CELEX: 51980PC0528
Language: en
Date: 1980-09-16
Title: PROPOSALS FOR A COUNCIL REGULATION (EEC) - instituting a specific Community Regional Development Measure contributing to the development of certain French and Italian regions in the context of Community enlargement; - instituting a specific Community Regional Development Measure contributing to overcoming constraints on the development of new economic activities in certain zones adversely affected by restructuring of the shipbuilding industry; - instituting a specific Community Regional Development Measure, contributing to overcoming constraints on the development of new economic activities in certain zones adversely affected by restructuring of the steel industry; - instituting a specific Community Regional Development Measure contributing to improving security of energy supply in certain Community regions by way of improved use of new techniques for hydro-electrical power and alternative energy sources; - instituting a Special Community Regional Development Measure contributing to the improvement of the economic and social situation of the border areas of Ireland and Northern IreIand. (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 528
Vol. 1980/0173
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(80 ) 528 final
                                                       Brussels , 16th September 1980
                 PROPOSALS FOR A COUNCIL REGULATION ( EEC )
- instituting a specific Community Regional Development Measure contributing
  to the development of certain French and Italian regions in the context of
  Community enlargement ;
- instituting a specific Community Regional Development Measure contributing
  to overcoming constraints on the development of new economic activities in
  certain zones adversely affected by restructuring of the shipbuilding in­
  dustry;
- instituting a specific Community Regional Development Measure , contribu­
  ting to overcoming constraints on the development of new economic activi­
  ties in certain zones adversely affected by restructuring of the steel
  industry ;
- instituting a specific Community Regional Development Measure contributing
  to improving security of energy supply in certain Community regions by way
  of improved use of new techniques for hydro-electrical power and alternative
  energy sources ;           ^r:
                     Special Community Régi
- instituting a Special'                      Regional Development Measure contributing
  to the improvement- of the economic and social situation of the border areas
  of Ireland and Northern
                   Northern^ Ireland
                                 I re I and .    .
                   I Ti       ,       V            ri
                   V^,.             .      >
                        ;                  *     SY
                 (presented by the Commission to the             Council )
                               .  . .    .
C0MC80 ) 528 final
 ---pagebreak---                      Proposal for a
                  COUNCIL REGULATION
       instituting a specific Community Regional Development
       Measure contributing to the development of certain French
       and Italian regions in the context of Community enlargement
THE COUNCIL OP THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) No 724/75 of 18 March 1975 ( l )
establishing a European Regional Development Fund as amended by Cour.cil
Regulation (EEC ) No 214/79 of 6 February 1979 (2 ) and particularly
Article 13 ( 3 ),
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Parliament ( 3 ),
Having regard to the Opinion of the Economic and Social Committee ( 4),
Whereas Article 13 of Regulation No 724/75 (hereinafter referred to as
"the Fund Regulation") provided , independently of the national allocations
of resources fixed by Article 2 ( 3) a) of the Fund Regulation, for parti­
cipation of the Fund in financing specific Community regional development
measures , which are particularly linked with Community policies and with
measures adopted by the Community in order to take better account of their
regional dimension or to reduce their regional consequences j
Whereas the Member States concerned have provided the Commission with
information on regional problems likely to be the subject of a specific
Community measure :
€11 OJ No L 73 , 21.3.1975
( 2 ) OJ No L 35, 9-2.1979
( 3 ) OJ No C 85, 8.4.19BO
( 4) OJ No C 83, 2.4.1980
 ---pagebreak--- Whereas the Fund 's resources are allocated having due regard to the
relative severity of regional imbalances within the Community ;
Whereas the treaty of accession    with Greece was signed on 28 May 1979 and
whereas it is planned that this    country will become a Member of the Community
as ftom 1 January 1981 ; whereas   negotiations on accession started with
Portugal and Spain respectively    on 17 October 1978 and 5 February 1979 >
Whereas the southern regions of the Community could be affected by
its enlargement , particularly because of increased competition in markets
for certain agricultural products and because of problems involved in
adapting their economic fabric j
Whereas among these regions , the Mezzogiorno and the tlree French regions
adjacent to Spain have an exceptionally high rate of employment in agri­
culture , with substantial dependence on Mediterranean agricultural pro­
duction, and are otherwise characterised by weakness of their industrial
fabric , ty a high level of unemployment and a low level of activity ;
Whereas it is in the Community 's interest that the enlargement process
should take place harmoniously ; and it is therefore necessary, even before
the accessions become effective , to undertake vigorous structural measures
in order that these regions may be able to adapt to enlargement ; and it is
appropriate that the Community should make a special contribution to
measures to be undertaken to this end by the Member States concerned by
instituting a specific Community regional development measure on behalf
of these regions ;
Whereas measures have already been taken in the field of the common agri­
cultural policy/ and other assistance from Community Funds ; capable of being
usefully combined / must be carried out in these regions ;
Whereas small and medium-sized undertakings (hereinafter referred to as
"SMD") and craft industry occupy an important place in the industrial fabric
of these regions , and thus it is desirable to increase employment by dovelop-
ping such enterprises , particularly in allowing them to adapt better their
production to market needs and to improve their management ;
 ---pagebreak--- Whereas the weakness of communication infrastructure in certain of these regions
is an impediment to adaptation of such enterprises ;
Whereas the introduction of new technological products and processes can contri­
bute to the creation and development of viable economic activities in these regions
and that SMU encounter difficulties in undertaking innovation ;
Whereas these regions have a potential for rural tourism and the promotion and
coordinated management of this type of tourism can have an impact on jobs and
income for the populations concerned ;
Whereas the Community measure must be implemented in the form of special multi-
annual programmes , whereas it is for the Commission , in adopting these programmes ,
to ensure that the operations planned therunder comply with the provisions of
this Regulation ;
Whereas the Commission must verify that the special programmes are properly
carried out by examining the annual reports which the Member States concerned
will present to it for this purpose ;
Wherees the special programmes must respond to certain of the objectives
encompassed by the regional development programmes provided for under Article 6
 ( 3 ) of the Fund Regulation ;.
                                                      /
Whereas the Council , the European Parliament and the Economic and Social Committee
must be informed regularly on the implementation of this Regulation ;
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                      1   Article 1
A specific Community regional development measure (hereinafter referred
to as "the specific measure") in the sense of Article 13 of the Fund
Regulation, is hereby established contributing to the development of
certain French and Italian regions within the context of Community
enlargement .
                          Article 2
The specific measure shall be applicable to the regions of the Midi-
Pyrenees , Aquitaine and Languedoc-Roussillon in Prance and to the
regions of the Mezzogiorno in Italy .
 ---pagebreak---                           Article 3
The specific measure shall "be implemented in the form of a special pro­
gramme (hereinafter referred to as "the special programme") to "be presented
to the Commission by each of the Member States concerned .
The objective of the special programme shall "be to           reinforce eco­
nomic structures and to create employment in the regions specified in
Article 2 . To this end , it shall aim at developing small and medium-sized under
takings ( SMU) and craft industries , particularly "by facilitating their access to
markets , on the "basis of market analyses , by adapting and developing both
their production facilities and their surrounding infrastructures , and by
improving their management . It shall also have the aim of promoting inno­
vation and boosting the potential for tourism .
The special programme must fall within the framework of the regional
development programmes mentioned in Article 6 ( 3) and (4) of the Pond
Regulation .
The special programma must contain                      appropriate infor-
mation , as specified in the Annex to this Regulation, analysing the
situation and needs related to the aims stated in paragraph 1 , the
operations proposed, the implementation plan, and, in general , all factors
necessary to enable its consistency with regional development objectives
to be assessed .
 The duration of the special programme shall be 5 years starting from the
 sixtieth day after the date on which this Regulation enters into force .
The special programme shall be approved by the Commission after intervention
by the Fund Committee in accordance with the procedure laid down in Article 16
 of the Fund Regulation .
 The Commission shall inform the European Parliament of the amounts adopted
 for the regions when the special programme is approved .
Once it has been approved by the Commission, the special programme shall be
 published for information in the Official Journal of the European Communities .
 ---pagebreak---                               - 6 -
                           Article 4
The Fund may participate , within the framework of the special programme ,
in the following operations :
1 . Making available to SMU means and services allowing them to enlarge
     their potential activities .
     a) Preparation of sectoral analyses intended to provide SMU with
          information on the potential of national . Community and external
          markets and on the effects to be anticipated therefrom on the
          production and organization of SMU .
                       \       .                 .
   ' b ) Aids to investments in SMU designed to assist the adaptation of
          their production to market potential when justified "by the
          above-mentioned analyses or other market studies . Such invest­
          ments may also concern common services provided for a number
          of undertakings .                        ,
     c ) Establishment or promotion of consultancy firms or other bodies
          for management and organization matters by means of direct or
          indirect aid . Activities of such firms or bodies may include tem­
          porary assistance to undertakings for implementing their recom­
          mendations .
     d) Establishment or promotion of common services for a number of
          undertakings .
     e ) Provision or improvement of communications inf rastructure , bet
          ween undertakings and their economic environment , especially road
          access and the improvement of telecommunications and informatics
          networks ; the provision or improvement of common services infra­
           structure .
      f ) Organization of information seminars designed to enable SMU manage­
           ment to adapt better to changes in production methods .
      g) Better access for SMU to risk capital .
 ---pagebreak--- Promotion of innovation in industry and services :
                                       ι
a ) Collection of information relating to product and technological
    innovation and its dissemination among undertakings operating in
    the regions covered by the specific measure , which may include
    experimental work on such innovation .
b ) Encouragement of the implementation of product and technology
    innovation in SMU .
Promotion of craft industries :
In addition to the operations provided for in paragraph 1 from
which craft industries may benefit , the following operations may
receive assistance from the Fund :                   v . '    .
                 ¥
a ) Improvement of technical and economic information for craftworkers ,
    in particular "by introducing technical assistance officers
b ) Upgrading of craft industries : researching into techniques ,
    disseminating and adapting them, including innovations and
    improving sales conditions .
Promotion of rural tourism :
a) Construction or conversion of small hotels , preparation of farm
    holiday accommodation / camping and caravanning sites .
b ) Establishment and development of joint services or bodies respon­
    sible for prQmotion, publicity, stimulating tourist interest and
    co-ordinated management of tourist accomodation and facilities ,
    including the organization of information seminars for the staff
    concerned .
    In the case of regions on whose territory the level of tourist acti­
    vity is unbalanced in favour of coastal zones , these bodies may
    also be responsible for measures to redress the balance , including
    studies of appropriate tourist itineraries . They may also have the
    task of organizing children 's holiday centres and open-air school
    classes .
 ---pagebreak---                              - .8 -
c ) Provision of facilities and. infrastructure directly linked to the
    development of tourism, including recreational activities and cultural
    activities .
d.) In the regions covered by point (h), second paragraph , development of
    transport undertakings enabling tourists staying on the coast to have
    easier access to inland tourist zones and also to provide transport
    to children f s holiday centres and open-air school classes .
                          /
 ---pagebreak---                            Article 5
The special programme shall be the subject of joint financing between the
Member State and the Community .   The contributions from the Fund shall be
provided within the framework of the appropriations entered for this purpose
in the general budget of the European Communities .     The Community contribution
shall be :
a) For SMU :
   - operations relating to sectoral analyses under Article 4 ( 1 ) a ) :
      70 % of the total expenditure ;
   - operations relating to investments under Article 4 ( 1 ) b ) : 50 % of the
      public expenditure resulting from the granting of aid to the investment /
      but not more than 30 % of the cost of the investment .    Public aid may
      take the form of a capital grant or an interest rebate .    The Community
      aid may be supplementary to the existing aid system ;
   - operations relating to consultancy services under Article 4 ( 1 ) c ) : aid
      covering part of the expenditure of undertakings relating to services
     provided by consultancy firms or bodies .     The aid shall last for three
      years and shall be degressive .  It shall cover 70 % of expenditure in
      the first year and shall not exceed 55 % of average annual expenditure
      over the three year period ( indirect aid );
   - in respect of such operations / the Member State may replace this system
      by an equivalent system of aid to consultancy firms or bodies ( direct aid )
   - operations relating to common services under Article 4 ( 1 ) d ) : aid
      covering part of the expenditure of undertakings relating to the operation
      of these services .  The aid shall last for three years and shall be
      degressive . It shall cover 70 % of expenditure in the first year and
      shall not exceed 50 % of average annual expenditure over the three year
      period ;
   - operations relating to infrastructure under Article 4 ( 1 ) e ) : 50 % of
      public expenditure ;
   - operations relating to information seminars under Article 4 ( 1 ) f )
      70 % of the organization costs ;
 ---pagebreak---                             - 10 -
    - operations relating to risk capital under Article 4 (l ) g) *
       contribution to the operating costs of the financial institutions
       providing risk capital for SMU . The contribution shall "be 70 $ of
       the cost of the risk evaluation studies carried out by or on
       behalf of these financial institutions .
b ) For innovation :
    - operations concerning collection and dissemination of information on
       innovation under Article 4 (2 ) a ) : aid covering part of operating
       costs of bodies engaged in such activities , provided that these acti­
       vities are new and concern specifically the regions covered by Article
       2 . The aid shall last for three years and be degressive . It will
       cover 70 % of the operating costs in the first year and will not exceed
       55 % of the average annual expenditure - over the three year period .
    - operations for implementing innovation under Article 4 ( 2 ) b ) : 70 %
       of the cost of feasibility studies that may concern all aspects , in-
     1 eluding commercial , of the implementation of innovation , and limited
       to 50.000 EUA per study . These studies must be undertaken by or on
       behalf of enterprises isituated in the regions covered by Article 2 .
c ) For artisan activities :
    - for operations under Article 4 ( l ) for which craft enterprises may
       qualify the provisions of paragraph 1 (a) above shall applyj
    - operations under Article 4 (3) a) and 4 ( 3) b ) : 70 f° of public
       expenditure .
d ) For rural tourism :
    - operations relating to accomodation under Article 4 ( 4) a) : where
       the investment is linked to agricultural activity, 50 f° of public
       expenditure resulting from the granting of aid to the investment ; in .
       other cases , 50 $ of public expenditure resulting from the granting
       of aid to the investment , but no more than 30 fo of the cost of the
       investments
 ---pagebreak---         operations for promotion of tourism under Article 4 (4 ) b) : aid
        covering part of the operating costs of common services or bodies .
        These operating costs may include the cost of publicity campaigns and
        studies of tourist circuits . This aid shall last for three years and
       be degressive . It shall cover 70 % of the operating costs in the
       first year and shall not exceed 55 % of the average annual cost over
       the three year period .
    - operations relating to facilities and infrastructure under Article 4
       (4 ) c ) : 50 % of public expenditure ;
       operations for development of transport enterprises under Article 4
       (4) d) : the first year, 50 % of public expenditure resulting from a
       contribution to net operating costs of transport services . The aid
       shall last for three years and be degressive .
The categories of beneficiaries of Pond assistance in respect of operations
provided for in the previous paragraph may "be : public and local authoritie
other "bodies , undertakings or individuals . The aids referred to in the
third and fifth indents of paragraph ( l ) a ) and where they directly "bene­
fit enterprises , those referred to in the second indent of paragraph ( l ) "b )
may not have the effect of reducing the share paid "by enterprises to less
than 20 $ of total expenditure .
The amount of the Fund 's assistance in favour of the special programme
may not exceed the amount fixed "by the Commission at the time when this
programme is approved under Article 3 ( 5 )*
Budgetary commitments related to the implementation of the special pro­
gramme shall "be decided "by annual tranche in accordance with progress
made .
 ---pagebreak---                            Article 6
                                     ?
The amount of the Fund contribution in respect of the measures included in
the special programme shall be paid to the Member State concerned      ( or in
accordance with the instructions the latter communicates to this end to the
Commission ) according to the following rules :
a ) Expenditure incurred from the date of entry into force of this Regulation
    shall be eligible .
b ) When there is a financial contribution by the Member State , payments / other
    than advance payments referred to in point c ), shall be made as far as
    possible in parallel with the payment of the Member State 's contribution .
    In any other case , payments shall be made when the Member State certifies
    that the payment is due and may be paid by the Community .
    Each request for payment shall be accompanied by a statement from ^ he
    Member State certifying the operation and the existence of detailed sup­
    porting documents , and shall contain the following information :
    - the nature of the operations covered by the payment claim ;
    - particulars of the amount and nature of expenditure paid in respect
       of the different operations during the period covered by the claim ;
    - confirmation that the operations described in the payment claim have
       been begun in accordance with the special programme .
c ) On production by the Member State concerned of written evidence that the
    special programme has already occasioned expenditure under an annual
    tranche , the Fund may, at the State 's request , make an advance of 30 X of
    the appropriations committed .   When the amount of this advance has been
    exhausted and when the Member State has forwarded to the Commission the
    certificate referred to in subparagraph b ), further successive advance
    payments may be made , each of 30 % of the appropriations committed for
    each annual tranche .
At the end of each year , the Member State concerned shall present to the
Commission a report on the progress made in carrying out the special programme
by reference to the information required in the Annex to this Regulation .
 ---pagebreak---                                - 13 "
    These reports should enable the Commission to satisfy itself that the special
    programme is being executed , to observe its effects and to establish that
    the different operations are being carried out in a coherent manner . They
    shall be forwarded to the Regional Policy Committee .
    On the "basis of these reports and the relevant decisions , the Commission shall
    report under the conditions laid down in Article 21 of the Pond IIemulation .
    Where major amendments are made to a special programme during implementation ,
    the procedure provided for in Article 3 ( 5 ) would apply.
    When each special programme has been implemented , a report shall be presented
    by the Commission to the Regional Policy Committee .
3.  The provisions of Article 9 , paragraphs 1 to 5 of the Fund Regulation shall
    apply, as required, to the specific measure provided for in Article 1 of
    this Regulation .
                              Article 7
This Regulation shall enter into force on the day following its publication in
the Official Journal of the European Communities .
The adoption of this Regulation shall not prejudice the re-examination of the
Fund Regulation provided for in Article 22 of that Regulation which is to take
place before 1 January 1981 , on a proposal from the Commission .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,
                                             For the Council
 ---pagebreak---                           - 14 -
                         ANNEX
The special programme shall include the following information on
the regions covered under Article 2 of this Regulation :
1.  In respect of SMJ :
    a) - Analysis of the situation of the SMU m the economic fabric of
           the region for each sector of activity concerned . Analysis of
           their situation and their needs , in particular details on the
           market situation, possibilities of adaptation to markets , manage­
           ment and organization consultancy services , communications infra­
           structure , management information and access to risk capital .
         - Description of aid systems for the SMU and the nature of existing
           services available showing, by categories of aids and services ,
           the resultant annual average public expenditure involved .
    b ) In relation to the operations referred to in Article 4 of this
         Regulation :
         – Particulars of the nature of sectoral analyses bearing on pro­
           duction structures , market potential and measures to bs imple­
           mented m order to adapt and develop production and make it
           commercial ;
       „ - Description of rules governing investment aids set
           up within the programme framework ;
         – Particulars of incentives for access to management and organiza­
           tion consultancy services and aids for provision of joint ser­
           vices to which the SMU may have recourse ;
         – Details and exact location of investments in communications
           infrastructure ;
 ---pagebreak---     - Particulars of measures planned for management information .
    – Description of measures planned to allow SI-IU easier access to
      risk capital .
In respect of innovation :
a) Analysis of the needs of undertakings and of the means currently
    available to them for obtaining access to information on inno­
    vation and for implementing it , and assessment of related public
    expenditure ;                      ,
b ) In relation to the operations referred to in Article 4 of this
    Regulation :
    description of measures designed to ensure collection and dissemi­
    nation of information on innovation and , on the other hand , to
    facilitate its implementation by SMD .
In respect of craft industries :
a ) - Description of the situation and needs of craft industries ,
      as regards their means of access to technical and economic
      information and exploitation of craft techniques ;
    - In addition, where the aids provided for in Article 4 (l ) of this
      Regulation are also granted to craft enterprises , the special pro­
      gramme shall include the information referred to in paragraph 1
      above ;
b)    In relation to the operations referred to in Article 4 of this
      Regulation :   description of measures or aid systems planned .
In respect of rural tourism :
a) - Analysis of the situation and needs of rural tourism in its diffe­
      rent forms , and an estimate of potential tourist demand for the
      period covered by the programme ;
    – Description of existing aid systems for the benefit of rural
      tourism, and an assessment of relevant public expenditure .
b)    In relation to the operations referred to in Article 4 of this
      Regulation :
    - Details of aid for the construction or conversion of accomodation
    – Details of aids to bodies responsible for providing tourism
      facilities and promotion .
 ---pagebreak---                         - 16 -
   - Description of facilities , infrastructure and. recreational
     and cultural facilities planned ;
   – Name , address and. details of transport undertakings which could
     participate in the implementation of the programme , with an indi­
     cation of public service obligations .
In respect of the totality of the special programme :
a)   A description, as far as possible with figures , of the objectives
     covered by the . special programme , particularly regarding employment .
b)   Insofar as this information has not been identified with suffi­
     cient accuracy in the regional development programme , description
     of the existing or future public measures which it is intended
     to implement alongside the special programme and which will contri­
     bute towards improving the employment situation in the zones
     covered by Article 2 of this Regulation .
c)   Intentions of the national authorities regarding the use of other
     resources deriving fl'om Community structural funds .
d)   The timetable for carrying it out .    ,
e)   Estimation of the volume of public expenditure connected with
     the programme 's implementation, including an annual breakdown
     of such expenditure for each of the operations envisaged .
f)   Designation of the bodies responsible for execution of the pro­
     gramme and the various operations .
g)   Information measures planned to make the potential beneficiaries
     and the professional organizations aware of the possibilities
   . offered by the special programme/ and of the role played by the
     Community in this respect .
 ---pagebreak---                                     Proposal for a
                                , COUNCIL REGULATION
           instituting a specific Community Regional Development
           Measure contributing to overcoming constraints on the
           development of new economic activities in certain
           zones adversely affected by restructuring of the
           shipbuilding industry
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation ( EEC ) N° 724 / 75 of 18 March 1975 ( 1 )
establishing a European Regional Development Fund as amended by Council
Regulation ( EEC ) N° 214 / 79 of 6 February 1979 ( 2 ) and particularly its
Article 13(3 ),
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ( 3 ),
Having regard to the opinion of the Economic and Social Committee ( 4),
Whereas Article 13 of Regulation N° 724 / 75 ( hereinafter referred to as
'the Fund Regulat ion ' ) provides , independently of the national allocations
of resources fixed by Article 2(3 ) a ) of the amended Fund Regulation, for
participation of the Fund in financing specific Community regional develop
ment measures which are particularly linked with Community policies and
with measures adopted by the Community in order to take better account of
their regional dimension or to reduce their regional consequences ;
Whereas the Member States concerned have provided the Commission with
information on regional problems likely to be the subject of a specific
Community measure ;
< 1 ) OJ N° L 73    of 21.3.75
( 2 ) OJ N° L 35    of 9.2.79
 ( 3 ) OJ N° C 85' of 8.4.80
( 4 ) OJ N° C 83 of 2.4.80
 ---pagebreak---                                  -   2  -
Whereas the Fund 's resources are allocated having due regard to the relative
severity of regional imbalances within the Community ;
Whereas on 4 April 1978 the .Council adopted a Directive ( 4 ), on aid to
shipbuilding , in which it stated that shipbuilding production structures
should be adjusted to the new market conditions such that undertakings may
in due course be able to follow general economic developments and to meet
competition on the world market without the support of intervention by
pub lief authorities ;
Whereas on 19 September 1978 the Council adopted a Resolution ( 5 ) on the
reorganisation of the shipbuilding industry , in which it requested the public
authorities at local , national and Community level to lay particular stress
on the creation of new jobs in conjunction with those progressively lost in
the shipbuilding industry , to take account of these objectives in t^eir
regional policies and to make available adequate funds for this purpose ;
Whereas a certain number of zones in the Community which are highly dependent
on shipbuilding and associated activities and which have already suffered
considerable job losses as a result of the decline in the shipbuilding
industry risk an aggravation of these adverse consequences ;
Whereas certain of these zones in the United Kingdom are in regions which
already have high levels of unemployment ;
Whereas it is necessary for the Community to reinforce by means of a specific
Community regional development measure existing local , national and Community
financial measures aimed at stimulating the creation of new employment in
such zones in order to. replace job losses and also to contribute to reducing
regional imbalances ;
Whereas other interventions by Community funds , capable of being usefully
combined , should be made in these zones ,
Whereas the existence of an unfavourable physical and social environment due
to the dereliction of certain industrial and urban sites and inadequate
housing conditions for workers act as impediments on the attraction of new
employment-providing activities to such zones ;
( 4) OJ L 98/ 19 of 11.4.78
( 5) OJ C 229 / 1 of 27.9.78 , ref . paras . A (1 ),4(2),4(3)and 6(2 )
 ---pagebreak---                                - 3 -
Whereas encouragement of the development of small and medium-sized under­
taking (hereinafter referred to as 'SKU' ), which already occupy an important
place in the economics of these zones , requires that they be helped to have
access to necessary services in management , organisation and financing ;
Whereas the introduction of new technological products and processes can
contribute to the creation and development of viable economic activities
in these zones , and that small and medium undertakings encounter diffi­
culties in undertaking innovation;             '
Whereas the Community measure must be implemented in the form of a special
multiannual programme ; . whereas it is for the Commission in adopting this
programme to ensure that the operations planned thereunder comply with the
provisions of this Regulation ;
Whereas' the Commission must also    verify  that the special programme is
properly carried out by examining the reports which the Member State con­
cerned will present to it for this purpose ;
Whereas the special programme must respond to certain of the objectives
encompassed by the Regional Development Programme provided for under
Article 6 ( 3) of the Fund Regulation;
Whereas the Council , the European Parliament and the Economic and Social
Committee must be informed regularly on the implementation of this
Regulation ;
 ---pagebreak---                                 - 4 -
HAS ADOPTED THIS REGULATION :
                               Article 1
A specific Community regional development measure ( hereinafter referred ,
to as " the specific measure "), in the sense of Article 13 of the Fund
Regulation , is hereby established , contributing to overcoming constraints
on the development of new economic activities in certain zones adversely
affected by restructuring of the shipbuilding industry .
                               Article 2
The specific measure shall be applicable to the following zones :
In the United Kingdom : Strathclyde region, the counties of Cleveland , Tyne
and Wear Merseyside , and Belfast urban area .
 ---pagebreak---                                     - 5 -
                                  Artide 3
1 * The specifio measure shall fee implemented in the form of a special programme
       (hereinafter referred to as 'the speoial programme 1 ) to fee presented to the
       Commission fey the United Kingdom .
       The aims of the special programme shall fee to oontrifeute to the devolopmont
       of omploymont-providing aotivitiea in the zones referred to in Artiole 2 .
    . It shall , to this end , fee direoted at the improvement of their physical and
       social environment , this feeing necessary in order to encourage the setting
      up of such activities , and at the development of SMCT and the encouragement
       of innovation .
 2 . The special programme must fall within the framework of the regional develop­
      ment programmes mentioned in Artiole 6 ( 3) and ( 4) of "the Fund Regulation.
  3, The special programme must contain appropriate information , as specified
      in the Annex to this Regulation , analysing the situation and needs related
      to the aims stated in paragraph 1 , the operations proposed , the implementation
       plan, and, in general , all factors necessary to enable its consistency with
       regional development objectives to be assessed .
4*     The duration of the special programme shall fee 5 years starting from the six­
      tieth day after the date on which this Regulation enters into force .
5.    The special programme shall fee approved fey the Commission after intervention
      fey the Fund Committee in accordance with the procedure laid down in Artiole 16
      of the Regulation estafelishing an ERDF.
6 , The Commission shall inform the European Parliament of the amounts adopted
      for the zones when the opeoial programme is approved *
7 * Onoe it has feeen approved fey the Commission, the special programme shall fee
      pufelished for information in the Official Journal of the European Communities .
 ---pagebreak---                               Article 4
The Puna may participate , within the framework of the special programme,
in the following operations t
                                              Ν                                  ,
1 . Improvement of run-down areas whose character is either industrial , or
     indvlstrial-and-urban to the extent that these two aspects cannot be dis­
     sociated , including t the cleaning-up and preparation of such areas ;
     conversion of disused industrial buildings and their surroundings , in­
     cluding the modernization of premises for SMU, the creation of green areas
     and minor works for improving the appearance of localities , and exceptio­
     nally, minor roads giving access to the locations of the new activities .
2.   Construction and modernization of housing to accommodate workers in order
     to attract employment-providing activities such as housing being rea­
     sonably near the projected sites of the new activities , provided that
     the housing situation constricts the execution of the programme in
                                                         >
     question.
3.   Establishment or promotion of consultancy firms or other bodies for 1
     management or organization matters by means of direct or indirect aid .
     Activities of such firms or bodies may include temporary assistance to
     undertakings for implementing their recommendations .
4*   Establishment or development of common services for a number of
     undertakings .
 5 . Promotion of innovation in industry and services :                        i
      a ) tollection of information relating to product and technological
          Innovation and its dissemination among undertakings operating in
          the zones covered by the specific measure, which may include experi­
          mental work on such innovation .
     b) Encouragement of the implementation of product and technological
          Innovation in SMU .
6 . Better access for SMU to risk capital .
 ---pagebreak---                              Article 5
The special programme shall be the subject of joint financing between the
Member State and the Community . . The contributions from the Fund shall be
provided within the framework of the appropriations entered for this purpose
 in the general budget of the European Communities .     The Community contribution
 shall be :                                                           •
- Operations relating to improvement and conversion under Article 4 ( 1 ) :
    50 X of public expenditure ;
- Operations relating to construction and modernisation of housing under
   Article 4 ( 2 ) : 50 % of public expenditure subject to a limit of 10,000 EUA
   per unit of accommodation ;             .
- Operations relating to consultancy services under Article 4 ( 3 ) : aid
   covering part of the expenditure of undertakings relating to services
   provided by consultancy firms or bodies .     The aid shall last for three
   years and shall be degressive .    It shall cover 70 X of expenditure in the
   first year and shall not exceed 55 X of average annual expenditure over the
   three year period ( indirect aid );
- in respect of such operations / the Member State may replace this system by .
   an equivalent system of aid to consultancy firms or bodies ( direct aid ) ;
- Operations relating to common services under Article 4 ( 4 ) : aid covering .
   part of the expenditure of undertakings relating to the operation of these
   services .  The aid shall last for three years and shall be degressive . , It
   shall Cover 70 X of expenditure in the first year and shall not exceed 50 X
   of average annual expenditure over the three year period ;
- Operations relating to collection and dissemination of information on inno­
   vation under Article 4 ( 5 ) a ) : aid covering part of the operating costs of
   bodies engaged in such activities , provided that these activities are new
   and concern specifically the zones covered by Article 2 . The aid shall last
   for three years and be degressive . It shall cover 70 X of the operating
   costs •fn the first year and shall not exceed 55 X of the average annual cost
   over the three year period ;
 ---pagebreak--- - Operations implementing innovation under Article 4 ( 5 ) b ) : 70 % of the
   costs of feasibility studies may concern all aspects , including the
   commercial aspects , of the implementation of innovation , and limited to
   50,000 EUA per study .  These studies must be undertaken by or on behalf
   of undertakings situated in the zones covered by Article 2 ;
- Operations relating to risk capital under Article 4 ( 6 ) : contribution
   towards the operating costs of financial institutions providing risk
   capital for SMU .  This contribution shall be 70 % of the costs of risks
                             . \        •
   evaulation studies carried out by or on behalf of the financial institutions .
   These studies may also examine commercial aspects .
The categories of beneficiaries of Fund assistance in respect of the operat­
ions provided for in the previous paragraph may be : public and local autho­
rities , other bodies , undertakings or individuals .  The aids referred to in
the third and fifth indents of paragraph 1 and , where they directly benefit
undertakings , those referred to in the seventh indent of paragraph 1 may
not have the effect of reducing the share paid by undertakings to less than
20 % of total expenditure .
                                      '                            '           •
The amount of the Fund 's assistance in favour of the special programma may
not exceed the amount fixed by the Commission at the time when the programme
is approved under Article 3 ( 5 ).
Budgetary commitments relating to the implementation of the special programme
shall be decided by annual tranche in accordance with progress made .
 ---pagebreak---                                 - 9  -
                               Article 6
                                                          !
1. The amount of the Fund contribution In respect of the measures Included In
    the special programme shall be paid to the Member State concerned      ( or in
   accordance with fhe Instructions the latter communicates to this end to the
   Commission ) according to the following rules :                     1
                      *                         «                      >
   a ) Expenditure incurred from the date of entry into force of this Regulation
        shall be eligible .                   «                        r
                      •                                                «4
                                              t"'                      'I
   b) When there is^a financial contribution by the Member State/ payments , other
       than advance payments referred to in fcoint c >, shall be made as far as
       possible in parallel with the payment, of the Member State 's contribution .
       In any other $ase, payments shall be ^nade when the Member St^te certifies
       that the payment is due and may be pa.id by the Community .    ■
                                                                       «
       Each request for payment shall be accompanied by a statement from the
                      »'                      r                    ■   »
       Member State certifying the operation and the existence of detailed sup *
       porting documents , and shall contain the following information :
                                                 i
       - the nature of the operations covered by the payment claim; '
                                                   I
                      r                       o                          *
       - particulars of the amount and nature of expenditure paid in respect
                      κ                                                »
          of the different operations during the period covered by the claim ;
                      *«                               '
       - confirmation that the operations described in the payment claim have
          been begun i,n accordance with the special programme .       ,t
                                               •                         (
   c ) On production by the Member State concerned of written evidence that the
                        r
       special programme has already occasioned expenditure under an annual
       tranche , the Fund may, at the State 's request / make an advance of 30 X of
       the appropriations committed .   When the amount of this advance has been
       exhausted and when the Member State has forwarded to the Commission the
       certificate referred to in subparagraph b )/ further successive advance
       payments may be made/ each of 30 X of the appropriations committed for
       each annual tranche .
                                                                                   ν
2. At the end of each year/ the Member State concerned shall present to the
   Commission a report on the progress made * in carrying out the special programme
   by reference to the information requirednn the Annex to this Regulation .
 ---pagebreak---                                     10
     These reports should enable the Commission to satisfy itself that the special
     programme is being executed, to observe its effects and to establish that
                                                                         \
     the different operations are being carried out in a coherent manner . They
     shall be forwarded to the Regional Policy Committee .
     On the "basis of these reports and the relevant decisions , the Commission shall
     report under the . conditions laid down in Article 21 of the Fund Regulation .
          9
     Whure major amondmcnto are mnde to a opoolal prograinmo during implnrnontation ,
     lh « proooilur * provM««l for In Artlola 3 ( l ) would npp1y «
                        .                       Ψ                      ,
     When each special programme has been implemented , a report shall be presented
   ' by the Commission to the Regional Policy Committee .
                              I
                          !                                              <
3.   The provisions of Article 9, paragraphs 1 to 5 of the Fund Regulation shall
                                                 t
     apply, as required , to the specific measure provided for in Article 1 of
                        •                       t
     this Regulation .
                                                t
                                 Article 7
This Regulation shall enter into force on the day following its publication in
the Official Journal of the European Communities .
The adoption of this Regulation shall not prejudice the re-examination of the
Fund Regulation provided for in Article 22 of that Regulation which is to take
place before 1 January 1981 , on a proposal f?om the Commission .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done ot Brussels ,
                                               For the Council
 ---pagebreak---                               - 11 -
                              ANNEX
                                    I
The special programme shall include the following information in respect
of           the zones covered under Article 2 of this Regulation t
1# In renpeot of industrial and nrtan sites and industrial buildings I
    a) - An ftnnlyHia of the state of doreliotion of sites and the priorities
           for reclamation , and an analysis of tho state of disused industrial
           premises .
        - Particulars of existing actions for resolving the problem of
          dereliction and of the average annual public expenditure involved#
    b ) In relation to the operations envisaged under Article 4 of this
        Regulation : a description and exact location of programmes fsr
        reclamation of derelict sites and conversion of industrial premises }
        and, where relevant , details of essential minor road links *
2*  In respeot of housing for worko^s t
   ft) – An analysis of tho existing housing supply, oovnring age and
          standards of houses , and of the present and prospective domand
          for houses for workers in the light of the likely development of
          new activities . This analysis should show that the housing situation
          constricts the execution of the programme in queotion and in par­
          ticular the achievement of the productive investments which the
          programme is intended to promote .
        - A statement of existing publio measures in this field , with an
   V       indication of the resultant average annual publio expenditure
           involved .
    b ) In relation to the operations envisaged under Artiole 4 of this
        Regulation i a description and looation of housing development pro­
        grammes , with an indication of the types of housing to be provided
        and of the number of people to be housed each year .
 ---pagebreak---                                         - 12 -
3.    In respect of SMU :
      a ) - A description of the present situation of SMtJs 1n the different sectors
             arid AO evaluation of their possibilities for future development .
             Analysis of their situation and needs , particularly as concerns manage­
             ment and organisation .
           - Details of existing aid systems for SW , and the type of services
             existing , with a statement of average annual publio expenditure in­
             volved "by category of aids and services .
   b ) In relation to the operations envisaged under Article 4 of this Regulation :
          a description of the different types of management and organisation services
          to be provided to SMU . Particulars of the bodies responsible for the
          provision of such services and for activating the development of SMEs .
4.   In respect of Innovation ï
     a ) An analysis of the needs of undertakings and the existing means at their
          disposal to gain access to information on innovation and its implementation /
          together with a statement of relevant public expenditure .
   b ) In relation to the operations envisaged under Article 4 of this Regulation :
          a description of the measures planned for the collection and dissemination
          of innovation information - and also for the development of innovation in
    •     SMU .
5.  In respect of risk capital :
    a ) - Details of organisations providing risk capital for SMJ and the
             conditions applicable to the provision of such capital .
          - Particulars of existing schemes for the encouragement of financial
             institutions to provide risk capital for SMUs , and a statement of
             present public expenditure under each such scheme .
   b ) In relation to the operations envisaged under Article 4 of this Regulation :
         details of measures planned to facilitate the access of SMU to risk capital ,
 ---pagebreak--- In reopeot of the totality of the special programme s
a) A description, as far as possible with figures, of the objectives covered
      "by the special programme , particularly regarding employment .
b) A description of existing and proapeotive publio measures proposed to
     be carried out side by side with the special programme in order to im­
      prove the employment situation in tho zonoo oovored by Artiolo 2 of
      this Regulation and , in partioular, measures related to t
     – aids for productive investment
     – investment in infrastructure           >
     – measures related to worker and professional training and retraining
        and, as appropriate, those which are particularly aimed at the »nv-
        ployment of young people , and for the benefit of former workers in
        the shipbuilding industry .
     This description must be aocompanied by a statement giving ^rtioulars
    of the national authorities' intentions as regards the use of/resources
     emane, ting from Community structural funds .                    t;
O An indication of the amounts of publio expenditure in connection with
     the measures envisaged in subparagraph b) above.
d) The timetable for carrying it out .
e) Estimation of the volume of publio expenditure connected with the pro­
     gramme 's implementation, including an annual breakdown of such expendi­
     ture for each of the operations envisaged .
f) Designation of- the bodies responsible for execution of the programme,
      and of different operations .
                                              >
                                              I
fl ) Information measures planned to make potential beneficiaries and profes­
      sional organisations aware of the possibilities offered by the programme ,
      and of the role played by the Community in this respect .
 ---pagebreak---                                     Proposal for a
                                 COUNCIL REGULATION
      instituting a specific Community Regional Development Measure,
      contributing to overcoming constraints on the development of
      new economic activities in certain zones adversely affected by
      restructuring of the steel industry
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation ( EEC ) N° 724 / 75 of 18 March 1975 ( 1 )
establishing a European Regional Development Fund as amended by Council
Regulation ( EEC ) N° 214 / 79 of 6 February 1979 ( 2 ) and particularly its
Article 13(3 )/
Having regard to the proposal from the Commission ,                         '
Having regard to the opinion of the European Parliament ( 3 ),
Having regard to the opinion of the Economic and Social Committee ( 4 ),
Whereas Article 13 of Regulation N° 724 / 75 ( hereinafter referred to as
'the Fund Regulation' ) provides , independently of the national allocations
of resources fixed by Article 2(3 ) a ) of the Fund Regulation , for parti­
cipation of the Fund in financing specific Community regional development
measures which are particularly linked with Community policies and with
measures adopted by the Community in order to take better account of their
regional dimension or to reduce their regional consequences ;
Whereas the Member States concerned have provided the Commission with
information on regional problems likely to be the subject of a specific
Community measure ;
<1)    OJ N° L 73 / 1 of 21.3.75
(2)    ÔJ N° L 35 / 1 of 9.2.79
<3)    OJ N° C 85 of 8.4.80
 ( 4)  OJ N° C 83 of 2.4.80
 ---pagebreak---                                      2
Whereas the Fund 's resources are allocated having due regard to the
relative severity of regional imbalances within the Community.;
Whereas the Commission has in the context of ECSC Treaty Article 46
prescribed general policy objectives in respect of the steel industry ;
Whereas the Council decided on 18 and 19 December 1978 that mastery of
the social , regional , economic and financial consequences of rationalising
the iron and steel industry requires within the Community framework a
special appropriate concerted action both by Community and Member States
including the creation of alternative employment in the steel-producing
areas affected by restructuring measures ;
Whereas a certain number of zones in the Community , which are highly
dependent on steel and which have already suffered considerable job
losses as a result of the decline in the steel industry , risk an
aggravation of these adverse consequences ;
Whereas certain of these zones in Belgium, Italy and the United
Kingdom are in regions which already have high levels of unemployment;
Whereas it is necessary for the Community to reinforce by means of a
specif ic Community regional development measure existing local , national
                                 i
and Community financial measures aimed at stimulating the creation of
new employment in such zones in order to replace job losses and also to
contribute to reducing regional imbalances ;                  ,
Whereas other interventions by Community funds , capable of being usefully
combined , should be made in these zones ;
Whereas the existence of an unfavourable physical and social environment
due to the dereliction of certain industrial and urban sites and
inadequate housing conditions for workers act as impediments on the
attraction of new employment-providing activities to such zones ;
 ---pagebreak--- Whereas encouragement of the development of small and medium-sized under­
takings which already occupy an important place in the economies of these
zones , requires that they be helped to have access to necessary services
in management , organisation and financing ;
                 /
Whereas the introduction of new technological products and processes can
contribute to the creation and development of viable economic activities
in these zones , and that small and meidum undertakings ( hereinafter referred
to as " SMU ") encounter difficulties in undertaking innovation ;
Whereas the Community measure must be implemented in the form of special
multiannual programmes ; whereas it is for the Commission in adopting these
programmes to ensure that the operations planned thereunder comply with the
provisions of this Regulation ;
Whereas the Commission must verify that the special programmes are properly
carried out by examining the annual reports which the Member States concerned
              1
will present to it for this purpose ;
Whereas the special programmes must respond to certain of the objectives
encompassed by the Regional Development Programme provided for under Article 6
( 3) of the Fund Regulation ;
Whereas the Council , the European Parliament and the Economic and Social
Committee must be informed regularly on the implementation of this Regulation ;
 ---pagebreak---                                     4
HAS ADOPTED THIS REGULATION :
                               Article 1
A specific Community regional development measure ( hereinafter referred
to as "the specific measure "), in the sense of Article 13 of the Fund
Regulation , is hereby established , contributing to overcoming constraints
on the development of new economic activities in certain zones adversely
affected by restructuring of the steel industry .
                               Article 2
The specific measure shall be applicable to the following zones :
Belgium :   Provinces of Luxembourg , Liege and Hainaut with the exception
            of the 1 arrondissements 1 of Ath and Tournai .
Italy :   Province of Napoli .
                                         ν
United Kingdom :   Strathclyde region, the counties of Cleveland , Ciwyd ,
                   South Glamorgan, West Glamorgan, Gwent , and the employment
                   office area of Corby .
 ---pagebreak---                                  - 5 -
                               Article 3
1 . The specific measure shall "be implemented in the form of a special programme
     (hereinafter referred to as 'the special programme' ) to "be presented to the
     Commission by each Member State concerned .
     The aims of the special programme shall be to contribute to the development
     of employment-providing activities in the zones referred to in Article 2 .
     It shall , to this end, be directed at the improvement of their physical and
     social environment , this being necessary in order to encourage the setting
     up of such activities , and at the development of SMU and the encouragement
     of innovation .
2.   The special programme must fall within the framework of the regional develop­
     ment programmes mentioned in Article 6 ( 3) and ( 4) of the Fund Regulation . ,
3. The special programme must contain appropriate information , as specified
    in the Annex to this Regulation , analysing the situation and needs related
    to the aims stated in paragraph 1 , the operations proposed , the implementation
    plan, and , in general , all factors which allow appreciation of its coherence
    with regional development objectives .
4.   The duration of the special programme shall be 5 years starting from the six­
     tieth day after the date on which this Regulation enters into force /
5 . The special programme shall be approved by the Commission after intervention
    by the Fund Committee in accordance with the procedure laid down in Article 16
     of the Regulation establishing an ERDF.
6 . The Commission shall inform the European Parliament of the amounts adopted
     for the zones when the special programme is approved .
7 . Once it has been approved by the Commission, the special programme shall be
     published for information in the Official Journal of the European Communities .
 ---pagebreak---                             Article 4
The Pond may participate , within the framework of the special programme ,
in the following operations :
1.   Improvement of run-down areas whose character is either industrial , or
     industrial-and-urban to the extent that these two aspects cannot "be dis­
     sociated , including : the cleaning-up and preparation of such areas j
     conversion of disused industrial "buildings and their surroundings , in­
     cluding the modernization of premises for SMU , the creation of green areas
     and minor works for improving the appearance of Localities , and exceptio­
     nally, minor roads giving access to the locations of the new activities .
2.   Construction and modernization of housing to accommodate workers in order
     to attract employment-providing activities such as housing being rea^-
     sonably near the projected sites of the new activities , provided that
     the housing situation constricts the execution of the programme in
     question .
                                        \                       •     .
3.   Establishment or promotion of consultancy firms or other bodies for
     management or organization matters by means of direct or indirect aid .
     Activities of such firms or bodies may include temporary assistance to
     undertakings for implementing their recommendations .
4.   Establishment or development of common services for a number of
     under takings .
 5 . Promotion of innovation in industry and services :
      a) Collection of information relating to product and technological
         innovation and its dissemination among undertakings operating in
         the zones covered by the specific measure, which may include experi­
         mental work on such innovation .                                       '
     b) Encouragement of the implementation of product and technological
         innovation in SMU .
6 . Better access for SMU to risk capital .
 ---pagebreak---                 4               - 7 -
                               Article 5
1. The special programme shall be the subject of joint financing between the
   Member State and the Community .    The contributions from the Fund shall be
   provided within the framework of the appropriations entered for this purpose
   in the general budget of the European Communities . The Community contribution
   shall be :
   - Operations relating to improvement and conversion under Article 4 ( 1 ) :
      50 % of public expenditure ;
   - Operations relating to construction and modernisation of housing under
     Article 4 ( 2 ) : 50 % of public expenditure subject to a limit of 10,000 EUA
     per unit of accommodation ;
   - Operations relating to consultancy services under Article 4 ( 3 ) : aid
     covering part of the expenditure of undertakings relating to services
     provided by consultancy firms or bodies .    The aid shall last for three        >
     years and shall be degressive .    It shall cover 70 % of expenditure in the
     first year and shall not exceed 55 % of average annual expenditure over the
     three year period ( indirect aid );   *
   - in respect of such operations , the Member State may replace this system by
     an equivalent system of aid to consultancy firms or bodies (direct aid ) ;
   - Operations relating to common services under Article 4 ( 4 ) : aid covering
     part of the expenditure of undertakings relating to the operation of these
     services .  The aid shall last for three years and shall be degressive .     It
     shall cover 70 % of expenditure in the first year and shall not exceed 50 %
     of average annual expenditure over the three year period ;
   - Operations relating to collection and dissemination of information on inno­
     vation under Article 4 ( 5 ) a ) : aid covering part of the operating costs of
     bodies engaged in such activities , provided that these activities are new
     and concern specifically the zones covered by Article 2 .     The aid shall last
     for three years and be degressive .     It shall cover 70 % of the operating
     costs in the first year and shall not exceed 55 % of the average annual cost
     over the three year period ;
                        m
 ---pagebreak---                                    - 8 -
      - Operations implementing innovation under Article 4 ( 5 ) b ) : 70 % of the
         costs of feasibility studies may concern all aspects , including the
         commercial aspects , of the implementation of innovation , and limited to
         50,000 EUA per study .  These studies must be undertaken by or on behalf
        of undertakings situated in the zones covered by Article 2 ;
      - Operations relating to risk capital under Article 4 ( 6 ) : contribution
        towards the operating costs of financial institutions providing risk
         capital for SMU .  This contribution shall be 70 %' of the costs of risk
         evaulation studies carried out by or on behalf of the financial institutions .-
        These studies may also examine commercial aspects .
2.    The categories of beneficiaries of Fund assistance in respect of the operat­
      ions provided for in the previous paragraph may be : public and local autho­
      rities , other bodies , undertakings or individuals .  The aids referred to in
      the third and fifth indents of paragraph 1 and , where they directly benefit
      undertakings , those referred to in the seventh indent of paragraph 1 may
      not have the effect of reducing the share paid by undertakings to less than
      20 % of total expenditure .
3.    The amount of the Fund 's assistance in favour of the special programma may
      not exceed the amount fixed by the Commission at the time when the programme
      is approved under Article 3 ( 5 ).
4 . , Budgetary commitments relating to the implementation of the special programme
      shall be decided by annual tranche in accordance with progress made .
 ---pagebreak---                                    9
                                Article 6
1.
 -
    The amount of the Fund contribution in respect of the measures Included in
                      .                        *
    the special programme shall be paid to the Member State concerned      ( or in
    accordance with { he instructions the lat,ter communicates to this end to the
    Commission) according to the following rules :
                      *
    a ) Expenditure incurred from the date of entry into force of this Regulation
        shall be eligjble .                    <
    b ) When there is . a financial contribution by the Member State , payments , other
        than advance payments referred to in fcoint c >, shall be made'as far as
        possible in parallel with the payment, of the Member State 's contribution .
        In any other fase, payments shall be jnade when the Member State certifies
        that the payment is due and may be paid by the Community .
                      ΐ                                                ·
        Each request for payment shall be accompanied by a statement froa the
        Member State certifying the operation and the existence of detailed sup­
        porting documents , and shall contain the following information :
        - the nature of the operations covered by the payment claim ; 1
                      ï                            _
        - particulars of the amount and nature of expenditure paid in respect
                       1                                               \
          of the different operations during the period covered by the claim ;
        • confirmation that the operations described in the payment claim have
          been begun in accordance with the special programme .
                      I
    e ) On production by the Member State concerned of written evidence that the
        special programme has already occasioned expenditure under an annual
        tranche , the Fund may, at the State 's requoot , make an advance of 30 X of
        the appropriations committed .   When the amount of this advance has been
        exhausted and when the Member State has forwarded to the Commission the
        certificate referred to in subparagraph b ), further successive advance
        payments may be made , each of 30 % of the appropriations committed for
        each annual tranche .
                                                                         »
                                           '     ■                                 \
2 . At the end of each year, the Member State concerned shall present to the
    Commission a report on the progress made in carrying out the special programme
    by reference to the information required in the Annex to this Regulation .
 ---pagebreak---                                  10 -
    These reports should enable the Commission to satisfy Itself that the special
    programme Is being executed , to observe Its effects and to establish that
    the different operations are being csrriod out in a coherent manner . They
    shall be forwarded to the Regional Policy Committee .
    On the "basis of these reports and the relevant decisions , the Commission shall
    report under the conditions laid down in Artiole 21 of the Fund Reflation .
    Where major amendments are made to a special programme during implementation ,
    the procedure provided for in Article 3 ( 5 ) would apply .
    When each special programme has been implemented, a report shall be presented
    by the Commission to the Regional Policy Committee .
                                                                      >
3 . The provisions of Article 9, paragraphs 1 to 5 of the Fund Regulation shall
                      i'                      .
    apply, as required , to the specific measure provided for in Article 1 of
    this Regulation .
                              Article 7
This Regulation shall enter into force on the day following its publication in
the Official Journal of the European Communities .                          \
The adoption of this Regulation shall not prejudice the re-examination of the
Fund Regulation provided for in Article 22 of that Regulation which is to take
place before 1 January 1981 , on a proposal from the Commission .
This Regulation shall be binding in its entirety and directly applicable 1n
all Member States .
Done at Brussels ,
                                            For the Council
 ---pagebreak---                              ANNEX
The special programme shall include "the following information in respect
of          the zones covered under Article 2 of this Regulation :
1.  In respect of industrial and urban sites and industrial buildings :
    a) - An analysis of the state of dereliction of sites and the priorities
          for reclamation, and an analysis of the state of disused industrial
          premises .                                                          *
        - Particulars of existing actions for resolving the problem of
          dereliction and of the average annual public expenditure involved .
    b ) In relation to the operations envisaged under Article 4 of this
        Regulation s a description and exact location of programmes for
        reclamation of derelict sites and conversion of industrial premises ;
        and, where relevant , details of essential minor road links .
2.  In respect of housing for workers :
    a) – An analysis of the existing housing supply, covering age and
          standards of houses , and of the present and prospective demand
          for houses for workers in the light of the likely development of
          new activities . This analysis should show that the housing situation
          constricts the execution of the programme in question and in par­
          ticular the achievement of the productive investments which the
          programme is intended to promote .
        – A statement of existing public measures in this field, with an
          indication of the resultant average annual public expenditure
          involved .
    b ) In relation to the operations envisaged under Article 4 of this
        Regulation s a description and location of housing development pro­
        grammes , with an indication of the types of housing to be provided
        and of the number of people to be housed each year .
 ---pagebreak---  In respect of SMtf
a ) - A description of the present situation of SMQs in the different sectors
        and an evaluation of their possibilities for future development .
        Analysis of their situation and needs , particularly as . concerns manage­
        ment and organisation .
     - Details of existing aid systems for SPU , and the type of services
        existing , with a statement of average annual public expenditure in­
        volved by category of aids and services .
b ) In relation to the operations envisaged under Article 4 of this Regulation :
     a description of the different types of management and organisation services
     to be provided to SMU . Particulars of the bodies responsible for the
     provision of such services and for activating the development of SMEs .
 In respect of innovation :
 a ) An analysis of the needs of undertakings and -the existing means at their
     disposal to gain access to information on innovation and its implementation ,
     together with a statement of relevant public expenditure .
b ) In relation to the operations envisaged under • Article 4 of this Regulation :
     a description of the measures planned for the collection and dissemination
     of innovation information , and also for the development of innovation in
-    S MU.
 In respect of risk capital :
 a ) - Details of organisations providing risk capital for SMJ and the
        conditions applicable to the provision of such capital .
     - Particulars of existing schemes for the encouragement of financial
        institutions to provide risk capital for SMUs , and a statement of
        present public expenditure under each such scheme .
b ) In relation to the operations envisaged under Article 4 of this Regulation :
     details of measures planned to facilitate the access of SMU to risk capital .
 ---pagebreak---                                    - 13 -
6. In respect of the totality of the special programme :
   a) A description, as far as possible with figures , of the objectives covered
        by the special programme , particularly regarding employment .
                                                           I
   b ) A description of existing and prospective public measures proposed to
       "be carried out side "by side with the special programme in order to im­
        prove the employment situation in the zones covered "by Article 2 of
        this Regulation and , in particular , measures related to :
       - aids for productive investment
        - investment in infrastructure
       - measures related to worker and professional training and retraining
           and , as appropriate , those which are particularly aimed at the em­
           ployment of young people , and for the "benefit of former workers in
           the steel industries .
        This description must "be accompanied by a statement giving particulars
                                                                      other
        of the national authorities * intentions as regards the use of/resources
        emanating from Community structural funds .
        An indication of the amounts of public expenditure in connection with
        the measures envisaged in subparagraph b ) above .
                                                                                 J
    d ) The timetable for carrying it out .
    e ) Estimation of the volume of public expenditure connected with the pro­
         gramme 's implementation, including an annual breakdown of such expendi­
         ture for each of the operations envisaged .
    f ) Designation of the bodies responsible for execution of the programme ,
         and of different operations .
    g ) Information measures planned to make potential beneficiaries and profes­
         sional organisations aware of the possibilities offered by the programme ,
         and of the role played by the Community in this respect .
 ---pagebreak---                                  Proposal for a
                               COOTSrCIL REOULATIOIT
         instituting a specific Community Regional Development
         Measure contributing to improving security of energy
         supply in certain Community regions "by way of improved
         use of new techniques for hydro-electrioal power and
         alternative energy sources
 THE COUNCIL OP ffiE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) Ho 724/75 of 18 March 1975 (l )
establishing a European Regional Development Fund as amended by Council
Regulation (EEC) No 214/79 of 6 February 1979 (2 ) and particularly its
Article 13 ( 3 ), .
Having regard to the proposal from the Commission,
Having regard, to the opinion of the European Parliament ( 3),
Having regard to the opinion of the Economic and Social Committee
Whereas Article 13 of Regulation Bo 724/75 (hereinafter referred to as
"the Fund Regulation") provided, independently of the national allocations
of resources fixed by Article 2 ( 3) a ) of the Fund Regulation, for parti­
cipation of the Fund in financing specific Community regional development
measures which are particularly linked with Community policies and with
measures adopted by the Community in order to take better account of
their regional dimension or to reduce their regional consequences )
Whereas the Member State concerned has provided the Commission with infor­
mation on regional problems likely to be the subject of a specific measure )
(1 ) OJ Uo L 73     of 21.3.75
(2) OJ No L 35      of 9.2.79
( 3) 0J No C 85     of 8.4.80
( 4 ) OJ No C 83    of 2.4.80
 ---pagebreak---                                 - 2 -
 Whereas the Fund 's resources are allocated having due regard to the
  relative severity of regional imbalances within the Community ;
 Whereas the Council in its Resolution of 17 September 1974 on a new
  Community energy policy ( 4) expressed its resolve to improve the security
 of energy supply ;
 Whereas the European Council , meeting at Strasbourg on 21 and 22 July 1979 ,
 expressed its resolve to continue and intensify efforts to limit the
 consumption of petroleum, and, via economies in energy, the development
 of indigenous resources and the progressive use of alternative energy sources ,
 to limit , during the period 1980-1985 , Community imports to an annual
  level equal to or below that of 1978 ;
 Whereas limitation of petroleum imports is likely to affect particularly
 those Community Member States who have a substantial energy deficit and
 a heavy dependence on petroleum imports ;
 Whereas Italy is one of these Member States and that furthermore the
 installed electrical power reserves are particularly weak there , and that
 therefore the risks of power cuts during peak consumption periods are very
 great ;
 Whereas the development of the Mezzogiorno , and particularly of its
 mountain areas requires the installation of new activities
 with consequent increased electricity consumption , and that power losses due
 to long-distance transmission of electricity produced in the North are high ,
 and that therefore there is need to encourage ! the installation of new local
 production capacity ;
 Whereas it is necessary for the Community to supplement national measures
 to improve natural supplies of energy in these areas by way of a specific
 Community regional development measure ;
Whereas measures have already been taken in the field of the common agricultural
policy, and other assistance from Community Funds , capable of being usefully
 combined, must be carried out in these regions.;
(4) OJÏo C 153 of 9.7.1975
 ---pagebreak---                                      -  3
 Whereas adoption by public authorities of improved technology ( mini-turbines )
 allowing exploitation of the hitherto under-utilised natural hydro-electric
 resources of these regions , and the utilisation of alternative energy sources
 is likely to contribute to realising these aims , whilst improving the
 relatively weak electricity distribution network ;
 Whereas private users with moderate requirements could have an interest in
 exploiting local sources of hydro-electric and alternative energy themselves ,
 in view of their own consumption needs , and that for this purpose an active
 information campaign must be undertaken , and that such users ought to be
 encouraged to set up the necessary installations ;
               ,                           '          ■      V
 Whereas the maintenance of these mini-turbines may provide a number of
 additional jobs for the local population ;
Whereas the Community measure must be implemented in the form of a special
multi-annual programme ; whereas it is for the Commission , in adopting this
programme to ensure that the operations planned thereunder comply with the
provisions of this regulations
                     • ,     ' •                                     t
Whereas the Commission must also verify       that the special programme is
properly carried out by examining the annual reports which the Member State
concerned will present to it for this purpose ;
 Whereas the special programme must respond to certain of the objectives
encompassed by the Regional Development Programme provided for under
Article 6(3 ) of the fund regulation ;
 Whereas , the Council , the European Parliament and the Economic and Social
 Committee must be informed regularly on the implementation of this regulation .
 ---pagebreak---                                         - 4  -
HAS ADOPTED THIS REGULATION :
                              Article 1
A special Community regional development measure ( hereinafter referred to
as " the specific measure ") in the sense of Article 13 of the fund regulation
is hereby established contributing to improving security of energy supply in
certain Community regions by way of improved use of new technologies for
hydro-electrical power and of alternative energy sources .
                             Article 2
The specific measure shall apply to the mountain areas of the regions of the
Mezzogiorno within the meaning of Article 3(3 ) of Council Directive ( EEC )
75 / 268 of 28 April 1975 ( 1 ) and as defined by Council Directive ( EEC ) 75 / 273
of 28 April 1975 ( 1 ).
(1 )   OJ No L 128 , 19.5.1975
 ---pagebreak---                                       -   5 -
                                Article 3
    1.     The specific measure shall be implemented in the form of a special pro­
           gramme   ( hereinafter referred to as " the special programme ") to be
           presented to the Commission by Italy .
           The aimof the special programme shall be to help improve the develop­
           ment conditions of the areas referred to in Article 2 by strengthening
            the security of their energy supplies . To this end it shall have as its
           objective a better use of hydro-electric resources by making possible ,
            by the adoption of new techniques , the re-utilization of abandoned or
           obsolete works located on water courses with a low streamflow , and a
            better use also of alternative energy sources . It shall also be aimed
            at encouraging private users themselves to exploit hydro-electric and
            alternative energy sources , by carrying out an information campaign and
            by aiding feasibility studies . Finally it shall be aimed at providing
            additional jobs linked to the upkeep of these installations .
    2.     The special programme must fall within the framework of the regional
           development programmes mentioned in Article 6(3 ) and ( 4 ) of the fund
           regulation . .
   3. The special programme must contain appropriate information, as specified
       in the Annex to this Regulation , analysing the situation and needs related
       to the aims stated in paragraph 1 , the operations proposed , the implementation
       plan , and , in general , all factors which allow appreciation of its coherence
       with regional development objactiveo .
4 * The duration of the special programme shall be 5 years starting from the six­
        tieth day after the date on which this Regulation enters into force ,
5 * The special programme shall be approved "by the Commission after intervention
       by the Fund Committee in accordance with the procedure laid down in Artiole 16
       of the Fund Regulation .
(4)
 ---pagebreak--- lhe Commission shall inform the European Parliament of the amounts adopted
for the zones when the speoial programme is approved *
Onoe it has been approved by the Commission, the speoial programme shall he
published for information in the Offioial Journal of the European Comminities .
 ---pagebreak---                                        - 7 -
            v                     Article 4
The fund may participate , within the framework of the special programme , in
the following operations :
1.     Installing mini-turbines ( standardized electrical generators using low-
      'head falls ) including preparation of existing sites and the related hydro­
       electric installations , and also wind-powered generators and equipment
       utilizing solar energy or enabling recovery of energy contained in
       biomass , particularly refuse , insofar as such installations have been
       technically perfected and do not qualify under Council Regulation ( EEC )
       No 1302 /78 of 12 June 1978 ( 1 ) or Council Regulation ( EEC ) No 727 /79 of
       9 April 1979 ( 2 ).                 '
2.     Dissemination of information , including demonstrations , on the prospects,
       offered by mini-turbines and alternative sources of energy . Feasibility
       studies for potential private users wishing to proceed themselves with
        installations related to such energy sources .           -
3 . 1 Organisation of basic technical instruction to ensure additional local
       jobs linked to the maintenance of mini-turbines .
(1 )  0J No L 158 of 16.6.1978
(2 )  0J No L   93 of 12.4.1979
 ---pagebreak---                            Article 5
The special programme shall be the subject of joint financing between'
the Member State and the Community . The contributions from the fund
shall be provided within the framework of the appropriation entered
 for this purpose in the general budget of the European Communities .
The Community participation shall be :
- operations for the installation of mini-turbines , or other equipment ,
    and        studies for adapting materials to local conditions , under
    Article 4(1 ): 50% of expenditure , in cases where investments are
    made by public authorities;      in other cases , 30% of the investment cost
    this aid being supplementary -to the existing aid system .
-   operations for dissemination of information and demonstrations under
    Article 4(2 ) :   70% of the operating costs of bodies charged with this
    task .
-   operations for feasibility studies under Article 4(2 ):      70% of the
    costs of these studies .
- operations for technical instruction under Article 4(3 ):        70% of
    public expenditure .
The categories of beneficiaries of fund assistance in respect of
operations provided for in the previous paragraph may be :       public and
local authorities , other bodies , undertakings or individuals . Where the
aids referred to in the third indent of paragraph 1 directly benefit
undertakings , they may not have the effect of reducing the share paid by-
such undertakings to less than 20% of total expenditure .
The amount of the Fund 's assistance in favour of the special
programme may    not . exceed the amount fixed by the Commission at the
time when this programme is approved under Article 3(5 ).
Budgetary commitments relative to the implementation of the special
programme shall be decided by annual tranche in accordance with
progress made .
 ---pagebreak---                                       - 9 -
                                     Article 6
    1 . The amount of the Fund contribution in respect of the measures Included In
      s
         the special programme shall be paid to the Member State concerned (or in
         accordance with Jthe instructions the latter communicates to this end to the
         Commission ) according to the following rules :
         a ) Expenditure incurred from the date of entry into force of this Regulation
              shall be eligible .
         b) When there is, ■ financial contribution by the Member State/ payments / other
              than advance payments referred to In point c ), shall be made as far as
             possible 1n parallel with the payment of the Member State 's contribution .
              In any other pase/ payments shall be .made when the Member State certifies
             that the payment is due and may be paid by the Community .
             Each request for payment shall be accompanied by a statement from the
             Member State certifying the operation and the existence of detailed sup­
             porting documents / and shall contain the following information :
             - the nature of the operations covered by the payment claim;
             - particulars of the amount and nature of expenditure paid 1n respect
                of the different operations during the period covered by the claim;
             - confirmation that the operations described 1n the payment claim have
                been begun 1n accordance with the special programme .
        c ) On production by the Member State concerned of written evidence that the
             special programme has already occasioned expenditure under an annual
             tranche/ the Fund may/ at the State 's request / make an advance of 30 X of
             the appropriations committed . When the amount of this advance has been
             exhausted and when the Member State has forwarded to the Commission the
             certificate referred to in subparagraph b )/ further successive advance
            payments may be made / each of 30 X of the appropriations committed for
            each annual tranche .
 2 . At the end of each year / the Member Stat# concerned shall present to the
        Commission a report on the progress made 1n carrying out the special programme
        by reference to the Information required in the Annex to this Regulation .
(5)
 ---pagebreak---                                 - 10 -
     These reports shduld enable the Comtrrssion to satisfy itself that the special
     programme is being executed, to observe its effects and to establish that
     the different operations are being carried out in a coherent manher . They
     shall be forwarded to the Regional Policy Committee .             '
     On the basis of these reports and the relevant decisions , the Commission shall
     report under the conditions laid down in Article 21 of the Fund Regulation .
         »
     Where major amendments are made to a speoial programme during implementation,
     the procedure provided for in Artiole 3 ( 3 ) would apply *
     When each special programme has been implemented, a report shall be presented
     by the Commission to the Regional Policy Committee .
                                                                      t
3.   The provisions of Article 9, paragraphs 1 to 5 of the Fund Regulation shall
     apply, as required, to the specific measure provided for in Article 1 of
     this Regulation .
                                                                            /
                              Article 7
This Regulation shall enter Into force on the day' following its publication in
the Official Journal of the European Communities .
The adoption of this Regulation shall not prejudice the re-examination of the
Fund Regulation provided for in Article 22 of that Regulation which is to take
place before 1 January 1981 , on a proposal from the Commission .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,
                                            For the Council
 ---pagebreak---                                     - 11 -
                                       ANNEX
The special programme shall include the following information in respect
of the areas covered under Article 2 of this regulationi
1 . a ) An analysis of the situation and needs with regard to the supply of and*
         the utilisation of alternative energy sources , indicating priorities
         for extending and improving the existing system ;
                                                     ν
     b ) Information on the economic viability of the installation of mini-turbines ;
     c ) A description of public measures adopted to meet these needs , indicating
         the average amount of public expenditure involved .
2 .-     In relation to the operations envisaged under Article 4 of this regulation :
     a ) A programme of installing mini-turbines on existing sites , their location^
         description of types of site preparation works , including linked
         hydraulic work , and estimate of resulting improvements in electricity supply
     b ) A programme of installation of wind-powered generators or other equipment .
                                                   >                             '
     c ) Detailed rules governing the information campaign , the number of
         demonstration centres planned , the number and type of publications
         and feasibility studies envisaged;
     d ) The type of technical instruction planned , and the prospects for additional
         jobs .
3.       In respect of the totality of the special programme :
     a ) A description , as far as possible with figures , of the objectives covered
         by the special programme , particularly regarding employment .
    b)   Insofar as this information has not been identified with sufficient
         accuracy in the regional development programme , descripfion of the
         existing or future public measures which it is intended to implement
         alongside the special programme and which wi 1 1 contribute towards
         improving the employment situation in the areas covered by Article 2
         of thi s . régulât ion .
 ---pagebreak---                                    - 12
c)   The planned intentions of the national authorities for using other resources
     deriving from Community structural funds . (
 d ) The timetable for carrying it out .
 e ) Estimates of the volume of public expenditure connected with the
     programme 's implementation , including an annual breakdown of such
     expenditure for each of the operations envisaged .
                     *
 f ) The designation of bodies responsible for execution of the programme
     and of different operations .                           ,
 g)   Information measures planned to make the potential beneficiaries
      and the professional organisations aware of the possibilities
      offered by the programme , and of the role played by the Community
      in this respect .
 h)   Description of other existing or intended public measures concerning
      encouragement of users themselves to exploit local energy sources ,
      including relevant legislation .
 ---pagebreak---                              Proposal for a
                          COUNCIL REGULATION
        instituting a Special Community Regional Development
        Measure contributing to the improvement of the economic
        and social situation of the border areas of Ireland
        and Northern Ireland
THE COUNCIL OP THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC ) No 724/75 OF 18 March 1975 ( l )
establishing a European Regional Development Fund as amended by Council
Regulation (EEC) NO 214/79 OF 6 February 1979 (2 ) and particularly
Article 13 ( 3 ),
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament ( 3)»
 Having regard to the opinion of the Economic and Social Committee (4 )
Whereas Article 13 of Regulation No 724/75 (hereinafter referred to as
"the Fund Regulation") provides , independently of the national allo­
cations of resources fixed by Article 2 ( 3) a ) of the Fund Regulation,
for participation of the Fund in financing specific Community regional
development measures which are particularly linked with Community poli­
cies and with Pleasures adopted "by the Community in order to take bet ler
account of their regional dimension or to redn.ce their regional consequences
Whereas the Member States concerned have provided the Commission with
information on problems in border areas likely to be the subject of a
specific Community measure }
  1 ) OJ No L 73    of 21.3.75
(22 ) OJ  No L 35   of 9.2.79
  3 ) OJ No C 85    of 8.4.80
( 4 ) OJ No C 83    of 2.4.80
 ---pagebreak---                               - 2 -
 Whereas the Fund 's resources are allocated having due regard to the
 relative severity of regional imbalances in the Community;
 Whereas the Council has stated its willingness to examine / under
 Article 13/ on a proposal from the Commission/ any requests for
 aid relating to border problems in . the most deserving
 regions of the Community submitted jointly by two or more Member
 States concerned ;
                                                           J
                                                                          ι
Whereas the border areas in Ireland and Northern Ireland are situated m
 regions which are among the most underdeveloped 'in the Community / involv­
ing as they do a high dependence on less productive agriculture , high levels
of unemployment and low incomes per head and as such a widening of the
base for economic development of these areas is necessary in order to reduce
the handicaps suffered by the regions ;
Whereas communications difficulties and other problems related to
border areas have hindered the fuller development of economic and
social policies in border areas of Ireland and Northern Ireland ;
Whereas the difficult situation of these border areas justifies a
specific Community regional development measure ;
Whereas the Economic and Social Committee / in its opinion of 12 July 1978 (4)
on the cross-border communications study for the Londonderry / Donegal
area carried out at the request of the governments of the United Kingdom and
of Ireland , and also of the Commission / recommended that the cross-border
area be made the subject of a specific Community regional development
measure ;                               -
•r
Whereas measures have already been taken in the field of common agri­
cultural policy /. and other assistance from Community funds , capable
of being usefully combined / must be carried out in these areas ;
(4) O.J. N° C / 114 of 7.5.1979
 ---pagebreak---   Whereas the considerable tourist potential existing in the border areas
 of Ireland and Northern Ireland offers significant prospects of generation
  of non-agricultural economic development ;
  Whereas development of artisan enterprises can make a significant
  contribution towards strengthening the economic fabric in these areas ;
  Whereas development of tourism in the border areas of Ireland and Northern
  Ireland is seriously handicapped by shortage of accommodation , and of
  recreational and cultural facilities for tourists , including means of
  communication with tourist centres ;
  Whereas the development of artisan enterprises is handicapped by lack of
  finance , information and advice ;
  Whereas , because of their remoteness from the economic centres of the Community ,
  small and medium sized undertakings ( hereinafter referred to as " SMU ") in these
  areas have difficulty in obtaining information on markets and advice on manage­
  ment and organisation matters ;
   Whereas the Community measure must be implemented in the form of special
   multi-annual programmes ;  whereas it is for the Commission in adopting these
   programmes to ensure that the operations planned thereunder comply with the
   provisions of this regulation ;
  Whereas the Commission must also   verify    that the special programmes are
  properly carried out by examining the annual reports which the Member States
- will present to it for this purposes ;
  Whereas the special programmes must respond to certain of the objectives
  encompassed by the regional development programmes provided for under
                                             ι
  Article 6(3 ) of the Rind regulation ;
   Whereas the Council , the European Parliament and the Economic and Social
   Committee must be informed regularly on the implementation of this regulation ;
 ---pagebreak---                                     -   L  -
HAS ADOPTED THIS REGULATION :
                                  Article 1
A specific Community regional development measure in the sense of Article 13
of the fund regulation ( hereinafter referred to as " the specific measure ") is
hereby established contributing to the improvement of the economic and social
situation of the border areas of Ireland and Northern Ireland .
                                  Article 2
The specific measure shall be applicable to the following border areas :
Ire land : The counties directly adjoining the border :    that is Donegal ,
Leitrim , Cavan , Monaghan and Louth .
Northern Ireland :   The council districts directly adjoining the border :
that is Londonderry , Strabane , Omagh , Fermanagh , Dungannon , Armagh , Newry
and Mourne .
 ---pagebreak---                                -   5  -
                                    Article 3
                                                       \
1.     The specific measure shall be implemented in the form of a special
       programme ( hereinafter referred to as " the special programme'5. to be
       presented to the Commission by each of the Member States concerned .
       The aim of the special programme shall be to contribute to the
       economic activities of tourism , communi cat ions, craft industries and
       small and medium sized undertakings in the areas referred to in
        Article 2 , with a view to improving the employment situation .
2.     The special programme must fall within the framework of the regional
        development programmes mentioned in Article 6(3 ) and ( 4 ) of the fund
        regulation .                                                  -
    3. The special programme must contain appropriate information, as specified
       in the Annex to this Regulation , analysing the situation and needs related
       to the aims stated in paragraph 1 , the operations proposed , the implementation
       plan , and , in general , all factors which allow appreciation of its coherence
       with regional dovelopmont objoctivorj .
 4.      The duration of the special programme shall be five years starting
         from the sixtieth day after the date on which this regulation
         enters into force .
 5.     The special programme shall be approved by the Commission after
         intervention by the Fund Committee in accordance with the procedure
         laid down in Article 16 of the Fund Regulation .
6.      The Commission shall inform the European Parliament of the amounts
        adopted for the areas when the special programme is approved .
7.      Once it has been approved by the Commission , the special programme
        shall be published for information in the Official Journal of the
        European Communities .
 ---pagebreak---                                    -   6  -
                                      Article 4
The Fund may participate , within the framework of the special programme ,
in the following operations :       ,
1.      Construction and conversion of tourist accommodatipn including self-
        catering and farm holiday accommodation and provision of caravan and
         camping sites ;                     /
2.      Establishment or development of bodies responsible for the promotion
         of tourism , publicity and the coordinated servicing.of tourist
         accommodation and facilities , including the organisation of information
         seminars for those providing rural accomodation ;
3.      Provision of amenities and infrastructures directly linked to the
        development of tourism and to cultural and recreational facilities
         including angling and riding ; works aimed at improving scope for water
         sports , particularly through the development of inland waterways ,
         for example in the River Erne basin ;
4.       Improvement of communications giving access to tourist areas , including
         construction or modernisation of minor roads and telephone exchanges ;
                  /
5.      Development of transport activities aimed at providing easier
        access for tourists to the areas covered by the specific measure ;
6.      Establishment and development, by means of financial aids , of
        artisan enterprises and of facilities including the provision of
        information and advice .
7 . a ) Preparation of sectoral analyses intended to provide small and medium
        sized undertakings with information on the potential of national , Community
        and external markets and on the effects to "be anticipated therefrom on
        the production and organisation of these undertakings .
 ---pagebreak---                                    -  7 -
       b) Establishment .or promotion of consultancy firms or other bodies
           for management and organisation matters by means of direct or
           indirect aid . Activities of such firms or bodies may include -
           temporary assistance to undertakings for implementing their
           reconrmendat ions .                        ' -   .           ■
       c ) Establishment or promotion of common services for a number of
           undertakings .
                                  Artide 5
1 . The special programme shall be the subject of joint financing between
     the Member State and the Community . The contributions from the-Fund shall
     be provided within the framework of the. appropriations entered for this
     purpose in the general budget of the European Communities . The Community
     participation shall be :
    - operation for tourist accomodation under Article 4(1 ) : where the investment
        is linked to agricultural activity , 50 % of public expenditure resulting
        from the granting aid to the investment ; in other cases , 50 % of public ex­
        penditure resulting from the granting of aid to the investment , but no more
        than 30 % of the cost of the investment ; / '
    - operations for the promotion of tourism under Article 4 ( 2 ) : aid
        covering part of the operating costs of the bodies . This aid shall last
        for three years and be degressive . It shall cover 70 % of the operating
        costs in the first year and shall not exceed 55 % of the average annual
        costs over the three year period ;
   - operations for amenities and infrastructure under Article 4 (3) : 50 $ of .
      public expenditure ;                              . ,
    - operations for improving communications under Article 4(4) : 50 % of public
       expenditure ;
    - operations for developing transport activity under Article 4(5 ) : 50 % of
       public expenditure on subvention^ towards the net cost of providing
       transport services ;
 ---pagebreak---                            -  8  -
   - operations for craft industries under Article 4(6 ) : 50 % of public
     expenditure resulting from the granting of aid to the investment , but
     not more than 30 % of the cost of the investment ; and 70 % of public
     expenditure resulting from aid to information and advising services ;
 -   operations relating to sectoral analyses under Article . 4(7 ) a ):
     70% of the total expenditure ;
-    operations relating to consultancy services under Article 4(7 ) b ):
 - Operations relating to consultancy services under Article 4 ( 3 ) : aid
    covering part of the expenditure of undertakings relating to services
    provided by consultancy firms or bodies .     The aid shall last for three
    years and shall be degressive .   It shall cover 70 X of expenditure in the
    first year and shall not exceed 55 X of average annual expenditure over the
    three year period ( indirect aid );
 - in respect of such operations , the Member State may replace this system by
    an equivalent system of aid to consultancy firms or bodies ( direct aid ) ;
- Operations relating to common services under Article 4 (7 ) c):aid covering
    part of the expenditure of undertakings relating to the operation of these
    services . The aid shall last for three years and shall be degressive .    It
    shall cover 70 X of expenditure in the first year and shall not exceed 50 %
    of average annual expenditure over the three year period ;
The categories of beneficiaries of Fund assistance in respect of
operations provided for in the previous paragraph may be :       public
and local authorities , other bodies , undertakings or individuals .
The aids referred to in the eighth and tenth indents of paragraph 1
may not have the effect of reducing the share paid by undertakings
to less than 20% of total expenditure .    <    '
The amount of the Fund 's assistance in favour of the special
programme may    not exceed the amount fixed by the Commission at the
time when this programme is approved under Article 3(5 ).
        «
Budgetary commitments relating to the implementation of the special
programme shall be decided by annual tranche in accordance with
progress made .                              -        ,
 ---pagebreak---                                   -     9 -
                                 Article 6
 1.  The Amount of the Fund contribution 1n respect of the measures Included In
     the special programme shall be paid to the Member State concerned        ( or 1n .
     accordance with the Instructions the letter communicates to this end to the
     Commission) according to the following rrules :
                                    I       '5             »
     a ) Expenditure incurred from the date of entry Into force of this Regulation
          shall be eligible .
     b ) When there is a financial contribution by the Member State, payments , other
          than advance 'payments referred to 1n point c >, shall be made as far as
          possible in parallel with the payment of the Member State 's contribution .
          In any other case , payments shall be. made when the Member State certifies
          that the payment 1s due and may be paid by the Community .
         Each request for payment shall be accompanied by a statement from the
                                                  ι
         Member' State certifying the operation and the existence of detailed sup­
         porting documents , and shall contain the following information :
         - the nature of the operations covered by the payment claim;?'
         - particulars of the amount and nature of expenditure paid in respect
            of the different operations during the period covered by the claim ;
         - confirmation that the operations described in the payment claim have
            been begun 1n accordance with the special programme .
    c ) On production by the Member State concerned of written evidence that the
         special programme has already occasioned expenditure under an annual
         tranche, the Fund may, at the State 's request , make an advance of 30 X of
         the appropriations committed .     When the amount of this advance has been
                                      ί
         exhausted and when the Member State has forwarded to the Commission the
         certificate referred to in subparagraph b ), further successive advance
         payments may be made , each of 30 % of the appropriations committed for
         each annual tranche .
2.  At the end of each year , the Member State concerned shall present to the
    Commission a report on the progress made in carrying out the special programme
    by reference to the Information required 1n the Annex to this Regulation .
 ---pagebreak---                                   10 -
     These reports shduld enable the Commission to satisfy Itself that the special
     programme 1s being executed, to observe Its effects and to establish that
     the different operations are being carried out 1n a coherent manner . They
     shall be forwarded to the Regional Policy Committee .
     On the basis of these reports and the relevant decisions f the Commission shall
     report under the conditions laid down in Article 21 of the Pond Regulation .
     Where major amendments are made to a speoial programme during implementation!
     the procedure provided for in Artiole 3 (5 ) would apply.
     When each special programme has been Implemented, • report shall be presented
     by the Commission to the Regional Policy Committee .
                                                                      I
3.   The provisions of Article 9, paragraphs 1 to 5 of the Fund Regulation shall
    apply, as required, to the specific measure provided for 1n Article 1 of
    this Regulation .   '
                              Article 7
This Regulation shall enter Into force on the day following Its publication 1n
the Official Journal of the European Communities .                      i
The adoption of this Regulation shall not prejudice the re-examination of the
Fund Regulation provided for in Article 22 of that Regulation which is to take
place before 1 January 1981 , on a proposal ffom the Commission .
                    '                          .
This Regulation shall be binding 1n Its entirety and directly applicable 1n
all Member States ;
Done at Brussels ,
                                            For the Council
 ---pagebreak---                                     - 11 -
                                      ANNEX
The special programme shall include the following information on
the areas covered under Article 2 of this regulation :
1 . a ) An analysis of the present situation of tourism and artisan activities
         and an estimate of potential tourist demand during the period covered
         "by the programmes ; an analysis of the situation and of the          1
         requirements of SMU , in particular as regards market information and
         management and organisation consultancy services ;
    b ) particulars of aid schemes and other measures designed to promote
         tourism and artisan activity and to develop SMU with an estimate of
         average annual public expenditure incurred under such systems .
2.       In relation to the operations envisaged in Article 4 of this regulation :
    a) -     a global estimate of the capacity and type of additional accommodation \
             proposed to be installed or converted ;                               -
         -   the nature and activities of the bodies responsible for the establishment •
             and promotion of tourism and artisan enterprises ;.
       -     a statement setting out the types of tourist and communication
             infrastructures to be provided , and their location ;     "         '
             the name , address and details of transport enterprises which could
             participate in the implementation of the special programme , with
             indications of public service obligationis .                . '
    b) -     a description of public aids related to the different measures planned .
3.       In respect of the totality of the special programme :
    a ) a description , as far as possible with figures , of the objectives
         covered by the special programme , particularly regarding employment ;
     b ) insofar as this information has not been identified with sufficient
         accuracy in the regional development programme , a description of the
         existing or future public measures which it is intended to implement
         a longs ide t he special programme and which will contribute towards
         improving the employment situation in theareas covered by Article 2
         of this regulation .
 ---pagebreak---                                - 12-
 c)planned intentions of the national authorities for using other . resources
    deriving from Community structural funds ;
d ) t he timetable for carrying it out ;
e ) estimation of the volume of public expenditure connected with the
     programme 's implementation , including an annual breakdown of such
    expenditure for each of the operations envisaged ;
     designation of the bodies responsible for execution of the programme
     and of different operations ;
^ information measures planned to make the potential beneficiaries and
    the professional organisations aware of the possibilities offered by
     the special programme , and of the role played by the Community in this
     respect ;