Opinion on the allocation of the reserve for Community initiatives for the period up to the end of 1999

(96/C 97/04)

On 31 October 1995, the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the allocation of the reserve for Community initiatives for the period up to the end of 1999.

The Section for Regional Development and Town and Country Planning, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 23 January 1996. The Rapporteur was Mr Christie.

At its 332nd Plenary Session (meeting of 31 January 1996), the Economic and Social Committee adopted the following Opinion unanimously.

1. Introduction

1.1. In October 1995 the Commission adopted a proposal in relation to the allocation of the reserve for Community initiatives for the period up to the end of 1999. In a communication to the Economic and Social Committee the Commission has sought the views of the Committee on the proposed allocation.

1.2. The Economic and Social Committee has in recent years adopted two Opinions on the subject of the Community initiatives (). In both cases the Economic and Social Committee restated its strong support for the operation of this aspect to European Union efforts at securing a greater measure of economic and social cohesion. Community initiatives represent an invaluable opportunity to develop novel and innovative programmes of assistance in the disadvantaged regions. These are identifiably EU programmes in that they operate outside the implementation procedures for the bulk of Structural Funds support.

1.3. The financial arrangements agreed upon in 1993 with respect to the Community Initiatives provided for a total allocation of ECU 13,45 billion, of which ECU 1,6 billion (representing 11,9 %) was held in reserve to be assigned to specific programmes at a later date. The Commission has now come forward with proposals to allocate this reserve (ECU 1 665 billion) between a number of the thirteen existing Initiatives.

1.4. Within the total available for allocation, and in accordance with the decisions made at the Edinburgh Summit, the Commission proposes that ECU 690 million be allocated within Objective 1 regions, with the remaining ECU 975 million targeted at other regions.

2. General comments

2.1. The proposed allocation of the financial reserve is generally consistent with the priorities established during the last review of the Community initiatives programme, priorities generally endorsed by the Economic and Social Committee in previous Opinions. Consequently, the Committee is broadly in favour of the Commission's proposed allocations.

2.2. In its communication, the Commission restates the principle that the Structural Funds generally should be directed towards creating employment in the Union. The Economic and Social Committee wholly endorses this principle. Community Initiatives are rightly considered to represent an important and innovative instrument in this respect, with programmes directed specifically at implementing measures designed to improve employment possibilities in disadvantaged regions.

2.3. The Committee also welcomes the proposal to further develop the Interreg initiative by introducing strand 'C' which will encourage cooperation and information exchange between recipient regions generally, and specifically in the case of questions relating to the management of flooding and drought. This will help ensure that the lessons learned in one region can be applied in other regions.

2.3.1. The Interreg programme remains a key mechanism for encouraging transnational cooperation with the objective of ensuring that best practice in particular regions can be applied elsewhere in the EU. In this respect it is important that there is a capacity whereby the expertise which specific regions have developed in matters such as the management of scarce water resources and flood control can be applied in other parts of the Union.

2.3.2. The Committee notes that the Commission proposals for Interreg 'C' require that at least three Member States are involved in an application for support. The Committee would propose that this be amended, where appropriate, to two Member States in that there are areas within the Union which are susceptible to flooding for which eligibility under this programme would be beneficial.

2.4. The Economic and Social Committee considers the extension of funding available under the four programmes aimed at promoting industrial change (Konver, Rechar, Resider and Retex) to be particularly important. In each of these programmes, Community Initiatives are directly promoting employment and enhancing the long term prospects for the recipient regions. That these programmes are now able to continue until 1999 is welcomed given the severity of the economic difficulties that many of the regions confront.

2.5. The focus on strengthening direct measures to assist the re-absorption of particularly disadvantaged groups within those unemployed is an aspect of the Community initiatives programme to which the Economic and Social Committee attaches particular importance. Consequently, the Committee endorses the Commission's proposal to increase the funds allocated to Youthstart and NOW, and fully supports the principle underlying the Commission's new initiative, Employment-Inclusion.

2.6. The additional resources to be made available to the Adapt programme indicates the importance now attaching to this comparatively new initiative. The Economic and Social Committee endorses the Commission's proposal to add to the resources allocated to this initiative which seeks to assist organizations to adapt to meet the new technologies and the new global economy in which many companies now have to compete.

2.7. In its proposal, the Commission seeks to ensure a degree of flexibility in the assignment of the reserve to permit Member States to concentrate resources around those initiatives yielding the greatest benefit. The Economic and Social Committee acknowledges that flexibility provides Member States with a means of maximising the benefits of the application of Community Initiatives.

2.8. The principle of flexibility in the application of the reserve is provided for explicitly in the Commission's proposals relating to the four Initiatives for industrial reconversion. Assuming that this does not jeopardize the principle of concentration, the Economic and Social Committee acknowledges that this flexibility will allow resources to be applied where the need is greatest. Moreover, this accords well with the principle of subsidiarity.

2.9. The Committee welcomes the emphasis that the Commission places upon continued support being available to promote the development of small and medium-sized enterprises (SMEs). The Committee notes that no further monies are proposed to be allocated specifically to the SME initiative. Consequently it is important that SMEs receive adequate funding within the framework of those initiatives that are receiving additional assistance.

2.10. The Committee notes that no mention is made of extending to 1999 the assistance available under the Community initiative for peace and reconciliation in Northern Ireland and the border counties of Ireland. This initiative is funded only to 1997. The Committee attaches great significance to this initiative and supports its extension to 1999. Whilst the Committee recognizes that only parts of the 'Peace initiative' funding comes from the Community initiative budget, it nevertheless proposes that finances are assigned to ensure the continuation of the initiative to 1999.

2.11. The Community initiative facility is intended to promote innovative approaches to problems common to a number of regions across the European Union. In this sense it operates in a similar manner as the programmes introduced under the provisions of Article 10 of the European Regional Development Fund Regulations. The Committee considers that, for purposes of maximising the impact of the Structural Funds as a whole, it is important that there is some degree of interaction and linkage between Community initiatives and programmes introduced under Article 10 of the ERDF.

3. Conclusion

3.1. As recorded, the Economic and Social Committee supports the Commission proposal for the allocation of the Community initiative reserve. It would, however, reiterate the view that monitoring and assessment of the specific programmes is required. In its previous Opinion, this Committee pointed to a number of specific issues that needed to be addressed in the context of monitoring and appraisal, and would call upon the Commission to report as soon as possible upon the direct impact that the Community initiatives have had.

Done at Brussels, 31 January 1996.

The President

of the Economic and Social Committee

Carlos FERRER

() OJ No C 304, 10. 11. 1993; OJ No C 295, 22. 10. 1994.