CELEX: 51988PC0205
Language: en
Date: 1988-05-06
Title: Amendment to the proposal for a COUNCIL REGULATION (EEC) instituting a Community programme to assist the conversion of shipbuilding areas (RENAVAL Programme) (Submitted by the Commission pursuant to Article 149, paragraph 3, of the EEC Treaty)

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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(88 ) 205 final
                                        Brussels , 6> May 1988
                            Amendment to the
                             proposai for a
                       COUNCIL REGULATION ( EEC )
           instituting a Community programme to assist the
                   conversion of shipbuilding areas
                         ( RENAVAL Programme )
       ( Submitted by the Commission pursuant to Article 149 ,
                    paragraph 3 , of the EEC Treaty )
 ---pagebreak---                                  - 2 -
Explanatory Memorandum
On 7 August 1987 , the Commission submitted to the Council , as part of its
second communication on " Shipbuilding-industrial , social and regional
aspects " ( 1 ) a proposal for a Regulation instituting a Community programme
( RENAVAL ) as defined in article 7 of the Regulation on the European Regional
Development Fund ( 2 ).
As the Commission formally adopted on 23 March its proposal concerning cri ¬
teria for the selection of areas under objective No 2 ( 3 ), it appears necessary
to amend the proposed RENAVAL Regulation so as to ensure the required coherence
with the proposal for a Regulation concerning the reform of the structural
funds , in particular with article 9 thereof . Thus the areas which can benefit
under the RENAVAL programme are those in which substantial job losses occur
in shipbuilding , and which either result in a serious aggravation of unemployment
or occur in industrial areasalready in decline .
The present amendments are intended to meet this requirement . They also include
consequential amendments to the financial statement .
( 1 ) C0M ( 87 ) 275 final / 2 of 10.12.1987
( 2 ) Reg . ( EEC ) No 1787 / 84 , O.J. No L 169 of 28.6.1984
( 3 ) COM ( 88 ) 144 final of 23.3.1988
 ---pagebreak---                                                3
    Amendments to the Proposal for a Council Regulation ( EEC ? instituting a
    Community programme_to_assist_the_conversion of_shipbuilding areas
    ( RENAVAL Programme ) ( submitted pursuant to Article 149(3 ) of the EEC Treaty )
1 . The final recital of the proposed RENAVAL Regulation shall read as
    follows :
   "whereas in view of the coming reform of the structural funds under
    Article 130 D of the            Treaty , the choice of regions in the present
    Community programme as well as the criteria on which this choice is based
    should be consistent with the approach followed in the above-mentioned
    reform , "
2 . Article 3 is replaced by the following :
                                         " Article 3
    1 (a ) The Community programme shall concern the following areas :
            - areas which have experienced substantial job              losses in
               shipbuilding over the last three years ;
            - areas threatened with substantial losses under a restructuring
               plan for the shipbuilding sector ;
            with those losses resulting in a serious aggravation of unemployment .
       (b ) The Community programme shall also concern areas satisfying all the
            following criteria :
            - the average rate of unemployment must hâve been at least 15% above
               the recorded Community average in the last three years ;
            - the percentage share of industrial employment in total employment
               must have exceeded the Community average in any of the last ten
               reference years ;
            - there must have been an observable fall in industrial employment
               compared with the reference year chosen in accordance with the
               preceding indent ;
            provided that they also satisfy the criteria stated in the two
            indents in (a ) above .
       (c ) The areas shall correspond or belong to a NUTS level III territorial
        unit ;    the Community programme may be extended to adjoining areas
        satisfying the criteria stated in (a ) or(b ) above .
 ---pagebreak---                                                 A
    2 . The Community programme shall apply , subject to a decision by the
         Commission , to the areas referred to in paragraph 1 . The Commission
         shall take its decision within three months of the date on which the
         Member State concerned submits an application in respect of the areas
         which may qualify under the Community programme . Applications shall be
         sent to the Commission by 30 April 1990 and shall be supported by the
         requisite information , notably concerning job losses in shipbuilding ;
         such information shall be consistent with that provided in the annual
         reports on the attainment of the restructuring objectives which Member
         States are required to transmit to the Commission pursuant to Article
         11 of Directive 87/ 167 /EEC .
    3 . As soon as this Regulation has entered into force , the Community
         programme shall also apply to the areas in Spain and Portugal in which
         major job losses in shipbuilding have occurred in the years preceding
         the period used in paragraph 1 , namely :
         - the Murcia Région in Spain ;
         - The Setübal area in Portugal ."
3 . Article 7 is replaced by the following :
                                         " Article 7
    1 . The operational programme drawn up by the competent authorities in the
         Member State concerned shall be sent to the Commission :
       ( a ) for the areas referred to in Article 3 ( 3 )^, within 6
             months of the entry into force of this Regulation ;
        (b ) for the areas referred to in Article 3 ( 2 ), in the period
             between the date on which the Member State submits the application
             concerning areas which may qualify under the Community programme
             and a date which is not later than six months from the date of the
             Commission decision to be adopted pursuant to the said paragraph 2 .
             Where the Commission 's decision relates to an area already referred
             to in Article 3 ( 3 ). or which has already been the subject
             of a Commission decision pursuant to Article 3(2 ), the •
             existing operational programme shall be adapted accordingly .
    2 . The duration of the operational programme may not extend beyond 31
         December 1993 . "
 ---pagebreak---                                    5
                           RENAVAL PROGRAMME
                 Amendments to the financial statement
Point 4 , second indent :
The first sentence shall read as follows :
" Based on article 3 , paragraph 2 , application of the measures is
dependent on the losses which have occurred since 1st January 1984 at
the earliest or which have been communicated in a restructuring plan".
Point 5 shall read as follows :
"Total forecast Fund aid is estimated at 11 million ECU for the areas
referred to in article 3 , paragraph 3 and provisionally at 189 million
ECU for the areas referred to in article 3 , paragraph 2 , giving a total
of 200 million ECU . This provisional amount is concentrated on the
initial three years of the programme 's life . The amount of aid for the
areas referred to in article 3 , paragraph 2 is calculated on the basis
of 3.200 ECU for every job lost in shipbuilding".
Points 6 to 9 shall be amended as shown in the following annexe .
 ---pagebreak---                                       - 6 -
6. Expected cost related to article 3 paragraph 3 of The Community
       programme ( concerning the area in Spain )
(a)     Indicative breakdown of the allocation , by operation :
 Article A of
  Regulation 2617 / 80 ,                Operation                     million ECU
  as amended
          4(1 )               Site improvement                   )
          4(2 )               Productive infrastructure          )                  -
          4(3 )               Management and organization of     )
                              SMEs , business advisory services )
          4(4 )               Common services                    )          -
          4(5 )               Promotion of innovation            )
          4(6 )               Access to risk capital             )
          4(7 )               Sectoral analyses                  )
          4(8 )               Investment in SMEs                 )
                                                                            :
                              Total                                         2
( b)    Indicative schedule for commitment appropriations
  Year          1988     1989         1990        1991      1992   1993       T ota 1
  mi l li on      1        1             0         -         -
                                                                    -
                                                                                 2
  ECU
(c)     Payment appropriations
Article 30(2 ) of the Fond Régulation should make it possible each year to make
payments not exceeding 80X of commitments , the balance being settled at a
later date .
 ---pagebreak---                                            - 7 -
71    Expected cost relating to article 3 paragraph '3 of the Community programme
       ( concerning the area in Portugal )
(à)     Indicative breakdown of the allocation , by operation :
  Article 4 of
  Regulation 2617 / 80 ,                 Operation                         million ECU
  as amended
          4(1 )                Site improvement                      )           5
          4(2 )                Productive infrastructure             )
          4(3 )                Management and organization of        )
                               SMEs , business advisory services     )
          4(4 )                Common services                       )           2
          4(5 )                Promotion of innovation               )
          4(6 )                Access to risk capital                )
          4(7 )                Sectoral analyses                     )
          4(8 )                Investment in SMEs                    )           2
                               Total                                             9
L__
 ( b)    Indicative schedule for commitment appropriations
      ar        l9dS      19G9         1990         1991        1992    1993       Total
   million       3         3             3            -           -
                                                                         -
                                                                                     9
   ECU
 (c)     Payment appropriations
Article 30(2 ) of the Fund Regulation should make it possible each year to make
payments not exceeding 80X of          commitments ,    the balance being settled at a
 later date .
 ---pagebreak---                                         - 8 -
8.   Expected cost relating to article 3 paragraph 2 of' the Community
     programme ( that may concern areas throughout the Community )
(a)   Indicative breakdown of the allocation , by operation :
 Article 4 of
 Regulation 2617 / 80 ,                 Operat ion                       million ECU
 as amended
        4(1 )                 Site improvement                                  •
        4(2 )                 Productive infrastructure                         •
        4(3 )                 Management and organization of                    •
                              SMEs , business advisory services
        4(4 )                 Common services                                   •
        4(5 )                 Promotion of innovation                           •
        4(6 )                 Access to risk capital                            •
        4(7 )                 Sectoral analyses                                 •
        4(8 )                 Investment in SMEs                                •
                              Total                                          189
Cb )   Indicative schedule for commitment appropriations
 Year         1988      T9Ì59         1990                    1992     1993       Total
 million       16        96            77           :           :         :        189
 ECU
Ce )   Payment appropriations
Article 30(2 ) of the Fund Régulation should make it possible each year to make
payments not exceeding 80% of commitments ,           the balance being settled at a
later date .
 ---pagebreak---                                          - 9 -
9.    Expected total amount of Community participation
( a)   Indicative breakdown of the total allocation, by operation :
  Article 4 of
  Regulation 2617 /80 ,                 Operation                    million ECU
  as amended
        4(1 )                Site improvement                              •
        4(2 )                Productive infrastructure                     •
        4(3 )                Management and organization of
                             SMEs , business advisory services
        4(4 )                Common services
        4(5 )                Promotion of innovation
        4(6 )                Access to risk capital
        4(7 )                Sectoral analyses                             •
        4(8 )                Investment in SMEs                            :
                             Total                                        200
( bî   Indicative schedule for commitment appropriations
  Year        1988      1989         1 990        1991     1992  1993        Total
  mi Ilion     20        100          80                     •
                                                                    ■
                                                                              200
  ECU
 (c)   Payment appropriations
Article 30(2 ) of the Fund Régulation should make it possible each year to make
payments not exceeding 80% of commit ment s , the balance being settled at a
 later date .