ARCHIVESHISTORIQUES
DELACOMMISSION
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DOCUMENTS "COM"
COM(77)684
Vol.1977/9016

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(77)684final.
Brussels,19December1977
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTEECOUNCIL
Applicationforagloballoanno.224pursuanttoArticle56§2(a)
oftheECSCTreatyon"behalfofindustrialinvestmentsintheSaar
(FederalRepublicofGermany)
COM(77)684final.

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
Directorata-Genaral for
RegionalPolicyINTERNAL DOCUMENT
COMMUNICATION TOTHECOUNCIL
Subject:Application foragloballoanno.224pursuanttoArticle56
§2(a)oftheECSCTreatyonbehalfofindustrial investments
intheSaar(FederalRepublicofGermany)
I.ESSENTIAL INFORMATION
Applicant
FinalBeneficiaries
Project
Location
Globalamountof
investments
Globalloanrequested
Interestrebate
Jobcreation:Saarl'andische Investitionskreditbank AG
:Variousundertakings
:Thecreationandexpansionofsmallandmedium
sizedindustrialactivities
:Saarland
:AtleastDM25million(+9.4millionEUA)
:DM10million(+3.7millionEUA)
:111,000EUAperyearforthefirstfiveyears
(3%pointsperyearontheloanof3.7millionEUA)
:Atleast185jobstobeofferedinpriorityto
formerECSCworkersintheSaar.
II.CONFORMITY WITHARTICLE56§2(a)OFTHEECSCTREATY
TheSaaristheGermanlandwhichisundergoing themostsignificant
structural changes.Between1960and1975employmentinthecoalmining
sectorwasreducedfrom32%to14,1%ofactivepopulation employedin
industry,i.e.areductionfrom55.803jobsin1960to22.308in1975.
Inthesteelindustryemployment wasreducedfrom42.076jobsin1960
•to37.735jobsin1975.Employmentinotherindustrysectorsincreased
from44%to62%ofactivepopulation.Theproportionof38%stillemployed
inthesteelandcoalindustryremainshighcomparedtotheGerman
averageofonly7.5%.
Provisionaladdress:RuedelaLoi200,B-1049Bruuels–Téléphona7350040/7358040–Télégraphie address:"COMEURBrussels"–
Telex:"21877COMEUB"

Aconsequence ofthesignificant structural changeshasbeenan
unsatisfactory highrateofunemployment of6%since1974forthe
Saarasawhole,andcertainregions,forexampleNeunkirchen,is
prensently showingunemployment figuresof12%duetoanincreased
numberofredundancies inthesteelindustryofthatregion.
Whilereconversion ofthecoalminingindustryhastakenplace
asindicatedbytheemploymentstatistics,thepercentageofthe
population employedinthesteelindustryremainsataveryhigh
level,andtheSaarisconsequently highlyvulnerabletoanyactivity
reductioninthesteelindustry,asispresentlytakingplace:680workers
weredismissedbyNeunkircher Eisenwerk AGrecentlyand1600workers
areexpectedtobedismissedbyRockling-Burbach .Consequently,thesetting
upofagloballoanfacilityunderArticle56isjustifiedinviewof
adesirablediversification oftheSaarlandeconomy.
.THEPROJECT
TheCommissionwillputDM10million<+3.7millionEUA)atthe
disposaloftheSaarlandische Investitionskreditbank AGforthreeyears.
PaymentswillbemadetotheSaarlandische Investitionskreditbank AGin
successive tranchesinaccordance withissuesbytheSaarlandische
Investitionskreditbank AGofindividual sub-loanstoeligibleunderta­
kings.Theintermediary agencywillsubmiteachsub-loantothe
Commissionforapproval.
Inreachingadecisioninrelationtoindividualsub-loans,theCom­
missionwilltakeintoconsideration therelationship betweenthesize
oftheloanproposedandthenumberofjobscreatedforex-ECSCworkers,
theamounttobeinvestedinfixedaassets,andtheproposedtermto
maturit'yoftheloan.Therateofinterestprevailingoftheglobal
loantranchepaidtotheSaarlandische Investitionskreditbank AGwill
beappliedtoeachsub-loan;aninterestrebatewillbegranted.
TheCommission'scontribution willnormallynotexceed40%oftheinvest­
mentinfixedassetsinaccordance withthepublishedpolicyguidelines
(0JNoC172/2of27.7.77)buttheCommission reservestherightin
thiscasetoincreasethislimitto50%insuitablyjustifiedcases.
Thiswilltakeintoaccountthespecialnatureofcreditfacilities
destinedforsmallandmediumsizeundertakings whichusuallyhavefewer
possibilities thanotherconcernsofaccesstocapitalmarketsandin
whichinvestmentcalculatedinamountsperjobcreatedisusuallyless
thaninthecaseofotherlargerconcerns.

TheSaarlandische Investitionskreditbank AGwillsendasixmonthly
statementtotheCommissionontheusemadeofthegloballoanfacility
towhichwillbeappendedareportbytheSaarlandlabourofficeautho­
ritiesonthereemployment offormerECSCworkersinindustrialactivi­
tiesfinancedthroughthegloballoanfacility.
INFLUENCE ONRE-EMPLOYMENT
Itisestimatedthattheindividualprojectsthatmaybeexpectedto
bebroughtforwardforassistancewillleadtothecreationofatleast
185newjobsforex-ECSCworkersbetween'1977and1980.Thisisrather
modesteffectcomparedwiththeexpectedrequirements between1977and
1980of25/000newjobstobecreatedand25,000jobstobemaintained,
particularly inthesteelindustry.Butitisnever-the-lessimportant
toencourageinvestmentsoutsidetheECSC-sectors intheSaar.
CONCLUSIONS
(a)TheCommissionconsidersthattherequestcomplieswithArticle
56§2(a)oftheECSCTreaty,inconsequence,theCommission
hasapprovedagloballoanfacilitytoSaarlandische Investitions-
kreditbank AGforamaximumamountof10million DM(+3.7million
.EUA)oritsequivalentvalue.Theinterestwillbereducedby3
percentagepointsforthefirstfiveyearsafterthepaymentofeach
sub-loan.
(b)TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.