CELEX: 51975PC0126
Language: en
Date: 1975-04-16
Title: Proposal for a Council Decision on intervention by the Social Fund to encourage structural adjustment measures .(Article 4 of the Council Decision of 1 February 1971) (submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 126
Vol. 1975/0044
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(75 ) 126 final
                                            Brussels , 16 April 1975
             Proposal for a Council Decision on intervention by the
             Social Fund to encourage structural adjustment measures
            .( Article 4 of the Council Decision of 1 February 1971 )
                (submitted by the Commission to the Council )
COM(75 ) 126 final
 ---pagebreak---                                      - 2 -
 ■RXPLAMTOiY MEMORANDUM :
 1 . At the " summit " meeting held in Paris in December 1974 , the Heads of
       ?ove-'"nent expressed concern about the employment situation in the
      Community which had "been steadily deteriorating . They stat-ed . that it
     was essential to - take " vigorous and coordinated actior at CommirH ty
      level to deal with the problem of employment " and referr 1 to the pos­
      sibility of increasing the resources of the Social Fund to take account
     of "the problems of the regions and categories of workers most affected
     by employment difficulties ". The concept of assistance from the Social
     Fund was supported by both sides of industry .
     Althou^i observers in our countries are not all in agreement on the
     nature and expected duration nf the recession or crisis affecting the
     Community , it is generally acknowledged that the economic phenomena-
     comprise rapidly growing problems of structural adjustment or reedapta–
     tionr. fit the employment level , these structural changes will inevitably
     ent'ail greater mobility of labour , taking the form more especially of
     transfers to zones of new activities , changes within undertakings and
     sectors undergoing redevelopment or diversification .
2 . In the Social Fund , the Community has independently of other possible
     and desirable     measures , an instrument for encouraging a significant
     and exemplary common effort capable of improvinr the adan^at ion
    between supply and demand on the labour market recess : ted by structural
                     '                                                          changes .
     In view of the number of persons affected by restructuring, it seems
    perfectly .justifiable for the Community to take specific joint action
    under Article 4 of the Decision of 1 February 1971 , by opening the
    Social Fund to a carefully chosen selection of intervention measures .
                                                                   • /• ••
 ---pagebreak---  It is clear that such an opening will not affect the intervention me­
 thods already used by the Social Fund to support operations in regions
 in difficulty , particularly those with an under developed industrial
 structure . This fact will have to be taken into account in future
 decisions on aid under Article 5 , which is specifically   designed to
help with such regional problems . Similarly , it wiiil be  possible , by
means of assistance from' the Fund pursuant to Article k    of the
Decision of June 197^ on migrant workers , to solve s^rne   of difficulties
encountered by migrant workers .
Joint specific action could primarily encourage vocational training
' - orations facilitating new forms of growth or rapid expansion , of value
v    the context of the Community 's medium-term economic development
prospects    As regards the Community , this means taking ; art in the
effort to rapidly provide a supply of skilled labour for a limited num­
ber of activities which guarantefe , in particular , easier access to new
trades : projects on the development of energy resources or the more
rational use of energy , new production formulae or action corresponding
to priority collective needs , e - g ., in the field of joint transport or
the improvement of the quality of life# Other operations chargeable to
the Fund will be those dealing with staff training and recycling projects
forming part of structural adjustment , reconversion or diversification
measures , in sectors or -branches where present or planned changes are
clearly affecting employment structures . Unless unemployment trends and
sectoral employment prospects are suddenly reversed , such sectors or
branches will primarily be found among those often referred to in recent
consultations held at'      Community level : motor vehicle , building ,
textile and certain sections of the chemical industries , as well as
certain associated or sub-contracted activities .
 ---pagebreak--- Lastly , each operation will have to form part ,of a group of projects
which in turn will form part of a programme drawn up at the level of
either the sector , the Member S+ate , the region or even the under­
taking , stating the economic context and the scope of the action
taken to adapt and develop the undertakings . The Commission thus
hopes to ensure that the interventions receiving assistance from the
Fund are sufficiently guaranteed as to their advisability and efficacy
in the national context , and make it possible to gradually ensure that
they are consistent with the economic and social guidelines of the
Community .
Pursuant to the desire expressed at the " summit " which was parti­
cularly concerned with the categories of persons and regions most
affected by employment difficulties , assistance from the Fund should
give priority to persons in sectors or branches where the unemployment
                                 n 1"" women        /
rate has risen sharply and to young people , a traditionally one of the
most vulnerable categories in times of crisis or recession . It seems
reasonable , however , to restrict such priority to persons in regions
most affected by employment difficulties .
Women will be granted priority on the basis of selective criteria
and for specific projects resisting from the work connected with the
 implementing of the program"1 " •»*fs "f" e'Ted to in the communication from
the Commission to the Council (" Doc . COM ( 75 ) 36 ).
 ---pagebreak--- The Council should also list the types of aid which could receive
assistance from the Fund within the framework of its Decision in
accordance with Article
Driring the prior consultations , it appeared that the Council was not
likely , at this stage , to approve the setting-un of a new aid enabling
the Fund to bear the costs of expenditure on interim allowances or
other forms of guaranteed income .
In implementing its Decision , the Commission therefore proposes to
consider only the aids referred to in the Regulation containing the
list of aids­
 ---pagebreak---                                        - 6 -
                  Proposal for a Council Decision on intervention by the
                  Social Fund to encourage structural adjustment measures
                  ( submitted by the Commission to the Council )
 The Council of the European Communities ,
 Having regard to the Treaty establishing the European Economic Conpnunity ;
 Having regard to the Council Decision of 1 February 1971 ( l ) on the reform
 of the European Social Fund , and in particular Article 4 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 the methods of action and operation of the Social Fund are defined
 by Council Regulation ( EEC) no 2396/71 of 8 November 1971 implementing the
 Council Decision of 1 February 1971 on the reform of the European Social Fund :
                        State or/
 Whereas the Heads of /Government meeting in Paris on 10 December 1974 called
 for the implementation of " vigorous, and co-ordinated action at Community
 level to deal with the problem of employmentf' strengthened , if necessary , by
 greater use of the resources of the European Social Fund , with due regard to
the problem of the regions and categories of workers most affected by
employment difficulties j
Whereas , in view of the employe             situation in the Community , it is
necessary to take specific commrm ac+ion to ensure adjustment of supply
and demand on the labour market *
 ______                                                           •/• • *
 ( 1 ) OJ . No . L 28 ,   4.2.1971 , p. 15
 ---pagebreak---                                            I
                                  - 7 -
 Whereas , to enable motility to be achieved under good conditions , the opera­
 tions to "be granted assistance from the Social Fund must "be provided for in
 restructuring or development programmes capable of providing the labour
  force with productive employment or re-employment ;
Whereas such programmes should encourage the development of the economic "branches
the expansion of which is particularly desirable from the standpoint of the
medium–term economic development prospects in the Community and facilitate the
structural adjustment of the sectors most affected ^
Whereas economic restructuring is liable to particularly effect certain cate­
gories of persons and certain regions which should therefore be given priority ;
Whereas                 the European Social Fund decided on by the Council makes
it possible to contribute to the costs resulting from measures taken or to be
taken in the Member States to boost employment and the goegraphic or vocational
mobility of persons whose .jobs are jeopardized by the economic difficulties in
the sectors being restructured ;
Whereas the operations and working methods of the Fund are defined in Council
Regulation ( EEC ) no . 2396/71 of 8 November 1971 implementing the Council
Decision of 1 February 1971 on the reform of the European Social Fund ;
HAS DECIDED AS FOLLOWS :
Article    1
1 . Pursuant to Article 4 of the Council Decision of 1 February 1971 , the as­
    sistance of the Social Fund may be granted for operations likely to facili­
    tate the geographical and/or vocational mobility of persons seeking stable
    employment in economic activities whose development or structural reorgani­
    zation require adequately skilled labour i
                                                                      •/•*O
 ---pagebreak---  2 . For the purpose  of applying the present Decision and in accordance with
     the criteria referred to in the above paragraph , the operations have been
     selected which are likely to encourage :
     – the development of activiiicc linked with the restructuring of
        the energy sector ;
     – the promotion of activities corresponding to priority Community needs ,
     – the structural adjustment , diversifies *:5 on and reconversion of sector
        branches or production activites wi + h structural problems seriously
        affecting employment to development activities .
Article     2
In order to receive assistance from the Fund , operations concerning persons
referred to "in Article 1 must run in line with the implementing of adjustment
and development programmes                                    consistent with the
economic and social objectives of the Community . Such programmes will outline
the economic contest of the projects that they organize and define the
objectives and resources .
Article    3
Within the terms and limits of Article 1 , priority shall be granted to opera­
tions carried out in regions most affected by enployment difficulties ,
benefiting :
– persons employed in sectors- or branches with structural problems seriously
    affecting employment ;
– young people under 25 years       '•"■^en who are ^unemployed or seeking
    employment .
 ---pagebreak---                                 - 9 -
Article   4
Pursuant to Article 1 , the assistance of the Fund may "be granted for aid ,
listed in Regulation ( EEC ) n° 2397/71 on aid which may qualify for assistance
from the European Social Fund .
Article  5
This Decision shall enter into force on the fifth day following its " publica­
tion in the Official Journal of the EMlopean Communities .
It is applicable to operations for which the proposal has received the agree­
ment of the Commission "before the expiry of a delay of two     years after the
coming into force of this Decision ^ vn thout prejudice to the implementation
 of Article 11 of the Council Decision of 1 February 1971 on the reform
of the European Social Fund .