No C 116/52 Official  Journal  of the European  Communities 30.9.  74 
Opinion  on the 'Provisional  measures  to be put  into  effect  pending  creation  of the 
European  Regional  Development  Fund' 
The Opinion  of the Committee  is not based  on any text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
The Decision  taken  by the Bureau  of the Committee  on 17 May  1974,  under  Article  20 
paragraph  3 of the  Rules  of Procedure,  to prepare  an additional  Opinion  on the 
abovementioned  subject. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
121st  plenary  session,  held  in Brussels  on 26 and 27 June  1974. 
The full text of the Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE: 
Having  regard  to the various  Opinions  delivered  by 
the Economic  and Social  Committee  on the subject  of 
regional  policy,  in particular  its Opinion  on the 
— 'Draft  Decision  by the Council  on the creation  of 
a Committee  for Regional  Policy', 
— 'Proposed  Financial  Regulation  on  special 
provisions  to be  applied  to the  European 
Regional  Development  Fund', 
— 'Proposal  for a Council  Regulation  establishing  a 
European  Regional  Development  Fund';  (*) 
Having  regard  to the third  paragraph  of Article  20 of 
the Rules  of Procedure; 
Having  regard  to the Decision  taken  by its Bureau  on 
17 May  1974,  entrusting  the  Section  for Regional 
Development  with  the preparation  of an additional 
Opinion  on 'Provisional  measures  to be put  into 
effect  pending  creation  of the  European  Regional 
Development  Fund'; 
Having  regard  to the  progress  made  by  the 
Community  so far in its work  on regional  policy; 
Having  regard  to the oral  additional  report  presented 
by the rapporteur,  Mr Ventejol; 
\ 
Having  regard  to the  Opinion  delivered  by the 
Section  for Regional  Development  at its meeting  held 
in Crotone  on 17 June  1974; 
(!) OJ  No C 8, 31. 1. 1974. Having  regard  to the discussions  at its 121st  plenary 
session  on 26 and  27 June  1974,  session  on 26 June 
1974, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously: 
1.1. The  Summit  Conference  of the Heads  of State 
or of Government,  meeting  in Paris  on 19 to 21 
October  1972,  recognized  that  high  priority  had to be 
assigned  to Community  regional  policy.  But nothing 
concrete  has ensued. 
1.2. At  its Session  in May  1974  the  European 
Parliament  strongly  criticised  the  slowness  of 
progress  towards  European  union.  In a resolution  it 
used the following  terms: 
'It is deplorable  that  the 1972  and  1973  Summits 
were  not successful  in sparking  off real  progress 
in the European  venture  ... One  cannot  but note 
the gradual  breakdown  of the  Community's 
decision-making  machinery,  characterized  by the 
failing  power  of the  Commission  to take  the 
initiative  and  the  increasing  paralysis  of the 
Council  of Ministers'. 
The Economic  and  Social  Committee  shares  this 
view. 
1.3. The  creation  of the  Regional  Development 
Fund  — promised  for 1 January  1974  — has  been 
continually  postponed,  which  demonstrates  the 
30. 9. 74 Official  Journal  of the European  Communities No C 116/53 
existence  of an increasingly  wide  and  dangerous  gulf 
between  formal  declarations  of intent  and  actual 
Decisions. 
1.4. Negotiations  did,  it is true,  take  place  at 
Council  level  on the  total  appropriation,  the degree 
of concentration  of aids  and  the  criteria  to be 
adopted.  But  lack  of political  will  has  led  to 
successive  deferments  of the crucial  questions. 
2.1. This  is definitely  a matter  of political  will. 
The Community  institutions  should  not  use  the 
decision  by the  United  Kingdom  Government  to 
renegotiate  the terms  of its membership  of the  EEC 
as an excuse  for calling  a halt  to the  drafting  and 
implementation  of Community  policies. 
2.2. Failure  to change  this  attitude  would  be all 
the more  unacceptable  because  a promptly 
implemented  and  purposeful  regional  policy  could 
show  the public  in the United  Kingdom,  and  also  in 
Ireland  and  Italy  — that  is to say  in the countries 
chiefly  concerned  — that  the  European  Economic 
Community  is determined  to get  to grips  with  the 
underdevelopment  problems  of the  most  seriously 
affected  European  regions.  This  state  of affairs  is all 
the more  serious  because  in some  instances  it is 
preventing  extension  of  national  regional 
development  policies  and  beginning  to generate 
tension  in regions  of underemployment. 
2.3. But  the  disease  is in reality  deeper  rooted. 
National  egoism  and  short-term  analyses  are taking 
over  again  in European  negotiations. 
2.4. In  the  absence  of an  overall  view,  each 
Member  State,  and  hence  the  Community  as such, 
seems  to be primarily  concerned  with  defending  its 
immediate  interests.  Thus,  a conservatism  is being 
shown  in many  areas  which  is irreconcilable  with  the 
process  of mutual  adjustment  and  the  will  to 
advance,  without  which  there  can  be no economic, 
monetary  or social  unity,  let alone  political  unity. 
2.5. A  warning  was  given  to the  Community 
authorities  by the Economic  and  Social  Committee  in 
the Information  Report  it adopted  on 6 April  1970 
on the  applications  for  accession  of the  United 
Kingdom,  Ireland,  Denmark  and  Norway:  'As  in 
1958,  when  the Treaties  came  into  force,  it would  be 
a great  error  to consider  the  enlargement  of the 
Community  purely  in  terms  of  short-term 
calculations,  an approach  which  would  inevitably bring  out  certain  grounds  for  concern,  but  which 
would  not  provide  a basis  for full  assessment  of the 
overall  value  of such  a massive  integration  exercise. 
Assessment  of an exercise  of this  kind  — whether  it 
be the  establishment  of the  Community  or its 
enlargement  — is more  a matter  of political  intuition 
than  detailed  calculations'. 
2.6. This  statement  still  holds  true,  and  is 
applicable  to the whole  set of Community  policies. 
2.7. In  the field  of regional  policy,  this  attitude  is 
both  a serious  economic  error,  and  socially  unjust 
because  it maintains  intolerable  income  disparities  or 
even  aggravates  them. 
2.8. It  is nowadays  obvious  that  a regional  policy, 
which  in its first  stage  would  be an act of solidarity 
between  regions  of the  Community,  would  — by 
increasing  incomes,  trade  and  consumption,  and 
hence  production  —  make  a vital  contribution 
towards  the  growth  and  equilibrium  of the  entire 
Community  and  towards  full  utilization  of currently 
neglected  assets  in manpower  and  raw  materials. 
2.9. The  Community  must  no longer  be diverted 
from  making  every  necessary  effort  by a wrong 
assessment  of the relevant  factors.  The  economic  and 
monetary  difficulties  facing  most  Member  States  of 
the EEC  must  not  cause  the  problems  raised  by 
implementing  the  common  regional  policy  to be 
evaded.  On  the  contrary,  these  problems  must  be 
considered  to be one  of the  intrinsic  objects  of the 
reforms  which  the very  structures  of our  system  must 
undergo  if there  is a genuine  will  to overcome  the 
current  crisis. 
2.10.  It  is better  to boost  the  development  of 
backward  regions  by  deploying  sufficient  funds 
rather  than  to spend  equivalent  — or even  larger  — 
sums  on unemployment  benefits  or the  artificial 
attenuation  of income  disparities,  thereby  increasing 
the strain  on the  Social  Fund  which  is short  of 
resources  anyway. 
2.11.  In  other  words,  social  policy  has  quite 
another  aim  than  that  of  remedying  policy 
deficiencies  with  respect  to qualitative  growth  and 
full and  better  employment  based  on  a proper 
balance  between  the  various  regions  of  the 
Community. 
No C 116/54 Official  Journal  of the European  Communities 30. 9. 74 
2.12.  Whilst  it is quite  right  that  the Community 
should  fulfil  its obligations  of solidarity  with 
developing  countries,  it would  be inconceivable  for 
the Community  not to show  with  greatest  urgency  at 
least  the  same  determination  to  eradicate 
underdevelopment  in its own  regions. 
2.13.  For  all  these  reasons,  the  Economic  and 
Social  Committee  fully  and  firmly  adheres  to the 
proposals  it made  in the  following  studies  and 
Opinions: 
— Study  of the Economic  and  Social  Committee  on 
the implementation  of a common  regional  policy; 
— Opinion  of the  Economic  and  Social  Committee 
on the: 
— Draft  Decision  by the Council  on the creation 
of a Committee  for regional  policy, 
— Proposed  financial  Regulation  on  special 
provisions  to be applied  to the  European 
Regional  Development  Fund, 
— Proposal  for a Council  Regulation  establishing 
a Regional  Development  Fund  (*); 
— Opinion  of the  Economic  and  Social  Committee 
on the: 
— Proposal  for a Council  Regulation  on the list 
of priority  agricultural  regions  and  areas 
referred  to in the  Regulation  (EEC)  on the 
finance  from  the  Guidance  Section  of the 
European  Agricultural  Guidance  and 
Guarantee  Fund  for  projects  falling  within 
development  programmes  in  priority 
agricultural  regions, 
— Proposal  for a Council  Regulation  on the list 
of regions  and  areas  referred  to in Regulation 
(EEC)  establishing  a European  Regional 
Development  Fund  (2). 
3.1. The  Committee  therefore  urges  that  the 
Regional  Development  Fund  be  set  up  without 
further  delay. 
3.2. It  was  proposed  more  than  a year  ago  that  the 
effectiveness  of the  Fund  should  be increased  by 
supplementing  its own  resources  with  the capacity  of 
the Community  to float  European  loans. 
(*) OJ No C 8, 31. 1. 1974. 
(2) OJ No C .37, 1. 4. 1974. 3.3. The  merits  of such  a proposal  are immediately 
apparent: 
— Loans  for  the  purposes  of Community  regional 
development  swell  the  financial  resources 
available,  especially  when  interest  rebates  are 
given.  They  would  constitute  acts  of political  will 
and be concrete  expressions  of the  solidarity  of 
prosperous  regions  with  their  underdeveloped 
counterparts. 
3.4. At  all events,  swift  action  is called  for  and 
recourse  to loans  could  only  be a complementary 
measure  and  should  only  temporarily  fill the vacuum 
caused  by  the  non-creation  of  the  Regional 
Development  Fund.  Loans  for  Community  regional 
development  must  not be used  by the Member  States 
as an alibi  to escape  their  imperative  obligation  to 
contribute  sufficient  resources  to the budgets  and  > in 
particular  to the Regional  Development  Fund. 
4.1. Without  reducing  in any  way  its demand  for 
immediate  creation  of the  Regional  Development 
Fund,  the Committee  urges  that  to meet  the need  for 
effective  action  a decision  be taken  in 1974  to float  a 
European  loan  of at least  1 000 million  units  of 
account  for use in regional  development. 
4.2. The  proceeds  of the  loan,  together  with  the 
Community's  own  resources  set aside  by the Member 
States  in readiness  for the creation  of the  Regional 
Development  Fund,  should  be used,  in line  with  the 
criteria  of  seriousness  and  acuteness  already 
established  by the Economic  and  Social  Committee, 
to grant,  depending  on the circumstances: 
— loans  with  interest  rebates  at variable  rates,  or 
— subsidies,  when  the  acuteness  of  the 
underdevelopment  problems  in particular  regions 
or zones  would  not  allow  total  or partial  capital 
repayment  of loans. 
4.3. In  addition,  the  European  Investment  Bank 
should  be instructed  in accordance  with  Council  and 
Commission  Directives  provisionally  to administer  the 
sums  made  available  to it pending  creation  of the 
Regional  Development  Fund.  This  would  enable  the 
Bank  to step  up its activities  in this  field.  The  other 
Funds,  in particular  the  Guidance  Section  of the 
EAGGF  and  the  Social  Fund,  should  be able  to 
continue  and  step  up their  respective  activities,  taking 
more  account  of the  needs  of the  least  developed 
regions. 
30. 9. 74 Official  Journal  of the European  Communities No C 116/55 
4.4. Priority  must  be given  to measures  in the 
Community's  underdeveloped  regions  in Ireland, 
Italy  and  the  United  Kingdom,  with  aid  being 
concentrated  according  to the  acuteness  of the 
underdevelopment  problems,  in line  with  the criteria 
which  have  already  been  unanimously  proposed  by 
the Economic  and  Social  Committee. 
4.5. Complete  projects  should  be drawn  up by the 
Member  States  concerned  without  delay,  submitted 
to the  Commission  and  passed  on for  execution  to 
the European  Investment  Bank,  which  is responsible 
for the additional  financing  beyond  that  provided  by 
the Member  States. 
4.6. Projects  financed  in this  way  should  be widely 
publicized  so as to bring  home  to public  opinion  the 
solidarity  of the Member  States;  this  is the only  way 
of restoring  the confidence  of communities  who  are 
today  wondering  if th^y  are  not  doomed  to 
irremediable  impoverishment,  worsened  by  Com-
munity  selfishness. 4.7. The  Committee  is aware  that  since  all the 
loans  involved  will  have  to be amortized,  repayment 
and interest  costs  will  obviously  have  to be met  by 
the future  Regional  Fund. 
5. On  4 June,  the  Council  once  again  manifested 
its intention  to grant  priority  to the  implementation 
of a common  regional  policy.  As far as the Economic 
and Social  Committee  is  concerned,  formally 
undertaken  commitments  must  be  adhered  to. 
Pending  this,  the  Committee  considers  that  the 
provisional  procedure  it proposes  should  enable  the 
top-priority  measures  to be initiated  immediately. 
6. The  Economic  and  Social  Committee  has  been 
accorded  the  right  to draw  up opinions  on its own 
initiative.  It would  like  this  right  to be extended  to 
include  the  possibility  of direct  oral  communication 
of its views  to the Council  of Ministers;  this  would  be 
a more  vivid,  and  above  all more  effective,  method 
than  dispatch  of opinions,  reports  and  studies. 
Done  at Brussels,  26 June  1974. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPAS