No C 151/4 Official Journal of the European Communities 9. 6. 88 
II 
(Preparatory Acts) 
COMMISSION 
Amended proposal for a Council Regulation (EEC) on the tasks of the structural Funds and 
their effectiveness and on coordination of their activities between themselves and with the 
operations of the European Investment Bank and the other existing financial instruments (') 
COM(88) 144 final 
(Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty on 23 March 1988) 
(88/C 151/05) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 130d 
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 Article 130a of the Treaty provides for the 
Community to develop and pursue its actions leading to 
the strengthening of its economic and social cohesion 
and in particular for it to aim at reducing disparities 
between the various regions and the backwardness of the 
least-favoured regions; 
Whereas Article 130c states that the European Regional 
Development Fund (ERDF) is intended to help redress 
the principal regional imbalances in the Community 
through participating in the development and structural 
(*) OJ No C 245, 12. 9. 1987, p. 3. adjustment of regions whose development is lagging 
behind and in the conversion of declining industrial 
regions; 
Whereas, to that end, Article 130d of the Treaty 
provides for a comprehensive proposal the purpose of 
which will be to make such amendments to the structure 
and operational rules of the European Agricultural 
Guidance and Guarantee Fund, Guidance Section 
(EAGGF Guidance Section), the European Social Fund 
(ESF) and the ERDF as are necessary to clarify and 
rationalize their tasks in order to contribute to the 
achievement of the objectives set out in Articles 130a and 
130c of the Treaty, to increase their efficiency and to 
coordinate their activities between themselves and with 
the operations of the existing financial instruments; 
Whereas Community operations under the structural 
Funds, the European Investment Bank (EIB) and the 
other existing financial instruments must be in support of 
the objectives set out in Articles 130a and 130c; 
Whereas the action taken through the structural Funds, 
the EIB and the other existing financial instruments, the 
coordination of Member States' economic and social 
policies, the coordination of national regional policies 
and of physical planning policies, the coordination of 
9. 6. 88 Official Journal of the European Communities No C 151/5 
national schemes of assistance and other measures taken 
with a view to implementing the common policies and 
the internal market form part of a series of measures 
aimed at strengthening economic and social cohesion; 
whereas the Commission is called upon to make appro­
priate proposals in this regard; 
Whereas it is necessary, in order to achieve the aim set 
by Article 130d, to direct all Community activity in this 
field towards attainment of priority objectives which are 
clearly defined in the light of that aim; 
Whereas the European Council, with a view to strength­
ening the impact of Community structural measures, is 
looking to increase the commitment appropriations for 
all the structural Funds (7 700 million ECU in 1988) by 
1 300 million ECU a year (at 1988 prices) over the 
period 1989 to 92 to 12 900 million ECU (at 1988 
prices) in 1992; 
Whereas it is necessary to specify which Funds are to 
contribute — and to what extent and under what 
conditions they are to do so — to achievement of each 
of the priority objectives and to determine the conditions 
under which the EIB and other existing Community 
financial instruments can make their contributions, 
particularly in conjunction with operations under the 
Funds, 
Whereas the ERDF is the main instrument for achieving 
the objective of ensuring the development and structural 
adjustment of regions whose development is lagging 
behind and whereas it plays a central role in the 
conversion of regions, frontier regions and parts of 
regions (including employment areas and urban 
communities) seriously affected by industrial decline; 
Whereas the ESF, by the support it gives to economic 
and social cohesion, is of decisive importance in the 
promotion of consistent employment policies in the 
Member States and in the Community; 
Whereas the EAGGF Guidance Section is the main 
instrument for financing the adjustment of agricultural 
structures and the development of rural areas with a view 
to reform of the common agricultural policy; 
Whereas the operations of the Funds, the EIB and the 
other financial instruments must underpin implemen­
tation of a policy of rural development; 
Whereas the main tasks of the Funds must be defined so 
as to specify the broad categories of tasks assigned to 
each of them for the purpose of achieving the priority objectives; whereas it is necessary in particular to define 
the new tasks of the ESF; 
Whereas achievement of the priority objective of 
ensuring the structural adjustment of the less-developed 
regions necessitates a significant concentration of the 
resources of the Community's structural Funds on that 
objective; 
Whereas the regions and individuals in the Community 
eligible for Community structural assistance in 
connection with the various priority objectives should be 
determined; 
Whereas an initial list should be drawn up of the less-
developed regions; whereas this list should comprise 
administrative level NUTS II regions where per capita 
GDP measured in terms of purchasing power parity is 
less than 75 % of the Community average, and other 
regions whose inclusion is justified by special circum­
stances; 
Whereas it is necessary to draw up criteria for defining 
the declining industrial areas; whereas, moreover, 
Community action could, in order to ensure effective 
concentration of assistance, cover between 12 % and 
15 % of the Community population living outside the 
less-developed regions; 
Whereas Community action is intended to be 
complementary to action by the Member States; 
whereas, in order to impart value added to their own 
initiatives at the appropriate territorial level, close 
consultations should be instituted between the 
Commission, the national authorities and the competent 
authorities designated by the Member State concerned at 
regional, local or other level, with each party acting as a 
partner in the pursuit of a common goal; 
Whereas it is necessary to specify the principal forms of 
structural assistance to be provided by the Community 
for the purposes of the objectives set out in Articles 130a 
and 130c of the Treaty; whereas those forms of 
assistance must add to the effectiveness of the measures 
taken by it and at the same time satisfy the needs of the 
different situations that may arise; 
Whereas the main emphasis must be placed on assistance 
in the form of multiannual operational programmes; 
Whereas, in order to secure joint action between one or 
more Funds, the EIB and one or more of the other 
existing financial instruments, those programmes may be 
drawn up and implemented on the basis of an integrated 
approach to the measures involved; 
Whereas mechanisms should be established for varying 
Community assistance in line with the particular features 
of the measures to be supported and in the light of the 
context in which they are to be carried out and the 
financing capacity of the Member State concerned; 
No C 151/6 Official Journal of the 
Whereas, in implementing this Regulation, it is necessary 
to establish procedures for ensuring close cooperation 
between the Commission and the national, regional and 
local authorities in Member States; 
Whereas it is necessary to establish effective methods of 
monitoring, assessing and carrying out checks in respect 
of Community structural operations, based on objective 
criteria, and to ensure that those methods are adapted to 
the tasks of the different Funds as specified in this Regu­
lation; 
Whereas it is necessary to lay down in subsequent 
implementing legislation the detailed rules governing the 
individual Funds, together with the arrangements for the 
coordination and joint deployment of the Community's 
various structural Funds and instruments, and the 
necessary transitional provisions; 
Whereas, while performing the tasks assigned to it by 
Articles 129 and 130 of the Treaty, the EIB is to 
cooperate in achieving the objectives set out in this 
Regulation in accordance with the procedures laid down 
in its Statute, 
HAS ADOPTED THIS REGULATION: 
I. Objectives and tasks of the structural Funds 
Article 1 
Objectives 
Community operations under the structural Funds, the 
European Investment Bank (hereinafter referred to as the 
'EIB') and other existing financial instruments shall 
support the achievement of the general objectives set out 
in Articles 130a and 130c of the Treaty by contributing 
to the attainment of five priority objectives: 
1. promoting the development and structural adjustment 
of the less-developed regions (hereinafter referred to 
as 'Objective No 1'); 
2. converting the regions, frontier regions or parts of 
regions (including employment areas and urban 
communities) seriously affected by industrial decline 
(hereinafter referred to as 'Objective No 2'); 
3. combating long-term unemployment (hereinafter 
referred to as 'Objective No 3'); 
4. facilitating the occupational integration of young 
people (hereinafter referred to as 'Objective No 4'); 
5. with a view to reform of the common agricultural 
policy: 
(a) speeding up the adjustment of agricultural 
structures, and 
(b) promoting the development of rural areas 
(hereinafter referred to as 'Objectives No 5(a) and 
No 5(b)'). Communities 9. 6. 88 
Article 2 
Means 
1. The structural Funds (the European Agricultural 
Guidance and Guarantee Fund, Guidance Section, here­
inafter referred to as the 'EAGGF Guidance Section'; 
the European Social Fund, hereinafter referred to as the 
'ESF'; the European Regional Development Fund, here­
inafter referred to as the 'ERDF') shall contribute, each 
according to the specific provisions governing its oper­
ations, to the attainment of Objectives Nos 1 to 5 on the 
basis of the breakdown given below: 
— Objective No 1: ERDF, ESF, EAGGF Guidance 
Section, 
— Objective No 2: ERDF, ESF, 
— Objective No 3: ESF, 
— Objective No 4: ESF, 
— Objective No 5(a): EAGGF Guidance Section; 
5(b): EAGGF Guidance Section, ESF, ERDF. 
2. The EIB, while performing the tasks assigned to it 
by Articles 129 and 130 of the Treaty, shall cooperate in 
achieving the objectives set out in Article 1 in accordance 
with the procedures laid down in its Statute. 
3. The other existing financial instruments may 
contribute, each according to the specific provisions 
governing its operations, to any measure supported by 
one or more of the structural Funds in connection with 
one of the abovementioned five objectives. Where appro­
priate, the Commission shall take measures to enable 
these instruments to make a better contribution to the 
objectives set out in Article 1. 
Article 3 
Tasks of the Funds 
1. The ERDF shall perform the tasks entrusted to it 
by Article 130c of the Treaty by providing support in 
particular for: 
(a) productive investment; 
(b) the creation or modernization of infrastructures 
essential to the development or conversion of the 
regions, frontier regions or parts of regions, 
including employment areas and urban communities; 
(c) measures to exploit the potential for internally 
generated development of the regions, frontier 
regions or parts of regions, including employment 
areas and urban communities; 
(d) studies or pilot schemes concerning physical planning 
at Community level, especially where frontier areas 
of Member States are involved. 
9. 6. 88 Official Journal of the European Communities No C 151/7 
2. In connection with the task assigned to it by Article 
123 of the Treaty, the ESF shall support measures, 
notably through vocational training and employment 
aids, aimed at: 
(a) placing young people in jobs and combating long-
term unemployment; 
(b) providing workers with the vocational skills that 
promote stability of employment; 
(c) expanding employment opportunities. 
Such support shall take account of labour-market 
requirements and of the need for a consistent selection 
of the priorities laid down in Community and national 
employment policies. 
3. In line with the priorities set out in Article 39 of the 
Treaty in particular, assistance under the EAGGF 
Guidance Section shall be geared to the following tasks: 
(a) strengthening and reorganizing agricultural 
structures, including those for the marketing and 
processing of agricultural and fishery products, 
especially with a view to reform of the Community's 
common agricultural policy; 
(b) converting agricultural production and fostering the 
development of supplementary activities for farmers 
in rural areas; 
(c) ensuring a fair standard of living for farmers; 
(d) helping to develop the social fabric of rural areas, to 
safeguard the environment, to preserve the 
countryside, (among other things by securing the 
conversation of natural agricultural resources) and to 
offset the effects of natural handicaps on agriculture. 
4. The specific provisions governing operations under 
each structural Fund shall be laid down in the 
implementing decisions adopted pursuant to Article 43, 
127 or 130e of the Treaty. They shall establish in 
particular the procedures for providing assistance in one 
of the forms defined in Article 5 (2), the conditions of 
eligibility and the rates of assistance. Without prejudice 
to paragraph 5, they shall also establish the arrangements 
for the monitoring, assessment, financial management 
and checking of measures and the transitional provisions 
necessary in relation to existing rules. 
5. The Council, acting on the basis of Article 43, 127 
or 130e of the Treaty, shall adopt the provisions 
necessary for ensuring coordination between the 
different Funds, on the one hand, and between them and 
the EIB and the other existing financial instruments, on 
the other. The Commission and the EIB shall establish 
by mutual agreement the practical arrangements for 
coordinating the operations. The implementing decisions referred to in this Article 
shall also lay down the transitional provisions concerning 
the integrated approaches adopted under existing rules. 
6. The implementing decisions referred to in para­
graphs 4 and 5 may provide for Community financing of 
operations permitting the exchange of information 
between Member States based on the assessment of oper­
ational programmes and of innovative operations 
involving a number of Member States. 
II. Arrangements for structural operations 
Article 4 
Complementary, partnership, technical assistance 
1. Community operations shall be such as to 
complement corresponding national operations. They 
shall be established through close consultations between 
the Commission, the Member State concerned and the 
competent authorities designated by the latter at 
regional, local or other level, with each party acting as a 
partner in pursuit of a common goal. These consultations 
are hereinafter referred to as the 'partnership'. The part­
nership shall cover the preparation, financing, moni­
toring and assessment of operations. 
2. Acting in accordance with the provisions of this 
Regulation and with the provisions referred to in Article 
3 (4) and (5), the Commission shall take the steps and 
measures necessary to ensure that Community operations 
are in support of the objectives set out in Article 1 and 
impart to national initiatives the necessary value added. 
3. Within the framework of the partnership, the 
Commission may, in accordance with procedures laid 
down in the provisions referred to in Article 3 (4), 
contribute to the preparation, implementation and adap­
tation of operations by financing preparatory studies and 
technical assistance operations locally, in agreement with 
the Member State concerned or with the authorities 
referred to in paragraph 1. 
4. For each objective, tasks shall be shared between 
the Commission and the Member State during the prepa­
ration of operations in accordance with Articles 8 to 11. 
Article 5 
Forms of assistance 
1. Financial assistance under the structural Funds, the 
EIB and the other existing Community financial 
instruments shall be provided in a variety of forms that 
reflect the nature of the operations to be carried out. 
No C 151/8 Official Journal of the European Communities 9. 6. 88 
2. In the case of the structural Funds, financial 
assistance shall be provided in one of the following 
forms: 
(a) part-financing of operational programmes; 
(b) part-financing of an aid scheme; 
(c) provision of global grants, as a general rule managed 
by an intermediary (regional development 
corporation or other) and allocated by it in the form 
of individual grants to final beneficiaries; 
(d) part-financing of major projects; 
(e) support for technical assistance or studies in prepa­
ration for operations. 
Acting by qualified majority on a proposal from the 
Commission and in cooperation with the European 
Parliament, the Council may introduce other forms of 
assistance. 
3. In the case of the EIB and the other existing 
financial instruments, each observing its own specific 
rules, financial assistance shall be provided in one of the 
following forms: 
— loans or other forms of part-financing specific 
investment projects, 
— global loans, 
— part-financing of technical assistance or of studies in 
preparation for operations, 
— guarantees. 
4. Community assistance combines in an appropriate 
way assistance in the form of grants and loans referred 
to in paragraphs 2 and 3 in order to maximize the 
stimulus provided by the budgetary resources deployed, 
making use of financial engineering techniques. 
5. An operational programme within the meaning of 
paragraph 2 (a) shall consist in a series of consistent 
multiannual measures which may be implemented 
through recourse to one or more Funds, to one or more 
of the other existing financial instruments, and to the 
EIB. 
Where an operational programme involves operations 
under more than one Fund and/or more than one other 
financial instrument, it may be implemented in the form 
of an integrated approach the details of which shall be 
determined by the provisions referred to in Article 3 (5). 
Operational programmes shall be undertaken on the 
initiative of the Member States or of the Commission in 
agreement with the Member State concerned. Article 6 
Monitoring and assessment 
1. Community operations shall be monitored to 
ensure that the commitments entered into as part of the 
objectives set out in Articles 130a and 130c of the Treaty 
are effectively honoured. Such monitoring shall, where 
necessary, make it possible to adjust operations in line 
with requirements arising during implementation. 
2. In order to gauge their effectiveness, Community 
structural operations shall be the subject of an ex ante 
and an ex post assessment designed to highlight their 
economic impact and to analyse their effects on specific 
structural problems. 
3. The procedures for monitoring and assessing 
Community operations shall be established by the 
provisions referred to in Article 3 (4) and (5) and, in the 
case of the EIB, in the manner provided for in its 
Statute. 
Article 7 
Compatibility and checks 
1. Measures financed by the structural Funds or 
receiving assistance from the EIB or from another 
existing financial instrument shall be in keeping with the 
provisions of the Treaty, with the instruments adopted 
pursuant to the latter and with the objectives of 
Community policies, notably with regard to the rules on 
competition, the award of public contracts and 
protection of the environment. 
2. Without prejudice to the provisions of the Financial 
Regulation, the provisions referred to in Article 3 (4) and 
(5) shall lay down harmonized rules for strengthening 
checks on structural operations. They shall be adjusted 
to reflect the special nature of the financial operations 
concerned. The procedures for carrying out checks on 
operations undertaken by the EIB are set out in its 
Statute. 
III. Provisions relating to the specific objectives 
Article 8 
Objective No 1 
1. The regions concerned by Objective No 1 are 
regions at NUTS (x) level II whose per capita GDP, on 
the basis of the figures for the last three years, is less 
than 75 % of the Community average. 
They also include Northern Ireland, the French overseas 
departments and other regions whose per capita GDP is 
close to that of the regions referred to in the first 
subparagraph and which have to be included within the 
scope of Objective No 1 for special reasons. 
2. An initial list of regions concerned by Objective 
No 1 is given in the Annex. 
(*) Nomenclature of Territorial Units for Statistical Purposes 
(NUTS). See Eurostat, 'Statistiques Rapides des Regions', 
25 August 1986. 
9. 6. 88 Official Journal of the European Communities No C 151/9 
3. The Council, acting by qualified majority on a 
proposal from the Commission and in consultation with 
the European Parliament, shall review the list within five 
years of the date of entry into force of this Regulation. 
4. The Member States concerned by the list referred 
to in paragraph 1 shall submit to the Commission their 
regional development plans. These shall include in 
particular: 
— a description of the regional development priorities 
selected and of the corresponding operations, 
— an indication of the use to be made of assistance 
available under the Funds, the EIB and the other 
financial instruments in implementing the plans. 
Where appropriate, the regional development plans shall 
be supplemented, at the Commission's request or on the 
initiative of the Member States, by other relevant infor­
mation relating in particular to operations to be carried 
out at national, sectoral or interregional level. 
Member States shall also submit the plans referred to in 
Article 10 (2) and the operations referred to in Article 
11 (1) for the regions concerned, including the data 
relating to the operations under Article 11 (1), which 
under Community rules constitute rights for the benefi­
ciaries. 
5. The Commission shall examine the proposed plans 
and operations and the other information referred to in 
paragraph 4 to determine whether they are consistent 
with the objectives of this Regulation and with the 
provisions and policies referred to in Articles 6 and 7. 
On the basis of all the plans and operations referred to 
in paragraph 4, it shall establish, through the partnership 
referred to in Article 4 (1) and in agreement with the 
Member State concerned, the Community support 
framework for Community structural operations, in 
accordance with the procedures referred to in Article 17. 
The Community support framework shall cover in 
particular: 
— the priorities adopted for Community assistance, 
— the forms of assistance, 
— the financing plan, with details of the amount of 
assistance and its source, 
— the duration of the assistance. 
The Community support framework shall provide coor­
dination of Community structural assistance towards 
those of the objectives referred to in Article 1 which may 
be pursued in a particular region. 
The Community support framework may, if necessary, 
be revised and adjusted, on the initiative of the Member 
State or of the Commission, in order to take account of 
new relevant information and of the results obtained 
during implementation of the operations concerned. 6. The arrangements for the preparation and 
submission of regional development plans and for the 
Community support frameworks shall be laid down in 
the provisions referred to in Article 3 (4) and (5). 
7. Assistance in respect of Objective No 1 shall be 
predominantly in the form of operational programmes. 
8. With a view to facilitating the programming of 
operations in the regions concerned, the Commission 
shall, as a guide, share out between Member States for a 
period of five years 75 % of the commitment appropri­
ations allocated to the ERDF for the purposes of 
Objective No 1. This share-out shall be based on socio­
economic criteria typifying the structural backwardness 
of the regions. The resources not shared out in this way 
shall be used by the Commission, in support of 
attainment of Objective No 1, to promote operations of 
significant interest to the Community. 
The Member States concerned and the Commission 
shall, as part of their consultations, check on the quality 
and pace of implementation of the proposed operations. 
9. The operations eligible for assistance under the 
various Funds contributing to attainment of Objective 
No 1 shall be specified in the provisions referred to in 
Article 3 (4). 
Article 9 
Objective No 2 
1. The declining industrial areas concerned by 
Objective No 2 shall comprise regions, frontier regions 
or parts of regions (including employment areas and 
urban comunities). 
2. The areas referred to in paragraph 1 must represent 
or belong to a NUTS level III territorial unit which 
satisfies the following criteria: 
(a) the average rate of unemployment must have been at 
least 15 % above the recorded Community average 
in the last three years for which statistics are 
available; 
(b) the percentage share of industrial employment in 
total employment must have exceeded the 
Community average in any of the last 10 reference 
years; 
(c) there must have been an observable fall in industrial 
employment compared with the reference year 
chosen in accordance with point (b). 
No C 151/10 Official Journal of the European Communities 9. 6. 88 
Community assistance may extend over adjacent areas 
satisfying the criteria in points (a) to (c). 
3. The following may also qualify for Community 
assistance: 
(a) areas which have experienced substantial job losses in 
certain specific industries over the last three years; 
(b) areas threatened with substantial job losses and 
covered by a restructuring plan in specific industries, 
with those losses resulting in a serious aggravation of 
unemployment. 
The specific industries referred to are coal, steel, textiles 
and clothing, and shipbuilding. Other industries may be 
considered where the Commission so decides, having 
regard to the general developments in those industries in 
the Community. 
4. As soon as this Regulation has entered into force, 
the Commission shall, in accordance with the procedure 
laid down in Article 17 and on the basis of paragraphs 2 
and 3 above, establish an initial list of the areas referred 
to in paragraph 1. 
In establishing the list and in defining the Community 
support framework referred to in paragraph 8 below, the 
Commission shall seek to ensure that assistance is 
genuinely concentrated on the areas most seriously 
affected, at the most appropriate geographical level. 
As soon as this Regulation has been adopted, Member 
States shall supply to the Commission all information 
which might be of assistance to it in establishing this list. 
5. The list of areas shall be reviewed by the 
Commission every year. However, the assistance granted 
by the Community in respect of Objective No 2 in the 
various areas listed shall be planned and implemented on 
a three-yearly basis. 
6. Not lather than three years after this Regulation 
enters into force, the criteria laid down in paragraphs 2 
and 3 shall be reviewed by the Council, acting by 
qualified majority on a proposal from the Commission 
and in cooperation with the European Parliament. 
7. The Member States concerned by the list referred 
to in paragraph 4 and by the assistance referred to in 
paragraph 3 shall submit their regional and social 
conversion plans to the Commission. Those plans shall 
include in particular: 
— a description of the conversion priorities selected for 
the areas concerned and of the corresponding oper­
ations, — an indication of the use to be made of assistance 
available under the Funds, the EIB and the other 
financial instruments in implementing the plans. 
Where appropriate, the conversion plans shall be 
supplemented, at the Commission's request or on the 
initiative of Member States, by other relevant infor­
mation relating in particular to operations to be carried 
out at national, sectoral or interregional level. 
8. The Commission shall examine the proposed plans 
to determine whether they are consistent with the 
objectives of this Regulation and with the provisions and 
policies referred to in Articles 6 and 7. It shall establish, 
through the partnership defined in Article 4 (1), in 
agreement with the Member State concerned and in 
accordance with the procedures referred to in Article 17, 
the Community conversion support framework for 
Community structural operations. 
The Community support framework shall cover in 
particular: 
— the priorities adopted for Community assistance, 
— the forms of assistance, 
— the financing plan, with details of the amount of 
assistance and its source, 
— the duration of the assistance. 
The Community support framework may, if necessary, 
be revised and adjusted to take account of new relevant 
information and of the results obtained during 
implementations of the operations concerned. 
9. The arrangements for the preparation and 
submission of regional and social conversion plans and 
for the Community support frameworks shall be laid 
down in the provisions referred to in Article 3 (4) and 
(5). 
10. Assistance in connection with Objective No 2 shall 
be predominantly in the form of operational 
programmes. 
11. The operations of the Funds contributing to 
Objective No 2 shall be specified in the provisions 
referred to in Article 3 (4). 
12. By way of derogation from the provisions of 
paragraph 4 above and in order to facilitate the restruc­
turing endorsed by the Community of declining 
industrial sectors, the ESF may provide assistance in 
favour of workers directly affected by restructuring in 
areas other than those concerned by the criteria of para­
graphs 2 and 3. 
9. 6. 88 Official Journal of the European Communities NoC 151/11 
Article 10 
Objectives No 3 and No 4 
1. "Within the framework of the provisions 
implementing this Regulation, the Commission shall 
establish for a period covering a number of years general 
guidelines that set out and clarify the Community 
choices and criteria concerning action to combat long-
term unemployment (Objective No 3) and to facilitate 
the occupational integration of young people (Objective 
No 4). 
2. Member States shall submit their plans for 
combating long-term unemployment (Objective No 3) 
and for facilitating the occupational integration of young 
people (Objective No 4) to the Commission. Those plans 
shall include in particular: 
— information on the employment and labour market 
policy implemented at national level, 
— an indication of the priority operations undertaken 
for a specific number of years to help those sections 
of the population concerned by Objectives No 3 and 
No 4, and resulting from the general guidelines laid 
down by the Commission, 
— an indication of the use to be made of assistance 
available under the ESF — where appropriate, in 
conjunction with assistance from the EIB or other 
Community financial instruments — in implementing 
the plans. 
3. The Commission shall examine the proposed plans 
to determine whether they are consistent with the 
objectives of this Regulation, with the general guidelines 
laid down by it and with the provisions and policies 
referred to in Articles 6 and 7. It shall establish for each 
Member State, through the partnership referred to in 
Article 4(1), in agreement with the Member State 
concerned and in accordance with the procedures 
referred to in Article 17, the Community support 
framework for the attainment of Objectives No 3 and 
No 4. 
The Community support framework shall indicate in 
particular: 
— the specific priorities adopted for Community 
assistance in respect of the persons concerned by 
Objectives No 3 and No 4, 
— the forms of assistance, 
— the financing plan, with details of the amount of 
assistance and its source, 
— the duration of the assistance. 
The Community support framework may, if necessary, 
be revised and adjusted on the initiative of the Member 
State concerned or of the Commission in the light of 
relevant new information and of the results obtained 
during implementation of the operations concerned. 4. The arrangements for the preparation and 
submission of plans for combating long-term unem­
ployment and facilitating the occupational integration of 
young people and for the Community support 
frameworks shall be laid down in the provisions referred 
to in Article 3 (4) and (5). 
5. Assistance in connection with Objectives No 3 and 
No 4 shall be predominantly in the form of operational 
programmes. 
6. The operations eligible for ESF assistance in 
connection with Objectives No 3 and No 4 shall be 
specified in the provisions referred to in Article 3 (4). 
Article 11 
Objective No 5 
1. The arrangements for the implementation of oper­
ations connected with the accelerated adaptation of agri­
cultural structures (Objective No 5 (a)) shall be decided 
on within the framework of the provisions adopted 
pursuant to Article 3 (4) and (5). 
2. The criteria to be applied in selecting the rural 
areas concerned by Objective No 5 (b) shall be decided 
on within the framework of the provisions adopted 
pursuant to Article 3 (4) and (5). 
3. The Member States concerned by the pursuit of 
Objective No 5 (b) shall submit their development plans 
for rural areas to the Commission. Those plans shall 
include in particular: 
— a description of the rural development priorities and 
of the corresponding measures, 
— an indication of the use to be made of assistance 
available under the different Funds, the EIB and the 
other financial instruments in implementing the plans. 
The Commission shall examine the proposed plans to 
determine whether they are consistent with the objectives 
of this Regulation and with the provisions and policies 
referred to in Articles 6 and 7. It shall establish, through 
the partnership referred to in Article 4 (1), in agreement 
with the Member State concerned and in accordance 
with the procedures referred to in Article 17, the 
Community support framework for rural development. 
The Community support framework shall cover in 
particular: 
— the rural development priorities adopted for 
Community assistance, 
— the forms of assistance, 
— the financing plan, with details of the amount of 
assistance and its source, 
— the duration of the assistance. 
No C 151/12 Official Journal of the European Communities 9. 6. 88 
The Community support framework may, if necessary, 
be revised and adjusted on the initiative of the Member 
State concerned or of the Commission in the light of 
new relevant information and of the results obtained 
during implementation of the operations concerned. 
The arrangements for the preparation and submission of 
rural development plans by Member States shall be laid 
down in the provisions referred to in Article 3 (4) and 
(5). 
4. The part-financing of national aids and of opera­
tional programmes shall be the preferred form of 
assistance. 
5. The operations eligible for assistance under the 
different Funds in connection with Objective No 5 shall 
be specified in the provisions referred to in Article 3 (4). 
In the case of the EAGGF Guidance Section, those 
provisions shall distinguish between operations to be 
financed in connection with the adaptation of agri­
cultural structures and operations to be financed in 
connection with rural development. 
IV. Financial provisions 
Article 12 
Fund resources and concentration 
1. Within the framework of the multiannual budget 
forecasts, the Commission shall present each year a five-
year projection of the appropriations needed for the 
three structural Funds taken together. The projection 
shall be accompanied by an indicative breakdown of the 
commitment appropriations to be assigned to each 
objective. In drawing up each preliminary draft budget, 
the Commission shall, where the allocation for the 
structural Funds is concerned, take account of the indi­
cative breakdown by objective. 
2. The commitment appropriations for the structural 
Funds taken together shall be doubled in real terms 
between 1987 and 1993. 
3. A major effort shall be made to concentrate 
budgetary resources on the less-developed regions 
covered by Objective No 1. The contributions of the 
structural Funds to these regions shall be doubled in real 
terms by 1992. 
4. The Commission shall ensure that, in the 
framework of the additional resources for the regions 
covered by Objective No 1 a special effort will be 
undertaken for the least prosperous regions. 
5. The ERDF may devote up to 80 % of its appropri­
ations to Objective No 1. Article 13 
Differentiation of rates of assistance 
1. The Community contribution to the financing of 
operations shall be differentiated in the light of the 
following: 
— the seriousness of the specific, notably regional, 
problems to be tackled, 
— the financing capactiy of the Member State 
concerned, 
— the special importance attaching to measures from a 
Community viewpoint, 
— the special importance attaching to measures from a 
regional and a sectoral viewpoint, 
— the particular characteristics of the types of measure 
proposed. 
2. Such differentiation shall take account of the 
planned link between grants and loans referred to in 
Article 5 (4). 
3. The rates of Community assistance granted by the 
Funds in respect of the various objectives listed in 
Article 1 shall be subject to the following ceilings: 
— a maximum of 75 % of the total cost and, as a 
general rule, at least 50 % of public expenditure in 
the case of measures carried out in the regions 
eligible for assistance under Objective No 1, 
— a maximum of 50 % of the total cost and, as a 
general rule, at least 25 °/o of public expenditure in 
the case of measures carried out in the other regions. 
The minimum rates of assistance laid down above shall 
not apply to revenue bearing investment. 
4. Preparatory studies and technical assistance 
measures undertaken on the initiative of the Commission 
may be financed at 100 % of total cost. 
5. The arrangements for implementation of this 
Article shall be laid down in the implementing decisions 
referred to in Article 3 (4) and (5). 
V. Other provisions 
Article 14 
Combination and overlapping of assistance 
1. For any given period, an individual measure or 
operation may benefit from assistance from only one 
Fund at a time. 
9. 6. 88 Official Journal of the European Communities No C 151/13 
2. An individual measure or operation may benefit 
from assistance from a Fund or other financial 
instrument in respect of only one of the objectives set 
out in Article 1 at a time. 
3. When implemented in the less-developed regions, 
operations in connection with all the objectives specified 
in Article 1 of this Regulation shall be accounted for 
under Objective No 1. 
4. The arrangements governing the combination and 
overlapping of assistance shall be laid down in the 
provisions referred to in Article 3 (4) and (5). 
Article 15 
Transitional provisions 
1. This Regulation shall not affect multiannual oper­
ations approved by the Council or by the Commission, 
under the existing rules governing the Funds, before this 
Regulation is adopted. 
2. Applications for assistance from the Funds towards 
a multiannual operation which are submitted after this 
Regulation is adopted but before the provisions referred 
to in Article 3 (4) and (5) enter into force shall be 
considered in the light of this Regulation. Any approval 
of Community assistance shall be given in accordance 
with the forms and procedures laid down by the rules in 
force at the time the application is approved. 
3. The provisions in this Regulation which require the 
Member States to draw up plans and operational 
programmes shall be implemented progressively in 
accordance with the transitional provisions referred to in 
Article 3 (4) and (5). The Commission shall help with 
implementation in particular by means of the technical 
assistance measures referred to in Article 4 (3). 
4. The implementing decisions referred to in Article 
3 (4) and (5) shall lay down the transitional provisions 
necessary in relation to existing rules. 
Article 16 
Reports 
Before 1 November of each year, the Commission shall 
present to the Council, to the European Parliament and to the Economic and Social Committee a report on the 
implementation of this Regulation during the preceding 
year. 
In this report, the Commission shall in particular indicate 
what progress has been made towards achieving the 
objectives set out in Article 1 and in concentrating 
assistance as required by Article 12. 
Article 17 
Committees 
1. In implementing this Regulation, the Commission 
shall be assisted by three advisory committees dealing 
respectively with: 
— Objectives No 1 and No 2, 
— Objectives No 3 and No 4, 
— Objectives No 5 (a) and No 5 (b). 
2. The provisions setting out the arrangements 
relating to the functioning of the committees referred to 
in paragraph 1 and the transitional provisions concerning 
the existing committees in the framework of the 
management of the Funds, shall be laid down in 
accordance with Article 3 (4) and (5). 
VI. Final provisions 
Article 18 
Implementation 
The Commission shall be responsible for the implemen­
tation of this Regulation. 
Article 19 
Entry into force 
This Regulation shall enter into force on 1 January 1989. 
Subject to the transitional provisions laid down in Article 
15 (2) and (3), it shall be applicable as from that date. 
The date of entry into force may be deferred by the 
Council, acting by a qualified majority on a proposal 
from the Commission, to allow for the entry into force 
of the provisions referred to in Article 3 (4) and (5). 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
No C 151/14 Official Journal of the European Communities 9. 6. 88 
ANNEX 
Regions concerned by Objective No 1 
SPAIN: 
FRANCE: Andalusia 
Asturias 
Castile-Le6n 
Castile-La Mancha 
Ceuta-Melilla 
Valencia 
Extremadura 
Galicia 
Canary Islands 
Murcia 
French overseas departements (DOM) 
Corsica 
GREECE: 
IRELAND: 
ITALY: 
PORTUGAL: 
UNITED KINGDOM: the entire country 
the entire country 
Abruzzi 
Basilicata 
Calabria 
Campania 
Molise 
Apulia 
Sardinia 
Sicily 
the entire country 
Northern Ireland