NoC19/118 OfficialJournaloftheEuropeanCommunities 25.1.93
sameappliestotheactivitiesoftheICFTU,theWorld
Confederation ofLabour(WCL),theTradeUnion
AdvisoryCommittee (TUAC)andtheEuropeanTrade
UnionConfederation andtheiraffiliatednational
organizations .Theemployers'organizations ,both
international [IOE,BusinessandIndustryAdvisory
CommitteetoOECD(BIAC),UnionofIndustriesof
theEuropeanCommunity (UNICE)andUEAPME ]and
national,alsoexchangeinformationtoassistthenew
employers'organizations intheCEEC.TheCommittee
takestheviewthatthesocialdimensionmustbean
integralpartoftheassociationagreements,whichshouldspecificallyrefertothedevelopmentofindustrial
relationsasanessentialcomplementtothemarket
economy,underthesubjectheadingsofparagraph4.5.
4.6.1.InthiscontexttheCommitteestressesitssup­
portfortherequestmadebytheEuropeanTradeUnion
Confederation (ETUC)totheEuropeanParliamentfor
theinsertionofanewbudgetheadingunderChapter
4000forthepromotionofthesocialdialogueinthe
CEEC.ThisappropriationofECU500,000shouldbe
jointlymanagedbytheEuropeansocio-economic inter­
estgroups.
DoneatBrussels,25November1992.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN
OpinionontheCommunityStructuralPolicies—AssessmentandOutlook
(93/C19/30
On28April1992,theBureauoftheEconomicandSocialCommittee,actingunderthethird
paragraphofArticle20ofitsRulesofProcedure,decidedtodrawupanOpiniononthe
CommunityStructuralPolicies—AssessmentandOutlook
TheSectionforRegionalDevelopmentandTownandCountryPlanning,whichwasrespon­
sibleforpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon13October
1992.TheRapporteurwasMrChristie.
Atits301stPlenarySession(meetingof24November1992),theEconomicandSocial
CommitteeadoptedthefollowingOpinionunanimously .
1.Introduction 1.2.TheCommissionCommunication hasbeenpre­
sentedasanintegralpartoftheDelorsIIproposalsfor
thedevelopmentoftheCommunity'sFinancesoverthe
nextfiveyears,onwhichtheCommitteehaspassedan
Opinion(2).1.1.InitsCommunication theCommissionpresents
a'mid-term'assessmentoftheimpactthatCommunity
structuralpolicieshavehadovertheperiodsincetheir
reformin1989.Assuchthisdocumentiscomplemen­
tarytotheAnnualReportoftheImplementation of
theReformoftheStructuralFunds(1990)—COM(91)
400—onwhichtheCommitteerecentlypassedanOpin­
ion(1).ThepresentCommunication focusesindetail
ontheresultswhichthereformedstructuralfundshave
hadintheregionsinreceiptofassistanceoverthe
periodsince1989.1.3.TheCommitteedecidedtodrawupanAdditional
Opinioninordertogiveitsviewsontheguidelinesfor
futurereform.
OJNoC106,27.4.1992,p.20. (2)OJNoC169,6.7.1992,p.34.

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/119
2.BasicFactsontheframeworkofafuturereformof
thefundsbetween1989and1993Communityassistanceshould
leadtothecreationofsome500,000newjobs.
2.1.ThefollowingpointsmadeintheCommuni­
cationsoftheCommissionarepertinentastheyconsti­
tutetheframeworkofafuturereformofthefunds.
2.2.DisparitiesandStructuralHandicaps2.3.2.InthecaseoftheObjective2regionsthe
Commissionhasnotbeenabletoprovideanyquantitat­
ivedetailsontheimpactofthestructuralfunds,
althoughaleverageeffectattributabletotheimpactof
thefundscanbedetected.Communityfundingismainly
directedtowardsthecreationofjobsandsupportfor
newproductiveinvestmentratherthantowardsinfra­
structurewhichisgenerallywelldevelopedinthese
areas.TheCommissionalsoreportsfavourablyonthe
spreadoftechnologicalinnovationsinsomeObjective
2regions,thisbeingparticularlysignificantfromthe
perspectiveofindustrialrestructuringandimproving
thepotentialforindigenouseconomicgrowth.2.2.1.Despitethefavourablegrowthclimatethatthe
Communityenjoyedduringthelate1980s,regional
disparitiesimprovedonlyslightly.In1989,thelastyear
forwhichdatahasbeenpresentedandtheyearthat
thereformswereimplemented ,thetop10regionshad
anincomeperheadmorethanthreetimeshigherthan
thebottom10regions.
2.3.3.AlthoughObjectives3and4haveassisted
long-termandyoungunemployedpersons,national
ratherthanCommunitymeasuresarethemaininstru­
menthere.2.2.2.Regionaldisparitiesinunemployment were
morepronouncedthanregionalincomedisparities,
althoughoncemoretheimprovedeconomicconditions
generallyafter1986reducedregionalunemployment
disparitiessomewhat.Particularlysignificantwasthe
factthattheincidenceofunemployment wasmostacute
amongyoungpeople,especiallyinthelaggingregions
whereanunemployment rateof32.3%wasrecorded
inApril1990.Alsosignificantintermsoftheprospects
forreducingunemployment wasthefactthathalfof
thetotalunemployedhadbeenoutofworkforlonger
thanoneyearmakingitallthemoredifficulttore­
absorbthemintotheactivelabourforce.2.3.4.TheCommissionreportsthatmeasuresunder­
takenunderObjective5(a)'havecontributedtoretain­
ingpopulationinthecountryside,protectingthe
environmentandtoruraldevelopment .Assistancehas
largelybeendirectedtofarmerswithlowincomesand
tosmallfarms.
2.2.3.Regionalincomedisparitiesarecloselylinked
todisparitiesinfactorsdeterminingregionalcompeti­
tiveness—economicinfrastructure (transport,telecom­
munications ,energy,etc.),capitalstockandresearch
andtechnologicaldevelopmentcapacity.Regionaldis­
paritiesinincomeandemploymentfollowasimilar
patterntoregionaldisparitiesinthesethreeelements
ofcompetitiveness .2.3.5.Asimplementation ofObjective5(b)didnot
startuntil1990itistooearlytoanalyzeitssocio­
economicimpact,althoughinitialresultssuggestthat
themeasuresareinlinewithneedsandwillcontribute
todevelopingthepotentialoftheruralareas.
2.3.ImpactofNationalandCommunityPolicies 2.3.6.Noassessmenthasyetbeencarriedoutonthe
measuresforfisheriesnegotiatedintheCommunity
SupportFrameworks (CSFs).
2.3.1.TheCommissionreportstheimpactofthe
StructuralFundsasfavourableandcontributingtothe
aimofgreatereconomicandsocialcohesion.Itis
estimatedthatthegreatestbenefitisbeingfeltinthose
countriesinreceiptofassistanceunderObjective1.
Between1989and1993theCommission estimatesthat
economicgrowthwillbehigherthanfortheCom­
munityasawholeandthatthiscanbeattributedto
thestructuralfunds.Thecontributiontofastergrowth
fromtheStructuralFundsisexpectedtobelargestin
Portugal(0.7%peryear)andGreece(0.5%)whilefor
theotherObjective1countriesandregionsitshould
beabout0.3%peryear.TheCommissionclaimsthat2.3.7.Theimplementation ofthereformedStructur­
alFundsishavingapositiveimpactontheCommunity
asawhole.Itisestimatedthat,ofeveryhundredECUs
investedinPortugal,ECU46willbereturnedtoits
Communitypartnersintheformofimports.Whenthis
istakeninconjunctionwithotherdevelopments—for
exampleliberalizingpublicprocurementandothermar­
ket-openingpolicies—thentheCommunityasawhole
willgainsignificantlyfromtheincreasedeconomic
activitycreatedbystructuralfundassistancemeasures.

NoC19/120 OfficialJournaloftheEuropeanCommunities 25.1.93
2.4.Implementation ofStructuralPolicies highershareofthehightechnology,highvalue-added
activities .
2.4.1.TheCommissionnotesthatalthoughthe
objectiveofintegrationhasbeenachievedinsomecases,
therequiredsynergyhasnotbeendeliveredduetothe
prevailingdistributionofcompetencesamongboththe
Communitydepartmentsandthenationalauthorities,
andbecauseofthetimeconstraintsimposedondeciding
onassistance .2.5.1.1.Tobeeffectiveassistanceshouldbemore
flexible.Partnershipshouldbestrengthenedandpro­
ceduresforimplementingpolicysimplified.TheCom­
missionrecommendsextendingthescopeofCom­
munityassistance,introducinggreaterdifferentiation in
ratesofassistanceandgivingagreaterroletoCom­
munityinitiatives.
2.4.2.TheloanactivitiesofboththeEuropean
InvestmentBank(EIB)andtheEuropeanCoalandSteel
Community (ECSC)todatehavenotbeensufficiently
integratedwiththereformedfunds.Formaximum
impactitisnecessarythatallCommunitygrantand
loaninstrumentsobservetheprinciplesofconcen­
tration,partnershipandprogramming .2.5.2.TheCommissionpresentsdatareflectingthe
scaleoftheproblemconfrontingthelaggingregions.
Toachieveanimprovementof20percentagepointsso
thataregion'spercapitaGrossDomesticProduct
(GDP)canrisefrom50%oftheCommunityaverage
to70%willrequireadifferenceinannualgrowthrates
of1.75%over20yearsor2.25%over15years—equiv­
alentto5.25%percapitagrowthover15yearsor
4.75%percapitaover20years. 2.4.3.Partnershiphasbeenanimportantinnovation
inthereformedstructuralpolicyandhasfacilitateda
highdegreeofdecentralization oftheresponsibility
forimplementingCommunityassistance.However,the
involvementofthesocialpartnersintheprogramming
andmonitoringprocesshasoftenbeenunsatisfactory .2.5.3.Equalityofopportunityisfarfrombeingreali­
zed.Thetechnologicalandcapitalendowmentsinthe
laggingregionsdonotenabletheseregionstocompete
withthericherregions.TheObjective1regionsrequire:
2.4.4.Theproceduresforimplementing structurat
assistancearestilltoocomplicated .
—greaterinvestmentintransportinfrastructure ;
—greaterinvestmentintelecommunications ;2.4.5.Themaximumlevelofassistancepermitted
forObjective1underthereformedfunds—75%of
thetotalcosts—hasnotbeenreachedandthishas
contributedtodifficultiesencountered incertainMem­
berStatesinensuringthenationalco-financingofCom­
munityintervention .Asimilarpatterncanbeseen
withrespecttootherObjectiveswhereaverageratesof
assistancearebelowthemaximumpermittedbythe
regulation .—greaterinvestmentinenergyinfrastructure .
2.5.4.Althoughthelaggingregionsinparticularwill
findtheadjustmenttoachieveconvergenceaheadof
monetaryunionapainfulprocess,thiswillimprovethe
macro-economic contextandencouragegreaterecon­
omicgrowthintheseregions.Moreovertheprocessof
adjustmentwillbehandicapped bythelossofthe
exchangerateasaninstrumentofeconomicpolicy.It
willthereforebenecessaryformarketsintheseregions
tobecomemoreflexibletoassisttheadjustmentpro­
cess.2.5.TheCommissionsOrientationforReform
2.5.1.TheCommissionrecognizesthatcompletion
oftheinternalmarketisboundtoincreasethecompeti­
tivepressuresonthelaggingregions.Consequently
Communityassistanceshouldcontinuetobeconcen­
tratedinthoseareasalthoughadjustmentswillbe
requiredtofacilitatestructuralindustrialchange,to
improvecompetitiveness ,totackletheproblemsof
migrationandtorespondtotheneedsofruraldevelop­
ment.Ifthelaggingregionsaretocatchupwiththe
richerregionstheywillneedtomoveawayfromlow
wage,lowtechnologyindustriesandappropriatea2.5.5.Thegradualharmonization ofsocialand
environmental policiesthroughouttheCommunitywill
impactonthelaggingregionstotheextentthatpartof
theircompetitiveadvantagetodatehasderivedfrom
lowerstandardsinbothrespects.Theseregionswill
needtoraiseproductivitysignificantlytocompensate
forhighersocialandenvironmental standards.

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/121
2.5.6.Astradeliberalizationproceedsfurtherwith
respecttoEasternEurope,therestoftheMediterranean
areaandthethirdworldregionsintheCommunity
dependentuponlowwageindustriesforemployment
andincomewillexperienceanintensification incompe­
tition.2.5.8.TheCommissiondrawsattentiontotheneed
toachievebothconvergenceandcohesion.Convergence
isnecessarytoestablishaframeworkforsustainable
economicgrowthfortheCommunityasawhole.This
willassistthedevelopmental prospectsofthelagging
regions.Similarly,cohesionwillaccelerateconvergence
asitwillpromotethetypeofstructuralchangesthat
arerequiredifthelaggingregionsaretoeffectthe
transitiontoanindigenouseconomicbasesufficiently
dynamictodeliverhigherratesofeconomicgrowth.
TheproposedCohesionFundwillbecrucialinthis
respect.2.5.7.Whilsttheprinciplesunderpinningthe1988
reformsarenottobealtered,theCommissiondoesset
outanumberofproposalsforadjustingtheStructural
Funds—inallcasesagreaterdegreeofflexibilityin
implementation willberequired—giventhepresentand
futurecontextasdescribed :
3.GeneralObservations
—Agreaterandmoresustainedefforttofurtherthe
developmentoftheObjective1regions.
3.1.ParticipationandSubsidiarity—Greaterdiscretioninselectingregionseligiblefor
Objective2assistancebyincludingotherfac­
tors—forexampletheanticipatedimpactofindus­
trialchangeanddevelopmentinsystemsofpro­
duction—alongsideconventionalindicators (unem­
ploymentandindustrialemployment )intheselec­
tionofeligibleregions.3.1.1.WhentheoperatinginstructionsfortheStruc­
turalFundswerebeingpreparedfollowingrestructur­
ing,akeyobjectivewastoobtaingreaterparticipation
atlocalandregionallevels.Thisobjectivehasonly
partlybeenachieved.
—ChangesinObjectives3and4totakeaccountof
therevisedArticle123withincreasedemphasison
transformingtrainingsystemsandassistingworkers
toadapttoindustrialchange.
—Concentration oftheCommunity'sstructural
measuresforruraldevelopmenttoconcentrateon
priorities—diversifyingtheeconomicbaseofrural
communities ,increasedassistanceunderObjective
5(b),assistancetoObjective5(a)regionstobe
implementedthroughprogrammingandpartner­
shipandmeasurestoencouragelocalruraldevelop­
menttobestrengthened .3.1.2.TheCommitteesuggeststhatagreatdealmore
attentionneedstobegiventothematterofdelivering
thestructuralpolicies.TheCommitteewholeheartedly
endorsestheCommission'srecommendation that
regionalandlocalauthoritiesaregivenagreaterrole
inthepreparationofplans,andthatthesocialpartners
aremorecloselyinvolvedintheprogramming pro­
cedures.Oneofthemainimprovements claimedfor
the1988reformswasthatwhileoverallprioritiesfor
theStructuralFundsaresetattheCommunitylevel,
regionaldifferencesareaccommodated throughthe
implementation procedures .Thereisevidencethatthis
potentialadvantageisbeingunderminedbyalackof
involvementof'localpartners'.Ifitistobesuccessful,
localeconomicdevelopmentreliesconsiderablyupon
accurateinformationconcerningtheindigenousdevel­
opmentpotentialofaregionwhichinvolvesthetype
ofdetailedlocalknowledgethatisunlikelytobepresent
atthenationallevel.Moreover,policymustberela­
tivelyflexibleinorderthatadjustmentscanspeedilybe
madeinresponsetounforeseencontingencies .Thistoo
issuggestiveofahighdegreeoflocalautonomyover
theformulationandapplicationofpolicy.Thesocial
partnersarecrucialinthisregardastheyarelikelyto
haveanunrivalledunderstanding oflocaleconomic
needsanddevelopmentstrategies.—Consideration tobegiventoaddingasixthObjec­
tivetothestructuralpoliciesrelatingtoregions
dependentonfisheries.
—Changingtheexistingrulesandprocedureson
implementingtheStructuralFundsto(i)strengthen
partnership,(ii)simplifydecision-making ,(iii)
reinforceassessmentandbroadenthescopeofCom­
munityassistance,(iv)provideforgreaterdifferen­
tiationinratesofCommunityassistanceand,(v)a
greaterroletobeplayedbyCommunityinitiatives.
TheCommissiondocumentidentifiesanumberof
measuresthatcanbetakentoachievethesefive
aims.3.1.3.TheCommitteebelievesthatnewwayswhere­
byrepresentatives fromthelocaleconomyareincluded

NoC19/122 OfficialJournaloftheEuropeanCommunities 25.1.93
3.2.3.TheCommitteerecommendsthatthefivenew
GermanLanderareincludedinthecalculationsfor
determiningtheaverageCommunityGDP.However,
includingtheseLanderwilllowertheaverageofper
capitaCommunityGDPwhichisonemeasureused
todeterminetheeligibilityforCommunityassistance
underthereformedStructuralFunds.Consequently ,
theCommitteerecommendsthatregionspresentlyin
receiptofCommunityfundsduetoapercapitaGDP
oflessthan75%oftheCommunityaverageshouldnot
losethisassistanceiftherelativeimprovement inper
capitaGDPistheresultsolelyofthenewLander
statisticallyloweringtheCommunityaverage.intheproceduresgoverningtheimplementation ofthe
Community'sstructuralpoliciesmustbeexplored.
Underthepresentregulations,thisdependsentirely
uponnationalpractice.Theregulationsshouldbe
amendedinrespectoftheformulationofoperational
programmessuchthatregionalandlocalauthorities,
includingthesocialpartners,mustberepresentedin
theformulationofoperationalprogrammes .Forexam­
pletheyshouldbegivenarighttobeformallyconsulted
onallproposalsatthesametimeasnationalgovern­
mentsandcouldconcluderegionalagreementsincon­
nectionwiththeimplementation ofCSFs.TheCom­
mitteeconsidersthatthisistheonlymeansofensuring
thattheprincipleofsubsidiarityisfullyrespectedwhile
enhancingtheprospectsofsuccessonthepartofthe
structuralpolicies.
3.1.4.Regionalagreementsofthesocialpartnersto
back-upCSFswouldbeadesirablewaytogivethe
socialpartnersresponsibility intheimplementation of
theFunds.TheCommitteethereforewelcomesthe
Commission'sproposalthatresourcesbedevotedto
assistinglocalinterestsintheirpreparationofeconomic
developmentplans.3.2.4.TheCommitteeholdsthatastrictapplication
ofthecriteriatoselecttheObjective1regionsmay
provecounter-productive overthelongerperiod.
Regionsthathaveenjoyedanincreaseinpercapita
incomestotakethemabove75%oftheECaverage
overthepastfiveyearsarenotnecessarilyableto
sustainthispositionunaided.Moreover,justasthe
regulationsshouldincorporateadegreeofflexibilityto
maintaintheeconomicperformanceinthoseregions
graduatingoutofObjective1status,theCommittee
wouldrecommendthatsimilarflexibilityisrequiredto
reversetheeconomicconditionsinthoseregionsthat
aresufferingareductioninpercapitaGDPtowards
the75%threshold .TheCommitteerecommendsthat
anintermediate bandofbetween75%and80%of
CommunityaveragepercapitaGDPisestablished
withintheframeworkoftheStructuralFundssuchthat
regionswithpercapitaGDPwithin75-80%oftheEC
average,andwhichrecordanaboveaveragelevelof
unemployment ,willbeeligibleforassistance .3.1.5.TheCommitteeendorsestheCommission's
proposalsforsimplifyingtheprocess.TheCommittee
is,however,concernedthattheproposalscouldresult
intheinefficientuseofresourcesanditthereforesug­
geststhattheEuropeanCourtofAuditors,working
togetherwiththenationalauditoffices,shouldhelpto
ensureeffectivescrutinyofthewayinwhichthe
resourcesoftheStructuralFundareused.
3.2.5.TheCommitteereiteratesitsgeneralsupport
forthefinancialprovisionsonStructuralFundscon­
tainedintheDelorsIIpackageastheserefertothe
volumeofassistancetobeallocatedtoObjective1
regions.3.2.Objective1
3.3.Objective23.2.1.TheCommitteetakesthisopportunityto
stresstheimportancefortheObjective1regionsof
achievingself-perpetuating economicgrowth.Tothis
end,thestructuralprogrammesmustcontinuetosup­
portthedeterminantsofeconomicgrowthinthese
areas—enhancingtheskillsofthelocallabourforce,
improvingtheinfrastructure inwhatareoftenhighly
peripheralregionsoftheCommunity ,assistingwith
theidentificationandexploitationofopportunitiesfor
localproductioninhighvalue-addedactivities,and
promotingpartnershipatalllevels.3.3.1.TheCommitteewelcomestheCommission's
proposalthatotherfactorsshouldbetakenintoaccount
whendeterminingtheselectionofareaseligiblefor
assistanceunderObjective2.Further,theanticipated
impactofindustrialchangealongwithdevelopment
insystemsofproductionarebothsensible'forward­
looking'supplementary indicators.Itmakesagreat
dealofsenseforCommunitystructuralpolicytobe
abletorespondtoemergingproblemsratherthancom­
ingintoeffectonlyaftersometimesintractableindus­
trialproblemshavearisen.However,theconcentration
ofresourcesandcontinuityintheimplementation of
policiesinthepresentlydesignatedObjective2regions
mustremainthepriorityofCommunitystructural
policy.3.2.2.TheCommissionmuststrivetodevisepolicies
thatproperlytakeaccountofthegeographicalperiph­
eralityofmanyoftheCommunity'sleastdeveloped
regions,especiallyasitislikelythatanincreasingshare
ofeconomicactivitywillconcentratearoundthecore
oftheCommunity .

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/123
3.5.2.TheCommitteerecommendsthatconsider­
ationisgiventoextendingthegeographiccoverageof
Objective5(b)toensurethatallperipheralruralareas
arecoveredbytheStructuralFundsasprovidedfor
underArticle11oftheFrameworkRegulation .3.3.2.TheCommitteeisconcernedthatthepresent
two-yearplanningperiodforCSF'sistooshortfor
satisfactoryimplementation ofdevelopmentplanning
andrecommendsthatafive-yearprogramminghorizon
beadoptedunderObjective2oftheStructuralFunds.
Thiswouldimprovetheplanningandimplementation
ofprogrammes,andwouldbringtheprogrammesinto
alignmentwiththoseinObjectives1and5(b)regions.
3.3.3.TheCommitteere-statesitssupportforthe
increaseinfinancialresourcesallocatedtoObjective2
beingproportionately thesameasthatwhichtheDelors
IIfinancialperspectivesuggestsshouldbeassigned
underObjective1,excludingtheproposedCohesion
Fund.3.5.3.Inimplementingruraldevelopmentpolicy
underObjective5(b),theCommissionshouldconsider
waysofensuringthatlocalrepresentation iseffectivein
formulatingprogrammes .Oneofthegreatestproblems
confrontingeconomicdevelopmentinruralareasis
selectiveout-migration .Policyshouldbegearedto
stemmingtheoutflowofthehighlyskilledandyounger
workforcefromtheseareasasthiswillleavetheregion
muchlessabletoachieveself-perpetuating economic
growth.Necessarilythiswillrequirethatagreaterrole
isgiventolocalcommunitiesintheprocessofeconomic
planning.
3.4.Objectives3and4
3.5.4.Transportinfrastructure remainsoneofthe
singlemostimportantbarrierstoeconomicdevelop­
mentintheruralareasoftheCommunity .Resources
mustcontinuetobemadeavailabletoimprovingroad,
rail,airandsealinksbetweentheObjective5(b)areas
andthecoreoftheCommunity .3.4.1.TheCommitteesupportstheobjectivetobet­
terassistworkersinadaptingtoindustrialchangeand
developments inproductionsystemsbymeansof
vocationaltrainingandretraining.Humancapitalplays
akeypartindeterminingthecompetitiveness ofCom­
munityindustryinglobalmarkets.Itisvitalthat
increasedresourcesaredevotedtomeasuresthat
improveandenhancetheskillandthegeneralquality
ofthelabourforceinMemberStates.3.6.Objective6
3.4.2.TheCommitteeexpectsthisaspectofthe
socialdialoguetoreceivegreaterattentiononthesec­
torallevelandrecommendsthattrainingagreements,
especiallyonthesectorallevel,takeintoaccountthe
regionaldimension .3.6.1.TheCommitteebelievesthatthecaseforintro­
ducingasixthObjectiveregiontothestructuralpolicies
coveringstructuralmeasuresrelatingtothefisheries
sectorhasnotbeensubstantiated .Althoughrecognizing
thesevereproblemsconfrontingthelocalitiesassociated
withtheCommunity'sfishingindustry,theCommittee
isconcernedlesttheadditionofanotherObjective
reducestheresourcespresentlyavailabletotheother
Objectiveregions.Instead,theproblemsofthissector
maybemoreadequatelyaddressedthroughaCom­
munity'owninitiative'.3.4.3.Sincetheproblemoflong-termunemployment
isonethathasbecomeworseoverthepastdecade,it
isimportantthatmeasurestocombatlong-termunem­
ploymentcontinuetoattractsignificantCommunity
fundingtocomplementnationalmeasures,although
theCommitteerecognizesthatthelattermustalways
taketheleadingroleinthispolicyarea.
4.SpecificComments
3.5.Objective5(b)
4.1.General
3.5.1.TheCommitteeagreesthatagreatereffortis
neededtodiversifytheeconomyoftheruralareas.But
considerablesensitivityisrequiredinthisrespect.Rural
economiescanonlysurviveiftheycanachieveareason­
ablebalancebetweenindustry,agricultureandtourism.
Ruralareasdifferintermsofculturalvalues,social
conventionsanddevelopmental objectives.Policywith
respecttotheseareas,aselsewhere,mustreflectlocal
objectivesandcapabilities .4.1.1.TheCommitteeendorsesthepropositionby
theCommissionthattheobjectivesdefinedinthe1988
reformarevalidandthatthesefundsshouldcontinue
tooperatebeyond1994verymuchastheyhavedoneso
todate.Further,theapparentsuccessofthestructural
policiespointstothedesirabilityofincreasingthefund­
ingavailableoverthenextfiveyearsinlinewiththe
DelorsIIproposal.Thechangesthatarelikelytoover­

NoC19/124 OfficialJournaloftheEuropeanCommunities 25.1.93
cooperationandcompromisebetweeneconomicpoli­
ciesconductedinindividualMemberStatesthanis
presentlythecase.Realeconomicconvergence,andso
progresstomonetaryunion,willbeeasiertoachieve
totheextentthattheCommunitycollectivelyrenews
itseconomicstrategygearedtogeneratingeconomic
growthandemployment .taketheCommunitywithinthistimeperiodaresetto
exacerbateratherthanreducepresentregionalecon­
omicdisparities.Unlessthefundsarestrengthenedthere
isariskthatsomeoftherealgainsachievedtodate
willbelostandthelimitedprogressmadetowards
economicandsocialcohesionwillbereversed.The
Committeere-statesitsgeneralopinionthattheCom­
munityHeadsofStateandGovernmentshouldaccept
thefinancialprovisionsoftheDelorsIIpackagefor
StructuralFundsasinitiallyproposedwithinthepro­
posedtimelimit.
4.3.ConvergenceandCohesion
4.2.Macroeconomic Policy
4.3.1.Considerableimportancehasbeengivento
achieving'convergence'withinthecontextofmoving
toeconomicandmonetaryuniononthepartofthe
laggingregions.TheCommitteesupportstheviewthat
itwouldnotbeacceptableforconvergenceinnarrow
fiscalorbudgetarytermsinthelaggingregionstobe
achievedatthecostofreducingthesupplyofthose
publicgoodsnecessaryfordevelopmentwithwhich
theyarepresentlypoorlyendowedasthiswouldmake
thedevelopmenteffortallthemoredifficult.4.2.1.TheCommitteeisconcernedthattheCom­
missiongivesinsufficientattentiontothepossible
consequences foreconomicandsocialcohesionthat
willresultfromtheintroductionofeconomicpolicies
gearedtoachievingconvergenceinsomeCommunity
countries,especiallythepoorerMemberStatesand
thosewithahighlevelofpublicdebt.TheCommittee
regretsthattheCommissionhassofarnotundertaken
anassessmentofallCommunitypolicies,intermsof
theireffectoncohesionwithintheCommunity ,asthe
Committeehadcalledfor(1).TheCommitteeurgesthat
insubsequentreviewsoftheimpactofthestructural
policies,andespeciallyinrelationtotheProtocolon
EconomicandSocialCohesionagreedinMaastricht,
theCommissionincorporatesadetailedcommentaryon
theconsequencesfortheObjectiveregionsofchangesin
otheraspectsofCommunitypolicy.
4.2.2.TheCommissionshouldbemoreforthcoming
withitsviewsconcerningtheCommunity'smacro­
economicenvironment .Theeconomicandsocialpros­
pectsfortheObjectiveregionswouldbegreatly
enhancediftheCommunitywastoenteraperiodof
sustainedeconomicgrowth.Considerableemphasishas
beengiventotheimportanceforCommunitystructural
policiestocreateconditionsinwhichtheObjective
regionsenjoyan'equalityofopportunity'withthemore
developedregionsintermsofeconomicdevelopment
potential.HoweverpotentialintheObjectiveregions
willremainunrealisedinaclimateofmodesteconomic
activity.Ifinvestmentistobeattractedtotheless
prosperousregions,orifindigenouseconomicdevelop­
mentistooccur,abuoyantmacroeconomic environ­
mentthroughouttheCommunityisaprerequisite .4.3.2.TheCommitteeisfirmlyconvincedthaton
thebasisoffixedexchangerates,theensuingproblems
cannotandmustnotbesolvedviaaspecificlowwages
policy.Comparatively lowwagesandsalariesinthe
poorerregionstendtoattractonlylabourintensive
industriesandservicesaslongastheskillsofthe
workforceremainlow.Consequently lowwage
employmentcouldsubstituteforunemployment but
willnotnecessarilyachieveasignificantlongterm
narrowinginthegapsbetweentheCommunity'srich
andpoorregions.Self-sustaining growthinthelagging
regionswillonlybeachievedifitispossibletoattract
areasonablevolumeofhighvalue-addedindustriesand
services.Thisconclusionisreinforcedtotheextentthat
high-technology ,highvalue-addedindustryclusters
aroundtheCommunity'scoreregions[Cf.COM(92)
84.111.2.Economicandmonetaryunion].
4.4.Infrastructure
4.2.3.TherecentturbulenceintheCommunity's
currencymarketssuggeststhatagreaterrealeconomic
convergenceisessentialifprogresstomonetaryunion
istobemaintained .Thisrequiresacloserdegreeof4.4.1.Presentlytheoverwhelming shareoftheCom­
munity'sstructuralpoliciesisbeingdevotedtoinfras­
tructuralprogrammes .TheCommitteewouldstress
thatthethrustofregionalassistanceinthemostback­
wardpartsoftheCommunityshouldcontinuetobe
ondevelopingtheinfrastructure asthisisthekeythat
willunlockeconomicdevelopmentinmanyperipheral
regions.Theimpactofimprovements intransportinfra­
structureisextremelyimportantaspoorinfrastructure
remainsasignificantbarriertoprivateinvestment. OJNoC98,21.4.1992,p.50.

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/125
4.4.2.TheCommitteerecallsitsdetailedrecommen­
dationsconcerningtherequirementsforsupportframe­
workswhichallowforacomplementary development
ofhumanresources,infrastructureandprivateinvest­
mentsinagriculture,industryandtheservicesector,
andtheimportantrolewhichthetrans-European net­
workswillplayinthiscontext(1).
4.5.Modulation
4.5.1.TheCommitteeendorsestheCommissionpro­
posalthatCommunityratesofassistanceshouldbe
adjustedtoreflectmorecloselythefinancingcapabili­
tiesoftheMemberStateinquestion.Butthisshould
beachievedbyincreasingtheresourcesdevotedtothe
structuralpoliciesandnotbyconcentratingtoaneven
greaterdegreetheresourcesavailableatpresentor
undertheproposedDelorsIIpackage.
4.6.OwnInitiatives
4.6.1.TheCommitteehasalreadyinprinciple
expresseditssupportforanincreaseintheresources
availableforCommunityinitiatives(2).Itfeelshowever
thattheCommissionhas—asofyet—failedtopresent
sufficientdetailstoexplainfullytheproposalthat15%
oftheresourcesallocatedtotheStructuralFundsshould
beearmarkedforCommunityinitiatives.Suchasignifi­
cantdeparturefrompresentpracticewarrantsfurther
details,particularlyinthelightoftheCommission's
observationselsewherethattheapplicationsforassist­
anceunderthepresentarrangementsgreatlyexceedthe
financialcapacityoftheStructuralFunds,andthatan
increaseintherateofassistanceisrequired.4.6.2.TheCommitteeendorsestheproposalto
streamlinetheCommunity's'own-initiative 'pro­
gramme,inordertoincreasetheresourcesavailablefor
individualinitiatives.Itisrightlyacceptedthatthesheer
numberofprogrammesthathavedevelopedunderthe
'own-initiative 'umbrellarequiresthatbothapplicants
andtheCommissionspendconsiderabletimepresenting
andevaluatingproposals,butthisshouldbesetagainst
theadvantagesthataccruefromthepresentarrange­
mentswherebyapplicantscanselectfromthevariety
ofprogrammesavailablethatcombinationthatmost
adequatelyreflectstheirparticularneeds.Asecond
advantageofthepresentregimeisthattheCommission
can'takethelead'inrespondingtoaspecificproblem
andprovidetheimpetusforMemberStatestofollow
suit.AriskattachedtotheCommission'sproposalis
thatitcouldforceawedgebetweenwhatisneeded
inparticularareasoftheCommunityandwhatthe
Commission isabletorespondtowithinthemore
restrictiveframeworkthatastreamlined 'own-initiat­
ive'programmewouldimply.
4.7.RatesofAssistance
4.7.1.TheCommissionshouldconsideraspartof
thepresentreviewthepossibilityofraisingthe
maximumrateofassistanceinboththeObjective1
andObjective2regions[cf.COM(92)84—II.4.5].
4.8.TheCommitteecallsupontheCouncilandin
particularthePresidencytourgentlyaddressthe
implementation oftheoverallDelorsIIpackage(3).
(1)OJNoC14,20.1.1992.
(2)OJNoC98,21.4.1992. (3)OJNoG169,6.7.1992,p.34.
DoneatBrussels,24November1992.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN