No C 191/52 Official Journal of the European Communities 22. 7. 91 
Opinion on the proposal for a Council Decision setting up a programme of options specific 
to the remote and insular nature of Madeira and the Azores (Poseima) (J) 
(91/C 191/19) 
On 11 March 1991, the Council decided to consult the Economic and Social Committee, 
under Article 198 of the Treaty establishing the European Economic Community, on the 
abovementioned proposal. 
The Committee decided to appoint Mr Bento Goncalves as Rapporteur-General with the 
task of preparing its work on the subject. 
At its 287th plenary session (meeting of 30 May 1991), the Economic and Social Committee 
adopted the following Opinion unanimously. 
1. Introduction 2. General comments 
2.1. General aspects 
1.1. The draft Council Decision aims to set up a 
programme comprising a series of multi-sectoral initiat­
ives lasting several years in particularly sensitive areas 
such as agriculture, fisheries, energy, transport, tax­
ation, environment, social matters and demography. 
The island location of the regions concerned and their 
small size and remoteness from mainland Europe war­
rant adoption of this programme, as does the principle 
of Community solidarity. 
1.2. The thinking behind Poseima is based on the 
Community's aim to help remoter regions by solving 
their particular problems and creating conditions 
enabling them to benefit from the single market. 
1.3. The Poseidom programme^), adopted by the 
Council in December 1989 and on which the ESC issued 
a broadly favourable Opinion (3), was the first concrete 
measure taken in pursuit of the overall objective of 
supporting the remoter Community regions. 
1.4. Poseima includes the principal measures rec­
ommended by the ESC in its own-initiative Opinion on 
disadvantaged island regions, drawn up by the Section 
for Regional Development in the wake of its Infor­
mation Report on the same subject and adopted unani­
mously by the 247th plenary session on 2 July 1987. 
(J) OJ No C 81, 26. 3. 1991, p. 8. 
(2) OJ No L 399, 30. 12. 1989. 
(3) OJ No C 159, 26. 6. 1989. 2.1.1. The Committee endorses the draft Council's 
decision to set up a programme of this find. The Com­
mittee has been advocating the objectives and many of 
the measures included in this programme since 1984; it 
lends its support to the proposal subject to the incorpor­
ation of a number of 'clarifications and proposals' set 
out in the specific comments, the grounds for which 
are given below. These comments deal in particular 
with the transport and fisheries sectors which, if not 
reviewed under Poseima, may even thwart the legit­
imate objectives of the programme. 
2.1.2. Broadly speaking, Poseima should promote 
economic diversification, working to counteract, as far 
as possible, the predominance of a single crop, industry 
or activity; this normally makes an economy and society 
extremely fragile. 
2.1.3. By using the various horizontal and specific 
programmes available under the Community Support 
Framework, local authorities and economic operators 
should introduce technological innovation and new 
economic and educational activities into these regions 
so as to help them catch up with other parts of the 
Community and reduce their dependence on the out­
side. 
2.2. Fisheries sector 
2.2.1. In view of the fact that the island regions of 
Madeira and the Azores constitute 76 % of Portugal's 
'exclusive economic zone', the fisheries sector is of 
strategic economic and social importance, affecting the 
local productive, industrial and commercial sectors and 
important in terms of exports. Although future initiat­
ives under the programme will cover this sector, men­
tion should be made in the various specific measures 
proposed. For this reason, express reference should be 
22. 7. 91 Official Journal of the European Communities No C 191/53 
made to the fisheries sector in the explanatory memor­
andum, particular in points 20, 35, 37, 41 and 42. 
2.3. Agriculture 
2.3.1. Although Poseima deals with agriculture in 
detail, particularly in Annex 3 and the accompanying 
text, it might be more consistent to make express refer­
ence to this sector in points 18 and 20 of the explanatory 
memorandum and to replace 'beef breeds' by 'cattle, 
pigs, sheep, goats and day-old chicks' in point 27. 
2.3.2. In the banana sector, measures should be 
guaranteed by the Commission under Poseima which 
are at the very least commensurate with the provisions 
of Article 1 of Protocol 5 of the IVth Convention 
between the African, Carribbean and Pacific States 
(ACP) and the EEC. 
2.3.3. The ESC welcomes the fact that socio-econ­
omic operators and local authorities have announced 
their intention to promote the development of environ­
mentally friendly farming methods. 
2.4. Tax arrangements 
2.4.1. Adjustments to tax arrangements should take 
account of the increase in the cost of factors of pro­
duction and essential consumer goods for the local 
population, particularly in spheres such as energy and 
passenger/freight transport from outside the islands and 
between them. 
2.4.2. Tax arrangements (at present temporary spe­
cial arrangements apply) should thus be a dynamic 
instrument for social justice and fairness, enabling prod­
ucts from the Azores and Madeira regions to compete 
on equal terms in the European market. 
2.5. Energy 
2.5.1. The energy sector is of vital importance to 
these areas because local residents and businesses are 
dependent on the outside for their energy supplies, 
and costs are rising. For this reason, moves to reduce 
dependency on oil are to be welcomed, such as the 
use of alternative, less-polluting energy sources (wind, 
geothermal, hydroelectric, biomass and solar). 
2.6. Transport 
2.6.1. The transport sector constitutes the most seri­
ous obstacle to economic development in these regions, with major repercussions on the local cost of living. 
For this reason, this sector should be dealt with in 
greater depth and innovative solutions found to elimin­
ate the underlying causes of these obstacles. 
2.6.2. For the transportation of cement and the raw 
materials needed for its manufacture, the arrangements 
could be identical to those for steel products set out in 
Portugal's Treaty of Accession to the EEC. 
2.7. Support for business 
2.7.1. In addition to back-up measures for craft 
industries, Poseima should make express reference to 
other measures of this kind to strengthen private busi­
nesses and cooperatives in the Azores and Madeira 
regions. The aim should be to develop economic and 
social policies to strengthen the market economy and 
thus create conditions for free and equal competition 
with businesses on the European mainland. 
2.7.2. The ESC strongly recommends that Poseima 
include specific support activities to encourage the 
involvement of women in socio-economic activities in 
the Azores. 
2.7.3. The ESC approves the intention announced 
by employers, workers and local authorities to set up 
suitable financial instruments to promote private 
initiatives such as a venture capital fund. 
3. Specific comments 
3.1. Amendments to Annex 111 to the Explanatory 
Memorandum 
3.1.1. Annex 111(3). Under the heading 'Purchase of 
breeding animals', after 'cattle', add 'pigs, sheep, goats 
and day-old chicks'. 
3.1.2. Amend Annex III in line with the remainder 
of the points set out in the specific comments. 
3.2. Amendments to the Annex to the Poseima pro­
posal 
Title 1 
3.2.1. Point 3.1 (page 47) 
Insert a fourth indent to read as follows: 
'— Strenghtening private business, mainly compo­
sed of SME, in the Madeira and Azores regions, 
entails Poseima involvement in support actions so 
that these businesses can engage in free and equal 
No C 191/54 Official Journal of the European Communities 22. 7. 91 
competition with their counterparts on the Euro­
pean mainland.' 
Title 3 
3.2.2. Point 6 (page 49) 
In view of the economic and social importance of the 
fisheries sector to the island and remote regions of the 
Azores and Madeira which, between them, constitute 
76 % of Portugal's Exclusive Economic Zone (Azores 
55% and Madeira 21%), express reference should be 
made to this sector in specific measures alongside trans­
port and taxation (in line 5 of No 6). For this reason, 
this sector should be dealth with in greater depth and 
innovative solutions found to eliminate the underlying 
causes of the problems; the funds earmarked in the 
Financial Statement should be increased accordingly. 
3.2.3. Insert a new point 7.4: 
'Employers' organizations, trade unions and other 
bodies such as cooperatives and associations, par­
ticularly those dealing with consumer and environ­
mental protection, should be given special assistance 
to set up jointly, for example, a support centre for 
innovation, discussion or presentation of new ideas, 
projects and products manufactured or produced in 
the regions themselves or brought in from outside, 
which are of interest to the regions' economies in 
that they create alternatives to the predominance of 
a single type of crop, industry or activity.' 
3.2.4. Point 8 (page 49) 
3.2.4.1. Poseima contains a number of innovation 
measures for the transport sector. These are inadequate 
and limited as they do not take account of the infra­
structure factor in areas such as international and local 
ports and airports, inter-island transportation (Azores) 
and links between Atlantic Islands Regions (particularly 
the Azores, Madeira and the Canaries) and between 
these and the European mainland. 
3.2.4.2. Poseima should also include initiatives to 
support 'partnership' arrangements between firms in 
the air transport sector. 
Title 4 
3.2.5. Point 9.1 (page 50) 
In order to clarify the aims of these measures, insert 
the following phrase after 'agricultural products' on line 5: 'and agricultural inputs, inter alia fertilizers and 
enriching agents,'. 
3.2.6. Point 9.2 first indent (page 50) 
In order to avoid placing too great a financial burden 
on the regions over and above the other specific costs 
derived from their geographic situation, it is rec­
ommended that agricultural products not produced in 
the regions themselves and essential for local consump­
tion or processing be exempt from 'accession' com­
pensatory amounts, irrespective of whether these prod­
ucts come from EC Member States or not. 
3.2.7. Point 9.3 (page 51) 
In the Azores region work on genetic improvement for 
male breeding animals should be extended to cover 
'cattle, pigs, sheep, goats and day-old chicks'. 
3.2.8. Point 10.4 (page 52) 
To ensure justice and fairness, Community aid under 
this point should be indexed to the inflation rate. 
Title 5 
3.2.9. Points 14.2, 14.6, 14.7 and 14.8 
— paragraphs a) and b) 
On the basis of the premises set out above, the four 
above-mentioned points should make express reference 
to the 'fisheries sector'. 
3.2.10. Point 14.2 should also refer to 'possible agri­
cultural products of importance to the regional econ­
omies'. 
3.2.11. Insert a new point between points 14.5 and 
14.6 to read as follows: 
'Given the importance of the fisheries sector to the 
Azores and Madeira, the Commission will finance 
a global study of fish stocks for human consumption 
prior to the adoption of measures rationalizing the 
exploitation of these stocks.' 
3.2.12. Point 4.8 — paragraph A: 
Insert the term 'forestry sector'. 
Title 6 
3.2.13. Point 16 
In order to guarantee the effectiveness of the proposed 
measures under Poseima, this point should empower 
the Commission to adopt adjustment measures to 
22. 7. 91 Official Journal of the European Communities No C 191/55 
ensure that the objectives set out in Title 1 of the programme would have to be adjusted to take account 
proposed Council Decision are achieved. of the measures proposed in the ESC Opinion, particu­
larly those for the fisheries, transport and energy sec-
3.3. Financing the measures; financial statement — tors> and the financial statement would have to be 
Points 3.5 and 4 (pages 25 and 27) changed accordingly. 
3.3.1. The funds for the measures in the Poseima 
Done at Brussels, 30 May 1991. 
The Chairman 
of the Economic and Social Committee 
Francis STAEDELIN