Amended proposal for a Council Regulation (EC) on the European Regional Development Fund
Date: 1999-01-20
Institutions: European Commission
Subjects: European Regional Development Fund, cooperation policy, development aid, regional development, sustainable development

C  52/12

EN

Official  Journal  of  the  European  Communities

23.2.1999

II

(Preparatory  Acts)

COMMISSION

Amended  proposal  for  a  Council  Regulation  (EC)  on  the  European  Regional  Development
Fund (˛)

(1999/C  52/10)

COM(1999)  18  final  -  98/0114(SYN)

(Submitted  by  the  Commission  pursuant  to  Article  189a(2)  of  the  EC  Treaty  on  20  January  1999)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and  in  particular  Article  130e  thereof,

Having  regard  to  the  proposal  from  the  Commission,

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

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

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189c 
the  European
Parliament,

cooperation  with 

in 

to  help 

(1)(cid:217)Whereas,  under  Article  130c  of  the  Treaty,  the
European  Regional  Development  Fund  (ERDF)  is
intended 
regional
redress 
imbalances  in  the  Community;  whereas  the  ERDF
therefore  contributes  to  reducing  the  gap  between
the  levels  of  development  of  the  various  regions  and
the  extent  to  which  the  least(cid:220)favoured  regions  and
islands,  including  rural  areas,  are  lagging  behind;

the  main 

(2)(cid:217)Wheras  Article  2(2)  of  Council  Regulation  (EC)
No  .(cid:216).(cid:216)./.(cid:216).  laying  down  general  provisions  on  the
Structural  Funds  states,  that  the  main  task  of  the
ERDF 
the  attainment  of
objectives  1  and  2,  as  referred  to  in  Article  1  of  that
Regulation;  whereas  Articles  19  and  20  of  that

to  contribute 

to 

is 

(˛)(cid:217)OJ  C  176,  9.6.1998,  p.  35.

Regulation  provide  that  the  ERDF  is  to  contribute
to  financing  transnational,  cross(cid:220)border  and  inter(cid:220)
regional 
the  Community
initiatives;  whereas  Articles  21  and  22  state  that  it  is
to  support  innovative  measures  at  Community  level
and  technical  assistance  measures;

cooperation 

under 

(3)(cid:217)Whereas  the  provisions  common  to  the  Structural
Funds  are  set  out  in  Regulation  (EC)  No  .(cid:216).(cid:216).(cid:216)/.(cid:216).;
whereas  the  type  of  measures,  which  may  be
financed  by  the  ERDF  under  objectives  1  and  2,  the
innovative  measures
Community 
should  be  defined;

inititatives  and 

(4)(cid:217)Whereas  the  contribution  of  the  ERDF,  in  pursuit
of  its  task  of  promoting  regional  development,  to
the  harmonious,  balanced  and  sustainable  devel(cid:220)
opment  of  economic  activity,  to  a  high  degree  of
competitiveness,  to  a  high  level  of  employment,  to
equality  between  men  and  women,  and  to  a  high
level  of  protection  and 
the
environment  should  be  defined;

improvement  of 

(4a)(cid:217)Whereas 

the  ERDF  should  provide  assistance
within  the  framework  of  a  comprehensive  and
integrated  strategy  for  sustainable  development
and  ensure  synergy  with  assistance  from  the  other
Structural  Funds;

the  productive  environment  and 

(5)(cid:217)Whereas,  as  part  of  its  tasks,  the  ERDF  should
the
support 
competitiveness  of  enterprises,  especially  in  small
local  economic
and  medium(cid:220)sized  enterprises, 
development  and  employment, 
in  the
fields  of  culture  and  tourism  where  these  contribute
to  employment  creation,  research  and  technological
development,  the  development  of  and  the  provision
of  suitable  access  to  both  regional  and  trans(cid:220)
European  networks  in  the  transport  infrastructure,

including 

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and 

energy 

sectors, 

telecommunications 
the
protection  and  improvement  of  the  environment  on
the  principle, 
that  preventive  action  should  be
taken,  that  environmental  damage  should  as  a
priority  be  rectified  at  source  and  that  the  polluter
should  pay,  and  by  fostering  the  clean,  efficient
utilisation  of  energy  and 
the  development  of
renewable  energy  sources,  and  equality  between
men  and  women  in  the  field  of  employment;

(6)(cid:217)Whereas  the  ERDF  should  play  a  particular  role  in
the
favour  of 
context  of  raising  the  quality  of  life  and  developing
the  territory,  especially  by  promoting  territorial
employment  pacts  and  new  sources  of  employment;

local  economic  development, 

in 

(7)(cid:217)Whereas  measures 

of  Community 

interest
undertaken  at  the  initiative  of  the  Commission  have
an  important  role  to  play  in  achieving  the  general
objectives  of  Community  structural  action  referred
to  in  Article  1  of  Regulation  (EC)  No  .(cid:216).(cid:216)./98;
whereas,  to  that  end,  in  view  of  the  value  it  adds  at
Community  level,  the  ERDF  should  continue  to
promote  cross(cid:220)border, 
inter(cid:220)
the  regions
regional  cooperation, 
located  on  the  external  frontiers  of  the  Union,  the
least(cid:220)favoured  islands  and  the  most  remote  regions,
in  view  of  their  special  features  and  difficulties;
whereas,  in  the  context  of  that  cooperation,  the
harmonious,  balanced  and  sustainable  development
of  the  whole  of  the  Community  territory  adds  value
to  work  to  promote  economic  and  social  cohesion;
whereas  the  contribution  of  the  ERDF  to  that
development  should  be  continued  and  increased;

transnational  and 

including 

in 

(8)(cid:217)Whereas  the  ERDF  also  contributes  to  support  for
in
innovative  measures  and 
accordance  with  Articles  21  and  22  of  Regulation
(CE)  No  .(cid:216).(cid:216).(cid:216)/98;

technical  assistance 

(9)(cid:217)Whereas  it  is  appropriate  to  lay  down  the  powers
for  the  adoption  of  the  implementing  provisions
and  to  set  out  transitional  provisions;

(10)(cid:217)Whereas  it  is  necessary  to  repeal  Council  Regu(cid:220)
lation  (EEC)  No  4254/88  of  19  December  1988
laying  down  provisions  for 
implementing  Regu(cid:220)
lation  (EEC)  No  2052/88  as  regards  the  European
Regional  Development  Fund(cid:216)(˛),  as  last  amended  by
Regulation  (EEC)  No  2083/93(cid:216)(ˇ),

(˛)(cid:217)OJ  L  374,  31.12.1988,  p.  15.
(ˇ)(cid:217)OJ  L  193,  31.7.1993,  p.  34.

HAS  ADOPTED  THIS  REGULATION:

Article  1

Tasks

shall  contribute 

Under  Article  130c  of  the  Treaty  and  Regulation  (EC)
No  .(cid:216).(cid:216)./.(cid:216).,  the  European  Regional  Development  Fund
(ERDF) 
financing  of
assistance  as  defined  in  Article  9(1)  of  that  Regulation  to
promote  economic  and  social  cohesion  by  correcting  the
main  regional  imbalances  and  participating  in  the  devel(cid:220)
opment  and  conversion  of  regions.

towards 

the 

that  end, 

to
To 
promoting  sustainable  development  and  the  creation  of
permanent  jobs.

the  ERDF  shall  also  contribute 

Article  2

Scope

1.(cid:218)(cid:217)As  part  of  its  tasks,  as  defined  in  Article  1,  the
ERDF  shall  contribute  towards  the  financing  of:

(a)(cid:217)productive 

investment 

to  create  and 

safeguard

permanent  jobs;

(b) investment  in  infrastructure:

(i)(cid:217)which,  in  regions  designated  under  objective  1,
helps  to  increase  the  economic  potential,  devel(cid:220)
opment,  structural  adjustment  and  creation  or
maintenance  of  permanent  jobs  in  those  regions,
including  investment  contributing  to  the  estab(cid:220)
lishment  and  development  of 
trans(cid:220)European
networks  in  the  areas  of  transport,  telecommuni(cid:220)
cations  and  energy  infrastructures;

(ii) which,  in  regions  and  areas  designated  under
objectives  1  and  2  the  Community  initiative  for
cooperation  as  referred  to  in  Article  19(1)(a)  of
the  Regulation  laying  down  general  provisions
on  the  Structural  Funds,  concerns  the  diversifi(cid:220)
cation  of  economic  sites  and  areas  suffering  from
the  renewal  of  depressed
industrial  decline, 
urban  areas,  and  to  the  revitalisation  of  and
improved  access 
rural  areas  and  areas
dependent  on  fisheries;  areas  whose  modern(cid:220)
isation  or  regeneration  is  a  prerequisite  for  the
job(cid:220)creating
creation 
including  communications
economic  activities, 
infrastructure  and  other 
links  on  which  the
development  of  these  activities  is  dependent;

development 

or 

of 

to 

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(c)(cid:217)the  development  of 

endogenous  potential  by
measures  which  encourage  and  support  local  devel(cid:220)
opment  and  employment  initiatives  and  the  activities
of  small  and  medium(cid:220)sized  enterprises,  involving  in
particular:

(i)(cid:217)assistance  towards  services  for  enterprises, 

in
particular  in  the  fields  of  management,  market
studies  and  research,  and  services  common  to
several  enterprises,

(ii) financing  the  transfer  of  technology,  including
in  particular  the  collection  and  dissemination  of
information  and  financing  innovation  in  enter(cid:220)
prises,

to
(iii) improvement  of  access 
financial  means  and 
loans,  by  creating  and
developing  appropriate  financing  instruments,  as
referred  to  in  Article  27  of  the  General  Regu(cid:220)
lation,

enterprises 

for 

(iv)(cid:217)direct  aid  to  investment  as  defined  in  Article
27(3)  of  the  (general)  Regulation  where  no  aid
scheme  exists,

(v)(cid:217)the  provision  of  small(cid:220)scale  infrastructure,

(vi)(cid:217)aid 

for 
services 
measures  financed  by  the  ESF;

structures  providing  neighbourhood
jobs  but  excluding
to  create  new 

(d)(cid:217)technical  assistance  measures  as  referred  to  in  the
second  subparagraph  of  Article  2(4)  of  Regulation
(EC)  No  .(cid:216).(cid:216)./.(cid:216).

In  the  regions  designated  under  objective  1,  the  ERDF
may  contribute  towards  the  financing  of  investment  in
education  and  health  that  is  beneficial  to  the  regions’
structural  adjustment.

(c) the  development  of  the  information  society;

(d) the  protection  and  improvement  of  the  environment,
in  particular  taking  account  of  the  principles  of
precaution  and  of  preventive  action  in  the  support  to
economic  development,  and  the  fostering  of  clean,
efficient  utilisation  of  energy  and  the  development  of
renewable  energy  sources;

(e) equality  between  men  and  women,  in  the  field  of
employment  principally  through  the  establishment  of
services
firms,  and 
enabling  the  reconciliation  of  family  and  working
life;

infrastructure  and 

through 

(f) transnational,  cross(cid:220)border  and  inter(cid:220)regional  coop(cid:220)

eration  on  regional  development.

Article  3

Community  Initiative

1.(cid:218)(cid:217)Pursuant  to  Article  19  of  Regulation  ((EC)  No
.(cid:216).(cid:216)./98),  the  ERDF  shall,  in  accordance  with  Article
20(2)  of  that  Regulation,  contribute  to  the  implemen(cid:220)
tation  of  the  Community 
initiative  for  cross(cid:220)border,
transnational  and  inter(cid:220)regional  cooperation  intended  to
encourage  the  harmonious,  balanced  and  sustainable
development  of  the  whole  of  the  Community’s  territory
("Interreg’).

2.(cid:218)(cid:217)In  accordance  with  Article  20(2)  of  Regulation
((EC)  No  .(cid:216).(cid:216)./98),  the  scope  laid  down  in  paragraph  1  of
this  Article  may  be  extended  by  the  decision  on  the
Funds’  contribution  to  the  financing  of  measures  eligible
under  the  (ESF,  EAGGF,  FIFG)  Regulations  with  a  view
to  implementing  all  the  measures  in  the  Community
initiative  programme  concerned.

2.(cid:218)(cid:217)In  accordance  with  paragraph  1,  the  financial
contribution  of  the  ERDF  shall  support  areas  such  as  for
example:

Article  4

Innovative  measures

(a)(cid:217)the  productive  environment,  in  particular  to  increase
competitiveness  and  sustainable  investment  by  firms,
especially  the  small  and  medium(cid:220)sized  enterprises,
and  to  make  regions  more  attractive,  particularly  by
improving  the  standard  of  their  infrastructure;

(b) research  and  technological  development  with  a  view
to  promoting  the  introduction  of  new  technologies
and  innovation,  and  strengthening  research  and  tech(cid:220)
nological  development  capacities  contributing 
to
regional  development;

1.(cid:218)(cid:217)In  accordance  with  Article  21(1)  of  Regulation
((EC)  No  .(cid:216).(cid:216).(cid:216)/98),  the  ERDF  may  also  contribute  to
financing:

regional 

(a)(cid:217)studies  on  the  Commission’s  initiative  to  identify  and
analyse 
and
solutions,  particularly  with  a  view  to  the  harmonious,
balanced  and  sustainable  development  of  the  whole
of 
the
European  Spatial  Development  Perspective;

the  Community’s 

development 

including 

territory, 

problems 

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(b) pilot  projects  to  identify  or  test  new  regional  and
local  development  solutions  with  a  view  to  their
inclusion  in  assistance  after  demonstration  of  their
feasibility;

(c) exchanges  of  experience  relating  to  innovation  with
the  aim  of  turning  to  account  and  transferring
experience  gained  in  the  regional  or  local  devel(cid:220)
opment  field.

2.(cid:218)(cid:217)In  accordance  with  Article  21(2)  of  Regulation
((EC)  No  .(cid:216).(cid:216)./98),  the  scope  laid  down  in  paragraph  1  of
this  Article  may  be  extended  by  the  decision  on  the
Funds’  contribution  to  the  financing  of  measures  eligible
under  the  (ESF,  EAGGF,  FIFG)  Regulations  with  a  view
to  implementing  all  the  measures  in  the  pilot  project
concerned.

References  to  the  repealed  Regulation  shall  be  construed
as  references  to  this  Regulation.

Article  7

Review  clause

On  a  proposal  from  the  Commission,  the  Council  shall
review  this  Regulation  by  31  December  2006.

It  shall  act  on  this  proposal  in  accordance  with  the
procedure  laid  down  in  Article  130e  of  the  Treaty.

Article  8

Transitional  provisions

Article  5

Implementing  rules

The  transitional  provisions  referred  to  in  Article  52  of
Regulation  (EC)  No  .(cid:216).(cid:216)./.(cid:216).  shall  apply  mutatis  mutandis.

The  detailed  implementing  rules  for  this  Regulation  shall
be  adopted  by  the  Commission  in  accordance  with  the
procedure  laid  down  in  Article  47  of  Regulation  (EC)
No  .(cid:216).(cid:216)./.(cid:216).

Article  9

Entry  into  force

Article  6

Repeal

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

Regulation  (EEC)  No  4254/88  is  repealed  with  effect
from  1  January  2000.

This  Regulation  shall  be  binding 
directly  applicable  in  all  Member  States.

in 

its  entirety  and