CELEX: 51978PC0171
Language: en
Date: 1978-04-18
Title: Amended proposai for a COUNCIL REGULATION (EEC) on a common measure to improve public facilities in certain rural areas (presented to the Council by the Commission pursuant to the second paragraph of Article 149 of the EEC Treaty)

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DE LA COMMISSION
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DOCUMENTS "COM"
COM (78) 171
Vol. 1978/0057
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 ---pagebreak---          COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                                                     COM(78)
                                                                                                     Bru :
                                                          Amended
                                                proposai for a
                               C^Tiyr*
                                *kj <_ i . V-». -y"
                                OUNCIL                   . v.Li■■<*n
                                                J.. r1 j f>–    \J L'TJLu.«v nTA^T
                                                         REGULATION          ^ J. L/i-» ^l' XTTrv-t
                                                                                            .EEC \))
                                                                                            IJL/J
                   on a common measure to improve public facilities
                               in certain rural areas
                   ^. presented to the Council by the Commission pur­
                      suant to the second paragraph of Article 149 of
                                                the ESC Treaty )
cc:.:(7° ) 1?1 final .
 ---pagebreak---                          - 1 -                         - VX/^2l /77-E Rev .
                     Amended proposal
         for Council Regulation ( EEC ) N°      /78
                     of
on a common measure     to improve public facilities in certain rural
areas *
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community , and in particular Article        thereof ,
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament ^",
Having regard to. the Opinion of the Economic and Social Committee '
Whereas , by virtue of Article 29 ( 2 ) ( a ) of the Treaty , the social
structure of agriculture and the structural and natural disparities
between agricultural regions must be taken into account in
determining the common agricultural- policy ;
Whereas , in order to attain the objectives of the common agricultural
policy set out in Article 39 ( l ) ( a ) and ( b ), special measures must
be taken , at Community level , to remedy the situation in those
agricultural areas where production conditions are particularly
difficult ;
Whereas certain Mediterranean regions of the Community are in a
particularly unfavourable situation owing to the absence of
electricity and potable water supplies and the inadequacy of the
farm road network ;
Whereas the less-favoured agricultural regions of Italy and southern
France and the whole of - the Mezzogiorno are lacking in these
 facilities ;
                                                                      •/ •
    OJ N° C
 2' OJ N° C
 ---pagebreak---                          - 2 -  .                      VI/^21/77-E Rev.
 Whereas structural changes and agricultural reforms in these
 regions cannot be effective unless      these facilities are improved ;
 Whereas the provision of electricity and potable water supplies         '
  and a proper farm road netvork should be encouraged by means of
  Community aid ;
  Whereas the projects must also , in order to qualify for Community
 ■financing , contribute to a lasting improvement in the public facilities
  available to agricultural holdings , have adequate economic
  justification and be coordinated with other measures for encouraging
  agriculture and with other measures for improving facilities ; whereas
  they must form part of outline programmes coordinating the various
  programmes and measures for the balanced development of agriculture
  and public facilities in the areas concerned ;
  Whereas criteria for aid from the Fund should be laid down ,
                          /                        i •
  enabling priority projects to be identified ;
  Whereas * to ensure coordination between action by the Community and
  by the Member State , the projects to be financed by the Fund
  should be approved and part-financed by the Member State concerned ;
  Whereas , to secure observance by the recipients of the conditions
  on which aid is granted from the Fund * aa effective control system
  should be set up and provision made for suspension T reduction or
  cancellation of aid from the Fund ;, ;                      v
. Whereas * in view of the special difficulties affecting these regions ,
  the Community should provide aid from the Fund in the form of a
  capital subsidy not exceeding 50% of the total investment ;
 ---pagebreak---                                                     VI/W21/77-E Rev.
Whereas the measures referred to above accordingly constitute a
common measure within the meaning of Article 6 of Council Regulation
( EEC ) N° 729/70 of 21 April 1970 on the financing of the common
agricultural policy^";
Whereas aid from the Fund totalling 125 million units of account
over five years ,should serve to improve the public facilities in
these regions ;                ^                1
Whereas a procedure for approval of the projects should be laid
down providing close cooperation between the Member States and the
Commission within the Standing Committee on Agricultural Structure ,
set up by Article 1 of the Council Decision of k December 1962 on
                                                              2
the coordination of policies on the structure of agriculture ;
whereas consultation of the Fund Committee referred to in
Article 11 of Regulation ( EEC ) N° 729/70 should also be provided for
1 OJ N° L 94 , 28.1». 1970 , p . 13
2 OJ N° 136 , 17.12.1962 , p. 2892/62 .
 ---pagebreak---                          - U -                         VI/ HH21/77-E Rev.
HAS ADOPTED THIS REGULATION :                                               •
Article 1            ■ '
1 . In order to improve agricultural production and working conditions
    in . certain rural areas , a common measure within the meaning of
    Article 6(1 ) of Council Regulation ( EEC ) N° 729/70 is hereby
    set up for the improvement of public facilities .                     *
2 . The common measure shall apply to                                ,
    - less-favoured areas within the meaning of Council Directive
      N° 75/268/EEC on mountain and hill farming and farming in
      certain less-favouredl'areas^" in Italy and in the regions of
      Midi Pyrenees , Languedoc , Provence-Cote d'Azur and Corsica and
      departments of Pyrenees Atlantiques , Ardeche and Drome in
       southern France ;
    - the other areas of the Mezzogiorno v/hich are not less-favoured
      areas within the meaning of Directive N° 75/268/EEC .
    The Commission may , in accordance with the provisions of Titles III
    and IV , make a financial contribution to the common measure from
    the Guidance Section of the European Agricultural Guidance and
    Garantee Fund , hereafter referred to as the ''Fund ", for projects
    included in the programmes described in Title I and which meet
    the conditions of Title II *                     '   ■   -
                                                                     • /.
1 OJ N° L 128 . 19.5.1975 , P. 1
 ---pagebreak---                        - 5 -                        VI/^2l/77-E Rev.
                                               . ]       :
                           TITLE I
                     Outline programmes          '
Article 2
The outline programmes for the improvement of public facilities
shall cover :
- the provision of electricity and potable water supplies to villages
   or parts of villages whose inhabitants are dependent principally
   on agriculture and to isolated farmsteads ;
- the construction and improvement of farm roads and local roads
   which are mainly used fot agriculture and forestry .
                                                 I
They shall be drawn up by the Member States .
Article 3
The following minimum particulars shall be given in the outline
programmes :
( a ) the measures planned and how it is expected the programme will
                                     '           *■        -i
      be financed ;
( b ) the provisions for coordination with other programmes or measures
      for the balanced development of agriculture and public facilities
      in the area covered by the programme and for giving priority to
      projects which are complementary to these programmes or measures ;
( c ) the limits of the area covered by the programme and the reasons
      for so defining it ;
                                                                 /.
 ---pagebreak---                            - 6 -                    I    VlA*t2l/77-E Rev.
( d ) the estimated time required to carry out the programme , which
       shall not normally 'he more than five years .
Article
1 . The outline programmes and any modifications to them shall be 6ent
     by the Member State to the Commission .
2 . The Member States shall supply any additional information of the
     kinds referred to in Article 3 that may be requested by the
     Commission in order to assess the programme *
                                                      I
Article 5
Commission approval of the outline programmes and any modifications
thereto shall be decided in accordance with the procedure laid down
in Article 16 .
                           TITLE II
                                          :        ri             i
                           Projects
Article 6                                              1
1 . For the purposes of this Regulation , " project " means any
     substantial public , semi-public or private investment project
                                                    η
     which corresponds , in whole or in part , to the description in
     Article 2 .
2 . Projects may embrace one or more of the actions indicated in
     Article 2 . They may be , implemented in all or part of an area
      covered by the outline Programme .
                                                      i          l
Article 7
      Projects must :
      ( a ) be included in the outline programme ;
      ( b ) contribute to a lasting improvement in the facilities available
            to agricultural holdings ;  .                      I
      ( c ) be shown to be economically sound ; •
                                                                      ./
 ---pagebreak---                           - 7 -                      VI/l»i*21/77-E Rev.
    ( d ) be coordinated with other measures for encouraging agriculture
          and for improving facilities .
                                                     v
                                                           I
                          TITLE III
              Procedure for the scrutiny of projects
Article 8
1 . Applications for aid from the Fund must be submitted through
    the Member State concerned .
                                                 I
2 « In order to qualify for aid from the Fund , projects must have
    been approved by the Member State on whose territory they are'
    to be carried out .
                                                                    ./
 ---pagebreak---                         ~ 8 ~                        VI/U21/77-E Rev.
3 . Applications for aid must be supported by proof that the project
    fulfils the conditions laid down in Title I.
4 . The information to be provided with applications and the form
    in which this is to be presented shall be laid down in accordance
    with the procedure laid down in Article 16 , after consultation
    with the Fund Committee on the financial aspects .
Article 9
1 . The Commission shall decide on the granting of aid from the
    Fund in accordance with the procedure laid down in Article 16 ,
    after consulting the Fund Committee on the financial aspects .
2 . The Member State and the recipient of aid shall be notified of
    the Commission 's decision .
Article 10
This Regulation shall not apply to projects for which Community aid
is being provided under other common measures within the meaning
of Article 6(1 ) of Regulation ( EEC ) N° 729/70 or through the
European Regional Development Fund .
                          TITLE IV
             Financial and général provisions
Article 11
1 . The period envisaged for carrying out the common measure is five
                                                 f •      ' :
    years from the date when this Regulation takes effect .
                                                          ' 1
2 . Before expiry of the period referred to in paragraph 1 , this
    Regulation shall be reviewed by the Council , acting on a
     proposal from the Commission .
 ---pagebreak---                             - 9 -                         ,   VI/4421/77-E Rev.
3 « The estimated total cost to the Fund of the common measure , for
      the period envisaged in paragraph 1 , shall be 125 million units
      of account , or an estimated cost of 25 million uriits of account
      per year .
k . Article 6 ( 5 ) of Regulation ( EEC ) N° 729/70 shall apply to this
      Regulation .
Article 12
                                y
1 . The aid from the Fund shall consist of capital subsidies granted
      in one or more instalments .                                       ~
2 . Of the total cost of the investment involved in each project :
      ( a ) -the financial contribution of 1 the beneficiary must be at
             least 109b ;         ,
      ( b ) the financial contribution of the Member State on whose
             territory the project is to be carried out must be at least
             20% \
      ( c ) the subsidy granted by the Fund shall not exceed 50/S .
Article 13
    1                                      ι                I        .
1 « Advances may be granted in accordance yith the rules on financing
      adopted by the Member State and the progress of the projects .
2 . Advances may not exceed 80# of the Community contribution to the
      cost of the project .
j5 . Detailed rules for the application of this Article shall be
      adopted in accordance with the procedure laid down in Article 13
      of Regulation ( EEC ) N° 729/70 .
                                         '              1
Article lh
1 . Natural or legal persons or groups   J :
                                              of such persons
                                                      ;
                                                                  on1 1 whom would
      in the last resort fall the cost of carrying out the project
      may qualify for a contribution from the Fund .
                                                                             ./
 ---pagebreak---                        - 10 -                         VIA421/77-E Sev .
    The aid from the Fund shall be paid by agencies designated for
    that purpose by' the Member State concerned .
2 . Throughout the period of application of this aid measure the
    authority or agency designated for the purpose by the Member State
    concerned shall send the Commission , on request", all supporting
    documents which may be needed to show that i the -financial or other
    conditions laid down for each project are fulfilled .      The
                                        1                          V    - •
    Commission may , if necessary , make inspection visits .
    After consulting the Fund Committee on the financial 1 aspects ,
                                          I
    the Commission may decide to suspend , reduce or cancel aid
    provided from the Fund , in accordance with the procedure laid
    clown in Article l6 :
               •'          ■ .        *          ■           /
    - if the project is Hot carried out as planned or
    - if some of the conditions laid down are not fulfilled or
    - if the beneficiary , contrary to the information contained in
       his application and set out in the decision to grant aid , has
       neither begun the work within two years from the date of
                                         .
       notification of that decision , nor furnished adequate assurances
                                           !
       before the end of the said period , that the project will be
       carried out .
    The decision shall be notified to the Member State concerned and
    to the beneficiary .
                                                  I
    The Commission shall take steps to recover monies the payment - of
    which was not , or has ceased to be , justified .
                                                    *
3 « Without prejudice to Article 6(5 ) of the Financial Regulation of
    25 April 1973 applicable to the General Budget of the European
    Communities^, as last amended by the Financial Regulation of
    21 December 1976 t the appropriations released either as the
    result of a decision taken in accordance with the second subparagra
    of paragraph 2 of this Article or through the beneficiary abandonin
 1 OJ N° L 116 , 1.5.1973 , p. 1
 2 OJ N° L 362 , 31.12.1976 , p. 52
 ---pagebreak---                              - il -                          VI/W21 /77-E Rc -/.
     the project or reducing the scale of the investment on which
     the aid decision was based , may be used to finance other projects .
*f . Appropriations which have been released in 'accordance vilh
     Article 22(3 ) of Council Regulation N * 17/&VEEC of 5 February 196
     on the conditions far granting aid from the European Agricultural
                                        1
     Guidance and Guarantee Fund , as Inst          end fid by Regulation ( EEC )
                 4
     N® 5171/75 » ana which were originally allocated to projects being
         carried out within the same geographical area as is covered by
     thi.s Regulation , and being of the kinds referred to in
     Article 11(1 ) ( a ) and ( b ) of Regulation N " 17/6^/EBC , may be used ,
     from . the 1978 financial year , to finance projects submitted pursue
     to this Regulation .                               '•
5 » Detailed rules for the application of this Article shall be adopts
     in accordance with the procedure laid down in Article 13 of
     Regulation ( EEC ) N° 729/70 .
Article 1 :? .
Applications submitted to ,,the Commission for aid for projects
which could not be granted for lacK of funds may , if the . applicants
so agree , be carried forward to the following , financial year by the
Member States concerned .             ,
Requests for carrying forward applications must be made to the
Commission within thirty days from the date oh which the Member State
was notified of the decision taken in accordance with the procedure
laid down in Article 16 .          An application for aid may , however , be
carried forward once only .                           '
Article 16
1,» Where the procedure laid down in this Article is to be followed ,
     the Chairman shall refer the matter to the Standing Committee on
                   '             :         •          I
     Agricultural Structure , either on his own initiative or at the •
      request of the representative of a Member $tate .
                                                                         ./.
 1 OJ N0 3^, 27 . 2 . 196*1 , p. 586/6U
 2 OJ N° L 315 . 5.12.1975 , P. 1
 ---pagebreak---                            - 12 - ' ,                        VI/^2l/77-E Rev.
  2 . The representative of the Commission shall submit a draft of
         y
      the measures to be adopted .      The Standing Committee on
      Agricultural Structure shall deliver its Opinion of the draft
      within a time limit set by the Chairman accprding to the urgency
      of the matter .     An Opinion shall be delivered by a majority of
      forty-orie votes , the Member States' votes being weighted as laid
      down in Article 1^8(2 ) of the Treaty . The Chairman shall not vote .
  3 . The Commission shall adopt measures which shall apply immediately .
                                  '   /
      However , if these measures are not in accordance with the Opinion
      of the Standing Committee on Agricultural Structure , they shall
      forthwith be communicated by the Commission to the Council :
                                  .                    i ■
      in that event , the Commission may defer application of the measures
      which it has adopted for not more than one month from the date of sue
      communication .
                                i                      f
      The Council , acting by a qualified majority , may take a different
      decision within one month .
  Article 17
  1 . The first decisions on aid pursuant to this Regulation shall be
      chargeable against the < 1978 financial year .       They shall relate to
      applications submitted between the date of entry into force of
      this Regulation and 1 July 1978 .
                 \
       With effect from the entry into force of this Regulation , Part II at
       Regulation N° lj/64/EEC , shall no longer apply in the areac referred to in
'      Article 11 ( l)(a) and (b) thereof for those. areas covered by this
       Regulation ,         .
  Article 18                                                     '
  This Regulation shall enter into force on the r third day following
  its publication in the Official Journal of the European Communities .