CELEX: 51988PC0144
Language: en
Date: 1988-03-23
Title: Amended Proposal for a COUNCIL REGULATION (EEC) on the tasks of the structural Funds and their effectiveness and on coordination of their activities between themselves and with the operations of the European Investment Bank and the other existing financial instruments (submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 144
Vol. 1988/0043
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
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informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM ( 88 )        final
                                                   Brussels , 23 March 1988
                               Amended Proposal for a
                              COUNCIL REGULATION ( EEC )
          on the tasks of the structural Funds and their effectiveness
         and   on coordination of their activities between themselves and
   with the operations of the European Investment Bank and the other existing
                               financialtournent
                                    financial instrumentss
          ( submitted by
                         \o A     V
                                      ^ ^)o^ Article 149 (3)
                                           *
                                                  pursuant to Article 149 ( 3 )
                                                      h }
 ---pagebreak---                                       CONTENTS
                                                                    C - tyi
        RECITALS
 I.    OBJECTIVES AND TASKS OF THE STRUCTURAL FUNDS
 Article 1 :   Objectives
Article 2 :    Means
Article 3 :    Tasks of the Funds
II .   ARRANGEMENTS FOR STRUCTURAL OPERATIONS
Article   4:   Complementarity , partnership , technical assistance
Article   5:   Forms of assistance
Article   6:   Monitoring and assessment
Article   6:   Compatibility and checks
III .  PROVISIONS RELATING TO THE SPECIFIC OBJECTIVES
Article   8:   Objective No 1
Article   9;   Objective No 2
Arti ele  10 : Objectives No 3 and No 4
Artie le  11 : Objective No 5
IV .   FINANCIAL PROVISIONS
Article 12 :   Fund resources and concentration
Article 13 :   Differentiation of rates of assistance
V.     OTHER PROVISIONS
Article   14 : Combination and overlapping of assistance
Article   15 : Transitional provisions
Article   16 : Reports
Article   17 : Committees
VI .   FINAL PROVISIONS
Article 18 :   Implementation
Article 19 :   Entry into force
       Annex 1
       Annex 2
                                                                            0/
 ---pagebreak---   THE COUNCIL OF THE EUROPEAN COMMUNITIES
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Article 130d thereof .
 Having regard to the proposal from the Commission ,
 Having regard to the opinion of the European Parliament ,
 Having regard to the opinion of the Economic and Social Committee ,
 Whereas Article 130a of the Treaty provides for the Community to develop and
 pursue its actions leading to the strengthening of its economic and social
 cohesion and in particular for it to aim at reducing disparities between the
 various regions and the backwardness of the least-favoured regions ;
 Whereas Article 130c states that the European Regional Development Fund CERDF )
 is intended to help redress the principal regional imbalances in the Community
through participating in the development and structural adjustment of regions
whose development is lagging behind and in the conversion of declining
 industrial regions ;
Whereas , to that end . Article 130d of the Treaty provides for a comprehensive
proposal the purpose of which will.be to make such amendments to the structure
and operational rulesof the European Agricultural Guidance and Guarantee
 Fund, Guidance Section ( EAGGF Guidance Section ), the European Social Fund CESF )
and the ERDF as are necessary to clarify and rationalize their tasks in order
to contribute to the achievement of the objectives set out in Articles 130a
and 130c of the Treaty , to increase their efficiency and to coordinate their
activities between themselves and with the operations of the existing financial
instruments ;
Whereas Community operations under the structural Funds , the European Investment
Bank ( EIB ) and the other existing financial instruments must be in support
of the objectives set out in Articles 130a and 130c ;
Whereas the action taken through the structural Funds , the EIB and the other
existing financial instruments , the coordination of Member States' economic and
social Dolicies , the coordination of national regional policies and of physical
planning policies , the coordination of national schemes of assistance and other
measures taken with a view to implementing the common policies and the internal
marxet form part OT a series of measures aimed at strengthening economic and
social cohesion , and whereas the Commission is called upon to make appropriate
proposals in this regard ;
                                                                                    3
 ---pagebreak---                                        2
 Whereas it is necessary , in order to achieve the aim set by Article 130d , to
 direct all Community activity in this field towards attainment of priority
objectives which are clearly defined in the light of that aim;
Whereas the European Council , with a view to strengthening the impact of
Community structural measures , is looking to increase the commitment
appropriations for all the structural Funds ( 7 700 million ECU in 1988 ) by
1 300 million ECU a year ( at 1988 prices ) over the period 1989-92 to 12 900 million
ECU ( at 1988 prices ) in 1992 ;
Whereas it is necessary to specify which Funds are to contribute - and to what
extent and under what conditions they are to do so - to achievement of each of
the priority objectives and to determine the conditions under which the EIB
and other existing Community financial instruments can make their contributions ,
particularly in conjunction with operations under the Funds ;
Whereas the ERDF is the main instrument for achieving the objective of ensuring
the development and structural adjustment of regions whose development is lagging
behind and whereas it plays a central role in the conversion of regions , frontier
regions and parts of regions ( including employment areas and urban communities )
seriously affected by industrial decline ;
Whereas the ESF , by the support it gives to economic and social cohesion , is of
decisive importance inthe promotion of consistent employment policies in the
Member States and in the Community ;
Whereas the EAGGF Guidance Section is the main instrument for financing the
adjustment of agricultural structures and the development of rural areas with
a view to reform of the common agricultural policy ;
Whereas the operations of the Funds , the EIB and the other financial instruments
must underpin implementation of a policy of rural development ;
Whereas the main tasks of the Funds must be defined so as to specify the broad
categories of tasks assigned to each of them for the purpose of achieving the
priority objectives ; whereas it is necessary in particular to define the new
tasks of the ESF ;
                                                                                   4
 ---pagebreak---                                         - 3 -
 Whereas achievement of the priority objective of ensuring the structural
 adjustment of the less-developed regions necessitates a significant concentration
 of the resources of the Community 's structural Funds on that objective ;
 Whereas the regions and individuals in the Community eligible for Community
 structural assistance in connection with the various priority objectives
 should be determined ;                           *
 Whereas an initial list should be drawn up of the less-developed regions ;
 whereas this list should comprise administrative level NUTS II regions where
 per capita GDP measured in terms of purchasing power parity is less than 75’/.
of the Community average , and other regions whose inclusion is justified by
 special circumstances ;
Whereas it is necessary to draw up criteria for defining the declining
 industrial areas ;     whereas , moreover . Community action could , in order to
ensure effective concentration of assistance , cover between 12% and 15% of the
community population living outside the less-developed regions ;
Whereas Community action is intended to be complementary to action by the
Member States and whereas , in order to impart value added to their own
initiatives at the appropriate territorial level , close consultations should
be instituted between the Commission , the national authorities and the competent
authorities designated by the Member State concerned at regional , local or
other level , with each party acting as a partner in the pursuit of a common goal ;
Whereas it is necessary to specify the principal forms of structural assistance
to be provided by the Community for the purposes of the objectives set out in
Articles 130a and 130c of the Treaty ; whereas those forms of assistance must
add to the effectiveness of the measures taken by it and at the same time
satisfy the needs of the different situations that may arise ;
Whereas the main emphasis must be placed on assistance in the form of multiannual
operational programmes ;
                                                                                  Ό
 ---pagebreak---                                       4
Whereas , in order to secure joint action between one or more Funds , the E1B
and one or more of the other existinq financial instruments , those programmes
may be drawn up and implemented on the basis of an integrated approach to the
measures involved ;
Whereas mechanisms should be established for varying Community assistance in
line with the particular features of the measures to be supported and in the
light of the context in which they are to be carried out and the financing
capacity of the Member State concerned ;
Whereas , in implementing this Regulation , it is necessary to establish
procedures for ensuring close cooperation between the Commission and the
national , regional and local authorities in Member States ;
Whereas it is necessary to establish effective methods of monitoring ,
assessing and carrying out checks in respect of Community structural operations ,
based on objective criteria , and to ensure that those methods are adapted to
the tasks of the different Funds as specified in this Regulation ;
Whereas it is necessary to lay down in subsequent implementing legislation the
detailed rules governing the individual Funds , together with the arrangements
for the coordination and joint deployment of the Community 's various structural
Funds and instruments , and the necessary transitional provisions ;
Whereas , while performing the tasks assigned to it by Articles 129 and 130 of
the Treaty , the EIB is to cooperate in achieving the objectives set out in this
Regulation in accordance with the procedures laid down in its Statute ,
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                    I.   OBJECTIVES AND TASKS OF THE STRUCTURAL FUNDS
                                        Article 1
                                       Objectives
  Community operations under the structural Funds , the European Investment Bank
  ( hereinafter referred to as the " EIB"> and other existing financial instruments
 shall support the achievement of the general objectives set out in Articles 1_>0a
 and 130c of the Treaty by contributing to the attainment of five priority
 objectives :
 1 . Promoting the development and structural adjustment of the less-developed
 regions ( hereinafter referred to as " Objective No 1 ");
 2 . Converting the regions , frontier regions or parts of regions ( including
employment areas and urban communities ) seriously affected by industrial decline
 ( hereinafter referred to as " Objective No 2 ");
3 . Combating long-term unemployment ( hereinafter referred to as " Objective No 3");
A.     Facilitating the occupational integration of young people ( hereinafter
 referred to as " Objective No 4 ");
5.     With a view to reform of the common agricultural policy ,
 (a)    speeding up the adjustment of agricultural structures , and
 (b)    promoting the development of rural areas
 ( hereinafter referred to as " Objectives No 5(a ) and No 5(b )").
                                       Article 2
                                         Means
1.     The structural Funds ( the European Agricultural Guidance and Guarantee
Fund , Guidance Section, hereinafter referred to as the " EAGGF Guidance Section ";
the European Social Fund , hereinafter referred to as the " ESF "; the European
Regional Development Fund , hereinafter referred to as the " ERDF ") shall
contribute , each according to the specific provisions governing its operations ,
to the attainment of Objectives Nos 1 to 5 on the basis of the' breakdown given
below :
-   Objective  No 1 :  ERDF , ESF , EAGGF Guidance Section;
-   Objective  No 2 :  ERDF , ESF ;
-   Objective  No 3 :  ESF ;                    *
-   Objective  No 4 : ESF ;
-   Objective  No 5(a ): EAGGF Guidance Section ;
                  5(b ): EAGGF Guidance Section , ESF , ERDF .
 ---pagebreak---                                                              'V
   2 . The EIB , while perforj8-i -ng-''t’he tasks assigned to it by Articles 129 and
   130 of the Treaty , shatr.oobperate in achieving the objectives set out in
   Article 1 in accorcf^ffce with the procedures laic? down in its Statute .
   3.     The other'ex.vsting financial instruments may contribute , each according
   to         specific provisions governing its operations , to any measure supported
^by' one ©f" more of the structural Funds in connection with one of the
  abpLV^mentioned five objectives .         Where appropriate , the Commission shall take
^measures to enable these instruments to make a better contribution to the
  objectives set out in Article 1 .
                                             Article 3
                                       Tasks of the Funds
  1 . The ERDF shall perform the tasks entrusted to it by Article 130c of the
  Treaty by providing support in particular for :
  (a)      productive investment ;
. (b)      the creation or modernization of infrastructures essential to the
           development or conversion of the regions , frontier regions or parts of
           regions , including employment areas and urban communities ;
 ■( c )    measures to exploit the potential for internally generated development
           of the regions , frontier regions or parts of regions , including employment
        • areas and urban communities ;
  (d)      studies or pilot schemes concerning physical planning at Community level ,
           especially where frontier areas of Member States are involved .
  2.     In connection with th# task assigned to it by Article 123 . of the Treaty ,
  the ESF shall support measures , notably through vocational training and
  employment aids ,     aimed at :
  (a)     placing young people in jobs and combating long-term unemployment ;
  (b)     providing workers with the vocational skills that promote stability of
          employment ;
  Cc )    expanding employment opportunities .
  Such support shall take account of labour-market requirements and of the need
 for a consistent selection of the priorities laid down in Community and
 national employment policies .
                                                                                          S
 ---pagebreak---   3 . In line with the priorities set out in Article 39 of the Treaty in
 particular, assistance under the EAGGF Guidance Section shall be geared to
 the following tasks :                 ■   ,
  (a)     strenqthenina and reorganizing agricultural structures , including those
          Tor the marketing and processing of aqri cultural' and fishery products ,
          especially with a view to reform of The Community 's common agricultural
          policy ; ,
  ( b )v converting agricultural production and fosterinq the development of
         supplementary activities for farmers in rural areas ;
  (c)    ensurinq a fair standard of li’ving for farmers ;
  ( d ) helping to develop the1 social fabric of rural areas , to safeguard the
         environment , to preserve the countryside, ( among other things by
          securing the conservation gf natural agricultural resources ) and to
          offset the effects of natural handicaps on agriculture .
 A. The specific provisions governing operations under each structural Fund
 shall be laid down in the implementing decisions adopted pursuant to
 Article 43, 127 or 130e of the Treaty . They shall establish in particular
 the procedures for providing assistance in one of the forms defined in
 Article 3(2 ), the conditions of eligibility and the rates of assistance .
 Without prejudice to paragraph 5 , they shall also establish the arrangements
 for the monitoring , assessment ,' f i nanc i a l management and checking of measures
 and the transitional previsions necessary in relation to existing rules .
 5.     The Council , acting on the basis of Article 43,127 or 130e of the Treaty ,
 shall adopt the provisions necessary for ensuring coordination between the
different Funds , on the one hand , and between them and the EIB and the other
existing financial instruments , on the other . The Commission and the EIB
shall establish by mutual agreement the practical arrangements for coordinating
the operations .
The implementing decisions referred to in this Article shall also lay down the
transitional provisions concerning the integrated approaches adopted under
existing rules .
6 . The implementing decisions referred to in paragraphs 4 and 5 may provide
for Community financing of operations permitting the exchange of information
between Member States based on the assessment of operational programmes and
of innovative operations involving a number of Member States .
                                                                                       9
 ---pagebreak---                      II .  ARRANGEMENTS FOR STRUCTURAL OPERATIONS
                                        Article A
                       Complementarity , partnership , technical assistance
 1 . " Community operations shall be such as to complement corresponding national
 operations . They shall be established through close consultations between
 the Commission , the Member State concerned and the competent authorities .
 designated by the latter at regional , local or other level , with each party acting
 as a partner in pursuit of a common goal .      These consultations are hereinafter
 referred to as the " partnership ". The partnership shall cover the preparation ,
 financing , monitoring and assessment of operations .
 2.   Acting in accordance with the provisions of this Regulation and with the
 provisions referred to in Article 3(4 ) and ( 5 ), the Commission shall take
 the steps and measures necessary to ensure that Community operations are in
 support of the objectives set out in Article 1 and impart to national initiatives
 the necessary value added .
 3 . Within the framework of the partnership , the Commission may , in accordance
with procedures laid down in the provisions referred to in Article 3(4 ),-
contribute to the preparation , implementation and adaptation of operations by
financing preparatory studies and technical assistance operations locally , in
 agreement with the Member State concerned or with the authorities referred to
in paragraph 2 .
4 . For each objective , tasks shall be shared between the Commission and the
Member State during the preparation of operations in accordance with Articles 8
to 11 .
                                       Article 5
                                  Forms of assistance
1 . Financial assistance under the structural Funds , the EIB and the other
existing Community financial instruments shall be provided in a- variety of forms
that reflect the nature of the operations to be carried out .
2 . In the case of the structural Funds , financial assistance shall be provided
in one of the following forms :
(a)    part-financing of operational programmes ;
(b)    part-financing of an aid scheme ;
                                                                                     Л0
 ---pagebreak---   (c)   provision of global grants , as a general rule managed by an intermediary
         ( regional development corporation or other ) and allocated by it in the form
        of individual grants to final beneficiaries ;
  (d)   part-f i nanc i ng of major projects ;
  (e)   support for technical assistance or studies in preparation for operations .
 Act i no by qualified majority on a proposal from the Commission and in cooperation
 with the European Parliament , the Council may introduce other forms of
 assi stance .
 3.    In the case of the EIB and the other existing financial instruments , each
 observing its own specific rules , financial assistance shall be provided in
 one of the following forms :
 - loans or other forms of pa rt -f i nanc i ng specific investment projects ;
 - global loans ;
 - part-f inancing of technical assistance or of studies in preparation        for
    operations ;
- guarantees .
 A. Community assistance combines in an appropriate way assistance in the
form of grants and loans referred to in paragraphs 2 and 3 in order to maximize
the stimulus provided by the budgetary resources deployed, making use of
financial engineering techniques .
5 . An operational programme within the meaning of paragraph 2(a ) shall consist
 in a series of consistent multiannual measures which may be implemented through
recourse to one or more Funds , to one or more of the other existing financial
instruments , and to the EIB .
Where an operational programme involves operations under more than one Fund
and / or more than one other financial instrument , it may be implemented in the
form of an integrated approach the details of which shall be determined by the
provisions referred to in Article 3(5 ).
Operational programmes shall be undertaken on the initiative of the Member States
or of the Commission in agreement with the Member State concerned .
 ---pagebreak---                                      Artide 6
                             Monitoring and assessment
 1 . Community operations shall be monitored to ensure that the commitments
 entered into as part of the objectives set out in Articles 130a and 130c of the
 Treaty are effectively honoured . Such monitoring shall , where necessary , make
 it possible to adjust operations in line with requirements arising during
 implementation .
 2 . In order to gauge their effectiveness , Community structural operations shall
 be the subject of an ex ante and an ex post assessment designed to highlight
 their economic impact and to analyse their effects on specific structural
problems .
3 . The procedures for monitoring and assessing Community operations shall be
established by the provisions referred to in Article 3(A ) and ( 5 ) and , in the
case of the EIB , in the manner provided for in its Statute .
                                     Article 7
                             Compatibility and checks
1 . Measures financed by the structural Funds or receiving assistance from the
EIB or from another existing financial instrument shall be in keeping with the
provisions of the Treaty , with the instruments adopted pursuant to the latter
and with the objectives of Community policies , notably with regard to the rules
on competition , the award of public contracts and protection of the environment .
2.   Without prejudice to the provisions of the Financial Regulation , the
provisions referred to in Article 3(A ) and ( 5 ) shall lay down harmonized rules
for strengthening checks on structural operations . They shall be adjusted to
reflect the special nature of the financial operations concerned . The procedures
for carrying out checks on operations undertaken by the EIB are set out in its
Statute .
 ---pagebreak---                  III .  PROVISIONS RELATING TO THE SPECIFIC OBJECTIVES
                                        Article 8
                                     Objective No 1
  1.   The reqions concerned bv Objective No 1 are reoions at NUTS     level II whose
 per capita GDP , on the basis of the figures for the last tnree years , is less
  than ? 5% of the Community average .
 They also include Northern Ireland , the French overseas deoartments and other
  regions wnose per capita GDP is close to that of xne reqions referred to in the
 first suoparagraph ana whicn have to be included within tne scope of Objective No
 for special reasons .
 2.    An initial list of reoions concerned by Objective No 1 is given in Annex 1 .
 3.    The Council , acting by qualified majority on a proposal from the Commission
 and in consultation with the European Parliament , shall review the list within
 five years OT the date of entry into force of this Regulation . '
 4 . The Member States concerned by the list referred to in paragraph 1 shall
supmit to the Commission their regional development plans . These shall include
in particular :
- a description of the regional development priorities selected arid of the
    corresponding operations ;
- an indication of the use to be made, of assistance available under the Funds ,
    the EIB and the other financial instruments in implementing the plans .
Where appropriate , the regional development plans shall be supplemented, at
the Commission 's request or on the initiative of the Member States , by other
relevant information relating in particular to operations to be carried out
at national , sectoral or interregional level .
Member States shall also submit the plans referred to in Article 10(2 ) and
the operations referred to in Article 11(1 ) for the regions concerned ,
including the data relating to the operations under Article 11(1 ), which
under Community rules constitute rights for the beneficiaries .
Nomenclature of Territorial Units for Statistical Purposes ( NUTS ). Seê Eurostat ,
" Statistiques Rapides des Régions ", 25 Auqust 1986 .
 ---pagebreak---   5 . The Commission shall examine the proposed plans and operations and the other
  information referred to in paragraph 4 to determine whether they are consistent
 with the objectives of this Regulation and with the provisions and policies
 referred to in Articles 6 and 7 .   On the basis of all the plans and operations
 referred to in paragraph 4 , it shall establish , tnrough the partnership
 referred to in Article 4(1 ) and in agreement wi th the Member State concerned ,
 the Community support framework for Community structural operations , in
 accordance with the procedures referred to in Article 17 .
 The Community support framework shall cover in particular :
 “ the priorities adopted for Community assistance ;
- the forms of assistance ;
- the financing plan , with details of the amount of assistance and its source ;
** the duration of the assistance .
The Community support framework shall provide coordination of Community
structural assistance towards those of the objectives referred to in Article 1
which may be pursued in a particular region .
The Community support framework may , if necessary , be revised and adjusted ,
on the initiative of the Member State or of the Commission , in order to take
account of new relevant information and of the results obtained during
implementation of the operations concerned .
6.    The arrangements for the preparation and submission of regional development
plans and for the Community support frameworks shall be laid down in the
provisions referred to in Article 3(4 ) and ( 5 ).
7.    Assistance in respect of Objective No 1 shall be predominantly in the form
of operational programmes .
8.    With a view to facilitating the programming of operations in the regions
concerned , the Commission shall , as a guide , share out between Member States
for a period of five years 75% of the commitment appropriations allocated to
the ERDF for the purposes of Objective No 1 .
This share-out shall be based on socio-economic criteria typifying the
structural backwardness of the regions .
The resources not shared out in this way shall be used by the Commission , in
support of attainment of Objective No 1 , to promote operations of significant
interest to the Community .
 ---pagebreak---  The Member States concerned and the Commission shall , as part of their
 consultations , check on the quality and pace of implementation of the proposed
 operations .
 9 . The operations eligible for assistance under the various Funds contributing
 to attainment of Objective No 1 shall be specified in the provisions referred
 to in Article 3(4 ).
                                       Article 9
                                     Objective No 2
 1 . The declining industrial areas concerned by Objective No 2 shall comprise
 regions , frontier regions or parts of regions ( including employment areas and
urban communities ).
 2.    The areas referred to in paragraph 1 must represent or belong to a NUTS
 level III territorial unit which satisfies the following criteria :
 ( a ) the average rate of unemployment must have been at least 15% above the
        recorded Community average in the last three years for which statistics
        are avai lable ;
 (b)    the percentage share of industrial employment in total employment must
        have exceedeo the Community average in any of the last ten reference
        years ;
 (c)    there must have been an observable fall in industrial employment compared
        with the reTerence year chosen in accordance with point ( b ) .
Community assistance may extend over adjacent areas satisfying the criteria in
points ( a ) to ( c ).
3.     The following may also qualify for Community assistance :
(a)     areas which have experienced substantial job losses in certain specific
        industries over the last three years ;
(b)     areas threatened with substantial job losses and covered by a restructuring
        plan in specific industries ,
with those losses resulting in a serious aggravation of unemployment .
The specific industries referred to are coal , steel , textiles and clothing ,
and shipbuilding . Other industries may be considered where the Commission
so decides , having regard to the general developments in those industries in
the Community .
                                                                                  /fc>
 ---pagebreak---   4.   As soon as this Regulation has entered into force , the Commission shall ,
  in accordance with the procedure laid down in Article 17    and on the basis of
 paragraphs 2 and 3 above , establish an initial list of the areas referred to
 in paragraph 1 .
 In establishing the list and in defining the Community support framework
 referred to in paragraph 8 below , the Commission shall seek to ensure that
 assistance is genuinely concentrated on the areas most seriously affected ,
 at the most appropriate geographical level .
 As soon as this Regulation has been adopted . Member States shall supply to
 the Commission all information which might be of assistance to it in
 establishing this list .
 5.   The list of areas shall be reviewed by the Commission every year .   However ,
the assistance granted by the Community in respect of Objective No 2 in the
various areas listed shall be planned and implemented on a three-yearly basis .
 6 . Not later than three years after this Regulation enters into force , the criteria
 laid down in paragraphs 2 and 3 shall be reviewed by the Council , acting by
qualified majority on a proposal from the Commission and in cooperation with
the European Parliament .
7 . The Member States concerned by the list referred to in paragraph 4 and by
the assistance referred to in paragraph 3 shall submit their regional and social
conversion plans to the Commission . Those plans shall include in particular :
- a description of the conversion priorities selected for the areas concerned
    and of the corresponding operations ;
- an indication of the use to be made of assistance available under the Funds ,
    the EIB and the other financial instruments in implementing the plans .
Where appropriate , the conversion plans shall be supplemented , at the Commission 's
request or on the initiative of Member States , by other relevant information
relating in particular to operations to be carried out at national , sectoral
or interregional level .
8.    The Commission shall examine the proposed plans to determine whether they
are consistent with the objectives of this Regulation and with the provisions
and policies referred to in Articles 6 and 7 .    It shall establish , through
the partnership defined in Article 4(1 ), in agreement with the Member State
concerned and in accordance with the procedures referred to in Article 17,
the Community conversion support framework for Community structural operations .
 ---pagebreak---   The Community support framework shall cover in particular :
 - the priorities adopted for Community assistance ;
 - the forms of assistance ;
 - the financing plan , with details of the amount of assistance and its source ;
 - the duration of the assistance .
 The Community support framework may , if necessary , be revised and adjusted to
 take account of new relevant information and of the results obtained during
 implementation of the operations concerned .
 9 . The arrangements for the preparation and submission of regional and social conversion
 plans and for the Community support frameworks shall be laid down in the
provisions referred to in Article 3(4 ) and ( 5 ).
 10 .  Assistance in connection with Objective No 2 shall be predominantly in
the form of operational programmes .
 11 . The operations of the Funds contributing to Objective No 2 shall be
specified in the provisions referred to in Article 3(4 ).
 12 . By way of derogation from the provisions of paragraph 4 above and in order
to facilitate the restructuring endorsed by the Community of declining industrial
sectors , the ESF may provide assistance in favour of workers directly affected
by rest ructuri ng in areas other than those concerned by the criteria of
paragraphs 2 and 3 .
                                     Article 10
                              Objectives No 3 and No 4
1 . Within   the framework of the provisions implementing this Regulation , the
Commission   shall establish for a period covering a number of years general
guidelines   that set out and clarify the Community choices and criteria
concerning   action to combat long-term unemployment ( Objective . No 3 ) and to
facilitate   the occupational integration of young people ( Objective No 4 ).
                                                                                       П
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 2 . Member States shall submit their plans for combating long-term unemployment
  ( Objective No 3 ) and for facilitating the occupational integration of young
 people ( Objective No 4 ) to the Commission . Those plans shall include in
 particular :
 - information on the employment and labour market policy implemented at national
      level ;
 - an indication of the priority operations undertaken for a specific number
     of years to help those sections of the population concerned by Objectives No 3
     and No 4 , and resulting from the general guidelines laid down by the
    Commission ;
- an indication of the use to be made of assistance available under the ESF -
     where appropriate , in conjunction with assistance from the EIB or other
     Community financial instruments - in implementing the plans .
3.      The Commission shall examine  the proposed plans to determine whether they
are consistent with the objectives of this Regulation , with the general
guidelines laid down by it and with the provisions and policies referred to
 in Articles 6 and 7 . It shall establish for each Member State , through the
partnership referred to in Article 4(1 ), in agreement with the Member State
concerned and in accordance with the procedures referred to in Article 17 , the
Community support framework for the attainment of Objectives No 3 and No 4 .
The Community support framework shall indicate in particular :
- the specific priorities adopted for Community assistance in respect of
    the persons concerned by Objectives No 3 and No 4 ;
- the forms of assistance ;
- the financing plan , with details of the amount of assistance and its source ;
- the duration of the assistance .
The Community support framework may , if necessary , be revised and adjusted
on the initiative of the Member State concerned or of the Commission in the
light of relevant new information and of the results obtained during
implementation of the operations concerned .
4 . The arrangements for the preparation and submission of plans for combating
long-term unemployment and facilitating the occupational integration of young
people and for the Community support frameworks shall be laid down in the provision :
referred to in Article 3(4 ) and ( 5 ).
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 5.    Assistance in connection with Objectives No 3 and No A shall be predominantly
 in the ■form of operational programmes .
 6 . The operations eligible for ESF assistance in connection with Objectives No 3
 and No A shall be specified in the provisions referred to in Article 3(A ).
                                      Article 11
                                    Objective No 5
 1 . The arrangements for the implementation of operations connected with the
 accelerated adaptation of agricultural structures ( Objective No 5(a )) shall
 be decided on within the framework of the provisions adopted pursuant to
 Article 3(A ) and ( 5 ).
 2 . The criteria to be applied in selecting the rural areas concerned by
 Objective No 5(b ) shall be decided on within the framework of the provisions
 adopted pursuant to Article 3(A ) and ( 5 ).
 3 . The Member States concerned by the pursuit of Objective No 5(b ) shall
 submit their development plans for rural areas to the Commission . Those plans
 shall include in particular :
- a description of the rural development priorities and of the correspondi ng
    measures ;
- an indication of the use to be made of assistance available under the different
    Funds , the EIB and the other financial instruments in implementing the plans .
The Commission shall examine the proposed plans to determine whether they are
consistent with the objectives of this Regulation and with the    provisions and
policies referred to in Articles 6 and 7 . It shall establish ,   through the
partnership referred to in Article A(1 ), in agreement with the   Member State
concerned and in accordance with the procedures referred to in    Article 17 , the
Community support framework for rural development .
The Community support framework shall cover in particular :
- the rural development priorities adopted for Community assistance ;
- the forms of assistance ;
- the financing plan , with details of the amount of assistance and its source ;
- the duration of the assistance .
 ---pagebreak---  The Community support framework may , if necessary , be revised and adjusted on
 the initiative of the Member State concerned or of the Commission in the light
 of new relevant information and of the results obtained during implementation
 of the operations concerned .
 The arrangements for the preparation and submission of rural development plans
 by Member States shall be laid down in the provisions referred to in
 Article 3(4 ) and ( 5 ).
4.   The part-financing of national aids and of operational programmes shall be
the preferred form of assistance .
 5 . The operations eligible for assistance under the different Funds in
connection with Objective No 5 shall be specified in the provi sions ' referred
to in Article 3(4 ).      In the case of the EA6GF Guidance Section , those provisions
shall distinguish between operations to be financed in connection with the
adaptation of agricultural structures and operations to be financed in
connection with rural development .
                                 IV .  FINANCIAL PROVISIONS
                                          Article 12
                               Fund resources and concentration
1.   Within the framework of the multiannual budget forecasts , the Commission
shall present each year a five-year projection of the appropriations needed
for the three structural Funds taken together . The projection shall be
accompanied by an indicative breakdown of the commitment appropriations to
be assigned to each objective . In drawing up each preliminary draft budget ,
the Commission shall , where the allocation for the structural Funds is concerned ,
take account of the indicative breakdown by objective .
2.   The commitment appropriations for the structural Funds taken together shall
be doubled in real terms between 1987 and 1993 .
3.   A major effort shall be made to concentrate budgetary resources on the
less-developed regions covered by Objective No 1 .        The contributions of the
structural Funds to these regions shall be doubled in real terms by 1992 .
4 . The Commission shall ensure that , in the framework of the additional resources
for the regions covered by Objective No 1 .- a special effort will be undertaken
for the least prosperous regions .
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 5.    The ERDF may devote up to 80% of its appropriations to Objective No 1 .
                                      Art i cle 13
                        Differentiation of rates of assistance
 1.    The Community contribution to the financing of operations shall be
 differentiated in the light of the following :
 - the seriousness of the specific , notably regional , problems to be tackled ;
 - the financing capacity of the Member State concerned ;
 - the special importance attaching to measures from a Community viewpoint ;
- the special importance attaching to measures from a regional and a sectoral
    viewpoint ;
- the particular characteristics of the types of measure proposed .
2.    Such differentiation shall take account of the planned link between grants
and loans referred to in Article 5(4 ).
3.    The rates of Community assistance granted by the Funds in respect of the
various objectives listed in Article 1 shall be subject to the following
ceilings :
- a maximum of 75% of the total cost and , as a general rule , at least 50% of
   public expenditure in the case of measures carried out in the regions eligible
    for assistance under Objective No 1 ;
- a maximum of 50% of the total cost and , as a general rule , at least 25% of
   public expenditure in the case of measures carried out in the other regions .
The minimum rates of assistance laid down above shall not apply to revenue
bearing investment .
4 . Preparatory studies and technical assistance measures undertaken on the
initiative of the Commission may be financed at 100% of total cost .
5 . The arrangements for implementation of this Article shall be laid down in the
implementing decisions referred to in Article 3(4 ) and ( 5 ).
                                                                                 21
 ---pagebreak---                                  V.   OTHER PROVISIONS
                                        Article 14
                      Combination and overlapping of assistance
  1.  For any given period , an individual measure or operation may benefit from
  assistance from only one Fund at a time .
  2.  An individual measure or operation may benefit from assistance from a
  Fund or other financial instrument in respect of only one of the objectives
  set out in Article 1 at a time .
  3 . When implemented in the less-developed regions , operations in connection
  with all the objectives specified in Article 1 of this Regulation shall be
  accounted for under Objective No . 1 .
 4.   The arrangements governing the combination and overlapping of assistance shall
 be laid down in the provisions referred to in Article 3(4 ) and ( 5 ).
                                       Article 15
                               Transitional provisions
 1 . This Regulation shall not affect multiannual operations approved by the
 Council or by the Commission , under the existing rules governing the Funds ,
 before this Regulation is adopted .
 2 . Applications for assistance from the Funds towards a multiannual operation
 which are submitted after this Regulation is adopted but before the provisions
 referred to in Article 3(4 ) and ( 5 ) enter into force shall be considered in
 the light of this Regulation . Any approval of Community assistance shall be
 given in accordance with the forms and procedures laid down by the rules in
 force at the time the application is approved .
 3 . The provisions in this Regulation which require the Member States to draw
 up plans and operational programmes shall be implemented progressively in
.accordance with the transitional provisions referred to in Article 3(4 ) and ( 5 ).
 The Commission shall help with implementation in particular by means of the
 technical assistance measures referred to in Article 4(3 ).
                                                                                 S2
 ---pagebreak---                                        21
 4 . The implementing decisions referred to in Article 3(4 ) and ( 5 ) shall lay
 down the transitional provisions necessary in relation to existing rules .
                                       Article 16
                                         Report s
 Before 1 November of each year , the Commission shall present to the Council ,
 to the European Parliament and to the Economic and Social Committee a report
 on the implementation of this Regulation during the preceding year .
 In this report , the Commission shall in particular indicate what progress has
been made towards achieving the objectives set out in Article 1 and in
 concentrating assistance as required by Article 12 .
             ■                         Art i cle 17
                                       Commi t tees
 1.  In implementing this Regulation , the Commission shall be assisted by three
advisory committees dealing respectively with :
- Objectives No 1 and No 2 ;
- Objectives No 3 and No 4 ;
- Objectives No 5(a ) and No 5(b ).
2 . The provisions setting out the arrangements relating to the functioning of
the committees referred to in paragraph 1 and the transitional provisions
concerning the existing committees in the framework of the management of the
 Funds , shall be Laid down in accordance with Article 3(4 ) and ( 5 )..
                               VI .   FINAL PROVISIONS
                                      Art i c le 18
                                    Implémentation
The Commission shall be responsible for the implementation of this Regulation .
                                                                                 25
 ---pagebreak---                                      Article 19
                                  Entry into force
 This Regulation shall enter into force on 1 January 1989 .
Subject to the transitional provisions laid down in Article 15(2 ) and ( 3 ), it shal
be applicable as from that date .
The date of entry into force may be deferred by the Council , acting by a qualified
majority on a proposal from the Commission , to allow for the entry into force
of the provisions referred to in Article 3(4 ) and ( 5 ).
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at'
                                                          For the Council
 ---pagebreak---                                                       Annex 1
                        Regions concerned by Objective No 1
 Spain :         Andalusi a
                 Asturias
                 Casti le-Leon
                 Casti le-La Mancha
                 Ceuta-Me l i l l a
                 Va lene i a
                 Extremadura
                 Galicia
                 Canary Islands
                 Murcia
France :         French overseas departments ( DOM )
                 Corsica
Greece :         the entire country
I re land :      the entire country
Italy :          Abruzzi
                 Basilicata
                 Calabria
                 Campania
                 Moli se
                 Apulia
                 Sardinia
                 Si ci ly
Portuga l :      the entire country
United Kingdom : Northern Ireland
 ---pagebreak---                                                     Annex 2
                           STATEMENT BY THE COMMISSION
The Commission states that 6NP per capita of the Member State will be a
criterion to be taken into account together with the criterion of GNP of
the region in determining the least prosperous regions for which a special
effort will be undertaken and that Ireland will be included in those regions .