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COM (81)717
V ol.1981/0207

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)717final.
Brussels,25November 1981
A VA
I. -V |
yRECONVERSION SCHEME
.-<-r\»n»\/x.-v/■\••\X;c•iw\^
(ReportfromtheCommission toECSCConsultative Committee )
C0M(81)717final.

REPORT TOECSCCONSULTATIVE COMMITTEE
. ' ^'
I.INTRODUCTION
1.1The'ECSC reconversion schemeisdesigned toassistandpromotethe
;establishment ofnewenterprises ortheexpansion ofexisting
enterprises whichwillincrease employment opportunities incoaland
steelareaswhichhavesuffered' fromplantclosures orasubstantial
run.downinmanning;levels.Theprogramme operates through a
loanschemeoffering development finance .atcostpricewithsignificant
interest rebatesaccording tothejobcreation potential forex-ECSC
workers.Theloanschemehasbeenoperating sincetheearlysixties.
1.2ThelegalbasisoftheloanschemeissetoutinArticle 56.2a)ofthe
ECSCTreatywhichstatesthat
"Iffundamental changes,notdirectly connected withtheestablishment .
ofthecommon ,market,inmarketconditions forthecoalorthesteel
industry shouldcompelsomeundertakings permanently todiscontinue ,
curtailorchangetheiractivities ,theHighAuthority ,onapplication
bytheGovernments concerned : .»
mayfacilitate ,inthemannerlaiddowninArticle 54,eitherinthe
vindustries withinitsjurisdiction or,withtheassentoftheCouncil,
.'inanyother .industry,thefinancing ofsuchprogrammes asitmay
,approveforthecreationofnewandeconomically soundactivities or
fortheconversion ofexisting undertakings capableofreabsorbing
.-theredundantworkersintoproductive employment". '
1.3Acomprehensive reportonthereconversion schemewassubmitted
totheConsultative Committee inDecember 1978(No.SEC78/4351.
Atthattimecertainrefinements totheschemewereintroduced with .
theobjectofimprovingitseffectiveness inthefaceofarapidly =
deteriorating situation insteelindustry employment .These
innovations weresetoutintheOfficial Journal No.C82/8of
29March,1979andcomplement therevisions madeinJuly1977
(Official Journal No.C178/2of27July1977).
Provisional address :RuedelaLoi200.8-1049Brussels-Téléphoné 7350040/7358040–Télégraphie address:"COMEUR Brussels"–
Telex:"21877COMEU B"

-2-
I.4 This report up–dates theinformation presented ,inDecember 1978and inthe
process makes anassessment ofthe initiatives taken atthat time .In
order tobroaden theperspective ofthereview ,certain keyissues are
reviewed inthecontext ofthepast sixyears ;notably employment trends
andlending operations .
II.RECaiT TRENDS II'IECSC MPLOYIWT
2.1Coal
Employment levels innational coal industries have declined gradually over
the past sixyears .However the rate ofdecline has abated inthe last
three years andthesituation isnowrelatively stable with amodest
recovery evident inGermany .
î
TABLE 1
Average annual employment intheEuropean coal industry (x1000)
1?75 1216 12Π . 1978 1979 1980 Change
Belgium 28.2 26.0 23.9 23.2 22.5 21.4 -6.8
Germany 202.3 196.4 192.0 183.8 182.3 186.8 -15.5
Prance 83.0 78.3 72.6 67.5 64.8 59.O -24.O
United Kingdom 245-2 241.0 238.7 231.7 232.6 228.0 -27.2
Total 558.7 541.7 527.2 5O6.2 502.2 495-2 -53.5
Source :Quarterly survey ofECSC industries .
Note :Although some coal mining does continue inIreland and Italy ,the
numbers employed are less than 500 ineach oase .All coal mining
inHolland hadeffectively ceased by1975 *
Theoverall position ineach coal producing country disguises ,tosome
extent ,some severe local reductions andclosures ,notably inSouth
Wales (UK)andNord-Pas-de-Calais (Prance ).Difficult employment problems
have arisen andcontinue topersist inthese andother coal mining areas
butthese aremercifully fewcompared with thesteel areas andtheir
treatment represents arelatively small proportion ofthereconversion scheme .
2.2 Steel
Incontrast tothesituation incoal mining ,theposition insteel industry
areas shows arapid and substantial deterioration inrecent years .

TABLE 2
Average annual employment intheEuropean steel industry (x1,000 )
1975 1976 1977 1978 1979 1980 Change
F.R. Germany 227 /220 214 205 204 200.4 26.6
France 157 155 149 136 125 116.5 .40.5
Italy 96 97 97 96 98 102.6 (6.6 )
Netherlands 23 23 22 22 21 21 2
Belgium 61 •58 54 49 49 47.9 13.1
Luxembourg 23 22 - 20 ' 17 17 16.4 6.6
United Kingdom 191 , 183 182 .170 162 137,8 53.2
Ireland 0.8 0.7 0.7 0-7. 0.7 0.7 0.1
Denmark 2.7 2.7\
2.5 2.6 2.7 2.6 0.1
781.5 .761.4 741.2 698.3 679.4 645.9 135.6 "
(Source : .Quarterly survey ofECSC industries )
2.3 Theemployment trends revealed intheforegoing tables amply justify /the
need forthereconversion scheme .However the regional evolution ofthe
problem hasbeen ,inmainy cases ,more acute than annual changes atthe
national .level imply .Animpression oftheextent oflocalised problems
insteel areas canbegained from theregional ,statistics setout in
Annex I.Unfortunately comprehensive regional statistics onaconsistent
base aredifficult toprocure andsome years areanalysed more fully than
others .Itshould also benoted that the figures inTable 2donot'
completely tally with'the regional annex since the regional annex gives
year end survey figures andTable 2gives annual averages .
2.4 Since theobjective ofArticle 562a)istoconcentrate assistance on
projects providing newemployment ,opportunities suitable fordisplaced
coal and steel workers itisnecessary todefine the eligibility criteria
ofthe loan scheme insome detail andthese criteria arepublished in
the Official Journal ofthe European Communities .The most recent
relevant edition isreproduced atAnnex II.The practical effect of
assessing projects against official criteria ,ECSC employment trends
and local general economic circumstances gives rise tovarious types
ofreconversion situation which donotalways conform toregional
development stereotypes .Someexamples ofreconversion situations are
discussed briefly inthesucceeding paragraphs .
2.5Themost acute situation arises when arelatively small locality has
anoverdependence onanECSC industry and iscomparitively remote 1
from other centres ofindustrial activity .Inthese circumstances the
closure orsubstantial decline ofthe local ECSC industry results in
anexcessive concentration ofmale unemployment with aconsequent under­
mining ofthe local economy .This kind ofsituation also hasprofound
long-term implications not least forthechildren ofthedisplaced „

-_4_- -
workers .Problem areas ofthis kind areafforded ahigh priority in
the reconversion scheme' Fortunately only afewareas inthe
Community aresubject tosuch anaggravated combination ofcircumstances .
2.6 Amuch more typical -reconversion situation arises inareas where ECSC
industries arelocated alongside other heavy industries which are
themselves indecline .Although these areas areapparently reasonably
well diversified ,theeffects ofgeneral long-term decline andcurrent
recession greatly diminishes thefuture employment prospects fordis­
placed ECSC workers .Inthis kind ofsituation national and local
authorities will usually have anestablished redevelopment
programme inplace .TheECSC reconversion scheme provides an
important reinforcement oftheexisting effort inproportion tothe
extent towhich ECSC redundancies have aggravated thegeneral problem .
This isthemost common context forreconversion operations .
2.7' Even inar'eas where asignificant degree ofmodernisation hastaken
place orwhere -awell diversified industrial structure exists ,"the
reconversion programme may still have animportant role .1The avail­
able alternative employment opportunities insuch areas are very often
unsuitable fortheaptitude andskiTls 0?former ECSC workers .1
Retraining isanappropriate andoften adequate response but some­
times the scale ofreduction inECSC employment requires aninjection
ofadditional job-creating activity .This situation isparticularly
.appropriate' forthedevelopment ofsmall businesses bythedisplaced
ECSC workers themselves .Inthese circumstances therelative strength
andstability ofthe local economy provides more hopeful market prospects
-forartisan andcraft operations than islikely toarise inthecircumstances
.outlined 4nthe twoprevious paragraphs . >
2,8 .Thefourth situation tobeconsidered has asmuch todowith thetiming
ofECSC labour force reductions asitdoes with local economics and •
geography .Some areas arenowconfronted with asecond (orthird )
major reduction inECSC employment .Inthese areas recently redundant
workers mayfind that they have competition forscarce jobopportunities
from ECSC workers displaced byearlier redundancies andclosures ,this isdue
tothe fact that the earlier labour force 'reductions occurred during
periods ofcompar itively lowunemployment andworkers were absorbed into
other industries fairly easily .Thestructural decline incertain
industries andthecurrent general recession hasresulted inmany more
ex-ECSC yorkers seeking jobs than might beexpected from recent .closures
and redundancies .

5τ
2.9 The foregoing observations are not anattempt todefine the reconversion
problem completely andstill less to.establish categories ofpriority .
They merely attempt toillustrate the range and complexity ofthe issues
which the scheme attempts totackle .Onefurther general observation
should bemade about thereliability ofpresenting the problem ina !
1statistical context .Great caution hastobeexercised inassessing the
net growth ordecline ofECSC industries inparticular countries .Stable
oreven increased national employment totals candisguise significant
employment reductions inparticular areas ofthe country concerned because
\ ·
these job losses have been discounted bynew ECSC investment inother
areas .Steel industry employment 'inItaly isacase inpoint and smaller
fluctuations areincorporated inthefigures forthe coal industry in ~
the U.K. inthese cases thetransfer ofworkers from closure areas to
thesites ofnew investment are only possible toalimited extent andit
remains necessary todeal with the consequences ofclosure within the area
concerned .
- 'f
II.COORDINATION WITH OTHER COMMUNITY INSTRUMENTS
3.1 Asindicated inparagraph 2.6 above ,ECSC employment losses often occur
inareas ofmore general industrial decline .Inthese areas there is
frequently awide range ofnational investment incentives aswell as
certain Community aids ;notably ECSC Article 56readaptation aids,ERDF,
the European Investment Bank and the Social Fund .Itisnecessary toensure
coordination ofthese instruments ;topromote the most attractive investment
package possible on'the one hand andtoprevent imbalance andoutbidding on
the other . -
-' > • " ' • c
3.2 The Community instrument which most closely resembles the ECSC reconversion
loan scheme isthe lending operation ofthe European Investment Bank <
However the subjects towhich this lending isapplied aredifferent in
nature being principally infrastructure &nd energy projects .E.I.B. ,
lending (and New Community Irtstrument lending )has made asignificant
contribution tothe regeneration ofECSC areas andthese operations are
summarised i'n -Annex .III .- '
3.3 ERDF support for ECSC areas operates inrelation toprojects nominated
bynational governments .The investment ofERDF funds isan.important ■>
element intheaggregate ofassistance inECSC areas asmay beseen from
Annex IV.

6
3.AAlso under theERDF ,aspecific Community regional development measure
wastaken contributing toovercoming constraints onthedevelopment of
neweconomic activities inanumber ofzones adversely affected bythe
restructuring ofthe steel industry .Thespecific measure will "be
I . *
applicable tothe following zones :
Belgium :Provinces ofLuxembourg ,Liege andHainaut with theexception
ofthe 'arrondi ssements 'ofAthand Tournai .
Italy :Province ofNaples (specifically inview oflocal endemic
unemployment ).
United Counties ofStrathclyde ,Cleveland ,Clwyd ,South Glamorgan ,
Kingdom :West Glamorgan ,Gwent andtheemployment office area ofCorby .
Theprovisional total amount ofthe ERDF participation isestimated at
A3MEUA .
3.5.TheCommunity hasalso been extremely active inmitigating theadverse social
circumstances which have tobefaced byindividual displaced workers .Direct
action inthis area isthrough thereadaptation scheme under article 56of
the ECSC Treaty .Under this scheme ,181089workers have benefited from
credits totalling 267*75 mi°ECUbetween 1975 1980 *Thenational
distribution ofthis aid issummarised atannex V.
6
TheSocial Fund also makes animportant contribution totheproblem but
theassistance isgenerally given toschemes ,which affect several
categories ofdisplaced workers .Inonly avery small number ofcases
areschemed exclusively applicable toex–ECSC workers .Itisnotpossible ,
therefore ,topresent ameaningful analysis ofSocial Fund aidin
reconversion areas although thetotal effect issignificant andbeneficial .

-Τ-
[V. INDUSTRIAL RECONVERSION LOANS
4.1 Thereconversion Loan scheme hasbeen inoperation forsome years .
However during the past five years orso,principally due tolabour
reductions .inthe steel industry the number and volume ofloans has
greatly increased .Table 3illustrates the level of "activity inthe
participating Member States fortheperiod 1975~"80 .National figures
foremployment losses inthesteel industry andemployment gains from
thereconversion programme arealso included .Therelevant percentages
give abroad indication ofhowresources andproblems were distributed
amongst Member States .
TABLE 3
ECSC reconversion loans approved bytheCommission 1975-80
Invest - ,i Total 1 Jobs í Jobs i
ment s loan lost tobe
MEUA fãíÃ 7Γ7οοο ) created
Germany . 556.75 18.2 117.01 13.1 26.6 19.6 9255 18.9
France IO42.85 34.2 246.31 27.5 40.5 30.0 17418 35.5
Belgium 25.ΟΟ 0.8 12-5 1.4 13.19·7/.666 1.3
Netherlands 20.06 0.6 8.68 t.O 2.0^ 1.5 505 1.0
Luxembourg 31.87 -1.0 14.97 1.7 6.6 4.9 IIOO' 2.2
U.K. 1200.21 39.2 430.39 48.0 53.2 39.1 16950 34.5
Italy 175-14 5-7 61.06 6.8 (6.6).(4.9) 2773 .5-7
Ireland ' 9.5O 0.3 4.45 0.5 0.1 0.1 420 O.9
3061.38 100 895-37 100 135.6 100 49087 100 .
4.2 Since theinterpretation offigures inTable 3issubject toallthequalifications
listed insection 2,ithas tobeassumed that the use ofreconversion
loans will vary according totheprevailing circumstances ineach
affected area .After discounting the distortions caused byemployment
gains inItaly andadisproportionately lowlevel oflending inBelgium ,
there isabroad pattern ofparity between lending ,joblosses and
jobcreation . _ 1 ' - '*
4.3 Adirect comparison between thenumber ofjobs lost during the period
and the number created with the assistance ofreconversion loans indicates
areplacement rate of37% .However this ratio hastobequalified in !
certain respects ;Itmust bepointed out that the job loss figure only

-8-
relates tosteel areas whereas theemployment created relates toallECSC
areas .Amore realistic figure isobtained after adding individual
employment losses inthecoalfields .Even sothereplacement rate is
comfortably inexcess of2>0% .Aswill beseen inlater paragraphs the
basis ofestimating employment creation from sub–loans ishighly
conservative .Furthermore ,thefigures onjobcreation result from the
loan contracts signed .They refer tothe total jobpotential ofthe
investment projects ofwhich theimplementation schedule varies from
case tocase .Taking allthemain approximations andqualifications
itseems reasonable toclaim that approximately onethird ofjobs lost
inthe ECSC areas will have been replaced byprojects benefiting from
reconversion loans although there will bevarying delays before the
projects arefully manned .This isacreditable result intheface of
acute difficulties .
4.4 Table 4presents some ofthe same information asTable 3insuch away
astoillustrate therate ofgrowth oflending business andalso to
distinguish between direct loans made toindividual projects andglobal
loans made tofinancial intermediaries for on-lending .

TABLE 4
ECSCReconversion LoansApproved bytheCommission 1975-80 .DirectandGlobalLoans
Direct Loans Global Loans TotalLoans
No.Amount
MEUAInterest
Rebate
MEUAJobstobe
CreatedNo.Amount
MEUAInterest
Rebate
MEUAJobstobe
CreatedNo.Amount '
MEUAInterest
Rebate
MEUAJobstobe
Created
■
1975 V64.02 3.64 3267•- - te -- 964.02 3.64 3267
1976 1150.00\5.28 4601- -" 1150.00 5.28 4601
1977 8116.05 16.73 9125 1 3.7"0.56 185 9119.75 -17.29 9310
1978 9191.95 16.7 9000 3 8.7 1.30 430 12200.65 18.0 9430
1979 19137.57 16.12 17672 6.62.55 9.38 3358 25200.12 25.5 11030
1980 23137.45 -10.02 5018 11123.38 18.47 6431 34260.83 '28.49 11449
79697.04 68.49 38683 21198.33 29.71 10*04 100895.37 98.20 49087

-10-
4.5»rOver-the-periodthenumberofLoanseachyearhasmorethantrebled
and.the-amountidisbursed eachyearhasincreased morethanfourfold
with"thereally ,significant increases occurring inthelastthree
years*.-This-:situation' reflectsthesubstantial measures adoptedin
1977and1978-toexpandtheactivities andtosimplify ;theprocedures
of~theloarvscheme*.Therapidincrease inthenumberofgloballoans
isfurther -1evidencjeof"aredoubled effortandanappropriate response
tothegrowing importance ofsmallandmediumsizedenterprises within
thereconversion programme .
V-,GLOBAL LOANS ANDSUB-LOANS
TABLE 5
Reconversion Loans,Sub-Loans fromGlobalLoans
No.ofAmountsofInterest Employment Created
Sub-Loans Loans Rebate Total Ex-ECSC
Currency ECU
1979
France· 84-FF36815900 1044032 1056 988
U.K.,. 68; fc<9048500. 3158 '2898
Luxembourg ,!9Ft_ux119300000 354564 310 .134
, ■ -161' 4524 4020
1980
Ft*anee 114 FF545920001687673 1282' 841
UuK. r87 b·119940002595174 2744 1538
Germany 6 DM7900,000 438400 216 216
Luxembourg .; Fl_ux31000000 104991 115 40
211; 4826238 4357 2635
^372 8981 6655
––-»-

- 11 -
5.1 Itshould beemphasised that direct comparisons between the global
loans approved and sub-loans disbursed issubject toatime lag due
tothe inevitable delay infinding suitable borrowers and the time
required tocomplete the formalities .The timing difference cannot
beaveraged out since different areas and different intermediaries
will require varying periods according toprevailing circumstances '
and the intermediaries' own operating methods . '
5.2 Itis,generally true that the global loan scheme isboth cost
effective andoperationally efficient ,
The amount ofloan andinterest rebate required for each new job is
lower than the comparable amounts for direct loans .The operational
efficiency ofthe scheme arises from the fact that the financial assess­
ment isundertaken bythefinancial intermediary thus relieving pressure
onthe Commission 'sstaff ,However itshould beremembered that since direct
loans relate inthe main tovery much larger projects they remain the best
means ofproducing avery large number ofnew employment' opportunities ,
5.3 Itisperhaps equally important tonote that the sub-loan system provides
significant indirect advantages tothe small business which borrows
the funds .The relationship between the small business and anefficient
commercial banking concern ataformative stage inthe growth ofthe
1 ' "  business c^n have beneficial long-term effects .For many ofthese
businesses an ECSC sub-loan will be afirst introduction tothis
aspect ofbusiness finance and anappreciation ofthe procedures and
principles involved will beofcontinuing importance asthe business
develops .Since the Community isanxious tosee the long-term develop­
ment ofnew businesses incoal and steel areas itisimportant tofoster
these commercial relationships with reputable and Competent financial
institutions .Initsturn the Commission has animportant responsibility
toensure that the capacity competence and probity ofits intermediaries
isofthe highest standard . .
5.4 Astriking feature ofglobal loan operations todate isthat the system
isrelatively undeveloped except inFrance and the United Kingdom .
However arrangements now inplace inother countries will become increas­
ingly active inthe near future .

- 12 -
VI. APPLICATION AND ASSESSMENT PROCEDURES
6.1 For each Loan application itisnecessary toensure that three main
aspects ofthe proposition are inorder .Firstly the proposal must
beconsistent with the objectives and conditions described inArticle 562a)
ofthe ECSC Treaty .Itisparticularly important that the creation ofjobs
capable ofbeing filled byredundant coal orsteel workers issecured .The
Commission has therefore toexamine ineach case whether the qualifications
required for the new jobs can bemet byexcoal orsteel employees .In
cases where training measures are required the Commission must besure
that appropriate training facilities exist orare tobeprovided .
6.2 Secondly ,the proposal must bereconciled with certain other Community
policies .Questions may -arise astothe cumulative value ofnational
and Community assistance the project can receive within Community policy
for the coordination ofdevelopment aid .Itisalso necessary toassess
the nature ofthe business inthe context ofthe Communities' sectoral
policies tocontrol over-capacity inparticular product groupings ,
environment impact ,etc .
»6.3 The third mam interdependent consideration isthe financial viability of
the project andits future development potential .The financial assess­
ment isnecessary asamatter ofcommercial prudence and also toensure
that from abusiness standpoint the project has the necessary capacity to
discharge itsobligations inrespect ofthe Treaty .
6.4 These three assessments require differing skills and procedures and are
therefore carried out bydifferent services within the Commission .This
procedure does not extend thetime-scale ofassessments since all
evaluations proceed simultaneously .Inany case the full assessment
procedure only applies todirect and global loans and inthose cases
consultation prior toaformal application being made also serves to
expedite the process .Inpractice direct and global loans should not
require more than three months tocomplete the assessment process and
this isconsistent with the time table for most well planned developments .
6.5 The assessment ofsub-loans takes place within anabbreviated procedure .
The financial aspects are the responsibility ofthe intermediary financial
institution and the policy considerations are assessed bythe Commission
staff within afew days .Wider consultation isonly undertaken ifsome
particular problem isrevealed during the examination ofthe project .
NoCouncil assent isrequired for sub-loans .

-13
VII .MARKETING AND LOCAL LIAISON
7_1 Theeffectiveness ofthereconversion Loan scheme depends inaLarge
measure onthe free fLow ofinformation andopinion between the
Commission and all theparties making use ofthe scheme ataLocaL LeveL .
The Commission 'sstaff ,nationaL authorities ,•industry andtrade union
officiaLs andthefinanciaL intermediaries aLLpLay apart inthis
process .Itisnecessary toensure that aLLthese parties arefuLLy
informed andconsuLted onareguLar basis anditistheCommission 's f
responsibi Litytoensure that these contacts areproperLy coordinated .
/
7.2 Aspart ofthis process the Commission appointed part-time consuLtants
formost ofthepriority areas andthis hasresuLted inanimproved
LocaL awareness ofthe Loan scheme and itspossibi Lities .There hasbeen
,' consequent increase inthenumber ofappLications forassistance in
those areas . . '
VIII .FUTURE PROSPECTS
8.1 ItisnotpossibLe toforecast theshort-term future trend forempLoy­
ment inECSC industries except inthemost general terms .The current
manifest crisis inthesteeL industry istheoverriding concern .The
\
market prospects forthesteel industry andthecontinuing necessity for
restructuring indicate that labour reductions will continue onasignificant
scale forafurther twoyears atleast .Inthecoal industry itmust
beassumed that further jobs wiLL beLost inthecontinuing quest for
improved productivity .ThedecLine inthe steeL industry isitself afactor
inthefuture viability ofcertain coal-fields asistheCommunity 'sgrowing
capacity fornucLear powered electricity generation andthecumulative
effects ofenergy saving programmes .
I
8.2Against this background ofcontinued decLine inECSC empLoyment there
isLittLe prospect .ofearLy recovery inother labour-intensive industry .The
automotive industry hasbeen animportant source ofnewwork forex-
ECSC workers buttheshort-term prospects forthat industry arealmost
asbLeak asinthe steeL industry itself .There have been some recent
signs ofexpansion incertain sectors oftheeLectronics .industry ,
notabLy teLecommuni cations ,however this contribution maybeLimited
duetoanestabLished tendency infavour offemale empLoyment .

-14~
8.3 .Thelevel ofactivity inthesmaller andmedium-sized sector ofbusiness
isencouraging andtherate ofjobreplacement ishigh inrelation tothe
funds employed even iftheimpact issometimes overshadowed bythescale
ofthelocal unemployment problem .This sector must continue toenjoy a
high priority within thereconversion scheme because ofitslong term
contribution tothe economic renewal ofthe affected areas .Itisthe
global loan scheme which plays theprominent role intheencouragement
ofsmaller andmedium-sized business sector and itmust bepointed out
that thecurrent high level ofinterest rates throughout theCommunity
ishaving anadverse effect onthepossibilities oftheglobal loan
scheme .Apart from thestraightforward cost ofmoney inrelation to
expected return ,thehigh average levels discount theincentive value of
theinterest rebate ;37°offa9$rate isvery much more attractive than
thesame reduction onabase rate of15$.Theglobal loan scheme isalso
particularly sensitive tonational credit restriction policies .
8.4 .Allthings considered ,thesuccess ofthereconversion programme will
continue todepend onanactive local programme topromote theattractions
ofECSC areas formobile investment projects andtoencourage aocelerated
investment inestablished local industries .The Commission must ensure
that thereconversion loan scheme operates efficiently andeffectively in
support ofthese local efforts .
IX. CONCLUSIONS
9.1 .Thereconversion programme hasbeen asuccess byanyobjective standards .
During thepast sixyears Loans ofabout 900MEUA have been approved in
support ofinvestments worth 3,000 MioECU which intheir turn will provide
49,000 newposts being approximately onethird ofECSC joblosses during
therelevant period .However intheface ofamanifest crisis inthesteel
industry andtheexpectation oflimited joblosses inthecoal industry
there isnocause for complacency .
9.2 .Inorder tomaintain current efforts thereconversion programme must aimto
provide loan support toprojects generating atleast 15,000 jobs forredundant
coal andsteel workers peryear foreach ofthenext three years .This will
beextremely difficult since themanifest crisis inthesteel industry isnot
anisolated phenomenon .Thegeneral economic crisis throughout theCommunity
will beapowerful restraint andeven ifthere should beanearly re-establish
ment ofeconomic growth itcannot beassumed that labour demand will grow in
traditional proportions .

-15-
9.3 .Growth inthe Labour market will beparticularly affected bythe tendency
ingrowth sectors todevelop increasingly capital intensive processes
wich will inflate the investment cost per job .The increasing evidence
ofexpensive andtechnically sophisticated machinery will impose new and
higher retraining standards ifECSC workers aretoshare inthese growth
areas .
9.4 .The identification ofthe most promising projects must increasingly proceed
from amicro-economic evaluation ofthepossibilities and notdepend on
sectoral considerations alone .When suitable investment prospects are iden­
tified the loan decisions will have tobemade even more quickly since
itmust beassumed that competition formobile investment will increase .
9.5 .Ifmatters proceed inthemanner described above andagainst thegrowing
reconversion requirement itwill benecessary tomake further improvements
andrefinements inthereconversion loan scheme .Inparticular itwill
benecessary toreassess eligibility criteria ,operating procedures and
terms andconditions ofloan agreements .TheCommission iscurrently
giving these considerations very close attention although thedifficulties
involved inreconciling anychanges with theECSC Treaty objectives and
th§"broad sweep ofCommunity economic ,industrial ,competition andsocial
policies should notbeunderestimated .

LIST OF ANNEXES
I. Regional distribution ofsteel industry employment .
II.Official Journal oneligibility criteria for ECSC reconversion loans .
III .European Investment Bank lending inECSC areas .
IV. ERDF investments in ECSC areas .
V . Art .56readaptation aids .

Annexe
EFFECTIFS INSCRITS DANSLASIDERURGIE (CECA)
Ventilation parrégion(NiveauIouII)--Findécembre
Pays 1974 1975 1977 1978 1979 1980
BELGIQUE--
,Anvers ^ 263 257 247 243
Brabant 5.470 4,502 4.133 4,274
Hainaut" 25,878 19.827 19.480'17,571
Liège 22.893 17.733 17.736 15,960
Limbourg 107 693 676 705
Namur 199 ,190 Ü9l0 170
Flandre 6.280 6.039 6.079 6,297
Total 61.090 59.348 49.241 48.541 48,665 45,220
DEUTSCHLAND
*)Norden 31.065 28.248 27.851 M
Schleswig-Holstein 780 625 560
Hambourg 1,057 853 1.025
Niedersachsen - 22,323 19.929 19.653
Bremen 6,905' 6.841 6.613
Berlin Ouest - ■,-
Nordrhein-Westfalen 143.483 131.650 137.832 130,473
Düsseldorf 70,702
Münster/Arnsberg/Detmold- .- - 57,384
Köln - - - 2,387
Hessen 2,679 2.422 2.257 )8.410 -
Rheinland-Pfalz 4,729 4.649 4.716' J
Baden-Württemberg 1,228 918 951-I16.932
Bayern 6,781 5.981 5.642 ;
Saarland 30.846•24.920 23.419 23-568
Total 220.811 221,853 ν198.788 202.668 204,813 197.406
*)Norden :Schlesw.Holstein /Berlin/Niedersachsen /Hamburg/Bremen

-2-
Pays 1974 1975 1977 1978 1979 1980
FRANCE■ ■
Ile deFrance 343 J.1,120 1,019 i 1.003
Bassin Parisien 19,988 18,445 : 17,239 : 15.253
Champagne-Ar denne 3.266 2.661 2,551 : ■1,804 .
Bourgogne 6,966 6.615 6,369 5,574 ,
Basse Normandie 5.416 5.142 4,458 : 4,235
Haute Normandie 145 ■.·■· .131 151-170
Picardie *4.195 3.896 '■ 3,710 ; 3,470 :
Nord -Pas-de-Calais 36,148-- 32,497 30,605 24,037 '
Est 77,588 •67,191 : 60,114 44.342
AIsace 1,015 716 698 ; 593 ä
Lorraine 76,338 -65.788 59,175 ; 43,061
Franche-Comté 235 687 241 -688
Ouest 1,848 ■-·.·2,011 ; 1,991 1,980 :
;Bretagne 69 104 107 . 107
Pays delaLoire 1,779 1,907 > 1,884 ; 1,873
Sud-Ouest 1,390 1,269 1,169 . 1,183
Aquitaine 184 246 fit 186 : 193 ,
Midi-Pyrénées - 1,206 1,023 Ψ 983 990
Centre-Est 11.539- 10,859 10,152 8,666
Auvergne 2,461 2,360 2,376 .2,564
Rhône-Alpes 9,078 8,499 7,776 ; 6,102 '
Méditerranée 8,266 8,757 :8,844 ; 8,452 ::
Provence 7.578 8,006 8,111 7,411
Languedoc-Roussi lIon 688 751 733
-- - ■■*',1,041
Total 157,110 155,775 142,149 : 1^1,133 -120,555 104,916
*)Côte d1Azur /H*Alpes /B#Alpes Maritimes

-3-
Pays 1974 :1975 .1977 1978 1979 1980
ITALIA
Nord Ouest 25,614 27,662 26,237ν
Liguria /Piemonte■- 127,535 (
Val Led'Aosta'''· *"
■- J
Lombardia 24.985 23,631 17,982 18,120
Nord-Est 6,236 6,817 6,144
Emilia /Romagna . 483 462 -429
« y
Trentino /Alto Adige 6,891
.Veneto
. ■ , fFriuli-Venezia /Giulia '; s. J
Centro 14,955 15,299 15,304
Toscana /Umbria /Marche \
Lazio ι■-' - 339 {16,327
Abruzzi-Molise- 25 J
Campania " 8,617 8,737 8,962
Sud 18,747 '20,273 -20,149 '-' 1
Puglia /Basilicata . i .· /30,655
Calabria- '- -•'>
Sicilia- - –
Sardegnate s ;
Tota l 99.637 96,140 102,881 95,571 98,720 , 99,528
LUXEMBOURG
Total . 23,503 21,447 17,437 16,187 : ,16,348 14,904 ,

-4-
Pays . 1974 1975 1977 1978 '',1979 1980
NEDERLAND ν'·
Utrecht 284 267 258 274
.Noord-Hol Land(Ijmuiden ) .■22.702 21,197 19,440 19,185
Zuid-Holland (Alblasserdam ) 1.975 - 1,625 1.597
-1,588
Total 24,961 25,401 23,089 21.295 20,931 21,047
UNITED KINGDOM FINJUIN
North 34.784 35.244 '27,547 27,377
Yorkshire &Humberside 42.423'46,555 42,397 43,230
EastMidlands 5.491 5.561 4,999 1,330
EastAnglia"- -–
South 'East .567'- 1,005 868 1.915
SouthWest-'- -'–
WestMidlands 12.899 12,436 12,978 6,886
NorthWest 4,520 5,025 1,898 2.396
Wales 63.701 59,402 48,945 42,066
Scotland 13,474 14,479 13,047 12,012
Northern Ireland"" •
Total 177,859 183,140 179,707 152,679 ;156,579.137,212
DANMARK
+
Total - 2,181 2.572 2,509 2,692 2,?62 2,181

-5-
Pays 1974 1975 1977 v 1978 1979 1980
IRELAND
Total 996 680 704 . 726 749 531
HELLAS
Total«
TOTAL CEE 768,148 766,356 716,505 671,492 670,122 622,945

ANNEX II
l
NoC54/2 Official Journal oftheEuropean Communities 13.3.81
Reconversion loans granted atreduced rates ,under Article 56oftheECSC Treaty ,for
investments which create alternative employment opportunities inareas affected bya
decline intheactivities ofthecoal and steel industries
The detailed rules forgranting reconversion loans were published inOfficial Journal of
theEuropean Communities No C178 of27July 1977 ,page 2and they were
supplemented oramended inOfficial Journal oftheEuropean Communities NoC82of
29March 1979 ,pages 8/9.
Alistoffinancial institutions towhich global loans hadbeen granted waspublished in
theabovementioned Official Journal of1979 ;this listhasbeen updated inOfficial
Journal oftheEuropean Communities NoC16of22January 1980 ,page 8andNoC276
of24October 1980 ,page 2.Since then several new global loans have been granted .
A.Thecurrent listoffinancial institutions towhich global loans have been granted isas
follows :
BELGIUM
Société régionale d'investissement
deWallonie
33,avenue delaPairelle
B-5800 Namur
Tel .(081)230658
FEDERAL REPUBLIC OFGERMANY
Saarländische Investitionskreditbank
Johannesstraße 2
Postfach 883
D-6600 Saarbrücken
Tel.(06 81)36061
Westfalenbank
Huestraße 21-25
Postfach 102710
D-4630 Bochum 1
Tel .(0234)6161
FRANCE
Sofirem
31-33 ,ruedelaBaume
F-Paris 8e
Tel .225 9500
Banque populaire deLorraine
3,rueFrançois -de-Curel
boîte postale 124
F-57021 Metz
Tel .(87)692412
Banque populaire delaLoire
1,place del'Hôtel -de-ville
F-42007 Saint-Étienne Cedex
Tel .(77)333961Forinformation :
Société deDéveloppement belgo -
luxembourgeoise
61,ruedesUsines
B-6490 Athus
Tel .(063)377304
Industriekreditbank
Karl -Theodor -Straße 6
Postfach 1118
D-4000 Düsseldorf 1
Tel .(0211)82211
Lordex
109,boulevard d'Haussonville
F-54041 Nancy Cedex
Tel .(28)270522
Banque populaire duNord
66,boulevard delaLiberté
F-59000 Lille
Tel .(20)528240
Société dedéveloppement régional
duNord etduPas-de Calais
108,ruedeJemmapes
F-59000 Lille
Tel .(20)556280

13.3.81 Official Journal oftheEuropean Communities No C54/3
Société deDéveloppement régional Crédit National
duSud-Est LeBritannia 45,rueSaint Dominique
20,Boulevard Eugène Deruelle F-75700 Paris
F-69432 Lyon Cedex 3 Tel .5559110
Tel .(78)604120
IRELAND
Industrial Credit Company
32-34 Harcourt Street
IRL-Dublin 2
Tel .(01)720055
ITALY
Banco diNapoli
402 Via Roma
1-80134 Napoli
Tel .(081)405977
GRAND DUCHY OFLUXEMBOURG
Société nationale decrédit etd'investissement'
3,ruedelaCongrégation
L-Luxembourg
Tel .478315
THE NETHERLANDS
DeNationale Investeringsbank
Carnegieplein 4
NL-Den Haag
Tel .(70)469464
UNITED KINGDOM
Finance forIndustry
91Waterloo Road
UK-London SE1 8XP
Tel .(01)928-7822
Scottish Development Agency
120 Bothwell Street
UK-Glasgow G27JP
Scotland
Tel .(041)248-2700Industrial and Commercial Finance
Corporation *
91Waterloo Road
UK-London SE1 8XP
Tel .(01)928-^822
B.The rules forgranting global loans andforapplying forsubsidiary loans under them
arebriefly summarized from theaforementioned publications intheOfficial Journal
oftheEuropean Communities asfollows :
Global loans may begranted toanyfinancial institution capable offinancing ,under
sound economic conditions ,investments which areeligible according toArticle 56(1)
(b)and 2(a)oftheECSC Treaty .
The application foraglobal loan shall follow thesame procedure asthatrequired for
adirect loan .
Small andmedium-sized firms andcraft industries may apply looneoftheabove -
listed financial institutions forareconversion loan uptoaceiling of2million

NoC54/4 Official Journal oftheEuropean Communities 13 .3.81
European units ofaccount (EUA ).The cost oftheinvestment projects ,which isthe
subject ofanapplication forasubsidiary loan may notexceed 10million EUA .The
subsidiary loan may notexceed 50%ofinvestment .The maximum subsidiary loan
eligible forrebate shall be20000EUA perjobcreated .
C.Steel andcoal workers andemployees who have been oraretobemade redundant
andwho wish tobeself-employed canapply totheabove-listed financial institutions
forareconversion loan within thesame limits asexisting small and medium-sized
firms and craft industries .
D.Information
More detailed information onreconversion loans may beobtained from thenational
departments responsible ,from theintermediaries abovementioned ,from thefollowing
departments ofthe Commission ofthe European Communities and from the'
Commission 'slocal consultants .
D.J.Dekker
DG XVI ,Division B3
Rue delaLoi 200
B-1049 Brussels
Tel .735 8040,ext .3420 .M.Cervino
DGXVIII ,Directorate B
Bâtiment Jean Monnet
L-Luxembourg
Tel .4301-3226 .
Consultants
FRANCE
Lorraine
L.Bouchacourt
Apeilor
1,Place duPont -à-Seille
F-57000 Metz
Tel .(87)753618
Nord/Pas -de-Calais
M.Maton
Association pour l'expansion industrielle
delarégion Nord/Pas -de-Calais
16,Résidence Breteine
Parc Saint-Maur
F-59800 Lille
Tel .(20)559882
UNITED KINGDOM
Wales
A.B.Connolly
Iron and Steel Trades Confederation
34/38Stow Hill
UK-Newpon NPT IJE
Tel .(633)212822

Annex III
Investment "bythe European Investment Bankminfrastructure andnon-steel industry inthe steelmaking regions
oftheCommunity "between 1975 a-nd1980
inMio ECU
Country /Region Level II
(minimum 5000
employees in1974 )Count ry/Region .Level III
(minimum 1000
employees in1974 )
Total
infrastructure ·Total
industryTotal
infrast ructureTotal
industry
Saarland - 1.4 Saarland- 1.4
DEUTSCHLAND
s&essssssaaesBssas1.4
ssssssssasssDEUTSCHLAND
:sssas8saasasssasssss81.4
Basse-Normandie
Nord/Pas-de –Calais7.3
120.2'14.4
1·3Nord
Pas-de-Calais117.1
3.0 ■0.9
0.3
Lorraine 99-2 3.5Meurt heetMoselle
Moselle1.5
1.5
Rhône-Alpes 4O5.5 0.4Isere
Savoie195.9
10.7
Provence-CÔte d'Azur 66.4 Bouche -du-Rhône 56.9
Bourgogne /Franche Comté * 35.1
FRANCE 733.7 19.6 FRANCE -
seasMsaassaasaaBBssss3t9383.6
BBass&aBBBSBBaasas4.2

-2-
Count ry/Region Level II
(minimum 5000Country /Region Level III
(minimum 1000
employees in1974 ) employees in1974 )
Total Total Total Total
infrastructure industry infrastructure industry
Piemonte 205.7 4.3Alessandria
Torino94.2
37-6
Liguria 3.3
Bergamo 39.5 7.1
Lombardia 276.7 Brescia
Milano118.8
26.0 1.6
Toscana 5.1 15.3Firenze 3.1
Livorno 10.4
Umbria 16.5 Terni 6.9
Campania 249-3 171.5 Napoli 66.3 26.7
Puglia 602.6 146.1 Taranto 15-3 5.0
Lombardia /Emilia Romagna * 7-9
Lombardia /Toscana 9.2
Lombardia /Piemonte 10.0
Puglia /Sicilia * 35.1
ITALIA
BBaBaascasaaBsaBsaBessaasBasB1385.7 372.9
sssssaesssasssMsesITALIA 49O.3
ssagaaageqaaaesBSs57-7

Country /Region Level II
(minimum 5000Country /Region Level III
(minimum 1000-
. . employees· in1974 ) employees in1974 )
Total Total Total Total
infrastructure industry infrast ructur e industry
' ■ ,- Cleveland 149.9 14.2
North 298.3 52.4 Cumbria
Durham 1,58.6
37.8
Yorkshire &Humberside 125.6 45.6Humberside
South Yorkshire35.6
9O.O34.7 .
East Midlands . 25.41
Clwyd 11.6 9.4
Wales ; 349.I 5-3 'Gwent 19.0 3.0
South Glamorgan
West Glamorgan0.
2.9
Scotland 562.2 119.0 Strathclyde 77.0 67.8
Scotland /North 186.3
Yorkshire /North 37.0■·
Yorkshire /tlorth West* 1.9 -
North West/Scotland * 19.7
North West/North * ,44.6 13.2 ·
North West/Wales * 45.9 - "■ .2.6
-
UNITED KINGDOM 1694.1 240.O UNITED KINGDOM 384.6 178.4
I·–»» y. ι ι·–––■«■wwiinpimpf-pngBnrr'l "ar ¡ajaagjjaajuaaiBgi ΒααΒΜΒΒΟΒΒΒΒ
*

_4-
Country /Regi on Level II, I(minimum 5000 1
employees in1974 )Country /Region Level III
(minimum 1000 ;
employees in1974 )
' Total
infrast ructureTotal
industryTotal
infrast ructureTotal
industry
Hainaut
/-3.8Charleroi
Soignies1.4
1.6
Province deLiège 111.2 7-4 Liège 4.6
Oost-Vl aanderen 5-6 : Gent 2.0
BELGIQUE 111.2 16.8 BELGIQUE
sacssaaaaaaaaaagaaa9.6
S3SaSB8SSBS9
COMMUNITY 3874.7 65O.7 COMMUNITY " 1258.5 25I.7
^ ι, ι II "ι L=Il1 [iji_tu 1m== L_ I „„ „■ ! m–, I Mil =e==ese=====s

AnnexIV
Interventions oftheEuropean Regional Development Fund
inSteelAreasfromtheEstablishment oftheFundin1975
totheThirdAllocation for1980.
C0UNTRY
GermanyLEVELII
(Minimum 5,000
employées in1974)
CHildesheim (58)10,565,596
Niedersachsen cOsnabrück (40)8,000,005
tBraunschweig (39)6,166,639
Bremen
N.R.W.
Bayern
SaarlandBremen (3)391,072
(Düsseldorf (1)2,012,061
tArnsberg (43X4,354,749
OberpfaLz (40)9,142,933
'\
Saarland (134)33,899,423LEVELIII
(Minimum1,000
employées in1974)
France
(48)9,083,511 rjasse~ .(48)9,083,511Normandie
Bourgogne >(8)500,121
SaCaS"de■"«>■57,5.1,535
Lorraine (96)28,702,418
Rhone-Alpes (46)6,346,335
Provence-Alpes
C.d'AzurCalvados
Nievre '
Saone-et-Loire
Nord .
Pas-de-Calais(11)2,094,881
(5)
(3)
(34)
(40)
(2),42,312Meurthe-et-Moselle (9)
Moselle (38)
Isere (3)
Loire (22)
Savoie (3)
Bouche-du-Rhone251,828
248,293
47,770,222
9,811,313
8,342,887
8,724,641
765,155
2,956,352
217,322
Provisions !address :Ruede=laLoi200,B-1049Brussels-Téléphoné 7350040/7358040-Télégraphie address:"COM6UR Brussels"-
Telex:"21877COMEU B"

Italy LEVEL II LEVEL III
Piemonte
Liguria
Lombardia
Toscana (6)3,015,869
Umbria * '
Campania (546 )233,150,566
Puglia (296 )141,470,924
Luxembourg (G^D .) (6)3,336,744
Netherlands Noord Holland
Unitëc^jOnçjdom
North
Yorkshire &(621 )204,430,880
(323 )63,247,317Humberside
East Midlands (53)5,180,892
West Midlands (8) 627,068
Wales (615 )136,231,439
BelgiumScotland (626 )222,843,203
Brabant (Wallon )
Hainaut (27)6,406,767
Liege Prov . (21)9,029,900
Oost-Vlaandere.n (8)1,039,245Allesandr ia
Novara
Torino
Genova
Bergamo
Brescia
Milano
Firenze
Livorno
Terni
Napoli
Taranto
Agglom Haarlem
Cleveland
Cumbria
Durham
Humberside
South Yorkshire(6)3,015,869
(130 )72,585,259
(49)35,948,903
(94)
(90)
(154 )
(95)
(93)41/766,144
34,035,865
33,112,152
15,058,438
25,179,665
Northamptonshire
Staffordshire
West Midlands County
Clwyd (89)
Dyfed ; (54)
Gwent --"––i (133 )
South Glamorgan (46)
West Glamorgan (49)
Strathclyde(89)25,622,151
(54)11,577,040
(133 )29,169,668
(46)15,942,361
(49)9,676,221
(237 )110,875,752
N.B. Conversion rate applied 1December ,1980 .Grants toindividual projects
under global applications have hadtobeapportioned tolevel IIIareas
onanestimated basis .

Annex V:Readaptation aids "todisplaced ECSC workers under Art .56ofECSC Treaty ,1975-80 .
Member State Coal industry
1)
Credits inMioECUWorkers Steel industry and
iron ore mines
Credits inMioECU ..Workers Total
Credits inMioECUWorkers
Germany 35.3 36732 8.5 , 17521 43.8 54253
Belgium - 9.4 17071 8.6 ·.· : 9184 18.0 16255
Prance 19.2 4282 49.1 26129 68.3 30411
Ireland - 0.3 229 0.3 229
Italy-1.3 2528 1.3 2528
Luxembourg- -5.318855.31885
Netherlands - 0.2 331 0.2 331
United Kingdom 40.6 ' 18884 86.9' 56313 127.6 75197
Community Total 104.5 66969 160.2 114120 264.8 181 O89
1)Itshould benoted that the European Unit ofAccount (EUA )which later became the ECU Masintroduced
in1976 ;before that the Unit ofAccount (UA)wasused .Some slight divergencies inthetotal sums
maytherefore arise .