7. 5. 88 Official Journal of the European Communities No C 120/9 
Proposal for a Council Regulation on financial support for Portugal for a specific industrial 
development programme (PEDIP) 
COM(88) 141 final 
(Submitted by the Commission to the Council on 22 April 1988) 
(88/C 120/11) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 128 and 
235 thereof, 
Having regard to Council Decision 63/266/EEC of 
2 April 1963 laying down general principles for 
implementing a common vocational training policy ('), 
and in particular the tenth principle thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas a specific programme for the development of 
Portuguese industry (hereinafter referred to as 'PEDIP') 
has been prepared, in close collaboration between 
Portugal and the Commission, which contains a set of 
measures, including vocational training measures, 
designed to promote such development; 
Whereas the PEDIP should help to achieve the 
Community's objectives concerning economic and social 
cohesion, by identifying four priority areas for the devel­
opment of Portuguese industry; 
Whereas the European Council meeting in Brussels on 
12 and 13 February 1988 endorsed the principle of 
Community assistance for the PEDIP, and whereas the 
Europen Council agreed on the principle of allocating to 
the PEDIP, over and above support from the structural 
Funds and Community loans, additional budgetary 
resources amounting to 500 million ECU for the period 
from 1988 to 1992; 
Whereas provisions should be laid down for the use of 
these additional resources; 
Whereas, in order to simplify management of these 
resources, which should be made the responsibility of the 
Commission, the Commission should be able to apply the 
appropriate measures in respect of the rates of 
Community assistance, the procedures for the 
commitment, payment, and recovery of Community 
assistance, and the monitoring of the measures for which 
assistance has been allocated; Whereas, in respect of the measures included in the 
PEDIP, with the exception of vocational training 
measures, the Treaty contains no specific powers 
required, 
HAD ADOPTED THIS REGULATION: 
Article 1 
Financial assistance from the Community budget for 
implementation of the PEDIP shall be provided, over 
and above support from the structural Funds, by means 
of additional resources established in the annual budget 
procedure. 
These additional resources shall be used in accordance 
with this Regulation. 
Article 2 
The additional resources referred to in Article 1 shall be 
used to implement the PEDIP by contributing to: 
— faster improvement of basic industrial infrastructure 
(priority area number 1), 
— stronger foundations for basic and further vocational 
training facilities for careers in industry (priority area 
number 2), 
— the financing of productive investment (priority area 
number 3), 
— productivity tasks (priority area number 4), 
either separately, or to supplement measures by one or 
more of the structural Funds, in order to support 
measures falling within at least one of these priority 
development areas. 
When allocating resources, priority shall be given to 
projects falling within areas 3 or 4. 
Article 3 
O OJ No 63, 20. 4. 1963, p. 1338/63. On the basis of consultation between Portugal and the 
Commission: 
No C 120/10 Official Journal of the European Communities 7. 5. 88 
1. Portugal shall submit to the Commission applications 
for financial support from the Community for the 
measures referred to in Article 2. These applications 
shall be accompanied by all the information needed to 
check that the measures are in conformity with this 
Regulation, with the objectives of the PEDIP and 
with Community policies, and by the financial 
estimates and indicative timetables for carrying out 
the work and effecting the corresponding payments. 
2. The Commission shall examine the applications in 
order to check that they are in conformity with this 
Regulation and shall decide on the grant of the 
additional resources referred to in Article 1. 
Decisions concerning the grant of this assistance shall 
be published in the Official Journal of the European 
Communities. 
Article 4 
For the management of the additional resources referred 
to in Article 1 and depending on the nature of the 
measure, the Commission may apply the appropriate 
provisions concerning the rate of Community assistance, 
the procedures for the commitment, payment and 
recovery of Community assistance and the auditing of 
the measures receiving this assistance. 
The rate of Community assistance to the selected 
measures under the PEDIP may not exceed 75 °/o of the 
total cost of the measure, whatever the form of the 
financial assistance. 
The Community may cover 100 % of the total cost of 
the preparatory studies, pilot measures and technical 
assistance measures carried out upon the Commission's 
initiative. Article 5 
Measures funded under this Regulation shall be in 
conformity with the Treaties and with the acts adopted 
pursuant thereto and with the objectives of Community 
policies, in particular as regards the competition rules, 
the award of public contracts and the protection of the 
environment. 
Article 6 
The Commission shall be kept constantly informed 
of the implementation of the measures receiving 
Community assistance under the PEDIP. 
Portugal shall take all measures necessary to ensure that 
the Commission receives such information and in order 
to facilitate monitoring by Portugal itself or implemented 
on the basis of Articles 206 a and 289 of the Treaty. 
Monitoring may take the form of on-site inspections or 
verifications. 
Article 7 
The Commission shall send the Council a report on the 
implementation of this Regulation on 1 June 1990 for 
the preceding period and a final report on the PEDIP by 
the end of 1993 at the latest. These reports shall include 
an account of all the development measures 
implemented, detail the expenditure incurred and assess 
their effects. 
Article 8 
This Regulation shall enter into force the day following 
that of its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.