OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the allocation of the reserve for Community initiatives for the period up to the end of 1999
Date: 1996-01-31
Institutions: European Economic and Social Committee
Subjects: EU initiative, Structural Funds, allocation of resources, budgetary reserve (EU), regional cooperation













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51996AC0092

OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the allocation of the reserve for Community initiatives for the period up to the end of 1999  


Official Journal C 097 , 01/04/1996 P. 0013 





Opinion on the allocation of the reserve for Community  initiatives for the period up to the end of 1999(96/C 97/04)On 31  October 1995, the  Commission decided to consult the Economic and Social Committee, under Article  198 of the Treaty  establishing the European Community, on the allocation of the reserve for Community initiatives for  the period up to the end of 1999. The Section for Regional Development and Town and Country Planning, which was responsible for  preparing the Committee's work on the subject, adopted its Opinion on 23  January 1996. The  Rapporteur was Mr  Christie. At its 332nd Plenary Session (meeting of 31  January 1996), the Economic and Social Committee  adopted the following Opinion unanimously. 1. Introduction1.1. In  October 1995 the Commission adopted a proposal in relation to  the allocation of the reserve for Community initiatives for the period up to the end of 1999. In a  communication to the Economic and Social Committee the Commission has sought the views of the  Committee on the proposed allocation. 1.2. The Economic and Social Committee has in recent years adopted two Opinions on the subject of  the Community initiatives (). In both cases the Economic and Social Committee restated its strong  support for the operation of this aspect to European Union efforts at securing a greater measure of  economic and social cohesion. Community initiatives represent an invaluable opportunity to develop  novel and innovative programmes of assistance in the disadvantaged regions. These are identifiably  EU programmes in that they operate outside the implementation procedures for the bulk of Structural  Funds support. 1.3. The financial arrangements agreed upon in 1993 with respect to the Community Initiatives  provided for a total allocation of ECU 13,45 billion, of which ECU 1,6 billion (representing 11,9  %) was held in reserve to be assigned to specific programmes at a later date. The Commission has  now come forward with proposals to allocate this reserve (ECU 1 665 billion) between a number of  the thirteen existing Initiatives. 1.4. Within the total available for allocation, and in accordance with the decisions made at the  Edinburgh Summit, the Commission proposes that ECU 690  million be allocated within Objective 1  regions, with the remaining ECU 975  million targeted at other regions. 2. General comments2.1. The proposed allocation of the financial reserve is generally consistent  with the priorities established during the last review of the Community initiatives programme,  priorities generally endorsed by the Economic and Social Committee in previous Opinions.  Consequently, the Committee is broadly in favour of the Commission's proposed allocations. 2.2. In its communication, the Commission restates the principle that the Structural Funds  generally should be directed towards creating employment in the Union. The Economic and Social  Committee wholly endorses this principle. Community Initiatives are rightly considered to represent  an important and innovative instrument in this respect, with programmes directed specifically at  implementing measures designed to improve employment possibilities in disadvantaged regions. 2.3. The Committee also welcomes the proposal to further develop the Interreg initiative by  introducing strand 'C' which will encourage cooperation and information exchange between recipient  regions generally, and specifically in the case of questions relating to the management of flooding  and drought. This will help ensure that the lessons learned in one region can be applied in other  regions. 2.3.1. The Interreg programme remains a key mechanism for encouraging transnational cooperation  with the objective of ensuring that best practice in particular regions can be applied elsewhere in  the EU. In this respect it is important that there is a capacity whereby the expertise which  specific regions have developed in matters such as the management of scarce water resources and  flood control can be applied in other parts of the Union. 2.3.2. The Committee notes that the Commission proposals for Interreg 'C' require that at least  three Member States are involved in an application for support. The Committee would propose that  this be amended, where appropriate, to two Member States in that there are areas within the Union  which are susceptible to flooding for which eligibility under this programme would be beneficial. 2.4. The Economic and Social Committee considers the extension of funding available under the four  programmes aimed at promoting industrial change (Konver, Rechar, Resider and Retex) to be  particularly important. In each of these programmes, Community Initiatives are directly promoting  employment and enhancing the long term prospects for the recipient regions. That these programmes  are now able to continue until 1999 is welcomed given the severity of the economic difficulties  that many of the regions confront. 2.5. The focus on strengthening direct measures to assist the re-absorption of particularly  disadvantaged groups within those unemployed is an aspect of the Community initiatives programme to  which the Economic and Social Committee attaches particular importance. Consequently, the Committee  endorses the Commission's proposal to increase the funds allocated to Youthstart and NOW, and fully  supports the principle underlying the Commission's new initiative, Employment-Inclusion. 2.6. The additional resources to be made available to the Adapt programme indicates the importance  now attaching to this comparatively new initiative. The Economic and Social Committee endorses the  Commission's proposal to add to the resources allocated to this initiative which seeks to assist  organizations to adapt to meet the new technologies and the new global economy in which many  companies now have to compete. 2.7. In its proposal, the Commission seeks to ensure a degree of flexibility in the assignment of  the reserve to permit Member States to concentrate resources around those initiatives yielding the  greatest benefit. The Economic and Social Committee acknowledges that flexibility provides Member  States with a means of maximising the benefits of the application of Community Initiatives. 2.8. The principle of flexibility in the application of the reserve is provided for explicitly in  the Commission's proposals relating to the four Initiatives for industrial reconversion. Assuming  that this does not jeopardize the principle of concentration, the Economic and Social Committee  acknowledges that this flexibility will allow resources to be applied where the need is greatest.  Moreover, this accords well with the principle of subsidiarity. 2.9. The Committee welcomes the emphasis that the Commission places upon continued support being  available to promote the development of small and medium-sized enterprises (SMEs). The Committee  notes that no further monies are proposed to be allocated specifically to the SME initiative.  Consequently it is important that SMEs receive adequate funding within the framework of those  initiatives that are receiving additional assistance. 2.10. The Committee notes that no mention is made of extending to 1999 the assistance available  under the Community initiative for peace and reconciliation in Northern Ireland and the border  counties of Ireland. This initiative is funded only to 1997. The Committee attaches great  significance to this initiative and supports its extension to 1999. Whilst the Committee recognizes  that only parts of the 'Peace initiative' funding comes from the Community initiative budget, it  nevertheless proposes that finances are assigned to ensure the continuation of the initiative to  1999. 2.11. The Community initiative facility is intended to promote innovative approaches to problems  common to a number of regions across the European Union. In this sense it operates in a similar  manner as the programmes introduced under the provisions of Article  10 of the European Regional  Development Fund Regulations. The Committee considers that, for purposes of maximising the impact  of the Structural Funds as a whole, it is important that there is some degree of interaction and  linkage between Community initiatives and programmes introduced under Article  10 of the ERDF. 3. Conclusion3.1. As recorded, the Economic and Social Committee supports the Commission  proposal for the allocation of the Community initiative reserve. It would, however, reiterate the  view that monitoring and assessment of the specific programmes is required. In its previous  Opinion, this Committee pointed to a number of specific issues that needed to be addressed in the  context of monitoring and appraisal, and would call upon the Commission to report as soon as  possible upon the direct impact that the Community initiatives have had. Done at Brussels, 31  January 1996. The Presidentof the Economic and Social CommitteeCarlos FERRER() OJ No C  304, 10. 11. 1993; OJ No C 295, 22. 10. 1994.