PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 724/75 ESTABLISHING AN EUROPEAN REGIONAL DEVELOPMENT FUND

No C 336/60 Official Journal of the European Communities 23. 12. 81
Proposal for a Council Regulation amending Regulation (EEC) No 724/75 establishing a
European Regional Development Fund
(Submitted by the Commission to the Council on 29 October 1981)
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 Par-
liament,
Having regard to the opinion of the Economic and Social
Committee,
Whereas Council Regulation (EEC) No 724/75 of 18
March 1975 establishing a European Regional
Development Fund('), as last amended by Council
Regulation (EEC) No 3325/80 (2), established a
European Regional Development Fund designed to
correct the main regional imbalances in the
Community;
Whereas Article 22 of the said Regulation provides that
the Council, on a proposal from the Commission, should
reconsider this Regulation before 1 January 1982;
Whereas the coordination of national regional policies
with each other and with that of the Community is an
essential element in Community regional policy, intended
to promote the convergence of national economies and a
more balanced distribution of economic activities within
Community territory;
Whereas it appears necessary, in view of the trend of the
economic and social situation of the Community, on the
one hand to adapt the section of the Fund, which is
divided in national quotas, to concentrate Fund
assistance on regions experiencing particularly serious
structural problems and on the other hand to allocate
more credits from the section not distributed in national
quotas to regions particularly affected by recent, serious
problems of industrial decline or by the consequences of
certain Community policies;
Whereas the regions with particularly serious structural
problems in which the Fund is called upon to give
assistance must be decided according to Community
criteria, taking account in particular of the relative
intensity of the social and economic problems of regions,
in relation to the Community average, which problems
are to be assessed both by the level of economic
development and by the situation with regard to
employment;
Whereas to improve the impact of Fund assistance and the
complementary character of Fund assistance measures
and those of national and regional authorities, it is
appropriate to replace the system of financing individual
investments gradually by a system of financing
programmes, which contracts may concern both
infrastructure and national aid systems in industrial,
handicraft and service activities;
Whereas the economic situation and that of employment
in the Community require seeking the best possible use of
growth potential in less favoured regions;
Whereas to this end it is desirable to broaden the field of
aid of the section of the Fund divided in national quotas to
include financing of operations designed to promote the
local development potential of regions;
Whereas accelerated Fund payments are of a nature to
facilitate realization of measures assisted by the Fund;
whereas the introduction, under certain conditions, of a
system of advance payments complies with this
purpose;
Whereas the eminently Community character of specific
measures of regional development justifies their adoption
by the Commission after consulting the Fund
Committee;
Whereas to enable a better integration of financial
resources, both Community and national, in the areas
affected by especially serious problems, due particularly
to delayed development or industrial or urban decline, it
is appropriate to promote the implementation in those
areas of integrated development operations, closely
concerted between the Community and the national
authorities concerned,
HAS ADOPTED THIS REGULATION:
Article 1
The,text of Regulation (EEC) No 724/75 of 18 March
1975 establishing a European Regional Development
Fund is replaced by the text annexed to this Regulation.
Article 2
This Regulation shall enter into force on 1 January
1982.
This Regulation shall be binding in its entirety and
directly applicable in all Member States.
(') OJNoL73,21. 3. 1975, p. 1.
(2) OJ No L 349, 23. 12. 1980, p. 10.
23. 12. 81 Official Journal of the European Communities No C 336/61
ANNEX
Regulation concerning the coordination of regional policies and the European Regional
Development Fund
Delegations from the present text of the Regulation are indicated by the sign [. . . ] , and
additions or amendments are printed in italic.
TITLE I
COORDINATION OF REGIONAL POLICIES
Article 1 (new)
1. In order to contribute to the achievement of a high
degree of convergence of the economies of Member States
and a more balanced distribution of economic activities
throughout the Community, Member States and the
Commission shall institute coordination between
national regional policies and between those policies and
Community regional policy according to the procedures
provided for in Article 2 below.
2. The object of such coordination shall be:
— the adaptation of national regional policies so as to
avoid, in particular, contradictory results;
— the closer convergence between national regional
policies and Community objectives and priorities in
particular the regional;
— to ensure especially that aids take account of the
severity of the regional problems existing within each
member country and at Community level.
3. This coordination must take account of the impact
upon regions of the economic and sectoral policies of the
Community and of the Member States.
Article 2 (new)
1. Preparation of the periodic report and examination
of regional development programmes and the regional
impact assessment shall be instrumental in promoting the
said coordination, with a key role also being performed
by coordination of general regional aid schemes.
2. The Commission, working in close association
with the Regional Policy Committee, shall prepare a
periodic report on the situation and socio-economic
changes in the regions of the Community and on national
regional policies. To this end, Member States shall
provide the Commission with the relevant information.
This report shall be prepared at regular,
two-and-a-half-year intervals, with every other report
coinciding with the examination of the medium-term
economic policy programmes. On the basis of this report,
the Council, acting on a proposal from the Commission
and after consulting the European Parliament and the
Economic and Social Committee, shall adopt the regional
policy guidelines and priorities.
3. (a) Member States shall communicate to the
Commission their regional development
programmes, and any amendments thereto, for
the regions and areas covered by a regional State
aid scheme. Such programmes shall be prepared in
accordance with the joint outline drawn up by the
Economic Policy Committee (J) and in the light of
the Commission recommendation of 23 May
1979 (2). They shall be indicative in nature and
shall specify the objectives of the development of
the region concerned and the means to be
employed. They shall be prepared in close
association with the regional authorities
concerned. When communicating these
programmes, Member States shall transmit to the
Commission the information concerning, where
their entire territory is concerned, the essential
public measures that are likely to influence the
regional balance, including expenditure in each
region under their infrastructure budgets.
(>) OJ No C 69, 24. 3. 1976, p. 2.
(2) OJ No C 143, 12. 6. 1979, p. 9.
No C 336/62 Official Journal of the European Communities 23. 12. 81
The regional development programmes shall be
examined by the Commission and the Regional
Policy Committee in the light of the coordination
objectives as laid down in Article 1 above. The
Regional Policy Committee shall make known its
views on them to the Commission, which shall,
where necessary, address the appropriate
recommendations to Member States.
(b) Before 31 May each year, Member States shall
send to the Commission a report on the
implementation of the regional development
programmes, giving for each region and for the
preceding year:
— quantified information on the results of
measures carried out in the regions in terms of
investment and jobs;
— the financial means employed, both from
national and Community sources, making
separate mention, where applicable, of those
provided by the Fund or under the
Community's other financial instruments;
— the rate of utilization of the major
infrastructures completed during the year,
when possible.
4. The Commission is analyzing the regional impact of
the main common policies and essential measures which it
proposes to the Council. It is informing the latter of the
way in which account is taken of this analysis, including,
where relevant, its intention to implement a specific
Community measure as indicated in Article 27 of the
current Regulation. The Council, on a proposal from the
Commission, will adopt the required measures.
TITLE II
GENERAL PROVISIONS RELATING TO THE EUROPEAN REGIONAL
DEVELOPMENT FUND
Article 3 (former Article 1)
The European Regional Development Fund, hereinafter
referred to as 'the Fund', is intended to correct the
principal regional imbalances within the Community
resulting in particular from agricultural preponderance,
industrial change and structural underemployment.
Article 4 (former Article 2)
1. [ . . . ] , the endowment for the Fund shall be
determined annually in the general budget of the
European Communities, with a distinction being made
between the measures referred to in Title 111 and
Title IV.
2. The annual budget shall indicate for the relevant
year under the heading for the Fund:
(a) appropriations for commitment;
(b) appropriations for payment.
Unless any specific provision of this Regulation provides
otherwise, the Financial Regulation applicable to the
general budget of the Communities shall apply to the
management of the Fund.
3. The following may be financed by the Fund with a
view to contributing to attainment of the objectives
referred to in Article 3:
(a) Community measures to assist regions suffering from
especially serious structural problems, as provided
for in Title III. [. . .] The resources of the Fund
intended for financing such measures shall be
allocated as follows:
— The Mezzogiorno as defined in Article 1 of
Decree No 218 of 6 March 1978 issued by the
President of the Italian Republic 43 • 67 %
— Greek regions, with the exception of A areas as
defined in Article 4 of the Greek Law No
1116/81 of 14 January 1981, paragraph 1,
taking into account Article 4, paragraph 2 of the
same Law 15*97 %
— Ireland 7-31 %
Assisted areas as defined in section 7,
paragraph 7 of the United Kingdom Industry Act
of 9 August 1972 and elaborated upon in the
decision of the United Kingdom Government of
17 July 1979 and in the subsequent decisions
implemented with effect from 1 August 1982 in
Northern Ireland, Scotland, Wales and the North
and North West of England 29 • 28 %
— Greenland
— French overseas departments
1 • 30 %
2-47%
The distribution of the resources of the Fund referred
to above shall be applied on a global basis for periods
of three years.
When granting aid from the Fund, priority will be
given to investments located in national priority
zones, taking account of the principle of coordinating
regional State aid schemes at Community level.
23. 12. 81 Official Journal of the European Communities No C 336/63
(b) specific Community regional development measures
to assist regions particularly affected by recent and
serious problems of industrial decline or by the effects
of certain Community policies, as provided for in
Title IV. The assistance allotted to these measures
may not exceed 20 % of the Fund's resources.
The Fund's resources intended for financing these
measures shall be used having due regard to the
CHAPTER 1
GEOGRAPHICAL SCOPE
Article 6 (new)
1. The list of regions and zones referred to in A rticle 4
(3) (a) may be revised by the Council, acting by a qualified
majority on a proposal from the Commission, in
particular where the analysis made in the periodic report
referred to in Article 2 (2) reveals substantial changes in
the relative severity of socio-economic problems in the
regions of the Community.
2. The Commission may, at the request of the
Member State concerned and in accordance with the
procedure laid down in Article 31, decide to make
amendments to the said list which shall not have the effect
of increasing the population in the eligible regions and
areas in a particular Member State by more than
0-5 %.
CHAPTER 2
OPERATIONAL RULES
Section 1:
Provisions relating to the financing of programme
contracts
Article 7 (new)
1. The Fund shall participate in the measures referred
to in Article 4 (3) (a) by financing programmes stipulating
the conditions for financial assistance by the Community
in respect of infrastructure investments and/or State aid
specific problems of the regions and to the relative
severity of regional imbalances in the Community.
Article S (new)
Measures referred to in Article 4 (3) (b) which are carried
out in regions or areas covered by a regional State aid
scheme and all the measures referred to in Article 4 (3) (a)
shall form part of a regional development programme as
referred to in Article 2, paragraph 3.
schemes for industry, the artisanat or the services sector,
including tourism.
2. Infrastructures to be financed under investment
programmes shall contribute to the development of the
region or area in which they are located.
3. State aid schemes for industry, the artisanat or the
services sector shall be financed in respect of economically
sound activities that create or maintain jobs. The
Community may finance all or only part of the aid
schemes.
Article 8 (new)
1. As a general rule, the duration of programmes
referred to in Article 7 may not be less than three
years.
2. The programmes shall concern one or more, or
part, of the regions or areas referred to in
Article 4 (3) (a).
3. They shall include the following:
(a) expected results, where possible in quantified
form;
(b) measures to be taken to achieve these results, together
with the implementation schedule;
(c) plan for financing the programme, making a
distinction between Community, national and
regional sources of finance;
(d) designation of the authorities or agencies responsible
for implementing the programme and the actions
within it;
TITLE III
COMMUNITY MEASURES TO ASSIST REGIONS EXPERIENCING ESPECIALLY
SERIOUS STRUCTURAL PROBLEMS
No C 336/64 Official Journal of the European Communities 23. 12. 81
(e) essential ancillary measures that are taken by the
Member State in question and do not benefit from
Community financing;
(f) information showing that Community aid will result
in additional financing and, consequently, additional
practical measures to promote development of the
region covered by the programme contract; -
(g) steps relating to the measures envisaged to protect the
environment in the regions concerned;
(h) arrangements to publicize the provision of Fund
assistance, the purpose being to inform potential
beneficiaries and the various sections of the economy
of the opportunities afforded by the programme and
of the role played by the Community.
4. The details of elements provided for at paragraph 3
to be contained in the programmes shall be determined by
the Commission in accordance with the procedure
referred to in Article 31.
Article 9 (new)
1. Programmes that might qualify for assistance from
the Fund shall be submitted to the Commission by the
Member State in question. They shall be drawn up by the
latter in close association with the authorities
concerned.
2. The Fund's contribution to programme financing
may amount to 50 % of the expenditure taken into
account in determining the amount of Fund assistance.
The Commission shall lay down the criteria for
implementing this paragraph in accordance with the
procedure provided for in Article 31.
3. The Commission shall assess a programme taking
due account of its consistency with the regional
development programmes and of its contribution to
attainment of the Community's regional objectives and
priorities, and notably the creation or maintenance of
productive jobs, mobilization of the indigenous potential
of the region concerned and strengthening of its economic
base.
4. / / the Commission considers that the programme
submitted can receive assistance from the Fund, it will
inform the Member State concerned adding its
observations. The Commission and the Member State
concerned shall finalize the programme by common
consent which must in particular detail the complete
financial plan. A programme which becomes in this way
the subject of an agreement between the Commission and
the Member State is considered to be, under the terms of
the present Regulation, a programme contract.
The programme and the programme contracts, in which
the Commission may among other things lay down
special conditions relating especially to the
implementation of Article 8 (3) (f), shall be approved by
the Commission in accordance with the procedure
provided for in Article 31. The provision of Fund
assistance shall be decided upon by the Commission at the
same time and in accordance with the same procedure.
5. The Commission shall decide the aids from the
Fund in accordance with Article 31. The programme
contract shall be attached to the grant decision.
6. The aids from the Fund shall be published in the
Official journal of the European Communities.
Article 10 (new)
1. Each year, before 31 May, the Member State
concerned shall submit to the Commission a report giving
details of the progress made in implementing each
programme during the preceding calendar year and
making reference to the information required under
Article 8 (3). These reports shall enable the Commission
to verify implementation of the programme, to take note
of their effects and, where necessary, to determine
whether the operations are being carried out in a
consistent manner. They shall be communicated to the
Fund Committee.
2. On the basis of these reports, the Commission shall
present a report in the manner set out in Article 36.
3. In the event of a programme in the course of
implementation being substantially amended, the
procedure provided for in Article 31 shall apply.
4. Upon completion of each programme, the
Commission shall inform the Fund Committee of the
results achieved.
Article 11 (new)
1. For a transitional period of three years beginning on
1 January 1982, the Fund may contribute both to the
financing of programmes in accordance with the
arrangements laid down in this Section and to the
financing of investment projects in accordance with the
arrangements laid down in Section 2.
2. In the second and the third year of the transitional
period and subject to the provisions of paragraph 3
hereafter and Sections 3 and 4, the proportion of Fund
assistance allocated to the financing of programmes may
not, for each Member State, be lower than 30 % and
60 % respectively of the appropriations available for
Community measures to assist regions having
particularly serious structural problems. After the end of
the transitional period, all available appropriations shall,
also subject to paragraph 3 below and to the provisions of
Sections 3 and 4, be used for the financing of
programmes.
3. At the end of the transitional period, investment
projects costing more than 40 million ECU may continue
to be financed by the Fund, in accordance with the
arrangements laid down in Section 2.
23. 12. 81 Official Journal of the European Communities No C 336/65
Section 2
Provisions relating to the financing of investment
projects
Article 12 (former Article 4 (2))
1. In the case of investment projects in industry, the
artisanat or the services sector, the amount of the Fund's
contribution shall be equal to 20 % of the investment
cost; it may not, however, exceed 50 % of the aid granted
to each project by the public authorities under a regional
aid scheme and, moreover, it shall be confined to that part
of the investment cost not exceeding 100 000 ECU per
job created or 50 000 ECU per job maintained.
In the case of the services sector and the artisanat, the
Fund's contribution shall he calculated on the basis of the
number of jobs created or maintained. It shall amount to
20 000 ECU per job but may not exceed 50 % of national
aid.
The State aids to be taken into consideration shall be
grants, interest-rate subsidies or their equivalent where
loans at reduced rates of interest are concerned,
irrespective of whether such aid is linked to the amount of
investment or to the number of jobs created.
Such aids may include aid granted in respect of an
investment project and linked to the transfer of plant and
workers. The aid equivalent shall be calculated in
accordance with an implementing regulation adopted
pursuant to Article 31. Aid granted in the form of rent
reductions or exemptions in respect of buildings,
including plant, may also be taken into account provided
the same calculation can be carried out.
In accordance with a prior decision by the Member State
concerned notified at the same time as the grant
application, the Fund's contribution as thus defined may
be in addition to aid granted by the public authorities in
respect of the relevant investment project, or may remain
credited to those authorities in partial repayment of such
aid. In this case, the financial effort of the Member State
in the region in question shall be increased by the amount
of Community assistance.
2. In the case of infrastructu re investment p rojects, the
amount of the Fund's contribution shall be equal to 30 %
of the total cost of the investment measures carried out
where the project costs less than 5 million ECU and to
between 10 % and 30 % where the project costs 5 million
ECU or more.
However, the maximum contribution may rise to 50 % in
the case of projects of particular importance to the
development of the region in which they are located.
Member States shall give priority to the submission of
grant applications in respect of investment projects
carried out by regional or local authorities.
3. All or part of the Fund's contribution may be in the
form of an interest-rate subsidy on Community loans
made in the regions or areas referred to in Article 4 (3)
(a).
Article 13 (former Article 5)
1. The provision of Fund assistance shall be decided
upon by the Commission in the light of the relative
severity of the economic imbalance of the region in which
the investment project is carried out and of the direct or
indirect impact of the project on employment. The
Commission shall examine, in particular, the consistency
of the project with all the measures taken by the Member
State concerned to assist that region, as described in the
information supplied by Member States pursuant to
Article 2, with particular reference to:
(a) the project's contribution to the economic
development of the region;
(b) its consistency with the Community's programmes or
objectives;
(c) the situation in the economic sector concerned and
the profitability of the investment made;
(d) whether the project is located in a frontier area, i.e. in
a region adjacent to one or more other Member
States;
(e) other assistance granted by Community institutions
or by the European Investment Bank, either in respect
of the same project or for other measures in the same
region. In this way, Fund assistance will be
coordinated with other Community assistance in
such a way as to promote comprehensive convergent
and coordinated measures in a given region and to
guarantee, in particular, consistency between
regional policy and the policy on agricultural
structures.
2. (a) In the case of investments of 5 million ECU or
more, the provision of Fund assistance shall be
decided upon by the Commission in accordance
with the procedure provided for in Article 31.
(b) In the case of investment projects costing less than
5 million ECU, the Commission shall decide on
the Fund contributions and shall inform the Fund
Committee of these decisions taken.
Article 14 (former Article 7)
1. Applications for Fund assistance shall be submitted
to the Commission by Member States, together with such
No C 336/66 Official Journal of the European Communities 23. 12. 81
information as will enable the Commission to assess the
merit of the investment projects in the light of Articles 2
and 13.
2. In the case of investments of less than 5 million
ECU, Member States shall present grouped applications
at the beginning of each quarter. These applications shall
be submitted on a region-by-region basis, with a
distinction being made between investments in industry,
the artisanat or the services sector and investments in
infrastructure.
These applications shall state:
(a) in respect of investments in industry, the artisanat or
the service sectors, the names of the undertakings
concerned, their sector of activity, and the location of
each investment and its object (establishment,
extension, conversion or restructuring of an
undertaking), the total amount of investment
involved, the predicted overall effect on employment
(creation or maintenance of jobs) the estimated
implementation schedule, total aids granted in
connection with which Fund assistance is requested,
and the planned schedule of payments;
(b) in respect of investments in infrastructure, the
location of each investment and its object, its
contribution to the development of the region,
predicted total expenditure and expenditure to be
borne by public authorities, the planned schedule of
payments, the name of the responsible authorities,
the total amount of assistance requested from the
Fund, and the estimated implementation schedule.
3. In the case of investment projects costing 5 million
ECU or more, applications shall be submitted separately
and shall include the following information:
(a) in respect of projects in industry, the artisanat or the
services sector, the name of the undertaking, the
sector of activity, the object of the project and its
location, the effect on employment, the planned
implementation schedule, the details of any grants,
interest-rate subsidies or loans at reduced rates of
interest, the planned schedule for payment of such
aids, any other form of aid granted or planned by the
public authorities and the financing plan, indicating
in particular any other Community aids requested or
planned.
The Member State shall specify in its application the
total amount of assistance which, in its opinion,
should be granted to the undertakings and the
contribution it is seeking from the Community;
(b) in respect of infrastructure projects, the responsible
authority, the object of the project, its location, its
contribution to the development of the region, its
cost, its financing plan, the implementation schedule
and the planned schedule of payments.
4. Provision of Fund assistance shall be decided upon
by the Commission:
(a) on an aggregated basis for each application covered
by paragraph 2;
(b) on a case-by-case basis for applications covered by
paragraph 3.
5. Member States shall give priority to the submission
of grant applications in respect of projects costing
5 million ECU or more.
Article 15 (former Article 10)
1. The investors concerned shall be informed, in
agreement with the Member States in question, that part
of the aid granted to them has been provided by the
Community. In the case of infrastructure projects,
Member States, in agreement with the Commission, shall
take all necessary steps to ensure the assistance from the
Fund is given suitable publicity.
2. The list of projects that have received Fund
assistance shall be published every six months in the
Official Journal of the European Communities. It shall
specify the nature and location of each project and the
amount of investment involved.
Section 3
Provisions relating to the financing of operations aimed at
exploiting the indigenous development potential of the
regions
Article 16 (new)
The Fund may contribute to the financing of operations
aimed at exploiting the indigenous development potential
of the regions that fall within one of the following
categories:
(a) measures to provide small and medium-sized
businesses, artisanal enterprises and rural tourism
with facilities enabling them to expand their means of
action and to have access to new technology. Such
measures shall include:
— operating aids for agencies compiling and
disseminating information on product and
technological innovations and for conducting
feasibility studies and projects permitting the
introduction of these innovations in
undertakings;
23. 12. 81 Official Journal of the European Communities No C 336/67
— aids for conducting sectoral studies with a view to
providing fuller information on access to
national, Community and external markets and
aids to encourage the dissemination of
information concerning the findings of such
studies;
— aids to increase the efficiency of undertakings by
making it easier for them to obtain management
and organizational advice; these aids shall cover
the expenditure of undertakings relating to
services provided by consultancy firms or
bodies;
— starting-up aids facilitating the introduction of
services to be used jointly by two or more
undertakings, and covering in part operating
expenditure relating to the common services;
— aids to promote more effective exploitation of
regional potential in the field of rural tourism and
related to a part of the operating expenses of
agencies responsible for the promotion and
coordinated management of tourist
accommodation;
(b) assistance for the regional or local authorities in
working out a programme and making the technical
and financial preparations for, and in implementing,
operations that might qualify for Fund assistance; as
well as improving the performance of the agencies
called on to fulfil these tasks;
(c) measures to promote the establishment and
expansion of small and medium-sized businesses by
providing them with easier access to the capital
market, in accordance with arrangements to be
adopted by the Council, acting on a proposal from
the Commission, pursuant to an implementing
regulation.
Article 17 (new)
The Fund contribution o/ measures provided for in
Article 16 shall be determined as follows:
1. (a) for the operations provided for at (a) first and
third to fifth indents are degressive for a period of
three years, at a rate of 70 % for the first year, and
shall not exceed an average of 55 %for the period
of three years.
For the feasibility studies provided for at (a) first
indent, the Fund contribution shall not exceed
70 % of the cost of the study, with a limit of
50 000 ECU per study;
(b) for the operations provided for at (a), second
indent, 70% of the cost of the studies and
expenditure relating to the dissemination of their
results.
2. For operations provided for at (b), 70 % of the
expenses to be borne by the regional or local
authorities.
3. The Fund contribution shall be decided by the
Commission according to the procedure set out in
Article 31.
Section 4
Provisions relating to studies
Article 18 (former Article 12)
1. The Fund may contribute to the financing of studies
closely related to Fund operation and conducted at the
request of a Member State.
2. Fund assistance may not exceed 50 % of the cost of
the study.
CHAPTER 3
PAYMENTS AND CHECKS
Section 1
Provisions relating to programmes
Article 19 (new)
1. The budget appropriations for the financing of a
programme shall be committed in allocations covering a
period of one year. The first allocation shall be committed
once the grant decision has been taken by the
Commission. Subsequent allocations shall be committed
subject to the budget resources available and the progress
of the programme.
2. Those expenditures which the authorities
concerned have or expect to be made from 1 January of
the year in which the programme is presented to the
Commission shall be eligible for Fund contributions.
Article 20 (new)
1. Each payment application shall be accompanied by
a certificate issued by the Member State and evidencing
execution of the operations and the existence of detailed
supporting documents. It shall contain the following
information:
— object of the operations covered by the payment
application;
— amount and type of expenditure incurred in respect of
the individual operations during the period covered
by the application;
No C 336/68 Official Journal of the European Communities 23. 12. 81
— confirmation that the operations described in the
payment application were started as provided for in
the programme.
2. The Member State in question shall keep available
for inspection by the Commission for a period of three
years following the last payment made in connection with
the programme all the documents in support of
expenditure incurred under the programme or certified
copies thereof.
The Commission reserves the right to make a detailed
examination of each individual project being
implemented in the framework of the programme.
3. Payments shall be addressed by the Commission:
— to the public authorities commissioning the work
where the programme contract concerns the financing
of an infrastructure investment programme;
— to an agency designated for this purpose by the
Member State concerned where the programme
contract concerns the financing of a State aid scheme
in industry, the artisanat or the services sector.
Section 2
Provisions relating to investment projects
Article 21 (former Article 8)
1. The amount of Fund assistance, calculated where
applicable on the basis of the aid equivalent according to
an implementing regulation adopted pursuant to
Article 31, shall be paid as and when expenditure is
incurred, upon presentation by the Member State
concerned of quarterly statements certifying expenditure
and the existence of detailed supporting documents and
containing the following information:
(a) for intermediate payment applications:
— the name of the undertaking concerned or, in the
case of infrastructure projects, the name of the
responsible authority;
— the location of the project;
— total public expenditure incurred after the date
referred to in Article 22 and that part of the
amount for which payment is requested;
— the amount of the payment requested from the
Fund;
— a forecast of future payment applications;
(b) for final payment requests, all the information
referred to at (a), with the exception of the last indent,
together with:
— the amount actually invested and confirmation
that the project carried out corresponds to the
initial project;
— the date of completion of the project;
— the number of jobs created or maintained by a
project in industry, the artisanat or the services
sector;
— the amounts of public expenditure.
2. Where expenditure provided for in the decisions
referred to in Article 14 consists in aids granted in the
form of interest-rate subsidies or loans at reduced rates of
interest, the amount of the Fund's contribution in respect
of such aids that is still due when the projects are
completed shall be paid in a single transaction upon
presentation of the certificate evidencing completion.
3. Member States shall designate the authorities or
agencies authorized to issue the certificates referred to in
this Article. In the case of infrastructure investment
projects, payments shall be addressed by the Commission
to the bodies supervising the work concerned in the
particular investment.
In the case of investments in industry or the service sector
payments shall be addressed to the Member State or to a
body designated by it for this purpose.
Article 22 (former Article 11)
Payments made by Member States as from 1 January of
the year during which the grant application was
submitted and in respect of projects not completed by that
date shall be eligible for contributions from the Fund.
This time limit may be extended by six months for
payments in respect of projects in Greenland.
Section 3
Provisions relating to operations aimed at exploiting the
indigenous development potential of the regions
Article 23 (new)
1. Grant applications shall be submitted to the
Commission via the Member States.
2. They shall state:
— for measures referred to in Article 16 (a), the object of
the measure, its location, the nature of the agencies or
businesses benefiting from the measure, its effect on
employment, the planned implementation schedule
and the financing arrangements;
23. 12. 81 Official Journal of the European Communities No C 336/69
— for measures referred to in Article 16 (b), the object of
the measure, its location, the effect expected by the
regional or local authorities and the duration of and
arrangements for financing the measure.
3. Payment requests shall be submitted to the
Commission by Member States, together with a
certificate issued by the latter and evidencing execution of
the operations and the existence of detailed supporting
documents. They shall contain the following
information:
— object of the operations covered by the payment
application;
— amount and type of expenditure incurred in respect of
the individual operations during the period covered
by the application.
4. Payments shall be addressed by the Commission to
the public authorities, agencies or businesses concerned.
The aids provided for at Article 16 (a) third and fourth
indents and, when they directly benefit businesses, the
aids provided for at Article 16 (a) first indent, shall not
reduce the businesses' share of total expenditure to less
than 20 %.
Section 4
Advances
Article 24 (new)
1. In the case of measures referred to in Articles 7,12
and 16, undertaken after the entry into effect of the
revised version of the present regulations, advances of up
to 80 % may be granted by the Fund in the light of
progress made in the operations and available budget
resources.
2. At the Member State's request, the Commission can
make an initial advance of 80 % of its aid in respect of the
first annual allocation, after the starting date scheduled
for the implementation of operations.
3. Applications for advances in respect of the other
annual allocations may be submitted where at least 60 %
of the planned operations covered by the preceding
allocation have been completed and where work covered
by any other previous allocations has been concluded.
4. The balance shall be paid at the request of the
Member State upon presentation of a certified statement
that the operations covered by the first allocation can be
deemed to have been completed, and of a statement of
public expenditure made.
5. The form and conditions of the applications for
advances referred to in paragraphs 2 and 3 shall be
determined in accordance with the procedure laid down
in Article 31.
Section 5
Provisions relating to checks
Article 25 (former Article 9)
1. Where a measure that has received a contribution
from the Fund has not been carried out as planned, or if
the conditions imposed by the provisions which govern
the measure are not fulfilled, the Fund's contribution may
be reduced or cancelled if the Commission, after
consulting the Fund Committee, so decides.
Any sums paid [. . .] shall be repaid to the Community by
the Member State concerned or, where applicable, by the
body to which the Fund contribution has been paid within
twelve months of the date on which the relevant decision
was communicated.
Member States shall repay to the Commission the amount
of Fund assistance received in all cases where national aid
used as the basis for calculating the amount of Fund
assistance has been repaid to the Member State concerned
by the investor.
2. Member States shall make available to the
Commission all the information necessary to ensure
effective operation of the Fund and shall take all the steps
likely to facilitate such monitoring as the Commission
may deem useful in managing the Fund, including
on-the-spot checks. They shall notify the Commission of
the cases referred to in the first subparagraph of
paragraph 1.
3. Notwithstanding checks carried out by Member
States in accordance with national laws, regulations or
administrative provisions, and without prejudice to
Article 206 of the Treaty or to any inspection arranged on
the basis of Article 209 (c) of the Treaty, on-the-spot
checks or enquiries in respect of operations financed by
the Fund shall, be carried out by the competent
authorities of the Member State and by officials of the
Commission or any other persons empowered by the
Commission for this purpose. The Commission shall
determine time limits for the performance of the checks
and inform the Member State concerned of them in
advance in order to obtain all the assistance necessary.
4. The purpose of such on-the-spot checks or
enquiries in respect of operations financed by the Fund
shall be to verify:
(a) the conformity of administrative practices with
Community rules;
(b) the existence of supporting documents and the fact
that they correspond to the operations financed by
the Fund;
(c) the conditions under which operations financed by
the Fund are executed and monitored;
No C 336/70 Official Journal of the European Communities 23. 12. 81
(d) the conformity of projects carried out with the
operations financed by the Fund.
5. The Commission may suspend payment of
assistance in respect of a particular operation if a check
reveals irregularities or a substantial change in the object
or conditions of the project for which the Commission's
approval has not been sought.
6. By way of derogation from Article 6 (2) of the
Financial Regulation of 21 December 1977 applicable to
the general budget of the European Communities ('), if an
operation that has received assistance from the Fund has
not been completed or has been carried out in such a
manner that payment of only part of the Fund assistance
granted in respect of that project is justified, the
outstanding part of the Fund's contribution shall be
OJNoL356, 31. 12. 1977, p. 1.
allocated to another activity in one of the eligible regions
of the same Member State under the conditions laid down
in this Regulation.
Article 26 (new)
Member States shall, within three years of completion of
the actions financed by the Fund, inform the Commission
of the following:
— in the case of investment projects in industry, the
artisanat or the services sector, the number of jobs
created;
— in the case of infrastructure investment projects
costing more than 5 million ECU, the rate of
utilization of the infrastructure in question, where
such information is available.
TITLE IV
SPECIFIC COMMUNITY REGIONAL DEVELOPMENT MEASURES
Article 27 (former Article 13) of [. . .] employment in regions or areas experiencing
difficulties.
1. In the case of Community measures referred to in
this Title, the Fund shall also grant assistance in regions
or areas which may differ from those referred to in
Article 4 (3) (a) provided the Member State concerned
has already taken action, or takes action at the same time,
to tackle the problems which the Community measures in
question are intended to resolve.
2. The measures referred to in this Title may differ in
whole or in part from the measures referred to in Title III.
They shall be aimed at Community regions and zones
particularly affected:
— either by recent, serious problems of industrial
decline,
— or by certain Community policies or by measures
adopted by the Community in order to facilitate the
implementation or to mitigate the regional
consequences of these policies.
These measures may not have as their object the internal
reorganization of declining sectors but may, by
establishing new economic activities and the
implementation of new technology, promote the creation
These measures shall be financed jointly by the
Community and by the Member State or States
concerned.
3. Member States shall provide the Commission with
the information on regional problems that might qualify
for a specific measure within the meaning of
paragraph 2.
4. Without prejudice to the responsibilities of the
Commission with regard to State aids under Articles 92,
93 and 94 of the Treaty, the Commission shall fix,
according to the procedure provided for at Article 31:
(a) the nature of the operations eligible for Fund
assistance;
(b) the areas and regions in which the Fund may grant
assistance;
(c) the national public aid taken into consideration in
granting Fund assistance;
(d) the contribution of the Fund;
23. 12. 81 Official Journal of the European Communities No C 336/71
(e) the categories of beneficiaries of Fund assistance;
(f) the financing arrangements;
(g) the arrangements to publicise the provision of Fund
assistance, the purpose being to inform potential
beneficiaries and the various sections of the economy
of the opportunities afforded by the programme and
of the role played by the Community.
Article 28 (former Article 14)
1. The Fund may bear all or part of the cost of
preparatory studies for specific Community regional
development measures. [. . .]
2. The Commission shall decide the amount of Fund
contribution and inform the Fund Committee of the
studies undertaken and of their results.
TITLE V
GENERAL AND FINAL PROVISIONS
CHAPTER 1
PROVISIONS RELATING TO THE INTEGRATED
OPERATIONS OF DEVELOPMENT
Article 29 (new)
1. In the granting of Fund assistance, investments and
measures referred to in Titles III and/or IV which form
part of an integrated development operation may be
accorded priority treatment and a preferential rate.
2. An 'integrated development operation' comprises a
coordinated package of public and private measures and
investments which have the following characteristics:
(a) they relate to a limited geographical area suffering
from particularly serious problems associated in
particular with under-development or with industrial
or urban decline and likely to affect the region in
question;
(b) the Community through the combined use of various
structural financial instruments, and the national and
local authorities in Member States, contribute in
close association to their implementation.
3. The Member States concerned shall ensure the
concerted use of Community and national financial
resources and close coordination between the individual
public authorities taking part in the implementation of
the integrated operation.
4. The Commission too shall ensure the concerted use
of the various Community structural financial
instruments.
5. The Fund's contribution to investments and
measures that form part of the operations referred to in
this Article may be increased by 10 % points, but shall
not exceed 80 % of expenditure, according to the
Article 31.
CHAPTER 2
OTHER PROVISIONS
Article 30 (former Article 15)
1. A Fund Committee (hereinafter referred to as 'the
Committee') is hereby established. It shall be composed of
representatives of the Member States and chaired by a
representative of the Commission.
2. Within the Committee, the votes of the Member
States shall be weighted in accordance with Article
148 (2) of the Treaty. The chairman shall not vote.
Article 31 (former Article 16)
1. Where the procedure laid down in this Article is to
be followed, the chairman shall bring the matter before
the Committee, either on his own initiative or at the
request of a representative of a Member State.
2. The representative of the Commission shall submit
drafts of decisions to be taken. The Committee shall
deliver its opinion on such drafts within a time limit that
the chairman may determine in the light of the urgency of
the matters under consideration. Opinions of the
Committee shall be adopted by a majority of forty-five
votes.
3. The Commission shall take decisions which shall
apply immediately. However, if these decisions are not in
accordance with the opinion of the Committee, they shall
forthwith be communicated by the Commission to the
No C 336/72 Official Journal of the European Communities 23. 12. 81
Council. In that event, the Commission shall defer
application of the decisions taken by it for not more than
two months from the date of such communication. The
Council, acting by a qualified majority, may take a
different decision within two months.
Article 32 (former Article 17)
The Committee may consider any other matter relating to
the Fund's operation referred to it by its chairman, either
on his own initiative or at the request of a representative
of a Member State.
Article 33 (former Article 18)
The necessary measures for implementing this Regulation
shall be adopted in accordance with the procedure laid
down in Article 31.
Article 34 (former Article 19)
1. Member States shall take the measures necessary to
indicate separately and in a manner reflecting the special
characteristics of national budget systems the amounts
received from the Fund.
2. At the request of the Commission, Member States
shall provide it with information on the allocation of the
amounts received from the Fund.
Article 35 (former Article 20)
Assistance from the Fund shall not distort the conditions
of competition in a manner incompatible with the
principles set out in the relevant provisions of the Treaty
and elaborated upon in the principles for the coordination
of the general regional aid schemes. In particular, the
provisions of this Regulation shall not prejudice
application of Articles 92, 93 and 94 of the Treaty,
particularly as regards establishing and modifying the
areas covered by a regional aid scheme and referred to in
Article 2 (3) [ . . . ] .
Article 36 (former Article 21)
1. Before 1 October each year, the Commission shall
present to the Council, to the Parliament and to the
Economic and Social Committee a report on the
implementation of this Regulation during the preceding
year.
2. The report shall also deal with the financial
management of the Fund and discuss the Commission's
conclusions based on the checks carried out in respect of
Fund operations.
Article 37 (former Article 22)
On a proposal from the Commission, the Council shall
re-examine this Regulation within three years from
1 January 1982.
Article 38 (former Article 23)
This Regulation shall enter into force on the day
following its publication in the Official Journal of the
European Communities.


Full & Egal Universal Law Academy