Proposal for a COUNCIL REGULATION (EC) on the grant of financial assistance to Portugal for a specific programme for the modernization of the Portuguese textile and clothing industry
Date: 1994-11-30
Institutions: European Commission
Subjects: EU financial instrument, Portugal, aid programme, clothing industry, modernisation of industry, textile industry

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(94) 562  final 

Brussels, 30.11.1994 

94/  0280(CNS) 

Proposal for a 

COUNCIL REGULATION  (EC) 

on  the  grant  of  financial  assistance  to  Portugal  for  a specific  programme  for  the 
modernization  of  the  Portuguese  textile  and clothing  industry 

(presented by the Commission) 

Explanatory Memorandum 

Specific  programme for the modernization of the Portuguese textile and  clothing 
industry 

1.  Throughout  the  GATT  negotiations,  the  Portuguese  authorities  stressed  that  the 
textile and  clothing  industry,  which  accounts  for  one third  of  the employment  and 
exports  of  Portuguese  industry,  is  less  able  to  stand  up  to  the  increased 
international  competition  which  should  result  from  the  gradual  elimination  of 
import  restrictions  than  its  counterparts  in  the  rest  of  the  Community.  When  the 
results  of  the  GATT  negotiations  were  agreed,  the  Commission  and  the  Council 
recognized the specific  situation of the Portuguese textile and clothing industry and 
its vital importance to the country,  and agreed on the following  text: 

"To  help  Portugal  resolve  the  core  problem  of  the  future  of  its  textile  industry, 
having  regard  to the specific  nature of  its economic  structures,  the Council  noted, 
and  endorsed,  the  Commission's  intention  of  drawing  ECU 400  million  from  the 
resources  set  aside  for  the  Community  initiative  programmes.  This  exceptional 
allocation  will  serve  to  modernize  Portugal's  textile  sector,  supplementing  the 
programme  submitted  by  Portugal  under  the  Community  support  framework  for 
Objective  1; it will also be additional to the Retex initiative operative until  1997. 

"Moreover,  as  part  of  the  same  modernization  drive,  Portuguese  textile  and 
clothing  undertakings  will,  alongside other  undertakings,  have access  to  European 
Investment  Bank 
type  of  financing,  Portuguese 
undertakings  will  qualify  for  interest  subsidies  to  be  financed,  up  to  ECU  100 
million  over  the  six  years  covered  by  the  period  1994-99,  from  the  exceptional 
ECU 400 million  allocation." 

loans.  To  facilitate 

this 

2.  The Commission  proposed  that this programme be financed  under  the  Community 
initiatives  because,  while  the  measure  concerns  only  one  Member  State,  it 
complies  with  Article 3  of  the  ERDF  Regulation,  which  stipulates  that  of  the 
objectives  assigned  to  that  Fund,  the  Commission's  initiative  is  intended  to  "help 
to  resolve  serious  problems  directly  associated  with  the  implementation  of  other 
Community  policies  and  affecting  the  socio-economic  situation  of  one  or  more 
regions". 

3.  During  the  second  quarter  of  1994,  the  Commission  consulted  the  European 
Parliament,  the  Economic  and  Social  Committee,  the  Committee  of  the  Regions 
and  the  Management  Committee  for  Community  initiatives  on  the  guidelines  for 
the programme to modernize the Portuguese textile and clothing  industry. 

After  receiving  opinions  from  these  institutions,  the  Commission  published  the 
the  European 
guidelines  for 
Communities  and  the  Portuguese  authorities  presented  a  draft  programme  to  the 
Commission  in accordance with the guidelines on  11 October  1994. 

the  Official  Journal  of 

this  programme 

in 

/t  A-

Parliament,  in its opinion,  left  open the matter of the programme's  financing.  This 
question  was  dealt  with  on  16 November  1994 with  supplementing  and  amending 
budget No 2/94,  when  Parliament  agreed  to enter the necessary  appropriations  for 
the  financing  of  the programme  during  the period  1995-99  in  one  of  the  chapters 
of  Rubric 3 of  the Financial  Perspectives.  This  was confirmed  on  the occasion  of 
the trilogue. 

Given  the  change  of  Rubric,  it  is  necessary  to  have  a  legal  basis  other  than  that 
used  for  the  Structural  Funds  and  which  reflects  the  objective  of  the  programme. 
This  remains  the promotion  of  economic  and  social  cohesion.  By  contributing  to 
the  modernisation  of  the  textile  and  clothing  industry,  in  the  framework  of 
horizontal  aid  schemes concerning all  Portuguese industry,  the programme aims to 
assist  the  regions  of  the  country  heavily  dependent  on  this  sector  to  overcome  a 
major  hurdle  in  the  adaptation  of  their  industrial  fabric  as  a  whole.  It  thus 
completes  RETEX  measures  aimed  at  the  modernisation  of  other  sectors  of 
activity. 

This  measure  is  now  based  on  Article  130b  of  the  Treaty,  which  stipulates  "if 
specific  actions  prove  necessary  outside  the  Funds  and  without  prejudice  to  the 
measures  decided  upon  within  the  framework  of  the  other  Community  policies, 
such  actions  may  be  adopted  by  the  Council  acting  unanimously  on  a  proposal 
from  the Commission  and after  consulting  the European Parliament,  the Economic 
and Social Committee and the Committee of the regions". 

^ 

^ |^ proposal for a Council Regulation (EC) 
of 
on the grant of financial assistance to Portugal for a specific programme for the 
modernization of the Portuguese textile and clothing industry 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the Treaty  establishing  the  European  Community,  and  in  particular 
the last paragraph of Article  130b thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinion of the Economic and Social Committee, 

Having regard to the opinion of the Committee of the Regions, 

Whereas  a  large  part  of  the  Portuguese  textile  and  clothing  industry  is  highly 
vulnerable in the face of current and future international competition  and the weight of 
this  sector  in  the  economic  fabric  of  some  Portuguese  regions  might jeopardize  the 
economic and social cohesion of the Community; 

Whereas, at its meeting of  15 December  1993, the Council approved the Commission's 
intention  to  allocate  ECU 400  million  to  the  modernization  of  the  Portuguese  textile 
and clothing industry; 

Whereas  the Commission  published  Notice  94/C  180/04  to  the  Member  States  laying 
down  guidelines  for  the  initiative  concerning  the  modernization  of  the  Portuguese 
textile and clothing industry in the Official  Journal of the European Communities;l 

OJN0CI8O,  1.7.1994,  p.  15. 

Whereas  the Budgetary  Authority  has  agreed  to enter  ECU 400  million  for  the  period 
1995-99 into one of the chapters of section  3 of the financial  perspective annexed  to the 
Interinstitutional  Agreement  of  29 October  1993  on  budgetary  discipline  and 
improvement of the budgetary procedure2; 

Whereas the provisions governing  the use of these resources  should be laid down; 

Whereas,  in  order  to  simplify  the  administration  of  these  resources,  which  should  be 
entrusted  to  the  Commission,  and  to  ensure  consistency  with  the  Community's  other 
structural  measures, the Commission  should apply the appropriate provisions  governing 
the  Structural  Funds,  in  particular  Regulations  (EEC)  No  2052/88,  as  amended  by 
Regulation  (EC)  No  2081/933,  No  4253/88,  as  amended  by  Regulation  (EEC)  No 
2082/934,  No 4254/88, as amended  by Regulation  (EEC)  No 2083/935, No  4255/88, 
as  amended  by  Regulation  (EEC)  No  2084/936 and  No  1866/90,  as  last  amended  by 
Regulation  (EC) No  2745/947; 

HAS ADOPTED THIS REGULATION: 

Article 1 

A programme  for  the  modernization  of  the Portuguese  textile  and  clothing  industry  is 
hereby instituted  for the period  1995-99 in order to facilitate  its adaptation  to increasing 
international  competition. 

Article 2 

The eligible measures, conditions for  granting  Community  assistance and  implementing 
provisions shall be those set out in the Commission's Notice 94/C  180/048. 

Article 3 

The  specific  Portuguese  textile  programme  shall  be jointly  financed  by  the  Member 
State and the Community.  The total Community contribution  to the programme shall be 
ECU 400  million  in  1994  prices.  There  may  also  be  loans  from  the  European 
Investment  Bank.  In  order  to  facilitate  this type of  financing,  Portuguese  undertakings 

2  OJ No C 331, 7.12.1993, p.  1. 
3  OJNoL185,  15.7.1993, p. 9. 
4  OJ No L  193, 31.7.1993, p. 20. 
5  OJ No L  193, 31.7.1993, p. 34. 
6  OJNoL193,  31.7.1993, p. 39. 
7  OJ No L 290,  11.11.1994, p. 4. 
8  OJN0CI8O,  1.7.1994, p. 15. 

shall  qualify  for  interest  subsidies  to  be  financed,  up  to  ECU  100  million,  from  the 
allocation provided  for  this initiative. 

Article 4 

The  provisions  governing  the  Structural  Funds,  particularly  those  concerning  rates  of 
assistance,  eligibility  of  expenditure,  monitoring,  evaluation,  financial  execution  and 
control and indexation shall apply. 

AûicleJ) 

This  Regulation  shall  enter  into  force  on  the  day  of  its  publication  in  the  Official 
Journal of the European Communities. 

It shall apply from  1 July 1994. 

This  Regulation  shall  be binding  in  its entirety  and directly  applicable  in all  Member 
Stales. 

Done at Brussels, 

S 

FICHE FINANCIERE 

1. INTITULE DE L'ACTION 

Programme  spécifique  concernant  la modernisation  de  1'industrie 
du textile-habillement du Portugal 

2. LIGNE BUDGETAIRE CONCERNEE 

B2-60 autres actions régionales 

3. BASE LEGALE 

Application  des  dispositions  appropriées  régissant  les  Fonds 
structurels  et  notamment  celles  des  règlements  (CEE)  2052/88, 
4253/88,  4255/88,  1866/90, tels  que modifiés  par  les  règlements 
2081/93, 2082/93, 2083/93, 2084/93 et 2745/94. 

\ 

4. DESCRIPTION DE l'ACTION 

4.1. Objectif général de l'action s 

modernisation  de  l'industrie  du  textile-habillement  du 
Portugal en vue de faciliter son adaptation à l'évolution de 
la concurrence internationale 

4.2. Durée 

1995/1999 

5.  CLASSIFICATION DE LA DEPENSE 

5.1. et  5.2 

GD/DNO 

5.3 RECETTES  : NEANT 

6. TYPE DE LA DEPENSE 

Subventions pour co-financements avec d'autres sources du secteur 
public et/ou privé. 

Bonification d'intérêt 
Autres 

U 

Les taux de financement du secteur privé, des partenaires publics 
et  de  la Communauté  aux différentes actions du  programme  seront 
déterminés  lors de  l'instruction  de  ce  dernier  dans  le  respect 
des règles prévues par les règlements des Fonds  structurels. Les 
projets  d'investissements  financés  au  titre  de  cette  action 
s'inscrivent  dans  le  cadre  des  régimes  d'aide  horizontaux 
existants au portugal. 

7.  INCIDENCE FINANCIERE 

7.1  Mode  de  calcul  s  Montants  décidés  par  le  Conseil  du  15 

décembre 1993 
Engagement  pris par  l'union européenne lors de  l'accord  sur 
les résultats des négociations du GATT 

7.2  ventilation par mesure du coût de l'action 

Sur  la  base  de  la  proposition  de  programmes  des  autorités 
portugaises  qui  établit  une  ventilation  des  crédits  entre 
les mesures proposées dans les orientations publiées au JO C 
180 du  1er  juillet  1994, la Commission  en partenariat  avec 
ces  autorités  examinera  le bien-fondé  de  cette  répartition 
par  rapport  aux  objectifs  et  aux  conditions  indiquées  dans 
les orientations. 

7.4 Echéancier indicatif des crédits d'engagement 

en MioEcu 

Situation 
cumulée 
fin 1993 
(1) 

Budget 
1994 

APB 
1995 

PROGRAMMATION INDICATIVE 

1996 

1997 

1998 

1999 

T 
0 
T 
A 
L 

-

2 

80 

80 

80 

BO 

78 

400 

8.  DISPOSITIONS ANTI-FRAUDE PREVUES DANS LA PROPOSITION D'ACTION 

Contrôle approfondi de l'exécution  conforme des projets financés, 
effectué par  les services de la Commission.  Ce contrôle  comprend 
notamment  des  vérifications  documentaires  sur  pièces  ainsi  que 
des contrôles sur place. 

9.  ELEMENTS D'ANALYSE  COUT-EFFICACITE 

Eléments d'analyse coût-bénéfice 

9.1 Objectifs spécifiques et quantifiables, population visée 

Il  s'agit  de  faciliter  la  modernisation  d'une  partie  de 
l'industrie  textile-habillement  du  Portugal  qui  comprend  2.900 
établissements  de  plus  de  20  personnes  regroupant  233.000 
travailleurs  soit  31% de l'industrie  portugaise. Cette  industrie 
se  concentre  au  Nord  et  au  centre  du  Pays  où  elle  représente 
plus de 50% de l'emploi industriel. 

La  présente  initiative,  en  contribuant  à  la  modernisation  de 
l'industrie  du  textile-habillement  du  Portugal,  aidera  les 
régions de  ce pays  fortement  dépendantes  de  ce  secteur  A passer 
un  cap  difficile  d'adaptation  de  l'ensemble  de  leur  tissu 
industriel  qui, par  manque  d'alternatives  et  d'un  environnement 
favorable,  n'ont  pu,  jusqu'à  ce  jour,  de  façon  suffisante  ni 
diversifier  leurs  activités  économiques  ni  moderniser  leur 
industrie. 

L'objectif  est  d'aider  des  entreprises  du  secteur  textile-
habillement  à  se  placer  dans  une  perspective  de  modernisation, 
sur  des  bases  saines,  en  prenant  en  compte  l'évolution  des 
méthodes  d'organisation,  des  technologies  et  du  marché 
international. 

Afin de  renforcer  les entreprises dans  le domaine technologique, 
et  rapprocher  les  niveaux  de  productivité  de  1'industrie 
portugaise  de  la moyenne communautaire,  les efforts  d'adaptation 
dans  le cadre de  la présente  action peuvent  aussi porter  sur  la 
modernisation des équipements de production. 

L'octroi de concours communautaires dans ce domaine est toutefois 
conditionné  par  l'approbation  par  la Commission  d'une  stratégie 
d'adaptation  de  l'industrie  textile-habillement  soumise  par  les 
autorités  portugaises  qui  ne  devrait  pas  conduire,  à  une 
augmentation  globale  au Portugal des capacités  de production  de 
l'industrie textile-habillement exprimées en volume. 

9.2  Justification de l'action 

Décision  de  financement  d'un  programme  d'une  contribution 
communautaire  de  400  MECUS  déjà  prise  par  le  Conseil  du  15 
décembre  1993 et approuvé par la résolution du Parlement  européen 
n° 181.836 du 3.5.1994. 

Justification de 1'aide communautaire 

L'industrie textile-habillement  qui représente 1/3 de l'emploi et 
des  exportations  du  Portugal  est  moins  apte  que  1'industrie  du 
reste  de  la  Communauté  à  s ' adapter  pour  faire  face  à 
l'augmentation  de  la  concurrence  internationale  résultant  de 
l'élimination  progressive  des  réductions  aux  exportations  et 
aussi éviter  le développement  d'une situation de crise  régionale 
préjudiciable  à  la  cohésion  économique  et  sociale  de  la 
Communauté. 

Le  programme  RETEX  a  pour  objet  la  diversification  des  régions 
fortement dépendantes du secteur textile-habillement.  Il concerne 
donc  des  actions  en  faveur  des  entreprises  des  secteurs 
d'activité autres que le secteur textile-habillement. 

"Y 

9.3  Suivi et évaluation 

Les  méthodes  de  suivi  et  d'évaluation  de  ce  programme  seront 
similaires  à celles envisagées pour  les programmes  opérationnels 
et  pour  les  initiatives  communautaires  financées  par  les  Fonds 
structurels. 

9.4.Cohérence avec la programmation  financière 

L'action  est  prévue  dans  la  programmation  financière  et 
mentionnée  dans  la  proposition  d'adoption  des  perspectives 
financières en vue de  l'élargissement  de l'union  européenne  (COM 
(94) 398 final page 14 

10.  DEPENSES ADMINISTRATIVES  (PARTIE A DU BUDGET) 

10.1 

10.2 

L'action  proposée  n'implique  pas une augmentation  du  nombre 
d'effectifs de la Commission. 

II n'y  a pas de dépenses de  fonctionnement  ni  de  personnel 
générés par la proposition d'action. 

î 

ISSN 0254-1475 

COM(94) 562 final 

DOCUMENTS 

EN 

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ISBN 92-77-83271-1 

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