Common Position (EC) No 20/1999 of 14 April 1999 adopted by the Council, acting in accordance with the procedure referred to in Article 189c of the Treaty establishing the European Community, with a view to adopting a Council Regulation on the European Regional Development Fund
Date: 1999-04-14
Institutions: Council of the European Union
Subjects: European Regional Development Fund, economic and social cohesion, investment policy, job creation, regional aid, sustainable development

14.5.1999

EN

Official Journal of the European Communities

C 134/1

I

(Information)

COUNCIL

COMMON POSITION (EC) No 20/1999

adopted by the Council on 14 April 1999

with a view to adopting Council Regulation (EC) No …/1999 of … on the European
Regional Development Fund

(1999/C 134/01)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having
regard
Commission (1),

to

the

proposal

from the

Having regard to the opinion of the Economic and
Social Committee (2),

Having regard to the opinion of the Committee of the
Regions (3),

Acting in accordance with the procedure laid down in
Article 189c of the Treaty (4),

(1) Whereas Article 130c of the Treaty provides that
the European Regional Development Fund
(ERDF) is intended to help redress the main
regional imbalances in the Community; whereas
the ERDF therefore contributes to reducing the

(1) OJ C 176, 9.6.1998, p. 35 and OJ C 52, 23.2.1999,

p. 12.

(2) OJ C 407, 28.12.1998, p. 74.
(3) OJ C 51, 22.2.1999, p. 1.
(4) European Parliament opinion of 19 November 1998 (OJ
C 379, 7.12.1998, p. 178), Council Common Position of
14 April 1999 and European Parliament Decision of …
(not yet published in the Official Journal).

gap between the levels of development of the
to which the
various regions and the extent
including
least-favoured regions and islands,
rural areas, are lagging behind;

(2) Whereas Article

2(2)

the ERDF is

of Regulation

(EC)
No …/1999 laying down general provisions on
the Structural Funds (5) provides that the main
task of
to contribute to the
attainment of Objectives 1 and 2, as referred to
in Article 1, first subparagraph, points 1 and 2
(hereinafter referred to as (cid:28)Objectives 1 and 2’)
of that Regulation; whereas Articles 20 and 21
of the same Regulation provide that the ERDF
cross-border,
is
cooperation
transnational
under
initiatives; whereas
Articles 22 and 23 of the Regulation in question
state that it is to support innovative measures at
assistance
and
Community
measures;

to contribute
and
the Community

to financing
interregional

technical

level

(3) Whereas

the

common

provisions

the
Structural Funds are set out in Regulation (EC)
No …/1999; whereas the type of measures which
may be financed by the ERDF under Objectives
1 and 2,
and
innovative measures should be defined;

the Community

initiatives

to

(4) Whereas the contribution of the ERDF, in the
context of
task of promoting regional
development, to the harmonious, balanced and
sustainable development of economic activity, to
a high degree of competitiveness, to a high level

its

(5) OJ L ….

C 134/2

EN

Official Journal of the European Communities

14.5.1999

of employment, to equality between women and
men and to a high level of protection and
improvement of
should be
defined;

the environment

(5) 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;

to

the

ERDF

continues

transnational

promote
that
cross-border,
and interregional
cooperation, including in the regions located on
the external frontiers of the Union within the
meaning of the Treaty, the least-favoured islands
and the most remote regions, in view of their
special features and difficulties; whereas in the
the harmonious,
context of
that cooperation,
balanced and sustainable development of
the
whole of the Community territory adds value to
action to promote economic and social cohesion;
whereas the contribution of the ERDF to that
development should be continued and increased;

of

local,

regional

culture and tourism where

(6) Whereas, as part of its tasks, the ERDF should
support
the productive environment and the
competitiveness of enterprises, especially small
and medium-sized enterprises;
local economic
development and employment, including in the
fields of
these
contribute to the creation of sustainable jobs;
the
research and technological development;
development
and
trans-European networks including the provision
of suitable access to the said networks in the
sectors
infrastructure,
transport
telecommunications and energy; the protection
and improvement of the environment taking into
account the principles of precaution and that
preventive
that
should
environmental damage should as a priority be
rectified at source and that the polluter should
pay and by fostering the clean and efficient
utilisation of energy and the development of
renewable energy sources, and equality between
women and men in the field of employment;

taken,

action

be

of

(7) Whereas the ERDF should play a particular role
in favour of local economic development, in the
context of
life and
developing the territory, especially by promoting
territorial employment pacts and new sources of
employment;

improving the quality of

(8) Whereas the ERDF should as part of its task
support
the
rehabilitation of abandoned areas with a view to
local, rural or urban economic development;

investment

favour

of

in

(10) Whereas

is appropriate to lay down the
powers
implementing
the
provisions and to set out transitional provisions;

adoption of

it
for

(11) Whereas Council Regulation (EEC) No 4254/88
of 19 December 1988 laying down provisions for
implementing Regulation (EEC) No 2052/88 as
regards
the European Regional Development
Fund (1) should be repealed,

HAS ADOPTED THIS REGULATION:

Article 1

Tasks

European

No …/1999,

Pursuant to Article 130c of the Treaty and Regulation
(EC)
Regional
the
Development Fund (ERDF) shall contribute towards
the financing of assistance as defined in Article 9 of
that Regulation to promote economic and social
cohesion by correcting the main regional imbalances
and participating in the development and conversion
of regions.

(9) 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 …/1999; whereas, to that end, in view of the
value it adds at Community level, it is important

To that end,
the ERDF shall also contribute to
promoting sustainable development and the creation
of sustainable jobs.

(1) OJ L 374, 31.12.1988, p. 15. Regulation as last amended
by Regulation (EEC) No 2083/93 (OJ L 193, 31.7.1993,
p. 34).

14.5.1999

EN

Official Journal of the European Communities

C 134/3

Article 2

Scope

to in Article 28 of Regulation (EC) No
…/1999,

As part of its tasks as defined in Article 1, the

1.
ERDF shall contribute towards the financing of:

(iv) direct aid to investment as defined in Article
28(3) of Regulation (EC) No …/1999 where no
aid scheme exists,

(a) productive investment

to create and safeguard

sustainable jobs;

(v) the provision of

appropriate
development,

to

infrastructure on a scale
employment
local

and

(b) investment in infrastructure:

the

economic

structural

(i) which, in regions covered by Objective 1, helps
potential,
to
increase
and
development,
creation or maintenance of sustainable jobs in
those
in
including
infrastructure contributing to the establishment
and development of trans-European networks
in the areas of transport, telecommunications
and energy infrastructures;

adjustment

investment

regions,

(ii) which,

in regions and areas

covered by
Objectives 1 and 2 or the Community initiative
referred to in Article 20(1)(a) of Regulation
(EC) No …/1999, concerns the diversification
of economic sites and industrial areas suffering
from decline, the renewal of depressed urban
areas and the revitalisation of and improved
access to rural areas and areas dependent on
fisheries;
instruments in infrastructure where
modernisation or regeneration is a prerequisite
for the creation or development of job-creating
including infrastructure
economic activities,
links on which the development of
such
activities depends;

(c) the development of

endogenous potential by
measures which encourage and support
local
development and employment initiatives and the
activities of small and medium-sized enterprises,
involving in particular:

(i) 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, common organisation between
enterprises and research establishments and
financing the implementation of innovation in
enterprises,

structures providing neighbourhood
(vi) aid for
services
to create new jobs but excluding
measures financed by the European Social Fund
(ESF);

(d) technical assistance measures as referred to in the
second subparagraph of Article 2(4) of Regulation
(EC) No …/1999.

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.

In application of paragraph 1,

2.
the financial
contribution of the ERDF shall support, inter alia, the
following;

(a) the productive

environment,

competitiveness

to
increase
sustainable
investment by firms, especially the small and
medium-sized enterprises, and to make regions
more attractive, particularly by improving the
standard of their infrastructure;

in particular
and

(b) research and technological development with a
introduction of new
view to promoting the
technologies and innovation and the strengthening
of
development
capacities contributing to regional development;

technological

research

and

(c) the development of the information society;

(iii)improvement of access by enterprises to finance
and
developing
creating
appropriate financing instruments, as referred

loans,

and

by

(d) the

protection

the
environment, in particular taking account of the
principles of precaution and preventive action in

improvement

and

of

C 134/4

EN

Official Journal of the European Communities

14.5.1999

support of economic development, the clean and
efficient utilisation of energy and the development
of renewable energy sources;

the whole of

territory,
the Community’s
the European Spatial Development

of
including
Perspective;

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

(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;

(f) transnational,

interregional
cooperation on sustainable regional and local
development.

cross-border

and

Article 3

Community initiative

of

that

Regulation,

1.
Pursuant to Article 20 of Regulation (EC) No
…/1999, the ERDF shall, in accordance with Article
the
21
implementation of
for
interregional
cross-border,
cooperation intended to encourage the harmonious,
balanced and sustainable development of the whole of
the Community’s territory ((cid:28)Interreg’).

the Community initiative
and

transnational

contribute

to

2.
In accordance with Article 21(2) of Regulation
(EC) No …/1999, the scope laid down in paragraph 1
of this Article shall be extended by the decision on the
Funds’ contribution to the financing of measures
eligible under Regulations (EC) No …/1999 (1), (EC)
No …/1999 (2) and (EC) No …/1999 (3) with a view
to implementing all
in the
Community initiative programme concerned.

the measures set out

(c) exchanges of experience relating to innovation
with the aim of turning to account and transferring
experience
local
development field.

gained in the

regional or

2.
In accordance with Article 22(2) of Regulation
(EC) No …/1999, the scope laid down in paragraph 1
of this Article shall be extended by the decision on the
Fund’s contribution to the financing of measures
eligible under Regulations (EC) No …/1999, (EC) No
…/1999 and (EC) No …/1999 with a view to
implementing all the measures in the pilot project
concerned.

Article 5

Implementing rules

Any detailed implementing rules for this Regulation
shall be adopted by the Commission in accordance
with the procedure laid down in Article 48 of
Regulation (EC) No …/1999.

Article 6

Repeal

Article 4

Innovative measures

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

1.
In accordance with Article 22(1) of Regulation
(EC) No …/1999, the ERDF may also contribute to
financing:

(a) studies initiated by the Commission to identify and
problems
and
analyse
view to the
solutions,
harmonious, balanced and sustainable development

development
particularly with a

regional

References
construed as references to this Regulation.

to the

repealed Regulation shall be

Article 7

Review clause

(1) Council Regulation (EC) No …/1999 on the European

Social Fund (OJ L …).

(2) Council Regulation (EC) No …/1999 on support for
rural development by the European Guidance and
Gurantee Fund (EAGGF) (OJ L …).

(3) Council Regulation (EC) No …/1999 of … laying down
general provisions on the Structural Funds (OJ L …).

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.

14.5.1999

EN

Official Journal of the European Communities

C 134/5

Article 8

Transitional provisions

Article 9

Entry into force

The transitional provisions referred to in Article 52 of
Regulation (EC) No …/1999 shall apply mutatis
mutandis to this Regulation.

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

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

Done at … .

For the Council

The President

C 134/6

EN

Official Journal of the European Communities

14.5.1999

STATEMENT OF THE COUNCIL’S REASONS

I.

INTRODUCTION

1. On 20 March 1998 the Commission submitted to the Council a proposal, based on
for a Regulation on the European Regional

the EC Treaty,

Article 130c of
Development Fund.

The Economic and Social Committee and the Committee of the Regions delivered
their opinions on 10 September 1998 and 18 November 1998 respectively.

The European Parliament delivered its opinion, at first reading, on 19 November
1998.

Further to the European Parliament’s opinion,
amended proposal on 21 January 1999.

the Commission submitted an

2. On 13 April 1999 the Council adopted its Common Position in accordance with

Article 189c of the Treaty.

II. OBJECTIVE

The draft Regulation seeks to clarify the nature of the measures that can be financed
from the European Regional Development Fund.

III. ANALYSIS OF THE COMMON POSITION

1. General remarks

The Council’s Common Position is in keeping with the rationale behind the whole
of the reform of the Structural Funds. It is to be seen in the context of Regulation
(EC) No …/1999 laying down general provisions on the Structural Funds and is
confined to the specific rules of the ERDF, primarily with reference to its scope.

In the context of its tasks, the ERDF will have to continue to take part in four types
of financing: the financing of productive investment; the financing of infrastructure
investments differentiated according to type of region; support for endogenous
development; innovative measures and technical assistance measures.

The Common Position gives examples of areas in which the Fund is to provide
support: the productive environment; research and technological development; the
development of the information society; the protection and improvement of the
environment; equality between men and women in the field of employment;
cross-border, transnational and interregional cooperation on regional development.

Apart from a very small number of specific amendments, the Council’s Common
Position follows the Commission’s amended proposal in its entirety. The Council
thus accepted all the amendments arising from the European Parliament’s opinion
that were incorporated in the Commission’s amended proposal, i.e. amendments 3,
5, 7, 19, 21, 23, 25, 26, 35 and 58 and, in part, amendments 4, 11, 13, 34, 53 and
39.

14.5.1999

EN

Official Journal of the European Communities

C 134/7

The Council partially accepted two European Parliament amendments (11 and 15)
which had been rejected by the Commission.

The Council did not accept amendments 9, 10, 28, 29, 32, 33 and 37, which had
not been incorporated in the Commission’s amended proposal.

Amendments 2, 8, 12, 14, 16, 17, 18, 20, 22, 24, 27, 30, 31 and 36 were not
adopted either by the Commission or by the Council. The substance of these
amendments is already covered by other or more general formulations in the text of
the Common Position.

2. Analysis of the text

Preamble

The Council followed the Commission’s amended proposal almost entirely, which
means it adopted, if not the letter, then at least the substance of the following
European Parliament amendments:

— in recital 1: the substance of the last part of amendments 58 and 11,

— in recital 5 (new): amendment 5, slightly reworded;

— in recital 6: the substance, in a different formulation, of amendments 4 (second
part) and 30 (local economic development and employment) and amendments 3
and 23 (fields of culture and tourism and job creation),

— in recital 7: the substance of amendments 13, 16 and 19 with the more general

formulation (cid:28)new sources of employment’,

— in recital 9: the first part of amendment 58, formulated as (cid:28)the whole of the
Community territory’; amendments 53, 7 and 11 (Last part) in redrafted form.

Article 1 (tasks)

This text corresponds to the Commission’s amended proposal.

Article 2 (scope)

This Article corresponds almost entirely to the Commission’s amended proposal.

The Council adopted amendment 11 as regards (cid:28)the creation and maintenance of
sustainable jobs in the regions’ and amendment 21.

The spirit of amendments 25 and 26 was incorporated in paragraph 1(b)(ii) by
means of
the formulation concerning infrastructure (cid:28)which (…) concerns the
diversification of economic sites and industrial areas suffering from decline …’.

The European Parliament’s amendment 39 is incorporated in the new version of
paragraph 2(e).

C 134/8

EN

Official Journal of the European Communities

14.5.1999

The Council also adopted the following amendments not
Commission’s amended proposal:

included in the

— the part of amendment 11 concerning (cid:28)local development infrastructure’; for

reasons of consistency this was moved to Article 2(1)(c)(v),

— the part of amendment 15 concerning (cid:28)cooperation between research institutes
and enterprises’, reworded as (cid:28)common organisation between enterprises and
research establishments’.

Article 3

The Council followed the Commission’s amended proposal.

Article 4

The Council followed the Commission’s amended proposal.

It incorporated part of amendment 34 (the part which added (cid:28)and local’ to (cid:28)regional
development’) and amendment 35.

Article 5

The Council followed the Commission’s amended proposal.

Articles 6, 7, 8 and 9 correspond to the Commission proposal.