ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)528
Vol.1980/0173

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)528final
Brussels,16thSeptember1980
PROPOSALS FORACOUNCILREGULATION (EEC)
-instituting aspecificCommunityRegionalDevelopment Measurecontributing
tothedevelopment ofcertainFrenchandItalianregionsinthecontextof
Communityenlargement;
-instituting aspecificCommunityRegionalDevelopment Measurecontributing
toovercomingconstraints onthedevelopment ofneweconomicactivitiesin
certainzonesadverselyaffectedbyrestructuring oftheshipbuilding in­
dustry;
-instituting aspecificCommunityRegionalDevelopment Measure,contribu­
tingtoovercomingconstraints onthedevelopment ofneweconomicactivi­
tiesincertainzonesadverselyaffectedbyrestructuring ofthesteel
industry;
-instituting aspecificCommunityRegionalDevelopment Measurecontributing
toimprovingsecurityofenergysupplyincertainCommunityregionsbyway
ofimproveduseofnewtechniquesforhydro-electrical powerandalternative
energysources;^r:
-instituting aSpecial'CommunityRegionalDevelopment Measurecontributing
totheimprovement -oftheeconomicandsocialsituationoftheborderareas
ofIrelandandNorthern^IreIand.SpecialCommunityRégi
NorthernIreland..
ITi,V ri
V^,. .>
;*SY
(presentedbytheCommissiontothe
... .Council)
C0MC80)528final

Proposal for a
COUNCIL REGULATION
instituting aspecific Community Regional Development
Measure contributing tothedevelopment ofcertain French
andItalian regions inthecontext ofCommunity enlargement
THE COUNCIL OPTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)No724/75of18March 1975 (l)
establishing aEuropean Regional Development Fund asamended byCour.cil
Regulation (EEC)No214/79of6February 1979 (2)andparticularly
Article 13(3),
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament (3),
Having regard totheOpinion oftheEconomic andSocial Committee (4),
Whereas Article 13ofRegulation No724/75(hereinafter referred toas
"theFund Regulation ")provided ,independently ofthenational allocations
ofresources fixed byArticle 2(3)a)oftheFund Regulation ,forparti­
cipation oftheFund infinancing specific Community regional development
measures ,which areparticularly linked with Community policies andwith
measures adopted bytheCommunity inorder totake better account oftheir
regional dimension ortoreduce their regional consequences j
Whereas theMember States concerned have provided theCommission with
information onregional problems likely tobethesubject ofaspecific
Community measure :
€11OJNoL73,21.3.1975
(2)OJNoL35,9-2.1979
(3)OJNoC85,8.4.19BO
(4)OJNoC83,2.4.1980

Whereas theFund 'sresources areallocated having dueregard tothe
relative severity ofregional imbalances within theCommunity ;
Whereas thetreaty ofaccession with Greece wassigned on28May1979 and
whereas itisplanned that this country will become aMember oftheCommunity
asftom 1January 1981 ;whereas negotiations onaccession started with
Portugal andSpain respectively on17October 1978 and 5February 1979 >
Whereas thesouthern regions oftheCommunity could beaffected by
itsenlargement ,particularly because ofincreased competition inmarkets
forcertain agricultural products andbecause ofproblems involved in
adapting their economic fabric j
Whereas among these regions ,theMezzogiorno andthe tlree French regions
adjacent toSpain have anexceptionally high rate ofemployment inagri­
culture ,with substantial dependence onMediterranean agricultural pro­
duction ,andareotherwise characterised byweakness oftheir industrial
fabric ,tyahigh level ofunemployment andalowlevel ofactivity ;
Whereas itisintheCommunity 'sinterest that theenlargement process
should take place harmoniously ;and itistherefore necessary ,even before
theaccessions become effective ,toundertake vigorous structural measures
inorder that these regions maybeable toadapt toenlargement ;and itis
appropriate that theCommunity should make aspecial contribution to
measures tobeundertaken tothis endbytheMember States concerned by
instituting aspecific Community regional development measure onbehalf
ofthese regions ;
Whereas measures have already been taken inthefield ofthecommon agri­
cultural policy /andother assistance from Community Funds ;capable ofbeing
usefully combined /must becarried out inthese regions ;
Whereas small andmedium-sized undertakings (hereinafter referred toas
"SMD")andcraft industry occupy animportant place intheindustrial fabric
ofthese regions ,andthus itisdesirable toincrease employment bydovelop -
ping such enterprises ,particularly inallowing them toadapt better their
production tomarket needs and toimprove their management ;

Whereastheweaknessofcommunication infrastructure incertainoftheseregions
isanimpedimenttoadaptationofsuchenterprises;
Whereastheintroduction ofnewtechnological productsandprocesses cancontri­
butetothecreationanddevelopment ofviableeconomicactivitiesintheseregions
andthatSMUencounterdifficulties inundertaking innovation;
Whereastheseregionshaveapotentialforruraltourismandthepromotion and
coordinated management ofthistypeoftourismcanhaveanimpactonjobsand
incomeforthepopulations concerned;
WhereastheCommunity measuremustbeimplemented intheformofspecialmulti-
annualprogrammes,whereasitisfortheCommission,inadoptingtheseprogrammes,
toensurethattheoperations plannedtherundercomplywiththeprovisionsof
thisRegulation;
WhereastheCommission mustverifythatthespecialprogrammes areproperly
carriedoutbyexaminingtheannualreportswhichtheMemberStatesconcerned
willpresenttoitforthispurpose;
Whereesthespecialprogrammes mustrespondtocertainoftheobjectives
encompassed bytheregionaldevelopment programmesprovidedforunderArticle6
(3)oftheFundRegulation ;.
/
WhereastheCouncil,theEuropeanParliament andtheEconomicandSocialCommittee
mustbeinformedregularlyontheimplementation ofthisRegulation;

HAS ADOPTED THIS REGULATION :
1 Article 1
Aspecific Community regional development measure (hereinafter referred
toas"thespecific measure ")inthesense ofArticle 13oftheFund
Regulation ,ishereby established contributing tothedevelopment of
certain French andItalian regions within thecontext ofCommunity
enlargement .
Article 2
Thespecific measure shall beapplicable totheregions oftheMidi-
Pyrenees ,Aquitaine andLanguedoc-Roussillon inPrance and tothe
regions oftheMezzogiorno inItaly .

Article 3
Thespecific measure shall "beimplemented intheform ofaspecial pro­
gramme (hereinafter referred toas"thespecial programme ")to "bepresented
totheCommission byeach oftheMember States concerned .
Theobjective ofthespecial programme shall "beto reinforce eco­
nomic structures andtocreate employment intheregions specified in
Article 2.Tothis end ,itshall aimatdeveloping small andmedium-sized under
takings (SMU)andcraft industries ,particularly "byfacilitating their access to
markets ,onthe "basis ofmarket analyses ,byadapting anddeveloping both
their production facilities andtheir surrounding infrastructures ,andby
improving their management .Itshall also have theaimofpromoting inno­
vation andboosting thepotential fortourism .
Thespecial programme must fall within theframework oftheregional
development programmes mentioned inArticle 6(3)and (4)ofthePond
Regulation .
Thespecial programma must contain appropriate infor -
mation ,asspecified intheAnnex tothis Regulation ,analysing the
situation andneeds related totheaims stated inparagraph 1,the
operations proposed ,theimplementation plan ,and,ingeneral ,allfactors
necessary toenable itsconsistency with regional development objectives
tobeassessed .
Theduration ofthespecial programme shall be5years starting from the
sixtieth dayafter thedate onwhich this Regulation enters into force .
Thespecial programme shall beapproved bytheCommission after intervention
bytheFund Committee inaccordance with theprocedure laid down inArticle 16
ofthe Fund Regulation .
TheCommission shall inform theEuropean Parliament oftheamounts adopted
fortheregions when thespecial programme isapproved .
Once ithasbeen approved bytheCommission ,thespecial programme shall be
published forinformation intheOfficial Journal oftheEuropean Communities .

-6-
Article 4
TheFund mayparticipate ,within theframework ofthespecial programme ,
inthefollowing operations :
1.Making available toSMUmeans andservices allowing them toenlarge
their potential activities .
a)Preparation ofsectoral analyses intended toprovide SMUwith
information onthepotential ofnational .Community andexternal
markets andontheeffects tobeanticipated therefrom onthe
production andorganization ofSMU .
\ . .
'b)Aids toinvestments inSMUdesigned toassist theadaptation of
their production tomarket potential when justified "bythe
above-mentioned analyses orother market studies .Such invest­
ments mayalso concern common services provided foranumber
ofundertakings . ,
c)Establishment orpromotion ofconsultancy firms orother bodies
formanagement andorganization matters bymeans ofdirect or
indirect aid .Activities ofsuch firms orbodies mayinclude tem­
porary assistance toundertakings forimplementing their recom­
mendations .
d)Establishment orpromotion ofcommon services foranumber of
undertakings .
e)Provision orimprovement ofcommunications infrastructure ,bet
ween undertakings andtheir economic environment ,especially road
access andtheimprovement oftelecommunications andinformatics
networks ;theprovision orimprovement ofcommon services infra­
structure .
f)Organization ofinformation seminars designed toenable SMUmanage­
ment toadapt better tochanges inproduction methods .
g)Better access forSMUtorisk capital .

Promotion ofinnovation inindustry andservices :
ι
a)Collection ofinformation relating toproduct andtechnological
innovation anditsdissemination among undertakings operating in
theregions covered bythespecific measure ,which mayinclude
experimental work onsuch innovation .
b)Encouragement oftheimplementation ofproduct andtechnology
innovation inSMU .
Promotion ofcraft industries :
Inaddition totheoperations provided forinparagraph 1from
which craft industries maybenefit ,thefollowing operations may
receive assistance from theFund : v . ' .
¥
a)Improvement oftechnical andeconomic information forcraftworkers ,
inparticular "byintroducing technical assistance officers
b)Upgrading ofcraft industries :researching into techniques ,
disseminating andadapting them ,including innovations and
improving sales conditions .
Promotion ofrural tourism :
a)Construction orconversion ofsmall hotels ,preparation offarm
holiday accommodation /camping andcaravanning sites .
b)Establishment anddevelopment ofjoint services orbodies respon­
sible forprQmotion ,publicity ,stimulating tourist interest and
co-ordinated management oftourist accomodation andfacilities ,
including theorganization ofinformation seminars forthestaff
concerned .
Inthecase ofregions onwhose territory the level oftourist acti­
vity isunbalanced infavour ofcoastal zones ,these bodies may
also beresponsible formeasures toredress thebalance ,including
studies ofappropriate tourist itineraries .They mayalso have the
task oforganizing children 'sholiday centres andopen-air school
classes .

-.8-
c)Provision offacilities and .infrastructure directly linked tothe
development oftourism ,including recreational activities andcultural
activities .
d.)Intheregions covered bypoint (h),second paragraph ,development of
transport undertakings enabling tourists staying onthecoast tohave
easier access toinland tourist zones andalso toprovide transport
tochildren fsholiday centres andopen-air school classes .
/

Article 5
Thespecialprogrammeshallbethesubjectofjointfinancingbetweenthe
MemberStateandtheCommunity.Thecontributions fromtheFundshallbe
providedwithintheframeworkoftheappropriations enteredforthispurpose
inthegeneralbudgetoftheEuropeanCommunities .TheCommunitycontribution
shallbe:
a)ForSMU:
-operationsrelatingtosectoralanalysesunderArticle4(1)a):
70%ofthetotalexpenditure;
-operationsrelatingtoinvestments underArticle4(1)b):50%ofthe
publicexpenditure resultingfromthegrantingofaidtotheinvestment/
butnotmorethan30%ofthecostoftheinvestment .Publicaidmay
taketheformofacapitalgrantoraninterestrebate.TheCommunity
aidmaybesupplementary totheexistingaidsystem;
-operationsrelatingtoconsultancy servicesunderArticle4(1)c):aid
coveringpartoftheexpenditure ofundertakings relatingtoservices
providedbyconsultancy firmsorbodies.Theaidshalllastforthree
yearsandshallbedegressive .Itshallcover70%ofexpenditure in
thefirstyearandshallnotexceed55%ofaverageannualexpenditure
overthethreeyearperiod(indirectaid);
-inrespectofsuchoperations/theMemberStatemayreplacethissystem
byanequivalent systemofaidtoconsultancy firmsorbodies(directaid)
-operationsrelatingtocommonservicesunderArticle4(1)d):aid
coveringpartoftheexpenditure ofundertakings relatingtotheoperation
oftheseservices.Theaidshalllastforthreeyearsandshallbe
degressive.Itshallcover70%ofexpenditure inthefirstyearand
shallnotexceed50%ofaverageannualexpenditure overthethreeyear
period;
-operationsrelatingtoinfrastructure underArticle4(1)e):50%of
publicexpenditure ;
-operationsrelatingtoinformation seminarsunderArticle4(1)f)
70%oftheorganization costs;

-10-
-operations relating torisk capital under Article 4(l)g)*
contribution totheoperating costs ofthe financial institutions
providing risk capital forSMU.Thecontribution shall "be70$of
thecost oftherisk evaluation studies carried outbyoron
behalf ofthese financial institutions .
b)For innovation :
-operations concerning collection anddissemination ofinformation on
innovation under Article 4(2)a):aidcovering part ofoperating
costs ofbodies engaged insuch activities ,provided that these acti­
vities arenewandconcern specifically theregions covered byArticle
2.Theaidshall last forthree years andbedegressive .Itwill
cover 70%oftheoperating costs inthefirst year andwill notexceed
55%oftheaverage annual expenditure -over thethree year period .
-operations forimplementing innovation under Article 4(2)b):70%
ofthecost offeasibility studies that mayconcern allaspects ,in-
1eluding commercial ,oftheimplementation ofinnovation ,andlimited
to50.000 EUAperstudy .These studies must beundertaken byoron
behalf ofenterprises isituated intheregions covered byArticle 2.
c)Forartisan activities :
-foroperations under Article 4(l)forwhich craft enterprises may
qualify theprovisions ofparagraph 1(a)above shall applyj
-operations under Article 4(3)a)and4(3)b):70f°ofpublic
expenditure .
d)Forrural tourism :
-operations relating toaccomodation under Article 4(4)a):where
theinvestment islinked toagricultural activity ,50f°ofpublic
expenditure resulting from thegranting ofaidtotheinvestment ;in .
other cases ,50$ofpublic expenditure resulting from thegranting
ofaidtotheinvestment ,butnomore than 30foofthecost ofthe
investments

operationsforpromotionoftourismunderArticle4(4)b):aid
coveringpartoftheoperatingcostsofcommonservicesorbodies.
Theseoperatingcostsmayincludethecostofpublicitycampaignsand
studiesoftouristcircuits.Thisaidshalllastforthreeyearsand
bedegressive.Itshallcover70%oftheoperatingcostsinthe
firstyearandshallnotexceed55%oftheaverageannualcostover
thethreeyearperiod.
-operationsrelatingtofacilitiesandinfrastructure underArticle4
(4)c):50%ofpublicexpenditure;
operationsfordevelopmentoftransportenterprisesunderArticle4
(4)d):thefirstyear,50%ofpublicexpenditureresultingfroma
contributiontonetoperatingcostsoftransportservices.Theaid
shalllastforthreeyearsandbedegressive.
Thecategoriesofbeneficiaries ofPondassistanceinrespectofoperations
providedforinthepreviousparagraphmay"be:publicandlocalauthoritie
other"bodies,undertakings orindividuals.Theaidsreferredtointhe
thirdandfifthindentsofparagraph(l)a)andwheretheydirectly "bene­
fitenterprises,thosereferredtointhesecondindentofparagraph(l)"b)
maynothavetheeffectofreducingthesharepaid"byenterprisestoless
than20$oftotalexpenditure.
TheamountoftheFund'sassistanceinfavourofthespecialprogramme
maynotexceedtheamountfixed "bytheCommissionatthetimewhenthis
programmeisapprovedunderArticle3(5)*
Budgetarycommitmentsrelatedtotheimplementation ofthespecialpro­
grammeshall "bedecided "byannualtrancheinaccordancewithprogress
made.

Article6
?
TheamountoftheFundcontribution inrespectofthemeasuresincludedin
thespecialprogrammeshallbepaidtotheMemberStateconcerned (orin
accordance withtheinstructions thelattercommunicates tothisendtothe
Commission )accordingtothefollowingrules:
a)Expenditure incurredfromthedateofentryintoforceofthisRegulation
shallbeeligible.
b)Whenthereisafinancialcontribution bytheMemberState,payments/other
thanadvancepaymentsreferredtoinpointc),shallbemadeasfaras
possibleinparallelwiththepaymentoftheMemberState'scontribution .
Inanyothercase,paymentsshallbemadewhentheMemberStatecertifies
thatthepaymentisdueandmaybepaidbytheCommunity.
Eachrequestforpaymentshallbeaccompanied byastatementfrom^he
MemberStatecertifying theoperation andtheexistenceofdetailedsup­
portingdocuments,andshallcontainthefollowinginformation :
-thenatureoftheoperations coveredbythepaymentclaim;
-particulars oftheamountandnatureofexpenditure paidinrespect
ofthedifferentoperations duringtheperiodcoveredbytheclaim;
-confirmation thattheoperations describedinthepaymentclaimhave
beenbeguninaccordance withthespecialprogramme.
c)Onproduction bytheMemberStateconcernedofwrittenevidencethatthe
specialprogramme hasalreadyoccasioned expenditure underanannual
tranche,theFundmay,attheState'srequest,makeanadvanceof30Xof
theappropriations committed.Whentheamountofthisadvancehasbeen
exhausted andwhentheMemberStatehasforwardedtotheCommission the
certificate referredtoinsubparagraph b),furthersuccessive advance
paymentsmaybemade,eachof30%oftheappropriations committedfor
eachannualtranche.
Attheendofeachyear,theMemberStateconcernedshallpresenttothe
Commission areportontheprogressmadeincarryingoutthespecialprogramme
byreferencetotheinformation requiredintheAnnextothisRegulation.

-13"
These reports should enable theCommission tosatisfy itself that thespecial
programme isbeing executed ,toobserve itseffects andtoestablish that
thedifferent operations arebeing carried out inacoherent manner .They
shall beforwarded totheRegional Policy Committee .
Onthe "basis ofthese reports and therelevant decisions ,theCommission shall
report under theconditions laid down inArticle 21ofthePond IIemulation .
Where major amendments aremade toaspecial programme during implementation ,
theprocedure provided forinArticle 3(5)would apply .
When each special programme hasbeen implemented ,areport shall bepresented
bytheCommission totheRegional Policy Committee .
3.Theprovisions ofArticle 9,paragraphs 1to5oftheFund Regulation shall
apply ,asrequired ,tothespecific measure provided forinArticle 1of
this Regulation .
Article 7
This Regulation shall enter into force onthedayfollowing itspublication in
theOfficial Journal oftheEuropean Communities .
Theadoption ofthis Regulation shall notprejudice there-examination ofthe
Fund Regulation provided forinArticle 22ofthat Regulation which istotake
place before 1January 1981 ,onaproposal from theCommission .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done atBrussels ,
Forthe Council

-14-
ANNEX
Thespecial programme shall include thefollowing information on
theregions covered under Article 2ofthis Regulation :
1.Inrespect ofSMJ :
a)-Analysis ofthesituation oftheSMUmtheeconomic fabric of
theregion foreach sector ofactivity concerned .Analysis of
their situation andtheir needs ,inparticular details onthe
market situation ,possibilities ofadaptation tomarkets ,manage­
ment andorganization consultancy services ,communications infra­
structure ,management information andaccess torisk capital .
-Description ofaidsystems fortheSMUandthenature ofexisting
services available showing ,bycategories ofaids andservices ,
theresultant annual average public expenditure involved .
b)Inrelation totheoperations referred toinArticle 4ofthis
Regulation :
–Particulars ofthenature ofsectoral analyses bearing onpro­
duction structures ,market potential andmeasures tobsimple­
mented morder toadapt anddevelop production andmake it
commercial ;
„-Description ofrules governing investment aids set
upwithin theprogramme framework ;
–Particulars ofincentives foraccess tomanagement andorganiza­
tion consultancy services andaids forprovision ofjoint ser­
vices towhich theSMUmayhave recourse ;
–Details and exact location ofinvestments incommunications
infrastructure ;

-Particulars ofmeasures planned formanagement information .
–Description ofmeasures planned toallow SI-IUeasier access to
risk capital .
Inrespect ofinnovation :
 
a)Analysis oftheneeds ofundertakings andofthemeans currently
available tothem forobtaining access toinformation oninno­
vation andforimplementing it,andassessment ofrelated public
expenditure ; ,
b)Inrelation totheoperations referred toinArticle 4ofthis
Regulation :
description ofmeasures designed toensure collection anddissemi­
nation ofinformation oninnovation and ,ontheother hand ,to
facilitate itsimplementation bySMD .
Inrespect ofcraft industries :
a)-Description ofthesituation andneeds ofcraft industries ,
asregards their means ofaccess totechnical and economic
information andexploitation ofcraft techniques ;
-Inaddition ,where theaids provided forinArticle 4(l)ofthis
Regulation arealso granted tocraft enterprises ,thespecial pro­
gramme shall include theinformation referred toinparagraph 1
above ;
b)Inrelation totheoperations referred toinArticle 4ofthis
Regulation :description ofmeasures oraidsystems planned .
Inrespect ofrural tourism :
a)-Analysis ofthesituation andneeds ofrural tourism initsdiffe­
rent forms ,andanestimate ofpotential tourist demand forthe
period covered bytheprogramme ;
–Description ofexisting aidsystems forthebenefit ofrural
tourism ,andanassessment ofrelevant public expenditure .
b)Inrelation totheoperations referred toinArticle 4ofthis
Regulation :
-Details ofaidfortheconstruction orconversion ofaccomodation
–Details ofaids tobodies responsible forproviding tourism
facilities andpromotion .

-16-
-Description offacilities ,infrastructure and .recreational
andcultural facilities planned ;
–Name ,address and .details oftransport undertakings which could
participate intheimplementation oftheprogramme ,with anindi­
cation ofpublic service obligations .
Inrespect ofthetotality ofthespecial programme :
a)Adescription ,asfaraspossible with figures ,oftheobjectives
covered bythe .special programme ,particularly regarding employment .
b)Insofar asthis information hasnotbeen identified with suffi­
cient accuracy intheregional development programme ,description
oftheexisting orfuture public measures which itisintended
toimplement alongside thespecial programme andwhich will contri­
bute towards improving theemployment situation inthezones
covered byArticle 2ofthis Regulation .
c)Intentions ofthenational authorities regarding theuseofother
resources deriving fl'om Community structural funds .
d)Thetimetable forcarrying itout. ,
e)Estimation ofthevolume ofpublic expenditure connected with
theprogramme 'simplementation ,including anannual breakdown
ofsuch expenditure foreach oftheoperations envisaged .
f)Designation ofthebodies responsible forexecution ofthepro­
gramme andthevarious operations .
g)Information measures planned tomake the potential beneficiaries
andtheprofessional organizations aware ofthepossibilities
.offered bythespecial programme /andoftherole played bythe
Community inthis respect .

Proposalfora
,COUNCILREGULATION
instituting aspecificCommunityRegionalDevelopment
Measurecontributing toovercomingconstraints onthe
development ofneweconomicactivities incertain
zonesadverselyaffectedbyrestructuring ofthe
shipbuilding industry
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)N°724/75of18March1975(1)
establishing aEuropeanRegionalDevelopment FundasamendedbyCouncil
Regulation (EEC)N°214/79of6February1979(2)andparticularly its
Article13(3),
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament (3),
HavingregardtotheopinionoftheEconomicandSocialCommittee(4),
WhereasArticle13ofRegulation N°724/75(hereinafter referredtoas
'theFundRegulation')provides,independently ofthenationalallocations
ofresourcesfixedbyArticle2(3)a)oftheamendedFundRegulation,for
participation oftheFundinfinancingspecificCommunityregionaldevelop
mentmeasureswhichareparticularly linkedwithCommunitypoliciesand
withmeasuresadoptedbytheCommunityinordertotakebetteraccountof
theirregionaldimensionortoreducetheirregionalconsequences ;
WhereastheMemberStatesconcernedhaveprovidedtheCommissionwith
information onregionalproblemslikelytobethesubjectofaspecific
Community measure;
<1)OJN°L73of21.3.75
(2)OJN°L35of9.2.79
(3)OJN°C85'of8.4.80
(4)OJN°C83of2.4.80

-2-
WhereastheFund'sresourcesareallocatedhavingdueregardtotherelative
severityofregionalimbalanceswithintheCommunity;
Whereason4April1978the.CounciladoptedaDirective(4),onaidto
shipbuilding,inwhichitstatedthatshipbuilding productionstructures
shouldbeadjustedtothenewmarketconditionssuchthatundertakings may
induecoursebeabletofollowgeneraleconomicdevelopments andtomeet
competition ontheworldmarketwithoutthesupportofintervention by
publiefauthorities;
Whereason19September1978theCounciladoptedaResolution (5)onthe
reorganisation oftheshipbuilding industry,inwhichitrequestedthepublic
authoritiesatlocal,nationalandCommunityleveltolayparticularstress
onthecreationofnewjobsinconjunction withthoseprogressively lostin
theshipbuilding industry,totakeaccountoftheseobjectivesint^eir
regionalpoliciesandtomakeavailableadequatefundsforthispurpose;
WhereasacertainnumberofzonesintheCommunitywhicharehighlydependent
onshipbuilding andassociatedactivitiesandwhichhavealreadysuffered
considerable joblossesasaresultofthedeclineintheshipbuilding
industryriskanaggravation oftheseadverseconsequences ;
WhereascertainofthesezonesintheUnitedKingdomareinregionswhich
alreadyhavehighlevelsofunemployment ;
WhereasitisnecessaryfortheCommunitytoreinforcebymeansofaspecific
Communityregionaldevelopment measureexistinglocal,nationalandCommunity
financialmeasuresaimedatstimulatingthecreationofnewemploymentin
suchzonesinorderto.replacejoblossesandalsotocontributetoreducing
regionalimbalances;
Whereasotherinterventions byCommunityfunds,capableofbeingusefully
combined,shouldbemadeinthesezones,
Whereastheexistenceofanunfavourable physicalandsocialenvironment due
tothederelictionofcertainindustrialandurbansitesandinadequate
housingconditionsforworkersactasimpediments ontheattractionofnew
employment-providing activitiestosuchzones;
(4)OJL98/19of11.4.78
(5)OJC229/1of27.9.78,ref.paras.A(1),4(2),4(3)and 6(2)

-3-
Whereas encouragement ofthedevelopment ofsmall andmedium-sized under­
taking (hereinafter referred toas'SKU' ),which already occupy animportant
place intheeconomics ofthese zones ,requires that they behelped tohave
access tonecessary services inmanagement ,organisation andfinancing ;
Whereas theintroduction ofnewtechnological products andprocesses can
contribute tothecreation anddevelopment ofviable economic activities
inthese zones ,and that small andmedium undertakings encounter diffi­
culties inundertaking innovation ; '
Whereas theCommunity measure must beimplemented inthe form ofaspecial
multiannual programme ; .whereas itisfortheCommission inadopting this
programme toensure that theoperations planned thereunder comply with the
provisions ofthis Regulation ;
Whereas' theCommission must also verify that thespecial programme is
properly carried outbyexamining thereports which theMember State con­
cerned will present toitforthis purpose ;
Whereas thespecial programme must respond tocertain oftheobjectives
encompassed bytheRegional Development Programme provided forunder
Article 6(3)oftheFund Regulation ;
Whereas theCouncil ,theEuropean Parliament andtheEconomic andSocial
Committee must beinformed regularly ontheimplementation ofthis
Regulation ;

-4-
HAS ADOPTED THIS REGULATION :
Article 1
Aspecific Community regional development measure (hereinafter referred ,
toas"thespecific measure "), inthesense ofArticle 13oftheFund
Regulation ,ishereby established ,contributing toovercoming constraints
onthedevelopment ofneweconomic activities incertain zones adversely
affected byrestructuring oftheshipbuilding industry .
Article 2
Thespecific measure shall beapplicable tothefollowing zones :
IntheUnited Kingdom :Strathclyde region ,thecounties ofCleveland ,Tyne
andWear Merseyside ,andBelfast urban area .

-5-
Artide 3
1*Thespecif iomeasure shall feeimplemented intheform ofaspecial programme
(hereinafter referred toas'the speoial programme 1)tofeepresented tothe
Commission feytheUnited Kingdom .
Theaims ofthespecial programme shall feetooontrifeute tothedevolopmont
ofomploymont-providing aotivitiea inthezones referred toinArtiole 2.
.Itshall ,tothis end ,feedireoted attheimprovement oftheir physical and
social environment ,this feeing necessary inorder toencourage thesetting
upofsuch activities ,andatthedevelopment ofSMCTandtheencouragement
ofinnovation .
2.Thespecial programme must fall within theframework oftheregional develop­
ment programmes mentioned inArtiole 6(3)and (4)of "theFund Regulation .
3,Thespecial programme must contain appropriate information ,asspecified
intheAnnex tothis Regulation ,analysing thesituation andneeds related
totheaims stated inparagraph 1,theoperations proposed ,theimplementation
plan ,and,ingeneral ,allfactors necessary toenable itsconsistency with
regional development objectives tobeassessed .
4*Theduration ofthespecial programme shall fee5years starting from thesix­
tieth dayafter thedate onwhich this Regulation enters into force .
5.Thespecial programme shall feeapproved feytheCommission after intervention
feytheFund Committee inaccordance with theprocedure laid down inArtiole 16
oftheRegulation estafelishing anERDF .
6,TheCommission shall inform theEuropean Parliament oftheamounts adopted
forthezones when theopeoial programme isapproved *
7*Onoe ithasfeeen approved feytheCommission ,thespecial programme shall fee
pufelished forinformation intheOfficial Journal oftheEuropean Communities .

Article 4
ThePuna mayparticipate ,within theframework ofthespecial programme ,
inthefollowing operations t
Ν ,
1.Improvement ofrun-down areas whose character iseither industrial ,or
indvlstrial -and-urban tothe extent that these twoaspects cannot bedis­
sociated ,including tthecleaning-up andpreparation ofsuch areas ;
conversion ofdisused industrial buildings andtheir surroundings ,in­
cluding themodernization ofpremises forSMU,thecreation ofgreen areas
andminor works forimproving theappearance oflocalities ,andexceptio­
nally ,minor roads giving access tothelocations ofthenewactivities .
2.Construction andmodernization ofhousing toaccommodate workers inorder
toattract employment-providing activities such ashousing being rea­
sonably near theprojected sites ofthenewactivities ,provided that
thehousing situation constricts theexecution oftheprogramme in
>question .
3.Establishment orpromotion ofconsultancy firms orother bodies for 1
management ororganization matters bymeans ofdirect orindirect aid .
Activities ofsuch firms orbodies mayinclude temporary assistance to
undertakings forimplementing their recommendations .
4*Establishment ordevelopment ofcommon services foranumber of
undertakings .
5.Promotion ofinnovation inindustry andservices : i
a)tollection ofinformation relating toproduct andtechnological
Innovation anditsdissemination among undertakings operating in
thezones covered bythespecific measure ,which mayinclude experi­
mental work onsuch innovation .
b)Encouragement oftheimplementation ofproduct andtechnological
Innovation inSMU.
6.Better access forSMUtorisk capital .

Article5
Thespecialprogrammeshallbethesubjectofjointfinancingbetweenthe
MemberStateandtheCommunity..Thecontributions fromtheFundshallbe
providedwithintheframeworkoftheappropriations enteredforthispurpose
inthegeneralbudgetoftheEuropeanCommunities.TheCommunitycontribution
shallbe: •
-Operationsrelatingtoimprovement andconversionunderArticle4(1):
50Xofpublicexpenditure;
-Operationsrelatingtoconstruction andmodernisation ofhousingunder
Article4(2):50%ofpublicexpendituresubjecttoalimitof10,000EUA
perunitofaccommodation ; .
-OperationsrelatingtoconsultancyservicesunderArticle4(3):aid
coveringpartoftheexpenditureofundertakings relatingtoservices
providedbyconsultancy firmsorbodies.Theaidshalllastforthree
yearsandshallbedegressive.Itshallcover70Xofexpenditure inthe
firstyearandshallnotexceed55Xofaverageannualexpenditureoverthe
threeyearperiod(indirectaid);
-inrespectofsuchoperations/theMemberStatemayreplacethissystemby.
anequivalentsystemofaidtoconsultancy firmsorbodies(directaid);
-OperationsrelatingtocommonservicesunderArticle4(4):aidcovering .
partoftheexpenditure ofundertakings relatingtotheoperationofthese
services.Theaidshalllastforthreeyearsandshallbedegressive.,It
shallCover70Xofexpenditure inthefirstyearandshallnotexceed50X
ofaverageannualexpenditure overthethreeyearperiod;
-Operationsrelatingtocollectionanddissemination ofinformation oninno­
vationunderArticle4(5)a):aidcoveringpartoftheoperatingcostsof
bodiesengagedinsuchactivities,providedthattheseactivitiesarenew
andconcernspecifically thezonescoveredbyArticle2.Theaidshalllast
forthreeyearsandbedegressive.Itshallcover70Xoftheoperating
costs •fnthefirstyearandshallnotexceed55Xoftheaverageannualcost
overthethreeyearperiod;

-Operations implementing innovation underArticle4(5)b):70%ofthe
costsoffeasibility studiesmayconcernallaspects,includingthe
commercial aspects,oftheimplementation ofinnovation,andlimitedto
50,000EUAperstudy.Thesestudiesmustbeundertaken byoronbehalf
ofundertakings situatedinthezonescoveredbyArticle2;
-OperationsrelatingtoriskcapitalunderArticle4(6):contribution
towardstheoperatingcostsoffinancialinstitutions providingrisk
capitalforSMU.Thiscontribution shallbe70%ofthecostsofrisks
.\ •
evaulation studiescarriedoutbyoronbehalfofthefinancialinstitutions .
Thesestudiesmayalsoexaminecommercial aspects.
Thecategoriesofbeneficiaries ofFundassistanceinrespectoftheoperat­
ionsprovidedforinthepreviousparagraph maybe:publicandlocalautho­
rities,otherbodies,undertakings orindividuals .Theaidsreferredtoin
thethirdandfifthindentsofparagraph 1and,wheretheydirectlybenefit
undertakings ,thosereferredtointheseventhindentofparagraph 1may
nothavetheeffectofreducingthesharepaidbyundertakings tolessthan
20%oftotalexpenditure .
' ' •
TheamountoftheFund'sassistanceinfavourofthespecialprogramma may
notexceedtheamountfixedbytheCommissionatthetimewhentheprogramme
isapprovedunderArticle3(5).
Budgetarycommitments relatingtotheimplementation ofthespecialprogramme
shallbedecidedbyannualtrancheinaccordancewithprogressmade.

-9-
Article6
!
1.TheamountoftheFundcontribution InrespectofthemeasuresIncludedIn
thespecialprogrammeshallbepaidtotheMemberStateconcerned (orin
accordancewithfheInstructions thelattercommunicates tothisendtothe
Commission)accordingtothefollowingrules: 1
* « >
a)ExpenditureincurredfromthedateofentryintoforceofthisRegulation
shallbeeligible. « r
• «4t"' 'I
b)Whenthereis^afinancialcontributionbytheMemberState/payments,other
thanadvancepaymentsreferredtoinfcointc>,shallbemadeasfaras
possibleinparallelwiththepayment,oftheMemberState'scontribution .
Inanyother$ase,paymentsshallbe^nadewhentheMemberSt^tecertifies
thatthepaymentisdueandmaybepa.idbytheCommunity.■
«
Eachrequestforpaymentshallbeaccompanied byastatementfromthe
»' r ■»
MemberStatecertifyingtheoperationandtheexistenceofdetailedsup*
portingdocuments,andshallcontainthefollowinginformation :
i
-thenatureoftheoperationscoveredbythepaymentclaim;'
I
r o *-particulars oftheamountandnatureofexpenditurepaidinrespect
κ »ofthedifferentoperationsduringtheperiodcoveredbytheclaim;
*« '
-confirmation thattheoperationsdescribedinthepaymentclaimhave
beenbeguni,naccordancewiththespecialprogramme.,t
• (
c)OnproductionbytheMemberStateconcernedofwrittenevidencethatthe
r
specialprogrammehasalreadyoccasionedexpenditureunderanannual
tranche,theFundmay,attheState'srequest/makeanadvanceof30Xof
theappropriations committed.Whentheamountofthisadvancehasbeen
exhaustedandwhentheMemberStatehasforwardedtotheCommissionthe
certificatereferredtoinsubparagraph b)/furthersuccessiveadvance
paymentsmaybemade/eachof30Xoftheappropriations committedfor
eachannualtranche.
ν
2.Attheendofeachyear/theMemberStateconcernedshallpresenttothe
Commissionareportontheprogressmade*incarryingoutthespecialprogramme
byreferencetotheinformationrequirednntheAnnextothisRegulation.

10
These reports should enable theCommission tosatisfy itself that thespecial
programme isbeing executed ,toobserve itseffects andtoestablish that
\
thedifferent operations arebeing carried outinacoherent manner .They
shall beforwarded totheRegional Policy Committee .
Onthe "basis ofthese reports andtherelevant decisions ,theCommission shall
report under the .conditions laid down inArticle 21oftheFund Regulation .
9
Whure major amondmcnto aremnde toaopoolal prograinmo during implnrnontation ,
lh«proooilur *provM««l forInArtlola 3(l)would npp1y «
. Ψ ,
When each special programme hasbeen implemented ,areport shall bepresented
'bytheCommission totheRegional Policy Committee .
I
! <
3.Theprovisions ofArticle 9,paragraphs 1to5oftheFund Regulation shall
t
apply ,asrequired ,tothespecific measure provided for inArticle 1of
• t
this Regulation .
t
Article 7
This Regulation shall enter into force onthedayfollowing itspublication in
theOfficial Journal oftheEuropean Communities .
Theadoption ofthis Regulation shall notprejudice there-examination ofthe
Fund Regulation provided forinArticle 22ofthat Regulation which istotake
place before 1January 1981 ,onaproposal f?om theCommission .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done otBrussels ,
For the Council

-11-
ANNEX
I
Thespecialprogrammeshallincludethefollowinginformationinrespect
ofthezonescoveredunderArticle2ofthisRegulationt
1#InrenpeotofindustrialandnrtansitesandindustrialbuildingsI
a)-AnftnnlyHiaofthestateofdoreliotionofsitesandthepriorities
forreclamation,andananalysisofthostateofdisusedindustrial
premises.
-Particularsofexistingactionsforresolvingtheproblemof
derelictionandoftheaverageannualpublicexpenditureinvolved#
b)InrelationtotheoperationsenvisagedunderArticle4ofthis
Regulation:adescriptionandexactlocationofprogrammesfsr
reclamationofderelictsitesandconversionofindustrialpremises}
and,whererelevant,detailsofessentialminorroadlinks*
2*Inrespeotofhousingforworko^st
ft)–Ananalysisofthoexistinghousingsupply,oovnringageand
standardsofhouses,andofthepresentandprospective domand
forhousesforworkersinthelightofthelikelydevelopmentof
newactivities.Thisanalysisshouldshowthatthehousingsituation
constrictstheexecutionoftheprogrammeinqueotionandinpar­
ticulartheachievementoftheproductiveinvestments whichthe
programmeisintendedtopromote.
-Astatementofexistingpubliomeasuresinthisfield,withan
Vindicationoftheresultantaverageannualpublioexpenditure
involved.
b)InrelationtotheoperationsenvisagedunderArtiole4ofthis
Regulation iadescriptionandlooationofhousingdevelopmentpro­
grammes,withanindicationofthetypesofhousingtobeprovided
andofthenumberofpeopletobehousedeachyear.

-12-
3.InrespectofSMU:
a)-AdescriptionofthepresentsituationofSMtJs1nthedifferentsectors
aridAOevaluationoftheirpossibilities forfuturedevelopment.
Analysisoftheirsituationandneeds,particularly asconcernsmanage­
mentandorganisation .
-DetailsofexistingaidsystemsforSW,andthetypeofservices
existing,withastatementofaverageannualpublioexpenditurein­
volved "bycategoryofaidsandservices.
b)InrelationtotheoperationsenvisagedunderArticle4ofthisRegulation :
adescriptionofthedifferenttypesofmanagementandorganisation services
tobeprovidedtoSMU.Particularsofthebodiesresponsibleforthe
provisionofsuchservicesandforactivatingthedevelopmentofSMEs.
4.InrespectofInnovation ï
a)Ananalysisoftheneedsofundertakings andtheexistingmeansattheir
disposaltogainaccesstoinformation oninnovationanditsimplementation /
togetherwithastatementofrelevantpublicexpenditure.
b)InrelationtotheoperationsenvisagedunderArticle4ofthisRegulation :
adescriptionofthemeasuresplannedforthecollectionanddissemination
ofinnovationinformation -andalsoforthedevelopmentofinnovationin
•SMU.
5.Inrespectofriskcapital:
a)-Detailsoforganisations providingriskcapitalforSMJandthe
conditionsapplicabletotheprovisionofsuchcapital.
-Particularsofexistingschemesfortheencouragement offinancial
institutions toprovideriskcapitalforSMUs,andastatementof
presentpublicexpenditure undereachsuchscheme.
b)InrelationtotheoperationsenvisagedunderArticle4ofthisRegulation :
detailsofmeasuresplannedtofacilitatetheaccessofSMUtoriskcapital,

Inreopeot ofthetotality ofthespecial programme s
a)Adescription ,asfaraspossible with figures ,oftheobjectives covered
"bythespecial programme ,particularly regarding employment .
b)Adescription ofexisting andproapeotive publio measures proposed to
becarried outsidebysidewith thespecial programme inorder toim­
prove theemployment situation inthozonoo oovored byArtiolo 2of
this Regulation and ,inpartioular ,measures related tot
–aids forproductive investment
–investment ininfrastructure >
–measures related toworker andprofessional training andretraining
and,asappropriate ,those which areparticularly aimed atthe»nv-
ployment ofyoung people ,andforthebenefit offormer workers in
the shipbuilding industry .
Thisdescription mustbeaocompanied byastatement giving^rtioulars
ofthenational authorities' intentions asregards theuseof/resources
emane ,ting from Community structural funds . t;
OAnindication oftheamounts ofpublio expenditure inconnection with
themeasures envisaged insubparagraph b)above .
d)Thetimetable forcarrying itout.
e)Estimation ofthevolume ofpublio expenditure connected with thepro­
gramme 'simplementation ,including anannual breakdown ofsuch expendi­
ture foreach oftheoperations envisaged .
f)Designation of-thebodies responsible forexecution oftheprogramme ,
andofdifferent operations .
>
I
fl)Information measures planned tomake potential beneficiaries andprofes­
sional organisations aware ofthepossibilities offered bytheprogramme ,
andoftherole played bytheCommunity inthis respect .

Proposalfora
COUNCILREGULATION
instituting aspecificCommunityRegionalDevelopment Measure,
contributing toovercomingconstraints onthedevelopmentof
neweconomicactivitiesincertainzonesadverselyaffectedby
restructuring ofthesteelindustry
THECOUNCILOFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)N°724/75of18March1975(1)
establishing aEuropeanRegionalDevelopment FundasamendedbyCouncil
Regulation (EEC)N°214/79of6February1979(2)andparticularly its
Article13(3)/
HavingregardtotheproposalfromtheCommission, '
HavingregardtotheopinionoftheEuropeanParliament (3),
HavingregardtotheopinionoftheEconomicandSocialCommittee(4),
WhereasArticle13ofRegulation N°724/75(hereinafter referredtoas
'theFundRegulation' )provides,independently ofthenationalallocations
ofresourcesfixedbyArticle2(3)a)oftheFundRegulation,forparti­
cipationoftheFundinfinancingspecificCommunityregionaldevelopment
measureswhichareparticularly linkedwithCommunitypoliciesandwith
measuresadoptedbytheCommunityinordertotakebetteraccountoftheir
regionaldimensionortoreducetheirregionalconsequences ;
WhereastheMemberStatesconcernedhaveprovidedtheCommissionwith
information onregionalproblemslikelytobethesubjectofaspecific
Communitymeasure;
<1)OJN°L73/1of21.3.75
(2)ÔJN°L35/1of9.2.79
<3)OJN°C85of8.4.80
(4)OJN°C83of2.4.80

2
WhereastheFund'sresourcesareallocatedhavingdueregardtothe
relativeseverityofregionalimbalanceswithintheCommunity.;
WhereastheCommissionhasinthecontextofECSCTreatyArticle46
prescribedgeneralpolicyobjectivesinrespectofthesteelindustry;
WhereastheCouncildecidedon18and19December1978thatmasteryof
thesocial,regional,economicandfinancialconsequences ofrationalising
theironandsteelindustryrequireswithintheCommunityframeworka
specialappropriateconcertedactionbothbyCommunityandMemberStates
includingthecreationofalternative employmentinthesteel-producing
areasaffectedbyrestructuring measures;
WhereasacertainnumberofzonesintheCommunity,whicharehighly
dependentonsteelandwhichhavealreadysufferedconsiderable job
lossesasaresultofthedeclineinthesteelindustry,riskan
aggravation oftheseadverseconsequences ;
WhereascertainofthesezonesinBelgium,ItalyandtheUnited
Kingdomareinregionswhichalreadyhavehighlevelsofunemployment;
WhereasitisnecessaryfortheCommunitytoreinforcebymeansofa
specificCommunityregionaldevelopment measureexistinglocal,national
i
andCommunityfinancialmeasuresaimedatstimulatingthecreationof
newemploymentinsuchzonesinordertoreplacejoblossesandalsoto
contributetoreducingregionalimbalances; ,
Whereasotherinterventions byCommunityfunds,capableofbeingusefully
combined,shouldbemadeinthesezones;
Whereastheexistenceofanunfavourable physicalandsocialenvironment
duetothedereliction ofcertainindustrial andurbansitesand
inadequatehousingconditionsforworkersactasimpediments onthe
attractionofnewemployment-providing activitiestosuchzones;

Whereasencouragement ofthedevelopment ofsmallandmedium-sized under­
takingswhichalreadyoccupyanimportantplaceintheeconomiesofthese
zones,requiresthattheybehelpedtohaveaccesstonecessaryservices
inmanagement,organisation andfinancing;
/
Whereastheintroduction ofnewtechnological productsandprocessescan
contributetothecreationanddevelopment ofviableeconomicactivities
inthesezones,andthatsmallandmeidumundertakings (hereinafter referred
toas"SMU")encounterdifficulties inundertaking innovation;
WhereastheCommunity measuremustbeimplemented intheformofspecial
multiannual programmes;whereasitisfortheCommissioninadoptingthese
programmestoensurethattheoperations plannedthereunder complywiththe
provisionsofthisRegulation;
WhereastheCommission mustverifythatthespecialprogrammes areproperly
carriedoutbyexaminingtheannualreportswhichtheMemberStatesconcerned
1
willpresenttoitforthispurpose;
Whereasthespecialprogrammes mustrespondtocertainoftheobjectives
encompassed bytheRegionalDevelopment ProgrammeprovidedforunderArticle6
(3)oftheFundRegulation;
WhereastheCouncil,theEuropeanParliament andtheEconomicandSocial
Committeemustbeinformedregularlyontheimplementation ofthisRegulation;

4
HAS ADOPTED THIS REGULATION :
Article 1
Aspecific Community regional development measure (hereinafter referred
toas"thespecific measure "), inthesense ofArticle 13ofthe Fund
Regulation ,ishereby established ,contributing toovercoming constraints
onthedevelopment ofneweconomic activities incertain zones adversely
affected byrestructuring ofthe steel industry .
Article 2
Thespecific measure shall beapplicable tothefollowing zones :
Belgium :Provinces ofLuxembourg ,Liege andHainaut with theexception
ofthe 1arrondissements 1ofAth and Tournai .
Italy :Province ofNapoli .
ν
United Kingdom :Strathclyde region ,thecounties ofCleveland ,Ciwyd ,
South Glamorgan ,West Glamorgan ,Gwent ,andtheemployment
office area ofCorby .

-5-
Article 3
1.Thespecific measure shall "beimplemented intheform ofaspecial programme
(hereinafter referred toas'thespecial programme' )to "bepresented tothe
Commission byeach Member State concerned .
Theaims ofthespecial programme shall betocontribute tothedevelopment
ofemployment-providing activities inthezones referred toinArticle 2.
Itshall ,tothis end,bedirected attheimprovement oftheir physical and
social environment ,this being necessary inorder toencourage thesetting
upofsuch activities ,andatthedevelopment ofSMUandtheencouragement
ofinnovation .
2.Thespecial programme must fall within theframework oftheregional develop­
ment programmes mentioned inArticle 6(3)and (4)oftheFund Regulation . ,
3.Thespecial programme must contain appropriate information ,asspecified
intheAnnex tothis Regulation ,analysing thesituation andneeds related
totheaims stated inparagraph 1,theoperations proposed ,theimplementation
plan ,and,ingeneral ,allfactors which allow appreciation ofitscoherence
with regional development objectives .
4.Theduration ofthespecial programme shall be5years starting from thesix­
tieth dayafter thedate onwhich this Regulation enters into force /
5.Thespecial programme shall beapproved bytheCommission after intervention
bytheFund Committee inaccordance with theprocedure laid down inArticle 16
oftheRegulation establishing anERDF .
6.TheCommission shall inform theEuropean Parliament oftheamounts adopted
forthezones when thespecial programme isapproved .
7.Once ithasbeen approved bytheCommission ,thespecial programme shall be
published forinformation intheOfficial Journal oftheEuropean Communities .

Article 4
ThePond mayparticipate ,within theframework ofthespecial programme ,
inthefollowing operations :
1.Improvement ofrun-down areas whose character iseither industrial ,or
industrial -and-urban tothe extent that these twoaspects cannot "bedis­
sociated ,including :thecleaning-up andpreparation ofsuch areas j
conversion ofdisused industrial "buildings andtheir surroundings ,in­
cluding themodernization ofpremises forSMU,thecreation ofgreen areas
andminor works forimproving theappearance ofLocalities ,andexceptio­
nally ,minor roads giving access tothelocations ofthenewactivities .
2.Construction andmodernization ofhousing toaccommodate workers inorder
toattract employment-providing activities such ashousing being rea^-
sonably near theprojected sites ofthenewactivities ,provided that
thehousing situation constricts theexecution oftheprogramme in
question .
\ • .
3.Establishment orpromotion ofconsultancy firms orother bodies for
management ororganization matters bymeans ofdirect orindirect aid .
Activities ofsuch firms orbodies mayinclude temporary assistance to
undertakings forimplementing their recommendations .
4.Establishment ordevelopment ofcommon services foranumber of
under takings .
5.Promotion ofinnovation inindustry andservices :
a)Collection ofinformation relating toproduct andtechnological
innovation anditsdissemination among undertakings operating in
thezones covered bythespecific measure ,which mayinclude experi­
mental work onsuch innovation . '
b)Encouragement oftheimplementation ofproduct andtechnological
innovation inSMU .
6.Better access forSMUtorisk capital .

4 -7-
Article 5
1.Thespecialprogrammeshallbethesubjectofjointfinancingbetweenthe
MemberStateandtheCommunity.Thecontributions fromtheFundshallbe
providedwithintheframeworkoftheappropriations enteredforthispurpose
inthegeneralbudgetoftheEuropeanCommunities .TheCommunitycontribution
shallbe:
-Operationsrelatingtoimprovement andconversionunderArticle4(1):
50%ofpublicexpenditure;
-Operationsrelatingtoconstruction andmodernisation ofhousingunder
Article4(2):50%ofpublicexpenditure subjecttoalimitof10,000EUA
perunitofaccommodation ;
-Operationsrelatingtoconsultancy servicesunderArticle4(3):aid
coveringpartoftheexpenditure ofundertakings relatingtoservices
providedbyconsultancy firmsorbodies.Theaidshalllastforthree >
yearsandshallbedegressive.Itshallcover70%ofexpenditure inthe
firstyearandshallnotexceed55%ofaverageannualexpenditure overthe
threeyearperiod(indirectaid);*
-inrespectofsuchoperations,theMemberStatemayreplacethissystemby
anequivalent systemofaidtoconsultancy firmsorbodies(directaid);
-OperationsrelatingtocommonservicesunderArticle4(4):aidcovering
partoftheexpenditure ofundertakings relatingtotheoperationofthese
services.Theaidshalllastforthreeyearsandshallbedegressive .It
shallcover70%ofexpenditure inthefirstyearandshallnotexceed50%
ofaverageannualexpenditure overthethreeyearperiod;
-Operationsrelatingtocollection anddissemination ofinformation oninno­
vationunderArticle4(5)a):aidcoveringpartoftheoperatingcostsof
bodiesengagedinsuchactivities,providedthattheseactivities arenew
andconcernspecifically thezonescoveredbyArticle2.Theaidshalllast
forthreeyearsandbedegressive.Itshallcover70%oftheoperating
costsinthefirstyearandshallnotexceed55%oftheaverageannualcost
overthethreeyearperiod;
m

-8-
-Operations implementing innovation underArticle4(5)b):70%ofthe
costsoffeasibility studiesmayconcernallaspects,includingthe
commercial aspects,oftheimplementation ofinnovation,andlimitedto
50,000EUAperstudy.Thesestudiesmustbeundertaken byoronbehalf
ofundertakings situatedinthezonescoveredbyArticle2;
-OperationsrelatingtoriskcapitalunderArticle4(6):contribution
towardstheoperatingcostsoffinancialinstitutions providingrisk
capitalforSMU.Thiscontribution shallbe70%'ofthecostsofrisk
evaulation studiescarriedoutbyoronbehalfofthefinancialinstitutions .-
Thesestudiesmayalsoexaminecommercial aspects.
2.Thecategoriesofbeneficiaries ofFundassistanceinrespectoftheoperat­
ionsprovidedforinthepreviousparagraph maybe:publicandlocalautho­
rities,otherbodies,undertakings orindividuals .Theaidsreferredtoin
thethirdandfifthindentsofparagraph 1and,wheretheydirectlybenefit
undertakings ,thosereferredtointheseventhindentofparagraph 1may
nothavetheeffectofreducingthesharepaidbyundertakings tolessthan
20%oftotalexpenditure .
3.TheamountoftheFund'sassistance infavourofthespecialprogramma may
notexceedtheamountfixedbytheCommission atthetimewhentheprogramme
isapprovedunderArticle3(5).
4.,Budgetarycommitments relatingtotheimplementation ofthespecialprogramme
shallbedecidedbyannualtrancheinaccordance withprogressmade.

9
Article6
1.TheamountoftheFundcontribution inrespectofthemeasuresIncludedin- . *
thespecialprogrammeshallbepaidtotheMemberStateconcerned(orin
accordancewith{heinstructionsthelat,tercommunicatestothisendtothe
Commission)accordingtothefollowingrules:
*
a)ExpenditureincurredfromthedateofentryintoforceofthisRegulation
shallbeeligjble. <
b)Whenthereis.afinancialcontribution bytheMemberState,payments,other
thanadvancepaymentsreferredtoinfcointc>,shallbemade'asfaras
possibleinparallelwiththepayment,oftheMemberState'scontribution .
Inanyotherfase,paymentsshallbejnadewhentheMemberStatecertifies
thatthepaymentisdueandmaybepaidbytheCommunity.
ΐ ·
Eachrequestforpaymentshallbeaccompanied byastatementfroathe
MemberStatecertifyingtheoperationandtheexistenceofdetailedsup­
portingdocuments,andshallcontainthefollowinginformation :
-thenatureoftheoperationscoveredbythepaymentclaim;1
ï _-particulars oftheamountandnatureofexpenditure paidinrespect
1 \ofthedifferentoperationsduringtheperiodcoveredbytheclaim;
•confirmation thattheoperationsdescribedinthepaymentclaimhave
beenbeguninaccordancewiththespecialprogramme.
I
e)OnproductionbytheMemberStateconcernedofwrittenevidencethatthe
specialprogrammehasalreadyoccasionedexpenditureunderanannual
tranche,theFundmay,attheState'srequoot,makeanadvanceof30Xof
theappropriations committed.Whentheamountofthisadvancehasbeen
exhaustedandwhentheMemberStatehasforwardedtotheCommissionthe
certificatereferredtoinsubparagraph b),furthersuccessiveadvance
paymentsmaybemade,eachof30%oftheappropriations committedfor
eachannualtranche.
»
' ■ \
2.Attheendofeachyear,theMemberStateconcernedshallpresenttothe
Commissionareportontheprogressmadeincarryingoutthespecialprogramme
byreferencetotheinformationrequiredintheAnnextothisRegulation.

10-
These reports should enable theCommission tosatisfy Itself that thespecial
programme Isbeing executed ,toobserve Itseffects andtoestablish that
thedifferent operations arebeing csrriod out inacoherent manner .They
shall beforwarded totheRegional Policy Committee .
Onthe "basis ofthese reports andtherelevant decisions ,theCommission shall
report under theconditions laid down inArtiole 21oftheFund Reflation .
Where major amendments aremade toaspecial programme during implementation ,
theprocedure provided forinArticle 3(5)would apply .
When each special programme hasbeen implemented ,areport shall bepresented
bytheCommission totheRegional Policy Committee .
>
3.Theprovisions ofArticle 9,paragraphs 1to5oftheFund Regulation shall
i' .
apply ,asrequired ,tothespecific measure provided forinArticle 1of
this Regulation .
Article 7
This Regulation shall enter into force onthedayfollowing itspublication in
theOfficial Journal oftheEuropean Communities . \
Theadoption ofthis Regulation shall notprejudice there-examination ofthe
Fund Regulation provided for inArticle 22ofthat Regulation which istotake
place before 1January 1981 ,onaproposal from theCommission .
This Regulation shall bebinding initsentirety anddirectly applicable 1n
all Member States .
Done atBrussels ,
Forthe Council

ANNEX
Thespecial programme shall include "thefollowing information inrespect
of thezones covered under Article 2ofthis Regulation :
1.Inrespect ofindustrial andurban sites andindustrial buildings :
a)-Ananalysis ofthestate ofdereliction ofsites andthepriorities
forreclamation ,andananalysis ofthestate ofdisused industrial
premises . *
-Particulars ofexisting actions forresolving theproblem of
dereliction andoftheaverage annual public expenditure involved .
b)Inrelation totheoperations envisaged under Article 4ofthis
Regulation sadescription and exact location ofprogrammes for
reclamation ofderelict sites andconversion ofindustrial premises ;
and ,where relevant ,details ofessential minor road links .
2.Inrespect ofhousing forworkers :
a)–Ananalysis oftheexisting housing supply ,covering ageand
standards ofhouses ,andofthepresent andprospective demand
forhouses forworkers inthelight ofthelikely development of
newactivities .This analysis should show that thehousing situation
constricts theexecution oftheprogramme inquestion andinpar­
ticular theachievement oftheproductive investments which the
programme isintended topromote .
–Astatement ofexisting public measures inthis field ,with an
indication oftheresultant average annual public expenditure
involved .
b)Inrelation totheoperations envisaged under Article 4ofthis
Regulation sadescription andlocation ofhousing development pro­
grammes ,with anindication ofthetypes ofhousing tobeprovided
andofthenumber ofpeople tobehoused each year .

Inrespect ofSMtf
a)-Adescription ofthepresent situation ofSMQs inthedifferent sectors
andanevaluation oftheir possibilities forfuture development .
Analysis oftheir situation andneeds ,particularly as .concerns manage­
ment andorganisation .
-Details ofexisting aidsystems for SPU,andthetype ofservices
existing ,with astatement ofaverage annual public expenditure in­
volved bycategory ofaids andservices .
b)Inrelation totheoperations envisaged under Article 4ofthis Regulation :
adescription ofthedifferent types ofmanagement andorganisation services
tobeprovided toSMU .Particulars ofthebodies responsible forthe
provision ofsuch services andforactivating thedevelopment ofSMEs .
Inrespect ofinnovation :
a)Ananalysis oftheneeds ofundertakings and -theexisting means attheir
disposal togain access toinformation oninnovation and itsimplementation ,
together with astatement ofrelevant public expenditure .
b)Inrelation totheoperations envisaged under •Article 4ofthis Regulation :
adescription ofthemeasures planned forthecollection anddissemination
ofinnovation information ,andalso forthedevelopment ofinnovation in
-SMU.
Inrespect ofrisk capital :
a)-Details oforganisations providing risk capital for SMJandthe
conditions applicable totheprovision ofsuch capital .
-Particulars ofexisting schemes fortheencouragement offinancial
institutions toprovide risk capital forSMUs ,and astatement of
present public expenditure under each such scheme .
b)Inrelation totheoperations envisaged under Article 4ofthis Regulation :
details ofmeasures planned tofacilitate theaccess ofSMUtorisk capital .

-13-
6.Inrespectofthetotalityofthespecialprogramme:
a)Adescription,asfaraspossiblewithfigures,oftheobjectivescovered
bythespecialprogramme,particularlyregardingemployment.
I
b)Adescriptionofexistingandprospectivepublicmeasuresproposedto
"becarriedoutside"bysidewiththespecialprogrammeinordertoim­
provetheemploymentsituationinthezonescovered "byArticle2of
thisRegulationand,inparticular,measuresrelatedto:
-aidsforproductiveinvestment
-investment ininfrastructure
-measuresrelatedtoworkerandprofessional trainingandretraining
and,asappropriate ,thosewhichareparticularly aimedattheem­
ploymentofyoungpeople,andforthe"benefitofformerworkersin
thesteelindustries .
Thisdescription must"beaccompanied byastatementgivingparticularsother
ofthenationalauthorities *intentionsasregardstheuseof/resources
emanatingfromCommunitystructuralfunds.
Anindicationoftheamountsofpublicexpenditureinconnectionwith
themeasuresenvisagedinsubparagraph b)above.
J
d)Thetimetableforcarryingitout.
e)Estimationofthevolumeofpublicexpenditureconnectedwiththepro­
gramme'simplementation ,includinganannualbreakdownofsuchexpendi­
tureforeachoftheoperationsenvisaged.
f)Designationofthebodiesresponsibleforexecutionoftheprogramme,
andofdifferentoperations.
g)Informationmeasuresplannedtomakepotentialbeneficiaries andprofes­
sionalorganisations awareofthepossibilitiesofferedbytheprogramme,
andoftheroleplayedbytheCommunityinthisrespect.

Proposal for a
COOTSrCIL REOULATIOIT
instituting aspecific Community Regional Development
Measure contributing toimproving security ofenergy
supply incertain Community regions "bywayofimproved
useofnewtechniques forhydro-electrioal power and
alternative energy sources
THE COUNCIL OPffiEEUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Community ,
Having regard toCouncil Regulation (EEC)Ho724/75of18March1975 (l)
establishing aEuropean Regional Development Fund asamended byCouncil
Regulation (EEC)No214/79of6February1979(2)andparticularly its
Article13(3),.
Having regard totheproposal from theCommission ,
Having regard ,totheopinion oftheEuropean Parliament (3),
Having regard totheopinion oftheEconomic andSocial Committee
Whereas Article13ofRegulation Bo724/75(hereinafter referred toas
"theFund Regulation ")provided ,independently ofthenational allocations
ofresources fixed byArticle 2(3)a)oftheFund Regulation ,forparti­
cipation oftheFund infinancing specific Community regional development
measures which areparticularly linked with Community policies andwith
measures adopted bytheCommunity inorder totake better account of
their regional dimension ortoreduce their regional consequences )
Whereas theMember State concerned hasprovided theCommission with infor­
mation onregional problems likely tobethesubject ofaspecific measure )
of21.3.75
of9.2.79
of8.4.80
of2.4.80(1)OJUoL73
(2)OJNoL35
(3)0JNoC85
(4)OJNo C83

-2-
Whereas the Fund 'sresources areallocated having dueregard tothe
relative severity ofregional imbalances within theCommunity ;
Whereas theCouncil initsResolution of17September 1974 onanew
Community energy policy (4)expressed itsresolve toimprove thesecurity
ofenergy supply ;
Whereas theEuropean Council ,meeting atStrasbourg on21and22July 1979 ,
expressed itsresolve tocontinue andintensify efforts tolimit the
consumption ofpetroleum ,and,viaeconomies inenergy ,thedevelopment
ofindigenous resources andtheprogressive useofalternative energy sources ,
tolimit ,during theperiod 1980-1985 ,Community imports toanannual
level equal toorbelow that of1978 ;
Whereas limitation ofpetroleum imports islikely toaffect particularly
those Community Member States whohave asubstantial energy deficit and
aheavy dependence onpetroleum imports ;
Whereas Italy isone ofthese Member States andthat furthermore the
installed electrical power reserves areparticularly weak there ,andthat
therefore therisks ofpower cutsduring peak consumption periods arevery
great ;
Whereas thedevelopment oftheMezzogiorno ,andparticularly ofits
mountain areas requires theinstallation ofnewactivities
with consequent increased electricity consumption ,andthat power losses due
tolong-distance transmission ofelectricity produced intheNorth arehigh ,
andthat therefore there isneed toencourage !theinstallation ofnew local
production capacity ;
Whereas itisnecessary fortheCommunity tosupplement national measures
toimprove natural supplies ofenergy inthese areas bywayofaspecific
Community regional development measure ;
Whereas measures have already been taken inthefield ofthecommon agricultural
policy ,andother assistance from Community Funds ,capable ofbeing usefully
combined ,must becarried out inthese regions .;
(4)OJÏo C153of9.7.1975

-3
Whereas adoption bypublic authorities ofimproved technology (mini-turbines )
allowing exploitation ofthehitherto under-utilised natural hydro-electric
resources ofthese regions ,andtheutilisation ofalternative energy sources
islikely tocontribute torealising these aims ,whilst improving the
relatively weak electricity distribution network ;
Whereas private users with moderate requirements could have aninterest in
exploiting local sources ofhydro-electric andalternative energy themselves ,
inview oftheir ownconsumption needs ,andthat forthis purpose anactive
information campaign must beundertaken ,andthat such users ought tobe
encouraged tosetupthenecessary installations ;
, ' ■ V
Whereas themaintenance ofthese mini-turbines mayprovide anumber of
additional jobs forthe local population ;
Whereas theCommunity measure must beimplemented intheform ofaspecial
multi-annual programme ;whereas itisfortheCommission ,inadopting this
programme toensure that theoperations planned thereunder comply with the
provisions ofthis regulations
• , '• t
Whereas theCommission must also verify that thespecial programme is
properly carried out byexamining theannual reports which theMember State
concerned will present toitforthis purpose ;
Whereas thespecial programme must respond tocertain oftheobjectives
encompassed bytheRegional Development Programme provided forunder
Article 6(3 )ofthefund regulation ;
Whereas ,theCouncil ,theEuropean Parliament andtheEconomic andSocial
Committee must beinformed regularly ontheimplementation ofthis regulation .

-4-
HASADOPTEDTHISREGULATION :
Article 1
AspecialCommunityregionaldevelopment measure(hereinafter referredto
as"thespecificmeasure")inthesenseofArticle13ofthefundregulation
isherebyestablished contributing toimprovingsecurityofenergysupplyin
certainCommunityregionsbywayofimproveduseofnewtechnologies for
hydro-electrical powerandofalternative energysources.
Article 2
Thespecificmeasureshallapplytothemountainareasoftheregionsofthe
Mezzogiorno withinthemeaningofArticle3(3)ofCouncilDirective (EEC)
75/268of28April1975(1)andasdefinedbyCouncilDirective (EEC)75/273
of28April1975(1).
(1)OJNoL128,19.5.1975

-5-
Article 3
1. Thespecific measure shall beimplemented intheform ofaspecial pro­
gramme (hereinafter referred toas"thespecial programme ")tobe
presented tothe Commission byItaly .
Theaimof the special programme shall betohelp improve thedevelop­
ment conditions oftheareas referred toinArticle 2bystrengthening
the security oftheir energy supplies .Tothis end itshall have asits
objective abetter useofhydro-electric resources bymaking possible ,
bytheadoption ofnewtechniques ,the re-utilization ofabandoned or
obsolete works located onwater courses with alowstreamflow ,and a
better usealso ofalternative energy sources .Itshall also beaimed
atencouraging private users themselves toexploit hydro-electric and
alternative energy sources ,bycarrying out aninformation campaign and
byaiding feasibility studies .Finally itshall beaimed atproviding
additional jobs linked totheupkeep ofthese installations .
2. The special programme must fall within theframework oftheregional
development programmes mentioned inArticle 6(3 )and (4)ofthe fund
regulation ..
3.Thespecial programme must contain appropriate information ,asspecified
intheAnnex tothis Regulation ,analysing thesituation andneeds related
totheaims stated inparagraph 1,theoperations proposed ,theimplementation
plan ,and,ingeneral ,allfactors which allow appreciation ofitscoherence
with regional development objactiveo .
4*Theduration ofthespecial programme shall be5years starting from thesix­
tieth dayafter thedate onwhich this Regulation enters into force ,
5*Thespecial programme shall beapproved "bytheCommission after intervention
bytheFund Committee inaccordance with theprocedure laid down inArtiole 16
oftheFund Regulation .
(4)

lheCommission shall inform theEuropean Parliament oftheamounts adopted
forthezones when thespeoial programme isapproved *
Onoe ithasbeen approved bytheCommission ,thespeoial programme shall he
published forinformation intheOffioial Journal oftheEuropean Comminities .

-7-
v Article 4
Thefund mayparticipate ,within theframework ofthespecial programme ,in
thefollowing operations :
1. Installing mini-turbines (standardized electrical generators using low-
'head falls )including preparation ofexisting sites andtherelated hydro­
electric installations ,andalso wind-powered generators andequipment
utilizing solar energy orenabling recovery ofenergy contained in
biomass ,particularly refuse ,insofar assuch installations have been
technically perfected anddonotqualify under Council Regulation (EEC )
No1302 /78of12June 1978 (1)orCouncil Regulation (EEC )No727/79of
9April 1979 (2). '
2. Dissemination ofinformation ,including demonstrations ,ontheprospects ,
offered bymini-turbines andalternative sources ofenergy .Feasibility
studies forpotential private users wishing toproceed themselves with
installations related tosuch energy sources . -
3. 1Organisation ofbasic technical instruction toensure additional local
jobs linked tothemaintenance ofmini-turbines .
(1)0JNoL158 of16.6.1978
(2)0JNoL93of12.4.1979

Article 5
The special programme shall bethesubject ofjoint financing between'
theMember State andtheCommunity .Thecontributions from thefund
shall beprovided within theframework oftheappropriation entered
for this purpose inthegeneral budget oftheEuropean Communities .
The Community participation shall be:
-operations fortheinstallation ofmini-turbines ,orother equipment ,
and studies foradapting materials tolocal conditions ,under
Article 4(1):50% ofexpenditure ,incases where investments are
made bypublic authorities ;inother cases ,30% oftheinvestment cost
this aidbeing supplementary -totheexisting aidsystem .
-operations fordissemination ofinformation anddemonstrations under
Article 4(2 ):70% oftheoperating costs ofbodies charged with this
task .
-operations forfeasibility studies under Article 4(2):70% ofthe
costs ofthese studies .
-operations fortechnical instruction under Article 4(3):70% of
public expenditure .
The categories ofbeneficiaries offund assistance inrespect of
operations provided for intheprevious paragraph may be:public and
local authorities ,otherbodies,undertakings orindividuals .Where the
aids referred tointhethird indent ofparagraph 1directly benefit
undertakings ,they may nothave theeffect ofreducing theshare paid by -
such undertakings toless than 20% oftotal expenditure .
Theamount oftheFund 'sassistance infavour ofthespecial
programme may not .exceed the amount fixed bytheCommission atthe
time when this programme isapproved under Article 3(5).
Budgetary commitments relative totheimplementation ofthe special
programme shall bedecided byannual tranche inaccordance with
progress made .

-9-
Article 6
1.Theamount oftheFund contribution inrespect ofthemeasures Included In
thespecial programme shall bepaid totheMember State concerned (orin
s
accordance with Jtheinstructions thelatter communicates tothis endtothe
Commission )according tothefollowing rules :
a)Expenditure incurred from thedate ofentry into force ofthis Regulation
shall beeligible .
b)When there is,■financial contribution bytheMember State /payments /other
than advance payments referred toInpoint c),shall bemade asfaras
possible 1nparallel with thepayment oftheMember State 'scontribution .
Inanyother pase /payments shall be .made when theMember State certifies
that thepayment isdueandmaybepaid bytheCommunity .
Each request forpayment shall beaccompanied byastatement from the
Member State certifying theoperation andtheexistence ofdetailed sup­
porting documents /andshall contain thefollowing information :
-thenature oftheoperations covered bythepayment claim ;
-particulars oftheamount andnature ofexpenditure paid 1nrespect
ofthedifferent operations during theperiod covered bytheclaim ;
-confirmation that theoperations described 1nthepayment claim have
been begun 1naccordance with thespecial programme .
c)Onproduction bytheMember State concerned ofwritten evidence that the
special programme hasalready occasioned expenditure under anannual
tranche /theFund may/attheState 'srequest /make anadvance of30Xof
theappropriations committed .When theamount ofthis advance hasbeen
exhausted and when theMember State has forwarded totheCommission the
certificate referred toinsubparagraph b)/further successive advance
payments maybemade /each of30Xoftheappropriations committed for
each annual tranche .
2.Attheendofeach year /theMember Stat# concerned shall present tothe
Commission areport ontheprogress made 1ncarrying outthespecial programme
byreference totheInformation required intheAnnex tothis Regulation .
(5)

-10-
These reports shduld enable theComtrrssion tosatisfy itself that thespecial
programme isbeing executed ,toobserve itseffects andtoestablish that
thedifferent operations arebeing carried out inacoherent manher .They
shall beforwarded totheRegional Policy Committee . '
Onthebasis ofthese reports andtherelevant decisions ,theCommission shall
report under theconditions laid down inArticle 21oftheFund Regulation .
»
Where major amendments aremade toaspeoial programme during implementation ,
theprocedure provided forinArtiole 3(3)would apply *
When each special programme hasbeen implemented ,areport shall bepresented
bytheCommission totheRegional Policy Committee .
t
3.Theprovisions ofArticle 9,paragraphs 1to5oftheFund Regulation shall
apply ,asrequired ,tothespecific measure provided for inArticle 1of
this Regulation .
/
Article 7
This Regulation shall enter Into force ontheday'following itspublication in
theOfficial Journal oftheEuropean Communities .
Theadoption ofthis Regulation shall notprejudice there-examination ofthe
Fund Regulation provided forinArticle 22ofthat Regulation which istotake
place before 1January 1981 ,onaproposal from theCommission .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done atBrussels ,
Forthe Council

-11-
ANNEX
Thespecial programme shall include thefollowing information inrespect
oftheareas covered under Article 2ofthis regulationi
1.a)Ananalysis ofthesituation andneeds with regard tothesupply ofand *
theutilisation ofalternative energy sources ,indicating priorities
forextending and improving theexisting system ;
ν
b)Information ontheeconomic viability oftheinstallation ofmini-turbines ;
c)Adescription ofpublic measures adopted tomeet these needs ,indicating
the average amount ofpublic expenditure involved .
2.- Inrelation totheoperations envisaged under Article 4ofthis regulation :
a)Aprogramme ofinstalling mini-turbines onexisting sites ,their location ^
description oftypes ofsite preparation works ,including linked
hydraulic work ,andestimate ofresulting improvements inelectricity supply
b)Aprogramme ofinstallation ofwind-powered generators orother equipment .
> '
c)Detailed rules governing the information campaign ,thenumber of
demonstration centres planned ,thenumber andtype ofpublications
and feasibility studies envisaged ;
d)Thetype oftechnical instruction planned ,andtheprospects foradditional
jobs .
3. Inrespect ofthetotality ofthespecial programme :
a)Adescription ,asfaraspossible with figures ,oftheobjectives covered
bythespecial programme ,particularly regarding employment .
b)Insofar asthis information has not been identified with sufficient
accuracy intheregional development programme ,descripfion ofthe
existing orfuture public measures which itisintended toimplement
alongside thespecial programme andwhich wi11contribute towards
improving theemployment situation intheareas covered byArticle 2
ofthis.régulât ion .

-12
c)Theplanned intentions ofthenational authorities forusing other resources
deriving from Community structural funds . (
d)Thetimetable forcarrying itout .
e)Estimates ofthe volume ofpublic expenditure connected with the
programme 'simplementation ,including anannual breakdown ofsuch
expenditure foreach oftheoperations envisaged .
*
f)Thedesignation ofbodies responsible forexecution oftheprogramme
and ofdifferent operations . ,
g)Information measures planned tomake thepotential beneficiaries
andtheprofessional organisations aware ofthepossibilities
offered bytheprogramme ,andoftherole played bytheCommunity
inthis respect .
h)Description ofother existing orintended public measures concerning
encouragement ofusers themselves toexploit local energy sources ,
including relevant legislation .

Proposal for a
COUNCIL REGULATION
instituting aSpecial Community Regional Development
Measure contributing totheimprovement oftheeconomic
and social situation oftheborder areas ofIreland
and Northern Ireland
THE COUNCIL OPTHEEUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)No724/75OF18March1975 (l)
establishing aEuropean Regional Development Fund asamended byCouncil
Regulation (EEC)NO214/79OF6February1979(2)andparticularly
Article13(3),
Having regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament (3)»
Having regard totheopinion oftheEconomic andSocial Committee (4)
Whereas Article13ofRegulation No724/75(hereinafter referred toas
"theFund Regulation ")provides ,independently ofthenational allo­
cations ofresources fixed byArticle2(3)a)oftheFund Regulation ,
forparticipation oftheFund infinancing specific Community regional
development measures which areparticularly linked with Community poli­
cies andwith Pleasures adopted "bytheCommunity inorder totake betler
account oftheir regional dimension ortoredn.ce their regional consequences
Whereas theMember States concerned have provided theCommission with
information onproblems inborder areas likely tobethesubject ofa
specific Community measure }
(21)OJNoL73 of21.3.75
2)OJNoL35 of9.2.79
3)OJNoC85 of8.4.80
(4)OJNo C83 of2.4.80

-2-
Whereas theFund 'sresources areallocated having dueregard tothe
relative severity ofregional imbalances intheCommunity ;
Whereas theCouncil hasstated itswillingness toexamine /under
Article 13/onaproposal from theCommission /anyrequests for
aidrelating toborder problems in .themost deserving
regions oftheCommunity submitted jointly bytwoormore Member
States concerned ;
J
ι
Whereas the border areas inIreland and Northern Ireland are situated m
regions which areamong themost underdeveloped 'intheCommunity /involv­
ingasthey doahigh dependence onless productive agriculture ,high levels
ofunemployment and lowincomes per head and assuch awidening ofthe
base foreconomic development ofthese areas isnecessary inorder toreduce
thehandicaps suffered bytheregions ;
Whereas communications difficulties andother problems related to
border areas have hindered thefuller development ofeconomic and
social policies inborder areas ofIreland andNorthern Ireland ;
Whereas thedifficult situation ofthese border areas justifies a
specific Community regional development measure ;
Whereas theEconomic andSocial Committee /initsopinion of12July 1978 (4)
onthecross-border communications study fortheLondonderry /Donegal
area carried out atthe request ofthegovernments oftheUnited Kingdom and
ofIreland ,andalso oftheCommission /recommended that thecross-border
area bemade the subject ofaspecific Community regional development
measure ; -
•r
Whereas measures have already been taken inthefield ofcommon agri­
cultural policy /.andother assistance from Community funds ,capable
ofbeing usefully combined /must becarried out inthese areas ;
(4)O.J. N°C/114of7.5.1979

Whereastheconsiderable touristpotentialexistingintheborderareas
ofIrelandandNorthernIrelandofferssignificant prospectsofgeneration
ofnon-agricultural economicdevelopment ;
Whereasdevelopment ofartisanenterprises canmakeasignificant
contribution towardsstrengthening theeconomicfabricintheseareas;
Whereasdevelopment oftourismintheborderareasofIrelandandNorthern
Irelandisseriouslyhandicapped byshortageofaccommodation ,andof
recreational andculturalfacilitiesfortourists,including meansof
communication withtouristcentres;
Whereasthedevelopment ofartisanenterprises ishandicapped bylackof
finance,information andadvice;
Whereas,becauseoftheirremoteness fromtheeconomiccentresoftheCommunity,
smallandmediumsizedundertakings (hereinafter referredtoas"SMU")inthese
areashavedifficulty inobtaininginformation onmarketsandadviceonmanage­
mentandorganisation matters;
WhereastheCommunitymeasuremustbeimplemented intheformofspecial
multi-annual programmes;whereasitisfortheCommissioninadoptingthese
programmestoensurethattheoperationsplannedthereundercomplywiththe
provisionsofthisregulation;
WhereastheCommission mustalsoverifythatthespecialprogrammes are
properlycarriedoutbyexaminingtheannualreportswhichtheMemberStates
-willpresenttoitforthispurposes;
Whereasthespecialprogrammes mustrespondtocertainoftheobjectives
encompassed bytheregionaldevelopment programmes providedforunder
ι
Article6(3)oftheRindregulation;
WhereastheCouncil,theEuropeanParliament andtheEconomicandSocial
Committeemustbeinformedregularly ontheimplementation ofthisregulation;

- L -
HAS ADOPTED THIS REGULATION :
Article 1
Aspecific Community regional development measure inthe sense ofArticle 13
ofthe fund regulation (hereinafter referred toas"the specific measure ")is
hereby established contributing tothe improvement ofthe economic and social
situation ofthe border areas ofIreland and Northern Ireland .
Article 2
The specific measure shall beapplicable tothe following border areas :
Ireland :The counties directly adjoining theborder :that isDonegal ,
Leitrim ,Cavan ,Monaghan and Louth .
Northern Ireland :The council districts directly adjoining theborder :
that isLondonderry ,Strabane ,Omagh ,Fermanagh ,Dungannon ,Armagh ,Newry
and Mourne .

-5-
Article 3
\
1. The specific measure shall beimplemented intheform ofaspecial
programme (hereinafter referred toas"thespecial programme'5 .tobe
presented tothe Commission byeach oftheMember States concerned .
The aim ofthe special programme shall betocontribute tothe
economic activities oftourism ,communi cations ,craft industries and
small andmedium sized undertakings inthe areas referred toin
Article 2,with aview toimproving theemployment situation .
2. The special programme must fall within theframework ofthe regional
development programmes mentioned inArticle 6(3 )and (4)ofthe fund
regulation . -
3.Thespecial programme must contain appropriate information ,asspecified
intheAnnex tothis Regulation ,analysing thesituation andneeds related
totheaims stated inparagraph 1,theoperations proposed ,theimplementation
plan ,and ,ingeneral ,allfactors which allow appreciation ofitscoherence
with regional dovelopmont objoctivorj .
4. The duration ofthe special programme shall befive years starting
from thesixtieth day after thedate onwhich this regulation
enters into force .
5. The special programme shall beapproved bytheCommission after
intervention bytheFund Committee inaccordance with theprocedure
laid down inArticle 16oftheFund Regulation .
6. The Commission shall inform theEuropean Parliament oftheamounts
adopted for the areas when the special programme isapproved .
7. Once ithasbeen approved bytheCommission ,thespecial programme
shall bepublished forinformation intheOfficial Journal ofthe
European Communities .

-6-
Article 4
The Fund mayparticipate ,within theframework ofthe special programme ,
inthe following operations : ,
1. Construction andconversion oftourist accommodatipn including self-
catering and farm holiday accommodation andprovision ofcaravan and
camping sites ; /
2. Establishment ordevelopment ofbodies responsible for thepromotion
oftourism ,publicity andthecoordinated servicing.of tourist
accommodation andfacilities ,including theorganisation ofinformation
seminars forthose providing rural accomodation ;
3. Provision ofamenities and infrastructures directly linked tothe
development oftourism and tocultural and recreational facilities
including angling and riding ;works aimed atimproving scope forwater
sports ,particularly through thedevelopment ofinland waterways ,
forexample intheRiver Erne basin ;
4. Improvement ofcommunications giving access totourist areas ,including
construction ormodernisation ofminor roads andtelephone exchanges ;
/
5. Development oftransport activities aimed atproviding easier
access fortourists totheareas covered bythespecific measure ;
6. Establishment anddevelopment ,bymeans offinancial aids ,of
artisan enterprises and offacilities including theprovision of
information and advice .
7.a)Preparation ofsectoral analyses intended toprovide small andmedium
sized undertakings with information onthepotential ofnational ,Community
and external markets andontheeffects to "beanticipated therefrom on
the production andorganisation ofthese undertakings .

-7-
b)Establishment .orpromotion ofconsultancy firms orother bodies
formanagement andorganisation matters bymeans ofdirect or
indirect aid .Activities ofsuch firms orbodies mayinclude -
temporary assistance toundertakings forimplementing their
reconrmendat ions . ' - . ■
c)Establishment orpromotion ofcommon services foranumber of
undertakings .
Artide 5
1.Thespecial programme shall bethesubject ofjoint financing between
theMember State and the Community .Thecontributions from the-Fund shall
beprovided within the framework ofthe .appropriations entered forthis
purpose inthegeneral budget ofthe European Communities .TheCommunity
participation shall be :
-operation fortourist accomodation under Article 4(1 ):where the investment
islinked toagricultural activity ,50%ofpublic expenditure resulting
from thegranting aid totheinvestment ;inother cases ,50%ofpublic ex­
penditure resulting from thegranting ofaid tothe investment ,but nomore
than 30%ofthe cost ofthe investment ;/ '
-operations forthepromotion oftourism under Article 4(2):aid
covering part oftheoperating costs ofthebodies .This aidshall last
forthree years andbedegressive .Itshall cover 70%oftheoperating
costs inthefirst year andshall notexceed 55%oftheaverage annual
costs over thethree year period ;
-operations foramenities andinfrastructure under Article 4(3):50$of .
public expenditure ; . ,
-operations forimproving communications under Article 4(4):50%ofpublic
expenditure ;
-operations fordeveloping transport activity under Article 4(5):50%of
public expenditure onsubvention ^towards thenetcost ofproviding
transport services ;

-8-
-operationsforcraftindustriesunderArticle4(6):50%ofpublic
expenditureresultingfromthegrantingofaidtotheinvestment,but
notmorethan30%ofthecostoftheinvestment;and70%ofpublic
expenditureresultingfromaidtoinformation andadvisingservices;
-operationsrelatingtosectoralanalysesunderArticle .4(7)a):
70%ofthetotalexpenditure ;
-operationsrelatingtoconsultancy servicesunderArticle4(7)b):
-Operationsrelatingtoconsultancy servicesunderArticle4(3):aid
coveringpartoftheexpenditure ofundertakings relatingtoservices
providedbyconsultancy firmsorbodies.Theaidshalllastforthree
yearsandshallbedegressive.Itshallcover70Xofexpenditure inthe
firstyearandshallnotexceed55Xofaverageannualexpenditure overthe
threeyearperiod(indirectaid);
-inrespectofsuchoperations,theMemberStatemayreplacethissystemby
anequivalent systemofaidtoconsultancy firmsorbodies(directaid);
-OperationsrelatingtocommonservicesunderArticle4(7)c):aidcovering
partoftheexpenditure ofundertakings relatingtotheoperationofthese
services.Theaidshalllastforthreeyearsandshallbedegressive.It
shallcover70Xofexpenditure inthefirstyearandshallnotexceed50%
ofaverageannualexpenditure overthethreeyearperiod;
Thecategories ofbeneficiaries ofFundassistance inrespectof
operations providedforinthepreviousparagraph maybe:public
andlocalauthorities ,otherbodies,undertakings orindividuals .
Theaidsreferredtointheeighthandtenthindentsofparagraph 1
maynothavetheeffectofreducingthesharepaidbyundertakings
tolessthan20%oftotalexpenditure .< '
TheamountoftheFund'sassistanceinfavourofthespecial
programme maynotexceedtheamountfixedbytheCommissionatthe
timewhenthisprogrammeisapprovedunderArticle3(5).
«
Budgetary commitments relatingtotheimplementation ofthespecial
programmeshallbedecidedbyannualtrancheinaccordance with
progress made. - ,

-9-
Article6
1.TheAmountoftheFundcontribution 1nrespectofthemeasuresIncludedIn
thespecialprogrammeshallbepaidtotheMemberStateconcerned (or1n.
accordancewiththeInstructions thelettercommunicates tothisendtothe
Commission)accordingtothefollowingrrules:
I'5 »
a)Expenditure incurredfromthedateofentryIntoforceofthisRegulation
shallbeeligible.
b)Whenthereisafinancialcontribution bytheMemberState,payments,other
thanadvance'paymentsreferredto1npointc>,shallbemadeasfaras
possibleinparallelwiththepaymentoftheMemberState'scontribution .
Inanyothercase,paymentsshallbe.madewhentheMemberStatecertifies
thatthepayment1sdueandmaybepaidbytheCommunity.
Eachrequestforpaymentshallbeaccompanied byastatementfromthe
ι
Member'Statecertifying theoperation andtheexistenceofdetailedsup­
portingdocuments,andshallcontainthefollowinginformation :
-thenatureoftheoperations coveredbythepaymentclaim;?'
-particulars oftheamountandnatureofexpenditure paidinrespect
ofthedifferentoperationsduringtheperiodcoveredbytheclaim;
-confirmation thattheoperationsdescribedinthepaymentclaimhave
beenbegun1naccordancewiththespecialprogramme.
c)Onproduction bytheMemberStateconcernedofwrittenevidencethatthe
specialprogrammehasalreadyoccasionedexpenditure underanannual
tranche,theFundmay,attheState'srequest,makeanadvanceof30Xof
theappropriations committed.Whentheamountofthisadvancehasbeen
ί
exhausted andwhentheMemberStatehasforwardedtotheCommission the
certificate referredtoinsubparagraph b),furthersuccessive advance
paymentsmaybemade,eachof30%oftheappropriations committedfor
eachannualtranche.
2.Attheendofeachyear,theMemberStateconcernedshallpresenttothe
Commission areportontheprogressmadeincarryingoutthespecialprogramme
byreferencetotheInformation required1ntheAnnextothisRegulation.

10-
These reports shduld enable theCommission tosatisfy Itself that thespecial
programme 1sbeing executed ,toobserve Itseffects andtoestablish that
thedifferent operations arebeing carried out 1nacoherent manner .They
shall beforwarded totheRegional Policy Committee .
Onthebasis ofthese reports andtherelevant decisions ftheCommission shall
report under theconditions laid down inArticle 21ofthePond Regulation .
Where major amendments aremade toaspeoial programme during implementation !
theprocedure provided forinArtiole 3(5)would apply .
When each special programme hasbeen Implemented ,•report shall bepresented
bytheCommission totheRegional Policy Committee .
I
3.Theprovisions ofArticle 9,paragraphs 1to5oftheFund Regulation shall
apply ,asrequired ,tothespecific measure provided for1nArticle 1of
this Regulation . '
Article 7
This Regulation shall enter Into force onthedayfollowing Itspublication 1n
theOfficial Journal oftheEuropean Communities . i
Theadoption ofthis Regulation shall notprejudice there-examination ofthe
Fund Regulation provided forinArticle 22ofthat Regulation which istotake
place before 1January 1981 ,onaproposal ffom theCommission .
' .
This Regulation shall bebinding 1nItsentirety anddirectly applicable 1n
all Member States ;
Done atBrussels ,
For the Council

-11-
ANNEX
Thespecial programme shall include thefollowing information on
theareas covered under Article 2ofthis regulation :
1.a)Ananalysis ofthe present situation oftourism and artisan activities
andanestimate ofpotential tourist demand during theperiod covered
"bytheprogrammes ;ananalysis ofthesituation andofthe 1
requirements ofSMU,inparticular asregards market information and
management andorganisation consultancy services ;
b)particulars ofaidschemes andother measures designed topromote
tourism andartisan activity andtodevelop SMUwith anestimate of
average annual public expenditure incurred under such systems .
2. Inrelation totheoperations envisaged inArticle 4ofthis regulation :
a)-aglobal estimate ofthe capacity andtype ofadditional accommodation \
proposed tobeinstalled orconverted ; -
-thenature andactivities ofthebodies responsible for theestablishment •
andpromotion oftourism andartisan enterprises ;.
- astatement setting out thetypes oftourist andcommunication
infrastructures tobeprovided ,andtheir location ; " '
thename ,address anddetails oftransport enterprises which could
participate intheimplementation ofthespecial programme ,with
indications ofpublic service obligationis . .'
b)-adescription ofpublic aids related tothedifferent measures planned .
3. Inrespect ofthetotality ofthespecial programme :
a)adescription ,asfaraspossible with figures ,oftheobjectives
covered bythespecial programme ,particularly regarding employment ;
b)insofar asthis information hasnotbeen identified with sufficient
accuracy intheregional development programme ,adescription ofthe
existing orfuture public measures which itisintended toimplement
alongs idethespecial programme andwhich will contribute towards
improving theemployment situation intheareas covered byArticle 2
ofthis regulation .

-12-
c)plannedintentionsofthenationalauthoritiesforusingother.resources
derivingfromCommunitystructuralfunds;
d)thetimetableforcarryingitout;
e)estimationofthevolumeofpublicexpenditure connectedwiththe
programme'simplementation ,includinganannualbreakdownofsuch
expenditure foreachoftheoperationsenvisaged;
designation ofthebodiesresponsibleforexecutionoftheprogramme
andofdifferentoperations;
^informationmeasuresplannedtomakethepotentialbeneficiaries and
theprofessional organisations awareofthepossibilities offeredby
thespecialprogramme,andoftheroleplayedbytheCommunityinthis
respect;