No C 83/4 Official  Journal  of the European  Communities 2. 4. 80 
2. However  welcome  the  Commission's  proposals  may  be inasmuch  as they  seek  to codify  the 
currently  applicable  provisions,  we  should  reject  a perfectionist  approach  which  will  set  in 
motion  the  whole  EC  administrative  apparatus  to the  extent  of bringing  in a Council  Regulation 
for the  sake  of very  few  — and,  what  is more,  legal  — import  transactions  (so  far  just  one  or two). 
3. The  implications  of this  extravagant  procedure  become  clear,  however,  when  one  recognizes 
that  what  appears  to be a mere  technical  adaptation  of provisions  is something  much  more  far-
reaching,  viz.: 
(a) a move  towards  tightening  up market  regulations; 
(b) further  extension  of protectionism  in respect  of agricultural  products; 
(c) an increase  in the  price  of imports  into  the  Federal  Republic  of Germany  at least,  including 
imports  from  other  Community  countries. 
4. The  effect  which  the  inclusion  of eggs  in the  list  of basic  products  will  have  on consumer 
prices  can  be predicted.  Because  of the  mandatory  compensatory  amounts  the  price  of egg  pasta 
products  in the  Federal  Republic  of Germany  at any  rate  will  be increased  by 0 -13 DM/kg.  The 
increase  in the  case  of high  quality  confectionery  products  with  a high  egg  content  (e.g. 
meringues  and  'baiser')  will  be even  higher. 
Voting 
For:  19;  against:  31;  abstentions:  13. 
Opinion  on the proposal  for Council  Regulations  instituting  specific  Community  regional 
development  projects  under  Article  13 of the ERDF  Regulation 
The text  referred  to the Committee  has  not  yet been  published  in the Official  Journal 
of the European  Communities. 
On 25 October  1979  the Council  referred  the abovementioned  proposal  to the Eco-
nomic  and  Social  Committee  in accordance  with  Article  198  of the Treaty  establishing 
the European  Economic  Community. 
B. OPINION  OFTHE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
174th  plenary  session  held  in Brussels  on 12 and 13 December  1979. 
The full  text  of the opinion  is as follows: A. LEGAL  BASIS  FOR  THE  OPINION 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, of the  European  Communities  on 25 October  1979 
for an opinion, 
Having  regard  to the Treaty  establishing  the Euro-
pean  Economic  Community,  and  in particular  Arti-
cle 198  thereof, Having  regard  to the decision  taken  by the Bureau 
of the Economic  and  Social  Committee  on 23 Octo-
ber 1979  instructing  the  Section  for  Regional  De-
velopment  to draft  the Committee's  opinion, Having  regard  to the request  made  by the  Council 
2. 4. 80 Official  Journal  of the European  Communities No C 83/5 
Having  regard  to the  preparatory  work  of the  Sec-
tion for  Regional  Development,  which  was  unable 
to issue  an opinion  owing  to circumstances  beyond 
its control, 
Having  regard  to plenary  session's  decision  of 12 
December,  appointing  Mr  Pearson  rapporteur-gen-
eral, 
Having  regard  to the discussions  at the 174th  plen-
ary session  held  on 12 and  13 December  1979  (meet-
ing of 13 December  1979), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously,  with  four  abstentions: 
1. General  comments 
1.1. The  Committee  welcomes  the implementation 
of the  'quota-free'  Section  which  was  set up under 
Article  13 of the  European  Regional  Development 
Fund.  The  provisions  provide  for  aid  particularly 
where  other  Community  policies  and  measures  have 
had,  or will  have,  adverse  structural  effects  within 
areas  or regions  of the  Member  States  which  will 
suffer  as a consequence  of these  policies.  This  inno-
vation  recognizes  the responsibility  which  devolves 
on the  Community  to compensate  for  measures 
taken  elsewhere  and  the Committee  considers  that  it 
can be a decisive  factor  in amending  deteriorating 
conditions  in certain  regional  areas. 
1.2. The  Committee  considers  that  a 5 % allocation 
of an already  insufficient  Regional  Development 
Fund  is too small  to adequately  meet  the proper  call 
on funds  to achieve  its objective.  The  Quota  Section 
of the  European  Regional  Development  Fund  has 
not proved  to be as effective  as its innovators  envis-
aged  and  therefore  the  flexibility  accorded  to the 
Quota  Free  Section  is more  important  than  ever. 
1.3. The  Committee  notes  with  approval  that  the 
Quota  Free  Section  of the  European  Regional  De-
velopment  Funds  has a number  of innovations:  firstly, 
it will  'provide  new  forms  of aid  for  initiative  to 
develop  and  sustain  any  capacity  for  enterprise 
which  otherwise  is unable  to be transformed  into 
productive  measures  because  of an unfavourable 
environment'.  There  is also  a new  method  of financ-
ing in so far as programmes  are involved  rather  than 
individual  projects.  Furthermore,  for certain  types  of 
aid the  Commission  can  pay  a large  proportion  of 
the amount  without  direct  Member  States  aid.  The concept  of creating  a renewed  intellectual  environ-
ment  is a novel  one.  The  proposed  actions  have 
been  drawn  up with  this  very  much  in mind.  These 
new approaches  have  the Committee's  approval  in 
that they  may  be more  effective  than  the more  usual 
material  aid. 
1.4. The  Committee  agrees  that  these  new  'pilot 
experiences'  may  be the vehicle  to create  a new  out-
look  for  Community  regional  policy.  Of the  four 
constraints  (a) the link  between  Community  policies 
and their  regional  consequences;  (b)  non-quota 
measures  must  differ  from  quota  measures;  (c) 
financial  constraints;  (d)  new  methods  of imple-
mentation,  which  the  Regulation  has  imposed,  the 
second  may  make  it difficult  to find  suitable  meas-
ures which  will  show  the  necessary  originality,  or 
lack of similarity  to normal  regional  development 
measures.  However,  the broad  scope  of the regula-
tions  under  Article  13 is such  that  the Commission 
will have  the  opportunity  to introduce  new  ideas, 
research  and  evaluate  them,  and  aid  them  degres-
sive^;  this  can enable  a definite  impact  to be made. 
1.5. The  provisions  of Article  13 oblige  the Com-
mission  to conceive  new  methods  of implementa-
tion.  The  Committee  considers  that  the  new  pro-
cedures  are a satisfactory  start  to this  provision. 
1.6. The  proposals  submitted  by the  Commission 
are detailed  and  the  reasons  for the eventual  selec-
tion of these  five  actions  appear  to be well  consid-
ered,  particularly  as they  take  full  account  of the 
link between  certain  aspects  of Community  policies 
and their  effects  on certain  zones. 
1.7. The  Committee  recognizes  that  the regulations 
of Article  13 prevent  the  use  of funds  towards  the 
support  of industries  that  are no longer  viable  (Arti-
cle 13.1  (2)).  It is important  that  action  programmes 
instigated  are  not  the  subject  of electoral  pressures 
to circumvent  this  Regulation  and  the  Committee  is 
pleased  that  the  Commission  is fully  aware  of the 
constraint  of this  provision. 
1.8. Prevention  is generally  considered  to be better 
than  cure.  Accordingly,  the foresight  in anticipating 
the problems  which  will  arise,  relative  to enlarge-
ment,  in parts  of France  and  Italy  is thought  wise. 
Thought,  too,  should  be given  to those  industries 
that are  plainly  ailing,  such  as the textile  industry, 
and part  of the  funds  not  yet  allocated  might  be 
applied  in such  cases,  subject  always  to the condi-
tion that  they  do not  come  within  the category  des-
cribed  in 1.7. 
No C 83/6 Official  Journal  of the European  Communities 2. 4. 80 
1.9. The  very  diversity  of  measures  involving 
energy,  border  areas,  enlargement,  restructuring,  will 
raise  problems  of effective  monitoring.  The  Com-
mittee  notes  the provisions  made  for this  and  agrees 
that the checks  and  controls  outlined  should  be suf-
ficient  being  more  stringent  than  for the Quota  Sec-
tion.  The  setting  out of the conditions  for quota-free 
Fund  aid  at the  outset  and  the  subsequent  annual 
progress  reports  concerning  the  adherence  to the 
approved  programme  is an interesting  new  depar-
ture.  Continuous  contact  with  local  authorities  can 
be of assistance  in the provision  of information. 
2. Specific  comments 
The Committee  notes  that  the proposals  are made  in 
definite  sections  for differing  types  of aid (excepting 
the border  areas  of Ireland).  More  specific  com-
ments  are made  hereunder: 
2.1. The  effects  of enlargement  on those  areas  of 
France  bordering  on Spain  and  the  whole  of the 
Mezzogiorno  in Italy  are foreseen  in the proposal  to 
provide  120  MEUA  in order  to offset  the  adverse 
effect  on the  economies  of these  regions.  The  Com-
mittee  considers  in particular  that  stimulation  of 
rural  tourism  and  expansion  of SME  and  artisan 
enterprises  are  suitable  actions  to be taken  in order 
to prevent  a down-turn  in economic  and  social  con-
ditions  when  the new  States  become  members  of the 
Community. of the shipbuilding  industry.  The  same  comments  as 
under  2.2 apply,  but  it must  be recognized  that  lack 
of funds  available  for  both  proposed  actions  will 
delay  the maximum  impact  which  is necessary. 
2.4. Imaginative  proposals  for  the  utilization  of 
improved  techniques  for hydro-electric  power,  wind 
power  and  alternative  energy  sources  are  welcome. 
16 MEUA  are to be devoted  to this  proposed  action 
in the mountainous  regions  of the Mezzogiorno.  The 
results  could  be of significant  effect  on the  conser-
vation  of energy  resources  and  the  Committee  sug-
gests  that  the Commission  should  publish  an annual 
report  giving  details  of the  performance  and  effi-
ciency  experienced  in these  areas,  and  which  should 
be available  to the  ESC  and  to other  bodies  that 
receive  the ERDF  annual  report. 
2.5. The  border  areas  of Ireland  are the subject  of 
a special  allocation  of 24 MEUA.  The  proposals 
submitted  are wide,  comprising  a cohesive,  compact 
package  to enable  the  area  to become  a better-
known  and  much  improved  centre  for tourism.  The 
detailed  provisions  should  make  possible  increased 
employment  and  have  a positive  psychological 
effect  in this  area  and,  as such,  are welcomed. 
3. Concluding  remarks 
2.2. Aid  for  the  integrated  redevelopment  of cer-
tain zones  adversely  affected  by the  decline  of the 
steel  industry  amounts  to 43 MEUA.  Its purpose  is 
to promote  programmes  which  will  improve  social 
conditions  and  revive  economic  activity  in these 
areas  as opposed  to providing  funds  for  specific 
projects.  The  modernization  of social  conditions 
such  as housing,  reclamation  and  development  of 
derelict  industrial  and  urban  sites  together  with  the 
provisions  for aid for technical  and  product  innova-
tion,  should  all  materially  benefit  those  areas  to 
create  a new  intellectual  environment  from  which  a 
renewal  of industry  and  an increase  in employment 
can grow. 
2.3. 17  MEUA  is allocated  to the  development  of 
certain  zones  adversely  affected  by the restructuring 3.1. The  'quota  free'  concept  was  described  in ear-
lier documents  of the  Regional  Development  Fund 
as one  in which  assistance  could  be furnished  to 
areas  in which  other  Community  policies  cause  or 
may cause  major  imbalances.  Therefore  the  meas-
ures proposed  should  be of such  nature  as to have  a 
quick  response  and  impact  and  it is stressed  that  this 
aim should  not  be overlooked. 
3.2. It  is noted  that  130  MEUA  have  yet to be allo-
cated.  The  Committee  hopes  that  these  funds  will 
also be used  in a manner  which  will  have  maximum 
impact.  A wide  distribution  of the funds  over  many 
measures  would  defeat  the object  of the Quota-Free 
Section.  In addition  to the  suggestions  made  in 1.8 
above,  the  Committee  considers  that  the  Commis-
sion should  devote  part  of the  remaining  funds  to 
support  the integrated  operations. 
2. 4. 80 Official  Journal  of the European  Communities No C 83/7 
3.3. The  Committee  would  not  favour  any 
amended  proposals  to those  submitted  which  would 
have  the  effect  of enlarging  the  geographical  areas 
determined  in these  measures.  Such  action  could 
defeat  the  concept  of 'quota-free'  assistance,  as 
being  revealed  in these  first  proposals,  given  the 
amount  of the funds  available. 
3.4. The  Commission  has  the  responsibility  of 
making  the selection  of future  action  measures  and 
has an obligation  to ensure  that  those  selected  will 
satisfy  a real  need  in the area  concerned  and  that  the 
measures  and  sites  are  so chosen  that  they  will  be 
fully  effective  in assisting  the deprived  region.  The enthusiasm  for  this  section  of European  Regional 
Development  Fund  assistance  will  evaporate  unless 
the selected  actions  are  seen  to have  a direct  and 
sustaining  impact  on the area  chosen. 
3.5. The  Committee  welcomes  this  major  departure 
from  the  previous  operation  of European  Regional 
Development  policy  and  which  aims  to offset 
adverse  effects  of Community  policies.  The  percen-
tage  share  of the  Quota-Free  Section,  within  the 
total  European  Regional  Development  Fund,  there-
fore,  should  be progressively  raised  each  year  in 
order  to increase  the  number  of specific  measures 
and to make  them  more  effective. 
Done  at Brussels,  13 December  1979. 
The Chairman 
of the Economic  and  Social  Committee 
Raffaele  VANNI 
Opinion  on the  proposal  for  a Council  Directive  amending  for  the  first  time  Council 
Directive  76/768/EEC  of 27 July  1976  on the approximation  of the laws  of the Member 
States  relating  to cosmetic  products 
The text  referred  to the Committee  has  been  published  in Official  Journal  of the Euro-
pean  Communities  No  C 165  of 2 July  1979,  page  52. 
A LEGAL  BASIS  FOR  THE  OPINION 
On 7 June  1979  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  100  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
174th  plenary  session  held  in Brussels  on 12 and  13 December  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the  Euro-
pean  Economic  Community,  and  in particular  Arti-
cle 100  thereof, Having  regard  to the  request  made  by the  Council 
of the European  Communities  on 7 June  1979  for an 
opinion, 
Having  regard  to the  decision  taken  by its Bureau