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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)460 final
Brussels ,29July1980
EUROPEAN REGIONAL DEVELOPMENT FUND
(Draftfifthannualreport1979)
A/ <7vàΡίχ->ΉB>A,Il
CCMC80)460final

EUROPEAN REGIONAL
DEVELOPMENT FUND
Draft
fifthannualreport(1979)
TheCouncilRegulationestablishing aEuropeanRegionalDevelopment Fund
requiresthat:
"1.Before1OctobereachyeartheCommissionshallpresentareportto
theCouncil,totheEuropeanParliament andtotheEconomicandSocial
Committee ontheimplementation ofthisRegulation duringthepreceding
year.
2.ThisreportshallalsocoverthefinancialmanagementoftheFundand
theconclusions drawnbytheCommissionforsupervision oftheFund's
operations".

-1- XVI/41/80-EN
Orig.FR
CONTENTS POINT PAGE
ChapterI:INTRODUCTION 13
ChapterII:REGIONALPOLICYIN1979 96
-CouncilResolution ofFebruary1979 96
-Amendments totheFundRegulation 117
-ProposalsforspecialCommunitymeasures 168
-Integratedoperations 199
-Theregionalimpactofotherpoliciesand
financial instruments 2010
-Regionaldevelopment programmes 3013
-Annualstatistical summaries ontheresults
ofregionalpolicies 3314
-Regionaldevelopment studies 3515
ChapterIII:FUNDACTIVITYIN1979 4218
-Fundassets 4318
-Applications 4418
-Commitment decisions 4821
-ImpactofFundassistance onemployment 5424
-Thefinancingofstudies 5725
-Complementary characterofFundassistance
andnationalmeasures 5825
-Levelofcréditutilisation 5926
-Summaryofthesituation1975-1979 6027
-Integrated operations 6127
ChapterIV:REGIONALANALYSIS OFFUNDACTIVITY 6529
-Geographical concentration ofaids 6529
-Fundactivityincertainpriorityregions 6731
»
ChapterV:PAYMENTS ANDCONTROLS 13154
-Payments ' 13154
-Controls 13555

-2-
POINT PAGE
ChapterVI:PUBLICITY ONFUNDACTIVITY 14459
ChapterVII:CONCLUSIONS 14467
ANNEXES
A.Statistical annexonFundactivity 72
Table1.Summaryofaiddecisionsin1979 . 73
Table2.Typesofinvestment financedbytheRegionalFund-
industryandservices 74
Table3.Typesofinvestment financedbytheRegionalFund-
infrastructure 76
Table4.Fundassistancepercapita . 78
Table5.RegionalbreakdownofFundassistance 79
Table6.Budgetsituation 83
Table7.Paymentsmade 84
Table8.Controloperationsundertaken 85
B.Bibliographical annex
1.ProvisionsadoptedonCommunityregionalpolicy 87
2.Commissionproposals ^88
3.Publications 89
C.Principalinstruments
1.FundRegulation (amendedtext) 92
2.CouncilResolutionof6.2.1979onguidelinesforCommunity
regionalpolicy 100
LISTOFMAPS
1.Assistance fromtheRegionalFund,1975-1979 30
2.PriorityregionsforRegionalFundaidineachMemberState
(analysedinChapterIV) .34

-3-
Chapter I-INTRODUCTION
1.TheEuropean Regional Development Fundwasestablished inMarch1975(1).
TheCouncil on6February 1979amendedtheFundRegulation (2);the
principal amendments ,alreadyindicated intheprevious annualreport (3)
arereferred tolater(4).ThisfifthannualreportdealswithFundactivity
in1979,thefirstyearinwhichtheFundhasbeenmanagedaccording tothe
amendedregulation .
2.TheFundendowment in1979was945million EUAcompared with581miIlionEUAin
-1978.This63%increase wasthedirectresultofactionbytheParliament ,
whichamendedthefigureinthegeneralbudgetof620million EUAto945
EUA.Ofthe945million EUA,45million EUAhavebeenallocated tothenew
socalled"quotafree"sectionoftheFundbutthesecouldnotbespentin
1979sincetherelevant regulations hadnotbeenadopted bytheCouncil by
theendoftheyear.Thefigureswithregardtocommitment appropriations
andpaymentappropriations contained inthisReporttherefore includethe
"quota"sectioninfull;thishad900million EUAavailable onthe1979
budgetplus43million EUAcarriedforward fromtheprevious budgetyear.
3.TheCommission adoptedin1979410decisions underthe"quota"section
approving 2,835investment projects,involving atotalaidvolumeof962
million EUA.Since1975,9,182projects havebeenapproved bringing the
totalappropriation commitment to2,488million EUA(6).Proportionally to
thepopulation oftheaidedareasofeachcountry,theaidvariesfrom54.2
EUAperheadforDenmarkto8.5EUAforLuxemburg (7).Ofthe962million
EUAcommitted in197928%(1975-79 :32%)wenttoindustrial andservice
activityprojects,creating ormaintaining 79,000jobs(1975-79 :340,000)
and72%(1975-79 :68%)wenttoinfrastructure projects .Payments madein
1979were513million EUA.Totalpayments madesincetheestablishment of
theFundaccountfor53.1%ofcommitment appropriations .
(1)CouncilRegulation (EEC)No.724/75of18March1975establishing a
,European Regional Development ,Fund(O.J.No.L73of21.3.1975 )herein­
aftercalledtheFundRegulation .
(2)CouncilRegulation (EEC)No.214/79of6February 1979amending Regulation
(EEC)No.724/75of18.3.1975 (O.J.No.L35of9February 1979).The
amendedtextoftheRegulation ,published inO.J.No.C36of9February
1979isannexed.
(3)Point3ofthe4thannualreport.
(4)Points11-15ofthisreport.
(5)Points16-18ofthisreport.
(6)ItshouldbenotedthataidfromtheFundisdecided,andthepayments
made,innational currency.Inthisreport,theamountsareexpressed in
Europeanunitsofaccount (EUA).Inviewofthevariablerateofexchange
oftheEUA,inusesince1.1.1978,theseamountsmustbetreatedasonly
approximate .Amountsrelating totheperiod1975to1977havebeenconverted
intoEUAattheexchange rateapplicable on1.1.1978 .
(7)Table4oftheAnnex.

4.TheCommission againstresses thefactthattheimpactoftheFundcannot
bejudgedinisolation .Itisfirstlytobeappreciated inthecontextof
thepresenteconomicsituation .Secondly,itisonlyoneinstrument of
regionalpolicy,whichisconcerned withallCommunity measures havingboth .
positive andnegative consequences onregional imbalances .TheCommission
therefore attaches considerable importance totheresolution (1)onregional
policythattheCounciladoptedatthesametimeastheamendments tothe
FundRegulation .Toputincreased emphasis onregionalpolicyastheframe­
workoftheFund,ithasbeendecidedtoamendtheformofthisreportby
including atthestartaChapteron"Regional policyin1979",whichreplaces
andenlarges Chapter VI"Coordination andProgrammes "ofprevious reports.
5.Twootherchangesshouldbenotedintheformofthereport:
-theprevious ChapterII"Theeconomicsituation andtheoutlookforthe
future"nolongerappearsnecessary sincetheCommission willpublish
shortlythefirstperiodical reportonthesocialandeconomic situation
oftheregions;thisChapter (andthestatistical annexreferring )is
therefore withdrawn .Nevertheless inordertosituatetheFundinits
economic setting,points6to8giveaverybriefsummaryofthegeneral
socialandeconomic trendin1979;
-abibliographical annexisaddedforthefirsttime;thissupplies alist
oflegalinstruments andCommission publications onregional policy;
-theamendedtextoftheFundRegulation andtheCouncilResolution on
guidelines forCommunity regional policyareannexed.
Theeconomic background
6.Theslightimprovement intheeconomicsituation confirmed in1978(2)was
maintained lastyear;itisestimated thattheGDPvolumeincreased in1979
by3.3%bycomparison with3.1%in1978.Theindustrial production index
roseby4.7%-thehighestincrease since1976-andtheriseinemployment
(1%)approximately ,wasthehighestsince1973.Thelevelofunemployment
at5.6%wasslightly morethanin1978.Alsotobenotedisgreaterstabi-
.lityintheexchangeratesfollowing theestablishment oftheEuropean
monetary system.However,oilpricesincreased sharplyinthesecondsix
monthsoftheyear-withaprospect offurtherincreases in1980.In
consequence therateofinflation forthewholeCommunity was9%in1979
andamuchhigherrateisforecast for1980.Theestimated deficitinthe
balanceofpayments of5,000million EUAin1979hasbeensubstantial lyexceeded
andthesituation islikelytoworseninthecurrentyear.
(1)CouncilResolution of6February 1979onguidelines forCommunity regional
policy(O.J.C36of9February 1979)(Point9ofthisreport).
(2)4thannualreport,point6.

-5-
7.Theoutlookfor1980isnotgood.According topresentestimates,therate
ofGDPgrowthwillnotexceed1.5%andthatofindustrial production
1.25%.Totalemployment willfallslightly andthelevelofunemployment
couldshowageneralincrease.Certain memberStatesareexpected to
maintain arestrictive budgetpolicy.
8.Theimplications ofthistrendforCommunity regionsshouldbeconsidered
inthecontextofalreadyexisting imbalances .Thegapbetweenthericher
andpoorerregionswidenedintheseventies,mainlyduetorelatively high
inflation ratesinIreland,ItalyandtheUnitedKingdom andthemovements
intheratesofexchange causedthereby.Inaddition,evenwherearelatively
highgrowthratewasaccorded asinIrelandtowardstheendoftheseventies ,
theriseinGDPperheadwasbarelyenoughtoreducetheimbalances inthe
richerregions.Thisdifficult economic situation istheframework inwhich
Regional Fundactivity mustbeassessed in1979;italsoconditions the
mainlinesandpriorities offutureFundactivity .

ChapterII-REGIONAL POLICY IN1979
CouncilResolution ofFebruary 1979
9.TheCounciladoptedon6February aresolution onregionalpolicy(1)comprising
threepoints:
-TheCounciltooknoteoftheCommission 'sintention toproduce aperiodical
reportontheeconomic andsocialsituation oftheregions onthestrength
ofwhichregionalpolicies andpriorities maybeestablished forensuing ,
years(2); •r.
-theCouncilalsotakesnoteoftheCommission 'sintention totakemore
systematic accountoftheregional implications ofotherCommunity
policies (3)andexpresses itsintention totakeaccountoftheseimplica­
tionsinadoptingitsdecisions ;
-theCouncilaffirmedthatcoordination oftheregionalpolicies ofMember
StatesandthatoftheCommunity isindispensable andnotesthatregional
development programmes (4)areanappropriate framework forensuring
coordination .
10.AtthesametimetheCouncilhasamended twoprevious decisions inorderto
assistthepreparation andconsideration oftheperiodical reportonthe
situation ofregions.Itamendeditsdecision of18March1975establishing
aRegional PolicyCommittee (5)toenablethisCommittee tobeclosely *
associated withthepreparation ofthereport;ithasalsoamendedits
decision of18February 1974onachieving ahighrateofconvergence in
theeconomicpolicies ofMemberStates (6)inordertoincludeconsidera­
tionofthereportinitsmandate.Inpractice,theCommission ,in
cooperation withtheRegional PolicyCommittee,willprepare areportat
twoandahalfyearlyintervals sothatonereportoutoftwomaybe
considered bytheCouncil,afterconsultation oftheParliament andthe
Economic andSocialCommittee,inconjunction withtheprogramme ofmedium
termeconomic policy,whichisprepared everyfiveyears.
ê '■
(1)O.J.C36of9.2.1979 .
(2)Thefirstreportwillbepublished in1980.
(3)Points20-29ofthisreport.;
(4)Points30-32ofthisreport.
(5)Councildecision 79/137/EEC(O.J.L35of9.2.1979 amendingitsdecision
75/185/EEC(O.J.L73of21.3.1975 ).
(6)Councildecision 79/136/EEC(O.J.L35of9.2.1979 )amendingitsdecision
74/120/EEC(O.J.L63of5.3.1974).

-7-
Amendments totheFundRegulation
11.Onthesameoccasion theCounciladopted amendments totheRegional Fund
Regulation (1).Themostimportant amendment wasthecreation,withinthe
Fund,ofaquotafreesection (2).Thisnewsectionistoenablethe
Community tocontribute bywayofspecialandCommunity measurestoaresolution of
theproblems forwhichithasaspecial anddirectresponsibility .This
concerns theregions,whichmaydifferfromthoseeligible forthequota
section andwhichareaffected bytheconsequences oformeasures within
theframework ofotherCommunity policies .Moreover,thesemeasures may,
exceptionally ,beintended todealwiththestructural consequences of
especially seriousevents.Lastly,inaspecialdeclaration ,theCouncil
stateditsreadiness toconsider,withinthequotafreesection,any
requestforaidonfrontier problems inthemostdeserving regionsof
theCommunity madebytwoormoreinterested MemberStates.
12.Thespecial Community measures,implemented intheformofspecial
programmes andnolongerasindividual projects,as inthecaseofthe
quotafreesection,willbebasedonapplication regulations ,adopted
bytheCouncil onproposals fromtheCommission andwhichwillestablish :
a.thenatureoftheprojectseligible forFundaid;
b.theareasandregions onbehalfofwhichtheFundmaycontribute ;
c.national publicaidmeasures takenintoconsideration forthegrant
ofFundaid;
d.Fundassistance involved; ,
e.categories ofrecipients ofFundaid;
f.thedetailed rulesgoverning financing .
13.Lastly,theamended FundRegulation laysdownthatthespecialmeasures
shoulddifferwhollyorpartlyfromthoseeligible forfinancing
according tothequotasection.TheCommission ,inpreparing itsfirst
proposals (3),hastakenaccountofthisprovision innolongergranting
aidsexclusively oncapitalaccountbutgivingalargeplacetovarious
aidstosmallandmediumsizeconcerns .
(1)O.J.L35of9.2.1979 .(TheupdatedtextoftheRegulation ispublished
inO.J.C36of9.2.1979).
(2)Articles 2.3.b,13and14oftheRegulation .
(3)Point16ofthisreport.

-8-
14.TheCouncilLimitedexpenditure fromthe"quotafree'sectionto5%of
totalFundendowment .TheCommission ,initsproposals,hadnotsuggested
apercentage linkbetweenthetwosections oftheFund;initsdraft
proposal forthe1978budgetithadwrittenin100million EUAasthe
allocation forthe"quotafree"section,whichamountwastheequivalent
of13%ofthetotalproposed Fundendowment .
15.Apartfromthecreation ofthequotafreesectionoftheFund,themost
important amendments tothe"quota"sectionare:
-amendment ofnational qyotastoincrease theFrenchquotaby2%on
behalfoftheoverseas departments C1); .
'-amoreflexibledefinition ofinfrastructure projectseligiblefor
Fundassistance ,whichisnolongertobe"directly linkedtothe
development ofindustrial ,handicraft andserviceactivities "butsimply
tocontribute "tothedevelopment oftheregionortheareainwhich
theyarelocated".Theassistance grantedtoinfrastructure mustbeno
more,however,than70%oftotalFundassistance overaperiodofthree
years(2);
-theincrease from30%to40%ofthemaximumrateofassistance for
infrastructure ;thisisofspecialinterest fordeveloping theregion
inwhichitislocated (3);
-anincreased roleforregional development programmes (4);
-thepossibility ofaccelerated payments (5);
-simplified procedures incertainrespects (6).
Initialproposals forspecial Community measures
16.On15OctobertheCommission proposed afirstseriesoffivespecial
Community measures tobefinanced according tothe"quotafree"section.
Themeasures areasfollows andwillcost220million EUAoverfive
years(1980-1984 ):
-120million EUAtoassistthedevelopment ofsmallandmediumsize
concerns throughhandicraft andruraltourismintheregionsofthe
Mezzogiorno andSouthWestFrancewithaviewtoimproved adaptation
totheconsequences ofenlargement ;
./.
(1)Amendedquotasare:Italy39.39%;UnitedKingdom27.03 %;France16.86%;>
Ireland6.46%;Germany6.0%;Netherlands 1.58%;Belgium1.39%;Denmark
1.20%;Luxembourg 0.09%;(Article1.1.a.oftheRegulation ).
(2)Article4.1.b.oftheRegulation .(Point51ofthisreport).
(3)Article4.2.b.oftheRegulation .(Point49ofthisreport).
(4)Article6.4.oftheRegulation .(Points30-32ofthisreport).
(5)Article8.3.oftheRegulation .(Point134ofthisreport).
(6)Inparticular Article5.2.b.oftheRegulation .(Point48ofthisreport).

-9-
-43million EUAtocontribute totheplanning andequipment ofderelict _
andurbansiteswithaviewtopromoting newactivities and
toassisting thedevelopment ofsmallandmediumsizeconcerns and
newactivities inareasaffected bytherestructuring ofthesteel
industry intheUnitedKingdom,Belgium andItaly.(Strathclyde ,
Cleveland,Clwyd,SouthandWestGlamorgan,GwentandCorbyinthe
UnitedKingdom;NaplesinItaly;andcertainareasoftheprovinces
ofLiege,Hainault andLuxembourg inBelgium);
-17million EUAforalikemeasureinvolving certainareasaffected by
therestructuring oftheshipbuilding industryintheUnitedKingdom
(Strathclyde ,Cleveland,TyneandWear,Merseyside andBelfast);
-16million EUAfordiversifying sourcesofenergyinmountain areasof
theMezzogiorno ;
-24million EUAforincentives tohandicraft andtourismactivities inthe
BorderareasofIreland andNorthern Ireland.
17.Theseinitialspecialmeasures willenabletheFundtofinancecertain
typesofprojects,whichareineligible forassistance fromthe"quota"
section.Inparticular theyinvolveimprovement ofenvironmental
conditions inoldindustrial areasandthepromotion ofsmallandmedium
sizeconcerns andruraltourism bypayingcosts(insomecasesupto70%)
ofstudies onmarketing oronnewproducts andofmanagement andpromotion .
18.Attheendof1979theCouncilhadnotyetadoptedtheproposals ^
Sincethe"quotafree"sectionoftheFundisnotyetinforce,the_resources allocated tothissectioninthebudgetof1979havebeen
carriedforwardtothefollowing budgetyear.
Regional development integrated operations
19.TheCommission continued in1979todevelopcooperation betweenits
departments responsible fortheRegional Fundandnational government
departments ,atcentral,regionalorlocallevel,inparticular
inItalyandtheUnitedKingdom.Thishasenabledprogress inparticular
withtwopilotschemesforintegrated operations ,at
NaplesandBelfast,whichwillbenefitfromcombined aidfromseveral
Community financial instruments .Thisapproach shouldmakeamoreeffective
contribution tosolvingproblems intheareasinquestion (1).
(1)Points61-64ofthisreport.

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Theregional impactofotherpolicies andfinancial mechanisms
20.TheCommission inits"Guidelines onCommunity regional poLie/'CDhas
indicated thatitconsidersitnecessary tointroduce intotheconcept
andimplementing ofitspolicies anassessment oftheir
^regional dimension .TheCouncilinitsResolution of6February 1979
.expresseditsintention totakeintoaccounttheseassessments inits
owndecisions onthesepolicies.Tothisend,theCommission iscontinuing
aseriesofstudiesontheregional impactofcertainotherCommunity
policies (2).
21."TheCommission continued itseffortstotakeaccount ofimbalances in
regional development through acertainnumberofCommunity policies .For
example,withintheframework ofimplementing theEuropean Monetary System,
theCounciIadoptedon3August1979aRegulation togiveinterestrebates
relating toinvestments carriedoutinlessprosperous Membercountries .
Thevolumeofloanstoreceiveinterestrebatesisfixedforfiveyearsat
5,000million EUA,distributed inannualinstalments of1,000million EUA;
thevolumeofinterest rebatesis1,000million EUAdistributed inannual
instalments of200million EUA.ItwasdecidedthatItalyandIreland
wouldbenefit fromthesemeasures andthattheinterest rebates wouldbe
allocated one1thirdtoIrelandandtwothirdstoItaly(3).
22.Withregard_to theenlargement oftheCommunity,theCommission _
communicated totheCouncilinApril1978,itsview
thatenlargement ,intheabsenceofadequate corrective policies,could
endanger thedevelopment ofacertain numberofweakCommunity regions
principally intheMezzogiorno andinSouthWestFrance.Ithastherefore
advisedthatregional development measures onbehalfoftheseregionsshould
bereinforced .TheCouncil,actingaccordingly ,formally adoptedin
February 1979aninitialinstalment ofsocio-structural regionalised
measures intheagricultural field(4)ondeveloping generalfarmingin
theMezzogiorno ,antifloodprotection intheH£raultvalley (Languedoc-
Roussillon ),irrigation inCorsica andafforestation incertainareas.
Theproposals forspecific measures inregardtoenlargement ,
tobefinancedaccording tothe"quotafree"sectionoftheregional Fundy
."fallclearlyintothesamecontext.
(1)O.J.C161of9.7.1977.Supplement 2/77-Bull.EC.-
(2)Points35-40ofthisreport. v
(3)Point29ofthisreport.
(4)O.J.L38of14.2.1979 .(Thesemeasures wereapproved inprinciple in
1978.See4thAnnualReport,point100).

-11-
23.Measures continued ,withintheframework oftheagricultural structures
policy,toputmoreemphasis ontheneedforaidfortheLessfavoured
regions;inaddition tothemeasures onbehalfofMediterranean areas
abovementioned ,theCouncilalsoapproved inFebruary adrainage programme
forIreland andNorthern Ireland (1).Then,inMarch,theCommission
proposed aseriesofnewmeasures andadaptations ofexisting socio-
structural measures designed toaidthelessfavouredagricultural regions.
Thenewmeasures (2)include special programmes on
behalfofmountain areasproducing beefandsheepmeat inItalyandthe
WestofIreland andsheeprearinginGreenland ,aswellasintegrated
development programmes onbehalfoftheWesternIslesofScotland,ofthe
Frenchdepartment LozereandoftheSouth-East ofBelgium.Inthelastthree
casestheprogrammes mayinvolveseveral Community financial
mechanisms .TheCouncilinDecember 1979,
withintheframework ofdiscussions ofprogramme measures forintroducing
balanceintothewineandviticulture market(3),approved apreferential
grantinprinciple toagroupofregionscomprising mainlytheSouth
oftheMezzogiorno andCorsica.
24.TheCommission ,initsproposals onagricultural pricessubmitted in1979,
included forthefirsttimeanumberofregional price
differentiations formilkandcereals.Theonlyproposal agreedby
theCouncil wastoexemptmountain farmers fromtheco-responsibility
levy(4).
25.TheSocialFundin1979increased theproportion ofitsassistance on
behalfoflessfavoured regions.Theproportion ofaidgranted onbehalf
oftheMezzogiorno ,Ireland,Northern Ireland,Greenland andtheFrench
overseas departments rosefrom25%in1977to38%in1979;inconformity
withtheRegionalPolicyGuidelines adoptedbytheCommission in1977(5)/
theseregionsaretreated aspriority bytheSocialFundRegulation ;the
percentage ofgrantsonbehalfofthelessfavoured regions asawhole
rosefrom70%in1978to85%in1979.
26.ThevalueofECSCconversion loansapproved in1979(200million EUA)
wasthesameas1978.Aidedinvestments shouldcreatemorethan
11,000newjobs.Loansgrantedwere120millionEUAin1977and62...
million EUAin1976.
(1)O.J.L43of20.2.1979 .
(2)O.J.C124of17.5.1979 .
(3)Bull.EC12/1979,point2.1.105 (decision adoptee !on18.2.1980 ;O.J.L57
of29.2.198C ).
(4)AslaiddownbyDirective 75/268/EEC.
(5)O.J.C161of9.7.1979 .Supplement 2/77-Bull.EC.

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TheCommission continued andreinforced thepolicy,outlinedin1978,of
facilitating accessbysmallandmediumconcernstoECSCconversion loans.
Inparticular,theCommission,bywayofadecisionadoptedinMarch1979,
increased thevolumeofloansinrelationtofixedinvestments and
simplified procedureforthegrantoftheseloanstosmallandmediumsize
concernsthroughtheintermediary ofnationalfinancialinstitutions .In
1977thisloancategorywasonly3.7millionEUA;in1978,8.7million
EUA;in1979,62.55millionEUA.Thisledtomerediversity
amongsectorsofactivityinreceiptoftheseloans.Itshouldalsobe
notedthatsmallinvestments oftencreaterelatively morejobs.
27.In1979,loansgrantedbytheEuropeanInvestment BankinthenineCommunity
countrieswere2,281millionEUAcomparedwith1,966millionin1978,an
increaseofsome16%.Regionalinterestprojectsweremaintained ata
highlevel(1,570.6millionEUAcomparedwith1,457.6millionEUAin1978)
andrepresent some68.8%offinancing comparedwith74%in1978.There
isconfirmation ofasteadyincreaseintheconcentration offinancinginthe
threeMemberStatesfacedwiththemostacuteregionalproblems:Italy,
IrelandandtheUnitedKingdom,accountingforsome90%ofthevolume
ofregionalloansgranted.LoansgrantedtoIrelandhavemorethandoubled
andthosetotheUnitedKingdomhaverisenbysome37%.ForItaly,where
considerable advancewasrecordedin1978,therewasasmalldeclinein
applications in1979,despiteasharpincreaseinloanstoindustry,which
onlypartlycompensated forasmallernumberofapplications forloansfor
infrastructure .
28.TheNewCommunityInstrument"forloans(NCI),createdin
October1978,enteredintoforcein1979.TheCouncilissuedglobal
authorisation toborrowupto1,000millionEUAtobeallocatedtoa
firstinstalmentof500millionEUAfordevelopinginfrastructure andthe
energysector.Theinitialloans,grantedinOctober1979,wereforinvest­
mentsinIreland,ItalyandtheUnitedKingdom:5ofthe9loans(127.5
millionEUAor46%)wereforregionaldevelopment infrastructure projects.
29.Lastlyloansof878.4millionEUAforinvestments inIreland(259.3million
EUA)andinItaly(619.1millionEUA)receivedaninterestrebateof
»3percentwithintheframeworkoftheEuropeanMonetarySystem(1).
TherebatesmayapplytoloansgrantedfromtheBank'sownresources and
fromthoseoftheNCI.
(1)Point21ofthisreport.

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Regional development programmes
30.Thecoordination ofnational regionalpolicies isanessential factorin
Community regional policy.TheCouncilhassoughttoconfirmthisin
adopting on6February 1979(1)aresolution onGuidelines inthiscontext
andinrecognising theroleofregional development programmes asabasic
mechanism forcomparing andimproving coordination ofnationalregional
policies .Infactthisrolehasadoublefunction fortheprogrammes must
alsoformthenecessary framework fortheCommission toassesstheinvest­
mentprojectseligible forFundassistance .Moreespecially ,theprogrammes
mustjustifytheinfrastructure projects tobefinanced.
31.Theprogrammes communicated totheCommission in1977wereexamined by
Regional PolicyCommittee which;inJuneandOctober1978,gave anopinion
whichwasbroughttotheattention oftheCouncil andCommission .The
latter,inturn,gaveanopinion on23May1979(2)wherebyitstressesthe
needforthefurtherdevelopment ofprogrammes iftheyaretoconstitute
aprecise enoughframeofreference forprojectassessment .Atthesame
time,theCommission sentarecommendation toMemberStatesrequesting :
-asingleprogramming periodinallMemberStatesfortheperiod1981-85;
-asocialandeconomic analysis takingmoreaccountoftheimplications
ofnational andCommunity Policies ;
-quantified development targetsforemployment andmoreprecisely for
infrastructure projects;
-priority development measures ;
-moreprécisédétails onfinancial resources ;
-information onregionsineligible forRegional Fundassistance .
32.Inthemeantime,aslaiddownintheFundRegulation ,theMemberStates
havesentupdatedprogrammes ,including uptodatestatistical
information anddetails onfinancial resources .Theseprogrammes havealso
-beenexamined bytheRegional PolicyCommittee .Asawhole,theregional
development programmes donotalwayscontainadequatedetails ontheuse
ofFundresources .Nevertheless ,theCommission hasalreadystartedto
studyhowpriorityfieldsforFundassistance canbebetterassessed on
thebasisofprogrammes pursuant totheamendedRegulation .
(1)O.J.C36of9.2.1979 .
(2)O.J.L143of12.6.1979 .

-14-
\
Annual statistical summaries ontheresults ofregional policies
 
33.Theamended Fund Regulation states more clearly the information tobe
supplied inthestatistical summary ,which Member States arecommitted
tosending annually totheCommission andamends thedate ofcommunication .
from 1April to1October .Thenewfinal date wasonly observed byBelgium ,
Denmark andIreland forthe 1978 statistical summary .Bythe endof1979
theCommission had received this summary from allMember States except
France .Itmust confirm however that there was noappreciable improvement
inthe content ofthe summaries bycomparison with predecessors .For
directly productive investments ,most Member States confine their informa­
tion todata oninvestments duetoreceive national aid andjobs estimated
inconsequence without reference toinvestments carried out,expenditure
incurred andjobs actually created ormaintained .Moreover ,theprecise
usetowhich Regional Fund assistance hadbeen put wasnotgenerally
shown .TheCommission hasasked forthenecessary complementary informa­
tion .
34.Inthese circumstances ,itisstill difficult todraw meaningful conclusions
onthe impact ofnational andCommunity regional policy inthevarious
regions .Anattempt atassessment drawn from thebasic data inthe
following Table 1must therefore beinterpreted with considerable caution .
Table 1:Regional aids in1978 (MEUA )C1)
Member State1" ■ 1 '
Aided invest­
'ments (2)Planned public
aidsJobs Invest­
ment perPublic
expendi -
I
Totals ofwhich
byReg .
FundTotals ofwhich
byReg .
FundCreated Main­
tainedjob
created
(3)ture per
job
created
(3)
[Belgium 986 14 153 1 7,138 0,138 0.021
Denmark (4)■:85 11 2,532 0.034 0.004
Germany 4,853 {"9 154 49 51,154 124,698I(0.095 )(0.008 )
France C77 ) -689 466 81 29 34,296 0.020 0.002
Ireland 1,143 523 253 15 39,992 0.029 0.006 ,
rta'ly (6) 2,033 294 577 50 • 65,842 0.031 ,0.009
Luxembourg 42 5 615 0.069 0.008
Netherlands 403I
;77 72 ■■■6 '■I1,821 I 0.221 0.040
United Kingdom 2,210(8 )564 945 |•'57 . 123,557 (7)•• ■■ I
(1)Average exchange rates 1978 .Seepoint 67(1 ). .
(2)Investments forwhich aid hasbeen decided .Data riot available forinvestments
made .
(3)These data tobeinterpreted with special caution . '
(4)Except Greenland .
(5)Excluding theinvestment grant ,which maybeestimated at250MEUA .
(6)Excluding aids bywayofinterest rebates .
,^ffPrc'Jn9tooffers ofregional selective financial assistance .
(8)Without MorthPrn IreLanH .

Regional development studies
35.TheCommission ,inits1977Guidelines onCommunity regionalpolicy"C1)
stressed theimportant roleofstudiesintheformulation andimplementation
ofCommunity regional policyandespecially inthefollowing fields:
-establishing aperiodical reportonthesocialandeconomic situation
andtrendsinregions;
-assessing theregional impactofotherCommunity policies ;
-coordinating national regionalpolicies bywayofregional development
programmes ;
-furtherdevelopment ofregional development instruments andstrategies ;
-theassessment ofresults.
36.Studies maybefinanced according totheRegional FundRegulation (2)or
otherheadings ofthegeneralbudgetoftheCommunities .Havingregardto
thelatter,theCommission caneitherprovidetotalfinanceforstudies
carriedoutonitsownresponsibility oritmayfinancethemjointly;in.
thelatterinstance,theresponsibility issharedwiththeapplicant
MemberState.Withaviewtostrengthening theCommunity'sinterest
instudiesofsharedresponsibility ,theCommission considers thefollowing
subjects ashavingpriority :
-implementing andimproving regional development programmes ;
-coordinated application ofthefinancial instruments oftheCommunity
andMemberStates;
-preparing andimplementing specialmeasures ofCommunity regional policy;
-assessing theregional impactofotherCommunity policies .
37.TheCommission considers thatthestudiesshouldhaveanoperational
character (beofpractical application )andgobeyondapureandsimple
description ofsituations ,incertaincases,theyshouldbetreatedas
basicsourcesofinformation andbebroughtuptodateperiodically .
TheCommission hasconsulted theRegional PolicyCommittee onitsRegional
PolicyGuidelines andtheCommittee gaveafavourable opinion.
38.-Withinthecategory ofjointlyfinanced studies,13studies werecontinued
orcompleted in1979:
-astudy,withFrance,onthesituation andoutlookforextending the
international regionalairservicebetweentheFrenchprovinces andthe
countries ofWesternEurope.Thisstudyconcluded thatitwouldbe
feasible toestablish severalviableregularairservices betweenregions
by1985or1990;
-afeasibility study,withBelgium,onmeasures fordiversifying theBelgo-
Luxembourg steelregionandasecondfeasibility studyconcerning the
possibilities fordeveloping theportofZeebrugge tosupplyimportsto
itsregional,national andEuropean hinterland ;
(1)O.J.C161of9.7.1977 :Supplement 2/77-Bull.EC.
(2)Point40ofthisreport.

-16
-astudy,withDenmark,ondeveloping hydro-electric andmineral
industries inGreenland ;
-twostudies,withIreland,onthedevelopment oftheIrishfisheries
industry anditsregional implication ^andonmethodsofprecasting
population andregional employment inIreland;
-fivefeasibility studies,withtheUnitedKingdom,undertaken under
Article46ofthe"ECSCTreatyontheconversion ofsteel
producing concerns andareasaffected bythesteelcrisis.Thesestudies
concerned :theSheltonSteelworks atStokeonTrentinStaffordshire ;
theClydeIronWorksatGlasgow;Glengarnock inStrathclyde nearGlasgow;
CorbyintheEastMidlands,andthetransfer tothesteelareaof
ShottoninNorthWalesofanengineering business currently locatednear
London;
-astudy,withIreland andtheUnitedKingdom,ontheborderregioninIreland
withspecialreference tothepromotion oftourismanddrainage inareas
arondLoughErneandastudyonthepotential development oftheherring
industry intheMourneregionofIrelandandNorthern Ireland.
Alargenumberofstudiesfinancedjointlywithvarious MemberStatesare
inprogress .
.39.Inthecategoryfinancedsolelybythe_Cpmmiss.ion , .
anumberofimportant studieswerecompleted in1979,which
willhelptheCommission andtheCounciltodefinefutureregionalpolicy
guidelines :
-astudyontheestablishment ofregional labourmarket
balances lookingaheadto1981and1985;
-acomparative studyonpolicies fordisincentives anddéconcentration ;
-studies ontheregional impactoffisheries policyinIreland,Brittany
andtheMezzogiorno ;
-astudyontheassessment ofnational rulesgoverning regional aid;
-astudyontheroleoftertiary (service)activities inregional development .
40.Anumberofotherstudiesstartedin1979werestillinprogress bythe
endof1979.Amongthemostimportant are:
-theregional impactoftheCommunity'sagricultural andexternaltrade
policies ;
-theeffectiveness ofregionalpolicymeasures;'
-themobilisation ofindigenous regionalpotential ;
-thecontribution ofinfrastructure toregionaldevelopment ;
-factorsgoverning location inWesternEurope;
-theimpactofperipherally onregional development ;
-regional development programmes forBasilicata andFriuli-
VeneziaGiulia. -
(2)

-17-
41..Finally,apartfromtheabovementionedpossibilities for
financingstudies,studiesmayalsobefinancedfrorti
theRegionalFund(1),attherequestofaMemberState,providedthey
arecloselyrelatedtotheworkoftheFund.Todateonlyonestudyhas
beenfinancedfromtheFund,in1976(2).TheCommission hopesthatmore
usewillbemadeofthisfacilityinthefuture.
(1)Articles12(quotasection)and14(quotafreesection)oftheFund
Regulation .
(2)SecondAnnualReportoftheFund,point34.

-18-
Chapter .Ill:FUNDACTIVITY IN1979
42.1979wasthefirstyearofFundactivity
under theRegulation amendedbyCouncildecision ofFebruary 1979.
Theamendments inquestion havealreadybeenindicated inChapterIIof
thisreport(1).Unfortunately ,duetodelaybytheCouncilinadopting
proposals forthequotafreesection (2),thissectionisnotin
force.Thiso-hapter andfollowing chaptersaretherefore onlyconcerned
withtheactivity ofthequotasection.
Fundendowment f
43.The1979commitment appropriations forthequotasectionoftheFund,
writtenintoChapter 55ofthegeneralbudgetoftheEuropean Communities ,
weredecidedaccording tonormalbudgetprocedures andamounted to900
million EUAtowhichwereadded65.33million EUA(3)mainlycarriedforward
fromthe1978financial year..Table6annexedsummarises theusetowhich
the1979appropriations wereput.Theresources available incommitment
appropriations wereinadequate tofinancealltheprojects onwhichthe
FundCommittee wasconsulted in1979.Grant ,decisions on257investment
projects,representing grantsof166million EUA,hadtobecarried
forwardto1980(4).
Thefollowing analysis concerns commitment appropriations :thesituation
onpaymentappropriations ,whichwere483million EUAforthe1979
financial year(plus353million EUAcarriedforwardfrom1978)is
analysed inChapter V(5).
Applications
\• ■
44.Thefirstgrantapplications for1979werereceived inJanuary andthey
continued toreachtheCommission untiltheendofOctober.Itshould
benotedhoweverthat45%ofapplications ,representing some37%of
available appropriations ,weremadebetweenAugustandOctober.Inall,
464applications weremadeduringtheyear,concerning 3,598investment .
projects;tothesemustbeadded173projects covered byapplications
madebefore1979.Inall,therefore,theCommission examinedlastyear
503applications concerning 3,771projects.
45.Ofthese503applications ,410concerning 2,835investment projects were
approved;nodecision wastakenon936projects.
Detailsoftheapplications aresetoutinthefollowing tables:
(1)Points11-15ofthisReport,
(2)Points16-18ofthisReport.
(3)Table6,point59ofthisReport.
(4)Point46ofthisReport.
(5)Points131-134ofthisReport.

-19-
TableNo.2:Breakdown of1979applications bythetypeofinvestment
Investment
Typesofinvestment
MEUAvolume j
%
!
|-Industry andservices (projectsofmore I
!than10MEUA) !
i • I
i I3,424.64 28.22
l
j-Industryandservices (projectsofless
jthan10MEUA)
i!1,063.56
i8.76
i
SubtotalI
!4,488.20
i1
-Infrastructure
10MEUA)(projects ofmorethan
1i
!
I
!5,769.10 i47.53
-Infrastructure
10MEUA)I
(projects oflessthan
1,758.35 14.49
-Infrastructure inlessfavoured
agricultural areas(1) 121.41 1.00
Subtotal 7,648.86
TOTALS 12,137.06
(1)WithinthemeaningofDirective No.75/268/EECof28
farming andcertainlessfavouredagricultural areas.4.1975onhiLI

-20-
Table3:Resultofinvestigation ofaidapplications
MemberStateNumberof
projects
presentedin
1979orbrought
forwardfrom
previousyearsNumberof
projects
financedin
1979Numberofprojectspresented
in1979onwhichnodecision
wastakenC1)
010203
i0406Total
[Belgium54 17 2 35 37
Denmark 89 '84 3 2 5
Germany 234 213 311 7 21
France .665 428 331 ■1202 237
Ireland 142 135 14 2 7
Italy 1,909 1,464 167121659443
Luxembourg 3 2 1i
Netherlands 7 6 1 1
UnitedKingdom 668 484 732;4141 184
TOTALS 3,771 2,835 17248660659936
(1)01:industrialprojectsofmorethan10MEUA
02:industrialprojectsoflessthan10MEUA
03:infrastructure projectsofmorethan10MEUA
04:infrastructure projectsoflessthan10MEUA
06:infrastructure projectsinlessfavouredagricultural areas
46.Thereasonsforthefailuretotakedecisionsinrespectof936projects
wereasfollows:
-476projectsdidnotcomplywiththeformalconditionslaiddowninthe
FundRegulation (creatingatleast10jobs,investments ofmorethan
50,000EUA,etc.);
-92projectswereunacceptable forvariousreasons(lateapplications,
aidgrantedbyMemberStatesnotcompatiblewiththecommonmarket,
etc.);
-60projectswerenotacceptedforsectoralreasons(structural over­
capacity);
-51projectswerewithdrawnattherequestoftheMemberStateconcerned;
-insufficient commitmentappropriations limitedtheCommission 1sability
totakedecisionsinthecaseof257projects,representing
grantapplications totalling 166millionEUA.

-21-
However,these257investmentprojectswhichwerenotfinancedin1979
duetolackoffundsbutonwhichtheFundCommittee hasalreadygiven
anopinionin1979,couldbethesubjectofagrantdecision"inthefirst
instalment of1980.
47.InaccordancewiththeCommission'srequestmadeinpreviousyears,most
MemberStatesappliedin1979formorethantheirquotaoftheFund.This
isshowninTable4:
Table4:Year1979-applications forgrantsin%ofquotaslaiddownin
theFundRegulation
In%
Belgium 119
Denmark 116
Germany 127
France 124
Ireland 116
Italy 148
Luxembourg 159.
JNetherlands I! 99
UnitedKingdom 156
TheCommission noteswithsatisfaction theeffortsmadebymostMember
Statesinthisdirectionsincethesurplusofapplications hasmadethe
Commission'schoiceofprojectseasier.
Grantdecisions (1)
48.In1979,theCommission adoptedfourseriesofgrantdecisionsinJanuary,
May,September andDecember,afterreceivingthenecessaryopinionsfrom
,theFundCommittee andtheRegionalPolicyCommittee.Thesimplified
procedurelaiddownintheamendedFundRegulation madeconsultation of
theFundCommitteeeasier,especially withregardtoprojectsofless
than10MillionEUA(2).Table1annexedgives,byMemberStateandby
majorcategoryofinvestment,asdefinedintheFundRegulation,the
numberofgrantdecisions,thenumberofprojectsfinanced,thevolume
ofinvestment concerned andtotalvalueofgrantsapprovedfromtheFund.
(1)Point3(6)ofthisreport.
(2)Article5.2.b.oftheRegulation .

-22-
Thebreakdown ofFundassistance isasfollows :
TableNo.5:Breakdown ofassistance bycategory ofproject
Aid
I, : IInvestment
Industry andservicesprojects +10MEUA 16.8% 23.7%
projects-10MEUA 11.0%9.8%I
27.8% 33.5%
Infrastructure projects +10MEUA 32.1% 52.7%
projects-10MEUA 37.8% 13.1%
infrastructure in
hillfarmingareas 2.3%|0.7%|
72.2%I
66.5%
Total . 100%
i100%
49.Thistablecallsforcomment :
-industrial andserviceprojects asapercentage oftotalassistance
granted waslessthantheprevious year,fallingfrom33%in1978
to28%in1979.Thisproportion isacceptable according .tothe
Regulation ,whichlaysdownthatatleast30%ofassistance mustgoto
projects ofthistypeoverathreeyearperiodbutnotannually.The
Commission considers ,nevertheless ,thatMemberStatesshouldseekto
applyonbehalfofmoreindustrial projects inthefuture.Thedata
drawnfromstatistical summaries andreproduced inTable1(1)show
thatanumberofMemberStates,andinparticular GermanyandFrance,
havealreadytakenstepsinthisdirection ^?
-atthesametime,infrastructure projects accounted for72%ofFund
assistance andthiswasalargerpercentage thanin1978.Theprojects
benefitting fromthepossibility available according totheamended
Regulation ofFebruary 1979tograntassistance upto40%ofinvest­
mentcostaccountfor11%ofprojects ofmorethan10million EUA;
-theproportion ofgrantstoprojects ofmorethan10million EUAwas
49%.Thiscorresponds tothepriorityreferredtointheFundRegulation
onbehalfofmajorprojects.
Principal typesofprojects assisted "
TablesNo.2and3intheAnnexindicatethetypesofinvestment forwhich .
Fundassistance wasgranted.Thesetablesrevealthefollowing facts:
(1)Point34ofthisreport

τ23-
50.Industry andservices
-Theaverage amountperproject was72.1million EUAforprojects of
morethan10million EUAand9.5million EUAforprojects oflessthan
10million EUA.Fundgrantswereequalto44.9%ofnational aidsand
6.8%oftotalinvestments inthecaseoflargeprojects andto46.8%
and10.7%respectively inthecaseofsmallerones.
-Astoeconomic sectors,themotorvehicleindustry wasintheleadfor
projects ofmorethan10million EUA,followed bythechemicals industry,
electrical andelectronic engineering ,non-metallic minerals andthe
foodindustry .Asfarassmallprojects wereconcerned,metalconstruction
wasinthelead,followed bythetimberindustry,thefoodindustry,
drinkandtobacco andnon-metallic minerals .
51.Infrastructure
-Generally speaking,averylargenumberofprojects concerned various
formsofinvestment ininfrastructure (energysupply,telecommunications )
followed,withregardtothetotalnumberofprojects financed,byroads
andplanning andpreparation ofindustrial estates.
-Typesofinfrastructure ,however,variedfromoneMemberStatetoanother
inthelightofregionalpriorities andnational policies .Apartfrom
infrastructure abovementioned ,particular emphasis wasputintheUnited
Kingdom andIreland onbuilding "advancefactories "whereasairport
installation andenergysupplywerefinanced inDenmark (Greenland );
inFrance,priority wasgiventotelephone installations androads,and
inItaly,towatersupplyanddrainage,whichaccountforasubstantial
percentage ofthetotalofinvestments financed .Alsotobenoted,
pursuant tothewiderdefinition ofinfrastructure eligible according
totheamendedRegulation ,wasmoreFundactivity onbehalfofcertain
categories ofinfrastructure ,whichhavetodate onlybeengivenmarginal
consideration :congress centres,technical,scientific andcommercial
traininginstitutes andpreparatory workoninstalling holiday and
relaxation areas.
-ThelevelofFundassistance averaged 30.4%ofeligible public
expenditure forprojects ofLessthan10million EUAand21.2%for
largeprojects .Thisisbecausecertain MemberStatesdonotinclude
intheirgrantapplications thosepartsofinvestments whichserve
thegeneralpublic.Furthermore ,inthecaseofcertainlargeprojects,
theCommission hasbeencalledupontoaltertherateofgrant,between
thelimitsof10%and30%,aslaiddownintheRegulation ,totake
accountoftheimportance oftheprojectforregional development .
Thesechangesweremadeafterconsulting theRegional PolicyCommittee
andtheFundCommittee .TheCommission ispreparing morepreciseguide­
linesonthematter.

-24-
Realisation ofprojects financed
52.In1979,MemberStateswereobligedtocomplywiththeprovisions of
Article 1oftheamendedRegulation wherebytheCommission takesinto
consideration forFundassistance payments madebytheMemberStatesas
fromthe12thmonthbeforethedateonwhichitreceives therequestfor
assistance ,inrespectofinvestments notcompleted bythatdate.
TheCommission considers theresultsofthesenewprovisions havebeen
satisfactory inthat50%ofprojects financedstartedin1978and30%
inthesameyearasthegrantdecision;threeMemberStates (theUnited
Kingdom,Belgium andItaly)evenappliedforassistance foranumberof
projects startedin1980.
Grantofinterest rebateonEIBloans
53.ForthefirsttimesincetheFundwasestablished in1975,aMemberState
usedthefacility of.obtaining Fundassistance intheformofinterest
rebateonaloanissuedbytheEuropean Investment Bank.
Theaidisforaproject
intheUnitedKingdom (1)andisequivalent toaninterest rebateof3
percentage pointsonanEIBloanof49.3million EUAover20years.The
amountofFundassistance willbepaiddirectly totheEIB.
ImpactofFundassistance onemployment
54.OneofthemainaimsoftheFundisthecreation andmaintenance ofjobs
inregionsthatareheavilydependent onorsufferfromindustrial change
orstructural underemployment .Inthisconnection ,thefactthatmostFund
assistedprojectsin1979wereforinfrastructut-e ,forwhichprecisestatistical
details onjobscreatedwerenotavailable,makesitdifficult toassess
Fundassistance inthisfield.
Eventhoughtheindustrial andservicesectors havehitherto createdthe
mostpermanent jobs,theCommission doesnotunderestimate thebasicrole
ofinfrastructure indeveloping thelessfavoured regions.Indeed,regional
policymust,ofitsverynature,concentrate principally onmediumandlong
termstructural measures suchastheimprovement ofinfrastructure since
theseareessential tothecreation andmaintenance ofpermanent jobsin
thefuture. \
55.According toinformation intheapplications ,projects inreceiptofFund
assistance in1979intheindustrial andservices sectors shouldcreate
and/ormaintain nearly80,000jobs.Jobcreation istherefore higherin
thoseMemberStatesreceiving proportionately moreaidforindustry :
FranceandtheUnitedKingdom.
(1)Points110and155ofthisreport.

-25-
56.Asinpreviousyears,projectsoflessthan10millionEUA
createdmostjobs(ascomparedtotheamountoftheinvestment and/or
theFundcontribution).Thisisbecause ,smallprojectsareoftenmore
labour-intensive thanlargeprojects.
Financingstudies
57.NostudywasfinancedfromtheFundin1979undertheFundRegulation,
norequesttothiseffecthavingbeenreceivedfromMemberStates(1).
Complementary characterofFundactivityandnationalmeasures
58.Ineachpreviousreport,theCommission hasstatedthatitdoesnothave
theinformation neededtoassesshowfarFundassistanceisreallyadded
tonationalregionaldevelopment efforts.Initsamendedform,theFund
Regulation laysdown(2)thatMemberStatesshallprovidethenecessary
detailsonhowCommunityresourcesareused.Nevertheless ,theCommission
hastoconfirmonceagainthat,inspiteofappealstoMemberStates,
itdoesnothaveadequateinformation onthematterforallMemberStates.
ItalsonotesthatnoMemberState,in1979likepreviousyears,hasmade
useofthepossibility,forindustrial andserviceactivityinvestments,
ofpayingtheFundcontribution totheinvestment concerned asacomple­
menttonationalaid;allhavechosenthealternative procedure,
providedforintheRegulation,oftreatingtheFundcontributio,aspartial
repaymentofnationalaid.
(1)Regionalstudieshavenevertheless continuedtoreceivefinancingunder
otherChaptersofthegeneralCommunitybudget(points35-41ofthis
report).
(2)Article19.

-26-
Levelofcrédituse
59.Thelevelofuseofcreditsavailablein1979isshowninthefollowing
table: '
TableNo.6:Useofcommitment appropriations in1979(MEUA)
MemberStateCreditswritter
into1979
budget(quota
section)
ASupplementary
credits
<1)
BCommitment
appropria­
tions
CLevelofuse
Ç
A+B•'
Belgium 12.51 2.09.9.08 62.2.I
Denmark 10.80 2.01 11.14 87.0
Germany 54.00 5.10 59.04 99.9
France ■'151.74 15.98 '■159.39 95.0 ,
Ireland 58.14 ,*3.47 62.21 101.0
Italy 354.51 21.66 388.08 103.2
Luxembourg 0.81 0.03 0.81 96.4
Netherlands 14.22 ,1.09 11.34 74.1
UnitedKingdom 243.27|13.90261.02 101.5
900.00 '65.33 |962.11 99.7
(1)Creditsderivingfromsumscarriedforwardfrom1978(43.48)/with­
drawals(15.60MEUA)andadjustments duetoexchangeratevariationsofEUA
(6.25,MEUA).The43.48MEUAcarriedforwardincludethe29MEUA
retainedin1978forthequotafreesection,distributed among
MemberStatesinproportiontotheirrespective quotasbutwhich
willbecoveredbythequotafreesectionin1980.
SomeMemberStateshavenotusedalltheiravailablecreditsforthe
followingreasons:
I'
-thelatearrivalofapplications fortFundassistance;
■* ■ ; j *
-investigation isstillinprogressforacertainnumberofprojectsdue
toinsufficiently preciseinformation (France,Belgium);
-someprojectsweresuspendedattherequestofnationalauthorities
(Netherlands,Belgium)ortheCommission (Denmark);
-thelimitedquotaavailabletoLuxembourgonlyallowsforfinancing a
singleproject,thecombination.of twoamountsisnptalwayspossible.
Ontheotherhand,examination ofthewholeperiod1975-1979showsthat
eachMemberStatehasvirtuallyusedallitsavailablecreditsunder
thequotasection.OnlyBelgiumandtheNetherlands areslightly
below100percent.

-27-
Summary ofFund activity
60.This table shows themain types ofprojects financed byMember States
from 1975-1979 .
Table No.7:Grants approved 1975-1979
Member StateGrants
approved
(pro jects
in
brackets )Payments made
(MEUA )Investments involved
(MEUA )Jobs created /
maintained by
investment in
industry and
servi cesIndustry Infra­
structureIndustry
lInfra­
structure
Belgium 25(156) !
I|11.48 27.72 193.76.105.66 4>192
Denmark 46 (248 ) 4.46 30.08 64.36 172.04
i| 2,482
Germany 361(1086 );116.38 94.17 3,123.62 501.47 44,587
France 338(1484 )
lI163.27 264.92 2,787.31 1,286.55 I107,308
Ireland 62 (523 ) 70.03 82.22 1,012.20 359.67|31,724
Italy 277(2984 ) 186.23 730.08 1,164.50 6,501 .50 48,837
Luxembourg 4 (5) 2.94 21.89
Netherlands 15 (27) 5.52 42.48 77.54j293.86 420
United Kingdom 476(2669 ) 233.76 421.31 2,520.54|3,622.72 99,767
1604(9182 )|791.13 1,695.92 10,943.83 12,865.36 399,317
Theprincipal features ofthe Fund 'sactivity over five years ofexistence
are :
-9,182 projects have been financed ,representing atotal investment of
23.8 million EUA;
-68.3 %ofassistance went toinfrastructure projects and31.7 %to
industrial and services projects ;
-projects ofmore than 10million EUAreceived 47.6 %ofFund assistance
, •andsmall projects 52.4%;
-projects financed inindustry andservices should create ormaintain
340,000 jobs .
Regional development integrated operations
61.In1979 ,theCommission adopted acertain number ofguidelines for
providing incentives for integrated operations ,which ,with
the combined assistance oftheRegional andSocial Funds and theGuidednce
Section oftheAgricultural Fund andother Community financial instruments
forstructural purposes (loans from theEuropean Investment Bank ,theECSC
andtheNewCommunity Instrument ),will permit more complete andeffective
aidtobedirected towards solving regional orsectoral problems .

-28-
62.Anintegrated operation is,.in.effect*,acoordinated approachtotheuse._
ofpublicandprivateinvestments withinaLimitedgeographical area;
national andlocalauthorities ofMemberStatesandtheCommunity will
-contribute theretoinacomplementary fashion *thelatterbywayofits
financial instruments forstructural policypurposes .Thecoordination
andconcentration ofCommunity financial aidshouldeitherassistthe
"new"projects (catalysteffect)orfacilitate completion ofprojects *
~¥fiTcfi "would"otherwise havetakenlongertocomplete (accelerationeffect).
Itisalsofeltthatthevalueof-thegroupoffinancial measuresismore
than"thesumofeachoneconsidered inisolation (compound impact).
63.Anintegrated operation istheconclusion ofacomplexnegotiation process
betweentheCommunity *theMemberStateandtheregional andlocal
~authorities ,itrequiresforimplementation acombination ofeconomic *
■"finahcTal~and administrative conditions *whicharenottobefound
everywhere ."The"Commission hastherefore decidedtoexperiment witha
fewpilotprojects' inseveralpotentially favourable areas.
it<
64.Afirstexperiment hasbeenappliedtotheNaplesarea.Thisareahasbeen
chosen*inagreement withtheItalianGovernment *sinceitisexperiencing
especially seriousproblems ofunemployment *under-employment andlackof
publicinfrastructure .Therehavebeenfrequent contacts betweenthe
Commission andtheItalianauthorities throughout 1979tofinalise a
programme ofpluri-sectoral measures atatotalcostofmorethan3*500
-million EUA.AworkinggrouphasbeenformedonwhichtheCommission *the
MinistryforSpecialMeasures intheMezzogiorno andtheCassaperi
Mezzogiorno arerepresented aswellastheregionalauthorities ofCampania
andthetownofNaples.
AsecondpilotprojectisenvisagedforBelfastinNorthern Ireland *an
areaalsofacedwithseriouseconomicdifficulties .Theprojectfileis
currently beingcompiled.

-29-
ChapterIV:REGIONAL ANALYSIS OFFUNDACTIVITY
Geographical concentration ofaids
65.TableNo.5intheannexshowstheregionaldistribution ofFundassistance
in1975-1979.
66.TheFundRegulation statesthatregionsandareaseligibleforFund
assistanceshallbelimitedtothoseareasaidedbyMemberStatesunder
theirownsystemsofregionalaid.TogivemaximumimpacttoFund
assistance,however,prioritymustbegiventoinvestments locatedin
nationalpriorityareas,takingaccountoftheprinciplesofCommunity-
levelcoordination ofregionalaids.In1979,thesituation wasasfollows
inthevariousMemberStates:
-Belgium,53.1%ofthequotaavailablefor1979hasbeengiivento
WallonietotheareascoveredbytheCommission Decisionof26April
1972(1)onaidsgrantedundertheBelgianlawoneconomicexpansion
of30December1980;
-Denmark,83.6%ofFundassistance wenttoGreenland;
-Germany,58.5%ofFundassistance wenttoBerlin,totheZonenrand-
gebietandtofirstprioritydevelopment polesqualifyingfor20%aid;
-france,91.9%ofFundassistance wenttothepriorityregionsofNord-
Pas-de-Calais,tothewestandSouth-west,toCorsicaandtheOverseas
Departments ;
-Ireland,54.4%oftheprojectsweresituatedinthedesignated areas,
mainlyinthewestofthecountry;
-Italy,96%ofFundassistance wenttotheMezzogiorno,theremainder
toareasofFriuli-Venezia Giuliastruckbythe1976earthquake (this
isthesecondFundcontribution onbehalfoftheseregions);
-Netherlands,100%ofFundassistance wenttothe'onlytwopriorityareas
inthenorthandsouthofthecountry;
'"yDiifSLUlDadom ,some86.8%ofassistance wenttoprojectsinpriority
areas,namelyNorthernIreland,theSpecialDevelopment Areasandthe
Development Areas.
Generallyspeaking,theCommission considersthattheattemptstoconcentrate
Fundassistance onpriorityregionsasdefinedbynationalsystemsofaid
hashadsatisfactory results.
(1)0JL105of4.5.1972.

-30-
REGIONAL FUNDAID .1975*
ri^
tTÏNÎÔUr REUNION SAINTPIERREET
(1)MultiregionaL projectsconcerning severalregionsoftheMezzogiorno .

-31-
Mezzogiorno (2)Fundactivityincertainpriorityregions
67.AsintheLasttwoannualreports,thissectiondealswithFundassistance
inacertainnumberofpriorityregions;theseregionshavebeenchosenonthe
basisofthefollowingcriteria:
-first,theregionsincludedinthefiveareasrecognized
ashavingpriorityintheCommission's"Guidelines onRegionalPolicy"
ofJune1977(1)namely:
Abruzzi
Basilicata
Calabria
Campania
Molise
Apulia
Sardinia
Sicily
.Ireland
.NorthernIreland
.Greenland
.Frenchoverseasdepartments ;
second,theregionofeachMemberState(Luxembourg
excepted),whichwastheprincipalrecipientofFundassistance in
relationtopopulation overtheyears1975-1979.However,toavoid
repetition,whenaregionchosenhasalreadybeenanalysedina
previousreport,itisreplaced,wherepossible,byithesecondmain
recipientofaidThisgivesthefollowingregions:
.Limousin
.EastBavaria(3)
.NorthernNetherland (4)
.Wallonie
_(1)Supplement 2/77-Bull.EC.
(2)TheMezzogiorno includessouthernItalyandtheislands,excludinghere
regionspartlysituatedintheMezzogiorno :Latium,Marche,Tuscany.
(3)AidedregionofEastBavaria.
(4)AidedregionoftheNorthernNetherlands .

-32-
68.Eachregionisanalysed inthefollowing way:
-anovera11indicationofthesizeofnational andCommunity assistance
asawholeinrecentyears(2);
-abriefanalysis ofassistance fromtheRegional Fundin1979.
TheCommission doesnotpossesscomplete,precise andcomparable data
onnational aidsforallregions (3).Thefiguresgivenare
therefore onlyaroughguide.Regional Fundassistance andthatofother
Community financial instruments mayhowever beassessed inthelightof
theseapproximate data.
Theanalysis oftheMezzogiorno includes asection onthewholeofthis
largeregion,followed bysections foreachareawithinthe
Mezzogiorno .Forothercountries thereisonlyonesectionperregion.
(1)Theamountofexpenditure bynationalauthorities hasbeenconverted into
EUAataverageexchange ratesfor1978(1EUA=BF/FL40.0611;DKr7.01945
DM2.55607;FF5.73983;fcIRL0.663888;Lit.1,080.22;FL2.75409;
fcUK0.663910).Itmustbestressedthattheresulting figuresarea
roughguideonly.Howevertheydogiveanoverallideaoftherelative
importance ofFundassistance ineachregion.
(2)"EAGGF :aidsfromtheGuidance Sectionaccording toRegulations 17/64/EEC
and355/77/EEC;
EIB:individual loans(pluscreditsgranted fromgloballoans)issued
according toArticle130(a)oftheEECTreaty;
ECSC:loanspursuant toArticles 54and56oftheECSCTreaty.
(3)Point33ofthisreport.
(3)

-33-
69.ThefollowingtablesummarisesregionalFundassistancefortheregions
considered togetherwithanumberofsocio-economic indicators .Asstated
at65,globalamountsofFundassistanceforalleligibleregionsaregiven
inTable5oftheAnnex.
TableNo.8:Fundassistance 1975-1979 andmainsocialandeconomic
indicators
Assistance '75-'79Socio-economic indicators
Region ,TotalIEUAperPopulation (1)[llnemploy-GDPper
'MCIIA I~A X IInturt licou mcrui ricdu
|1,000|Pop./kmjjindex(2)|jindexC3)j
Abruzzi 43.74 ,34.33 1274 113147 45
Basilicata 20.98 33.94 618 62140 39
Calabria 57.08 27.80 2053 136221 «
Campania 202.48 37.79 5357 394152 40
Molise 18.74 !56.61 331 7595 38
Apulia 127.87 33.32 3837 198167 43
Sardinia 83.1752.80 ;1575 6520245.
Sicily 139.71 28.40 4919 191171 42
Ireland 152.25 47.69 3192 45219 49
NorthernIreland 102.05 66.35 1538 109202 64
Greenland 28.67573.40 50 0.1
II
F0D 23.21 19.63 1182 12 • I■ !
Limousin 28.20 38.26 737 4493 87
East.Bavaria 27.30 I14.33
I1904(4)100(4)71(6)98(6)
NorthNetherlands 30.48 !20.32 1500J17598(7)107(7)(8)
jWallonie(5)22.90I7.103224 191155
Average 33.31170j100 100
I(1)1977.
(2)1977Communitylabourforcesurvey.
(3)1975GDPperheadatcurrentpricesandexchangerates.
(4)1979.
(5)Forassistance :aidedareas;forsocio-economic indicators,a
Wallonie.
(6)UpperPalatinate andLowerBavaria. !
(7)Groningen,Friesland,Drenthe.I
I
(8)Thisfigureshouldbereducedbysome10%sincenationalgasbenefits
|thewholecountryandnotonlytheNorthernregion.I

-34-
_ ■... , 16fl|Nl«NE>(I
PRIORITYAIDREGIONSFORTHE$REGIONALFUND
UlTHINEACHMEMBERSTATE(*)'T
(AnaLysedinChapterIV)
ν-ν,ΥΛ&ΤνΊ->1Γ^Λ
BUYAHE WADU0UM
MARTINIQUE «UNION
SAINT
_ITWOUIfs
(*)Asindicatedatpoint67.

-35-
Mezzogiorno (1)
70.Itisnotpossible togiveapreciseindication ofpublicexpenditure
onthedevelopment oftheMezzogiorno .However,theamountofcapital
expenditure bycertainpublicauthorities (2)canbeassessed,very
roughly,fortheperiod1974-1978 ,whenitamounted tosome14,881million
EUA,ofwhichsome6,223million EUAbytheCassaperilMezzogiorno .
Itisinrelation totheseroughfiguresthatCommunity assistance tothe
Mezzogiorno overtheperiodofFundactivity (5years1975-1979 )mustbe
assessed .
Grants
-Régional Fund 890MEUA
-Agricultùral Fund 152MEUA
Loans
-European Investment Bank 1,927.8 MEUA
-NewCommunity Instrument 39.6MEUA
-ECSC 268 MEUA
Régional Fundassistance in1979
71.Regional Fundassistance forthewholeMezzogiorno in1979was378.79
million EUAofwhich30.67MEUAwenttothreeregions (Latium,Marche,Tuscany),
whichareonlypartlywithintheMezzogiorno andwhicharenottherefore
included inthefollowing moredetailed analysis (3).Sometwothirdsofthe
assistance toItalyconcerns projects carriedoutandfinanced bythe
CassaperilMezzogiorno ,thecentralagencyresponsible forMezzogiorno
development .Theremaining thirdisformedbywayofprojects conceived ,
realised andfinanced bytheregional andprovincial authorities orby
otherlocalpublicbodies>therebyenabling realcomplementarity ,
whichisnotalwaysapparent atnational level.Thisformofaid,
virtually non-existent before1977,hasdeveloped considerably overthe
lasttwoyearsfollowing measures undertaken bytheCommission tobring
ittotheattention ofthelocalauthorities .
(1)Point67(2)ofthisreport.
(2)CassaperilMezzogiorno :allexpenses savethosewhichcannotbe
regionalised (e.g.interest rebates);standardcentraladministration ;
expensescarriedoutbytheMinistries ofagriculture andpublicworks;
regions :commitment appropriationsonbudgetestimates .
(3)TheonlyItalianregionoutsidetheMezzogiorno toreceive Fundassistance
in1979wasFriuli-Venezia Giulia (TableNo.5annexed).

-36-
Abruzzi
72.Over theperiod 1974-1978 ,capital expenditure bytheItalian public
authorities canbeestimated very roughly at1,057 MEUA .Ofthis amount ,
515MEUA wasexpenditure bythe Cassa per iIMezzogiorno .
Itisinrelation tothese rough figures that Community assistance over
thefive years ofFund activity must beseen :(1975-1979 ):
Grants
-Régional Fund 44MEUA (1)
-Agricultural Fund -Guidance Section 14MEU
Loans
-European Investment Bank 184.1 MEUA (2)
Régional Fund assistance in1979
73.In1979 ,assistance from theRegional Fund fortheAbruzzi region
represented 4.8 %ofall Fund assistance toItaly .Total contributions
to40projects were 18.32 MEUA ofwhich 6.67 MEUA (36.4 %)were for
industrial activities and 11.65 MEUA (63.6 %)were for infrastructure .
Industrial and service activity
74.Only small projects ,costing less than 10MEUA ,were financed .There were
20ofthese ,representing atotal investment of35.32 MEUA andaiming to
create almost 1>300 jobs .Asfarasthevolume ofinvestments was
concerned ,nonmetallic mineral products were inthe lead ,followed by
chemicals ,extraction ofminerals other than metal andfuels andelectrical
andelectronic engineering .
Infrastructure
75.Financing wasprovided for20projects ofless than 10MEUA ,representing
atotal amount of32.12 MEUA .These projects involved mainly water
supply anddrainage .
(1)This amount does notinclude assistance formultiregional projects also
ofinterest tothe Abruzzi (see table 5inthe Annex ).
(2)Individual loans :157.7 .MEUA ,ofwhich 9.2MEUA lent toMolise and17.2
MEUA jointly toMolise andLower-Latium and0.9MEUA toLatium andMolise ;
allocation toglobal loans :26.4 MEUA .

BasiLicata
76.Overtheperiod1974-1978,capitalexpenditure bytheItalianpublic
authorities canbeestimated veryroughlyat985MEUA.Ofthisamount,
499MEUAwasexpenditure bytheCassaperilMezzogiorno .Itisin
relation totheseroughfiguresthatCommunity assistance overthefive
yearsofFundactivity mustbeseen(1975-1979 ):
Grants
-Régional Fund 21MEUA(1)
-Agricultural Fund-Guidance Section 18MEUA
Loans
-European Investment Bank 101.4MEUA(2)
Régional Fundassistance in1979
77.In1979,assistance fromtheRegional FundfortheBasilicata regionwas
1.7%ofallFundassistance toItaly.Totalcontributions to139
projects were6.8MEUAofwhich850,000 EUA(12.5%)wereforindustrial
activities and5.95MEUA(87.5%)wereforinfrastructure .
Industrial andserviceactivity
78.Onlysmallprojects,costinglessthan10MEUAwerefinanced .Therewere
5ofthese,representing atotalinvestment of4.39MEUA.Theseprojects
concerned thecreation ormodernizing ofhotels,campingsitesandtourist
villages inPotenzaprovince,aimingtocreatesome80jobsandtomain­
tainsome60jobs.Itshouldbenotedthatthese5projects actually
include 16smallprojects,eachwithanindividual investment cost
whichdidnotexceedtheeligibility threshold laiddownby
theRegulation :thiswasarareexampleofpossible regrouping ,permitted
bytheamendedRegulation (2),ofsmallprojects linkedgeagraphicalljc
andfinancially .
Infrastructure
79.Financing fromtheFundwasprovided for134projects oflessthan10
MEUA,representing atotalamountof18.49MEUA.Asfarasthevolume
ofinvestment wasconcerned,thesewerepublicserviceinfrastructure
projects,involving watersupplyandroads.
(1)Thisamountdoesnotincludeassistance formultiregional projects also
ofinterest toBasilicata (seetable5intheAnnex).
(2)Individual loans:96.4MEUA,ofwhich59.9MEUAtoindustrial loansin
bothApuliaandCalabria;allocation togloballoans:5.0MEUA.
(3)Article4.1.a.oftheRegulation .

-38-
Calabria
80.Overtheperiod1974-1978,capitalexpenditure bytheItalianpublic
authorities canbeestimatedveryroughlyat1,419MEUA.Ofthisamount,
764MEUAwasexpenditure bytheCassaperilMezzogiorno .Itisin
relationtotheseroughfiguresthatCommunityassistance overthefive
yearsofFundactivitymustbeseen(1975-1979): .
57MEUA(1)
11MEUA
Loans ..• ,
-EuropeanInvestment Bank, 141.4MEUA(2)
RégionalFundassistance in1979
81.In1979,assistance fromtheRegionalFundfortheCalabriaregionwas
>5.4%ofallFundassistancetoItaly.Totalcontributions to213 .
projectswere21.21MEUAofwhich810,000EUA(3.9%)wereforindustrial
activities and20.40MEUA(96.1%)wereforinfrastructure .
Industrial andserviceactivity
82.Onlysmallprojects,costinglessthan10MEUA,werefinanced.Therewere
5ofthese,representing atotalinvestmentof4.28MEUA,aimingtocreate
200jobs.Asfarasthevolumeofinvestments wasconcerned,nonmetallic
mineralproductswereinthelead,followedbyleatherandtimberproducts.Grants
-RégionalFund
-Agricultural Fund-GuidanceSection
(,1)-Thisamountdoesnotincludeassistanceformultiregional projectsalso
ofinteresttoCalabria(seetable5intheAnnex).
(2)Individual loans:134.0MEUA,ofwhich75.2MEUAtoloansinBasilicata,
ApuliaandSicily;allocationtogloballoans:7.4MEUA.

-39-
Infrastructure
83.Amajorprojectof15.97MEUAreceivedFundassistance of6.24MEUA.This
projectinvolvesbuilding afastroadacrosstheCalabrianmountains.A
firstsectionreceived Fundassistance of7.45MEUAin1978.Fund
assistance wasalsograntedtothetuneof13.53MEUAto171projectsof
lessthan10MEUA.Totalcostoftheseprojects was43.87MEUA;they
involvemainlyroadconstruction and.improvement,watersupplyandpublic
serviceinfrastructure .Lastly,Fundassistance of631,000MEUAwas
grantedto36publicinfrastructure projectsinlessfavouredagricultural
areas(1);theseweremainlyforruralroads.
Campania
84.Overtheperiod1974-1978,capitalexpenditure bytheItalianpublic
authorities wasestimatedveryroughlyat2,342MEUA.Ofthisamount,
1,166MEUAwasexpenditure bytheCassaperilMezzogiorno .Itisin
relationtotheseroughfiguresthatCommunityassistance overthefive
yearsofFundactivitymustbeseen(1975-1979):
Grants
-RégionalFund 203MEUA
-Agricultural Fund-GuidanceSection 13MEUA
Loans
-EuropeanInvestment Bank 268,3MEUA(2)
RégionalFundassistance in1979
85.In1979,assistance fromtheRegionalFundfortheCalabriaregionwas
19%ofallFundassistance toItaly.Totalcontributions to163projects
were73.17MEUA,ofwhich12.01MEUA(16%)wereforindustrialactivities
and61.16MEUA(84%)wereforinfrastructure .In1979,Campaniareceived
moreFundassistance thananyotherItalianregion.
(1)WithinthemeaningofDirective 75/268/EEC.(Article4.1.d.oftheFund
Regulation).Itshouldbenotedthatthefigure(36projects)instanced
atpoint83underestimates thenumberofprojectsinmountainareas
financedfromtheFundsincesomeprojectswerethesubjectofgrant
decisionsaccordingtoArticle4.1.b.Thisalsoappliestosomeother
Mezzogiorno regions.
(2)Individual loans:235*7MEUA;grantstogloballoans:32.6MEUA.

-40-
Industrial andservices activity
86.Onlysmallprojects,costinglessthan10MEUA,werefinanced.Therewere
51ofthese,representing atotalinvestment of64.98MEUA,aimingtocreate
some2,500jobs.Asfarasthevolumeofinvestments wasconcerned,
processing ofnonmetallic minerals wasinthelead,followed bymachinery
andengineering ,motorvehicles andmotorvehiclespareparts.
Infrastructure
87.Financing wasprovided fortwoprojects ofmorethan10MEUA,representing
'atotalcostof49.97 MEUAand12.53MEUAFundassistance .Oneisforthe
construction ofaraillinktoservicetheindustrial areasofNaolesand
Caserta,theotherconcerns planning andpreparation oftheindustrial
estateofValleUfitaintheAvellino province .Fundassistance alsowent
to110projects oflessthan10MEUA.Totalcostoftheseprojects was
136.29 MEUAandFundassistance granted was48.63MEUA.Sofarasthe
volumeofinvestments wasconcerned,drainage wasinthelead,followed
bywatersupplyandroadinfrastructure .Themajorrailproject andone
ofthesmallprojects (onmodernising atramway andanurbanfunicular
railway)fallwithintheframework oftheintegrated operation .forthe
regional development oftheNaplesarea(1).
Molise
88.Overtheperiod1974-1978,capitalexpenditure bytheItalianpublic
authorities wasestimated veryroughlyat196MEUA.Ofthisamount73MEUA
wasexpenditure bytheCassaperilMezzogiorno .Itisinrelation to
theseroughfiguresthatCommunity assistance overthefiveyearsofFund
activity mustbeseen(1975-1979 ):
Grants
-Régional Fund .19MEUA
-Agricultural Fund-Guidance Section 1.8MEUA
-European Investment Bank .62.8MEUA
(1)Point64ofthisreport.
(2)Individual loans:58.6MEUA,ofwhich9.2MEUAforaloanintheAbruzzi,
18.1MEUAfortwoloansintheAbruzziandLower-Latium ;allocation to
globalloans:4.2MEUA.

-41-
Régional Fundassistance in1979
89.In1979,assistance fromtheRegional FundfortheMoliseregionwas3.5%
ofallFundassistance toItaly.Totalcontributions to159projects in
IDlESStructure were13.45MEUA.
Noprojectofmorethan10MEUAwasfinanced in1979.Fundassistance of
13MEUAwentto151projects oflessthan10MEUArepresenting atotal
investment of38.44MEUA.Sofarasvolumeofinvestment wasconcerned,
thiswasmainlyforplanning andpreparation ofindustrial estates,water
supplyanddrainage .However Fundassistance wentalsoto8publicinfra­
structure projects inlessfavouredagricultural areas(1);theamount <
was450,000EUA.andwentmainly tobuildingruralroadsandtowater
andelectricity supply..,
Apulia
r-
90.Overtheperiod1974-1978,capitalexpenditure bytheItalianpublic
authorities (2)wasestimated veryroughlyat2,143MEUA.Ofthisamount,
1,273MEUAwasexpenditure bytheCassaperilMezzogiorno .Itisin
relation totheseroughfiguresthatCommunity assistance overthefive
yearsofFundactivity mustbeseen C1975–1979):
Grants
-Régional Fund 128MEUA(2)
-Agncultural Fund-Guidance Section 16MEUA
Loans
-European Investment Bank 548.8MEUA(3)
-NewCommunity Instrument 39.6MEUA
-ECSC 261 MEUA
C1)WithinthemeaningofDirective 75/268/EEC.
(2)Theamountdoesnotincludeassistance formultiregional projects also
ofinterest toApulia (seetable5intheAnnex).
(3)Individual loans:529.9MEUA,ofwhich90.4MEUAtoloansjointly
interesting Basilicata andSicily;allocation togloballoans:22.9MEUA.

-42-V
V.
Régional Fundassistance in1979
91.In1979,assistance fromtheRegional FundfortheApuliaregionwas
9.6%ofallFundassistance toItaly.Totalcontributions to75projects
were37.12MEUAofwhich8.52MEUA(23.2%)wereforindustrial activities
and28.60MEUA<76.8%)wereforinfrastructure .
Industrial andserviceactivity
92.Onlysmallprojects,costinglessthan10MEUAwerefinanced .Therewere
38ofthese,representing atotalinvestment of47.20MEUA,aimingto
create1,600jobs.Asfarasvolumeofinvestment isconcerned,foodand
drinkprojects wereinthelead,followed bymetalworkandprocessing
ofnonmetallic minerals .
Infrastructure
93.Financing fromtheFundwasprovided for3projects ofmorethan10MEUA.
Theyconcerned theconstruction ofaplurisectoral wharfintheindustrial
portofTaranto,theinstallation ofvariousportservices inthe
industrial portofManfredonia andtheinstallation ofawatersupplynet-*
workanddrainage inthetownofBari.Assistance granted was24.84MEUA
andtotalinvestment was90.76MEUA.Fundassistance of1.79MEUAwentto
aprojectoflessthan10MEUA(6*17MEUA).Thiswastobuildcentresfor
thecollection anddisposal ofsolidurbanwaste.Fundassistance also
wentto33publicinfrastructure projects inlessfavouredhillfarming
areas;thiswas1.97MEUArepresenting atotalinvestment of6.75MEUA.
Projects financed weremainlytoinstaltelephones andtoimproverural
roads. ' •••^ -
Sardinia
94.Overtheperiod1974-1978/capitalexpenditure bytheItalianpublic
authorities canbeestimated veryroughlyat1,255MEUA;ofthisamount
791MEUAwasexpenditure bytheCassaperiIMezzogiorno .-Itisin
relation totheseroughfiguresthatCommunity assistance overthe
fiveyearsofFundactivity mustbeseen£1975-1979 ): •

-43-
Grants
-RégionalFund
-AgriculturalFund-GuidanceSection83MEUA
12MEUA
Loans
EuropeanInvestment Bank 179.8MEUA(1)
RégionalFundassistance in1979
95.In1979,assistance fromtheRegionalFundforSardiniawas4.0%ofall
Fundassistance toItaly.Totalcontributions were15.69MEUAofwhich
1.83MEUA(11.7%)wereforindustrialactivities and13.85MEUA(88.3%)
wereforinfrastructure .
Industrial andserviceactivity
96.Onlysmallprojectsoflessthan10MEUAwerefinanced.Therewere12of
these,representing atotalinvestment of9.53MEUA,aimingtocreatesome
350jobs.Asfarasvolumeofinvestment wasconcerned,metalmanufactures
wereinthelead,followedbyelectrical andelectronic engineering and
timberindustryproducts.
Infrastructure
97.FinancingfromtheFundwasprovidedfor170projectsoflessthan10
MEUA;theseweremainlyroadinfrastructure ,watersupplyworksand
drainage.Fundassistance was13.82MEUArepresenting totalinvestments
of53.91MEUA.Fundassistance wasalsoprovidedforapublicinfra­
structureprojectinlessfavouredagricultural areas(1).Assistance
was30,000EUAforbuilding aruralroad.
98.Overtheperiod1974-1978,capitalexpenditure bytheItalianauthorities
canbeestimatedveryroughlyat4,584MEUA.Ofthisamount,1,081MEUA
wasexpenditure bytheCassaperilMezzogiorno .Itisinrelationto
theseroughfiguresthatCommunityassistance overthefiveyearsofFund
activitymustbeseen(1975-1979):
(1)Individual loans:164.5MEUA;grantstogloballoans:15.3MEUA.
(2)WithinthemeaningofDirective 75/268/EEC.Sicily

-44-
Grants
-Régional Fund
-Agricultural Fund-Guidance Section140MEUA
20MEUA
Loans
-European Investment Bank
-ECSC441.2MEUA(1)
6.5MEUA
Régional Fundassistance in1979
99.In1979,Regional Fundassistance for144projects inSicilywas15.1A
ofallFundassistance toItaly.Totalcontributions were58.17MEUAof
which6.42MEUA(10.8%)wereforindustrial activities and51.75MEUA
<89.2%)wereforinfrastructure .
Industrial andserviceactivity
100.Onlysmallprojects,costinglessthan10MEUAwerefinanced.Therewere
34ofthese,representing atotalinvestment of35.21MEUA;representing
atotalinvestment of35.21MEUAandaimingtocreatesome1,100jobs.
Asfarasthevolumeofinvestment wasconcerned,metalmanufactures were
inthelead,followed byfoodanddrinkandelectrical andelectronic
engineering .
Infrastructure
101.Financing fromtheFundwasprovided for5projects ofmorethan10MEUA,
representing atotal'amount of151.03 MEUA.Thesewereforbuilding a
degassing stationatMessina (thefirstprojectpromoted byregional
authorities ,financed fromtheFund),forroadworkslinkingtheindustrii
estatesofCatania andMisterbianco (anearlierphaseofthesameproject
received Fundassistance of5.2MEUAin1977),preparing andequiping the
industrial portareaofSyracuse andurbandevelopment intheindustrial
areasofRagusa>GelaandLicatainCaltanissetta province .Theinvest­
mentsatSyracuse andCaltanissetta fallwithinanimportant special
projectoftheCassaperilMezzogiorno forindustrial develop­
mentofsouth-east Sicily;grantdecisions havenowbeenappliedto40
separate investments withintheframework ofthisspecialproject,
representing atotalamountofnearly80MEUA.Assistance in1979was
37.37MEUA.
(1)Individual loans:420.2MEUA,ofwhich62.8MEUAtoloansjointly
involving ApuliaandCalabria ;grantstogloballoans:21MEUA.

-45-
Fundassistance wentto4projects ofLessthan10MEUAandwereforport
andwatersupplyworks.Assistance was4.96MEUA,totalinvestments 22.79
MEUA.101publicinfrastructure projects werefinanced inthelessfavoured
hillfarmingareas(1)for9.42MEUA.Theprojects wereessentially for
roadandelectricity supplyworksinvolving totalcostsof33.98MEUA.
Multiregional projects inItaly
102.3investment projects ir\infrastructure ofmorethan10MEUAinvolving
twoormoreregionsoftheMezzogiorno werethesubjectofagrantof
theFundin1979.
Firstaprojectconcerned generalplanning forthe-installation ofa
pipeline toimportnaturalgasintoItalyfromAlgeria andworksrequired
priortouseofthisgasinMezzogiorno regions,aswelIasthelinkingofthe
mainimportpipeline withthedistribution networkinNorthern Italy.
Totalinvestment is3,189.09 MEUAandFundassistance in1979was43.86
MEUA.TheCommission expectsfurtherphasesofthisverymajorprojectto
bethesubjectofapplications forFundassistance incomingyears.
-Second,worksinvolving theconstruction ofafastroadfortheinter-
–regional trans-Appenine highwaylinkingLatiumwithAbruzzi andrepresenting
atotalcostof47.70 MEUAreceived Fundassistance of11.58MEUA.
Third,theFundprovided furtherassistance infinancing worksonaqueduct
planning andbuilding adamandreservoir ontheLoconeriver;theseworks
fallwithintheframework ofthespecialprojectoftheCassaperil
Mezzogiorno fortheusebyseveralsectorsofthewatersupplies ofthe
ApuliaandBasilicata regions.TheFundcontribution was42.65MEUAand
totalcostwas158.05 MEUA.Thiswasthe5thgrantdecision onFund
assistance forthisspecialproject;totalassistance isnow
74MEUAfor18investment projects (2).
Ireland
103.Overtheperiod1975-1978,theIrishauthorities spent850MEUAongrants
tohelpindustry.Inaddition,publicinfrastructure investments
amountedto.«tptal of1,519MEUA.Community assistance ,whichmustbe
seeninrelation tothisnational expenditure ,wasasfollowsoverthe
period1975-1979 :
Λ
Grants
-Régional Fund 153MEUA
-Agncultural Fund-Guidance Section 49MEUA
Loans
ι
-European Investment Bank 547.7MEUA(3)
-NewCommunity Instrument 86.6MEUA
-ECSC 29'MEUA
(1)WithinthemeaningofDirective 75/268/EEC.
(2)Thisimportant groupofprojects alsoreceived in1979oneofthefirst
loanstobeissuedbytheNewCommunity Instrument .
(3)Individual loans:522.7MEUA;grantstogloballoans:25.0MEUA.

'è
-46-
Régional Fundassistance in1979
104.In1979,Fundassistance infavourof135projects locatedinIreland
was62.19MEUA,ofwhich29.47MEUA(47*2%)wereforindustrial
activities and32.72MEUA(52.8%)forinfrastructure . .
Industrial andserviceactivity
105.6projects ofmorethan10MEUAwerefinanced,theFundcontributing
16.93MEUAtoatotalinvestment of133.70 MEUA.Theprojects were
expected tocreatemorethan5,300jobs.Projects financed were:
-twonewfactories locatedinCountyKildare,oneforthemanufacture
ofphotographic equipment ,batteries andfilms,theotherforthe
manufacture ofelectrical switches,circuits andequipment ;
-extending aglassfactoryinWaterford County (lighting andnovelty);
-installing afactoryforthemanufacture ofplasticgoodsinCounty
Donegal;.
-anewfactoryforthemanufacture oflinotypeprinting andancillary .
equipment inDublin;
-anewfactoryfortheoutputofsoftchewing guminCountyWexford.
Inaddition,32smallerprojects werefinanced representing atotalinvestment of
88.33MEUAandexpected tocreatemorethan6,200jobs.Asfarasvolume
ofinvestment wasconcerned,engineering andengineering equipment were
inthelead,followed byelectrical andelectronic engineering andmetal
manufacture . : \
Infrastructure
106.Twoprojects ofmorethan .10MEUAwerefinanced,onebeingthebuiIdingofthe
Liffeyconduitforsupplying watertothetownofDublinandtheother
beingthethirddevelopment phaseforCorkport.Thevolumeofinvest­
ment(totalcost)was22.48MEUA;theFundcontributed 4.59MEUA.Fund
grantswerealsoprovided for81projects oflessthan10MEUA,
representing atotalinvestment of87.56MEUA.Fundassistance was26.24
MEUA.Involumeofinvestments ,telephone installation wasinthelead,
'followed bydrainage androadconstruction .Lastly14publicworks

-47-
projectswerefinancedinLessfavouredagricultural areas(1)towhich
theFundcontributed 1.89MEUA.__These weremainlyfortelephoneinstallation ,
watersupDlyanddrainagewherethetotalinvestment was6.04MEUA.
NorthernIreland
107.Industryreceived atotalof340MEUAinnationalaidduringtheperiod
1975-1978.Public(official)investments ininfrastructure assisting
economicdevelopment (andthecivilianpopulationingeneral)represented
atotalofsome420MEUAduringthetwofinancialyears1975/76and
1976/77.Itisbycomparisontothesefiguresthatthesignificance of
Communityassistanceintheregionovertheperiod1975-79canbeappreciated .
RégionalFundassistance in1979
108.In1979,Fundassistance toNorthernIrelandrepresented 16.4%ofall
Fundassistance intheUnitedKingdom.Thetotalcontribution to16
projectscameto42.62MEUA,ofwhich16.44MEUA(38.3%)wenttoindustrial
activityand26.18MEUA(61.7%)toinfrastructure .Grants
-RégionalFund
-Agricultural Fund-Guidancesection102MEUA
16MEUA
Loans
EuropeanInvestment Bank 105.9MEUA(2)
(1)
(2)Withinthe
IndividualmeaningofDirective 75/268/EEC.
loans:105.6MEUA;grantstogloballoans:0.3MEUA.

-48-
Industrial andserviceactivity
109.Twoprojects ofmorethan10MEUAwerefinanced,representing atotal
investment ofmorethan74.89MEUAandFundaidof14.72MEUA.These
twoprojects wereexpected tocreatesome2,500jobs.Theyinvolved
building afactoryforsportsmotorvehicles atDunmurry andafactory
forsafetybeltsatBelfast.
Fundassistance wasalsoprovided for3projects oflessthan10MEUA.The
totalinvestment intheseprojectsis8.29MEUAandtheyareexpectedto
createmorethan110jobsandtomaintain morethan112jobs.Involumeof
investments ,thetimberindustry wasinthelead,followedbyengineering and
engineering equipment .
Infrastructure
110.Fundassistance wasprovided for3projects ofmorethan10MEUAto
whichtotalassistance fromtheFundwas20.80MEUA.Totalinvestments
were498.02 MEUAforthefinalphaseofaninvestment programme forthe
Belfast Seymourtelephone exchange,extension ofBelfastAldergrove
airport (2ndgrantdecision),theinstallation oftwogroupsofelectricity
generators andpartofthelinkedsysteminthenewelectricalpowerstationof
Kilroot,nearBelfast.Fundassistance tothelatterprojects tookthe
formforthefirsttimesince1975ofaninterest rebateof3percentage
pointsonaloanfromtheEuropean Investment Bank,noStatehavingmade
useofthisaidfacility previously .
Fundassistance wasprovided for8projects oflessthan10MEUA,
representing atotalinvestment of36.07MEUAto whichtheFund
contributed 5.38MEUA.Asfarasthevolumeofinvestments wasconcerned,
industrial estatedevelopment wasinthelead,followed byroadworks
andtelephone equipment .
Greenland .
111.Intheyears1975-1978,theMinistry forGreenland invested some195
MEUAinhousing,electricity ,transport andcommunications .Itis
bycomparison tothesefiguresthatthesignificance ofCommunity
assistance toGreenland overthe1975-1979 periodcanbeappreciated :
I

-49-
Grants
-RégionalFund 29MEUA
-Agricultura !.Fund-GuidanceSection 1.2MEUA
Loans
-EuropeanInvestment Bank 28.7MEUA
RegionalFundassistance in1979
112.In1979,FundassistancetoGreenlandrepresented 82.7%ofits
contribution toDenmark.Totalaidto51projects was9.21MEUAand
went,asinpreviousyears,entirelytofinanceinfrastructure projects.
TheCommission adoptedasecondgrantdecisioninfavourofaproject
ofmorethan10MEUAonbuildinganairportatGodthab,representing
acostof11.51MEUAtowhichtheFundcontributed 1.03MEUA.Finance
wasalsoprovidedfor50projectsoflessthan10MEUA,representing
atotalinvestment of26.76MEUA.Asfarasvolumeofinvestment was
concerned,airportinstallation wasinthelead,followedbytele­
communications andportinstallation .
Frenchoverseasdepartments
113.Thefollowingfigures,whileveryincomplete,indicatethesizeof
assistance grantedbythenationalauthorities totheeconomicdevelop­
mentofthefourdepartments :
-specialtaxbenefitsforproductive
investments (1976-77) 17.3MEUA
-equipmentgrants(1975-78) 19.3MEUA
-investment ininfrastructure (1974-1976 )30.7MEUA
Communityassistance duringthefiveyearsofFundactivity(1975-79)
hasbeenasfollows(million EUA):
Guadeloupe Martinique RéunionGuyaneTotal
Grants
-RegionalFund 6.89 7.365.353.6123.21
-Agricultural Fund,
GuidanceSection 0.65 6.34 2.040.759.78
-EuropeanDevelopment
Fund ---/1.55//Ï.557
Loans
-EuropeanInvestment
Bank(1) 0.70 --0.501.20
./.
(1)LoansgrantedfromEuropeanDevelopment Fundresources.Bydecisionofits
BoardofGovernorsof18March1980,theE.I.B.maynowactintheF0Don
thesameconditions asinotherdeoartments ofFrance.

-50-
Régional Fund assistance in1979
114 .In1979 ,Fund grants totheoverseas departments represented 1.2%(1)
ofall Fund assistance toFrance .Total contributions to17projects
were 1.85 MEUA ,ofwhich 1.00 MEUA (54.1 /%)went toindustrial activity
and850,000 EUA (45.9 %)toinfrastructure .Thebreakdown was asfollows :
0.13 MEUA forGuadeloupe ,0.82 MEUA forGuyane ,0.01 MEUA forMartinique and
0.89 MEUA for Reunion .v
Industrial and service activity
?
115 .Only projects ofless than 10MEUA were financed ;there were 14,
representing atotal investment of9.91 MEUA ,andshould create some
370jobs .Astovolume ofinvestment ,thetimber industry was inthe
lead followed bythesugar industry andtheextraction ofminerals other
than metal and fuel .
Infrastructure ■
116 .3projects ofless than 10MEUA were financed where thetotal investment
was3.5MEUA .They concerned general aircraft parking ,avocational
training centre foradults andport works .
Limousin
117 .During theperiod 1975-1977 ,theFrench authorities spent 8.7MEUA on
regional development inLimousin .Inthe same years andwithin the
framework ofthenational road improvement plan ,programme authorisations
forthis region were 182.5 MEUA .Itisbycomparison tothese figures that
thesignificance ofCommunity assistance toLimousin over theyears
1975-1979 canbeappreciated :
-Régional Fund 28MEUA
-Agricultural Fund -Guidance Section 2.7MEUA
(1)Point 151ofthis report .

-51-
Régional Fundassistance in1979
118.In1979,Fundassistance toLimousin was5.8%ofallFundassistance
toFrance.Totalcontributions to5projects were9.23MEUA,ofwhich
300,000 EUA(3.1%)wenttoindustrial activity and8.93MEUA(96.9%)
toinfrastructure .
Industrial andserviceactivity
119.Only2projects,bothoflessthan10MEUA,werefinanced,representing
atotalinvestment of2.35MEUA.Theseprojects whichinvoIvedextendinga
factoryformanufacturing engineering sparepartsandbuilding a
factorytoproducefibresandmineralsheets;wereexpected to
createsome150newjobs.
Infrastructure
120.Fundassistance wenttofinancing twoprojects ofmorethan10MEUA
foratotalcontribution of8.84MEUA.Thesewerelargeinvestments in
roadinfrastructure (MassifCentralroadplan)andtelecommunications .
Totalcostswere30.02MEUA.Agrantof31,360 EUAwenttoaproject
costinglessthan10MEUAconcerning avocational trainingcentre.
TheNorthern Netherlands (1)
121.Capitalexpenditure bytheNetherlands authorities ontheNorthern
regionovertheperiod1975-1978 was111MEUAbywayofinvestment
grantstoindustry andsome89MEUAtoinfrastructure improvement .
Community grantsduringtheyears1975-1979 shouldbeseenagainstthis
amount.Theywere:
Grants
-Régional Fund 31MEUA
-Agricultural Fund-Guidance Section 10MEUA
Régional Fundassistance in1979
122.In1979,Fundassistance totheNorthern Netherlands was70.84of
total -assistance fromtheFundtotheNetherlands .
(1)TheaidedregionoftheNorthern Netherlands (Northern incentives region)
includes theprovinces ofGroningen ,Friesland,DrentheandtheNorth-
EastandNorthWestareasoftheprovince ofOverijssel .

-52-
7.97MEUAweregranted fromtheFundto5smallprojects ofinfra­
structure,representing atotalinvestment of28.29MEUA.4projects
dealtwithnewroadlinksandonewithurbandevelopment androadsin
anindustrial area.
EastBavaria (1)
123.Capitalexpenditure bytheFederalGermanauthorities onbehalfofEast
Bavaria,aslaiddowninregional development programmes for1975-1979,
was236MEUA,ofwhich165MEUAwenttoproductive investment and71
MEUAtoimproveinfrastructure .Itisinrelation totheseestimates
ofexpenditure thatCommunity assistance tothisregionoverthesame
periodmustbeseen:
Grants *
-Régional Fund 27.3MEUA
Régional Fundassistance in1979 ,
124.In1979,Fundassistance to22projects inthisprogramme regionwas
10.9%oftotalFundassistance toGermany.Ittotalled 6.81MEUA,of
which2.12MEUA(31.1%)wenttoindustrial activity .and4.69MEUA
(68.9%)toinfrastructure .
Industrial andserviceactivities
125.Onlyprojects oflessthan10MEUAwerefinanced .Therewere9ofthese,
representing atotalinvestment of31.91MEUAandexpected tocreate
nearly480jobs.Asregardsthevolumeofinvestment ,themanufacture
ofhalf-finished timberproducts wasinthelead,followed bymachinery
forthefoodindustry andmotorvehicles .
Infrastructure
126.Fundassistance wasprovided for13projects oflessthan10MEUA.Total
investment was17.37MEUAandinvolved mainlyplanning andpreparation
ofindustrial estatesandthecreation ofvocational training centres.
(1)TheaidedregionofEastBavaria (EastBavariaDevelopment Area)is
mainlyco-terminous withthetwoadministrative districts ofUpper
Palatinate andLowerBavaria;abouthalfthesurfaceareaisadjacent
totheCzechoslovak frontier .

-53-
Wallonie
127.OnlycertainareasofWallonie areeligible foraidsforregionalpolicy
purposes (1).Duringtheyears1975-1978 ,theseareasreceived 366MEUA
bywayofaidtoindustrial investment underBelgianLaws
governing economic expansion .Additionally ,publicinvestment onbehalf
ofindustrial estates was106MEUAin1974to1978.Itisnotpossible
tocalculate theproportion ofotherpublicinvestment ininfrastructure
assisting economic development :however,itcanbeindicated thatin1978,
investments intransport infrastructure aloneweresome400MEUAforall
Wallonie .Itisbycomparison tothesefiguresthatthesignificanceof
Community assistanceoverthefiveyearsofFundactivity (1975-1979 )can
beappreciated .
23MEUA
21MEUA
Loans
-European Investment Bank 11.0MEUA(grantstoglobal
loans)
-ECSC 43MEUA
Régional Fundassistance in1979
128.In1979,Walloniereceived Fu/idassistance of9.08MEUA,representing
totalFundassistance toBelgium ^5.54MEUA(60.9%)wenttoindustrial
activity and3.54MEUA(39.1%)toinfrastructure .
Industrial activity
129.Fundassistance wasprovided foroneprojectofmorethan10MEUA
whichrelatedtothecreationofafactorytoproduceinsulating materials
intheprovince ofLiege.Totalinvestment was40.74MEUAandFund
assistance was4.01MEUA.Thisinvestment wasexpected tocreatemore
than200jobs.Fundassistance alsowentto3projects oflessthan10
MEUA,representing atotalinvestment of15.04MEUA.Theseprojects
involvethecreation ofacentreforresearch anddevelopment of.
consumer products,renovation ofatradecentreandmodernising food
business .
Infrastructure
130.Fundassistance of2.02MEUAwentto10projects oflessthan10MEUA.
Theseprojectsallinvolveworksconnected withtheplanning andpreparation
ofindustrial estates,thetotalcostbeing7.79MEUA.TheFundalsocontributed
1.52MEUAto3publicinfrastructure projects inlessfavouredagricultural
areas.Thesewereforruralelectricity andwatersupplyworks.Grants
-Régional Fund
-Agricultural Fund-Guidance Section
(1)Point66ofthisreport.

-54-
ChapterV:PAYMENTS ANDCONTROLS
Payments .
I
131.Totalpaymentsin1979rosebyrathermorethan100%inrelationtothe
previousyeartoreach513.15MEUAcomparedwith254.89MEUAjn1978.In
fact,paymentapplications were527.23MEUAin1979andweretherefore
rathermorethanpaymentsactuallymade.
Thefollowingtableshowsthesituation byMember .Statewithregardto
commitmentliquidation .Table7intheAnnexadds,foreachMemberState,
detailsofpaymentsin1979subdivided byyearofcommitment .
TableNo.9:Paymentsin1979
MemberState1975-1977
commitments
notpaid
outat
31.12.19781979
commitments1979
paymentsCommitments
madebutnot
paidat
31.12.1979Paymentsas
%ofcommit­
mentsend
1979
MEUA|MEUA^MEUA MEUA
Belgium 13.16 jj8.93I
3.10 .18.99 51.6
Denmark .9.99-10.57 9.13 11.43 66.4
Germany 52.91 57.05 46.03 63.93 68.7 !
France 140.57 158.75 |103.61 195.71 54.2 I
Ireland 37.46 61.24:32.89 j65.81 55.1
Italy 261.28 375.97 143.72 493.53 44.4
Luxembourg .'0.96 0.81 0.30 1.47 49.8
Netherlands 15.93 11.24 j8.64 18.53 61.6
UnitedKingdom 173.50 255.70
l165.73 263.47 58.1
TOTAL 705.76 940.26 513.15 ,1,132.87 53.2
(1)Accountbeingtakenofdecommitments andadjustments duetoEUAexchange
ratevariations .
132.Theproportionofcommitments paidoutbytheendof1979,i.e.53.2%of
totalcommitments compareswith53.3%attheendof1978.Whiletherate
ofpaymentsforBelgium,IrelandandLuxembourg wassomewhatslow.Italy,
with44.7%,waswellbelowtheaverage.Ontheotherhand,therewere
notableincreasesforDenmark,theFederalRepublicofGermany,France,the
Netherlands andtheUnitedKingdom. \
133.Paymentsactuallymadein1979(513.15MEUA)weremorethandoublethose
madein1978(254.89MEUA)asshowninthefollowingtable.

-55-
TableNo.10:Paymentappropriations
Year Paymentappropriations Payments made
1975 150MUA 90.67 MUA
1976 |V300MUA 277.33 MUA
1977 400MUA 372.51 MUA
1978 525MEUA 254.89 MEUA
1979 483MEUA 513.15 MEUA
In1979,theCommission wasabletopaymorethantheamountallocated in
thebudgetbecause asubstantial amountwascarriedforward fromthe
previous financial year.While,asawhole,thesituation showedanet
improvement on1978,itisstilltruethat,asstatedbytheCommission (1),.
therewasstillabalanceof323MEUAonpaymentappropriations (353MEUA)
tobecarriedforward from1978to1979inviewofthespecialcircumstances
affecting therythmofpayments in1978(2).
134.Measures wereputintopractice in1979toaccelerate payments,whichmay
be75%ofpublicexpenditure plannedforagiveninvestment .Thereal
impactofthesemeasures onthetotalvolumeofpayments inthefinancial
yearishardtocalculate ;itisclearlylessthanthetotalamountof
accelerated payments madesince,forinstance,aprojectforwhichan
accelerated paymentismadecanstillbethesubjectofafinalpayment
bytheendofthesameyear-payment whichwouldhavebeenmadeinany
case.Thenetimpactofthemeasures in1979maybeestimated at150
MEUA,buteventhisestimateisprobably toohigh.Indeed,national public
expenditure ,whichdecidespayment fromtheFund,haswithoutdoubt
continued toincrease foracertain numberofprojects betweenthedate
ofaccelerated paymentandtheendofthefinancial yearwithoutthis
increase havingoccasioned arequestfornormalpayment,sincethisis
covered bytheaccelerated payment .
Itshouldalsobenotedthat56%ofcommitments in1979weredecided in
theverylastdaysoftheyear;veryfewofthesecommitments wereable
toensureaccelerated payments duringthefinancial yeartheninprogress .
Itwouldtherefore bepremature todrawfinalconclusions astotheeffect
ofthisfirstexperience ,withitsstarting problems,onpayment
acceleration .
p
Controls
135.TodatetheCommission hassoughttokeeptothetargetofinspecting
10%ofassistedprojects annually .Forthewholeperiodof1975-1979,
639of6,348ofprojectsassisted between1975-1978 havebeenthesubject
ofon-the-spot-checks.
(1)FourthannualreportoftheFund,point92.
(2)FourthannualreportoftheFund,point93.

-56-
DuringthefirstyearsofFundactivity,theaimsoughtwasexpressed
inthenumberofprojectssincethereisacertain .linkbetweenthenumber
ofprojectsaidedandthevolumeofaidgranted,withthecorrectuseof
thataidbeingtherealpurposeofinspection .Theamountofaidgranted
andofinvestment involvedhavenotprovedapplicable asselectioncriteria
duetoinadequatedetailedinformation .
'WiththeincreaseinFundendowment andofthenumberofprojectsaided,
itisnowcertainthatpracticaldifficulties willarise,inreaching
thesetargets,astheyarefixedatpresent(1).Inanyevent,
thestandardofinspection shouldnotbesacrifiedtoobtainapurely
quantitative result.
136.In1979,itwasstillfeasibletoachievethegeneraltarget.181on-the-
spotchecksweremade;thepercentageofprojectsinspectedinallMember
StatessincethecreationoftheFundroseto10.06%oftotalprojects
(6,438)financedfrom1975to1978;thiscompareswith9.6%in1978and
9.3%in1977.,
Table11following showsthenumberofinvestmentprojectsinspectedsince
theFundwascreated,byMemberStateandbytypeofinvestment .Itshould
benotedthatnoinspection tookplacein1979inDenmark,Luxembourg and
theNetherlands sincethenumberofprojectsalreadyinspected wassuffi­
cientlyhighinrelationtoprojectsaidedfrom1975-1978.
TableNo.11;NumberofinvestmentprojectsinspectedsincetheFundwas
created
MemberStateIndustry Infrastructure
Total
1975-78|1979Total1975-78 1979Total
Belgium 2 1 311 1114I
Denmark 8 819 19
Germany 3617 5332 43689
France 4532'77 2111 32 .109
Ireland 12 21423 2 '2539
Italy 3817 555732 89144
Luxembourg 2 2 2
Netherlands .4 4*
jllnitedKingdom4715 62101 48149211
Total 188 84272270 97367639
(1)ItshouldbenotedthattheCommission departmentresponsible forchecking
hasonly4GradeAofficials and6GradeBtohandletotalfinancial
management oftheFundincludinginspection .

-57-
137 .Ofthe84industrial projects inspected ,7were for investments ofmore
than 10MEUA whereas 13ofthe 97investment projects ininfrastructure
were forprojects ofmore than 10MEUA .Table 8annexed gives the
distribution ofchecks carried out in1979 andthroughout thewhole
period of1975-1979 inthe respective regions oftheCommunity .
Asin1978 ,the Court ofAuditors took part infour inspection missions ,
inItaly ,France ,the Federal Republic ofGermany andtheUnited Kingdom .
138 .While maintaining the 10%spot check level ofprojects aided ,the
Commission also sought toimprove thequality ofinspection ,both with
regard tothe choice ofprojects forselection and steps tobetaken
following inspection .Italso sought toconcentrate spot checks more on
projects forwhich the information required might have repercussions both
onthe use ofaidgranted and onquick solution forpossible confirmed
anomalies .
139 .Moreover ,spot checks in1979 started tobear ,apart from purely technical
financial aspects ,more systematically than inthepast onthe social -
economic aspects oftheprojects inspected .TheCommission ,while aware
ofthe complex character ofassessment ofthe impact ofprojects aided
from the Fund onregional development ,hasendeavoured toascertain ,in
the light ofregional development programme guidelines ,the real contri­
bution ofaided projects .Inthepresent economic circumstances ,itis
notsurprising that examination ofthesocial-economic aspects ofprojects
undergoing spot checks should have revealed inparticular thedifficulty
ofachieving thetargets initially planned with regard tojobcreation .
140 .Nevertheless itmust benoted that there isalong way togobefore
achieving effective inspection andcheck oftheeconomic results of
regional measures .TheCommission continues toseek improvement inthis
field butdoes not hide the fact that ,asexperiences ofMember States
have shown ,inspection ofthis kind isnoteasy ,themore sobecause
method has still tobeelaborated atCommunity level .
4
141 .Although theonthe spot checks undertaken in1979 ,inasfar asitwas
possible tocarry them outeffectively ,revealed noirregularities in
thestrict sense oftheword ,itisnecessary torecord here acomment
concerning France and ageneral observation applicable ,invarying
degrees ,toallMember States .
142 .Throughout the1979 exercise France continued refusing toallow the
Commission officials responsible forcarrying outthechecks ,toparti­
cipate effectively inthecontrol visits toindustrial concerns ,although
there was some improvement inthis respect during theexercise in
question .Ineffect the French authorities have accepted that first of
all the national authorities themselves will visit the industrial concerns
andinform Commission officials oftheir fundings after which they would
accompany Commission officials onavisit .

-58-
Wherethefirstphaseofthisprocedurehadbeeneffectively carriedout
duringthe1979exercisefheFrenchauthorities Limitedthemselves,on
eachcontrolmission,tojustonefirmdesignated bytheCommission .It
mustbestatedthatFrance,byrefusingtoallowCommissionofficials
toparticipateeffectively inthevisitstoindustrial concerns,isin
contravention oftheEECtreaty.ItisstipulatedinArticle5thatthe
MemberStatesshalltakeallappropriate measures,whethergeneralor
particular,toensurefulfilmentoftheobligations resultingfrom
actiontakenbytheinstitutions oftheCommunity,inthiscasethe
ERDFRegulation,inparticulartheprovisionof-Article9paragraph 3
whichgivestheCommissiontherighttotakeplaceinon-the-spot-checks.
AccordingtothetermsofthesaidArticle5,theMemberStatesare
obligedtoassisttheCommissionintheaccomplishment ofitstask.
Inthecircumstances theCommissionwillbemakinggreateffortstoget
ridofthis.anomaly--which,ifitpersistscouldleadtotheintervention
oftheCourtofJusticeandthesuspensionofpaymentsinrespectof
projectswheretnecontrolvisithasbeenhindered.
143.On-the-spot-checksin1979revealed,andthisappliedtoallMemberStates,
that .information suppliedtotheCommissioneitheronapplication fora
contribution oron/investigation ofpaymentapplications isnotalways
entirelyaccurate.Forinstance aprojectsupposedtocreatejobswas
foundtobeamodernisation schemeonlyleadingtomaintenance ofjobs.
AnotherprojectcametotheFundwhentheconcerninquestionhadalready
'fileditspetitionandalthoughcarryingouttheinvestmentinquestion
wasLaterobligedtogointoliquidation andtobetakenoverbyanother
firm.Otheranomaliesappearedinon-the-spotcheckswithregardtodetails
suppliedincompletion reportsparticularly withregardtoinvestment
actuallyimplemented andjobscreated..
TheCommission hasnotfailedtostresstoMemberStates,inparticular
attheFundCommittee 12July1979,thattheyshouldremedythegematters.
Intheeventandinallcaseswithimplications forFundassistance,the
Commissionwilltakestepsorhasalreadytakenstepstorecoverthe
Fundaidinvolved.
Reference wasmadeinthefourthannualreport<1978)ontheERDF(1)to
compensation paymentsforinIrishprojectandtopossiblerepaymentofthe
Fundcontribution .Ithasnowbeenrecognisedthatthesepaymentsfrompart
oftheinvestment andas^suchwereeligibleforFundassistance .
(1)Point96ofthe1978annualreport.

-59-
ChapterVI:PUBLICITY ONFUNDACTIVITY
144.TheCommission gavereasonsinpreviousannualreports(1)whyitattaches
suchimportancetodiffusioninformation onFundactivity.Itnoteswith
satisfaction thatitsviewsare sharedbythenewParliament .Itpointsout
howeverthattheeffectiveness ofthepublicityvariesgreatlybetween
MemberStates.
In1979,theCommission hasusedthesameinformation diffusion methods
asinpreviousyears:
Information tothepress
145.Aftereachgrantallocation,theCommission issuedapresscommunique,
regionalstatisticsofgrantsawardedandlistsofprojectsfinanced.
Thisinformation appearstohavebeenusedverylittleinthepressof
countries suchastheFederalRepublicofGermanyandFrance,whoare
opposedtoidentification ofprojectsaided;incontrast,inthecases
ofIreland,ItalyandtheUnitedKingdomwheretheinformation published
enablesthepressreporterandthenewspaperreadertoidentifyindividual
projectseasily,information receiveswidepublicity,mainlyintheregional
andlocalpress.
Information hoardings
146.Togetherwithpresscommuniques ,information hoardings onthesitesof
majorinfrastructure projectsarethemosteffective meansofpublicity .
Accordingtoinformation,stillincomplete,availabletotheCommission,
some840hoardings wereerectedtoendyear1979.Thesearedistributed
asfollowsamongMemberStates:
TableNo.12:Hoardingsinplace
MemberState Numberofhoardings Situation end
Belgium 18
I1978
Denmark 5 1979
Germany 24 1979
France 33 1978
Ireland 10 1977
Italy 535 1978
Luxembourg 1 1976
Netherlands 6 1978
UnitedKingdom 206 1978
TotaI 838I
Aselectionofhoardingsphotographs appearonthefollowingpages.Itshould
benotedhoweverthatdirectlinksbetweennationalquotasandthenumberof
hoardings cannotbeexpected.
(1)Point124ofannualreport1978.

-60-
Construction ofapurification plantfor
wastewateratIbbenburen inRhineland-
North-Westphalia
Γ.
j'sàs&ss"..
> • –TT lIllMh
iftBSffftfÄSp
des-tufopâischenODSturupai»
Entwicklung -.
&■––lujÙ.KXFimhiM»»iiûrtnIL-.
• iDith
pI""fi
tTATItfiSTATIK'rts
r
Elk"2551
j.ftCrttelr.g ,dws
'■'UmittMiiunii 8mhH«G*.Kf<mmusr -»,um'»w 1
~"'M0M&ratwminn 8mbH«GiK6
|<HnLAvrMcK,Köf'OlwMI-SPPOTV
«ï*W
«ί..φ
■.■ Γ*ί"-
m, WK4*'«V*11-/•*!*«V"*f<
fc** <^
-'^1. -^
£**vsrjl

Construction ofahealthartificial waveswimmingbath
atHerbstein,Hesse

-62-
.Roadworks atBordeaux,Aquitaine
M-'•¥
**■<1*-?AI
3.v#m
'"fyu>>
ï¥Vf'i,f>*
<\>!î,A'*
^*r„*£>DIRECTIONDEPARTEMENTALE
LdeLEQUipEMEHTdibOlBONDEJ
Terrassements «.ouvrages'dart
ROCADEPERIPHERIQUE
de£AGGLOMERATION BORDELAISE
LSectlonNORDOUEST_l
'fr-(F.S.I.R)aveclaf^dfjfl03participationduF.E.D.E.B
r.tflIltPOOcHAnartement .,e*W"Participation dur.t.ux.w tVttr KfflUUF°uv",uuÎlil^l2?~au etnel0rbaineVï'«M**5deBordeaux
fa+*■-«f*deBordeaux .
:rHftHTIEPSMODEBHES-WLERIAN
■■niiiri^
Xr.'*«ÂK V■*:*-V, Y:iv***§A^s"\#^4 V**'i*
-"'Il
andinAriège,Midi-Pyrénées
Tf'v;ui»spilliIIIIUIIIIPIw''£•t?^VMtfl
v.<;'i'•iA-y*vv 5*1•Vf <H*<">V«* ,<î^£t* •ft;v'Ί*Λ*^^Λ'*ϊ·,ν V-.1
i-('b" %f*V-\t!'
Bf«
«n*1B•DEVIATION
dePERLESetCASTELET •
TRAVAUX FINANCES PAR
LEFONDEUROPEEN DE
DEVELOPPEMENT RECIONAL
Iiywniy IIniluiII
*>»«it
7-Wh
em
WS:
t.*hi u
«L.^-*"3k

-63-
> –.–.
LayinganelectricalsupplycablebetweentheDanishIslandof
BornholmandSweden
«P^eSynd,de^€^^skelu^w^ningsne^OQ denny^Mbelforblndfes© tllBormplm.j» 1

-64-
CorkHarbourDevelopment Plan.Ireland
Mr-
.-1CORKHARBOUR COMMISSIONERS
CORKHARBOUR DEVELOPMENT -STAGE1
DREDGING ANDRECLAMATION ATRlNGASKIDDY
T3
HARBOURENGINEER :
J.B.OSULLIVANHci^.
CONSULTING ÊNGINEERS:
PARSONSBROWNANDNEWTON
INASSOCIATION WITH
MALACHYWALSH&PARTNERS ,iondon«
CONTRACTORS :■
ANGLO-DUTCHDREDGINGCO..LTD.
AREAFORPROPOSEDDEVELOPMENT
ATRlNGASKIDDYTHIS'frrOJECTISBEINGAIDEDBY
THLEUROPEAN REGIONAL
WWDEVELOPMENT FUND
W aT
•n>-.:. •-.y
5fc-.tii-i»,'
(5)

-65-
Strengthening andextending awatersupplynetworkinthecentral
ArdennesinSouth-east Belgium
BSBSaK:.'•!il-« AIVËlcJ'J6700ARLONIHJIM"
giX'V.J\.jSECTEURCENTREARDENNE
1LOT9iniiviiiuna*fauiri11(illlMrZ1'
Roadworksontheindustrial estateofKlazienaveen at
Emmen,NorthernNetherlands
JIEUROPEESFONDSTOO I?ff "I.jJ.
fibMamsaàttÊÊmmt^ÊutmaÊirnmmbâiàtaai .

-66-
Link road between Middlesborough (North Eastern region )andthe
;national road network :Cleveland ,North ofEngland '
I
t t*j(hKif*£yftS'à
, _ ..^ Tt **1 *■<***■ ^*i-v 'h %*& ■*^ *- *>■» >• ••'^ v «♦! *-«rv- ■* ^^^ » ?r^ ***<«■
-·..■■ ·.·'-■. .·,.-•-ϋΡΓ· '% ..\ν ;*
i ^ÊK&t-x »'<-* •,\«aEad:-s ^**,-A» ■*^
Runway refacing :Dundee Airport -Scotland
■rSSEB^BS^l
«**&■:-■'.jj' s'-i"Sρ^ρψβ&^,νχί .<« -ν.**.:**>'„?Vί§■« .-Λ /*■<"ί.,Λ .ΜV*· *Κΐ "<·ΑΆί.„'■·■'ο.?^".ΙΙ»,Ί ·■-^.ν'"„·-Λι β."'*.·ϋχ·^ ·.·?.... ,.·.5:,-Λ..··,.: ,»->-··Λ:
"' -?•'.'.-,: 1.. fiL'>u:'■.c.r-'if i•?'*i"*\iV****fÍ»-^¿^lV f*51 «•'*."A ; *•"
Κ ·,·/_^ * 7* .^Λ". * > 9 ',·ΐ«ϋ»1ΙΐΒ»>· >!■<κ»'^ί ^ ^ ^
■iniwpum^l fVx;\ -;:'i>lƒV %\ypf|
ippwswwpiwap «!^ ^ ,"V^,v5- V,xmzt ,#*^^ '3
^/<&Mv*^ ?«{ '*r> -« ***T '4 &v^ "
s% ".'mV .sv 1^ •r ,'-, , I, -
5 ]■ i-'»■–% i ^ •>':„ ''/-vr'"itv*«- ',/' 1* 11l!1*1ww
"r-i'S-•••-- „-■■■>• i-:i*''is'-s j ',•?'>j '■ r; '*',';'?*>'t'. ''"vk^ '■"'.

-67-
Ther&asonthattheproportion ofinfrastructure andindustrial
projects financedvariesbetween MemberStates,isthatalargenumber
ofsmallprojects havebeenfinanced insomecountries forwhich
thereisnoobligation toerecthoardings andinsomecases,
hoardings arenotsuitable forpublicising theprojects inquestion .
Nevertheless itcanbeconfirmed thatthenumberofhoardings onsite
areparticularly largeinItaly,theUnitedKingdom,Belgium andthe
Netherlands .
Publication intheOfficiai Journal
147.Thelistsofprojects financed underthegrantallocations ofDecember
1977werepublished intheOfficial JournalinFebruary 1979(1);
projects covered bythegrantdecisions ofMay,September andDecember
1978appeared inthelistspublished inDecember 1979(2).Thelistsof
projects approved in1979willbepublished during1980,presented in
modified formtorenderthemmoreusefulandeffective forinformation
purposes .
Information toinvestors
148.Informing theinvestors concerned byFundgrantscontinues tobecarried
outbyletters fromtheCommission .Thesearesentdirecttotheinvestors
exceptinthecaseofFrance,wheretheygoviathenational authorities
responsible .TheCommission receives alargenumberofreplies,which
showtheimportance attached toFundassistance ,especially byregional
andlocalauthorities inItalyandtheUnitedKingdom.
(1)O.J.C38of12.2.1979 .
(2)O.J.C327of31.12.1979 .

-68-
Chapter VII :CONCLUSIONS
«
149 .1979 wasthefirst year ofFund activity under theamended
Regulation ,adopted inFebruary ,14months Late inrelation tothe
planned time schedule .TheCommission welcomes thecreation ,byway .of
theamended Regulation ,ofthe "quota free "section but regrets that this
section isnotyetoperational because ,attheendofthe/ear,the y
Council hadnotapproved the first special Community measures proposeb .
Lessons tobedrawn from theactivity ofthe "quota section "in1979
may besummarized asfollows .
150 .Attheadministrative level ,thenewsimplified procedure forapplications
onbehalf ofsmall projects ofless than 10MEUA are animprovement with
regard toimmediate and full information ofMember States and to
rationalising Fund management .Nevertheless the Commission wasfaced
with practical difficulties ,above all inthesecond half year ,because
thenumber ofsmall projects presented rose to87%oftotal projects and
49%ofFund assistance requested .Moreover 45%ofallapplications ,
representing more than 37%ofcommitment appropriations available
throughout theyear only reached theCommission between themonths of
August andOctober .
Todate theCommission hasalways sought tomeet the requirements of
national departments inthis field ;however practical problems -wi11
oblige itinfuture toinsist that applications should bemore balanced
intime ,pursuant totheRegulation ,andtorefuse anyapplication ,
.which arrives after the final fixed date .Itshould also benoted that
theapplications vary greatly inquality andfrequently have tobe
completed bytheCommission 'sdepartments byway ofinformation requested
from Member States ;itisgenerally less difficult toobtain these
supplementary details where Member States allow theCommission tomake
contact oninformation matters with thereponsible regional and local
authorities .
151 .The system ofnational quotas hasbeen altered atthe request ofFrance
toincrease that country 'squota bytwopoints forthebenefit ofthe
overseas departments .The FODshould therefore receive 2points from a-
French quota of16.86 %,i.e. 12%oftotal contributions allocated to
France .The Commission has torecord that in1979 the contributions to
the FOD,reflecting thedistribution ofapplications made bythe French •
authorities ,were however only rather more than 1%oftotal Fund
assistance toFrance compared with 11%in1978 .The Commission considers
that thetwopercentage points should beapplied forthewhole ofthe
period 1978 /1980 .

-69-
152.Fundendowment i.e.sofarasmeansavailable underthequotasection
wereconcerned was900MEUAin1979,plus65MEUAderiving from
decommitments orbalances carriedforward fromtheprevious year.
Although representing asubstantial increase ontheprevious years,
available credits werealmostentirely committed (962MEUA)andthe
Commission wasstillunabletoassistalleligible projects presented .
Decisions on257investment projects infourMemberStates,onwhichthe
FundCommittee hasalreadygivenanopinionin1979hadtobepostponed
to1980.ItshouldalsoberecalledthatthethreeMemberStates,receiving
principal benefit fromtheFund,allreceived rathermorethantheir
theoretical quotain1979and,asintheprevious year,wouldalmost
certainly havebeenabletosubmitfurtherapplications ifFundendowment
hadbeenhigher.
153.Paymentappropriations available were483MEUAplus353MEUAcarried
forward from1978.Payments madein1979weredoublethoseintheprevious
financial year:513MEUAcompared with255MEUAin1978.Theverynet
improvement nevertheless didnotabsorbtoanygreatextentthebacklog
fromtheprevious year.Inthiscontext,itshouldbenotedthat'
accelerated payments wereinaugurated inthe1979financial year.Itis
believedthatwhenthissystemis"runin",itsaccelerating impacton
payments willbemoreimportant .
154.Asinthepast,theCommission mustagainstresstheimportance of
observing thecomplementary character ofFundassistance andnational
expenditure onregional development .Onlyrespectforthisprinciple
canguarantee arealincrease intotalaidtotheregionsinquestion
andthecredibility ofCommunity measures withthepopulations .concerned .
DespitethenewArticle 19oftheFund,theCommission hasnotreceived
fromallMemberStatestheinformation neededtoassesstherealrelation­
shipbetweennational expenditure andamountsreceived fromtheFundand
therebytojudgehowfarCommunity activity hasbeenadditional .Itis
therefore considering whatpositive measuresitcantaketoensurethat
the-information requested reachesit.
155.OneMemberState,theUnitedKingdom,madeuse,forthefirsttimein
1979,ofthefacility available undertheFundRegulation ,to
receiveaidbywayofinterest rebateonloansgranted bytheEuropean
Investment Bank.Thishasoccuredinconnection withbuilding anelectrical
powerstationinNorthern Ireland.TheCommission regrets howeverthat
thisisanisolated case,sinceitconsiders thatthisfacility could
increasethecombined impactofexistingaidsbyfacilitating accessto
ECSC,EIBorEuratomcreditforacertainnumberofinvestors and
mobilising furthermeansofregional development bywayoftheFund.

-70-
156.TheCommissionregretsthatindustrial andserviceactivityprojects,
whichcreatejobsdirectly,wereonly28%ofassistance granted,the
lowestproportion inallyearsofFundactivitywiththeexceptionof
1976.ItconsidersthatMemberStatesshouldmakemoreefforttoapply
onbehalfofmoreprojectsofthiskindinthefuture.Itmusthowever
recallthatFundaidsinthiscontextwillbewithoutinteresttothe
industrial investorsolongastheyaresystematically retainedbyMember
Statesaspartialrepaymentofnationalaidstotheinvestorsconcerned.
157.TheamendedFundRegulation andtheCouncilresolution onCommunity
regionalpolicyguidelines giveanincreasedroletoregionaldevelop­
mentprogrammes .Inthisoptic,(asshownintheCommission'srecommend­
ationstoMemberStatesonthesubjectofprogrammes),theseprogrammes
mustberegularlyupdatedandadditionaldetailsadded.Inparticular
theCommission considersthattheupdatedprogrammes communicated in1979
donotalwayscontainsufficientdetailsontheusemadeofFundresources.
158.Itshouldbenotedthatstatistical summariesarenotalwayssufficiently
.detailedtoallowforassessment ofresultsobtained,neitherbynational
norbyFundactivity.Moreovertheyarrivedevenlaterin1979thanin
1978.No'statistical summaryforFrancehadbeenreceivedbytheendof
theyear.
159.TheCommission stressesthemajorimportance ofinformation measureson
Fundactivity.Thisinformation isclearlymoreeffectiveifitcanbe,
shownthatFundassistanceisofcomplementary character andifprojects
financedcanbeindicatedindividually .TheCommission noteswith
satisfaction thattheauthorities ofsomeMemberStates,atnational,
regionalandlocallevel,continuetohelpinthisrespect;thisis
notablythecasewithItalyandtheUnitedKingdom.HowevertheCommission
deemsessentialthatotherMemberStatesshouldagreetodevelop
information inthisdirection;theCommission intendsinanyeventto
modifythemannerinwhichprojectlistsarepublishedintheOfficial
Journaltoensurethatthisbecomesamoreusefulinstrument of.
information .
160.TheCommission stressesonceagainthattheRegionalFundisonlyone
facetofregionalpolicy,whichisbyitsnatureconcernedwithevery-.
thing,whichaffectstheregions.Itmustnotbejudgedoutofcontext;
itsimpacthastobeassessedtogetherwiththeregionalimpactofthe
otherfinancialinstruments andpoliciesoftheCommunity.Theexperience
of1979andtheendeavourtopromoteacertainnumberofregionaldevelopment
integrated operations,despitethedifficulties encountered,indicates
clearlytheimportanceofthisoverallapproach.

-71-
161.Clearly,itisnotpossibletodrawconclusions onthequotafree"
sectionoftheFund,sincethisisnotyetoperational .Howeverthe
CommissionrecallsthatspecialCommunitymeasureswillbefinancedon
thebasisofspecialprogrammes fortheareaorregionconcerned andnot
onthebasisofindividual investmentprojects.Inthelightofexperience
acquiredthroughthe"quotafree"section,theCommissionwilldecide
attheappropriate momentwhethertoproposecomparable changesin
procedureapplicable tothe"quota"section.
162.LastlyitshouldberecalledthattheCommissionisintheprocessof
preparingthefirstperiodical reportonthetrendsandsocialand
economicsituationofregions.Thefuturedevelopment oftheRegional
Fundwillbedecidedinthelightofdiscussions ontheconclusions of
thisreportandintheopticofCommunityenlargement .Atasuitable
timetheCommissionwillmakeproposalswhichitdeemsappropriate and
whichshouldobviously beonaparwiththeregionalproblemsthatwill
confronttheCommunityinyearstocome.

-72-
ANNEXES
PAGE
A.Statistical annexonFundactivity
Table1.Summaryofaiddecisionsin1979 73
Table2.Typesofinvestment financedbytheRegionalFund-
industryandservices 74
Table3.Typesofinfrastructure financedbytheRegional
Fund-infrastructure 76
Table4.Fundassistance percapita 78
Table5.RegionalbreakdownofFundassistance 79
Table6.Budgetsituation 83
Table7.Paymentsmade 84
Table8.Controloperations undertaken 85
B.Bibliographical annex
1.Provisions adoptedonCommunityregionalpolicy 87
2.Commission proposals 88
3.Publications 89
C.Principalinstruments
1.FundRegulation (amendedtext) 92
2.CouncilResolutionof6.2.1979onguidelinesfor
Communityregionalpolicy 100

I
Table1
..... .(1)SummaryofgrantdecisionsfromtheFundin1979analysedbyMemberStatesandbymajortypeofinvestment
Legend:•
A:Industrial andserviceinvestments of10MEUAormore
B:Industrial andserviceinvestments oflessthan10MEUA
C:Investments ininfrastructure of10MEUAormore
D:Investments ininfrastructure oflessthan10MEUA
E:Investments ininfrastructure inhillfarmingareas(?)
[
I
MemberState INumberofgrantdecisions (in
brackets :numberofinvestment
projects)(3)Investments concerned
(MEUA)Assistance granted
| (MEUA)
AIcI0IT
EITotalj!AIIθc D .ETotalIAjΒΐLl.[D|E|Total|
Belgium1
(1)2
(3)2
(10)2
(3)7
(17)I
40,87I
15,07 7,79.S,0768,804,021,52
I2,021,529,08
jDenmarki"5
(33)1
(1)9
(50)15
(84)25,4710,5424,70
t60,71 1,931,038,18 11,14
jGermany
I1°
(10)37
(139)33
(64)80
(213)764,80
I,314,51 65,58 114^8927,55
j14,7617,15 59,46
France 8
(8)36
(136)13
(13)39
(248)2
(23)98
(428)760,33240,39469,71198,60'4,96 1jl675.9945,0018,5150,86
I43,531,49159,39
Ireland 6
(6)4
(32).2
(2).4
(81)I'-1
(14)17
(135)134,4188,4322,3687,056,02
I338,2716,9312,544,58I26,241,9062,19
Italy
Luxembourg11
(229)14
(14)50
(1019)
1
(2)9
(204)84
(1466)
1
(2)264,715609,03449,05
3,1245,28•368,07
3,1250,47179,08145,22
0,8113,31388,08
0,81
Netherlands 1
(1)2
(5)3
(6)19,2428,29 47,53 3,377,97 11,34
UnitedKingdom 8
(8)8
(11)23
(23)64
(422)2
(20)105
(484)697,19j34,907155,65444,8310,432343,0070,325,9369,28111,952,83260,31
TOTALS33
(33)103
(583)54
(54)204
(1901)16
(264)!410
((2835)2397,60[983,48
II
5284,5311309,0171,76j004^38|163,82105,66308,20363,0721,05961,80
410
(2835) 10.048,38 j961,80-Nil/J
I
(1)Point48ofthisreport.
(2)WithinthemeaningofDirective 75/268/EEC.
(3)Forprojectsof10MEUAormoreincolumnsAandC,eachdecisionrelatestoa•
singleproject. 5*

Table2.1:TYPESOFINVESTMENT FINANCED BYTHEREGIONAL FUNDIN1979:INDUSTRY ANDSERVICES
Typeasdefinedinthe
FundRegulationTotalinvest-l
ment(MEUA)INationalaid
involved
(MEUA)Numberofprojectsandmainsectorsofactivityconcerned
Industry
and
servicesprojectsof1q
MEUAormore2.397.60 365.0733
of
which
<
projectsof
lessthan10
MEUA983.48
TOTALS 3,381.08I
225.70i;
iof/i/hich\
590.771
1
3
4
2
'4
i9
1
1
!3[l
f9
!"
28
1
:84
|55
42
16
j10
\U
;62
I13
I16
i63
i28
;48
i10
'31Nuclearfuel
Metalproduction andfirststageprocessing
Non-metallic minerals
Chemicals
Mechanical engineering
Electrical andelectronic engineering
Motormanufacture andspareparts
Othertransport equipment
Precision,opticalandsimilarinstruments
Food,drinksandtobacco
Timberandfurniture
Rubberandplastics
Metalproduction andfirststageprocessing
Non-metallic minerals
Chemicals
Artificial andsyntheticfibres
Metalgoods
Mechanical engineering
Electrical andelectronic engineering
Motormanufacture andspareparts
Othertransportequipment
Precision,opticalandsimilarinstruments
Food,drinksandtobacco
Textiles
Footwearandclothing
Timberandfurniture
Paper,printingandpublishing
Rubberandplastics
Cateringandhotels
Miscellaneous industries andservices
616projects

Table2.2:TYPES OFINVESTMENT FINANCED BYTHEREGIONAL FUNDIN1975-1976-1977-1978-1979:INDUSTRY ANDSERVICES
Typeasdefinedinthe
FundRegulationTotalinvest­
ment(MEUA)National aid
involved
(MEUA)Numberofprojects andmainsectorsofactivity concerned
Industry
and
servicesproj
MEUAectsof10
ormore6,513.69 1,028.89
projects oflessi4,455.34than10MEUA I866.27156
of
which1Nuclear fuel
1Miningandprocessing ofmetallic ores
9Metalproduction andfirststageprocessing
12Non-metallic minerals
35Chemicals
2Artificial andsynthetic fibres
4Metalgoods
13Mechanical engineering
14Electrical andelectronic engineering
27Motormanufacture andspareparts
2Othertransport equipment
1Precision ,optical andsimilarinstruments
15Food,drinksandtobacco
1Textiles
2Footwear andclothing
3Timberandfurniture
4Paper,printing andpublishing
9Rubberandplastics
1Financial institutions
12636
!of
!whieh'69Production andfirststageprocessing ofmetals
*214Non-metallic minerals
j137Chemicals
I1Artificial andsyntheticfibres
|366Metalgoods
:239Mechanical engineering
;248Electrical andelectronic engineering
100Motormanufacture andspareparts
'48Othertransport equipment
I55Precision,opticalandsimilarinstruments
j236Food,drinksandtobacco
I74Textiles
|79Footwear andclothing
j221Timberandfurniture
■135Paper,printing andpublishing
198Rubberandplastics
71Catering andhotels
.145Miscellaneous industries andservices
TOTALS 10,968*93 1,895.16 2792projects

Typeasdefinedinthe
FundRegulationTotalinvest­
ment(MEUA)Nationalaid
involved
(MEUA)Numberofprojectsandmaintypesofinfrastructure concerned
/r r
1Purchaseofsitesforindustry
7Generalservicestoindustrialestates(roads,railways,
watersupplyandpurification ,drainage,etc.)
i'
\i ''
! " I1Touristinfrastructure
54
0f/12Generalservices
which17poadworks
5Portdevelopment
2Airportdevelopment
9Miscellaneous infrastructure (energyproduction,tele-
Ncommunications ,etc.)projectsofmore
than10MEUA5,286.53 1,451.98
i''
!
Infra-;
structure ir
7Sitepreparation forindustrial estates
230Generalservicesforindustrialestates(roads,water
supply,drainage,etc.)
98Advancefactories
projectsofless
than10MEUA
I1,309.01
/1,194.431901
Of !
which1Otherinfrastructure ofasocialcharacter
34Touristinfrastructure
.
457Roadworks
62Portdevelopment
30Airports
982Miscellaneous infrastructure (energyproduction,tele-.
communications ,etc.)
projectsinhillfarmingareas71.76 69.17264f
of
_whichL264Generalservices(roads,watersupply,etc.)
TOTALS j6,667.30 .!2,715.58 2219projects

Table3.2:TYPESOFINVESTMENT FINANCEDBYTHEREGIONALFUNDIN1975-1976-1977-1978-1979:INFRASTRUCTURE
Typeasdefinedinthe
FundRegulationTotalinvest­
ment(MEUA)Nationalaid:
involved |Numberofprojectsandmaintypesofinfrastructure concerned
(MEUA)
projectsofmore
than10MEUA
Infra-
structure
projectsofless
than10MEUA
projectsinhill
(farmingareas
TOTALS3,377.90
292.709,186.14
12,856.743,939.91
2,849.91
274.17!177
!Of
!whiehI (1Purchaseofsitesforindustry
89Generalservicestoindustrialestates(roads,railways,
watersupplyandpurification ,drainage,etc.)
14Portdevelopment
3Energysupply
1Touristinfrastructure
16Generalservices
31Roadworks
7Airportdevelopment
j15Miscellaneous infrastructure (energyproduction,tele­\communications ,etc.)
(31Purchaseofsitesforindustry
j151Sitepreparationforindustrialestates
11801Generalservicesforindustrialestates(roads,water
jsupply,drainage,etc.)
J505Advancefactories
!
^1Otherinfrastructureofsocialcharacter
(158Touristinfrastructure
j733Roadworks
■210Portdevelopment
\58Airport
1244Miscellaneous infrastructure (energyproduction,tele­
^communication ,etc.)
1321;ofv321Generalservices(roads,watersupply,etc.)
whichv-Ni
-Ni
!4892
!
\which
7,063.99 6390projects

Table4:FUNDASSISTANCE PERCAPITA-1975-1979(1)
Member
State *Totalpopula-Population Aidgranted I
tion1978
(1000)RégionalFund
areas1978C100C)MEUAEUAper
capitaEUApereapitain
assistedareas
Belgium 9.837 3.234 39,20 3,9 12/1I
IDenmark 5.097 637 34,54 6'7 54,2
IGermany 61.353 24.563 210,13 .3,4V.8'6
IFrance 53.183 17.000 428,19 8,0 25'2
IIreland 3.301 3.301 152,25 46,1 46,1
Italy 56.599 20.700 916,31 16,2 44,3
!Luxembourg 358 358'2,94 8,2 8,2
INetherlands 13.898 "2.221•48,00 3,4- 20,9
|UnitedKingdor55.918 25.760 655,78 11,7 25,4
IÀCommunity 256.544 .97.849 2.488,34 11,95 27,2
(1)Point3ofthisreport.

Table5:REGIONAL BREAKDOWN OFFUNDGRANTS1975-1979
Grantsir*MEUA(roundedfigures :inbrackets :numberofinvestment projects involved )
!
.!
II.Industry,
craftsand
services '!
XI.Infrastructure[ill.Infrastruc­
tureinhiLL
farmingareasIV.Totals
Total
1979Total
75-79-|Total
1979Total
1975-1979'Total
1979Tflt.T
1975-1S79Total
1979Total I
1975-1979
BELGIUM
Vlaandersn
Nillonie 5.S4(»)11,*8(22)2,02(10)16,30(83)
7,98(47)1,52(3)I j
j
!
• I
3,44(4)|!
1
j
• j
9,08(17)16,30(93);
22,90(90)
5,54(4)J11,48(22)|2,02(10)124,28(130 )1,52(3)j[3,44(4)9,08(17)39,20(173)'
DEMMARK
Gr^nhnd
Otherregionsm
1,93(33)*,«(60)9,21(51)28,67(187)
1,41(1)
I!|
9,21(51)
1,93(33)28,67(187)
5,37(50)
1,93(33)4,46(60)j9,21(51)|30,06(188)
I1
I
!i11,14(84)34,54(248 )
GERMAMY
ScMesvfg-Holsteln
Breaen
IHsdersaehsen
NordrheliuHestfalen
Hessen
Rheinland-Pfalz
Saarland
Bayern
Badsn-Württenberg
8erl1n11,85(14)
•
9,81(44)
2,86(35)
2,01(9)
1,37(5)
10,14(24)
2,97(11)
1,30(7)19,91(75)
0,15(1)
21,11(126)
10,29(109)
6,81(61)
15,93(111)
20,99(103)
16,68(98)
4,51(34)
•2,92(19)
3,81(10)
3,56(7)
0,18(2)
0,12(1)
0,15(1)
5,55(19)
0,86(5)18,37(75)
0,23(2)
20,36(78)
3,84(8)
7,37(29)
2,36(23)
4,93(19)
27,77(110)
3,09(21)
5,85(3)mW
m
m
m
m
m
m
m
•j
j
14,77(33)
13,62(54)
6,42(42)
2,19(11)
1,49(6)
10,29(25)
8,52(30)
2,16(12)38,28(150)
0,38(3)
41,47(204)
14,13(117 )
14,18(90)
18,29(134 )
25,92(122 )
44,45(208 )
7,60(55)
5,85(3)
42,31(149 )116,38(718 )17,15(64)94,17(368) 59,46(43)210,55(10861
Correction (decommit-
ments+exchangevariations )
Total0,42
i.0,4Z
II
I
i 59,04 |210,13
l I

Table5(contd2)r !II.Industry, •] tll.Infrastruc-I 1
IcraftsandII.Infrastructure bureinhill IV.Totals
|servicesL [farming areas
ITotal TotalTotal1Total Total Total [Total Total1
|1979||75■79||19791975-1979 1979 1975-1979 1979 1975-1979
'FRANCE r-h
Alsace J1,32(9)4.W(34)• I 0,05(1)1,32(9)*,09(35)
Aquitaine 1,58(11)11,18(44)6,10(20)15,72(67) 0,29(11)7,68(31)27,19(122)
Auvergne !0,30(3)4,79(23)14,91(53)35,76(65)0,72(12)1,43(13)15,93(68)41,98(101)
Bassa-Noraandle I0,27(2)3,95(21)2,22(17)5,35(27) 2,49(19)9,30(48)
Bourgogne 0,51(8) E* !Im m !0,51(8)
Brittany 1,47(11)9,33(68)24,01(43)76,79(59)I* I25,48(54)86,12(127)-
Centre ' 0,93(6)0,17(2)0,17(2) *|m !0,17(2)1,10(8)
Chaapagne 0,91(5)2,24(13)J•• m I•'I0,91(5)2,24(13)
Corsica - 2,02(3)11,09(49)I.• 2,02(3)11,09(49)
Franche-Coatâ 0,01(1)!•|• I* II* 0,01(1)
ffante-Noraandle • I0,27(2)Em !!m j 0,27(2)
Langoedoc-Rouss 111on 2,36(8)5,69(27)6,76(40)14,95(69) -.m 1,06(22)9,12(48)21,70(118)
llMasIn 0,30(2)2,43(20)8,93(3)22,71(32) * 3,06(32)9,23(5)28,20(84)
Larralne 3,47(23)24,34(94)5,09(2)5,09(2) I* l8,56(25)29,43(96)
Wtdl-Pyrénées 1,02(12)6,19(42)5,97(22)16,26(67)0,77(11)2,29(17)7,76(45)24,74(126)"
lord-Pas-de-Calais 43,92(15)57,22(61)1,63(13)1,63(13) 45,55(28)58,85(74)
Pays-de-1a-loire 3,18(18)9,33(61)11,38(10)23,08(67)• J|m14,56(28)32,41(128)
Picardie 0,59(7)I* im
[ 0,59(7)
Po1tou*Charente -I1,36(3)5,12(34)3,41(19)13,49(52) I'• J4,77(22)18,61(86)
Provence-C8te d'Azur a0,04(2)I"m I Im' I• I0,04(2)
RhSne-Alpes I1,05(8)4,87(32)0,94(11)0,94(11)mj0,70(3)1,99(19)6,51(46)
Guadeloupe 0,07(2)3,35(52)0,06(1)2,52(15) 1,02(9)0,13(3)6,89(76)
Gitane 0,70(6)2,53(17)0,12(1)0,76(5) 0,32(4)0,82(7)3,61(26)
Martinique 0,01(1)2,36(23)I* 2,67(14)* I2,33(11)0,01(1)7,36(48)
Réunion I0,22(5),
I|1,96(39)||0,67(1)|[2,44(8)|•j|0,95(7)|0,89(6)|5,35(54)|
Total |63,51(144 )
'163,27(731 )94,39(261 )251,42(624 )1,49(23)13,50(130 )159,39(428 )428,15(1.485

Table5(contd3) !I.Industry,JI IlII.Infrastruc- i
craftsandII.Infrastructurei tureinhill jIV.Totals
services | [farmingareas 'jI
Total Totalf'TotalfTotal Mil ITotal ITotal IITotal
1979 ||75.79j|1979 |[1975-1979 |j1979 1975-1979 1979 1975-1979
IRELAND I
Oonegal Iw0) (5)(26) "(11)(9) (46)
NorthVest Id)w (2)(12) (6) (3) (22)
West I(6)(26) (5)(35) (M (2D (15)(82)
RidVest Md6) (9)(26) (3)(5) (16)(47)
SouthWest Iw (-16) (12)(35) (2)(12)(17)(63)
SouthEast (S)os) (14)(44) - (19)(62)
Mdlands (2)(16) (1M C«) (1)(5) (17)(62).
East (8)(21) (16)(M) - (20 (62)
RorthEast (5) •(22) (3)(18) (♦)m (12)(«J
Multi-regional projects mId)l(3H|(29)|t|(3)|(30)|
Total 29,47(38)70,03(149 )30,82(83)69,68(307)1,90(14)k54(67)62,19(135)I152,25(523)J
ITALY
Abruzzi 6,67(20]16,44(79)11,65(20)26,88(43) 0,42(14)18,32(40)43,74(136)
Basilicata 0,85(5)6,15(19)5,95(13411,47(155) 3,36(117)6,80(139)J20,98(291)
Calabria 0,81(5)2,90(19)19,77(172147,73(180 )0,63(36)6,45(235)21,21(213)|57,08(434)
Caipaoia 12,01(51)38,82(163)61,16(112)tt59,04(150) 4,62(191)73,17(163)202,48(504 )
Friuli-Venezia Giulia 15,67(160123,28(182)0,27(9)3,09(72)15,94(169 )26,37(254)
Lazio 11.45(56)34,98(131)10,99(79)30,27(94)0,25(11)1,77(38)22,69(146 )67,02(263)
Marche 1,91(8)4,83(18)3,05(18)7,50(27)0,29(5)0,37(8)5,25(31)12,70(53)
Kolise 1,80(6)13,00(151)14,36(156)0,45(8)2,58(75)13,45(159)18,74(237)
Puglia 8,52(38)55,84(108)26,63(4)66,57(24)1.97(33)5,46(104)37,12(75)127,87(236 )
Sardegna I1,83(12)6,98(36)13,82(170)73,24(232)0,03(1)2,95(65)15,68(183 )83,17(333)
Sicilia 6,42(34)17,01(86)42,33(9)[112,13(34)9,42(101)110,57(115)58,17(44)139,71(235 )
Toscana 0,48(2)2,19(1)2,19(1) « * 2,19(1)2,67(3)
Multi-regional proiects I
42,65(1)58,34(3) (Basilicata-Puglia ) - 42,65(1)58,34(3)
(Abruzzi-Lazio ) 11,58(1)11,58(1) - 11,58(1)11.58(1)
(Kezzogiorno ) 43,86(1)43,86(1)•-J43,86(1)||43,86(1)|
TOTAL50,47.jl86,23(667)|324,30(1033 ;-.88,44(1283)13,31(20i|41,64(1034 )388,08(1466 )916,31(2984)|

Table5(contd4).I.Industry,
craftsandII.InfrastructureIII.Infrastruc-"
tureinhill IV.Totals i
■Iservices I-:_J[farminaareas 1[■
Total
1979Total
75.79Total
1979Total
1975-1979Total
1979Total
1975.1979Total
1979Total
1975-1979
LUXEMBOURG
m0,81(2)'2,94(5)-• 0,81(2)2,94.(5)
NETHERLANDS
Noor^-Mederland mI7,57(5)30,48(23)••ImI7,97(5)30,48(23)
llatwrg 5,52(2)[3,37(1)12,00(8)I-. 3,37(1)17,52(8)|
,*5,52(2)11,34(6)42,48(31)I
m m11,34(6)48,00(31)
WITE0KIWGD0Wi'
I.'
R.England 1,30(4)38,16(104)39,32(102)101,11(102) •I40,62(106)139,27(594)
N.H.England 6,02(3)35,68(51)17,64(70)41,93(70)m|•23,66(73)77,61(387)
YorkshlreIHuaborsldo 0,83(1)4,74(30)10,81(55)22,09(55)|• 11,64(56)26,83(282)
E.fHdlanda 1,50(1)1,97(10)0,14(3)1,43(3)* 1,64(4)3,40(46)
S.V.England 0,25(1)2,10(23)12,11(23)15,16(23) *12,36(24)17,26(119)
Seotland 3,03(2)39,01(91)52,39(113)109,41(113)2,83(20)10,72(68)58,25(135)159,14(545)
Walot 46,88(2)66,94(75)22,58(67)62,49(67) m 69,46(69)129,43(515)
I.Iroland 16,44(5)45,16(60)26,18(11)56,18(11) 0,71(18)42,62(16)102,05(178)
V.Hidlands 0,06(1)|0,08(1)m|0,06(1)|0,08(3)|
76,25(13)I
233,76(444)j181,23(445)H i
,409,88(2139i
2,83(20)I
11,43(86)260,31(484)665,07(2669
Correction (decommitments +
exchangevariations )0,710,71
Total 655,78

Table6:BUDGETSITUATION (Quotasection)(1)
1.Useofcommitmentaopropriations (MEUA)
[ Appropriations availablefor1979[Appropriations
Iused.in1979 Appropriations
unusedat31.12.1979
1979budgetBroughtforward
from1979Appropriations madeavailableby:I
TotalI
Commitments 1979
(1)
decommitmentsexchangerate
variation from
■previousdecommit
ments
900 43,48 15-,60 6,25 965,33 962,11|3^22 |
2.Usemadeofpaymentappropriations (MEUA)
IAppropriations availablein1978 I|Paymentsmadein1979 Appropriations uilusedat31.12.1979
IBroughtfor­ wardfrom197f1979
budgetTotalFromsums
broughtfor­
wardfrom'78From1979appropriât .TotalFromsumsbrought
forwardfrom1978From1979
appropriations
353,19 483,00 836,19 353,19 159,96 513,15 323,04 |
3.Trendincommitments (MEUA)
1975-1978 commit-
mentunpaidat
1.1.1979Decommitments
andadjustments1979commitments 1975-1978 commit-
mentsunpaidat
31.12.1978 plus
1979commitmentsPayments
in1979Commitments
unoaidat
31.12.1979Fromsums
broughtfor­wardfrom'7Fund1979
^appropriât .Total
705,76-21,85 j43,48 918,63 962,11 1-646,02 513,15 |1.132,87 |
(1)Déductionmadefromdecommitments1979(0.24MEUA)andadjustments duetoexchangeratevariations (8.08MEUA).

Table:PAYMENTS (1)
Member
StateCommitments 1975–
78unpaidon
31.12.1978 (2)1979
commitments
(2)ll979payments:fromsumscommitted in: Totalpay­
mentson
totalcommil
mentsCommitments
madebutun­
-paidat
31.12.1979Paymentsas
%ofcommit­
ments 1975 1976 19771978j
11979
1MBUA% MEUAHMEUA MEUA MEUA •MEUA[MEUAMEUAMMEUAEnd
■979End
1978
Belgium1~13,006 2I9,083 10,3140,0171,4281,337 3,096 118,99351,656,6|
IDenmark 9,417 11,140-0,3562,9073,9941,8709,128 211,42966,457,3I
IGermany 50,919 859*,044M0,0920,7106,60315,96922,65546,028 963,93568,764,0|
IFrance139,934 20159,383 170,4906,82615,53132,42848,334103,609 20195,70854,247,6I
IIreland 36,4'82 562,214 70,4831,1764,24012,28814,69932,887 665,80955,1P7'0I
Italy249,173 37388,078 402,58416,09921,97759,01744,050143,726 28493,52544,448,9
ILuxemboi
ung0,960 0,807-0,297-0,297 1,47049,8
INetherl*15,83321-1,340L1 1,4672,857 4/321-8,645218,52861,657,0
IU.Kingdoii168,185 25261,016 270,3734,98115,00246,76598,611165,732 32263,46958,1
Communit ■y683,909100$62,105 1004,33631,63270,843176,118230,219513,1481001.132,866 53,2
(1)Point131ofthisreport.
(2)Includingdecommitments in1979andadjustments duetoexchangeratevariations .

-85-
Table8:INSPECTION 1VISITSCARRIEDOUTOVERTHEPERIOD1975-1979 (1)
I dumberofprojectsinspected ]
ICountyandregionj! 1979
I1975-1979
:Industry Infrastructure Industry Infrastructurel
Iviaanderen - 11
Wallonie I___? :
Belgique 1 3 11
{Groenland- 19
iNordjylland 7 -
JViborg IIl 21"
IDanemark 8 19
Ischleswig-Holstein 8i.
Niedersachsen 7 4 8 8
Nordrhein-^Westfalen 10 - 10 -
Hessen- 8 5
Rheinland-Pfalz■" - 9 3
IsSarland 4 3
Bayern I:7
Deutschland 17 4 53 36
lAlsace 10 10 -
Aquitaine 11 1
Auvergne- 5 *
Basse-Normandie 2
Bretagne 6 3 6 5
Languedoc-Roussi lIon 10 2
Limousin 5 A
Lorraine- - 6-
Midi-Pyrénées- 8 3
PaysdelaLoire,- 3
Poitou-Charentes 9 .3• 9 3
D.O.M,1J !
France 32 11 77 32
iDonegal 4
NorthWest 1 1
West 2 2 3 3
MidWest • - - 1 5
ISouthWest 3 6
SouthEast - - 1 -
Midlands- - 2 2
East- 1 3
NorthEast:: _1
jlreland2 2 1425|
Λ
(1)Point137ofthisreport.

86-
Table8:coritdr––1Numberofprojectsinspected '
Countryandregion 1979 1975--1979 [
_Industry Infrastructure Industry ,Infrastructure
(Abruzzi - 3..*'6 I«I
Basilicata 5 ■I4 8 8I
Calabria <3 5 6 10
Campania 3 4 8 18
Friuli-Venezia Giulia" 9 9
Lazio 6 4
Marche- 1 2
Molise - ' - A
Puglia , 3.■.A 9 5
Sardegna 1 ■'6 13
Sicilia I'-!5 8
Italia 17 32 ■5589|
Luxembourg , 2
jGroningen ; i?i
Limburg '-■-■' 1
Friesland I- ______
Nederlandwm 4
(NorthernEngland 2 11 I11 351
NorthWestEngland- 7 25
Yorkshire &Humberside 5 .5■7. 10
Midlands .2; ■.5-:2 5
SouthWestEngland V-- 6 8.
Scotland 3 6 '6 35
Wales 15 11 24
northernIreland I3 :12 7
jllnitedKingdom15' 48 62149I
Community 84 97 272 367.

-87-
B.BIBLIOGRAPHICAL ANNEX
1.PROVISIONS ADOPTED ONCOMMUNITY REGIONAL POLICY
-EuropeanRegionalDevelopment Fund
-Regulation (EEC)No.724/75oftheCouncilof18March1975
establishing aEuropeanRegionalDevelopment Fund(O.J.No.L73of
21March1975^page1).
-Regulation (EEC)No.214/79oftheCouncilof6February1979amending
Regulation (EEC)No.724/75establishing aEuropeanRegionalDevelop­
mentFund(O.J.No.L73of9February1979,page1)(1).
-CouncilDecisionof18March1975toapplyRegulation (EEC)No.724/75
establishing aEuropeanRegionalDevelopment FundtotheFrenchover­
seasdepartments (O.J.No.L73of21March1975,page49).
-Commission Regulation (EEC)of15September 1975oncalculating aids,
takingtheformofreducedrateofinterestorinterestrebatenot
expressed bynumberofpercentagepoints(O.J.No.L243of17September
1975,page9).
-RegionalPolityCommittee
-CouncilDecisionofNo.75/185/EECof18March1975settingupa
RegionalPolicyCommittee (O.J.No.L73of21March1975,page47).
-CouncilDecisionNo.79/137/EECof6February1979amendingthe
Decision No.79/185/EECsettingupaRegionalPolicyCommittee (O.J.
No.L35of9February1979,page9).
-RulesofprocedureoftheRegionalPolicyCommittee No.75/761/EEC
(O.J.No.L320of11December1975,page17).
(1)ThetextoftheFundRegulation,broughtuptodate,aspublishedin
O.J.No.C36of9February1979willbefoundatAnnexC.

-88-
-RegionalDevelopment Programmes
-Outlineplanforregionaldevelopment programmes
(O.J.No.69of24March1976,page2).
-OpinionoftheCommissionof23May1979onregionaldevelopment
programmes (O.J.No.L143of12June1979,page7).
-Commission Recommendation of23May1979toMemberStatesonregional
development programmes No.79/535/EEC(O.J.No.L143of12June1979,
page9).
-Otherprovisions
-CouncilResolutionof6February1979onCommunityregionalpolicy
guidelines (O.J.No.C36ofFebruary1979,page10)(1).
-CouncilDecisionNo.79/136/EECof6February1979amendingDecision
No.74/120/EEContheattainmentofahighdegreeofconvergence of.
theeconomicpoliciesofMemberStatesoftheEuropeanEconomic
Community (O.J.No.L35of9February1979,page8).
2.COMMISSION PROPOSALS
-ProposalstotheCouncilon(EEC)Regulation
-I.Introducing aspecialCommunitymeasurecontributing tothe
development ofcertainFrenchandItalianregionsinthecontext
ofCommunityenlargement .
-II.Introducing aspecialCommunityregionaldevelopment measure
contributing toeliminating obstacle^tothedevelopment ofnew
economicactivities incertainareasaffectedbyrestructuring of
thesteelindustry.
-IILIntroducing aspecialCommunityregionaldevelopment measure
contributing toimprovingtheeconomicandsocialsituationof
BorderareasinNorthernIreland.
(1)SeeAnnexC.

-89-
IV.Introducing aspecialCommunityregionaldevelopment measure
contributing totheremovalofobstaclestothedevelopment ofnew
economicactivities incertainareaseffectedbyrestructuring in
theshipbuilding industry.
V.Introducing aspecialCommunityregionaldevelopment measure
contributing toimprovingsecurityofenergysuppliesincertain
regionsoftheCommunitythroughabetteruseofnewtechnology
withregardtohydro-electric andothersourcesofenergysupply.
O.J.C285of15November 1979.
3.PUBLICATIONS (availableinthesixofficiallanguagesunlessotherwise
indicated )(1)
a.Periodical publications
-EuropeanRégionalDevelopment Fund1stAnnualReport(1975).Supplé­
ment7/76totheEuropeanCommunities Bulletin.1976.38pages.
-EuropeanRégionalDevelopment Fund2ndAnnualReport(1976).1977.
63pages.
-EuropeanRegionalDevelopment Fund3rdAnnualReport(1977).1978.
95pages.
-EuropeanRegionalDevelopment Fund4thAnnualReport(1978).1979.
96pages.
-AtlasofRegionalDevelopment (1979).16pages.
b.Occasional publications
-TheEuropeanCommunity anditsregions.
Europeandocuments No.1/1980.18pages.
-Regionaldevelopment andtheEuropeanCommunity.
EuropeanFileNo.101979.8pages.
-AidsandloansoftheEuropeanCommunity1979.44pages(pages18to
22dealwiththeEuropeanRegionalDevelopment Fund).
-Principalregulations oftheCounciloftheEuropeanCommunities on
regionalpolicy1979.17pages.(Textsofthemainproposals).
(1)DE:German;DK:Danish;EN:English;FR:French;IT:Italian;
NL:Netherlands .

-90-
c.Regionalpolicyseries:studies/programmes
-No.1.ThetrendinFlemisheconomyconsideredinaninternational
perspective .1973.88pages.
-No.2.Regionaldevelopment programmeforGreenland1977-1979.1977.
54pages(DA-EN,FR).
-No.3.Non-production activities inU.K.manufacturing industry.1977.
186pages(EN).
-No.4.Geographical concentration inEuropeanCommunitycountries.-
1977.136pages(DE,EN,FR,IT).
-No.5.Feasibility-study onthesituation anddevelopment possibilities
ofprospective regionallabourmarketbalancesintheEuropeanCommunity
1977.292pages(DE)(ENsummary)..
-No.6.Regionaldevelopment programmeMezzogiorno 1977-1980.1978.
270pages(DE,EN,FR,IT).
-No.7.Régionaldevelopment programmeIreland1977-1980.1978.142
pages(DE,EN,FR).-
-No.8.Régionaldevelopment programmes Netherlands 1977-1980.1978.
140pages(DE,EN,FR,NL).
-No.9.FrontierworkersinEurope(1).600pages(DE,FR).
-No.10.Regionaldevelopment programmeUnitedKingdom1978-1980.1978.
142pages(DE,EN,FR). ,
-No.11.Régionaldevelopment programmeGrandDuchofLuxembourg .1978.
70pages(DE,EN,FR).
-No.12.Regionaldevelopment programmes Denmark.1978.78pages(OA,
.DE,EN,FR).
-No.13.Régionaldevelopment programmes France1976-1980.1978.196
pages(DE,EN,FR).. -
-No.14.Régionaldevelopment programmes Belgium1978-1980.1980.
225pages(DE,EN,FR,NL).
(1)Incourseofpreparation .

-91-
-No.15.RegionalaidsintheEuropeanCommunity :acomparative study.
1980.268pages.
-No.16.Regionaldevelopment programmesoftheFederalRepublicof
GermanyincludingBerlin(West)1979-1982.1980.275pages(DE,EN,FR).
-No.17.Régionaldevelopment programmes .1979.330pages.(Summaries
ofprogrammesofallMemberStates,acomparative analysis,opinionand
recommendations oftheCommission).
d.Internaidocumentation onregionalpolicy
Thepapersinthisseriesarepublishedinalimitednumber,aboveall
asworkingpapersforCommission departments andotherCommunity
institutions .Theymaynevertheless beputatthedisposalofpersons
ororganisations outsidetheCommunitywithaspecialinterestinagiven
subject.
-No.1.Crossbordercommunications studyfortheLondonderry andDonegal
area:Summaryreport.
1978.28pages(EN).
-No.2.Researchstudyintoprovisionsforrecreation andleisurein
areasaffectedbyoilrelatedindustryintheHighlands andIslands
ofScotland:Summaryreport.
1978.140pages(EN).
-No.3.Development Strategyforregionsinruralareas:
ThecaseoftheBelgianSouth-East-Summaryreport.
1978.110pages(FR).
-No.4.FrontierworkersinEurope-Summaryreport.
1978.45pages.
-No.5.Relocation ofeconomicactivitestraditionally locatedinthe
Copenhagen area:Finalreport.
1978.225pages(EN).
-No.6.InterregionalairservicesinEurope.
Summaryofreport(1stphase).
1978.52pages(FR).

-92-
C.Maintextes(1)
UpdatedversionofthetextofCouncilRegulation (EEC)No724/75of18March1975
establishing aEuropeanRegionalDevelopment Fund
CouncilRegulation (EEC)No724/75of18March1975establishing aEuropean
RegionalDevelopment Fund(OJNoL73,21.3.1975,p.1)andtheamendments
arisingoutofRegulation (EEC)No214/79(OJNoL35,9.2.1979,p.1)arehereby
coordinated .
Thiscoordination iswithoutlegalstatus.Hence,thepreamblehasbeenomitted.
TITLE 1
PRELIMINARY PROVISIONS
Article 1
ThdEuropean Regional Development Fund,
hereinafter referredtoas'theFund',isintendedto
correcttheprincipalregionalimbalances withinthe
Community resultinginparticular fromagricultural
preponderance ,industrial changeandstructural
under-employment .
Article2
1.Asfromthefinancialyear1978,theendowment
fortheFundshallbedetermined annuallyinthe
generalbudgetoftheEuropeanCommunities .
2.Theannualbudgetshallindicateforthe
relevantyearundertheFundheading:
(a)commitment appropriations ;
-(b)paymentappropriations .
Savewhereotherwise providedforinthespecial
provisions laiddowninthisRegulation ,theFinancial
Regulation applicable tothegeneralbudgetofthe
Communities shallapplytothemanagement ofthe
Fund.■
3.Thefollowing maybefinancedbytheFund
withaviewtocontributing totherealization ofthe
objectives referredtoinArticle1:
(a)Community actioninsupportofregionalpolicy
measures takenbytheMemberStates,as
providedforinTitleIIofthisRegulation .TheresourcesoftheFundintendedforfinancing
theseactivitiesshallbedistributed inaccordance
withthefollowingtable:
Belgium
Denmark
Germany
France
Ireland
Italy
Luxembourg
Netherlands
UnitedKingdom1-39%
1-20%
60%
16-86%
6-46%
39-39%
0-09%
1-58%
27-03%
(b)specificCommunity regional development
measures ,asprovidedforinTitleIIIofthis
Regulation .Thesumallottedtosuchmeasures
shallamountto5%oftheFund'sresources .
Resources whichcannotbeusedintimeforsuch
measures shallbeallocatedtothesupporting
actionreferredtoin(a).
ThewholeoftheFund'sresourcesforfinancing
thesemeasuresshallbeusedhavingdueregard
.totherelativeseverityofregionalimbalances in
theCommunity .
Article3
1.Regionsandareaswhichmaybenefitfromthe
Fundshallbelimitedtothoseaidedareasestablished
byMemberStatesinapplyingtheirsystemsof
regionalaidsandinwhichStateaidsaregranted
whichqualifyforFundassistance .
WhenaidfromtheFundisgranted,priorityshallbe
giventoinvestments innationalpriorityareas,taking
accountoftheprinciples forthecoordination at
Community levelofregionalaids.
(1)PublishedinO.J.C36of9.2.1979.

-93
2.AspartofthespecificCommunity regional
development measuresreferredtoinArticle2(3)(b),
theFundmayalso,whereappropriate ,giveassistance
inregionsorareasotherthanthosereferredtoin
paragraph 1,forthesolutionofproblemsforming
thesubjectofCommunity action,iftheMember
Stateconcerned hasalsogivenassistanceordoesso
atthesametime.
TITLEII
COMMUNITY ACTION INSUPPORT OFREGIONAL
POLICY MEASURES TAKEN BYTHEMEMBER
STATES
Chapter 1
Fieldofaction
Article4
1.AspartofCommunity actioninsupportof
regionalpolicymeasurestakenbytheMemberStates,
theFundmaycontribute tothefinancing of
investments whichindividually exceed50000
Europeanunitsofaccountandcomeunderanyof
thefollowing categories :
(a)investments inindustrial ,handicraft orservice
activities whichareeconomically soundand
whichbenefitfromStateregionalaids,provided
thatatleast10newjobsarecreatedorthat10
existingjobsaremaintained .Inthelattercase,
theinvestments shouldfallwithintheframework
of9conversion orrestructuring plantoensure
thattheundertaking concerned iscompetitive .
Preftrence shall,however,begiventooperations
whichbothmaintainexistingjobsandcreatenew
jobs.
Serviceactivitiesqualifying forassistance shallbe
thoseconcerned withtourismandthosewhich
haveachoiceoflocation .Suchactivitiesshould
haveadirectimpactonthedevelopment ofthe
regionandonthelevelofemployment .
ForthepurposesofthisArticle,agroupof
investments whicharerelatedgeographically and
financially ,andwhichtogethercomplywiththe
criteriaprovidedforinthisArticle,maybe
considered asasingleinvestment inthefieldof
handicrafts ortourism:(b)investments financedwhollyorinpartbypublic
authorities orbyanyotheragencyresponsible ,
onasimilarbasistoapublicauthority,forthe
creationofinfrastructures ,andcovering,
providedthatthisisjustifiedbyregional
development programmes ,infrastructures which
contribute tothedevelopment oftheregionor
areainwhichtheyaresituated,providedthatthe
totalshareoftheoverallassistancegrantedby
theFundforfinancingtheinvestments referred
tointhispointdoesnotexceed70%ofthe
Fund'sassistance .
Thispercentage mustbecompliedwithovera
periodofthreeyears;however,itmaybe
exceededbydecisionoftheCouncilactingona
proposalfromtheCommission .
Inadministering theFund,theCommission shall
takeaccountoftheparticularsituationofcertain
regionsonthebasisoftheprogrammes referred
toabove.MemberStatesshalltakeallstepsto
enabletheprovisions ofthispointtobeapplied;
(c)investments ininfrastructures coveredbyArticle
3(2)oftheCouncilDirectiveonmountain and
hillfarmingandfarmingincertainless-favoured
areas,providedthattheless-favoured areain
questioncorresponds toorislocatedwithinone
oftheregionsorareascoveredbyArticle3of
thisRegulation .
2.TheamountoftheFund'scontribution shallbe:
(a)inrespectofinvestments coveredbyparagraph
1(a),20%oftheinvestment costwithout,
however,exceeding 50%oftheaidaccordedto
eachinvestment bypublicauthorities undera
systemofregionalaids,suchcontributions being
limitedmoreovertothatpartoftheinvestment
whichdoesnotexceed100000Europeanunitsof
accountperjobcreatedand50000European
unitsofaccountperjobmaintained .
Inthecaseofservicesandhandicrafts ,theFund's
contribution may,bywayofderogation fromthe
firstsubparagraph ,exceed20%ofthe
investment cost,providedthattheamountdoes
notexceedinsuchcase10000Europeanunitsof
accountperjobcreatedormaintained ,or50%
ofthenationalaid.
TheStjiteaidtobetakenintoconsideration shall
begrants,interestrebates,ortheirequivalent
whereloansatreducedratesofinterestare
concerned ,whethersuchaidislinkedtothe
investment ortothenumberofjobscreated.

-94-
Suchaidmayincludeaidgrantedinrespectofan
investment inconnection withthetransferof
plantandworkers.Theaidequivalent shallbe
calculatedinaccordance withanimplementing
Regulation underthetermsofArticle16.Aid
grantedintheformofrentrebatesorexemptions
frompaymentsofrentforbuildings,including
plant,mayalsobetakenintoaccount,provided
thatthesamecalculation ispossible.
Thecontribution fromtheFundthusdefined
may,pursuanttoapriordecisionoftheMember
Stateconcernedcommunicated atthesametime
astherequestforthiscontribution ,either
supplement aidgrantedtotherelevant
investment bypublicauthorities orremain
creditedtothoseauthorities andconsidered asa
partialrepaymentofsuchaid;
(b)inrespectofinvestments coveredbyparagraphs
1(b)and(c),30%oftheexpenditure incurred
bypublicauthorities wheretheinvestment isless
than10millionEuropeanunitsofaccountand
from10to30%maximumforinvestments of10
millionEuropean unitsofaccountormore.
However,themaximumratemaybe40%for
projectswhichareofparticularimportance to
thedevelopment oftheregioninwhichtheyare
situated .
TheFund'sassistancemayconsistwhollyorin
partofarebateofthreepercentagepointson
loansmadebytheEuropeanInvestment Bank,
pursuanttoArticle130(a)and(b)oftheTreaty,
intheregionsandareasreferredtoinArticle3of
thisRegulation .Inthatevent,theaidfromthe
FundshallbepaidtotheBankinoneinstalment,
therebatebeingacapitalizedsumexpressedasa
percentage oftheinvestment .
Chapter2
Procedural provisions
ArticleS
1.TheFund'sassistanceshallbedecideduponby
theCommission accordingtotherelativeseverityof
theeconomicimbalanceoftheregionwherethe
investment ismadeandthedirectorindirecteffectof
theinvestment onemployment .TheCommission
shallexamine,inparticular,theconsistencyofthe
investmentwiththerangeofactionsundertakenby
therelevantMemberStateinfavouroftheregion
concerned,asapparentfrominformation suppliedby
MemberStatespursuanttoArticle6andtakingspecialaccountof:(a)theinvestment scontribution totheeconomic
development oftheregion;
(b)theconsistency oftheinvestment withthe
Community 'sprogrammes orobjectives ;
(c)thesituationoftheeconomicsectorconcerned
andtheprofitability oftheinvestment ;
(d)whethertheinvestment fallswithinafrontier
area,thatistosay,withinregionsadjacentto
oneormoreotherMemberStates;
(e)othercontributions madebyCommunity
institutions orbytheEuropeanInvestment Bank,
eithertothesameinvestment ortoother
activities withinthesameregion.Thus
contributions fromtheFundwillbecoordinated
withotherCommunity contributions ,insucha
wayastofavourarangeo"fconverging and
coordinated actionswithinagivenregionandto
guarantee ,inparticular ,consistency between
regionalpolicyandstructural policyfor
agriculture .
2.(a)Inrespectofinvestments of10million
European unitsofaccountormore,the
Fund'sassistance shallbethesubjectofa
Commission Decisionundertheprocedure
providedforinArticle16.
Inrespectofinvestments ininfrastructure
costing10millionormoreEuropeanunitsof
account,theCommission shall,before
obtainingtheopinionoftheFundCommittee
referredtoinArticle15,consulttheRegional
PolicyCommittee .
(b)Inrespectofinvestments costinglessthan10
millionEuropean unitsofaccount,the
Commission shallprovidepriorinformation
fortheMemberStatesintheformofa
simplified listofinvestments forwhich
requestsforassistancehavebeenreceived.The
procedure providedforinArticle16shall
applyinthecaseof:
draftnegativedecisions,wherethe
MemberStateconcernedsorequests,
allotherdraftdecisionsinrespectof
whichtheCommission oraMemberState
wishesanopiniontobesoughtfromthe
FundCommittee .
Article6
1.Investments maybenefitfromtheFund's
assistanceonlyiftheyfallwithintheframework ofa
regionaldevelopment programme theimplementation
ofwhichissuchastocontributetocorrectionofthe
mainregionalimbalances withintheCommunity

-95-
whichmayprejudicetheproperfunctioning ofthe
commonmarketandtheconvergence oftheMember
States'economies ,withaview,inparticular ,tothe
attainment ofeconomicandmonetaryunion.
2.Regional development programmes shallbe
established according tothejointplanpreparedby
theRegionalPolicyCommittee .
3.MemberStatesshallnotifytheCommission of
regionaldevelopment programmes andalterations to
programmes alreadynotified.
4.Theprogrammes shallbeofanindicative
natureandspecifytheobjectives ofthedevelopment
oftheregionconcerned andthemeanstobe
employed .Theyshallbethesubjectofconsultation
withtheRegional PolicyCommittee .The
Commission shallexaminetheseprogrammes inthe
lightofthecriteriareferredtoinArticle5(1)(b)in
ordertoenableIttodetermine thepriorities for
assistance fromtheFund.
5.Before31Marcheachyear,MemberStatesshall
bringtheregionaldevelopment programmes upto
datebyproviding theCommission withallavailable
information forthecurrentyearnotcontained inthe
programmes on:
(a)thefinancial resources allocated toregional
development undertheirprogrammes ;
(b)theprioritymeasures relatingtoregional
development whichtheyintendtoimplement ;
(c)theusetheyintendtomakeofCommunity
resources ,andinparticular ofresourcesfromthe
Fundinimplementing theseprioritymeasures .
Anyotherrelevantinformation shallbeforwarded to
theCommission assoonasavailable .
6.Before1Octobereachyear,MemberStates
shallprovidetheCommission withanoverall
statistical summary indicating byregionforthe
previousyear:
(a)theresultsachievedintheregionintermsof
investment andemployment ;
(b)thefinancialmeansemployed ;
(c)theactualusemadeoftheresourcesoftheFund.
Article7
1.Member Statesshallsubmitrequestsfor
assistance fromtheFundtotheCommission ,andshallindicateanyfactorswhichwillallowthe
Commission toassessthevalueoftheinvestments
proposedinthelightofArticles5and6.
2.Inrespectoftheinvestments referredtoin
Article4(1)oflessthan10millionEuropeanunits
ofaccount,MemberStatesshallpresenttheirglobal
requestsatthebeginning ofeachquarter.Theyshall
grouptheserequestsbyregionandshallseparate
investments referredtoinArticle4(1)(a)from
investments ininfrastructure .
Theserequestsshallindicate :
(a)inrespectoftheinvestments referredtoinArticle
4(1)(a),thenamesoftheundertakings
concerned ,thesectoroftheiractivityandthe
locationofeachinvestment ,alsoitscharacter
(foundation ,extension ,conversion orrestructur­
ingoftherelevantconcern),thetotalamountof
investment involved,thepredictedoveralleffect
onemployment (creationormaintenance ),
estimatesregardingtheimplementation schedule,
totalaidsgrantedforwhichacontribution from
theFundisrequestedandtheschedulelaiddown
fortheirpayment ;
(b)inrespectofinvestments ininfrastructure ,the
locationofeachinvestment anditscharacter,its
contribution tothedevelopment oftheregion,
thepredictedtotalcostsandthecostsborneby
publicauthorities andtheschedulelaiddownfor
theirpayment,thenameoftheresponsible
authorities ,thetotalcontribution requestedfrom
theFund,andestimates regarding the
implementation schedule .
3.Inrespectofinvestments of10million
Europeanunitsofaccountormore,requestsshallbe
presentedseparately andshallincludethefollowing
information :
(a)inrespectoftheinvestments referredtoinArticle
4(1)(a)thenameoftheundertaking ,thesector
ofactivity,thenatureoftheinvestment ,its
location,theeffectonemployment ,the
implementation schedule,thegrants,interest
rebatesorloansatreducedratesofinterestand
theschedulelaiddownforthepaymentofsuch
aids,anyotherformofaidgrantedorprovided
forbypublicauthorities andthefinancingplan,
indicating inparticular anyotherCommunity
aidsrequestedorprovidedfor.
TheMemberStateshallstateinitsrequestthe
totalaidwhichinitsopinionshouldbegranted
totheundertaking andthecontribution itis
seekingfromtheCommunity :

-96-
(b)inrespectofinvestments ininfrastructure ,the
responsible authority,thenatureofthe
investment ,itslocation,itscontribution tothe
development oftheregion,itscost,itsfinancing
plan,itsimplementation scheduleandthe
schedulelaiddownforpayments .
4.AidfromtheFundshallbedetermined bythe
Commission :
(a)intheaggregateforeachrequestcoveredby
paragraph 2;
(b)casebycaseforrequestscoveredbyparagraph 3.
5.MemberStatesshallgivepriority ,tothe
presentation ofrequestsforcontributions towards
investments of10millionEuropeanunitsofaccount
ormore.
Article8
1.Theamolintofthecontribution fromtheFund
defined,whereapplicable ,bycalculating theaid
equivalentpursuanttotheimplementing Regulation
referredtoinArticle4(2)(a)shallbepaidpari
passuwithexpenditure uponpresentation bythe
MemberStateofquarterlystatements certifying
expenditure andtheexistenceofdetailedsupporting
documents ,andcontaining thefollowing
information :
(a)forintermediate paymentrequests :
–thenameoftheundertaking concerned ,or,
forinfrastructures ,thenameoftheresponsible
authority ,
–thelocationoftheinvestment ,
–totalpublicexpenditure paidafterthedate
referredtoinArticle11andthatpartofthe
amountforwhichpaymentisrequested,
–theamountofthepaymentrequestedfrom
theFund,
–aforecastoffuturepaymentrequests ;
(b)forfinalpaymentrequests,alltheinformation
referredtoin(a)exceptthelastindent,together
with:
–thesumactuallyinvestedandconfirmation
thattheinvestment madeconforms withthe
initialproject,
–thedateofcompletion oftheinvestment ,–thenumberofjobscreatedormaintained in
beingbytheinvestments referredtoinArticle
4(1)(a),
–theamountsofpublicexpenditure .
2.Incaseswhereexpenditure providedforbythe
decision referredtoinArticle7consistsofaids
grantedmthe-formofinterestrebatesorloansat
reducedratesofinterest,thecontribution oftheFund
relatingtotheseaidsandwhichisstillduewhenthe
investments arecompleted shallbesettledinasingle
paymentonpresentation ofthecertificates covering
completion oftheinvestments .
3.Accelerated paymentsunderadecisiontogrant
aidfromtheFundmaybegrantedbythe
Commission toaMemberStateatthelatter'srequest.
Theymaynotexceed75%ofthetotalamountof
theaidfromtheFund.Suchaccelerated payments
shallbesubjecttotheconditionthatatleast30%of
thepaymentsconstituting thebasisforaidfromthe
Fundhavebeenmade.
Paymentsalreadymadepursuanttoparagraph 1(a)
underthedecisiontograntaidshallbededucted
fromtheaccelerated payments .
ThebalanceoftheaidfromtheFundshallbepaidin
accordance withparagraph 1asregardspayments by
theMemberStatesnotcoveredbytheaccelerated
payment .
Groupedapplications foraccelerated paymentsshall
besubmitted onaquarterlybasistotheCommission
bytheMemberStateconcerned .
4.MemberStatesshalldesignatetheauthorityor
theinstitution authorized tofurnishthecertification
referredtointhisArticle.TheCommission shall
makepaymentstotheMemberState,toanagency
designated bytheMemberStateforthispurpose,or
ifnecessarytotheEuropeanInvestment Bank.
Article9
1.Whereaninvestment whichhasbeenthesubject
ofacontribution fromtheFundhasnotbeenmade
asplanned,oriftheconditions ofthisRegulation are
norfulfilled,thecontribution fromtheFundmaybe
reducedorcancelled ,iftheCommission sodecides
afterconsulting theFundCommittee .
Anysumswhichhavebeenpaidinerrorshallbe
repaidtotheCommunity bytheMemberState
concerned or,whereapplicable ,bytheEuropean
Investment Bank,within12monthsfollowing the
dateonwhichtherelevant decision hasbeen
communicated .

-97-
MemberStatesshallrepaytheCommission the
amountoftheFund'sassistance wherever national
aidusedasthebasisforcalculating theFund's
assistance hasbeenrepaidtotheMemberStateby
theinvestor .
2.Member Statesshallmakeavailable tothe
Commission allinformation requiredfortheeffective
operation oftheFundandshalltakeallstepsto
facilitatesuchsupervision astheCommission may
considerusefulinmanaging theFund,including
on-the-spotchecks.TheyshallnotifytheCommission
ofthecasesreferredtointhefirstsubparagraph of
paragraph 1.
3.Notwithstanding verification carriedoutby
MemberStatesinaccordance withnationallaws,
regulations andadministrative provisions and
withoutprejudicetotheprovisions ofArticle206of
theTreatyortoanyinspection arrangedonthebasis
ofArticle209(c)oftheTreaty,attherequestofthe
Commission andwiththeagreement oftheMember
State,thecompetent authorities ofthatMemberState
shallcarryouton-the-spotchecksorenquiriesabout
operations financedbytheFund.Officialsofthe
Commission maytakepartintheseproceedings and
thdCommission mayfixatimelimitforcarrying
themout.
4.Theobjectiveoftheseon-the-spotchecksor
enquiriesaboutoperations financedbytheFundshall
betoverify:
(a)theconformity ofadministrative practiceswith
•Community rules;
(b)theexistence ofsupporting documentary
evidenceanditsconformity withtheoperations
financedbytheFund;
(c)theconditions underwhichtheoperations
financedbytheFundareexecutedandchecked;
-(d)theconformity ofprojectsimplemented withthe
operations financedbytheFund.
5.^TheCommission maysuspendpaymentofaid
toaparticular operation ifaninspection reveals
eitherirregularities orasubstantial changeinthe
characterorconditions oftheprojectforwhichthe
Commission 'sapprovalhasnotbeensought.
6.Notwithstanding Article6(2)oftheFinancial
Regulation of21December 1977applicable tothe
generalbudgetoftheEuropean Communities ('),
ifaprojectreceivingaidfromtheFundisnotcompleted orisimplemented insuchamannerasno
longertojustifypaymentofpartoftheaidfromthe
Fundgrantedonbehalfofthatproject,the
outstanding partoftheFund'scontribution shallbe
grantedtoanotherinvestment locatedinoneofthe
eligibleregionsofthesameMemberStateunderthe
conditions laiddowninthisRegulation .
Article10
1.Theinvestorsconcerned shallbeinformedby
agreement withtheMemberStatesinquestionthat
partoftheaidgrantedtothemhasbeenprovidedby
theCommunity .Forinfrastructure projects,the
MemberStates,byagreement withtheCommission ,
shalltakeallnecessarystepstoensurethatassistance
fromtheFundisgivensuitablepublicity.
2.Thelistofprojectswhichhavereceived
contributions fromtheFundshallbepublishedevery
sixmonthsintheOfficialJournaloftheEuropean
Communities .
Article11
TheCommission shalltakeintoconsideration for
Fundassistance payments madebytheMember
Statesasfromthe12thmonthbeforethedateon
whichitreceivestherequestforassistance ,inrespect
ofinvestments notcompleted bythatdate.This
periodshallbeincreasedto24monthsforpayments
inrespectofinvestments inGreenland .
Article12
1.TheFundmaycontribute tothefinancingof
studieswhicharecloselyrelatedtoFundoperations
andareundertaken attherequestofaMemberState.
2.Suchassistance maynotexceed50%ofthe
costofthestudy.
TITLEIII
SPECIFIC COMMUNITY REGIONAL DEVELOPMENT
MEASURES
Article13
(')OJNoL356,31.12.1977,p.1.1.TheFundmayparticipate infinancingspecific
Community regionaldevelopment measureswhich

98-
differinwholeorinpartfromthetypesofmeasure
referredtoinTitleII.Theseshallbemeasures :
–eitherlinkedwithCommunity policiesandwith
measuresadoptedbytheCommunity inorderto
takebetteraccountoftheirregionaldimension or
toreducetheirregionalconsequences ,
–or,inexceptional cases,intendedtomeetthe
structural consequences ofparticularly serious
occurrences incertainregionsorareaswitha
viewtoreplacing jobslostandcreatingthe
necessaryinfrastructures forthispurpose.
Thesemeasures shallnothaveastheirobjectthe
internalreorganization ofdecliningsectorsbutmay,
byestablishing neweconomicactivities,promotethe
creationofalternative employment inregionsor
areasinadifficultsituation .
Thesemeasures shallbefinancedjointlybythe
Community andtheMember StateorStates
concerned .
2.MemberStatesshallprovidetheCommission
withinformation onregionalproblems likelytobe
thesubjectofspecificmeasureswithinthemeaning
ofparagraph 1.
3.Withoutprejudicetotheresponsibilities ofthe
Commission withregardtoStateaidunderArticles
92,93and94oftheTreaty,theCouncil,acting
unanimously onaproposalfromtheCommission
andafterconsulting theEuropeanParliament ,shall
determine foreachofthesemeasures tobe
implemented intheformofaspecialprogramme :
(a)thenatureoftheoperations towhichtheFund
maycontribute ;
(b)theareasandregionswhichtheFundmayassist;
(c)thenationalpublicaidtakenintoconsideration
ingrantingFundassistance ;
(d)thecontribution oftheFund;
(e)thecategories ofbeneficiaries ofFund
assistance ;
(f)thedetailedrulesforfinancing .
4.RequestsforFundassistance forthesespecial
programmes shallbesubmitted totheCommission
bytheMemberStates.Thefifthsubparagraph of
Article4(2)(a)andArticle10shallapply.Article14
1.TheFundmaybearallorpartofthecostof
studieswhicharecloselyrelatedtothemeasures
referredtoinArticle2(3)andareundertaken atthe
requestofoneormoreMemberStates.
2.TheCommission shalldecidewhethertogrant
assistance fromtheFundinaccordance withthe
procedure laiddowninArticle16,afterconsulting
theRegionalPolicyCommittee .
TITLEIV
GENERAL ANDFINALPROVISIONS
Article1S
1.AFundCommittee (hereinafter referredtoas
'theCommittee' )isherebyestablished .Itshallbe
composed ofrepresentatives oftheMemberStates
andchairedbyarepresentative oftheCommission .
2.WithintheCommittee thevotesoftheMember
Statesshallbeweighted inaccordance withArticle
148(2)oftheTreaty.Thechairmanshallnotvote.
Article16
1.Wheretheprocedure laiddowninthisArticleis
tobefollowed,thechairman shallreferthematter
totheCommittee eitheronhisowninitiativeorat
therequestoftherepresentative ofaMemberState.
2.Therepresentative oftheCommission shall
submitdraftsofdecisions tobetaken.The
Committee shalldeliveritsopiniononthedrafts
withinthetimelimitwhichthechairmanmayfix
according totheurgencyofthequestions under
consideration .Anopinionshallbeadoptedbya
majorityof41votes.
3.TheCommission /shalladoptdecisionswhich
shallapplyimmediately .However ,ifthesedecisions
arenotinaccordance withtheopinionofthe
Committee ,theyshallforthwith becommunicated
bytheCommission totheCouncil.Inthateventthe
Commission shalldeferapplication ofthedecisions
whichithasadoptedfornotmorethantwomonths
fromthedateofsuchcommunications .TheCouncil,
actingbyaqualifiedmajority,maytakeadifferent
decisionwithintwomonths.

-99-
Article17
TheCommittee mayconsideranyotherquestion
concerning theFund'soperations referredtoitbyits
chairmaneitheronhisowninitiativeorattherequest
oftherepresentative ofaMemberState.particular ,theprovisions ofthisRegulation shallnot
prejudicetheapplication ofArticles92,93and94of
theTreaty,particularly asregardsestablishing and
realigning theareasaidedforregionalpurposes
referredtoinArticle3andinrespectoftheamount
ofthecontributions fromtheFund.
Article18
Thenecessary measuresfortheimplementation of
thisRegulation shallbeadoptedinaccordance with
theprocedure laiddowninArticle16.
Article19
1.Member Statesshalladoptthenecessary
measurestoindicateseparately ,according tothe
specialcharacteristics ofnationalbudgetsystems,the
sumsreceivedfromtheFund.
2.AttherequestoftheCommission ,Member
Statesshallprovideitwithinformation onthe
allocation oftheamountsreceivedfromtheFund.
Article20
Assistance fromtheFundshallnotchangethe
conditions ofcompetition inawayincompatible with
theprinciplescontained intherelevantprovisions of
theTreaty,aselaborated intheprinciples forthe
coordination ofthegeneralregionalaidschemes .InArticle21
1.Before1OctobereachyeartheCommission
shallpresentareporttotheCouncil,theEuropean
Parliament andtheEconomic andSocialCommittee
ontheimplementation ofthisRegulation duringthe
precedingyear.
2.Thisreportshallalsocoverthefinancial
management oftheFundandtheconclusions drawn
bytheCommission fromthechecksmadeonthe
Fund'soperations .
Article22
OnaproposalfromtheCommission ,theCouncil
shallre-examine thisRegulation before1January
1981.
Article23
ThisRegulation shallenterintoforceontheday
followingitspublication intheOfficialJournalofthe
European Communities .

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COUNCIL RESOLUTION
of6February1979
concerning theguidelinesforCommunity regionalpolicy
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing the
European Economic Community ,
Havingregardtotheguidelines forCommunity
regionalpolicysubmitted bytheCommission tothe
Council,
Whereasthestrengthening ofCommunity regional
policyisoneoftheconditions uponwhichthe
furthereconomic integration oftheCommunity
depends;
Whereas,inspiteofeffortsbytheMemberStatesand
theCommunity tospeedupthedevelopment ofthe
least-favoured regions,thedisparities betweenregions
remain;
WhereasthesituationinsomeCommunity regionsis
madeallthemoredisturbing bythefactthatthe
economiccrisisintheCommunity since1973hasled
toalastingdeclineingrowthandhasweakened the
propensity toinvest;whereas,furthermore ,the
structural changeswhichhaveaffectedtheworld
economyareinvolvingtheCommunity economyina
processofextensiverestructuring ,socreatingnew
sourcesofregionalimbalances ;
Whereastheestablishment ofanoverallframework
fortheanalysisandformulation ofaCommunity
regionalpolicyshouldthereforebeencouraged so
thattheCommission canproposepriorities and
guidelines totheCouncilforCommunity and
nationalregionalpolicy;
Whereastheguidelines contained inthefourth
medium-term economic policyprogramme stipulate
thattheimplementation ofgeneralandsectoral
policiesinMemberStatesshouldbeaccompanied by
anexamination oftheirregionalimpact;whereasthis
approach shouldbeextended toembrace the
implementation ofCommunity policies;
WhereasnationalandCommunity regionalpolicies
mustbecoordinated ifabalanced distribution of
economic activities intheCommunity istobe
progressively achieved,HEREBY ADOPTS THISRESOLUTION :
1.Comprehensive systemofanalysisandpolicy
formulation forCommunity regionalpolicy
Regionalpolicyisanintegralpartoftheeconomic
policiesoftheCommunity andtheMemberStates.It
formspartofthevariouselementswhichcontribute
totheattainment ofahighdegreeofconvergence of
theeconomicpoliciesoftheMemberStates(').
Theestablishment ofacomprehensive systemof
analysisandpolicyformulation forCommunity
regionalpolicyshouldmakeitpossibletoestablisha
common basisofassessment .Tothisendthe
Commission ,workinginclosecollaboration withthe
RegionalPolicyCommittee ,willprepareaperiodic
reportonthesituation andsocio-economic
developments intheregionsoftheCommunity .On
thebasisofthisreporttheCouncilwilldiscussthe
priorities andguidelines proposed bythe
Commission . '
TheCouncilnotestheCommission 'sintention of
establishing thiscomprehensive systemofanalysis
andpolicyformulation .Tothisend,theCommission
andtheMemberStateswilljointlyimprovethe
statisticalandregionalanalysismachinery .
2.Assessment oftheregionalimpactofCommunity
policies
Theprincipal Community policieshaveregional
implications ,particularly asregardsemployment .
Inaccordance withtheguidelines setoutinthe
fourthmedium-term economicpolicyprogramme (2),
theCouncilnotestheCommission 'sintention of
takingmoresystematic accountoftheseimplications
whenformulating andimplementing thesepolicies.It
statesitsintention oftakingaccountofthese
implications whenadoptingitsdecisionsrelatingto
thesepolicies.
(')CouncilDecision74/120/EECof18.2.1974,OJNo
L63,5.3.1974.
(2)OJNoL101,24.4.1977.

Article3
1.TheMember StatesandtheCommission shall
eachappointtwomembers totheCommittee .They
mayappointalternates .Themembers ofthe
Committee ,andthealternates ,appointed bythe
MemberStatesshallbeselectedfromamongsenior
officialsresponsible forregionalpolicy.
2.ExceptwheretheCommittee shalldecideother­
wise,themembersmaybeassistedbyexperts.
3.TheEuropeanInvestment Bankshallappointan
observer totheCommittee .
Article4
4
1.TheCommittee shallbymajorityvoteappoint
itschairman andvice-chairman fromamongits
members foraperiodoftwoyears.Theirtermof
officemayberenewed .2.TheCommittee mayentrustthestudyofparti­
cularquestions toworkingpartiescomposed of
certainofitsmembersorofalternatesorofexperts.
3.TheCommittee 'ssecretariatshallbeprovidedby
theCommission .
4.TheCommittee shalldrawnupitsownrulesof
procedure .
Article 5
TheCommittee may,inaccordance withitsrulesof
procedure ,receivefrominterested partiesfromthe
regionsandfromtradeunionandbusinessorganiza­
tions.