ,etc.)
31Purchase ofsites for industry
159Site preparation forindustrial estates1974 General services forindustrial estates (roads ,
water supply ,drainage ,etc.)
6733 <552Advance factories
of 3Public buildings (exhibition hall ,
which covered market )
1Other infrastructure ofsocial character
232 Tourism infrastructure
1271 Road works
287 Port developments
66Airport developments2157 Miscellaneous infrastructure (energy output ,
telecommunications ,etc.)
1358<1358General services (roads ,
of I water suplly ,etc.)
which
TOTALS 18760.92 9913.43 8343 projects
00

TABLE 4-Fund Assistance percapita 1975-1980 (1)(2)
Total
populationPopulation
ERDFareas (4)Aid granted (3)
Member
State1980 1980 Total percapita percapita inassisted areas -
(million ) (million ) MEUA EUA EUA
BELGIUM 9.9 3.2 51 5 16
DENMARK (5) 5.2 0.8 47 9 59
GERMANY (6) 61.3 24.3 274 4 11
FRANCE (7) 54.9 22.1 627 11 28
IRELAND 3.4 3.4 226 66 66
ITALY 57.1 21.6 1,397 24 65
LUXEMBOURG 0.4 0.4 3 9 9
NETHERLANDS 14.1 2.3 70 5 31
UNITED KINGDOM 55.9 25.5 870 16 34
Community 262.2 103.6 3,564 14 34
(1)Point 3ofthis report
(2)Rounded figures
(3)Account taken ofwithdrawals ;noaccount taken ofaids forstudies
(4)Estimations
(5)Greenland included ,0,05 million inhabitants
(6)Berlin (West )included ,1,9million inhabitants
(7)D.O.M. included ,1,2million inhabitants

TABLE 3:REGIONAL ANALYSIS OFFUND GRANTS 1975-1980
>
X)
XI
(Î
3
Q.
H-X
wH>HMWHMn>r1
XI
o
►n
•ηα
>ηΗΜ<ΜΗ
><BELGIQUE /BELGIE
Vlaanderen
Wallonie
Correction
(decommitmentsplus exchangevariations )
TOTALI.Industry ,craftsand servicesII.Infrastructure III .Infrastructure in
hill farming areasIV.Totals
TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980
6.78(21 )
0.20(3 )6.78(21 )
11.67(25 )2.18(33 )2.21(10 )18.48(116 )
10.20(57 ) 0.51(9 ) 3.95(13 )8.96(54 )2.92(22 )25.26(137 )
25.82(95 )
6.98(24 )18.45(46 ) 4.39(43 )28.68(173 ) 0.51(9 ) 3.95(13 ) 11.88(76 ) 51.08(232 )
-0.06
51.02
DANMARK
Groenland
Other regions 1.82(29 )6.28(89 )7.82(64 )
1.94(1 )37.10(251 )3.35(2 )- -7.82(64 )3.76(30 )37.10(251 )9.63(91 )
Correction
(decommitments
plus exchange
variations1.82(29 ) 6.28(89 ) 9.76(65 )40.45(253 ) 11.58(94 )46.73(342 )
-0.20
TOTAL46.53
•0,58 MEUA should beadded onERDF participation infinancing astudy closely linked toFund activity
DEUTSCHLAND
Schleswig-Holstein
BremenNiedersachsen
Nordhrein-Westfalen
Hessen
Rheinland-Pfalz
Saarland
Bayern
Baden-Wuerttemberg
Berlin
Correction
(decommitments
plus exchange
variations )
TOTAL3.85(15 )
13.71(90 )3.66(3 )
2.84(15 )
1.45(5)
5.74(15 )
1.37(6 )
2.15(27 )
34.77(176 )23.70(90 )
0.15(1 )
34.45(216 )
13.87(112 )9.56(76 )
17.33(116 )26.38(118 )
18.01 (104)
6.63(61 )
150.08(894 )1.68(4 )
5.08(24 )2.51(3 )3.28(10 )
3.87(1 )3.35(8 )
0.51(5 )
16.01 (1)
36.29(56 )19.98(79 )0.23(2 )
25.37(102 )
6.28(1 1)10.65(39 )
2.35(23 )
8.80(20 )31.03(118 )
3.58(26 )
21.86(4 )
130.13(424 )5.53(19 )
18.79(114
6.17(6 )6.12(25 )
1.45(5 )
9.61 (16)
4.72(14 )2.66(32 )
16.01 (1)
71.06(232 )43.68i
0.38i
59.821
20.151
20.21 (
19.681
35.181
49.041
10.21I
21.861169)
3)
318)
123)
115)
139)
138)
222 )
87)
4)
280.21(1318 )
-6.50
273.71
00

00
-Ρ*
TABLE 5:REGIONAL ANALYSIS OFFUND GRANTS 1975-1980 (continued )
FRANCE
Alsace
Aquitaine
AuvergneBasse-Normandie
Bourgogne
Brecagne
Centre
Champagne
Corse
Franche-Comté
Haute-Normandie
Languedoc-Roussi lion
Limousin
Lorraine
Midi-Pyrénées
Nord -Pas-de-Calais
Pays delaLoire
Picardie
Poitou-Charente
Provence-Cote d'Azur
Rhone-Alpes
Guadeloupe
Guyane
MartiniqueRéunion
Correction
(decommitments
plus exchange
variations )
TOTALI.Industry ,crafts
and servicesII.Infrastructure III .Infrastructure in
hill farming areasIV.Totals
TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980
0.62(6 )
3.06(12 )
0.54(1 )0.88(5 )
2.93(23 )0.09(1 )3.42(3 )
0.51(4 )0.81 (7)
14.47(22 )2.00(19 )
6.49(13 )3.83(13 )
0.05(1 )
3.07(16 )0.54(4 )2.47(4 )4.66(40 )
14.24(56 )5.33(24 )4.84(26 )
0.51(8 )12.26(91 )
1.02(7 )5.66(16 )
0.01(1 )
0.27(2 )
6.20(31 )
3.23(27 )38.81(116 )
8.19(61 )63.70(74 )
13.16(74 )0.64(8 )
8.19(50 )0.58(6 )7.33(36 )
3.35(52 )2.53(17 )
2.36(23 )
1.96(39 )13.56(3 )9.78(5 )
1.10(2 )
34.53(2 )
1.36(1 )
10.48(3 )
9.51 (2)5.88(2 )17.70(25 )
13.81(10 )
4.00(1 )
9.59(14 )4.93(16 )
9.13(14 )7.62(17 )29.28(70 )
45.54(70 )6.45(29 )
111.32(61 )0.17(2 )
12.44(50 )
25.43(72 )32.22(34 )10.97(4 )33.96(92 )1.63(13 )36.89(77 )
17.49(53 )
0.94(11 )
12.11(29 )
5.69(21 )
11.80(28 )
10.06(25 )-0.05(1 )
0.29(11 )1.43(13 )
1.06(22 )
3.06(32 )
2.30(17 )
0.70(3 )
1.02(9 )
0.32 (4)
2.33(11 )0.95(7 )0.61(6 )16.62(15 )10.32(6 )1.98(7 )
37.46(25 )0.09(1 )
3.42(3 )
1.36(1 )
10.99(7 )10.32(9 )
20.35(24 )
19.70(44 )
6.49(13 )17.64(23 )
0.05(1 )7.07(17 )
0.54(4 )2.47 (4)
9.59(14 )4.93(16 )
9.13(14 )7.62(17 )4.71(41 )43.81(137 )52.30(107 )11.29(55 )
0.51 (8)123.58(152 )1.19(9 )5.66(16 )
12.44(50 )0.01 (1)0.27(2 )
32.69(125 )38.51(93 )49.78(120 )
44.45(170 )65.33(87 )
50.05(151 )0.64(8 )
25.68(103 )0.58(6 )8.97(50 )
16.48(90 )
8.54(42 )16.49(62 )12.97(71 )
45.78(154 )209.03(885 ) 152.98(117 )404.39(741 ) 13.51(130 )98.76(271 )526.93(1756 )
-0.04
626.8950
m
w
M*
O
3
3J
3
fa
O I"H
« ■"σ-
H-o1-1aS.pcr»
"Fb
\Cu
P3
71
V)
H-
W
rr
03
3
O
a>
w
§

>ΌΌ
Π)
3Λ
Η>ΗM
CflHMn>r1
?
>ηΗΜ<ΜΗ
*<TABLE 5:REGIONAL ANALYSIS OFFUND GRANTS 1975-1980 (continued )
IRELAND
Donegal -
Nortn We»t
West
Mid West
South Weat
South Ea»t
Midlands
East
Norcn East
Mulci-regional
projects
Correction
(decomroitments
plus exchange
variations )I.Industry ,crafts
and services
TOTAL
1980
9.91(10 )TOTAL
1975-1980
(26)(18)(18)(21)(16)
(24)
(22)
(1)
79.80(159 )II.Infrastructure
TOTAL
1980
(2)
(4)
(2)
(2)
(2)h)
ta)
(4)
67.91(25 )TOTAL
1975-1980
(28)
116)
(37)
(28)
(36)
(46)
(43)
(44)(21)
(33)
137.66(332 )III .Infrastructure in
hill farming areas
TOTAL
1980TOTAL
1975-1980
w
>i}(12)
(5)
(7)
12.55(67 )
TOTAL
•0.74 MEUA should beadded onERDF share infinancing astudy closely linked toFund activityIV.Totals
TOTAL
1980
f21
m
W
(2)
(6)
(3)
(4)
77.82(35 )»TOTAL
1975-1980
(48)
(26)
(84)
(51)
(66)
(67)
(64)
(68)
(50)
(34)
230.01(558 )»
-4.08
225.93 •50
a>
ÎQ
H«0
3
P3
–·
P33
Ρ
o1–'<
OVîH
3
etH·
7ÌDÎσ-
H*ι–»
30CT>
C
a>&LH
s-/G3
CL
P3
•7Ì
W
H·
W
rr
û)
3η
ro
00
U1

00
TABLE 5SREGIONAL ANALYSIS OFFUND GRANTS 1975-1980 (continued )
ITALIA
Abruzzi
Basilicata
Caiabr la
CampaniaFriuli-Venezia Giuli
Lazio
Marche
Molise
Pugl ia
SardegnaSicil la
Toscana
Multi-regional
projects
-Basilicata-Puglia
-Abruzzi-Lazio
-Mezzogiorno
Correction
(decommitments
plus exchange
variations )
TOTALI.Industry ,crafts
and services
TOTAL
1980
33.74(48 )
7.54(35 )
9.21(22 )2.99(13 )
8.62(20 )
4.46(17 )0.52(3 )
67.08
(158)TOTAL
1975-1980
50.37(127 )
6.15(19 )
2.93(19 )46.37(198 )
44.46(153 )
7.88(31 )1.80(6 )
64.73(128 )6.98(36 )21.47(103 )1.00(5 )
254.14
(825)II.Infrastructure
TOTAL
1980
9.02 c12.75 ?
69.07 c
98.43 (
18.86 (
10.37c
8.40 c
3.81c
24.91(21.21(
66.39c
9.42(1 )2.59(4 )
66.93(1 )
422.16
(1344 )TOTAL
1975-1980
36.18(87 )24.22(364 )116.95(525 )259.29(406 )42.14(282 )40.81 (142)
15.94(97 )
18.40)163 )
91.93(84 )94.46(370 )179.14(95 )2.19(1 )
68.79(4 )
14.45(5 )110.79(2 )
1115.68
(2627 )III .Infrastructure in
hill farming areas
TOTAL
1980
0.41(20)
0.41
(20)TOTAL
1975-1980
0.42(14 )3.36(117 )
6.47I
4.621235 )
191) 4.
3.09(72 )
1.77(38 )0.37(18 )
2.59(75 )5.46(104 )3.36(85 )11.28(115 )
42.79
(1054 )IV.Totals
TOTAL
1980
42.76(92 )12.75(20969.07(345105.97(29118.86(100
19.58(70 )
11.39(83 )3.81(7 )33.53(80 )21.62(158
70.85(78 )0.52(3 )
9.42(1 )2.59(4 )66.93(1 )
489.65 <
(1522 )TOTAL
1975-1980
86.97(228 )
500)
779)
795)33.73(500126.35(779310.28(795
45.23(35487.04(333
24.19(13622.79(244162.12(316104.80(491
211.89(3133.19(6 )
68.79(14.45c
110 .79(
1412.61 •
(4506 )
-15,88
1396,73 •n
o
3
rr
H-
3
C
<T>
Cu
•6.15 MEUA should beadded onERDF share infinancing 13studies closely linked toFund activity
M
§

>ν
T>n
3a
Η·Κ
>
Η>ΗΜ
<ΧΗΜO>f
Χ
ο
►ή
>ηΗ
Η
<<TABLE 5:REGIONAL ANALYSIS OFFUND GRANTS 1975-1980 (continued )
I.Industry ,crafts
and servicesII.Infrastructure III .Infrastructure in
hill farming areasIV .Totals
TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980TOTAL
1980TOTAL
1975-1980
NEDERLAND
Noord-Nederland
Limburg6.99(1 ) 6.99(1 )5.52(2 )9.66(3 )5.89(3 )40.17(21 )17.82(10 )- - 16.65(4 )5.89(3 )47.16(22 )23.34(12 )
TOTAL 6.99(1 ) 12.51(3 ) 15.55(6 ) 57.99(31 )- - 22.54(7 ) 70.54(34 )
UNITED KINGDOM
North England
North West England
Yorkshire Hum&erside
East Midlands
South West England
Scotland
Wales
North Midlands
Wesc Midlands
Correction
(decommitments
plus exchangevariations )29.02(4 )
18.10(5 )
2.91(3 )0.19(1 )
2.34(6 )16.63(22 )
38.95(2 )11.42(14 )
119.56
(57)67.18(108 )
99.61 (57)
7.63(33 )2.13(11 ) 2.13(11 )
4.43(29 )55.64(113 )
59.93(76 )56.44(74 )4.43
55.64
352.99
(501)11.52(22 )
12.49(20 )25.08(38 )I
i0.vai.jo )
0.88(6 )
0.40(3 )24.81(53 )
27.69(101
18.19(11 )0.46(5 )
121 .52
(259)112.25(512 )54.26(356 )
47.12(290 )
2.31 (42)
15.51(99 )
133.85(439 )
89.95(541 )74.40(111 )0.54(8 )
530.19
(2398 )1.51(8 )
1.51(8 )12.23(76 )
0.71(18 )
12.94(94 )
TOTAL
•0.13 MEUA should beadded onERDF share infinancing astudy closely linked toFund activity40.54 (30.59 (
27.99(
1.07?
2.74(42 .95(
66 .64(
29.61 (0.46 (
242.59
(324)179.43(620 )153 .87(413)
54.75(323 )4.44(53 )19.94(128 )
201.72(628 )
149.88(617 )
131.55(203 )0.54(8 )
896.12m
869.56SJ
Π)
jQ
Η·
O
3
23
ι–*
23
3
03
/-\oH-»
oJtH
crH·
7103
cr
I–'
DOra
C
<τ>α
s-/£Ln
3α
09
7>
fSï
Η·
ζΛ
rr
fr
¡3
O
00
-vi

00
00
TABLE 6:BUDGET SITUATION (Quota section )(1)
1.lis*ofcommitment aDDroDrlations fMEUA }
Appropriations available for 1980 Appropriations used 1980 Appropriations
unused at
31.12.19801980
budgetBrought forward
from 1979
(1)(a)Appropriations made available by: Total Commitments (2)
decommitmentsexchange ratevariation from
previous
decommitments
1,106.750 48.221 25.473 -10.803 1,169.641 1,137.785 31.855
2.Use made ofDavment aDDroDrlations (MEUAl
Appropriations available in1980 Payments made in1980 Appropriations unused at31.12.1980
Brought forward
for 1979 (1)(b)1980 budget Total From sums broughtforward from 1979From 1980
appropriationsTotal
forwardFrom sums brought
from 1979From 1980
appropriations
339.043 392.375 731.418 339.043 387.655 726.698- 4.720
3.Trend Incommitments CMEUA }
1975-1979
commitment
unpaid at
1.1.80Decommitments
andadjustments1979 commitments 75-79 commitments
unpaid at
31.12.79
+1980 commitmentsPayments
in1980Commitments
unpaid at31.12.80From sums
brought forward
from 1979Fund 1980
appropriât .Total
1,132.876 -14.670 48.221 1089.564 1137.795 2,255.982 726.698 1529.283
(1)(a)Includes transfer of45MEUA ofCommitment appropriations from
theguota free tothequota section .
(1)(b)Includes transfer of16MEUA ofpayment appropriations fron the
auota free tothequota section .
(2)Deduction made fron decommitments (withdrawals )1980 (0.39 MEUA )
andadjustments due toexchange rate variations (11.61 MEUA )
P18

TABLE 7:PAYMENTS (1)
Member
StateCommitments 75/79
unpaid at
31.12.79
(2)Commitments 1980
(2)Payments :from sums committed ins Total payments
ontotal co-
mmitment 1980Commit .
paid
at
31.12.80Payments
1975 /77 1978 1979 1980as
comr
merof
nit–
its
MEUA X MEUA % MEUA MEUA MEUA MEUA MEUA 2 MEUA End
1979End
1980
Β
DK
D
F
IRL
I
L
NL
UK18.608
11.154
59.588
191.784
62.425
461.189
1.454
18.346
293.6481.7
1.-
5.3
17.2
5.6
41.2
0.1
1.6
26.311.632
11.957
69.023
194.793
76.942
473.867
0.485
22.260
276.825I.-
I.I
6.1
17.1
6.8
41.6
2!-
24.31.408
0.650
2.561
7.646
0.225
2.785
0.133
9.0010.693
1.148
7.305
16.183
3.663
32.852
0.063
0.316
39.1363.508
6.207
22.699
39.364
21.830
144.776
0.565
2.094
88.9900.976
1.434
17.884
36.469
44.283
68.666
0.364
5.156
96.1146.585
9.438
50.449
99.662
69.552
249.080
0.992
7.698
233.2420.9
1.3
6.9
13.7
9.6
34.3
0.1
1.1
32.123.655
13.673
78.163
286.915
69.815
685.976
0.948
32.908
337.23151.6
66.4
68.7
54.2
55.1
44.4
49.8
61.6
58.153.1
69.4
64.2
55.2
67.1
47.5
71.1
53.0
65.6
EC 1118.196 100 1137.785 100 23.959 101.358 330.034 271.345 726.698 100 1529.283 53.2 56.4TJ
05
3Η
203
3σ"
η-ι–·
ν)Π>
3-J
53α
π>
i1jPoint 3ofChapter V.
(2)Includes decommitments in1980 andadjustments duetoexchange rate variations .

TABLE 8:INSPECTION VISITS CARRIED OUTOVER THEPERIOD 1975-1980
<0O
m
§Number ofprojects inspected
Country andregion 1980 1975 -1980
Industry Infrastructure Industry Infrastructure
Vlaanderen- - - 11
Wallonie– 1 3 1
Belgique- 1 3 12
Groenland_ « - 19
Nordjylland- - 7
Viborg- • 1
Danemark- - 8 19
Schleswig-Holstein_ - 8 10
Niedersachsen- – 8 8
Nordrhein-Westfalen 5 2 15 2
Hessen- – 8 5
Rheinland-Pfalz - - 9 3
Saarland- - 4 3
Bayern- - 6 7
Baden-Wuert temberg 5 6 5 6
Deutschland 10 8 63 44
Alsace• 10_
Aquitaine- - 11 1
Auvergne- • 5 4
Basse-Normandie - – - 2
Bretagne- - 6 5
Languedoc-Rouss ilion- - 10 2
Limousin- - 5 4
Lorraine- - 6-
Midi-Pyrenees- - 8 3
Pays delaLoire 7 3 7 6
Poitou-Charentes- - 9 3
D.O. M._ - 7 5
Rhone-Alpes 9 1 9 1
Nord -Pas-de-Calais 10 - 10-
France 26 A 103 36
Donegal_ - - 4
North West – - 1 1
West - - 3 3
Mid West - - 1 5
South West – - 3 6
South East 5 2 6 2
Midlands - 2 2
East Î 4 2 7
North East - - 2 1
Ireland 6 6 20 3100

TABLE 8!INSPECTION VISISTS CARRIED OUTOVER THEPERIOD 1975-1980 (continued )
Number ofprojects inspected
Country andregion 1980 1975 -1980
Industry Infrastructure Industry Infrastructure
Abbruzzi
Basilicata
Calabria
CampaniaFriuli-Venezia Giulia
Lazio
Marche
Molise
Puglia
SardegnaSicilia6
5
6
7
6
67
7
11
3
5
6
66
14
11
8
12
8
6
9
6
118
15
17
18
20
7
7
10
5
13
14
Italia 36 45 91 134
Luxembourg- - - 2
Groningen
Limburg
Friesland- -2
1
1
Nederland - - - 4
Northern England
North West EnglandYorkshire 4Humberside
Midlands
South West England
Scotland
Wales
Northern Ireland3
3
5
410
10
11
7
711
10
10
2
6
11
15
1235
35
20
5
19
42
31
7
United Kingdom 15 45 77 194
Community ,per
category 93 109 365 476
Community ,total 202 841

APPENDIX B.BIBLIOGRAPHICAL ANNEX
PROVISIONS ADOPTED ONCOMMUNITY REGIONAL POLICY
EUROPEAN REGIONAL DEVELOPMENT FUND
•Regulation (EEC)No.724/75of the Council of 18March 1975
establishing aEuropean Regional Development Fund .
(O.J. No.L73of21March 1975 ,page 1)
•Regulation (EEC )No.241/79oftheCouncil of6February 1979 amending
Regulation (EEC)No.724/75establishing aEuropean Regional
Development Fund .
(O.J. No.L35of9February ,page 1)
•Regulation (EEC)No.3325 /80ofthe Council of16December 1980
amending Regulation (EEC )No.724/75establishing aEuropean Regional
Development Fund (73).
(O.J. No.L349of23December 1980 ,page 10)
•Council Decision 75/86/EEC of18March 1975 toapply Regulation (EEC)
No.724/75establishing aEuropean Regional Development Fund tothe
French overseas departments .
(O.J. No.L73of21March 1975 ,page 49)
•Commission Regulation (EEC)No.2364 /75of 15September 1975 on
calculating aids ,taking the form ofreduced rate ofinterest or
interest rebate notexpressed bynumber ofpercentage points .
(O.J. No.L243of17September 1975 ,page 9)
•Regulation (EEC)No.2615 /80ofthe Council of 7October 1980
establishing aspecific Community measure contributing to the
development ofcertain French and Italian regions inthecontext of
Community enlargement .
(O.J. No.L271of15October 1980 ,page 1)
•Regulation (EEC )No .2616 /80of the Council of 7October 1980
establishing aspecific Community measure ofregional development
contributing tothe removal ofobstacles tothe development ofnew
economic activities incertain areas affected byrestructuring of
steel industry .
(O.J. No.L271of15October 1980 ,page 9)
73The text oftheFund Regulation ,brought uptodate will befound at
Annex c.
Appendix B.BIBLIOGRAPHICAL ANNEX 93

•Regulation (EEC)No.2617 /80ofthe Council of 7October 1980
establishing aspecific Community measure ofregional development
contributing tothe removal ofobstacles tothedevelopment ofnew
economic activities incertain areas affected bytherestructuring of
theshipbuilding industry .
(O.J. No.L271of15October 1980 ,page 16)
•Regulation (EEC)No.2618 /80of the Council of 7October 1980
establishing aspecific Community measure ofregional development
contributing toimprovement ofenergy supplies incertain Community
regions through abetter use ofnew technology with regard to
hydro-electrical supply andalternative sources ofenergy .
(O.J. No.L271of15October 1980 ,page 23)
•Regulation (EEC)No.2619 /80of the Council of 7October 1980
establishing aspecific Community measure ofregional development
contributing tothe improvement oftheeconomic and social situation
ofthefrontier areas ofIreland andNorthern Ireland .
(O.J. No.L271of15October 1980 ,page 28)
REGIONAL P0LICY COMMUTEE
•Council Decision 75/185/EEC of 18March 1975 creating aRegional
Policy Committee .
(O.J. No.L73of21March 1975 ,page 47)
•Council Decision 79/137/EEC of6February 1979 amending Decision
75/185/EECcreating aRegional Policy Committee .
(O.J. No.L35of9February 1979 ,page 9)
•Rules ofprocedure oftheRegional Policy Committe No.75/761/EEC .
(O.J. No.L320of11December 1975 ,page 17)
REGIONAL DEVELOPMENT PROGRAMMES
•Outlme plan forrégional development programmes .
(O.J. No.C69of24March 1976 ,page 2)
•Opinion ofthe Commission of23May 1979 onregional development
programmes (79/534/EEC ).
(O.J. No.L143of12June 1979 ,page 7)
•Commission Recommendation of23May 1979 toMember States onregional
development programmes (79/535/EEC ).
(O.J. No.L143of12June 1979 ,page 9)
94 ERDF

OTHER PROVISIONS
•Council Resolution of6February 1979 onCommunity regional policy
guidelines .
(O.J ,No.C36of6February 1979 ,page 10)
•Council Decision 79/136/EEC of6February 1979 amending Decision
74/120/EEC onthe attainment ofahigh degree ofconvergence ofthe
economic policies of Member States of the European Economic
Community .
(O.J. No.L35of9February 1979 ,page 8)
COMMISSION PROPOSALS
Commission Communicationto the Council of18February 1981 indicating
categories ofinfrastructure towhich theEuropean Regional Development
Fund maycontribute inthevarious regions eligible forFund aid .
PUBLICATIONS
Available insixofficial languages unless other otherwise indicated (74)
PERIODICAL PUBLICATIONS
•European Regional Development Fund .
1stAnnual Report (1975 ).Supplément 7/76totheEuropean Communities
Bulletin -1976 -38pages .
•European Regional Development Fund .
2ndAnnual Report (1976 )-1977 -63pages .
•European Regional Development Fund .
3rdAnnual Report (1977 )-1978 -95pages .
•European Regional Development Fund .
4thAnnual Report (1978 )-1979 -96pages .
•European Regional Development Fund .
5thAnnual Report (1979 )-1980 -101pages
•Atlas ofRegional Development (1981 )-1981 -16pages .
•The European Regions ,First Periodical Report onthe economic and
social situation ofCommunity regions -1981
74DE :German ;DK :Danish ;EN :English ;FR ;French ;IT ;Italian ;NL ;
Netherlands
Appendix B.BIBLIOGRAPHICAL ANNEX
(8)95

OCCASIONAL PUBLICATIONS
•TheEuropean Community and itsregions .
European documents No .1/1980 -18pages .
•Regional development and theEuropean Community .
European File No.8-1981 -8pages .
•Aids and loans oftheEuropean Community -1979 -44pages .
•Principal regulations ofthe Council oftheEuropean Communities on
regional policy 1979 -1981 (Texts ofthemain proposals ).
REGIONAL POLICY SERIES :STUDIES /PROGRAMMES
No.1 The trend inFlemish economy considered inaninternational
perspective .
1973 .88pages (DA,DE,EN ,FR,IT,NL).
No.2 Regional development programme forGreenland 1977-1979 .
1977 .54pages (DA,EN,FR).
No .3 Non-production activities inU.K. manufacturing industry .
1977 .186pages (EN).
No.4 Geographical concentration inEuropean Community countries .
1977 .136pages (DE,EN,FR ,1T).
No .5 Feasibility-study onthesituation and development possibilities
ofprospective regional Labour market balances inthe European
Community .
1977 .292pages (DE)(ENsummary ).
No.6 Regional development programme Mezzogiorno 1977-1980 .
1978 .270pages (DE ,EN ,FR,IT).
No.7 Regional development programme Ireland 1977-1980 .
1978 .142pages (DE,EN,FR).
No.8 Regional development programmes Netherlands 1977-1980 .
1978 .140pages (DE,EN,FR ,NL).
No.9 Frontier workers inEurope (byCharles Ricq )(published by
Antrhopes ,Paris ,1981 ).
No.10Regional development programme United Kingdom 1978-1980 .
1978 .142pages (DE,EN,FR).
96 ERDF

No.11 Régional development programme Grand Dutchy ofLuxembourg .
1978 .70pages (DE,EN,FR).
No.12 Regional development programmes Denmark .
1978 .78pages (DA,DE,EN,FR).
No.13 Regional development programmes France 1976-1980 .
1978 .196pages (DE,EN,FR).
No.14 Regional development programmes Belgium 1978-1980 .
1979 .228pages (DE,EN,FR,NL).
No.15Regional aids intheEuropean Community :acomparative study .
1979 .333pages (EN,FR)(DA,DE,IT,NL :incourse ).
No.16Regional development programmes of the Federal Republic of
Germany including Berlin (West )1979-1982 .
1979 .379pages (DE ,EN,FR).
No.17Regional development programmes .1979 .330pages (DA ,DE,EN ,FR,
IT,NL) (Summaries of programmes ofall Member States ,a
comparative analysis ,opinion and recommendations of the
Commission ).
No.18Disincentives and deconcentration policies in the European
Community .Comparative study .
1981 -266pages (DA,DE ,EN,FR ,IT,NL).
No.19 The role ofservice activities inregional policy .Comparative
study .
1980 .249pages (DE,EN ,FR).
Appendix B.BIBLIOGRAPHICAL ANNEX 97

INTERNAI .DOCUMENTATION ONREGIONAL POLICY
The papers inthis series are published inalimited number ,above allas
working papers for Commission departments and other Community
institutions .They maynevertheless beput atthedisposal ofpersons or
organisations outside theCommunity with aspecial interest inagiven
subject .
No.1Cross border communications study fortheLondonderry andDonegal
area :Summary report .
1978 .28pages (EN)
No .2 Research study into provisions for recreation and Leisure in
areas affected byoil related industry inthe Highlands and
Islands ofScotland :Summary report .
1978 .140pages (EN)
No.3 Development Strategy for regions inrural areas :The case ofthe
Belgian South -East -Summary report .
1978 .104pages (FR)
No.4 Frontier workers inEurope -Summary report .
1978 .44pages (DA,DE .EN,FR,IT,NL).
No.5 Relocation ofeconomic activities traditionally located mthe
Copenhagen area :Final report .
1978 .225pages (EN)
No.6 Interregional air services inEurope .Summary ofreport (1st
phase ).
1978 .52pages (FR)
No.7 The role ofservice activities inregional policy -Summary of
national studies andcomparison .
1980 .117pages (DE,EN,FR)
No.8 Interregional airservices inEurope -Summary report .
1980 .78pages (FR)
98 ERDF

APPENDIX C.PRINCIPAL INSTRUMENTS
UpdatedversionofthetextofCouncilRegulation EECNo724/75of18March
1975establishing aEuropeanRegionalDevelopment Fund.
CouncilRegulation EEC724/75of18March1975establishing aEuropean
RegionalDevelopment Fund(OJNoL73of21.3.1975p.1)andamendmentsresult­
ingfromRegulations EECNo214/79andNo3325/80(OJNoL35of9.2.1979p.1
andOJNoL349of23.12.1980p.10)arecombinedinthepresentedition.
Thiscoordination iswithoutlegalforce
omitted.
TITLE1
PRELIMINARY PROVISIONS
ArticleÎ
TheEuropeanRegionalDevelopment Fund,
hereinafterreferredtoas'theFund',isintendedto
correcttheprincipalregionalimbalanceswithinthe
Communityresultinginparticularfromagricultural
preponderance ,industrialchangeandstructural
under-employment .
Article2andaccordingly thepreamblehasbeen
Fortheyear1981,
TheresourcesoftheFundintendedforfinancing
theseactivitiesshallbedistributedinaccordance
withthefollowingtable:
Belgium 1,11X
Denmark 1,06X
Germany 4,65X
Greece 13,00X
France 13,64X
Ireland 5,94X
Italy 35,49X
Luxembourg 0,07X
Netherlands 1,24X
UnitedKingdom 23,80X
1.Asfromthefinancialyear1978,theendowment
fortheFundshallbedeterminedannuallyinthe
generalbudgetoftheEuropeanCommunities .
2.Theannualbudgetshallindicateforthe
relevantyearundertheFundheading:
(a)commitmentappropriations ;
(b)paymentappropriations .
Savewhereotherwiseprovidedforinthespecial
provisionslaiddowninthisRegulation,theFinancial
Regulationapplicabletothegeneralbudgetofthe
Communities shallapplytothemanagementofthe
Fund.
3.ThefollowingmaybefinancedbytheFund
withaviewtocontributingtotherealizationofthe
objectivesreferredtoinArticle1:
(a)Communityactioninsupportofregionalpolicy
measurestakenbytheMemberStates,as
providedforinTitleIIofthisRegulation.(b)specificCommunity regionaldevelopment
measures,asprovidedforinTitleIIIofthis
Regulation .Thesumallottedtosuchmeasures
shallamountto5%oftheFund'sresources.
Resourceswhichcannotbeusedintimeforsuch
measuresshallbeallocatedtothesupporting
actionreferredtoin(a).
ThewholeoftheFund'sresourcesforfinancing
thesemeasuresshallbeusedhavingdueregard
totherelativeseverityofregionalimbalancesin
theCommunity .
Article3
1.Regionsandareaswhichmaybenefitfromthe
Fundshallbelimitedtothoseaidedareasestablished
byMemberStatesinapplyingtheirsystemsof
regionalaidsandinwhichStateaidsaregranted
whichqualifyforFundassistance.
WhenaidfromtheFundisgranted,priorityshallbe
giventoinvestmentsinnationalpriorityareas,taking
accountoftheprinciplesforthecoordination at
Communitylevelofregionalaids.
Appendix C.PRINCIPAL INSTRUMENTS 99

2.AspartofthespecificCommunityregional
developmentmeasuresreferredtoinArticle2(3)(b),
theFundmayalso,whereappropriate,giveassistance
inregionsorareasotherthanthosereferredtoin
paragraph1,forthesolutionofproblemsforming
thesubjectofCommunityaction,iftheMember
Stateconcernedhasalsogivenassistanceordoesso
atthesametime.
TITLEII
COMMUNITY ACTIONINSUPPORTOFREGIONAL
POLICYMEASURES TAKENBYTHEMEMBER
STATES
Chapter1
Fieldofaction
Article4
I.AspartofCommunityactioninsupportof
regionalpolicymeasurestakenbytheMemberStates,
theFundmaycontributetothefinancingof
investmentswhichindividually exceed50000
Europeanunitsofaccountandcomeunderanyof
thefollowingcategories:
(a)investmentsinindustrial,handicraftorservice
activitieswhichareeconomically soundand
whichbenefitfromStateregionalaids,provided
thatatleast10newjobsarecreatedorthat10
existingjobsaremaintained.Inthelattercase,
theinvestmentsshouldfallwithintheframework
of§conversionorrestructuringplantoensure
thattheundertakingconcernediscompetitive.
Preftrenceshall,however,begiventooperations
whichbothmaintainexistingjobsandcreatenew
jobs.
Serviceactivitiesqualifyingforassistanceshallbe
thoseconcernedwithtourismandthosewhich
haveachoiceoflocation.Suchactivitiesshould
haveadirectimpactonthedevelopmentofthe
regionandonthelevelofemployment .
ForthepurposesofthisArticle,agroupof
investmentswhicharerelatedgeographically and
financially,andwhichtogethercomplywiththe
criteriaprovidedforinthisArticle,maybe
consideredasasingleinvestmentinthefieldof
handicraftsortourism:(b)investmentsfinancedwhollyorinpartbypublic
authoritiesorbyanyotheragencyresponsible,
onasimilarbasistoapublicauthority,forthe
creationofinfrastructures ,andcovering,
providedthatthisisjustifiedbyregional
developmentprogrammes,infrastructures which
contributetothedevelopmentoftheregionor
areainwhichtheyaresituated,providedthatthe
totalshareoftheoverallassistancegrantedby
theFundforfinancingtheinvestmentsreferred
tointhispointdoesnotexceed70%ofthe
Fund'sassistance.
Thispercentagemustbecompliedwithovera
periodofthreeyears;however,itmaybe
exceededbydecisionoftheCouncilactingona
proposalfromtheCommission .
InadministeringtheFund,theCommissionshall
takeaccountoftheparticularsituationofcertain
regionsonthebasisoftheprogrammesreferred
toabove.MemberStatesshalltakeallstepsto
enabletheprovisionsofthispointtobeapplied;
(c)investmentsininfrastructures coveredbyArticle
3(2)oftheCouncilDirectiveonmountainand
hillfarmingandfarmingincertainless-favoured
areas,providedthattheless-favoured areain
questioncorrespondstoorislocatedwithinone
oftheregionsorareascoveredbyArticle3of
thisRegulation .
2.TheamountoftheFund'scontributionshallbe:
(a)inrespectofinvestmentscoveredbyparagraph
1(a),20%oftheinvestmentcostwithout,
however,exceeding50%oftheaidaccordedto
eachinvestmentbypublicauthoritiesundera
systemofregionalaids,suchcontributionsbeing
limitedmoreovertothatpartoftheinvestment
whichdoesnotexceed100000Europeanunitsof
accountperjobcreatedand50000European
unitsofaccountperjobmaintained.
Inthecaseofservicesandhandicrafts,theFund's
contributionmay,bywayofderogationfromthe
firstsubparagraph,exceed20%ofthe
investmentcost,providedthattheamountdoes
notexceedinsuchcase10000Europeanunitsof
accountperjobcreatedormaintained,or50%
ofthenationalaid.
TheStateaidtobetakenintoconsideration shall
begrants,interestrebates,ortheirequivalent
whereloansatreducedratesofinterestare
concerned,whethersuchaidislinkedtothe
investmentortothenumberofjobscreated.
100ERDF

Suchaidmayincludeaidgrantedinrespectofan
investmentinconnectionwiththetransferof
plantandworkers.Theaidequivalentshallbe
calculatedinaccordancewithanimplementing
RegulationunderthetermsofArticle16.Aid
grantedintheformofrentrebatesorexemptions
frompaymentsofrentforbuildings,including
plant,mayalsobetakenintoaccount,provided
thatthesamecalculationispossible.
Thecontribution fromtheFundthusdefined
may,pursuanttoapriordecisionoftheMember
Stateconcernedcommunicated atthesametime
astherequestforthiscontribution ,either
supplementaidgrantedtotherelevant
investmentbypublicauthoritiesorremain
creditedtothoseauthoritiesandconsideredasa
partialrepaymentofsudiaid;
(b)inrespectofinvestmentscoveredbyparagraphs
1(b)and(c),30%oftheexpenditureincurred
bypublicauthoritieswheretheinvestmentisless
than10millionEuropeanunitsofaccountand
from10to30%maximumforinvestmentsof10
millionEuropeanunitsofaccountormore.
However,themaximumratemaybe40%for
projectswhichareofparticularimportanceto
thedevelopmentoftheregioninwhichtheyare
situated.
TheFund'sassistancemayconsistwhollyorin
partofarebateofthreepercentagepointson
loansmadebytheEuropeanInvestmentBank,
pursuanttoArticle130(a)and(b)oftheTreaty,
intheregionsandareasreferredtoinArticle3of
thisRegulation.Inthatevent,theaidfromthe
FundshallbepaidtotheBankinoneinstalment,
therebatebeingacapitalizedsumexpressedasa
percentageoftheinvestment .
Chapter2
Proceduralprovisions
Artide5
1.TheFund'sassistanceshallbedecideduponby
theCommissionaccordingtotherelativeseverityof
theeconomicimbalanceoftheregionwherethe
investmentismadeandthedirectorindirecteffectof
theinvestmentonemployment .TheCommission
shallexamine,inparticular,theconsistencyofthe
investmentwiththerangeofactionsundertakenby
therelevantMemberStateinfavouroftheregion
concerned,asapparentfrominformationsuppliedby
MemberStatespursuanttoArticle6andtaking
specialaccountof:(a)theinvestment'scontributiontotheeconomic
developmentoftheregion;
(b)theconsistencyoftheinvestmentwiththe
Community'sprogrammesorobjectives;
(c)thesituationoftheeconomicsectorconcerned
andtheprofitabilityoftheinvestment;
(d)whethertheinvestmentfallswithinafrontier
area,thatistosay,withinregionsadjacentto
oneormoreotherMemberStates;
(e)othercontributions madebyCommunity
institutionsorbytheEuropeanInvestmentBank,
eithertothesameinvestmentortoother
activitieswithinthesameregion.Thus
contributions fromtheFundwillbecoordinated
withotherCommunitycontributions,insucha
wayastofavourarangeofconvergingand
coordinatedactionswithinagivenregionandto
guarantee,inparticular,consistencybetween
regionalpolicyandstructuralpolicyfor
agriculture.
2.(a)Inrespectofinvestmentsof10million
Europeanunitsofaccountormore,the
Fund'sassistanceshallbethesubjectofa
CommissionDecisionundertheprocedure
providedforinArticle16.
Inrespectofinvestmentsininfrastructure
costing10millionormoreEuropeanunitsof
account,theCommission shall,before
obtainingtheopinionoftheFundCommittee
referredtoinArticle15,consulttheRegional
PolicyCommittee .
(b)Inrespectofinvestmentscostinglessthan10
millionEuropeanunitsofaccount,the
Commissionshallprovidepriorinformation
fortheMemberStatesintheformofa
simplifiedlistofinvestmentsforwhich
requestsforassistancehavebeenreceived.The
procedureprovidedforinArticle16shall
applyinthecaseof:
–draftnegativedecisions,wherethe
MemberStateconcernedsorequests,
–allotherdraftdecisionsinrespectof
whichtheCommission oraMemberState
wishesanopiniontobesoughtfromthe
FundCommittee .
Article6
I.investmentsmaybenefitfromtheFund's
assistanceonlyiftheyfallwithintheframeworkofa
regionaldevelopmentprogrammetheimplementation
ofwhichissuchastocontributetocorrectionofthe
mainregionalimbalanceswithintheCommunirv
Appendix C.PRINCIPAL INSTRUMENTS101

whichmayprejudicetheproperfunctioningofthe
commonmarketandtheconvergenceoftheMember
States'economies,withaview,inparticular,tothe
attainmentofeconomicandmonetaryunion.
2.Regionaldevelopmentprogrammes shallbe
establishedaccordingtothejointplanpreparedby
theRegionalPolicyCommittee.
3.MemberStatesshallnotifytheCommissionof
regionaldevelopmentprogrammesandalterationsto
programmesalreadynotified.
4.Theprogrammes shallbeofanindicative
natureandspecifytheobjectivesofthedevelopment
oftheregionconcernedandthemeanstobe
employed.Theyshallbethesubjectofconsultation
withtheRegionalPolicyCommittee.The
Commissionshallexaminetheseprogrammesinthe
lightofthecriteriareferredtoinArticle5(1)(b)in
ordertoenableittodeterminetheprioritiesfor
assistancefromtheFund.
J.Before31Marcheachyear,MemberStatesshall
bringtheregionaldevelopmentprogrammesupto
datebyprovidingtheCommissionwithallavailable
informationforthecurrentyearnotcontainedinthe
programmes on:
(a)thefinancialresourcesallocatedtoregional
developmentundertheirprogrammes ;
(b)theprioritymeasuresrelatingtoregional
developmentwhichtheyintendtoimplement;
(c)theusetheyintendtomakeofCommunity
resources,andinparticularofresourcesfromthe
Fundinimplementingtheseprioritymeasures.
Anyotherrelevantinformationshallbeforwardedto
theCommission assoonasavailable.
6.Before1Octobereachyear,MemberStates
shallprovidetheCommissionwithanoverall
statisticalsummaryindicatingbyregionforthe
previousyear:
(a)theresultsadiievedintheregionintermsof
investmentandemployment;
(b)thefinancialmeansemployed;
(c)theactualusemadeoftheresourcesoftheFund.
Article7
1.MemberStatesshallsubmitrequestsfor
assistancefromtheFundtotheCommission ,andshallindicateanyfactorswhichwillallowthe
Commissiontoassessthevalueoftheinvestments
proposedinthelightofArticles5and6.
2.-Inrespectoftheinvestmentsreferredtoin
Article4(1)oflessthan10millionEuropeanunits
ofaccount,MemberStatesshallpresenttheirglobal
requestsatthebeginningofeachquarter.Theyshall
grouptheserequestsbyregionandshallseparate
investmentsreferredtoinArticle4(1)(a)from
investments ininfrastructure .
Theserequestsshallindicate:
(a)inrespectoftheinvestmentsreferredtoinArticle
4(1)(a),thenamesoftheundertakings
concerned,thesectoroftheiractivityandthe
locationofeachinvestment,alsoitscharacter
(foundation,extension,conversionorrestructur­
ingoftherelevantconcern),thetotalamountof
investmentinvolved,thepredictedoveralleffect
onemployment (creationormaintenance),
estimatesregardingtheimplementation schedule,
totalaidsgrantedforwhichacontributionfrom
theFundisrequestedandtheschedulelaiddown
fortheirpayment;
(b)inrespectofinvestmentsininfrastructure ,the
locationofeachinvestmentanditscharacter,its
contributiontothedevelopmentoftheregion,
thepredictedtotalcostsandthecostsborneby
publicauthoritiesandtheschedulelaiddownfor
theirpayment,thenameoftheresponsible
authorities,thetotalcontributionrequestedfrom
theFund,andestimatesregardingthe
implementation schedule.
3.Inrespectofinvestmentsof10million
Europeanunitsofaccountormore,requestsshallbe
presentedseparatelyandshallincludethefollowing
information :
(a)inrespectofrheinvestmentsreferredtoinArticle
4(1)(a)thenameoftheundertaking,thesector
ofactivity,thenatureoftheinvestment,its
location,theeffectonemployment,the
implementation schedule,thegrants,interest
rebatesorloansatreducedratesofinterestand
theschedulelaiddownforthepaymentofsuch
aids,anyotherformofaidgrantedorprovided
forbypublicauthoritiesandthefinancingplan,
indicatinginparticularanyotherCommunity
aidsrequestedorprovidedfor.
TheMemberStateshallstateinitsrequestthe
totalaidwhichinitsopinionshouldbegranted
totheundertakingandthecontributionitis
seekingfromrheCommunity :
102ERDF

(b)inrespectofinvestmentsininfrastructure,the
responsibleauthority,thenatureofthe
investment,itslocation,itscontributiontothe
developmentoftheregion,itscost,itsfinancing
plan,itsimplementation scheduleandthe
schedulelaiddownforpayments.
4.AidfromtheFundshallbedeterminedbythe
Commission :
(a)intheaggregateforeachrequestcoveredby
paragraph2;
(b)casebycaseforrequestscoveredbyparagraph3.
5.MemberStatesshallgiveprioritytothe
presentationofrequestsforcontributionstowards
investmentsof10millionEuropeanunitsofaccount
ormore.
ArticleS
1.TheamountofthecontributionfromtheFund
defined,whereapplicable,bycalculatingtheaid
equivalentpursuanttotheimplementingRegulation
referredtoinArticle4(2)(a)shallbepaidpari
passuwithexpenditureuponpresentationbythe
MemberStateofquarterlystatementscertifying
expenditureandtheexistenceofdetailedsupporting
documents,andcontainingthefollowing
information :
(a)forintermediatepaymentrequests:
–thenameoftheundertakingconcerned,or,
forinfrastructures ,thenameoftheresponsible
authority,
–thelocationoftheinvestment,
–totalpublicexpenditurepaidafterthedate
referredtoinArticle11andthatpartofthe
amountforwhichpaymentisrequested,
–theamountofthepaymentrequestedfrom
theFund,
–aforecastoffuturepaymentrequests;
(b)forfinalpaymentrequests,alltheinformation
referredtoin(a)exceptthelastindent,together
with:
–thesumactuallyinvestedandconfirmation
thattheinvestmentmadeconformswiththe
initialproject,
–thedateofcompletionoftheinvestment,–thenumberofjobscreatedormaintainedin
beingbytheinvestmentsreferredtoinArticle
4(1)(a),
–theamountsofpublicexpenditure.
2.Incaseswhereexpenditureprovidedforbythe
decisionsreferredtoinArticle7consistsofaids
grantedintheformofinterestrebatesorloansat
reducedratesofinterest,thecontributionoftheFund
relatingtotheseaidsandwhichisstillduewhenthe
investmentsarecompletedshallbesettledinasingle
paymentonpresentationofthecertificatescovering
completionoftheinvestments .
3.Acceleratedpaymentsunderadecisiontogrant
aidfromtheFundmaybegrantedbythe
CommissiontoaMemberStateatthelatter'srequest.
Theymaynotexceed75%ofthetotalamountof
theaidfromtheFund.Suchacceleratedpayments
shallbesubjecttotheconditionthatatleast30%of
thepaymentsconstitutingthebasisforaidfromthe
Fundhavebeenmade.
Paymentsalreadymadepursuanttoparagraph1(a)
underthedecisiontograntaidshallbededucted
fromtheacceleratedpayments.
ThebalanceoftheaidfromtheFundshallbepaidin
accordancewithparagraph1asregardspaymentsby
theMemberStatesnotcoveredbytheaccelerated
payment.
Groupedapplicationsforacceleratedpaymentsshall
besubmittedonaquarterlybasistotheCommission
bytheMemberStateconcerned.
4.MemberStatesshalldesignatetheauthorityor
theinstitutionauthorizedtofurnishthecertification
referredtointhisArticle.TheCommissionshall
makepaymentstotheMemberState,toanagency
designatedbytheMemberStateforthispurpose,or
ifnecessarytotheEuropeanInvestmentBank.
Article9
1.Whereaninvestmentwhichhasbeenthesubject
ofacontributionfromtheFundhasnotbeenmade
asplanned,oriftheconditionsofthisRegulationare
notfulfilled,thecontributionfromtheFundmaybe
reducedorcancelled,iftheCommissionsodecides
afterconsultingtheFundCommittee.
Anysumswhichhavebeenpaidinerrorshallbe
repaidtotheCommunitybytheMemberState
concernedor,whereapplicable,bytheEuropean
InvestmentBank,within12monthsfollowingthe
dateonwhichtherelevantdecisionhasbeen
communicated .
Appendix C.PRINCIPAL INSTRUMENTS103

MemberStatesshallrepaytheCommissionthe
amountoftheFund'sassistancewherevernational
aidusedasthebasis(orcalculatingtheFund's
assistancehasbeenrepaidtotheMemberStateby
theinvestor.
2.MemberStatesshallmakeavailabletothe
Commissionallinformationrequiredfortheeffective
operationoftheFundandshalltakeallstepsto
facilitatesuchsupervisionastheCommissionmay
considerusefulinmanagingtheFund,including
on-the-spotchecks.TheyshallnotifytheCommission
ofthecasesreferredtointhefirstsubparagraph of
paragraph1.
3.Notwithstanding verificationcarriedoutby
MemberStatesinaccordancewithnationallaws,
regulationsandadministrative provisionsand
withoutprejudicetotheprovisionsofArticle206of
theTreatyortoanyinspectionarrangedonthebasis
ofArticle209(c)oftheTreaty,attherequestofthe
CommissionandwiththeagreementoftheMember
State,thecompetentauthoritiesofthatMemberState
shallcarryouton-the-spotchecksorenquiriesabout
operationsfinancedbytheFund.Officialsofthe
Commissionmaytakepartintheseproceedingsand
th£Commissionmayfixatimelimitforcarrying
themout.
4.Theobjectiveoftheseon-the-spotchecksor
enquiriesaboutoperationsfinancedbytheFundshall
betoverify:
(a)theconformityofadministrative practiceswith
Communityrules;
(b)theexistenceofsupportingdocumentary
evidenceanditsconformitywiththeoperations
financedbytheFund;
(c)theconditionsunderwhichtheoperations
financedbytheFundareexecutedandchecked;
(d)theconformityofprojectsimplementedwiththe
operationsfinancedbytheFund.
5.^TheCommissionmaysuspendpaymentofaid
toaparticularoperationifaninspectionreveals
eitherirregularitiesorasubstantialchangeinthe
characterorconditionsoftheprojectforwhichthe
Commission'sapprovalhasnotbeensought.
6.Notwithstanding Article6(2)oftheFinancial
Regulationof21December1977applicabletothe
generalbudgetoftheEuropeanCommunities ('),
ifaprojectreceivingaidfromtheFundisnot
(■)OJNoL356,31.12.1977,p.1.completedorisimplementedinsuchamannerasno
longertojustifypaymentofpartoftheaidfromthe
Fundgrantedonbehalfofthatproject,the
outstandingpartoftheFund'scontributionshallbe
grantedtoanotherinvestmentlocatedinoneofthe
eligibleregionsofthesameMemberStateunderthe
conditionslaiddowninthisRegulation.
Article10
1.Theinvestorsconcernedshallbeinformedby
agreementwiththeMemberStatesinquestionthat
partoftheaidgrantedtothemhasbeenprovidedby
theCommunity.Forinfrastructure projects,the
MemberStates,byagreementwiththeCommission,
shalltakeallnecessarystepstoensurethatassistance
fromtheFundisgivensuitablepublicity.
2.Thelistofprojectswhichhavereceived
contributionsfromtheFundshallbepublishedevery
sixmonthsintheOfficialJournaloftheEuropean
Communities .
Article11
TheCommission shalltakeintoconsideration for
FundassistancepaymentsmadebytheMember
Statesasfromthe12thmonthbeforethedateon
whichitreceivestherequestforassistance,inrespect
ofinvestmentsnotcompletedbythatdate.This
periodshallbeincreasedto24monthsforpayments
inrespectofinvestmentsinGreenland.
Article12
1.TheFundmaycontributetothefinancingof
studieswhicharecloselyrelatedtoFundoperations
andareundertakenattherequestofaMemberState.
2.Suchassistancemaynotexceed50%ofthe
costofthestudy.
TITLEIII
SPECIFICCOMMUNITY REGIONAL DEVELOPMENT
MEASURES
Article13
1.TheFundmayparticipateinfinancingspecific
Communityregionaldevelopmentmeasureswhich
104ERDF

differinwholeorinpartfromthetypesofmeasure
referredtoinTitleII.Theseshallbemeasures:
–eitherlinkedwithCommunitypoliciesandwith
measuresadoptedbytheCommunityinorderto
takebetteraccounterftheirregionaldimensionor
toreducetheirregionalconsequences,
–or,inexceptionalcases,intendedtomeetthe
structuralconsequences ofparticularlyserious
occurrencesincertainregionsorareaswitha
viewtoreplacingjobslostandcreatingthe
necessaryinfrastructures forthispurpose.
Thesemeasuresshallnothaveastheirobjectthe
internalreorganization ofdecliningsectorsbutmay,
byestablishingneweconomicactivities,promotethe
creationofalternativeemploymentinregionsor
areasinadifficultsituation.
Thesemeasuresshallbefinancedjointlybythe
CommunityandtheMemberStateorStates
concerned .
2.MemberStatesshallprovidetheCommission
withinformationonregionalproblemslikelytobe
thesubjectofspecificmeasureswithinthemeaning
ofparagraph1.
3.Withoutprejudicetotheresponsibilities ofthe
CommissionwithregardtoStateaidunderArticles
92,93and94oftheTreaty,theCouncil,acting
unanimouslyonaproposalfromtheCommission
andafterconsultingtheEuropeanParliament,shall
determineforeachofthesemeasurestobe
implementedintheformofaspecialprogramme :
(a)thenatureoftheoperationstowhichtheFund
maycontribute;
(b)theareasandregionswhichtheFundmayassist;
(c)thenationalpublicaidtakenintoconsideration
ingrantingFundassistance;
(d)thecontributionoftheFund;
(e)thecategoriesofbeneficiariesofFund
assistance;
(f)thedetailedrulesforfinancing.
4.RequestsforFundassistanceforthesespecial
programmesshallbesubmittedtotheCommission
bytheMemberStates.Thefifthsubparagraph of
Article4(2)(a)andArticle10shallapply.Artide14
1.TheFundmaybearallorpartofthecostof
studieswhicharecloselyrelatedtothemeasures
referredtoinArticle2(3)andareundertakenatthe
requestofoneormoreMemberStates.
2.TheCommissionshalldecidewhethertogrant
assistancefromtheFundinaccordancewiththe
procedurelaiddowninArticle16,afterconsulting
theRegionalPolicyCommittee.
TITLEIV
GENERALANDFINALPROVISIONS
Article15
1.AFundCommittee (hereinafterreferredtoas
'theCommittee' )isherebyestablished .Itshallbe
composedofrepresentatives oftheMemberStates
andchairedbyarepresentative oftheCommission .
2.WithintheCommitteethevotesoftheMember
StatesshallbeweightedinaccordancewithArticle
148(2)oftheTreaty.Thechairmanshallnotvote.
Article16
1.WheretheprocedurelaiddowninthisArticleis
tobefollowed,thechairmanshallreferthematter
totheCommitteeeitheronhisowninitiativeorat
therequestoftherepresentativeofaMemberState.
2.Therepresentative oftheCommissionshall
submitdraftsofdecisionstobetaken.The
Committeeshalldeliveritsopiniononthedrafts
withinthetimelimitwhichthechairmanmayfix
accordingtotheurgencyofthequestionsunder
consideration .Anopinionshallbeadoptedbya
majorityof41votes.
3.TheCommission ,shalladoptdecisionswhich
shallapplyimmediately .However,ifthesedecisions
arenotinaccordancewiththeopinionofthe
Committee,theyshallforthwithbecommunicated
bytheCommissiontotheCouncil.Inthateventthe
Commissionshalldeferapplicationofthedecisions
whichithasadoptedfornotmorethantwomonths
fromthedateofsuchcommunications .TheCouncil,
actingbyaqualifiedmajority,maytakeadifferent
decisionwithintwomonths.
Appendix C.PRINCIPAL INSTRUMENTS105

Article17
TheCommitteemayconsideranyotherquestion
concerningtheFund'soperationsreferredtoitbyits
chairmaneitheronhisowninitiativeorattherequest
oftherepresentativeofaMemberState.
Article18
Thenecessarymeasuresfortheimplementation of
thisRegulationshallbeadoptedinaccordancewith
theprocedurelaiddowninArticle16.
Article19
1.MemberStatesshalladoptthenecessary
measurestoindicateseparately,accordingtothe
specialcharacteristics ofnationalbudgetsystems,the
sumsreceivedfromtheFund.
2.AttherequestoftheCommission ,Member
Statesshallprovideitwithinformationonthe
allocationoftheamountsreceivedfromtheFund.
Article20
Assistance ,fromtheFundshallnotchangethe
conditionsofcompetitioninawayincompatiblewith
theprinciplescontainedintherelevantprovisionsof
theTreaty,aselaboratedintheprinciplesforthe
coordinationofthegeneralregionalaidschemes.Inparticular,theprovisionsofthisRegulationshallnot
prejudicetheapplicationofArticles92,93and94of
theTreaty,particularlyasregardsestablishingand
realigningtheareasaidedforregionalpurposes
referredtoinArticle3andinrespectoftheamount
ofthecontributions fromtheFund.
Article21
1.BeforeIOctobereachyeartheCommission
shallpresentareporttotheCouncil,theEuropean
ParliamentandtheEconomicandSocialCommittee
ontheimplementation ofthisRegulationduringthe
precedingyear.
2.Thisreportshallalsocoverthefinancial
managementoftheFundandtheconclusionsdrawn
bytheCommissionfromthechecksmadeonthe
Fund'soperations.
Article22
OnaproposalfromtheCommission ,theCouncil
shallre-examinethisRegulationbefore1January
i9a&
Article23
ThisRegulationshallenterintoforceontheday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
106 ERDF

LIST OFMAPS
Map 1Regional Fund Aid 1975-1980 36
LIST OFMAF^ 107

LIST OFTABLES
Table 1Loans granted pursuant toArticle 56oftheECSC Treaty .. 11
Table 2Regional aids in1979 (MEUA ) 14
Table 3Types ofinvestment applied for in1980 20
Table 4Result ofinvestigation ofaidapplications 21
Table 5Assistance granted andinvestments financed bycategories
ofprojects ... 23
Table 6Level ofuse andbalances available end 1980 28
Table 7Draft decisions presented totheFund Committee in1980 ..29
Table 8Summary ofdecisions ongrants 1975-1980 31
Table 9Trend inbalances carried forward since 1975 32
Table 10Fund Assistance ,1975-1980 andmain social andeconomic
indicators 39
Table 11Operations affecting budget availability 60
Table 12Payments in1980 62
Table 13Distribution ofannual payments byMember States .... 63
Table 14Trend mpayment appropriations since 1975 64
Table 15Number ofinvestment projects controlled since the
creation oftheFund 66
Table 16Installed information posters 70
LIST OFTABLES 109