NoC40/26 OfficialJournaloftheEuropeanCommunities 17.2.92
OpinionontheNewLander—CommunitySupportFrameworkfortheareasofEastern
Berlin,Mecklenburg -Vorpommern ,Brandenburg,Sachsen-Anhalt ,Thüringen
andSachsen1991-1993
(92/C40/14)
On23April1991theEconomicandSocialCommittee,actingunderthethirdparagraphof
Article20ofitsRulesofProcedure,decidedtodrawupanOpinionontheNewLander—
CommunitySupportFrameworkfortheareasofEasternBerlin,Mecklenburg-Vorpommern ,
Brandenburg ,Sachsen-Anhalt ,ThüringenandSachsen(1991-1993).
TheSectionforRegionalDevelopmentandTownandCountryPlanning,whichwasrespon­
sibleforpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon19November
1991.TheRapporteurwasMrSchmitz.
Atits291stplenarysession(meetingof27November1991),theEconomicandSocial
CommitteeadoptedthefollowingOpinionunanimously .
1.Introduction hasbeenboostedbysubstantialsocialtransferpay­
ments.
1.1.On3October1990Germanywasreunitedand
theterritoryoftheformerGDRbecamepartofthe
Community .CouncilRegulation (EEC)No3575/90of
4December1990enabledtheStructuralFundstobe
usedinthenewFederalLanderandEasternBerlinfrom
thedateofunification .1.2.3.Despitethestabilizationofproductionata
lowlevel,theimmediateprospectsforthoseenterprises
(includingagriculture)exposedtooutsidecompetition
arenotgood,asitwillnotbepossibleintheshortterm
tomatchwesterncompetitorsintermsofcostsand
productivity .Trendsinothersectorsareifanything
positive(especiallyservicesandproduction—including
farming—forthelocalmarket).
1.2.ThecreationofGermaneconomicandmonetary
unionon1July1990wasaneventofmajoreconomic
importanceas,overnight,theenterprisesoftheformer
GDRhadtofaceuptointernationalcompetition .On
politicalgroundsmonetaryunionprovidedforacon­
versionofOstmarksintodeutscheMarks(DM)which
puttheseenterprisesinaveryprecariouscompetitive
position.1.2.4.Theswitchfromabureaucratic command
economytoamarketeconomyposesfurtherproblems
fortheeastGermaneconomy,inparticular :
—alackofpersonalentrepreneurial initiative,
—unresolvedquestionsofpropertyownership,
—theimmensedifficultiesinvolvedinprivatization ,
—theneedtocompletelyrebuildpublicadminis­
tration,1.2.1.Productioncollapsedinthoseenterprisessud­
denlyexposedtooutsidecompetition .Inaddition,the
switchtouseofforeignexchangeintradewitheastern
Europeancountriesmeantthatthismarkettoolargely
evaporated .Asaresultindustrialproductioninthe
secondquarterof1991waslessthan40%ofthelevel
inthesamequarterof1989.Overthesameperiod
thenumberofpeopleinemploymentfellbyalmost
3million(fromapproximately 10millionatthebegin­
ningof1989).—arundownandinappropriateeconomicinfrastruc­
ture.
1.2.2.Theshareofindustrialproductioningross
valueaddedwasveryhigh(approximately 50%)in
theformerGDR.ComparedwithwesternEuropean
countriestheservicesandcraftssectorswereunder­
developed.Therehasbeenanotableupswinginthese
sectorssinceeconomicandmonetaryunion,especially
asthepurchasingpoweroftheeastGermanpopulation1.3.Selectivemeasurestostrengthenthecompeti­
tivenessofindustryandagricultureareneededtoover­
cometheeconomicproblems.Supportisrequiredfor
radicalrestructuring .Regionalpolicy,especiallythatof
theCommunity,canmakeaspecificcontributionto
this.Inparticularitmusthelppreventtheeconomic
'desertification 'ofindustrialandagriculturalareas.

17.2.92 OfficialJournaloftheEuropeanCommunities NoC40/27
2.OutlineofthedevelopmentplanandtheCom­
munitySupportFramework1.4.Bearinginmindthespeedofpoliticalchange,
theCommitteewelcomestheimmediateresponseofthe
Community .Thelackofreliablestatisticsinparticular,
however,meantthatitwasnotpossibletoclassifythe
newterritory'inthecategoriesofregionsandareas
coveredbytheregionalandruralobjectives'.Accord­
ingly,Regulation (EEC)No3575/90providedfor
adjustmentstotheStructuralFundrulesforatran­
sitionalperiod.ContrarytoECassistanceintheFederal
Republic,undertheseprovisionsnoobjective2and
objective5bareasaredesignated.HencetheStructural
Fundassistancewillcoverthewholeterritoryofthe
newLanderandEasternBerlin.Inpracticethismeans
assistanceasinanobjective1area.Theobjectivesfor
1991-1993are:2.1.Followingthesubmissionofadevelopmentplan
bytheGermanGovernment ,theCommissionDecision
of13March1991approvedtheCommunitySupport
Framework (CSF)forthefivenewFederalLanderand
EasternBerlin.AtECU1000millionperannum,the
StructuralFundassistanceisagoodtwoandahalf
timeshigherthanintheoldFederalLanderandten
timeshigherpercapita.50%oftheaverageannual
assistanceinthenewLanderisfromtheERDF,com­
paredwithonlyathirdintheoldFederalLander.The
shareoftheEuropeanSocialFund(ESF)ontheother
handis30%asagainst50%,andthatoftheEuropean
AgriculturalGuidanceandGuaranteeFund(EAGGF)
20%asagainst9%. —toinjectanadditionalECU3000millionfromthe
ECStructuralFundstoassistwithstructuraland
labourmarketpoliciesinthenewterritory,includ­
ingmeasureswhichareconsistentwiththegoalsof
Communityinitiatives,2.2.InadditiontotheStructuralFundaid,Germany
itselfistoraiseECU4380millionfromthepublicand
6555millionfromtheprivatesectorovertheperiod
1991-1993.TheEuropeanInvestmentBank(EIB),the
EuropeanCoalandSteelCommunity (ECSC)andother
loansareavailableforthenationalcontribution .The
totalcostoftheassistanceisthereforeintheregionof
ECU14000million.—tomakethisassistanceavailablerapidlyandflexi­
bly,inviewoftheurgentneedforaction.
1.5.Whilefullyappreciatingthereasonsbehindthe
flexibleprocedureadopted,thereisariskthatqualitat­
ivecriteriacouldbeneglectedinregionalpolicy.The
Committeethereforeproposesthatgreateraccountbe
takenofqualitativecriteriagraduallybetweennowand
theendof1993.2.3.Insteadoftheusualallocationoffundstothe
fivepriorityobjectivesofECstructuralpolicy,five
overalldevelopmentobjectiveshavebeenformulated
foreasternGermany:
—modernization ofindustriesandservices,
—modernization ofagriculture,
—developmentofhumanresources,
—integrationofenvironmental objectivesinthedevel­
opmentstrategy,
—provisionof'technicalassistanceforrestructuring'.1.6.ECStructuralFundsupportfortheeastGerman
Landerafter1993mustbeseeninconjunctionwiththe
forthcomingreformoftheStructuralFunds.Experience
gainedineastGermanyshouldbetakenintoconsider­
ationinthisreform.
1.7.InthetransitionalphasefundsoftheEuropean
RegionalDevelopment Fund(ERDF)willbeused
towardstheGerman'Jointtaskfortheimprovement
ofregionaleconomicstructures'(GRW)(*).Thispro­
cedurewasnecessarytoensurethattheERDFfunds
areputtorapiduse.InviewoftheforthcomingStruc­
turalFundreformin1994,theCommitteesuggeststhat
Germanregionalaidbereviewedconcurrentlysothat
itisconsistentwithECregionalaid.2.4.Onthebasisofthesedevelopmentobjectives,
theCSFlistseightdevelopmentpriorities:
—promotionofinfrastructurecloselyrelatedtoecon­
omicactivities,
—supportforproductiveinvestment,
—measurestodevelophumanresources,
(')The'JointTask'isanationalaidprogrammepartlyco­
financedbyERDFstructuralfunds. —combattinglong-termunemployment ,

NoC40/28 OfficialJournaloftheEuropeanCommunities 17.2.92
WhiletheregionalanalysescontainedintheCSFgive
someideaofthedifferingproblemsofindividual
regions,theystilldonotenableacomparativeevalu­
ationtobemadeofaidrequirements .TheCSFdoes
notlaydownwhichregionsshouldhavepriority.While
thismaybejustifiedintheinitialstages,thereisa
dangerthattheaidwillbespreadtoothinlyratherthan
concentratedwhereitisneededmost.Regionswith
relativelygoodpotentialfordevelopmentwillhavea
doubleadvantageover,inparticular,weakereastern
regions.Inthemediumtermthiswilljeopardizethe
effectivenessofthestructuralsupport.—facilitatingtheoccupationalintegrationofyoung
people,
—measuresforthedevelopmentofagriculture,for­
estryandfisheriesandrestructuringofthefood
industry,
—improvementofthelivingandworkingconditions
inruralareas,
—agricultural,forestryandtheruralenvironment .
3.2.2.Thehighestratesofaidshouldbeappliedto
regionswithahighindustrialandagriculturalcom­
ponenttoeasethemajorrestructuringproblemsinthese
regions.Theratesofaidtocertainservices-orientated
centres(e.g.Berlin,Dresden,Leipzig)shouldbereduced
gradually.InfixingtheseratestheeastGermanLander
shouldbeallowedconsiderableroomformanoeuvre .2.5.Fund-assistedoperationalprogrammesarealso
plannedaspartoftheCSF.Forthemomentsixpro­
grammes,oneperLand,havebeenapprovedforthe
ERDFandtheESF,withanadditionalinterregional
programmefortheESF.TheCommunityglobalgrant
fromtheERDFtowardsthenationalconsultancypro­
grammehasalsobeenapproved,ashavetheEAGGF
programmes .
2.6.TheCommissionshouldexaminewhytheout­
flowoffundsfromtheERDF,ESFandEAGGFvaries
considerablyfromoneLandtoanother.3.2.3.Asyetthereisnoevidencethatstructural
supporthasbeeneffectivelytailoredtoindividual
regions.ThepresentLanderoperationalprogrammes
weredrawnupinaccordancewithuniformcriteria;in
practiceitwasnotpossibletoensurethatthelocal/
regionalauthorities,institutions,associations,groups
orenterpriseshadasayintheirplanning.Onlya
piecemealstarthasbeenmadeonregionaldevelopment
plans.
3.GeneralcommentsonStructuralFundintervention
3.2.4.Underthesecircumstances ,carefullytargeted
supportisneededforananalysisofthestructural
problemsoftheindividualregionsandthepreparation
ofdevelopmentplans.3.1.Underthecircumstances theCommission's
approachisbasicallytobewelcomed.Itremainstobe
seen,however,howthisapproachadheresinpracticeto
theprinciplesofStructuralFundreform.Thefollowing
aspectsinparticularwillrequirescrutiny:
—concentration ofaidonthestructurallyweakest
areas,tailoringofsupporttoparticularregions,
—preparationandimplementation ofsupportbythe
partners,withtheparticipationoftheemployers
andtradeunionsaspartofthesocialdialogue,
—integrationoftheStructuralFundsinthe
regionalizedplansandprogrammes ,andpriorityof
programmeassistance .3.2.5.TheCommissionshouldputforwardasepar­
ateproposaltoprovideadditionalaidfortheregions
borderingonPolandandCzechoslovakia .Aidforbor­
derregionsinPolandandCzechoslovakia shouldbe
dealtwithunderthe'EuropeanAgreements'withthese
countries.Oneoftheprimarypurposesofthisaid
shouldbetofurthertheeconomicandpoliticalinte­
grationoftheeasternandsouth-easternEuropean
countriesintotheCommunity (1).
3.2.6.Particularimportanceattachestothe'Con­
sultancyprogrammeoftheFederalMinistryforEcon­
omicAffairsforselectedregionsintheterritoryofthe
formerGermanDemocraticRepublicforthedevelop­
3.2.Concentration ofaidonthestructurallyweakest
areas,tailoringsupporttoparticularregions
3.2.1.Becauseofthepaucityofregionalstatistical
data,thestructuralaidwasbasicallydistributedamong
thenewLanderinproportiontotheirpopulation.(*)ESCOpinion-doc.ESC1119/91,26.9.1991.

17.2.92 OfficialJournaloftheEuropeanCommunities NoC40/29
economy),employmentagencies,thecentraland
localadministration oftheFederalLabourOffice,
ortheregionalofficesandadvisoryboardsofthe
Treuhand(theGermanprivatizationagency).mentofindustry-related infrastructureatdistrictand
regionallevel'.Thisprogrammeisbeingco-financed
bytheCommissionwithaglobalgrantofuptoECU
10million.Thedevelopmentgoalsoftheconsultancy
programme are:
3.2.9.Thereisaneedtoimprovetheintegrationof
theaidfromthedifferentFundsanditsintegration
withnationalandLanddevelopmentmeasures;tothis
endtheLandgovernmentsshouldbehelpedtosetup,
incooperationwiththemonitoringcommittees,supra­
regionaldevelopmentplanning.Localauthorityrep­
resentativesshouldparticipateinthisplanningsoasto
ensurethatthenecessarylocalauthorityindependence
doesnotclashwithregionaldevelopmentpolicies.—drawing-upofregionaldevelopmentplans,
—consultancy ,i.e.provisionofadvicefortheregions
whenimplementingtheseplans,
—developmentofregionaleconomicmanagementand
promotion,
—marketingofthelocationaladvantagesofthe
region.
3.2.7.Theexpresspurposeoftheconsultancyisto
actasaback-uptotheregionalpoliciesfinancedjointly
bytheEC,FederalGovernmentandtheLander.Itis
intendedtomakeamajorcontributiontowardsensur­
ingthataidiscoordinatedandusedefficientlyand
hencetoimprovingregionaleconomicstructures.3.2.10.Inordertofacilitatesupportforstructural
aid,especiallyatregionallevel,andtheparticipation
oftherelevantregionalparties,theLandershouldbe
furtherencouragedtousetheavailabletechnicalaid
forthedevelopmentofanappropriate,regionalized
consultativeinfrastructureforstructuralpolicy.
3.2.8.TheCommitteestressestheresponsibility
whichtheLandmonitoringcommitteeswillbearfor
supportingandmonitoringtheimplementation ofthe
consultancyprogramme .Inparticulartheyshould
ensurethat:3.3.Preparationandimplementation ofassistanceby
thepartnerswiththeparticipationofthetrade
unionsaspartofthesocialdialogue
3.3.1.Sofar,partnershipinconnectionwithEC
structuralpolicyhasbeenconfinedtocooperation
betweentheCommission ,theFederalGovernmentand
theLander.Thedevelopmentplan,theCSFandthe
operationalprogrammesweredrawnupwithoutthe
participationofthesocialpartners.Thisrunscounter
totheobjectivesofStructuralFundreformandthe
CSF(*)whichcallforatleasttheinvolvementand
consultationofthesocialpartners.Astructuralpolicy
projectsuchasthetransformation oftheentireecon­
omicandsocialsystemoftheformerGDRishardly
conceivablewithouttheparticipationoftheeconomic
interestgroups.ThepresentCommissionpracticeof
consultingonstructuralpolicyalmostasanafter­
thoughtistotallyinadequateandborderson'going
throughthemotions—consultationtakesplaceinclosecollaborationwith
therelevantsectorsofsocietyintheregions,
—itcontributestoamoreefficientandcoordinated
useofaid,
—measuresarecoordinated withactiononthe
environment ,
—knowledgeoftheproblemsofeachregionis
increased,
—thedevelopmentplansarecompatiblewithand
coordinatedwiththemajordevelopmentobjectives
oftheLand,
—theresultsareusedbytheCommissionforthe
continuousassessmentofStructuralFundinter­
vention,3.3.2.TheCommission'swillingness (asstatedinthe
CSF)toincludethesocialpartnersintheregional
monitoringcommitteesatleastistobewelcomed.Itis
—linkscanbeestablishedwiththeactivitiesatvarious
levelsandwiththeagenciesresponsibleforregional/
localstructuraldevelopment .Inthis,equalaccount
mustbetakenofdistrictandregionalagencies,such
asthe'Gemeinschaftswerk AufschwungOst'(body
responsiblefortherehabilitationoftheeastGerman(J)Commissiondocumentof13March1991onCommunity
SupportFrameworkforthefivenewLander,page39,point
1.2.1.B.

NoC40/30 OfficialJournaloftheEuropeanCommunities 17.2.92
concentratedonco-financingofthe'Jointtaskforthe
improvementofregionaleconomicstructures'andthe
measuresoftheFederalLabourOffice.Astheseare
highlyspecificaidsystems,suchanapproachisjustified
onlyintheshortterm.Thedevelopmentofintegrated,
programme-driven aidstrategiesclearlygearedtothe
individualregionisstillinitsinfancy.Itisdependent
onpreconditionsstilltobecreatedatFederalandLand
level.InthisrespecttheCommitteeseesanurgentneed
forthefurthertheoreticalandpracticaldevelopmentof
thestructuralaidprovidedintheshortterm.
3.4.3.Uncoordinated aidshouldbeavoidedasfar
aspossible.Inthecaseofmajorprojects,aninterface
betweeninvestmentpromotionandthequalifications
oftheworkforceshouldbecreated.Globalgrants
shouldalsobeawarded.Inthisconnectionspecial
attentionshouldbegiventothesetting-upofnew
enterprisesandtoindustrialandagriculturalrestructur­
ingmeasures.TheexperiencesoftheSaxonyMinistry
forEconomicAffairsandLabourinthisfieldhavebeen
promising .nowuptotheFederalGovernmentandtheLanderto
embracesuchconsultationandadialogueonstructural
policy.TheCommitteeregretsthat,intheERDFoper­
ationalprogrammessubmittedbythecompetentLand
ministriesforinstance,themonitoringcommitteesare
composedofofficialsonly.Thishasbeendonewithout
anyexplanationwhatsoeverorconsultationofthe
socialpartners.
3.3.3.TheCommitteeurgesthatthesocialpartners
beconsultedonprojectsofspecialimportancefor
regionalpolicy.Thepresentone-sidedconsultationof
industrialandtradeassociations isnotsufficient.
3.3.4.Thecollaboration ofthesocialpartnersin
theeconomicdevelopmentoftheeastGermanLander
shouldbeorganizedinsuchawayastofurtherthe
integrationofthevariousaidmeasures.Theprep­
arationofregionaldevelopmentplansisparticularly
importantinthis.Henceitwouldonlybepossibleto
dowithouttheparticipationofthesocialpartnersinthe
regionalmonitoringcommitteesiftheircollaboration
wereensuredinanotherconsultativebodywith
responsibilityforregionaldevelopmentpolicyandplan­
ning.
3.4.IntegrationoftheStructuralFundsintheframe­
workofregionalizedplansandprogrammesand
priorityofprogrammedaid
3.4.1.TheCSFprovidesfortheintegrationofthe
StructuralFundsprimarilythroughtheoverallobjec­
tives,thedevelopmentprioritiesandincorporation in
nationalstructuralandlabourmarketpolicies.Practical
considerations ruledoutintegrateddevelopmentpro­
grammestailoredtotheindividualregions.
3.4.2.DirectinterlockingoftheStructuralFunds
ispremature.InsteadStructuralFundintervention is4.Concludingremarks
4.1.Infutureitmustbeensuredthattheprinciples
andpracticalrulesofECstructuralpolicyareadhered
toandretaintheirinnovativeimpactevenunderthe
difficultcircumstances ofGermanunification .Structur­
alpolicyinitiativesinthenewLandermustbearin
mindfromtheoutsetthatGermanunificationmeans
primarilytheintegrationofthenewLanderinthe
EuropeanCommunity .Theeconomicandsocialstruc­
turemustberebuiltaspartoftheEuropeaninternal
marketifitistobesound.Againstthisbackgroundit
isaxiomaticthattheguidingideasandinstrumentsof
ECstructuralpolicybeappliedinthenewLanderand
inEasternBerlin.
DoneatBrussels,27November1991.
TheChairman
oftheEconomicandSocialCommittee
FrancoisSTAEDELIN