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COM(78)89
Vol.1978/0032

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)89final.
Brussels.10April1978
\
Proposalsforcommunityaidsto
promotetheemploymentofyoungpeople -
(submittedtotheCouncilToytheCommission}),
F<dd
%'
?8)89final

STATE .OFWORK INTHE FIELD OFYOUTH EMPLOYMENT
I.Purpose ofthis Communication
1. Atitsmeeting on28October 1977 ,theCouncil held apreliminary
discussion onthequestion ofyouth employment ,based onacommunication
from the Commission .Itinvited the Commission to :
-develop detailed proposals forCommunity a"id toprogrammes designed toencourage
youth employment inMember States .Theproposals should beselective andensure
that theaidbegranted where theneed isgreatest ;
-develop actions tostrengthen thelinks between training forschool-leavers and
youth employment within theframework oftheEuropean Social Fund ;
I
-increase aidandcooperation between Member States onthedevelopment oftheir
institutions inorder *toimprove thebalance between supply and demand onthe
labour market .
2. TheCommission ,asafirst reply tothis invitation ,issubmitting to
theCouncil aproposal aimed atCommunity support ,within theframework of
theESF,of aids toyouth employment .
Itfelt ,however ,that theproposal should beaccompanied' byageneral
communication detailing thevarious other work ithasundertaken inthis
field andthecontext inwhich itplans toinsert proposed new aids inorder
tooutline theadditional directions inwhich theCommunity could develop
its efforts . *
II.Theproblem ofyouth employment
3. Developments inthe last sixmonths have confirmed theanalysis which
theCommission putbefore theCouncil inOctober 1977 ,ofwhich themajor
points are asfollows :
4. InDecember 1977,6 .043 .000persons were registered asunemployed inthe
European Community ;they represented 5.7% ofthecivil working population .
This wasthehighest recorded level ofunemployment inthehistory ofthe
*i'
European Communities .
5. Demographic factors play amajor role .Itisestimated that theworking
population intheCommunity will increase by4.5million persons (4%)between
1975 and1980 andbysome 5million persons (4.5% )between 1980 and1985 =,
Inthenext tenyears ,thenumber ofyoung persons reaching working agewill be
particularly high (onaverage ,over 4million ayear )andthenumber ufperson *
reaching retirement agewill beabnormally low (anannual average ?ofonly 2.5
million persons ).

-2-
6. The shortage ofjobs isparticularly narked with regard totheyoung
generations just coming onto the labour market :in1975 ,young persons
represented 38% ofthetotal number ofunemployed ,whereas they represented
only 17%oftheworking population .The rate ofunemployment ofyoung persons
aged under 20isabout three times higher than theoverall average ,whi1st
that oftheyoung persons aged between 20and 25isalmost double theoveralt
average .This isduetothepresent structure ofthe labour market (recruitment
costs ,reluctance torecruit ,priorities given under laws andagreements to
workers insitu ).
7. Youth unemployment isalso influenced bycertain qualitative factors ,
such asdistortions between educational systems ,the skills offered andthe
rigidity ofprofessional hierarchies .Furthermore therebuilding ofagrowth
favourable toemployment risks felling torcorrect theimbalance ontheemployment
market .
8. TheCommission isconvinced that acoherent policy tofight youth
unemployment canonly bedeveloped intheframework ofaprogramme drawn up
insuccessive stages .TheFund instrument ,which hasalready been theobject of
fundamental adaptations ,andmore especially thenew proposal forCommunity
support foraids topromote youth employment ,will serve tocover this objeotive .
9. Thedemographic profile ofthecoming years andtheperspectives
ofadifferent growth areattheroot ofasituation which isradically
different from theonewhich prevailed over the last twenty years .This
quantitative imbalance ,however ,hasbrought tolight aseries ofqualitative
imbalances which accumulated over along period inthearea oftherelation­
ship between education ,employment andworking conditions .
10. The pro' ?mofyouth employment isnot alocalised onecapable of
being solved bya .cries ofspecific measures .Itwould beillusory toexpect
labour market polic /;,»lont »toimprove asituation caused byeconomic mechanisms
^ntheonehand andthedevelopment ofeducational systems ontheother hand .
11- Since 1975-76 ,allMember countries have instituted measures toremedy
theimmediate consequences ofyouth unemployment :more vocational training
courses financed bytheState>subsidies ortaxrelief onyouth recruitment ,
recruitment insectors ofgeneral interest .TheCommission hasdrawn upa
1preliminary report onthese measures ii>adocument forwarded totheCouncil .
1fOM f77V7A

12. But,while these measures were being discussed among theMember
countries ,afact wasbecoming increasingly clear . Palliative measures
are forthemost part designed tocope with conjunctural recession ,they must
besupported byin-depth action capable ofdealing with the lasting nature
ofthepresent situation .Thegeneral growth ofemployment mufet bereestablished
andvocational training andeducation adapted totheevolution ofthe labour
market .
III .The role ofthe Community
13. Initscommunication totheCouncil ofOctober 1977 ,the Commission
*
referred totheneed both toundertake short-term measures capable ofrelieving
thesituation andtoprepare measures togradually remedy thedeep-lying causes
ofthe situation ,bymeans ofresearch and analyses ,exchanges ofexperience and a
critical review ofpast measures .Italso reminded the Council that themeans
available totheCommunity totake action inthe three major fields ofeconomic
policy ,labour market policy andeducational policy were very unequal .
(i)Measures concerning the demand for employment
14. Asregards general economic aspects ,theCommission will refer here only
totheefforts ithasmade toreestablish agrowth rate favourable tostability and
employment •(l)
Itshould benoted inthis context that theStanding Committee onEmployment ,
having agreed toconsider worksharing asadesirable concomitant togeneral
economic policy measures ,has invited theCommission todevelop itsinitiatives
inthis field .
* 
15.During 1975 and1976 theERDF contributed tothecreation of
185.000 jobs .Foritspart theE.I.B. in1976 agreed loans foran
amount ofapproximately 1.086 M.U.C.
InIf77 * "thereconversion grants given under article 56
ECSC have helped tocreatefiRoOO jobs .These resources will soon be
completed byanewinstrument ofCommunity loans forstructural measures
which isaimed athelping therecovery ofinvestments andwill thus
also helpthecreation ofnewjobs .
(l)e.g. 4thMedium Term Economic Programme jtheTripartite Conference j
EMUProgramme

I
<ii)Measures concerning thetransition from school towork andyoung persons '
first jobs .
16. Themeasures areasfollows :(a)specific measures ,and
(b)measures toboost thedevelopment of
national training andplacement systems .
(a)specific measures
Pilot schemes carried out bythe Education Committee
17. Inaccordance with theResolution adopted bytheCouncil andtheMinisters
forEducation meeting on13December 1976 ,aprogramme ofpilot schemes tobe
completed bytheend of1980 wasdrawn up.Thepurpose ofthese ,measures isto
develop effective methods offacilitating thetransition ofyoung persons from
school toworking life .Theschemes adopted include strengthening guidance and
consultation ,continuous training forinstructors,vocationa Itraining andspecific
measures aimed atyoung persons inparticularly vulnerable groups .
More especially ,efforts should bemade intheassessment ofthese pilot schemes to
ensure exchanges ofexperience atCommunity level .
Aids toyoung persons inagriculture
18. During 1975*1976 and1977 F.E.O.G.A. contributed totheimplemention ofsocio­
economic guidelines foryoung agricultural workers ,through finance
amounting to4M.U.O. In1975 ,theCommission submitted aproposal fora
Directive totheCouncil granting special financial aidtoyoung persons entering
agriculture .Theproposal isstill being examined bytheCouncil .
European Social Fund
19. Since July 1.75 ,theEuropean Social Fund hasgranted over 280million
u.a.(under Article 4)tovocational training programmes foryoung unemployed ■*
persons .
Over200000young persons havebenefited fromthistypeofaotion whioh ,forthe
mostpart,wasgranted for thepreparation oftheyoung forwording life,
inaccordance withtheCommission Recommendation inthisfield .Thisfigure
would beeven higher ifaccount were taken ofthefact that theESFalso
provides aidinother fields ,e.g.,thehandicapped,agriculture .
These measures arebacked ,whennecessary ,byhheEIB ,ndEKDF *tofinance the
setting-up oftraining centres .Uptono>/,three centre ;-ofthistypehave
received assistance .

-s-
Proposal for new ESF aids tojob creation measures
20. This brief survey should also mention thepossibilities provided
bytheexchange ofworkers (Art .50oftheTreaty ).Inoperation since 1964
onalimited scale ,these exchanges should receive fresh impetus .TheCommission
iscurrently drawing upanewprogramme ,with wider reaching qualitative and
quantitative objectives .Theproposals itintends tosubmit will transform the
earlier guidelines forthetraining courses (whose succes was limited )through anew
approach involving study tours ofshorter length .
Proposal for anewESFaid forthecreation ofemployment j
21. This newaction ispresented bytheCommission intheproposal appended
i . . 1tothis Communication .
(b)Measures aimed atthe development ofnational training and placement systems
22. Inaddition totheabove mentioned specific . /measures , .
itbecame necessary todevelop anin-depth action toencourage theadjustment of
national training andplacement systems *Inthemajority ofMember countries ,these
systems , are finding itvery
difficult toadjust tonewcircumstances .Theneeds which crop upmost frequently
are notfinancial butconceptual andtechnical *Itwas found that theCommunity .
could provide acontribution inthe form ofcomparative studies ,comparison of
experiences ormore Intensive cooperation .
23. In1977 ,theCommission addressed aReoommendation onthevocational preparafcLai
oftheyoung totheMember States .This wastoencourage thesetting-up ofaperiod of
preparation forworking life foryoung school-leavers without vocational training .
Member States aretofurnisb reports ontheimplementing oftheRecommendation ,which
also provides theESFwith guidelines onyouth aid .Itsimplementation isalso being ,
followed byCEDEFOP (European Centre forDevelopment ofVocational Training ),a
Community body setupin1976 with ,,thetask ofsupporting Community vocational
training policy . .•- Ί
24. Aseries ofstudies hasbeen compiled oniheapprenticeship systems in
firce inMember Countries .
TheCommission iscurrently examining theresults ,v
25. Thejobcreation oremployment programmes arethesubject ofanoverall
study covering four countries ,the ,purpose being tocompare solutions .

These studies form part ofaLarger study programme onthe labour market begun
in1975 .
Different lines ofwork have been undertaken inorder tocontribute
tothesolution ofthequalitative imbalances that arepreventing anadjustment between
the supply ofarddemand for employment ,andaffecting the young inparticular .
Within the framework ofSEDOC (European Sysytem oftheinternational clearing of
vacancies andapplications for employment )aregistry ofoccupational activities
and occupations has been completed for the use ofnational placement services .
The Commission has now started putting the SEDOC system into action with the
assistance ofthenational placement systems inorder tofacilitate thegeographical
mobility oflabour within the Community .Important work onthe development of
qualifications and the wayitrelates totechnology andtraining(undertaken with
theassistence oftheBerlin Centre )isnow being exploited andisarousing
great interest among users .Inaddition ,the Dublin Foundation for the Improvement
ofLiving and Working Conditions hasincluded the upgrading ofmanual trades
inits programme ofwork .Each oneofthese measures islikely toincrease young
persons *chances ofaccess tostable employment .
26. Aquestion ofcentral importance concerns therelationship between each
link ofthe education -training -placement -employment chain .The necessary decentra­
lization between these various stages must becompensated bystrengthening the links
between the persons responsible for each one.
27. Furthermore ,theproblem 3Hfie^mportance oftheplacement services ,
which areparticularly suitable ,given theappropriate instruments ,fortransmitting
information atlocal andnational level between the economy and education .For
* 
this reason ,the Commission intends todevelop cooperation between theplacement
services .

-7-
\/Supplementary measures
28.Faced with aproblem ofconsiderable scope involving different types ofremedies ,
the Commission has mobilised its resources tomake aviable contribution .
Itsfinancial assitance ,legislative action ,technical andoperational activities
must befocused ontheneed tosupport Member countries'efforts /toencourage them
todevelop in-depth measures .
29. Itisprimarily aquestion oftaking stock ofafundamentally newsituation
and ofadjusting traditional instruments ormeasures that have been setupinthe
short -ormedium-term inthe last three years .
30. Asitswork develops ,theCommission will keep theCouncil andtheStanding
Committee onEmployment informed .Itisprepared tosupplement this instrument with
other proposals asandwhen theneed forCommunity financing ,legislation oroperatio­
nalassistance aredefined .Itisconvinced that ayouth employment promotion policy
should bedeveloped instages .
31. With theaimofpromoting adynamic policy topromote youth employment
itwill present ,when thetime isright ,newappropriate proposals drawing on
all the means available toit.

ProposalforaCouncilRegulationconcerning
thecreationofanewEuropeanSocialFund
aidinfavourofyoungpersons

ProposalforaCouncilRegulation
concerningthecreationofanew
EuropeanSocialFundaidinfavour
ofyoungpeople
Explanatory memorandum
1.InrecentyearsalltheMemberStateshavetakenmoredirectactionin
variousformsandtodifferingdegree.stofacilitatetheaccessofyoung
personstoemployment.TheCommissionhasdrawnupaprovisionalstate­
ment(1)/showingthatthesemeasurescorrespondtoagrossannual
expenditure ofabout350millionu.a.andrelatetosome220,000young
persons.
2.Intervention takestwoforms:
-recruitment premiumsgivenasanincentivetoundertakings toincrease
theirlabourforcefortheirnormalactivity.Theincentivetorecruit
maytaketheformsofpremiumspaiddirectlytoemployers,oritmaybe
intheformofareductioninemployers *socialsecuritycontributions .
*
Thepremiumisusuallygrantedforalimited,period(oftensixmonths)
foreveryadditionalworkerrecruited.
Adistinction shouldbemadebetweenrecruitment premiumsintendedtc
increaseemploymentandemploymentmaintenance premium;,whichare
simplydesignedtomaintainthefirm'sworkforceatagivenlevel.
./.
(1)Doc.C0MC77)476final.Annex

-2-
-Subsidiesforprogrammesinvolvingtherecruitment ofyoungpeoplefor
newlycreatedjobsinthecontextofactivitiesorservicesinthe
publicinterest(1).
3.Bothtypesofsubsidiescoverabroadrangeofjobcreationmeasuresfor
youngpeople.TheCommissionintendstoencourageMemberStatestoex­
pandthembymeansofanewCommunityaidmeasureundertheEuropean
SocialFund.Thisaidwhichwillcover:extendingthescopeofassis­
tancebeyondaidstovocationaltrainingandtomobility.
-expenditure onemploymentsubsidiesinrespectofyoungpeopleunder
25newlyrecruitedbyundertakings intheproductionsector;
-expenditure inrespectofwagecostsforyoungpeopleunder25incur­
redinconnectionwithnewlyestablished programmesinthepublic
interest.
4.TheaidwillbegrantedundereitherArticle4(intervention-young
people)orArticle5ofDecision71/66/EEC(2),asamendedbyDecision
77/801/EEC(3). ,
ι ■
Intheoryitwouldhavebeenpreferabletorestrictthenewmeasurestoi
"youngpeople"asdefinedinArticle4ofDecision75/459/EEC(4)as
amendedbyDecision77/802/EEC(5),topreservethespecificnatureof>
theactionandforthesakeofgoodmanagement;butsucharestriction
t
mightdeprivetheSocialFundofthenecessarymeanstosuccesfully
implementthenewmeasures.TherulelaiddowninArticle9ofDecision
71/66/CEE(2)asamendedbyDecision77/801/EEC(3)predetermines the
divisionofappropriations betweenintervention underArticle4(speci­
ficjointaction)andArticle5(actionsfallingunderMemberStates'
Laboi<>"marketpolicies)(6).Anincreaseintheappropriations under ;
Article4wouldthereforecomeupagainstlimitswhichwouldmakeit
difficulttoplanactiontohelpyoungpeopleonasufficiently large
scale.Moreover,thislimitation mightresultinareductionofexpendi­
turemadeft'*theotherareasunderArt.4(ex-farmers,textiles/clothing,mi
grants,women.Forthisreason,budgetaryireanstoimplementthenew
measuresmustalsobesoughtunderArticle5.
./.
(1)Examplesofthesetwomeasurescanbefoundinthe"statement"provided •
asannextothedocumentreferredtoabove.
(2)OJn°L28,4.2.1971,p.15
(3)OJN°L337,27.12.1977,p.8
(4)OJN°L199,30.7.1975,p.36
(5)OJNoL337,27.12.1977,p.10
(6)Thisruleroadsasfollows:Appropriations forinterventions inrespect
ofoperationsunderArticle5(1)whicharectfriedoutinregionsrefer­
redtoinArticle5(1)(a)shallrot,inany.""ar,belessthan50%
ofthetotalappropriations availhie".

-3-
Some applications /inparticular those concerning action tohelp young
people intheregions referred toinArticle 5(1)(a )ofDecision
71/66/EECcould bepresented either under Article 4("young people ")or
Article 5.Itwould beuptothe Commission ,incooperation with the
Member States ,toensure that theprojects aredivided between the two
areas ofintervention with due regard tobudgetary constraints .Further ,
the Commission -wi11have toensure ,through theguidelines forthe mana­
gement ofthe Fund (Article 3aofRegulation (EEC)n°2396/71),that
although the new aid measures have adifferent legal basis the same
principles ofselection are applied and thespecific nature ofprojects
for young people ispreserved .
5.The substance andtechnical aspects ofthe new aid measures will have tobe
specified inthelight ofthecharacteristics ofeach type ofaid
and the impact expe cted .from the Community aids .More particularly
Fund assistance approved under the new aid measures must provide sufficient
incentive and atthe same time must contribute toamore equitable
distribution ofthefinancial burden they represent 'between promoters and
publics authorities ,who donotall have the same means todevelop their
programmes .
1
6.Consequent ly,the level ofassistance will bedifferent forthe two types
ofaids .Thesize ofthe subsidy tobegranted under each intervention
measure andtheresulting repercussions oncompetition )will vary
depending onthegreater orlesser impact ofthe actions ,the savings
achieved bythe Member State (recovery offunds spent onunemployment allo­
wances for example ),orthepromoters' ability tomobilize financial re­
sources .Care must betaken toensure that massive recourse toFund inter­
vention does not lead tothe commitment oftoogreat ashare ofavailable
appropriations andthat theassistance granted does nottooclosely reflect
existing differences inwage levels between thecountries .
1(>

-4-
7.Takingallthesefactorsintoaccount,itwouldseemappropriatetoli-
,#mitexpenditureeligibleforFundassistanceunderthenewmeasuresto:
-amaximumof30EUAperpersonperweekforrecruitment premiums,and
-amaximumof60EUAperpersonperweekforemploymentprogrammes.
8.UnderArticle8ofCouncilDecision71/66/EEC(1),asamendedbyDecision
77/801/EEC(2),layingdowntheFund'sintervention rates,Community
contributions tonationalinitiatives mayneverexceed50%ofthesetwo
amountsexceptinthecaseofoperationscarriedoutinregionsdefined
inCouncilRegulation (EEC)No2895/77,whereahigherintervention rate
(plus10%>isapplied(3).
9.Incalculating theamountofCommunityassistance,theduration
oftheperiodofapplicationwillhavetobetakenintoaccount:j
-forrecruitment premiums:26weeks ••
-foremploymentprogrammesinthepublicinterest:52weeks,i
Inthelattercase,paymentofcontributions mayextendoveralonger
period,sincetheirsuccessdependslargelyonsizeableandcontinuous
publicfinancing,particularly sincealthoughtheproductofsuchactivi­
tiescorrespondstorealneedsitishardtoevaluateitaccordingto
theusualcriteriaofeconomicviability.
Thepremiumspayableunderthisprogrammecannotbeusedtosupportas-;
sistanceaimedatemploymentmaintenance.
(1)0JN°L28,2.1971,p.15
(2)0JN°L337,27.12.1977,p.8
(3)OJN°L337,27.12.1977,p.7

-5-
10.Lastly,itshouldbepointedoutthatforobviousreasonsofgoodmanagement,
anycombinationoftheaidmeasurewithaid(e)(1)providedforinArticle
3(3)ofCouncilRegulation (EEC)N°2396/71will.havetobeavoided.Nor
shouldthelatterconstitute analternative tothenewaidmeasuresfor
specialprogrammestohelpyoungpeople.Itmaybeused,asinthepast,to
encouragethepromotionofemploymentamongstothercategoriesofworkersin
theregionsreferredtoinArticle5(1)(a)ofDecision71/66/EEC.
•t ;
i
11.TheorderofprioritytobedefinedbytheCommissioninordertoesta-
ι
blishguidelinesfortheadministration ofthenewaidwillhavetotake;
accountofthefollowingideas:
-thenewaidsupplementing theCommunityintervention systemcanplay
alimitedroleonlyinrelationtothevastrangeofneeds;thenew
jobslikelytohaveadetermininginfluenceonthereabsorption of
youthunemployment mustthereforebecreatedwithintheframeworkofthe
normaleconomicprocess.Aidstoemploymentareliabletoresultinthe
creationoftemporaryorunstablejobsiftheyarenotappliedwitha!
viewtorealandviableneeds. I
-Thegravityoftheyouthemploymentsituationneverthelessjustifies
everyefforttoensurethattheSocialFundtakespartincertainmeasures,
eitherinthecontextofanaidtoec'onomicrevivalorinthatofare­
distribution ofthelimitedvolumeofavailablework,soastobenefit :
categoriesofworkersexcludedfromthelabourmarket. ;
-TheboundariesofCommunityaidmustbecarefullydrawn.TheCouncilex­
pressedthehopethatintervention bytheSocialFundbeselectiveand,
grantedtosituationsinwhichtheneedsaregreatest.Thedevelopment
oftheproposedmeasuresmustbeassistedincountriesorregionswiththe
highestrateofyouthunemployment .
-TheSocialFundmustnotlimititselftosimplysupportingnationalmea-
!suresalreadyadopted.Itshould,bymeansofitsselectivecriteria,
influencethequalityoftheprojectstobefinanced.The"additionally "
criterionmustoperatebothinquantitative terms,inless-favoured ;
1
countriesorregions,andinqualitative terms,inthenatureandthe
resultoftheoperations.
; ./.•'
(1)ThisaidincludesthepossibilityoftheE„S.F.bearingthecostof
partoftheremunerationofworkersnewly-recruited inFEDER(European
RegionalDevelopment Fund)regions,foraperiodofsix-months.
i(
'J
J4"I•• '-40•:••>'•!> '>' '<•>
'II,...,t >':''•''|'t1■'<•'■
îf'fi'-i *t.

WhentheCouncilhasdecidedonthecurrentproposal,theCommissionwill
completetheguidelines ontheadministration oftheFundasrequiredunder
Article3bisofRegulation (EEC)no.2396/71inordertotakeaccountof
theapplication ofthenewaid.

PROPOSAL FOR ACOUNCIL REGULATION CONCERNING THE CREATION OF ANEW
EUROPEAN SOCIAL FUND AID IN FAVOUR OF YOUNG PERSONS
The Council ofthe European Communities ,
Having regard totheTreaty establishing the European Economic Community ,
i ,
Having regard toCouncil Regulation (EEC)N°2396/71of8November 1971
inplementing theCouncil Decision of 1February 1971 onthe reform ofthe
European Social Fund (1),amended byRegulation (EEC)N°2893/77of
22December 1977 (2)andinparticular Article 3(3)ofthat Regulation ;
Having regard totheproposal from the Commission ;
Having regard totheopinion ofthe European Parliament (3);
Having regard totheopinion ofthe Economic andSocial Committee (4);
Whereas oneofthe main features ofthe employment situation inthe Communi *
tyinrecent years has been the inadequate growth inthe number ofjobs
available toyoung workers under twenty-five years ofage;
Whereas ,tostrengthen Community aid totheemployment ofthis category
ofpersons ,aform ofaiddesigned toassist employment ,notfalling within
theclassic types ofaidtovocational training andlabour mobility ,should
becreated within theframework ofEuropean Social Fund;
Whereas ,inorder torespond effectively toexisting labour market needs ,
aFund aiddesigned topromote employment should permit both thecovering
.ofapart oftheexpenditure incurred ingranting recruitment premiums and
thefinancing ofjobcreation programmes ; „
(1)OJN°L249,10.11.1971 ,p.54
(2)OJNoL337,27.12.1977 ,p. 1
(3)OJNo
(4)OJNo../.

Whereas anaidofthis type isnot envisaged inArticle 3(1)ofRegulation
(EEC)No2396/71amended byRegulation (EEC)No2893/77and whereas itis
necessary tocreate theeid aslaid down bytheprovisions ofarticle 3(3)
ofthe above Regulation :
has adopted this Regulation :
,é
Article 1
Assistance may begranted from the Fund pursuant toArticles 4and 5of
Decision 71/66/EEC amended byDecision 77/801/EECforthefollowing
categories ofaid:
(
aids topromote the employment ofyoung job-seekers under 25years ofage,
intended tocover :
-expenditure incurred ingranting recruitment premiums ;-aid from the
Fund shall becalculated onhtebasis ofawage allowance not exceeding
the sumof30European units ofaccount per person per week for a
maximum ofsix months ;
-expenditure incurred infinancing programmes torecruit young persons for
newly created jobs relating toactivities orservices inthepublic inte­
rest;assistance from the Fund shall becalculated onthebasis ofawage
allowance not exceeding the sumof60European units ofaccount per
person per week for amaximum oftwelve months .
These aid measures maynot becombined with those provided forunder
article 3(1)(e)ofRegulation (EEC)No2396/71amended byRegulation
(EEC)No2893/77.
Arti cle2 "'* '''
This Regulation shall enter into force on....
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels ,
For the Counci l.

Orig.FR
ProposalforaCouncilDecisionamending
Decision75/459/EECof21July1975on
actionbytheEuropeanSocialFundfor
personsaffectedbyemploymentdifficulties,
amendedbyDecision77/802/EECof
20December1977
I

EXPLANATORY MEMORANDUM
Initsproposalforaregulationconcerningtheimplementation ofanewaid
measurebytheEuropeanSocialFundtopromotetheemploymentofyoungpersons
(1)under25yearsofage,theCommission'sintentionistorestrictthisaidto
specificoperationsunderArticle4andArticle5ofCouncilDecision
71/66/EECof1February1971(2),amendedbyDecision77/801/EECof20De­
cember1977(3).
ThespecificoperationsunderArticle4areoperationsfallingwithinthe
sphereofaidto"youngpersons"asdefinedinCouncilDecision75/459/EECof
22July1975(4),amendedbyDecision77/802/EECof20December1977(5).
Theaidmeasureseligibleforassistance fromtheFundpursuanttothis
DecisionarethosereferredtoinArticle3(1)ofRegulation (EEC)N°2396/71
of8November1971(6),amendedbyRegulation (EEC)N°2893/77of20December
1977(7).
v- }
i
,#
ItisproposedthattheCouncil,bythisDecision,shouldsupplement
Article3ofDecision75/459/EECinsuchmannerthattheoperationsreferred
tointheDecisionon''youngpersons"mayalsobeeligibleforthenew
aidmeasuretopromotetheemploymentofyoungpersons,inadditiontoaid
measuresforvocationaltrainingandoccupational mobility.
(1)Doc.COM(78).....
(2)0JN°L29,4.2.1971,p.15
(3)OJN°L337,27.12.1977,p.8
(4)OJN°L199,30.7.1975,p.36
(5)OJN°L377,27.12.1977,p.10
(6)0JN°L249,10.11.1971,P.54
(7)OJN°L337,27.12.1977,p..1./.
'Ij0f;i<A'IJ.!.i;>•

PROPOSAL FOR ACOUNCIL DECISION AMENDING DECISION 75/459 /EEC OF21JULY 1975
ONACTION BYTHE EUROPEAN SOCIAL FUND FOR PERSONS AFFECTED BYEMPLOYMENT
DIFFICULTIES -AMENDED BYDECISION 77/802 /EEC OF20DECEMBER 1977
The Council ofthe European Communities ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Decision 71/66/EECof 1February 1971 onthe reform
oftheEuropean Social Fund (1),asamended byDecision 77/802/EEC (2),
and inparticular Article 4thereof .
Having regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament (3),
Having regard totheopinion oftheEconomic andSocial Committee (4),
Whereas tWeCouncil hasadopted ,ingiving effect toArticle 4ofDecision
71/66/EEC,Decision 75/459/EECof22July 1975 onaction bytheEuropean
Social Fund forpersons affected byemployment difficulties (5)amended by
Decision 77/802/EEC of20December 1977 (6);
Whereas on theCouncil adopted Regulation No; creating
anewcategory ofEuropean Social Fund aid foryoung persons (7)and
whereas ,inorder tomake this category of "aidapplicable tooperations
carried outunder Decision 75/459/EEC,itisnecessary toamend this
Decision ;
"*
./.
(1)0JNoL28,04.02.71 ;p.15
(2)0JNoL337,27.12.1977 ,p.10
(3)0JNo
(4)0JNo
(5)0JNoL199,30.07.1975 ,p.36
(6)0JNoL337,27.12.1977 ,p.10
(7)0JNo

has decided asfollows :
Article 1
Thefollowing shall beadded toArticle 3ofCouncil Decision 75/479/EEC
of22July 1975 onaction bythe European Social Fund forpersons affected
byemployment diff iculties ,asamended byDecision 77/802/EECof
20December 1977 :
"and inRegulation (EEC)No
Article 2
This Decision shall enter into force on...
Done atBrussels ,
/
For the Counci l.

FINANCIAL DETAILS
PROPOSALFORACOUNCILREGULATION AMENDINGREGULATION (EEC)No2396/71
ASAMENDEDBYREGULATION (EEC)No2893/77-NEWAIDFROMTHEEUROPEAN
SOCIALFUNDFORYOUNGPERSONS
1.Budgetentriesconcerned
(a)Article501:Actioninfavourofyoungpeople
ι
(b)Chapter51:Expenditure underArticle5oftheCouncilDecision
of1February1971.■ ,
2.Legalbasis
RegulationtobeadoptedbytheCouncilunderArticle3(3)ofRegulation
(EEC)N°2396/71of8November1971implementing theCouncilDecisionof
1February1971onbehalfoftheEuropeanSocialFund,asamendedbyRe-"
gulation(EEC)N°2893/77of20December1977.
3.Aimsofthemeasure
Toencouragetheemploymentofyoungpeopleagedunder25withinthe
frameworkofmeasuresundertheEuropeanSocialFund(Article123of
theTreaty).
Specificaim:
CreationofanewformofaidsothattheFundcanbeartheexpenditure
necessaryforgrantingrecruitment premiumsandsubsidizing youth
employmentprogrammesinthecommoninterest.
Financialeffectsofthemeasuresonexpenditure
Themeasureconcernedisapermanentmeasurebeginningin1979.
Theimplementation ofthenewkindofaiddoesnotentailtheintrodjc-
tionofacorresponding separatebudgetentry.Infact,thenecessary
appropriations forimplementing thenewaidwillcomeunderseveral
budgetentriesrelatingtovariousmeasuresbytheFund,asisthe
casefortheotherformsofaidfromtheFund.

-2-
Thetotalappropriations tobesetasideforthenewaidcanbeestimated
asfollows,with thedateswhenthepaymentswillfalldue:
Article501
Chapter51Commitments 1979
(inmillionsof
EUA)Payments(inmillionsofEUA)
19791980 1981
55
5520
2020
2015
15
Multi-annual estimates
Commitments Payments(in millionsofEUA)
(millionsofEUA).1979 I1980 1981I82andsubsequent
Iyears
I1979 1104040: i
30 I
1980 165 60 60 45
|1981225
I80|145
TOTAL79-8150040100 |
I170 190
Methodofcalculation
-(Maximum)amountsofaid:
UnderthetermsofArticle1oftheproposalforaRegulation,aidfrom
theFundiscalculatedonthebasisofawageallowancenotexceeding:
.inthecaseofrecruitment premiums:30EUAperpersonperweek,for
amaximumof26weeks;
.inthecaseoftheemploymentprogrammes :60EUAperpersonperweek,
foramaximumof52weeks.
InaccordancewiththerategenerallyapplyingtoaidfromtheFund(1),
theCommunitycontribution willberestrictedtoamaximumof50%of
theeligibleexpenditure thusdefined,i.e.:
.inthecaseoftherecruitment premiums:15EUAperweekperperson,
foramaximumof26weeks;
.inthecaseoftheemploymentprogrammes :30EUAperweekper'person,
foramaximumof52weeks.
./.
(1)ofArticle8(1)and(2)oftheCouncilDecision71/66/EEC,as j
amendedbyDecision77/801/EEC-0JNoL28,4.2.1971,p.15and
0JNoL337,27.12.1977,p.8.

-3-
The amount of aid isincreased by10%where themeasures are implemen­
ted inGreenland ,the French Overseas Department ,Ireland ,.Northern Ire­
land andtheMezzogiorno (1).
-Thenumber ofpersons receiving aid :
Onthebasis oftheanticipated guidelines forthemanagement ofthe Fund ,
onewould expect aidtobegranted only inrespect ofregions marked byahigh rate ofunemploy - .♦
ment (regions where youth unemployment ishigher than theCommunity
average ,plus regions where the rate ofyouth unemployment isapprecia - .
blyhigher than thenational average ).Thus ,roughly half oftheyoung
unemployed persons intheCommunity ,i.e. 1million people ,aretobe
regarded as"eligible "forthis aid .
Itisestimated that about*10% ofthese young people ,i.e. 100.000 (2),
will ininfact benefit from thenewaid .This figure issimilar tothe
number ofyoung people (about 110.000 )whoreceived aidfrom theFund for
vocational training in1977 under theArticle 4decision onyoung people .
Itcorresponds toabout half ofthenumber ofpersons who,during 1977 ,
benefited intheMember States from thevarious measures which might well
qualify forfinancing under thenewaidarrangements (about 220000
persons ).
1
If,asislikely ,each ofthe twokinds ofassistance covered bythenew
aid isgranted toabout thesame number ofyoung people ,then expenditure
inthe first year may becalcultated asfollows :
.under theheading ofthe recruitment premium :
15EUA x26weeks x50000persons 39million EUA
.under theheading oftheemployment programmes :
30EUA x52weeks x50000persons 78million EUA
TOTAL 117million EUA
These amounts aredivided inequal proportions between thetwobudget
entries concerned .
(1)CfArticle 8(3)ofCouncil Decision 71/66/EEC,asamended byDecision
77/801/EEC-0JNoL28,4.2.1971 ,p.15and 0JNoL337,27.12.1977 ,
p.8andRegulation (EEC )No2895 /77-0JNoL337,27.12.1977 ,
(2)That is,100 000young people atanygiven moment inthecourse ofthe
year .Assuming that theyoung people aredivided equally between the
twotypes ofassistance andgiven that those eligible forthe recruit­
ment premium are only covered for26weeks ,thenumber ofindividuals
receiving aidwill be150000peryear .
' ' '; ' •} v'•' • 1
'■ I :'•*r"T j : • " ~
! . : »

This total should beadjusted slightly .
.Onthe one hand,the amounts ofaidreferred toabove are maximum
amounts .Since afewapplications may befor aid less than these
maximum amounts ,thetotal assistance should bereduced bybetween
5and 7%.
.Secondly ,inthe case ofabout afifth oftheapplications the maximum
amounts will have tobeincreased by10%totake account ofthehigher
rate ofassistance applicable tomeasures implements incertain regions
(see Council Regulation (EEC)No2893/77of20December 1977).
After these adjustments ,thetotal budget estimate forthefirst year of
assistance under the new aid arrangements amounts to110million EUA.
5^Necessary additional staff
2Grade Aofficials
3Grade Bofficials
3Grade Cofficials .
Inview oftheexisiting staff shortage intheSocial Fund team ,which
has been pointed out onseveral occasions even bythe European Parliament ,
there isnolikelihood whatsoever that the additional administrative work
involved inthe implementation ofthe newaid arrangements can beproperly
carried outwith thepresent staff numbers .This shortage isparticularly
noticeable inthe Band Cgrades .