Proposal for a Council Regulation amending Regulation (EC) No 1260/1999 laying down general provisions on the Structural Funds
Date: 2000-11-29
Institutions: European Commission
Subjects: Canary Islands, French overseas department and region, Structural Funds, fishing industry, regions of Portugal

C 96 E/272

EN

Official Journal of the European Communities

27.3.2001

Proposal for a Council Regulation amending Regulation (EC) No 1260/1999 laying down general
provisions on the Structural Funds

(2001/C 96 E/19)

(Text with EEA relevance)

COM(2000) 774 final (cid:151) 2000/0306(AVC)

(Submitted by the Commission on 1 December 2000)

THE COUNCIL OF THE EUROPEAN UNION,

contribution of the Funds may not exceed 35 % of the total
eligible cost in the regions covered by Objective 1.

Having regard to the Treaty establishing the European
Community, and in particular Article 161 thereof,

Having regard to the proposal from the Commission,

Having regard to the assent of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

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

Whereas:

(1) Article 29(3)(a) of Council Regulation (EC) No 1260/1999
of 21 June 1999 laying down general provisions on the
Structural Funds (1) provides for the possibility of awarding
a contribution from the Funds of a maximum of 85 % of
the total eligible cost only for the outermost regions of a
Member State covered by the Cohesion Fund and for the
outlying Greek islands which are under a handicap due to
their distant location.

(2) Article 299(2) of the Treaty states that all the outermost
regions
face the same types of problem, particularly
remoteness and insularity, which may severely restrain
their development. Accordingly, Article 29(3)(a) of Regu-
lation (EC) No 1260/1999 should be amended so as to fix
the maximum contribution of the Funds at 85 % of the
total eligible cost for all the outermost regions, whether
of a Member State covered by the Cohesion Fund or not,
where this does not involve investments in infrastructure
projects generating substantial net revenue or investments
in firms.

(3) Article 29(4)(b) of Regulation (EC) No 1260/1999 lays
the

in the case of

down that,

investments

in firms,

for

(4) All the outermost regions are eligible for Objective 1 of the
Structural Funds
the period 1 January 2000 to
31 December 2006 in accordance with Commission
Decision 1999/502/EC of 1 July 1999 drawing up the list
of regions covered by Objective 1 of the Structural Funds
for the period 2000 to 2006 (2).

(5) An increase in the maximum rate of assistance from the
Structural Funds in the case of investment in small and
medium-sized firms
regions
would appear necessary in view of
the difficulties
encountered by these firms, in order to make a significant
contribution to the development of those regions.

situated in the outermost

(6) Article 29(4)(b) of Regulation (EC) No 1260/1999 should
therefore be amended so that, in the case of investments in
small and medium-sized firms situated in the outermost
regions, assistance from the Funds may amount to up to
50 % of the total eligible cost,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1260/1999 is hereby amended as follows:

1. Article 29(3)(a) is amended as follows:

(cid:145)a) a maximum of 75 % of the total eligible cost and, as a
general rule, at least 50 % of eligible public expenditure
in the case of measures carried out
in the regions
covered by Objective 1. The Community contribution
may rise, in exceptional and duly justified cases, to a
maximum of 80 % of the total eligible cost where the
regions are located in a Member State covered by the
Cohesion Fund and to a maximum of 85 % of the total
eligible cost for all the outermost regions and for the
outlying Greek islands which are under a handicap due
to their distant location;(cid:146)

(1) OJ L 161, 26.6.1999, p. 1.

(2) OJ L 194, 27.7.1999, p. 53.

27.3.2001

EN

Official Journal of the European Communities

C 96 E/273

2. The following point is added to Article 29(4)(b):

Article 2

(cid:145)ii) 50 % of the total eligible cost in the outermost regions
in the case of investments in small and medium-sized
firms;(cid:146)

Points (ii) and (iii) become (iii) and (iv) respectively.

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.