CELEX: 51979PC0756
Language: en
Date: 1979-12-10
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) ON COMMUNITY AID FOR INDUSTRIAL RESTRUCTURING AND CONVERSION OPERATIONS IN THE MAN-MADE FIBRES SECTOR (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 756
Vol. 1979/0251
 ---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), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
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
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, 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.
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), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM < 79 ) 756 final
                                                  Brussels . 10th December 1979
                      PROPOSAL FOR A COUNCIL REGULATION < EEC )
                ON COMMUNITY AID FOR INDUSTRIAL RESTRUCTURING AND
               CONVERSION OPERATIONS!!^ ^E ^MAN-MADE FIBRES SECTOR
                                                     •s'        "
                                           vsν "χ
                                                         ■ V-'/
                                                I
                  ( presented by the Commission to the Council )
COM ( 79 ) 756 final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
  i
                                       *         .             -
The Council and Parliament entered appropriations for commitment totalling
20 million EUA and appropriations for payment toalling 17 million EUA in
the 1978 Budget for _ industrial conversion and restructuring operations .
These appropriations Mere carried over to the 1979 Budget and Mi 11 lapse
at the end of 1979 if they have not been committed and paid by that time ." '
                                                   ».            »
On 26 October , 1978, the Commission sent the Council a proposal for a
                                                                     *
Regulation on the use of the appropriations . On 11 January, 1979, this
proposal Mas supplemented by proposals for Decisions bringing shipbuilding
and the textile industry, particularly man-made fibres , Mithin the scope of
the Regulation . The proposal for a Regulation Mas not discussed by the
Permanent Representatives Committee unti I 7 November , 1979 : as a result ,
it Mill not come into force in time to serve as the legal basis for using
the appropriations before the end of the year .
The Commission therefore suggests that the 1978 appropriations be used on
an ad hoc basis for restructuring and conversion operations in the man-made
fibres sector . This exceptional procedure Mould cover the use of only part
of the 1978 appropriations ; consequently, it Mould not set a precedent for
the use of appropriations entered in the 1979 Budget . The choice of the
man-made fibres, sector is justified by the fact that it is undergoing a
crisis of excess production capacity Mhich has prompted the industry to
seek Mays of bringing in the necessary rationalization measures . The
Commission believes that ; by using the appropriations in question, it can '
make an effective contribution to achieving these objectives .
The appropriations Mould be used exclusively to finance investment projects
Mith the folloMing aims :
- to create jobs in activities other than man-made fibres production Mhich
    Mould replace the fibre production activities of the companies involved
    in the industry 's rationalization efforts ;
 ---pagebreak--- - to adapt the production apparatus in line with the restructuring objec­
  tives , which are well known to and accepted by Community producers ,
  without increasing man-made fibre production capacity .
To enable this financing operation to go ahead , the Commission presents
the attached proposal for a Regulation : it incorporates the basic features
of the proposal for a Regulation of 26 October , 1978, which was endorsed
by Parliament and the Economic and Social Committee , but pertains solely
to the man-made fibres sector , as advocated by the Commission in its pro­
posal for a Decision of 11 January, 1979 .
As there is very little time until the end of the year, it is proposed
that the aid should be in the form of investment premiums . The aid would
be provided for projects submitted by the industry which the Commission
has selected on the basis of the criteria and procedures set out in the
proposal for a Regulation .
Since time is so short and Parliament and the Economic and Social Committee
have endorsed the proposal for a Regulation of 26 October , 1978, the
Commission considers that it is not necessary to consult these two bodies
again .
 ---pagebreak---                                           PROPOSAL FOR
                                      COUNCIL REGULATION ( EEC ) n°
ON COMMUNITY AID FOR INDUSTRIAL RESTRUCTURING AND CONVERSION OPERATIONS
IN THE MAN-MADE FIBRES SECTOR                                              '
                                                                  ♦
                                                                                   *
THE COUNCIL OF THE EUROPEAN COMMUNITIES , , . ■
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 235 thereof , .
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament ,
                                                                              ( 2)
Having regard to the Opinion of the Economic and Social Committee ,
                                              ( 3)
Whereas a proposal for a Regulation                on Community aid for industrial
restructuring and conversion operations has been laid before the Council ,
Whereas the Commission has been notified of a number of investment projects
which it considers to be eligible for aid under the criteria set out in
the abovementioned proposal for a Regulation ;
Whereas the situation in the man-made fibres sector justifies immediate
action as a priority measure , to support the rationalization measures
taken by the industry in the Community and to reduce its production
capacity ,                                            .
 0 ) OJ n    C 127 , 21 / 5 / 79 , p. 52
 ( 2 ) OJ n° C 128 , 21 / 5 / 79 , p. 1
 ( 3 ) OJ n° C , 16 / 1 1 / 78 , p. 3
 ---pagebreak--- HAS ADOPTED THIS REGULATION :                                                  _
                                              Article 1
!«        Tne purpose cf the aids granted under this Regulation -shall be to
          assist the B>an-m.?,de fibres industry to finance :
          -       xr>ves ttnertts tor the res truc'txir i ->.<? of industrial establishments
   ,              operating in the nan-made fibres sector , provided " that . the aim
                  of cues 3.;*v«?.s tar»e nts is '_o reduce production capacity ;
     , ~          conversion inves tiuenfcs carried out. by such estabi i shiuents for the
                  purpose of changing to other types of activity ;
                                                                                      concerned
                  irivestmei-.ts to help create a by other undertakings } ■ in - the areas /
              '   ( eiftV'lcyuieot catchment areas .,) .and. in other fields of activity ,
                  new . joes intented primarily for workers made redundant by the
                  restructuring or by ' the total or partial closure of such
                  establishments .
2.        Any decisions by the Commission to grant such aids shall be taken
          before 3 ! 'December 197S .
      V
                                              Article 2
!=        The aid referred to in Article 1 shall take the form of investment
          premiums .
2.        Such premiums shall amount to 5.7 % of the investment ; they shall
          be raised to 9.5 % where the investment is undertaken ;
        . a ) in the lastfavoured regions or in regions or areas particularly
                affected by restructuring operations ;                           -
          b ) by small and medium- sized enterprises .
 ---pagebreak--- The investors shall supply any information which the Commission
may deem necessary and shall accept the inspections required for
checking that the projects are being properly carried out . A
contract shall be concluded to this effect between the investor to
whom the aid is granted and the Commission . This contract shall
also establish the procedures for payment of the aid .
                           Article 3
If an investment project which has received aid has not been carried
out as planned or if the conditions of this Regulation are not
fulfilled , the aid may be withdrawn in whole or in part by the
Commission .
Member States shall make available to the Commission all information
required for the application of this Regulation and shall take all
steps to facilitate such supervision as tlie Commission may consider
useful , including on-the-spot checks .
Notwithstanding verification carried out by Member States in
accordance with national laws , regulations and administrative
provisions , and without prejudice to the provisions of Article 206
of the Treaty or to any inspection arranged pursuant to Article 209 (c )
of the Treaty , the competent authorities of the Member State shall ,
at the request of the Commission and with the agreement pf the
Member State , carry out on-the-spot checks or enquiries about the
operations financed . Officials of the Commission may take part in
such checks or enquiries . The Commission may fix time limits for
carrying out such checks .
The objective of these on-the-spot checks or enquiries about operations
financed shall be to verify :
a ) the existence of supporting documentary evidence and its conformity
    with the, operations financed ;
 ---pagebreak---                                      -4-
     b ) the conditions under which the operations financed are executed
         and inspected ;
     c ) the conformity of the work completed with the operations financed .
                               Article 4
The provisions of this Regulation shall not prejudice the application
of Article 92 , 93 and 94 of the Treaty .
                               Article 5
This Regulation shall enter into force on the day following its publication
in the Official Journal of the European Communities . .
 ---pagebreak---                              FINANCIAL RECORD
1 . Title of budget heading -
    Article 375 - industrial     restructurations and reconversion .
2 . Legal basis - Art . 235
3 . Description of action :
    Action in the synthetic fibres sector .
                                                       .               »
4 . Justification    of action :  -                                  '
    To see explanatory memorandum
5.   Financial implication of action on intervention expenditure :
     5.1        action of limited duration : total cost over whole
                period :   14.920.000 E.U. A.
     5.2 . Proportion of financing ( in % ) coming from the Community budget ,
           national budgets and other sectors ( or national level).
6 . Financial implications in respect of the number of personnel and
    current operations : none .
7 . Financing of intervention spending .
    7.1 .  Possible financing by credits written into the elevant budget
           heading .
8 . Type of control to tbe applied : normal