ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)618
Vol.1979/0209

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(79)618final
Brussels,12November1979
FOROFFICIALUSEONLY
REQUEST FORAGLOBALLOANONBEHALFOFINVESTMENT ININDUSTRY AND
SERVICEACTIVITIES INTHENORD/PAS-DE-CALAISREGION,PURSUANT TO
ARTICLE56OFTHEECSCTEATY-N°271:SOCIETE DEDEVELOPPEMENT
REGIONAL DUNORDETDUPAS-DE-CALAIS(FRANCE).
(Communication fromtheCommission totheCouncil)
C0M(79)618final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
INTERNAL DOCUMENT
COMMUNICATION TOTHECOUNCIL
Subject:Requestforagloballoanonbehalfofinvestmentinindustryand
serviceactivitiesintheNord/Pas-de-Calaisrégion,pursuantto
Article56oftheECSCTeaty-n°271:SociétédeDéveloppement
RégionalduNordetduPas-de-Calais(France).
I.BASICINFORMATION
Applicant :SociétédeDéveloppement RégionalduNord
etduPas-de-Calais
Variousundertakings
Thecreationandextensionofsmalland
mediumsizeconcerns
Nord/Pas-de-Calais
FF100millionminimum(+17.10MEUA)
FF50million(+8.55million EUA)
256,500EUAperannumforthefirst5years
500jobsminimumareintendedbywayof
priorityforformerECSCworkersinthe
Nord/Pas-de-Calaisregion.
II..CONFORMITY WITHARTICLE56OFTHEECSCTREATY
Nord/Pas-de-Calaisisanoldtradionally industrialregionofhigh
populationdensitywith3,920,000residents on2.2%ofFrenchterri­
tory.Forseveralyearsithasrecordedpersistentdeclineinemployment .
Thistrendistheresultofadaptation problemsexperienced byprevai­
lingindustries ontheonehandandthegeneraleconomicsituationon
theotherhand.
On31March1979,theproportionofunsatisfied jobapplications tototal
workingpopulation was8.6V.intheDepartmentofPas-de-Calaisand
7.7%intheNordDepartment comparedwithanationalFrenchaverageof
6
mmtmmmApplicant :
Finalbeneficiaries :
Project :
Location :
Globalinvestment
Globalloanrequested
Interestrebate
Jobscreated
ionoioddress :RuedelaLoi200,B–1040Brussels-Téléphoné350040-358040–Télégraphie address :«•COMEURBrussels»-
Telex:.COMEURBRU 21877.

Haltedbrieflyin1975,thefallinpersonsemployedinthecoalminesof
Nord/Pas-de-Calaisbasincontinuedatanaveragerythmof4,000jobsayear
asthefollowingfiguresshow:
By1985-1986,coalminingshouldhavevirtuallyceasedinNord/Pas-de-Calais.
Regionalemploymentinthesteelindustryreacheditsmaximumlevelwith
39,400atthestartof1975.Sincethenithasdeclined.Personsemployedwere
33,500on31March1979,whichindicatesafallof6,000jobsinrathermore
than4years.
Theseredundancies occuredmainlyintheSambreandValenciennes areas.
Moreoverrecentdecisionstakenwillcreate5,850redundancies inthe3USIN0R
factoriesoftheValenciennes areafromnowtotheendof1980(Denain,Valen-
ciennesandAnzin).
TheregionofBoulogne-sur-Merhasincurredduringthecurrentyear1,000
redundancies intheferro-manganeseworks oftheAci6riesdeParis-Outreau
(A.P.O.).
Inall,conversionfromcoalminingandsteel,linkedtotherelativeyouth
ofthepopulationandtheexistenceoffemaleunder-employment ,concernsa
largepartoftheregiondirectlyandalmostalltheNord/Pas-de-Calaisregion
indirectlyinparticularbecauseofitseffectonsub-contractors andsuppliers.
Alltheregionalsectorsdirectlyconcerned :intheNord,theDouai,Sambre
andValenciennes areas,andinPas-de-Calais:thedistrictsofB6thune,Sambre
LensandBoulognehavebeenclassified,moreoftenforseveralyearspast,as
areaseligibleforpriorityaidforregionaldevelopment ;thismeasureby
thepublicauthorities hasalreadyfosteredimportantindustrialinvestments .
However,takingredundancies intoaccount,themeansappliedmustbestrengthened
stillfurther,moreespeciallytoassistthedevelopmentorsettlementof
smallandmediumsizeundertakings capableofdiversifying thelocalindustrial
fabricandmakingtheregionaleconomylessvulnerabletochangesineconomic
trends.Totalemployedat31December1965
at31December1975
at31December1978107,679
44,297
32,389

III.THEINTERMEDIARY COMPANY\
TheS.D.R.(RegionalDevelopment Company)ofNord/Pas-de-Calaisisa
regionalorganisation forfinancingtheprivatesector,createdin1956
undertheauspicesofthepublicauthoritiesinconformitywiththe
Decreeof30June1955andthedecreelawof5Octoberof1955regulating
thestatuteandpurposeofRegionalDevelopment Companies.
TheregisteredcapitaloftheSoci§t6deDeveloppement RegionalNord/
Pas-de-CalaisisFF36,335,000;whereasthetotalbalancesheeton
31December1978showedFF1,088,580,257.39 .
Inall,totalfinancingbytheSDRofNord/Pas-de-Calaisin1978was
FF197,000,000 .
TheprincipaldetailedrulesgoverningfinancingbytheSDRare:
Financingfromownfunds
Currently,theSDRhassubscribed FF40,000,000 bywayo'fonehundred
minorityshareholdings .Takingaccountofsharetransfers,ithassome
FF30,000,000committed.
Longtermloans
Theseareloanswithalifeof15yearssupportedbyamutualguarantee
fundof4%.ThecurrentcommitmentissomeFF1,000,000,000 ofwhich
25%areforleasingcontractsbywayofasubsidiaryBatinorest.
Mediumtermloans
TheSDRinvestigates andpartiallyguarantees,togetherwiththeCaisse
NationaledesMarchesdeI'Etat(NationalStatecontracting Fund),
mediumtermloansfinancedbytheBanks.Thecommitmentisrathermore
thanFF200,000,000 .
Linkedactivities
TheSDRhasestablished twoconsultative,Region-Service andCineg;
thesearemanagementconsultants ontheonehandandconsultants for
businessnegotiation ontheotherhand.
IV.THEGLOBALLOAN
ThevolumewhichmightbemadeavailabletotheSociétédeDéveloppement
RégionalduNordetduPas-de-CalaisisFF50,000,000tocreate500jobs.
Thisloanwillbeissuedininstalments andinproportiontothe
subsidiaryloansapproved.Theintermediary Companywillsubmiteach
subsidiaryloantotheCommissionforapproval.

_L-
ThedecisiononsubsidiaryLoanswillbetakeninconformitywiththecriteria
andaimspublishedbytheCommission (O.J.C/178/2of27.7.1977andO.J.C/82/8of
29March1979andinparticularwithregardtothenumberofjobscreatedcapable
ofre-employing ECSCworkersasaconsequenceoftheloanandfixedinvestment
capital.
Therateofinterestappliedtoeachinstalmentwillbeapplied,withinterest
rebate,tosubsidiaryloans.
Thisgloballoan,whichisvalidfor3years,willcontributetomeetingthe
financingrequirements ofsmallandmediumsizeconcerns,whichfrequently
finddifficultyinborrowingonthemoneymarketthanlargerconcernsand
whichusuallyinvestlessperjobcreatedthanlargerconcerns.
TheSoci6t6deDeveloppement RegionalwillprovidetheCommissionwithasix
monthlyreportontheusemadeofthisfacility;itwillalsoreportannually
onthere-employment offormerECSCworkersinconcernsfinancedbywayof
thisgloballoan.
V.INFLUENCE OFTHELOANONTHERE-EMPLOYMENT OFWORKERS
Itisplannedthatindividualprojectsbenefitting fromaidwillcreate500
newjobsminimumintendedforformerECSCworkers.Itisimportanttoencourage
investmentsoutsideECSCsectorsinNord/Pas-de-Calaisinparticularthrough
smallandmediumsizeconcerns.Shouldthepresentdecisionproveinsufficient,
furtherinstalments couldbeenvisaged.
VI.CONCLUSIONS
(a)TheCommissionconsidersthattherequestcomplieswithArticle56(2)a)of
theECSCTeaty.Inconséquence,ithasauthorisedthegranttotheSociété
deDéveloppement RégionalduNordetduPas-de-Calaisofagloballoan
ofFF50million(+8.55MEUA)orequivalent amount.Interestrebateof
256,500EUAperannumwillbegrantedforthefirstfiveyearsfollowing
payment/paymentsoftheloan.
(b)TheCommissioninvitestheCounciltoagreewiththisdecisionandwith
itsextensionbyanidenticalamountifnecessaryinthenearfuture.