Regulation (EC) No 1261/1999 of the European Parliament and of the Council of 21 June 1999 on the European Regional Development Fund
Date: 1999-06-21
Institutions: Council of the European Union, European Parliament
Subjects: European Regional Development Fund, economic and social cohesion, economic conversion, regional aid, regional development, regional disparity

26.6.1999

EN

Official Journal of the European Communities

L 161/43

REGULATION (EC) No 1261/1999 OF THE EUROPEAN PARLIAMENT AND OF
THE COUNCIL

of 21 June 1999

on the European Regional Development Fund

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF
THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 162 thereof,

regard
Having
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 251 of the Treaty (4),

(1) Whereas Article 160 of the Treaty provides that
the European Regional Development Fund
(ERDF)
is intented to help redress the main
regional 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-
favoured regions and islands,
including rural
areas, are lagging behind;

(2) Whereas Article 2(2) of Council Regulation (EC)
No 1260/1999 laying down general provisions
on the Structural Funds (5) provides that
the
main task of the ERDF is to contribute to the
attainment of Objectives 1 and 2, as referred to
in Article 1, first subparagraph, points 1 and 2

(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 (OJ C 134, 14.5.1999, p. 1) and European
Parliament Decision of 6 May 1999 (not yet published in
the Official Journal).

(5) See page 1 of this Official Journal.

to

financing

contribute

(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 is
to
cross-border,
transnational and interregional cooperation as
well as to economic and social regeneration of
cities and urban neighbourhoods in crisis under
the Community initiatives; whereas Articles 22
and 23 of the Regulation in question state that it
is to support innovative measures at Community
level and technical assistance measures;

(3) Whereas

the

common

provisions

the
Structural Funds are set out in Regulation (EC)
No 1260/1999; whereass the type of measures
which may be financed by the ERDF under
Objectives 1 and 2, the Community initiatives
and innovative measures should be defined;

to

its

(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
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;

(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 of
and trans-
local,
European networks including the provision of
suitable access to the said networks in the sectors
of transport infrastructure, telecommunications

culture and tourism where

regional

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Official Journal of the European Communities

26.6.1999

into

account

environment

and energy; the protection and improvement of
the
the
taking
principles of precaution and 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 and efficient utilisation of energy and
the development of renewable energy sources;
and equality between women and men in the
field of employment;

(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

(9) Whereas measures

it

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 1260/1999, whereas, to that end, in view of
the value it adds at Community level,
is
important that the ERDF continues to promote
cross-border,
transnational and inter-regional
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 outermost regions,
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, including in
connection with spatial planning, adds value to
action to promote economic and social cohesion;
whereas the contribution of the ERDF to that
development should be continued and increased;
whereas moreover it is desirable to support the
economic and social regeneration of cities and
urban neighbourhoods in crisis with a view to
promoting sustainable urban development;

in view of

(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,

HAVE ADOPTED THIS REGULATION:

Article 1

Tasks

the

1260/1999,

Pursuant to Article 160 of the Treaty and Regulation
(EC) No
European Regional
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.

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

Article 2

Scope

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

1.
ERDF shall contribute towards the financing of:

(a) productive investment
sustainable jobs;

to create and safeguard

(b)

investment in infrastructure:

(i) which,

structural

in regions covered by Objective 1,
to increase the economic potential,
helps
development,
and
creation or maintenance of sustainable jobs
in
in those regions,
the
infrastructure
to
establishment and development of
trans-
European networks in the areas of transport,

including investment

contributing

adjustment

(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).

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Official Journal of the European Communities

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and

telecommunications
energy
infrastructures taking into account the need
to link to the
the
central
Community
from a
structural handicap because of their insular,
landlocked or peripheral status;

regions of

suffering

regions

of

economic

1260/1999;

concerns
sites

(ii) which, in regions and areas by Objectives 1
and 2 or the Community initiatives referred
to in Article 20(1)(a) and (b) of Regulation
the
(EC) No
diversification
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;
where
instruments
a
is
modernisation
prerequisite for the creation or development
of job-creating economic activities, including
infrastructure
the
which
links
development of such activities depends;

infrastructure
regeneration

on

or

in

(c)

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

(i)

assistance towards services for enterprises, in
particular
fields of management,
market
studies and research and services
common to several enterprises;

in the

(ii)

of

the

financing
technology,
transfer
including in particular the collection and
dissemination
common
organisation between enterprises and research
establishments
the
and
implementation of innovation in enterprises;

information,

financing

of

(iii) improvement of access by enterprises

to
finance and loans, by creating and developing
appropriate financing instruments, as referred
to in Article 28 of Regulation (EC) No 1260/
1999;

(iv) direct aid to investment as definied in
Article 28(3) of Regulation (EC) No 1260/
1999 where no aid scheme exists;

(vi) aid for structures providing neighbourhood
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 1260/1999.

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 region’s
structural adjustment.

In application of paragraph 1,

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

(a)

(b)

competitiveness

to
the productive environment,
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

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

technological

research

and

(c)

the development of the information society;

(d)

(e)

(f)

of

development

the
investment,
and natural heritage, provided that
creating sustainable jobs;

cultural
including the protection of cultural
they are

tourism and

and

protection

improvement

the
the
environment, in particular taking account of the
principles of precaution and preventative action in
support of economic development, the clean and
efficient utilisation of energy and the development
of renewable energy sources;

of

employment,

equality between women and men in the field
of
the
establishment of firms and through infrastructure
or services enabling the reconciliation of family
and working life;

principally

through

(v)

the provision of
appropriate
to
development;

infrastructure on a scale
employment
local

and

(g)

transnational,
and inter-regional
cooperation on sustainable regional and local
development.

cross-border

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Official Journal of the European Communities

26.6.1999

Article 3

Community initiative

(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;

Pursuant

1.
to Article 20 of Regulation (EC)
No 1260/1999, the ERDF shall, in accordance with
that Regulation, contribute to the
Article 21 of
implementation of the Community initiative for cross-
border,
transnational and inter-regional cooperation
intended to encourage the harmonious, balanced and
sustainable
the
Community’s territory ((cid:28)Interreg’) as well as to the
implementation of
for
economic and social regeneration of cities and urban
neighbourhoods in crisis with a view to promoting
sustainable urban development ((cid:28)URBAN’).

the Community initiative

development

the whole

of

of

scope

In accordance with Article 21(2) of Regulation
2.
(EC) No 1260/1999,
laid down in
the
paragraph 1 of this Article shall be extended by the
decision on the Funds’ contribution to the financing of
measures
(EC)
No 1262/1999 (1), (EC) No 1257/1999 (2) and (EC)
No 1263/1999 (3) with a view to implementing all the
measures
initiative
programme concerned.

in the Community

eligible pursuant

to Regulations

set out

Article 4

Innovative measures

1.
In accordance with Article 22(1) of Regulation
(EC) No 1261/1999, the ERDF may also contribute to
financing:

(a)

studies initiated by the Commission to identify
and analyse regional development problems and
view to the
solutions, particularly with a
harmonious,
sustainable
and
development of the whole of the Community’s
Spatial
the
territory,
Development Perspective;

European

including

balanced

(1) Regulation (EC) No 1262/1999 of

the European
Parliament and of the Council of 21 June 1999 on the
this Official
European Social Fund (see page 48 of
Journal).

(2) Council Regulation (EC) No 1257/1999 of 17 May 1999
on support
rural development by the European
Guidance and Guarantee Fund (EAGGF) which amends
and repeals certain Regulations (OJ L 160, 26.6.1999, p.
80).

for

(3) Council Regulation (EC) No 1263/ 1999 of 21 June 1999
laying down general provisions on the Structural Funds
in the fishery sector (see page 54 of this Official Journal).

(c) exchanges of experience relating to innovation
with the
and
turning
transferring experience gained in the regional or
local development field.

to account

aim of

scope

In accordance with Article 22(2) of Regulation
2.
laid down in
the
(EC) No 1260/1999,
paragraph 1 of this Article shall be extended by the
decision on the Funds’ contribution to the financing of
measures
(EC)
No 1262/1999,
(EC) No 1257/1999 and (EC)
No 1263/1999 with a view to implementing all the
measures in the pilot project concerned.

eligible pursuant

to Regulations

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 1260/1999.

Article 6

Repeal

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

References
construed as references to this Regulation.

to the

repealed Regulation shall be

Article 7

Review clause

On a proposal from the Commission, the European
Parliament
review this
Regulation by 31 December 2006.

and the Council

shall

They shall act on this proposal in accordance with the
procedure laid down in Article 162 of the Treaty.

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Article 8

Transitional provisions

Article 9

Entry into force

The transitional provisions referred to in Article 52 of
Regulation (EC) No 1260/1999 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 Luxembourg, 21 June 1999.

For the European Parliament

The President

J. M. GIL-ROBLES

For the Council

The President

G. VERHEUGEN