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Markedsudvalget 1983
KOM (1983) 0566
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COMMISSION OF THE EUROPEAN COMMUNITIES

European Regional

Development Fund

Eighth annual report (1982)

COM(83) 566

3 October 1983

Blank pages:

iv, 48, 54, 74, 106, 108

Manuscript finished in August 1983

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This publication is also available in the following languages:

ISBN

92-825-4112-6

92-825-4113-4

92-825-4114-2

92-825-4116-9

92-825-4117-7

92-825-4118-5

Cataloguing data can be found at the end of this publication

Luxembourg: Office for Official Publications of the European Communities, 1984

ISBN 92-825-411 5-0

Catalogue number: CB-38-83-677-EN-C

Articles and texts appearing in this document may be reproduced freely in whole or

in part providing their source is mentioned.

Printed in Belgium

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PREFACE

Article 21(1) and (2) of the Council Regulation establishing a European

Regional Development Fund provide as follows:

"1.

Before 1 October each year the Commission shall present a report to

the Council, the European Parliament and the Economic and Social

Committee on the implementation of this Regulation during the

preceding year."

This report shall also cover the financial management of the Fund and

the conclusions drawn by the Commission from the checks made on the

Fund' s ope rat ions."

"2.

The obligation to present an annual report is reinforced, where non-quota

measures are concerned, by Article 6(2) and (3) of the Council Regulations

instituting specific Community measures, which read as follows:

"2.

At the end of each year, the Member State concerned shall present to

the Commission a report on the progress made in carrying out the

special programme by reference to the information

required in the

Annex to this Regulation. These reports should enable the Commission

to satisfy itself that the special programme is being executed, to

observe its effects and to establish that the different operations

are being carried out in a coherent manner. They shall be forwarded

to the Regional Pol icy commit tee."

On the bas is of these reports and the relevant decisions, the

Commission shall report under the conditions laid down in Article 21

of the Fund Regulation."

"3.

Ill

iii-iv

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As the second Periodic Report on the Economic and Social Situation of the

Regions of the Community is now being drafted, this Report covers only the

most important aspects of ERDF operations.

Accordingly, the following changes in content and layout have been made as

compared with the Seventh Report for 1981:

•

Chapter II, "Regional Policy in 1981" (together with the related

statistical annex) has been dropped from the 1982 Report. However,

some of the topics discussed in that chapter have been included in the

Annex: sheets on the regional development programmes presented by the

Member States (Annex Sheet

N. 1)

and on the integrated development

operations (Annex Sheet

N. 2);

Chapter IV, "Regional Analysis of Fund Activity", has also been

omitted.

However,

the overall aspects of the geographical

concentration of Fund assistance in certain regions are discussed in

the final chapter, which also gives a brief statistical review of ERDF

assistance from 1975 to 1982, considers its impact on employment and

examines complementarity, additionality and the ERDF's overall impact

on regional development.

•

A point to be borne in mind is that some of the figures given in various

chapters of the report cannot be directly compared. For example, the

figures on commitments and payments shown in Chapter III under the heading

"Payments and settlement of commitments" do not give any breakdown of Fund

activities by type of investment or by region, and to describe this aspect

use has been made of the statistical statements published with each batch

of decisions. In those statements, the amounts in national currency are

converted into ECU at the exchange rate applying in January of the

relevant year, and in Chapter

the conversion coefficients used are the

exchange rates for converting national currencies into ECU applying in

January 1982. In Chapter Ill, on . the other hand, commitments and payments

are shown, in accordance with budgetary rules, at the exchange rates for

each month, with commitments being revalued monthly in line with

fluctuations in exchange rates. This difference in the methods used to

calculate the ECU amounts given in the report means that there are

discrepancies between the figures in Chapters II and

III,

but they are too

small to affect the orders of magnitude shown.

Similarly, the figures shown for the numbers of applications submitted and

projects examined or approved "for the financial year 1982" must be

distinguished from the figures for applications submitted and projects

examined or approved "during the calendar year 1982" (see point 24 of

Chapter

and point

of Chapter V).

Note

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CHAPTER

I -

INTRODUCTION

PRELIMINARY REMARKS

The European Regional Development Fund is the only Community

instrument set up for the sole purpose of assisting development in

the Community's less-favoured regions.

is used. to buttress

national regional development measures with a view to reducing

regional imbalances in the Community. It makes grants for investment

projects (infrastructures, production of goods and services) in the

reigons and areas eq.gible for regional assistance from

~1ember

States. Such projects must be financed by or receive assistance from

the Member State in question.

Until 1973, the Community showed steady and sustained growth, but it

was unbalanced. There was no Community regional policy on a scale to

reduce this imbalance: to develop one in the present economic

circumstances is not easy. Because of the large budget deficits,

there is little room for budgetary policy measures, and the need for

cuts in expenditure reduces the financial resources earmarked for

regional policy. Furthermore, the economic crisis has been so severe

that structural problems have also arisen in the developed regions,

and certain regional imbalances have been further aggravated. It is

no coincidence that the countries with the greatest regional

disparities are the very ones that are least at-le to solve them,

since they are also faced with the most serious

~~conomic

problems.

The short-term measures adopted by governments to combat the

recession, although apparently necessary for political and social

reasons, should not

obscur~

the fact that the gap is as wide as ever

between regions with the advantage of natural assets and opportunity

for development, and those regions handicapped by low incomes and

structural unemployment.

The upturn expected in the economy will probably alleviate but not

solve the structural problems afflicting the less-favoured regions.

Without an active regional and structural policy, there cannot

therefore be any real progress .towards economic integration. As an

arm of such a policy, the Regional Fund is however only one element

in a large whole. To this extent, the impact of regional policy

cannot be fully assessed without taking account of the

Con~unity's

other financial instruments and policies and without viewing the

assistance they provide in the light of the present economic

situation.

Chapter I - Introduction

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SUMMARY OF FUND ACTIVITY IN 1982

Quota section

Under the ERDF Regulation, adopted by the Council in March 1975(

1 )

and amended in February 1979(

2 )

and December 1980(3 ), the Commission

is required to present an annual report on the financial management

of the Fund and on the conclusions drawn by the Commission from. the

checks made on the Fund's operations. This annual report covers the

Fund's activities in 1982.

Together with continued discussions on the proposed amendment of the

ERDF Regulation(

4 )

presented in October 1981, the main events in 1982

were the implementation of the specific regional development

measures, known as "non-quota measures", adopted by the Council in

October 1980, and the presentation in November of proposals for a

second series of non-quota measures (

5 ) .

In the absence of a Council decision on the revised ERDF Regulation,

the Commission decided to use again in 1982 the quotas which had

applied in 1981, under Article 2(3) (a) of the Fund Regulation(6),

The funds available (commitment aPpropriations) for the quota

section in 1982 amounted to 1,817.7 Mio ECU, of which 1,669.0 Mio ECU

represented the budget allocation for 1982 and 148.7 Mio ECU derived

from appropriations released, sums carried over from the previous

year, and adjustments to take account of fluctuations in the ECU

rate. Although this amount represents a substantial increase over

the previous year and almost all the appropriations available were

committed (1,812.1 Mio ECU), the Commission was not able to make

grants to all the eligible projects submitted, Grant decisions on 149

investment projects on which the Fund Committee had already given its

opinion in 1982 had to be deferred to 1983. It is also evident that

the Member States with the most serious regional problems would have

submitted an even greater number of applications

the Fund's

endowment had been larger.

In the interests of efficiency and sound financial management, the

Commission adopted a fairly flexible approach in using budget

resources not taken up by certain Member States and granted Greece,

Ireland, Italy and the United Kingdom a volume of ERDF assistance

that was in excess of their quotas for 1982, with the difference to

be counted against their quotas for 1983.

Regulation (EEC) No. 724/75 of 18 March 1975

(O.J.

No.

73,

21 .03. 75).

Regulation (EEC) No. 214/79 of 6 February 1979

(O,J.

No. L 35, 09.02.79).

Regulation (EEC) No. 3325/80 of 16 December 1980

(O.J. No. L 349, 23.12.80).

Document COM(81) 589 final, 26.10.1981.

Document

C~l

(82) 658 final, 18. 11. 1982.

Doc. COM(82)

644, point X.

ERDF

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In 1982, by the end of the appraisal procedure, the Commission had

approved 63.9% of the projects

~xamined.

During the year, the

Commission adopted a total of 535 grant decisions under the quota

section involving a total amount of 1,864.30 Mio ECU (81.7% of the

assistance applied for) in respect of 3,277 investment projects.

Since 1975, 17,771 projects and 30 studies have been approved,

bringing the total amount of aid granted to 7,198.65 Mio ECU

(7,186.89 Mio ECU for projects and 11.76 Mio ECU for studies).

Of the 1,864.30 Mio ECU granted in 1982, 12.8% was for industrial and

service sector projects (1975-82: 21.3?.), which were expected to

result in the creation or maintenance of 48,148 jobs (1975-82:

506,477 jobs) and 87.1% for infrastructure projects (1975-82:

78.7%), with the remainder being used to finance studies.

In 1982, aid granted to infrastructure projects again exceeded the

70% ceiling laid down in the ERDF Regulation. The low level of

investment in the industrial, craft industry and service sectors was

largely due to the economic situation. The Commission, however, is

concerned at the small proportion of resources devoted to the

productive sector and considers that the

~fember

States must make a

special effort to remedy this state of affairs and to meet the

minimum target of the ERDF Regulation(

7 ) .

10.

11.

Payment appropriations available for the quota section amounted to

1,015.0 Mio ECU, plus 33.6 Mio ECU carried over from 1981.

Pa)~ents

in 1982 were up 20% over the previous year, amounting to 950.7 Mio

ECU (as against 791,409 Mio ECU in 1981), i.e. 92.2% of the budget

appropriations available for the quota section. Total payments made

since the Fund was set up amount to 53.9% of total appropriations

committed. The Commission considers that this percentage is

satisfactory, since payments from the Fund are made only after

payment of the national aids taken as a basis for calculating Fund

assistance and national aids are paid only as and when the project is

carried out.

Since the revision of the Fund Regulation in 1979, grants from the

Fund have been possible in respect of payments made by Member States

as from the twelfth month preceding the date on which the grant

application was received by the Commission, for investment projects

not completed by that date. For instance, 37% of the projects

financed in 1982 had been started in 1981, 39% were begun during the

same year as the grant decision, and a small number will begin in

1983.

12.

Article 4(1)(b) of the Fund Regulation.

Chapter I - Introduction

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13.

In administrative terms, the new simplified procedures governing

grant applications for small investment projects (costing less than

Mio ECU) have produced a marked improvement in the prompt

provision of full information to the

~!ember

States and efficient Fund

management. Nevertheless, there were practical difficulties for the

Commission, particularly during tl1e second half of the year, since

small projects accounted for 97?. of the total number of projects

examined (representing 41% of the assistance applied for) and more

than 65?. of the applications submitted, equivalent to nearly 70% of

the commitment appropriations available in 1982, were not received

until the period September-November. The Commission has always

endeavoured to meet the wishes of the national authorities 'in this

area; however, in view of the practical difficulties, it must insist

that applications be submitted in a more even flow throughout the

year, in accordance with the Regulation, and it must refuse any

application received after the deadline.

By no means all the applications were properly completed; many had to

be supplemented by the Commission staff on the basis of further

information requested from the Member States. It proved generally

less difficult to obtain additional information in those

~lember

States which allow the Commission to have direct contact with the

relevant regional and local authorities.

14.

In 1982, the Member States again made no use of the possibility

afforded by Article 4(2)(b) of the ERDF Regulation, which provides

that Fund assistance for infrastructure projects may consist wholly

or in part of a rebate of three percentage points on loans made by

the EIB. This is because Member States prefer to obtain ERDF

assistance under their quotas within a relatively short period, in

the form of an amount based on the progress of the projects rather

than in the form of an interest subsidy comprising payments spread

over a relatively long period, i.e. the term of the EIB loan. Yet

making use of this possibility would increase the impact of the

assistance provided by these two financial instruments. firstly by

allowing a number of investors easier access to credit and secondly

by allowing more

res~.·urces

to be channelled to regional development

through the Fund.

Eight studies relating to ERDF operations were co-financed (2.07

~fio

ECU) under Article 12 of the Fund Regulation. This number is well

below that which the Commission believes should be financed from this

type of Fund assistance.

15.

' ERDF

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Non-quota section

16.

With regard to the non-quota section the specific Community measures

financed on the basis of the special programmes approved by the

Commission began to be implemented as from the second half of

1981.

Commitment appropriations available under the non-quota section in

1982

amounted to

151.189

Mio ECU (of which

90.5

Mio ECU were entered

in the

1982

budget and

60.7

~fio

ECU were carried over from

1981).

During the year,

32.7

Mio ECU were committed, bringing the total

amount committed since

1981

73.3

Mio ECU (i.e. nearly

34%

of the

total available for five years was committed in 18 months). The

payment appropriations available amounted to

62.22

Mio ECU. Payments

amounted to

22.42

Mio ECU during the year, covering a series of

commitments for the United Kingdom, Ireland, France, Italy and

Belgium.

Remarks

17.

The Commission stresses the importance of publicizing Fund

assistance. Such information obviously has a much greater impact if

Fund assistance can be seen to be additional to national expenditure

and if the projects financed can be identified individually. The

Commission notes with satisfaction that the authorities in some

Member States, both at national and at regional and local levels,

continue to cooperate with

in this matter.

considers it

essential that other

~!ember

States agree to provide more public

information in this respect. The Commission is in any case

considering changes in the way the lists of projects published in the

Official Journal are presented so as to make these a more useful

source of information. Particular importance is attached to this in

the context of the forthcoming elections to the European Parliament.

The Commission feels bound to stress the importance of Fund

assistance being additional to national regional development

expenditure. Observing this principle is the only way of ensuring a

real increase in the total assistance provided to regions and hence

of improving the public credibility of Community measures. The

Commission however finds it difficult to establish the real ratio

between national expenditure and the amounts received from the Fund

and hence to determine to what extent Community assistance has been

genuinely additional to national expenditure.

18.

Chapter I - Introduction

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19.

The amended Fund Regulation and the Council resolution on the

guidelines for Community regional policy(

8 )

give more prominence to

the role of regional development programmes. The ERDF Regulation

provides that Community assistance may be granted only if the project

forms part of a regional development programme. The ERDF has in this

way obliged the

~fember

States to draw up regional development

programmes in accordance with a common outline prescribed by the

Regional Policy Committee. It thus exerts some. influence over the

programmes by providing a consistent framework for them. Gradually,

as the programmes are improved and planned with greater

thoroughness, the basis for regional policy coordination in the

Community is being created. This coordination process has barely

begun, the preparation of the first series of programmes having taken

several years. At the present stage the aim is to make them more

comparable and to include recognition of the repercussions of other

structural policies, whether at national or Community level.

Accordingly, as stated in the Commission's recommendations to the

Member States on this subject, the regional development programmes

should be regularly updated and supplemented. By the end of 1982, all

the

~fember

States had notified the Commission of their new regional

development programmes, which are set out in summary form in Annex

Sheet N. 1.

The efforts launched in 1979 to put through a number of integrated

regional development operations demonstrated the usefulness of this

coordinated approach, despite the difficulties encountered. In 1982,

the Community budget included for the first time an amount of

Mio

ECU to enable the Commission to contribute to the financing of

preparatory studies for integrated operations. (The situation

regarding the first integrated operations is set out in Annex Sheet

N. 2,

which also contains details of ERDF activities in regions

covered by integrated development programmes: the Western Isles in

the United Kingdom and Lozere in France.

The Regional Policy Committee met five times in 1982. It elected a

new

Chairman,

Mr. B. ATTALI,

and

new

Vice-Chairman,

~1r.

J.R.

EYSINK-S~tEETS,

The Committee examined a document on

Community regional policy presented by its former Chairman, Mr. NOE,

and the "second generation" regional development programmes referred

to it (those for the Federal Republic of Germany, Ireland and the

Flanders region of Belgium).

discussed the broad lines of the

Second Periodic Report on the Economic and Social Situation of the

Regions of the Community and delivered opinions on 112 major

infrastructure projects.

20.

21.

council Resolution of 6 February 1979 concerning the guidelines for

Community regional policy (O.J. N. C 36, 6.2.1979, p. 10).

ERDF

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CHAPTER II - FUND ACTIVITIES

QUOTA SECTION

INTRODUCTION AND METHOD OF WORK

22.

The work of the Fund's quota section falls into three consecutive

phases:

Phase 1:

The Commission's departments examine the investment

projects proposed in the grant applications submitted by

the Member States and select eligible projects, which then

become the subject of "draft decisions"

(9)

(see points 5

to 9 of this Chapter).

The Commission refers to the Fund Committee for an

opinion(

10 )

on the projects it has examined and accepted.

The referral arrangements are as follows:

•

for investment projects costing 10

~1io

ECU or more,

referral is automatic. In the case of infrastructure

projects, the Commission consults the Regional Policy

Committee(

11 )

before seeking the opinion of the Fund

Committee;

for investment projects costing less than 10 Mio ECU,

the Commission applies

the prior information_

procedure(

12 )

sending the Member States simplified

lists

the investment projects for which

applications have been received. The Fund Committee is

consulted:

on draft decisions to reject an application where

the Member State concerned so requests;

on all other draft decisions in respect of which

the Commission or a

~tember

State would like to

have the opinion of the Fund Committee.

The "draft decisions" and the resultant "decisions" generally group

investment projects in the same way as the grant applications

submitted to the Commission under Article 7 of the ERDF Regulation.

Article 16 of the Fund Regulation. Projects are presented at Fund

Committee meetings, which generally take place four times a year.

As provided for in Article 5(2)(a) of the Fund Regulation.

This procedure was introduced in 1979 under Article 5(2)(a) and (b) of

the Fund Regulation.

Phase 2:

•

1 I

Chapter II - Fund activities

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Phase 3:

Following the prior information procedure and the op1n1on

delivered by the Fund Committee,

the Commission

decides(U) on the aid to be granted and the benefiting

projects are

grouped "in decisions"(

9 )

receiving

assistance (see point 33 of this Chapter).

23.

It should be noted that, with r.ertain exceptions:

•

projects examined "for 1982" are projects contained in grant

applications which have reached the Commission during the twelve

months from October 1981 to September

1982(1

the projects referred to the Fund Committee for an op1n1on are

projects accepted on completion of the examination procedure for

1982, plus projects proposed in earlier years which had not been

fully examined and had been provisionally set aside;

the grant decisions taken in 1982 concern the projects accepted

on completion of the procedure described above and which could be

financed out of the 1982 budget, together with projects accepted

at the last examination in 1981 but on which no decision had been

taken owing to a shortfall in resources from the 1981 budget.

•

These facts explain why, within one calendar year, no direct

comparison can be made between the figures for the stages of

examination, referral to the Fund Committee and the decision, all

described below.

24.

This Chapter deals only with investment projects, not studies, even

though they belong to the Fund's quota section. The Commission takes

the grant decisions for studies without consulting the Fund

Committee, but informs the Member State concerned by such decisions.

Consequently, the amounts relating to studies must be added to those

for investment projects (see Annex Table

1).

However, in the chapter "Financial Management and Control", the

aggregate amounts relating to the figures for commitments and

payments cover both investment projects and studies financed by the

ERDF.

Decisions are generally adopted in series (allocations of grants)

four times a year, shortly after the Fund Committee meetings,

In fact, this period is more exactly determined by the deadline by

which applications must be submitted for the last Fund Committee

meeting of the year to be able to deliver an opinion on the projects

concerned.

ERDF ·

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Table 1

EBDF

quota section (excluding studies).

Number of proiects. assistance applied for. investments concerned.

Investment projects examined for 1982.

(Mio ECU)

By Member State

Industry,craft ind,

services

Invest, of

less than

10 Mio ECU

1.18

11.11

2.76

32.91

142

16.29

393.61

7.88

41.98

180

15.72

238.10

21.69

119.49

344

54.23

287.80

Total

3.68

35.06

2.76

32.91

158

31.01

787.62

13.64

108.88

183

21.23

306,92

29.81

171,01

346

64.24

338.48

Invest. of

10 Mio ECU

or more

1.84

15.02

5.72

34.53

3.73

28.49

110.85

352.43

311.77

2733.44

88,27

2021.63

594.11

2672.78

Infrastructure

Invest. of Mountain

less than or hill

10 Mio ECU

areas

8.85

33.60

109

9.38

27.07

26.83

109.77

163

84.46

286.15

1013

78.44

321.95

1.60

5.61

TOTAL

Total

12.29

54.23

111

15.10

61.60

30.56

138.26

169

195.31

638.58

15.97

89.29

154

17.86

94.51

247

61.57

925.88

191

208.95

747.46

Nber of projects(a) Invest. of

(b)

10 Mio ECU

Assistance

Investments

(c)

or more

(a)

(b)

(c)

(a)

DJC

2.50

23.95

(b)

(c)

(a)

14.72

394.01

5.76

66.90

5.51

68.82

8.12

51.52

(b)

(c)

{a)

0.32

1.00

21.91

77.69

(b)

(c)

(a)

(b)

(c)

(a)

1041

1224

390.21

411.44

3055.39 3362.31

88.59

2022.63

118.40

2193.64

IRL

(b)

(c)

(a)

(b)

2093

317.10

1004.77

2.23

7.44

(c)

(a)

10.01

50.68

2152

2498

933.12

997.36

3755.24 4093.72

2.Z3

7.44

12.65

61.80

634

370.97

2270,69

2.23

7.44

21.31

143.78

688

424.24

2617.73

(b)

{c)

(a)

(b)

(c)

(a)

42.58

268.89

89.20

924.77

8.66

81.98

10.69

78.15

831

139.10

1285.13

8.66

81.98

53.27

347.04

868

228.30

2209.90

11.95

58.30

132.10

1412.28

127

1260.34

9328.90

3.75

12.12

27.58

96.42

o. 70

3.50

577

235.12

846.29

4064

763.11

2640.54

(b)

(c)

(a)

EUR 10

(b)

(c)

4249

5117

2051.03 2279.33

12065.86 14275.76

Chapter II - Fund activities

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SUBMISSION OF GRANT APPLICATIONS

25.

Again this year Member States were too slow in the first months in

submitting their grant applications to the Commission; this meant

that Commission departments were required to deal with two thirds of

the investment projects for 1982 in a very short space of time before

the Fund Conunit tee's last meeting of the year, The delaying of

applications until the last date on which they can be accepted for

examination throws the work of the Commission departments and of the

Committee out of balance and means that almost

70~

of the grants made

for 1982 were decided and conunitted at the end of the year(

15 ) ,

The

Commission is considering what steps can be taken to improve this

situation.

Table 2

ERPF quota section (excluding studies under Article 12).

Breakdown by investment category of assistance and

inyestment relating to applications exarnined in 1982.

Investment

categories

Assist.

requested

~lio

ECU

Invest.- Assist.

requested

ments

~Iio

ECU

Invest.-

ments

- Industry, craft industry.

and services.

Projects costing

10 Mio ECU or more.

Projects costing less

than 10 Mio ECU,

Total,

- Infrastructure.

Projects costing

10 Mio ECU or more.

Projects costing less

than 10 Mio ECU.

Projects costing less than

than 10 Mio ECU in mountain

or hill areas(1).

Total,

TOTAL.

89.20

139.10

228.30

924.77

1285.13

2209.90

3.9

6.1

10.0

6.5

9.0

15.5

1260.34

763.11

27.58

2051.03

2279.33

9328.90

2640.54

96.42

12065.86

14275.76

55.3

33.5

1.2

90.0

65.3

18.5

0.7

84.5

100.0

(1) Within the meaning of Directive 75/268/EEC of 28 April 1975 on

mountain and hill farming in certain less-favoured areas.

See Table 5.

ERDF

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26.

The Commission, in the interests of making a better selection of

projects, has for several years asked Member States to submit

applications for grants totalling more than their quotas in the Fund.

In 1982 Greece, Italy, Ireland and the United Kingdom did so and

applied for amounts substantially larger than their entitlements for

the year.

During the year, the Commission examined grant applications

concerning 5,117 investment projects: 657 of them had been submitted

before 1982 and 4,460 were submitted in 1982. Taken together, the

projects examined for 1982 (broken down by r.lember State in Table

were the subject of applications for assistance totalling

2,279.33 Mio ECU (an increase of 11,6% over 1981) and represented

investment totalling 14,275.76 Mio ECU. Table 2 gives a breakdown in

nominal value and as a percentage of the assistance applied for and

of the investment concerned by investment category within the

meaning of the Fund Regulation.

27.

OUTCOME OF EXAMINATION OF QRANT APPLICATIONS

28,

Of the 5,117 investment projects examined, 3,185 projects were

accepted on completion of the examination procedure. The 1,932

projects which failed to obtain a Commission grant decision in their

favour did so for the following reasons:

•

1,284 Projects were not fully documented and the Commission

requested further information; when the dossiers are complete,

some of these projects may receive ERDF assistance;

422 projects were rejected because they related to sensitive

industries (e.g. where there are risks of structural

overcapacity);

194 projects failed to fulfil the formal conditions laid down by

the Fund Regulation (location in an assisted area, minimum of 10

jobs to be created, investment to cost more than 50,000 ECU,

investment not to be completed by the date on which the

Commission receives the grant application) or did not respect

certain Community procedures, e.g. with regard to public

contracts;

•

Chapter II - Fund activities

.2)

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•

projects were rejected because they made no clear

contribution to the development of the region in question, or

because the aid schemes from which they benefited were

incompatible with the Community's competition rules, or because

the nature of the investment did. not conform to the guidelines

adopted by the Commission;

•

14 projects were withdrawn at the request of the member States

which had submitted them.

Table

gives a breakdown of the number of rejected projects by

Member State and by investment category.

Iable 3

EBDF quota section (excluding studies under Article

12).

Breakdown of the nurober of inyestment projects rejected

on completion of the examination procedure

1982.

Industry, handi-

craft and services

Infrastructure

Total

Member

State

Invest. of Invest. of Invest. of Invest. of Mountain

Mio ECU less than

Mio ECU less than or hill

or more

Mio ECU or more

Mio ECU areas

IRL

183

858

772

915

963

EUR

264

1650

1932

29.

Added to the

3,185

investment projects accepted on completion of the

examination procedure for

1982

grant applications were a further

150

projects on which no decision could be taken after examination in

earlier years. Table 4 gives a breakdown by

~!ember

State of the

3,335

investment projects which were the subject of "draft decisions" in

1982.

ERDF

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Table 4

EBDF quota section (excluding studies under Article 12).

Outcome of examination of inyestment projects in 1982.

Number of projects

Member

State

for 1982

examined

accepted

Carried forward

from previous

years and

accepted

in 1982

Accepted on

completion of

1982

examination

procedure

150

230

318

240

1614

675

3335

IRL

154

247

1224

191

2498

150

230

309

188

1535

688

5117

674

3185

EUR 10

150

CONSULTATION OF THE FUND COMMITTEE

30.

In accordance with the procedure under Article 16 of the ERDF

Regulation. draft decisions were referred to the Fund Committee for

its opinion on all large projects costing 10 Mio ECU or more. and on

small projects costing less than 10 Mio ECU(

16 )

for which referral to

the Committee was requested by a Member State(

17 ) .

The Fund Committee held four meetings in 1982, in March. May. July

and November. The March meeting dealt solely with a non-quota

specific measure; at the other three meetings the Committee's

opinion was obtained on draft grant decisions.

For infrastructure investments in this category, the Commission,

before seeking the opinion of the Fund Committee, consults the

Regional Policy Committee (see Article 5(2)(a) of the Fund

Regulation).

Article 5(2)(a) and (b) of the Fund Regulation.

Chapter II - Fund activities

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31.

Of the 3,335 investment projects accepted by the Commission, 704 were

discussed by the Fund Committee.

This year again, the Prior information procedure introduced in 1979

greatly simplified the work of the Committee, for, of 3,178 projects

costing less than 10 Mio ECU, only 547 (17%) needed to be discussed

at the meetings. The Committee also examined the 157 projects

costing 10 Mio ECU or more. None of the projects referred to the

ERDF Committee was rejected; six were withdrawn at this stage by

Member States, on only one no opinion was delivered; all the rest

were endorsed.

32.

At the end of the day, of the 3,335 investment projects accepted on

completion of the examination procedure, 3,329 projects were

approved as qualifying for a grant decision by the Cormnission.

However, owing to a shortfall in budget resources in 1982, 149 of

these projects will have to wait until 1983 to be the subject of a

grant decision.

Table

ERQF quota section (excluding studies under Article 12).

Grant decisions in 1982; number of investment projects.

investment. assistance granted under each allocation.

Allocation of grants in

March

Number of projects

Amount in Mio ECU

- of investments

- of grants

June

770

2981.54

299.74

Sept.

333

2931.34

205.81

Dec.

2077

5727.94

1278.31

3269

12172.64

1862.24

Total

531.82

78.38

GRANT DECISIONS

33.

After having obtained the necessary opinions of the Regional Policy

Committee and the Fund Committee in accordance with the Fund

Regulation, the commission in 1982 adopted decisions on grants to

3,269(

18 )

investment projects for a total of 1,862.24 Mio ECU(

19 ) .

As in previous years, there were four allocations of grants (see

Table

5).

Out of the 3,329 projects finally accepted for 1982, 149 must wait

until 1983 to be the subject of a grant decision (see point 32). To

the 3,180 remaining projects must be added 89 accepted in 1981 but

where to be financed in 1982 (see last paragraph in point 33).

This figure does not cover the ERDF financing of part of the cost of

studies under Article 12 of the Fund Regulation (see point 46).

ERDF

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Table 6

EBDP ouota section (excluding studies under Article 12).

Number of projects. assistance applied for. investments concerned.

Inyestment prgiects examined ·fgr 1982.

(Mio ECU)

Member State

Industry,craft ind.

services

Invest. of

less than

10 Mio ECU

3.49

33.07

2.52

31.21

135

15.73

376.95

8.56

47.83

129

11.25

166.15

23.71

151.27

161

38.53

205.69

Total

6.95

79.53

2.52

31.21

149

26.62

630.76

14.32

110.83

131

13.93

193.79

32.81

220.66

163

48.54

256.36

Invest. of

10 Mio ECU

or more

1.84

15.02

5.72

34.50

3. 73

28.49

113.12

458.31

299.91

864.06

81.17

2004.63

366.32

2015.97

Infrastructure

Invest. of

less than

10 Mio ECU

8.21

32.47

111

9.46

27.40

25.01

91.41

176

97.09

472.52

153

30.54

113.99

~fountain

Nber of projects(a) Invest. of

(b)

10 Mio ECU

Assistance

Investsments

(c)

or more

TOTAL

Total

11.58

53.36

113

15.18

61.90

28.74

119.90

188

210.21

930.83

181

330.45

978.05

81.49

2005.68

1429

570.30

2680.68

2.23

10.80

12.65

44.35

18.53

132.89

152

17.70

93.11

230

55.36

750.66

212

224.53

1041.66

312

344.38

1171.84

114.30

2226.29

1592

618.86

2937.04

2.23

10.80

17.46

85.73

or hill

areas

1.53

5.87

(a)

(b)

(c)

(a)

(b)

3.46

46.46

(c)

10.89

253.31

5.76

63.00

2.68

27.64

(a)

(b)

(c)

(a)

(b)

(c)

(a)

(b)

(c)

(a)

0.32

1.00

19.99

73.72

IRL

(b)

(c)

(a)

(b)

(c)

(a)

(b)

(c)

(a)

(b)

9.10

69.39

10.01

50.67

1383

183.99

590.99

2.23

10.80

(c)

(a)

4.81

41.38

9.44

68.28

587

118.04

1121.83

4.81

41.38

87.28

1507.63

621

237.78

3072.15

11.95

40.85

136.43

1401.25

118

1020.19

6863.08

3.50

554

2221.83

802.94

2475

579.06

2146.02

3.37

10.80

25.21

91.39

(b)

(c)

(a)

77.84

1439.35

119.74

1950.32

609

656

361.63

448.91

2214.99 3722.62

2648

3269

1624.46 1862.24

9100.49 12172.64

EUR 10

(b)

(c)

Chapter II - Fund activities

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The 89 projects in the first 1982 allocation had already been

accepted in November 1981 as qualifying for grant decisions, but no

decisions had been adopted for lack of funds.

Investment projects

34.

Table 6 gives for each Member State and for each investment category

within the meaning of the Fund Regulation:

•

the number of investment projects having received grant aid

the volume of investment assisted and

the amount of grants.

amount of grants, 33% went to projects in Italy and

the United Kingdom. France and Greece come next with

of the assistance granted. These percentages reflect

of the geographical concentration of ERDF operations

allocated to the Member States.

Of the total

almost 25% to

18.5% and 12%

the principle

and the quotas

35.

The discrepancies noted between the distribution of grants and the

quotas for each Member State stem chiefly from the Member States'

take-up of their quota in earlier years and the increase or decrease

in the shares falling to each them in 1982 out of the initial budget

allocation as a result of a positive or negative balance of

appropriations at the end of 1981 (see Chapter III, Table 11). For

the purposes of Fund management, the Commission takes the view that

the quotas allocated to Member States need not be strictly adhered to

within any one year - in which. there may be too few grant

applications to use up the quota or some may be rejected - but over a

long period.

Table 7 gives a breakdown of the aggregate amount of grants and of

investment by category of investment project for 1981 and 1Y82; it is

discussed below.

The proportion of grants to projects involving an

inve~tment

10 Mio ECU or more was 61.1%, which reflects the priority given to

large projects pursuant to Article 7(5) of the ERDF Regulation. The

projects concerned are for the most part large infrastructure

projects absorbing almost 55% of ERDF grants and are particularly

significant in France, Ireland and the Netherlands (87%, 71% and

68.5% of the amount of grants made in these countries).

36.

37.

ERDF

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Table 7

EBDF quota section (excluding studies under Article 12).

Breakdown Cin

of grants

by investment category).

Industry, handi-

craft and services

Member

State

Infrastructure

TOTAL

Total

Invest Invest

Invest Invest Moun-

10 Mio

Total 10

~lio

tain/

ECU or 10 Mio

ECU or 10 Mio hill

ECll

ECU areas

In 1981

20.0

14.8

6.5

0.3

34.8

39.6

3.3

15.4

10,5

3.5

34.8

IRL

13.0

5.4

18.7

4.5

6.5

59.9

59.6 4.8

3.3 38.3

30.2 50.6

80.2

3.8 71.1

17.5

11.9

84.2

27.2

52.9

34.1

40.1

35.6

58.4

19.2

2.7

25.1

100.0

15.8

53.1

34.7

31.1

0.1

2.2

65.2

100.0

40.4

96.7

69.8

83.0

96.2

100.0

82.5

88.1

100.0

100,0

100.0

EUR 10

o.s

8.3

In 1982

IRL

19.7

2.6

0.8

8.0

1.6

17.3

6.4

18.8

14.2

28.4

3.8

3.3

20.7

6.2

2.1

6.4

27.5

37.5

14.2

48.1

6.4

4.1

28.7

7.8

27.5 68.5

19.4 30.4

12.8

54.7

9.9

32.3

6.7

50.4

87.0

71.0

59.3

44.3

53.5

45.2

43.2

8.9

29.7

100.0

4.0

0.3

3.2

49.4

31.1

0.8

1.4

62.5

85.8

51.9

93.6

95.9

71.3

92.2

100.0

72.5

80.6

87.2

100.0

EUR 10

38.

Of the infrastructure projects costing 10 Mio ECU or more, 30% have

benefited from grants of up to 407. of the expenditure incurred

the

public authorities(

10 ) ,

a possibility introduced by the amended ERDF

Regulation of February 1979, while 137. of these projects received

grants of less than 307..

Projects which are of particular importance to the development of the

region, Article 4(2) (b) of the ERDF Regulation.

Chapter II - Fund activities

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39.

The proportion of grants to industry, craft industry and services was

only 12.82 of total grants in 1982, with substantial differences

between Member States: the proportion was 482 in Germany, 38% in

Belgium and some 28% in Ireland and the Netherlands, but only 19% in

the United Kingdom, 14% in Denmark and under 8% in the other

countries. OVerall, this situation is a slight improvement on 1981,

when the percentage of Fund resources devoted to the productive

sectors (11.9%) was the lowest since the Fund's establishment, but is

still very far from the target of 30%. Under Article 4{1)(b) of the

ERDF Regulation, the 70% limit on the proportion of Fund assistance

devoted to infrastructure investment does not apply to the

individual Member States, but to all ERDF resources in the quota

section and must be complied with over a period of three years.

While this slippage has not yet given rise to legal problems, it is

still evidence of a trend to which the attention of

~!ember

States

should once again be drawn.

In seven Member States, the proportion of grants to industry, craft

industry and services was higher in 1982 than in 1981 - considerably

higher in the Netherlands, Denmark and Ireland. By contrast, in

France such grants accounted for only 4% of ERDF grants made in 1982

(compared with 30% in 1981), while in the Federal Republic of Germany

the proportion fell by 12 points from 60% in 1981 to 48% in 1982.

40.

At Annex

Tables 2, 4 and 6 and a short summary show the categories

of investment assisted by the Fund.

Transport, with 36%, and water engineering, with 29%, still take up

nearly two thirds of the assistance granted by the Fund to

infrastructure projects. However, the categories of infrastructure

financed vary from one

~tember

State to another, depending on national

policies and regional priorities.

Studies

41.

In 1982 the Commission decided to make grants totalling 2.07 Mio ECU

to the following studies:

•

a study on the use of hydroelectric energy

0.12 Mio ECU;

in Greenland:

a study

the decentralization of transport services in Greece:

0.07 Mio ECU;

a study on the improvement and utilization of the Alifana rail

network at Naples: 1.47 Mio ECU;

a study on the renovation of the petrochemical complex and the

development of the Gela area in Sicily: 0.19 Mio ECU;

ERDF

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•

a feasibility study on the construction of a road between Newry

in Northern Ireland and Dundalk in Ireland: 0.04 f.fio ECU divided

equally between the study in Ireland and the study in Northern

Ireland;

a study on the use of lignite in Northern Ireland: 0.12 Mio ECU;

a technical study on the construction of a breakwater at the port

of Mallaig, Scotland, 0.06 Mio ECU.

•

42.

Table 8 shows that the Fund's expenditure on studies under Article 12

is rather unbalanced geographically and in the numbers of

applications: but it should be remembered that for the Member States

and the Commission alike this new type of co-financing has its

experimental sides both as regards the selection(

21 ) ,

on the basis of

their features and usefulness of the study subjects submitted, and as

regards their implementation and their monitoring by the Commission.

Table 8

EBDF quota section Studies under Article 12.

Situation at 31.12.82- 1980-82(1)

Number of

applications

Number of studies

assisted

Number of studies

for which payment

already made

Stud-

dies

compl.

Number

Member

State

1980 1981 1982 Total Number

Number Amount

Amount

Mia ECU(2)

Mio ECU(3)

IRL

0.180

2.604

0.613

7.814

0.365

708

0.110

1.069

EUR 10 39

11.576

1.887

(1)

From 1975 to 1979, ERDF involvment in studies was limited

to one operation in Ireland and the United Kingdom

(2 studies in 1976), bringing the number of studies financed

by the Fund since 1975 to 30).

(2)

Converted into ECU at the rate obtaining in January of the year

of the decision.

(3)

Converted into ECU at the rate obtaining in the month of payment.

The principal criteria for selection were: a close link with

investment projects, the importance of these projects for the

development of the region and the complementary nature of the Fund

aid.

Chapter II - Fund activities

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To start with, the Commission's departments selected only 28 studies

out of the 76 submitted; this meant that relatively few of the

Italian applications received in 1980 were accepted. When the

priorities were established, some studies were rejected on the

following grounds:

•

questionable eligibility; for example, studies that were too

general in character or had no direct link with Fund operations;

the studies were in fields of applied research or were rather

costly; for example, in mining or geothermal energy research.

43.

The state of progress of the co-financed studies is unsatisfactory;

payment claims have been put in for only six studies, with the result

that less than one fifth of the total committed has been paid. In

this regard Greece, Italy and United Kingdom are behindhand.

Generally speaking, the delays appear to be caused by postponement of

the studies and the lack of experience among certain departments,

particularly regional government, in launching and following up this

type of project(ZZ).

NON-QUOTA SECTION

IMPLEMENTATION OF SPECIFIC MEASURES

44.

As provided for in Article 13 of the ERDF Regulation, specific

Community regional development measures financed under the non-quota

section are to include measures "linked with Community policies and

with measures adopted by the Community in order to take better

account of their regional dimension or to reduce their regional

consequences". On a proposal from the Commission, a first series of

non-quota measures was adopted by the Council on 7 October 1980.

These measures seek to promote the development of certain

Mediterranean regions (the Mezzogiorno and South-West France -

Regulation (EEC) N. 2615/80) in the context of the enlargement of the

Community, the creation of new activities in certain areas seriously

affected by the restructuring of steel industry (in Belgium, Italy

and

t~~

United Kingdom - Regulation (EEC) N. 2618/80) and in

similarly hard-hit shipbuilding areas (in the United Kingdom -

Regulation (EEC) N. 2617/80), and an improvement in the security of

energy supply in inland areas in the Mezzogiorno (Regulation (EEC) N.

2618/80). A measure to assist border areas in Ireland and Northern

Ireland (Regulation (EEC) N. 2619/80) was also adopted.

During the first half of 1983 the Commission's departments approached

the l'fember States concerned in an attempt to remedy this situation.

ERDP

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45.

These non-quota measures differ from those under the quota section of

the Fund as regards both the nature of operations assisted and the

financing procedures(

23 ) :

•

they combine a range of initiatives to improve the economic

environment for firms and harness the indigenous development

potential of the regions benefiting; they are designed to help

small and medium-sized enterprises (SMEs) and craft industries

and to promote innovation, rural tourism and alternative sources

of energy;

they are implemented in the form of special multiannual

programmes presented by Member States and approved by the

Commission;

the contribution from the Fund

s non-quota section to these

programmes amounts to 220 Mio ECU for the period 1981-85; the

commitments each year depend on the funds available in the budget

and on the progress of the programmes;

the grants made and annual commitments are expressed directly in

ECU and not in national currency as is the case with grant

decisions for projects assisted under the quota section of the

Fund,

Table 9

Grants for non-quota prograrnmes.

Total

Commit- Commit- Commitments 1981

allocat- ments

ments and 1982 as

ions ov. 1981

1982

total

years Mio ECU Mio ECU

allocation

Mio ECU

•

Programmes

France (Enlargement)

Italy (Energy)

Italy (Enlargement)

Ireland (Border areas)

United Kingdom

(Border areas)

United Kingdom (steel-

making areas)

United Kingdom

(Shipbuilding)

Belgium (Steel-

making areas)

TOTAL

15.56

5.03

16.13

3.22

0.47

12.67

-(1)

- (1)

-(1)

12.76

6.51

0.80

32.74

51.3

31.4

24.8

20.1

5.9

38.7

38.3

16.2

33.9

216

0.17

40.58

(1)

Since the first tranche of the 1981 grant for this programme was

not exhausted, no commitments were made under the second

tranche in 1982.

See Sixth ERDF Annual Report (1980), p. 4.

Chapter II - Fund activities

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46.

By the end of 1982, the Commission, after consulting the Fund

Committee, had approved all the special programmes forming the first

phase of the specific measures adopted by the Council, with the

exception of that for the steel-making areas in Italy. (The

assistance allocated to this programme amounts to 4 Mio ECU out of a

total of 220 Mio ECU for the whole non-quota programme.) Table 9

provides details of the grants and commitments in 1981 and 1982 for

each of the programmes so far adopted.

Although there was some delay in launching the specific measures

(caused in some cases by the need to adopt special national rules and

by the switch from "individual project" procedures to "multiannual

programme" procedures), virtually all the measures are now under

way. Their implementation is steadily approaching a normal level in

that the commitments made in 1981 and 1982 account for one third of

the total allocation for the five-year period (see chap. III, point

76).

In 1982, a first tranche of commitments was released for the

shipbuilding and steel area programmes in the United Kingdom, while a

second tranche for financing new measures was activated for the

enlargement programme in France and for the steel area programme in

Belgium.

The implementation of the specific regional development measures

under the non-quota section is described below.

PROGRAMME IMPLEMENTATION

47.

The enlargement measure: Regulation (EEC)

2615/80

Under this measure, Community assistance totalling

Mio ECU and

55 Mio ECU respectively has been granted to the special programme for

the ;1ezzogiorno and to that for South-West France (Aquitaine,

Midi-l'yrenees and Languedoc-Roussillon). These two programmes are

designed to encourage economic activities outside agriculture and to

diver:;ify employment opportunities with a view to correcting the

unfavourable effects of Community enlargement. They comprise

measures to help small and medium-sized enterprises and craft

industries, to promote innovation and to boost rural tourism.

The programme presented by Italy for

measure was approved by the Commission

range of operations provided for in

changes in national and regional laws,

of the programme.

implementing the enlargement

on 3 December 1981. The wide

the Regulation necessitated

and this delayed commencement

As a first step, the Italian authorities have decided to concentrate

the available resources on aids to enterprise, to be followed by the

financing of more conventional projects, notably infrastructure

projects.

ERDF

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The Cassa per il Mezzogiorno was made responsible for the programme

on 28 May 1982 under LawN. 748/75 and the Ministerial Decree of 27

July 1976, Involved in its execution are the regional governments,

numerous public agencies such as the Istituto d'Assistenza per lo

Sviluppo del Mezzogiorno

(IAS~f),

the Finanziara Meridionale Trading

(Fnm TRADING), the Centro di Formazione et Studi per

Mezzogiorno

(FORMEZ) and Iniziative per il Sud (INSUD), various .trade

associations such as the Associazione Nazionale Agricoltura e

Turismo (ANAGRITUR) and the Confederazione Italiana della Piccola e

Media Industria (CONFAPI), and regional groupings of cooperatives.

In all, 120 projects under the non-quota measure were submitted,

mainly by trade associations and semi-public agencies. Only 66 of

these were approved; to finance them in full, the Community would

need to allocate 96 Mio ECU to the special programme, much more than

the actual allocation of 65 Mio ECU. Assistance will go mainly to

SMEs and to innovation projects, taking up

76~

of the Community's

contribution, the balance going to craft industry and to rural

tourism.

The breakdown of expenditure at 30 November 1982 was as follows

(examples of projects assisted are given in brackets):

•

For SMEs: 4S%

sectoral analyses: 19.7% (mainly the agri-food and footwear

industries);

management advisory services: 7% (a new technical assistance

centre for

s~ms,

craft businesses and cooperatives in

Sicily);

common services: 9.5% (a common service for several

industries in Calabria);

information briefings: 11.57. (micro-electronics, energy

conservation);

access to risk capital: 0.3%.

•

For innovation: 9.5%

(feasibility studies on behalf of electronics companies);

•

For the craft industry: 12.7%

(appointment of technical assistants in mountain areas);

•

For rural tourism: 29.8%

tourist accommodation: 0.8%

promotion of tourism: 24.97. (including regional and

provincial offices responsible for promoting farm holidays);

tourist facilities: 4.17..

An information briefing on the opportunities offered by Regulation

2615/80 was held on 25 June 1982; and various information campaigns

were launched by the agencies implementing the programme (e.g. by

Forumz with regard to information on innovation).

Chapter II - Fund activities

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The programme presented by France for implementing the enlargement-

measure was approved by the Commission on 10 June 1981.

The Delegation a l'Amenagement du Territoire eta !'Action Regionale

(DATAR) - Mission du Grand Sud Ouest - is responsible for the

programme. Involved in its implementation are numerous public and

semi-public agencies such as the Agence Nationale pour la

Valorisation de la Recherche (ANVAR) and the Agences Regionales

d'Information Scientifique ou Technique (ARISt), and various trade

associations (Chambres of Commerce and Industry, Chambres de

Metiers).

The starting-up phase took longer than planned because of the need

fqr changes to the legislation on tourism and for new special

management procedures; for example a special commission involving

locally elected representatives was set up to award innovation aids.

At 1 December 1982, the breakdown of expenditure was as follows:

•

For SMEs: 55.5%

sectoral analyses: 2.47. (three market intelligence units -

Centres d'Observation de Documentation et d'Information sur

les marches (CODIM) - to work in close association with the

regional scientific and technical information agencies

(ARISI) and provide information on the economic prospects

for individual techniques and products);

investment: 32.97. (energy conservation, automation of

production processes, modernization of sawmills in the

Pyrenees, etc.);

management and common services: 7.3% (aid for SMEs calling

in consultants);

infrastructures : 9.3% (communications with industrial anc

craft industry zones);

briefings: 2.4% (technology exchanges, energy conservation

access to risk capital: 1.2%;

•

For innovation: 29.07.

information on innovation: 8.5% (meetings and events

organized by ANVAR, a new network of technological

advisers);

application of innovation: 13.57. (including two new

procedures:

Consultancy

contracts

for

calling

technological advisers and feasibility studies carried out

on behalf of 40 companies);

•

For the craft industry:

2.57.

information for craft workers: 0.87. (four new decentralized

units of the Chambres de Metiers);

promotion of craft activities: 1.77. (enhancing the market

value of pine furniture);

ERDF

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•

For rural tourism:

20~

tourist accommodation: 13.9% (assistance for small country

inns and restaurants and for farmhouse accommodation);

promotion of tourism:

1.2~

(three new local booking

offices);

tourist facilities:

4.9~

(local museums, signposting of

tourist routes, etc.);

The projects assisted under the non-quota section during the first

year should eventually create

2,000

new jobs.

The public authorities are mounting a vigorous campaign to inform

potential recipients and trade interests about the possibilities

offered by the special programme. In particular, over

4,000

copies of

a newsletter are sent out regularly by the DATAR - Mission du Grand

Sud Ouest, the purpose being to keep firms informed of the

arrangements for implementing the special programme.

In their first annual report, the French authorities say that, for

investment aids among others, the financial resources available for

SMEs or for· tourist accommodation are already clearly inadequate.

48.

The steel areas measure: Regulation (EEC) N. 2616/80

The purpose of this measure is to promote activity and employment in

the areas adversely affected by the restructuring of the steel

industry.

provides for the reclamation of rundown industrial

sites and urban localities, the creation or expansion of consultancy

firms and common services, the promotion of innovation in industry

and the services sector and easier access to risk capital for

S~IEs.

At the end of 1982 the Italian authorities had not yet presented to

the Commission the special steel areas programme for the province of

Naples.

Belgium

The programme presented by Belgium was approved by the Commission on

17 December 1981. It covers the steel-making areas in the provinces

of Luxembourg, Liege and Hainaut (except the districts of Ath and

Tournai) and has been allocated Community assistance totalling 6 Mia

ECU.

The programme is to be carried out by the Ministry of the Walloon

Region as regards new technologies and the

s~ms,

and managed by the

technological contracts unit (Cellule de Gestion des Contrats

Technologiques, CGCT).

Because most of the planned measures are the first of their kind in

Belgium, special implementing and budget management procedures have

had to be introduced, and this has caused some delays.

Chapter II - Fund activities

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Given the limited funds available, the Belgian authorities have

decided to focus on the promotion of technological innovation. Four

types of support measure are planned:

•

financing of feasibility studies:

internal

feasibility:

innovation

specialists

("technological development experts") to be placed at the

disposal of SMEs in order to identify their internal

technical potential for innovation;

external feasibility: appraisal from market surveys based on

product and cost considerations of the way in which

innovation potential identified should be exploited;

technological feasibility: taking over of responsibility for

R&D projects, including prototype development, with a view

to conducting the necessary innovation tests;

•

circulation of a regular newsletter on innovation;

a new specialized agency providing information on request;

surveys of the market potential abroad for licensing agreements.

the largest

programme).

involve 88

group of 12

development

The "internal feasibility studies" have been allocated

share of the grant (around half of the total cost of the

The preparatory phase of the operation, which will

enterprises, has been completed; by the end of 1982, a

selected companies had recruited a "technological

expert".

The other measures in the programme will be launched in 1983.

A number of information campaigns, especially in the press, have been

mounted by the Belgian authorities.

Widespread interest has been shown in the operation and it is already

apparent that the funds available are inadequate.

United Kingdom

The special programme for the steel areas measure was approved by the

Commission on 29 April 1982.

The programme covers the Strathclyde region, the counties of

Cleveland, Clwyd, South Glamorgan, West Glamorgan and Gwent and the

employment office area of Corby.

has been allocated Community

assistance totalling 33 Mio ECU.

ERDF

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The Department of Industry and the Scottish Economic Planning

Department are responsible for the programme and the local

authorities are involved in its execution.

The UK authorities have decided to concentrate on the rehabilitation

of industrial sites. However, among the aids to enterprise a special

effort has been made in Scotland with the introduction by the

Scottish Economic Planning Department of the Business Plan Service.

Companies can call in this low-cost advisory service, which is

independent of the private sector, to draw up their financing plans.

Most of the financial institutions in Scotland use the Business Plan

as a basis on which to take swift decisions on finance applications.

At 31 December 1982, the breakdown of expenditure was as follows:

•

rehabilitation of industrial sites:

737.

(59 projects are already

under way);

management advisory service: 17.1% (58 companies have taken

advantage of this facility);

common services: 3.7% (9 grant applications have been accepted);

innovation promotion: 5.6%.

business access to risk capital: 0.67..

New activities on redeveloped sites are expected ultimately to

provide jobs for 10,000 people.

The possibilities offered by the special programme have received

very wide publicity:

•

announcements in Parliament and in the regional and national

. press by the Department of Industry, the Scottish Economic

Planning Department, the Welsh Office and the Department of the

Environment;

SMEs have been notified of the aids available in notices to

banks, chambers of commerce and the local authorities;

several briefings have been held, notably in Strathclyde at the

inauguration of the Business Plan Service.

•

This information campaign has generated considerable interest among

both local authorities (elimination of industrial decay) and SHEs

(aids to enterprise). Several hundred companies submitted aid

applications and in less than eight months close on half of the

financial assistance available for the entire programme was

committed. The

authorities say in their annual report that aid

applications will certainly outrun the money available.

49.

The shipbuilding areas measure in the United Kingdom: Regulation

(EEC) N. 2617/80

The United Kingdom special programme for the shipbuilding areas

measure was approved by the Commission on 20 July 1982.

Chapter II - Fund activities

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This programme, allocated Community assistance totalling

Mio ECU,

concerns the Strathclyde region, the counties of Cleveland, Tyne and

Wear, Merseyside and the Belfast urban area.

is designed to

promote activities that will provide new jobs and, in particular, to

encourage the creation and development of SZ.IEs in the areas adversely

affected by the restructuring of the shipbuilding industry.

comprises measures identical to those in the United Kingdom steel

areas programme.

The Department of Industry. the Department of Economic Development

(Northern Ireland) and the Scottish Economic Planning Department are

responsible for the programme and the local authorities are involved

in its execution.

As in their steel areas programme, the UK authorities have decided to

concentrate on the elimination of industrial blight.

At 31 December 1982, the breakdown of expenditure was as follows:

rehabilitation of industrial sites:

81~

(43 projects have

been started) ;

management advisory

~ervice:

16% (30 companies have availed

themselves of this service);

innovation promotion: 3%.

New activities on the reclaimed sites are expected to create 5,000

new jobs.

An extensive information campaign has been launched by the

Department of Industry, the Scottish Economic Planning Department,

the Department of Economic Development (Northern Ireland) and the

Department of the Environment.

is directed at Parliament, the

press and SMEs (through notices to banks, chambers of commerce and

the local authorities).

The local authorities (site reclamation) and SMEs (aids to promote

innovation) have shown considerable interest. It is already apparent

that grant applications will outrun the money available.

SO.

The energy measure in Italy under Regulation (EEC)

2618/80

The programme, which has been allocated Community assistance

totalling 16 Mio ECU, was approved by the Commission on 10 June 1981.

It includes measures for improving the security of energy supply in

mountain areas in the Z.1ezzogiorno, including the construction or

overhaul of small hydroelectric power stations, a survey of

resources and of sites suitable for small hydro installations and the

construction of small-scale wind-power and biomass-energy plants.

The Cassa per

~tezzogiorno

was made responsible for the programme

on 28 May 1982, under Law N. 748/75 and the

~linisterial

Decree of 27

July 1976. The Ente Nazionale per l'Energia Elettrica (ENEL) and the

Istituto d'Assistenza per lo Sviluppo del Mezzogiorno (IASM) are

involved in its execution.

In 1982, investment was concentrated on three mini power stations in

Sardinia, Calabria and Campania. The projects concerned with the

survey of hydro resources were completed and the authorities signed

contracts with the firms that are to perform the work.

ERDF

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A wind-power plant was constructed in Sardinia.

The feasibility study on the use of biomass and the related projects

were completed. Contracts are being negotiated with the farms where

the trials will be conducted and with the industrial companies that

will supply the equipment.

A briefing to publicize the possibilities offered by Regulation

2618/80 was held on 25 June 1982.

51.

The border areas measure in Ireland and Northern Ireland: Regulation

EEC N. 2619/80

This measure is designed to improve the economic and social situation

in the border areas of the two countries, which are among the most

disadvantaged areas of the Community. It involves measures to foster

tourism, improve tourist facilities, develop communications and

promote craft industry and small business.

Cross-border cooperation is a feature and regular meetings have been

held between the Northern Ireland Tourist Board and its Irish

counterpart (Bord Failte) with a view to improving coordination. One

result of this cooperation has been the joint publication of two

tourist brochures. In addition, one of the t:ourist information

offices that is to receive non-quota assistance is financed jointly

by the two boards.

Ireland

Ireland's programme for the border areas measure was approved by the

Commission on 10 June 1981. It has been allocated Community

assistance totalling 16 Mio ECU and covers the counties of Donegal,

Leitrim, Cavan, Monaghan and Louth.

The Department of Finance is responsible for implementing the

programme, and bodies such as the Irish Tourist Board (Bard Failte)

and the Irish Export Board (Coras Trachtala Teo - CTT) as well as the

local authorities are involved in its execution.

The information for 1982 is not yet available.

At the end of 1981, the breakdown of expenditure was as follows:

tourist accommodation: 23.6% (extension or modernization of

22 hotels, construction of holiday accommodation on some 60

farms);

promotion of tourism: 4.37. (financing of siK tourist

offices, printing of information brochures);

tourist facilities: 35.07. (a national park, a museum,

pathways and access areas to lakes or rivers);

improvement in communications with tourist areas: 16%

(improvements to several stretches of secondary roads);

development of transport activities;

development of and support for the activities of SHEs: 13.57.

(a new craft centre, market analysis, trade promotion

assistance);

In 1981, the special programme helped to provide or preserve over 200

jobs.

Chapter II - Fund activities

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The public authorities publicize the scheme in various ways, notably

at the time of the annual budget decisions relating to the financing

of the Special Border Areas Programme Fund, set up in 1980.

It looks as through the money available under the special programme

will be sufficient to meet the aid applications.

Northern Ireland

The United Kingdom's progranune for the border areas measure was

approved by the Commission on 10 June 1981. It concerns the areas of

Londonderry, Strabane, Omagh, Fermanagh, Dungannon, Armagh, Newry

and Mourne and has been allocated Community assistance totalling

Mio ECU.

Full information on the programme in 1982 has not yet reached the

Commission.

The specific measure launched by the Community has highlighted the

need to encourage local initiatives as a means of promoting and

stimulating economic activity in the border areas, particularly the

tourist trade.

Following the information campaign that accompanied the launching of

the programme in June

1981,

the district councils concerned have

submitted proposals for tourist accommodation and facilities and the

promotion of tourism and for improvements in communications.

NEW PROPOSALS FOR NON-QUOTA REGULATIONS

52.

In their annual reports on the implementation of the non-quota

specific measures, several Member States say that the resources

available already fall short of covering all the applications

received and satisfying the interest shown, particularly in the aids

to enterprise. Sone

~1ember

States make the point that similar

measures are needed to assist other regions or sectors of the economy

that are also experiencing serious difficulties.

The same view had been expressed by Parliament when it approved the

Commission's proposals almost unanimously on

~1arch

1980.

The Commission took account of these observations in its six

proposals for a second series of non-quota measures, transmitted to

the Council on

November

1982,

for which it recommended assistance

totalling 710 Mio ECU over five years.

The measures proposed concern the regions seriously affected by

industrial decline and the southern regions of the Community. Their

thrust is threefold:

ERDF

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Strengthening and extending measures currently being imPlemented

The Commission proposes that

introduced in 1980 should be

of 390

~fio

ECU to the initial

in question are those for

areas and steel areas.

four of the five non-quota measures

widened in scope, with the addition

total of 196 !Ilia ECU. The measures

enlargement, energy, shipbuilding

The increased resources would be allocated as follows: a twofold

increase for the enlargement measure (an extra 120 Mia ECU) and

the shipbuilding measure (an extra 17 mo ECU), the addition of

~lio

to the initial total of 16 Mio ECU for the energy measure,

and a very large increase for the steel areas measure, adding

230 Mia ECU to the initial 43

~lio

ECU.

The Commission proposes that all except the energy measure

should include the provision of business advisory services. This

means identifying job-creating economic initiatives and advising

existing or potential firms about access to financial aids and

public services. For the steel and shipbuilding areas measures,

the Commission also proposes aids to investment by

S~ffis

based on

the results of market research. These investment aids would be in

the form of capital grants and, in the case of the steel areas

measure, in the form of interest subsidies on Community global

loans.

Steel-making areas

The Commission attaches special importance to the steel areas

measure, as can be seen from the increase it is proposing -

230 Mia ECU. It is seeking to tie in this measure even more

closely with the Community's policy of restoring the

competitiveness of the Community steel industry, which means

cutbacks in production capacities. Action under the non-quota

section to create alternative activities in the areas concerned

is planned in two stages:

•

During the first stage, the current measure would be

extended to take in a few more areas in the United Kingdom

and in France where the recent sharp decline of the steel

industry is aggravating existing regional disequilibria. An

amount of 92

~lio

ECU would be allocated to this stage;

The second stage is to assist those areas that will have to

contend with substantial job losses under the restructuring

programmes for the steel industry that Member States are to

submit to the Commission. An amount of 138

~lio

ECU would be

spent on this stage.

•

Chapter II - Fund activities

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Extension of certain measures to include Greece

Under the Commission's proposals, Greece would benefit under two

of the second series of non-quota measures. They would concern

only the islands, whose remote location seriously impedes their

development.

The first measure is aimed at reinforcing the economic fabric of

the islands in view of the future enlargement of the Community to

include Spain and Portugal. The operations planned are the same

as those under the present enlargement measure now under way in

certain areas of France and Italy. The islands would also

benefit from projects to improve communications with the

mainland, the construction of water desalination plants and

protection of the environment.

The second measure is designed to improve the security of energy

supplies by making better use of new techiques for hydroelectric

power and alternative energy sources. The Greek islands would

therefore be included in the existing measure for the

Mezzogiorno, to which would be added a new geothermal energy

operation. Planned assistance for the two measures totals 60 Mio

ECU over five years, of which 40 Mio is for the enlargement

measure and 20 Mio ECU for the energy measure.

New measure to assist textile and clothing areas

The Commission proposes that an amount of 260 Mio ECU be devoted

to improving the physical environment, encouraging the

development of SY.1Es and fostering industrial innovation in

certain areas adversely affected by the restructuring of the

textile and clothing industry. This measure is intended to

benefit the main textile areas in Belgium, France, Ireland,

Italy, the Netherlands and the United Kingdom, which have all

sustained substantial job losses.

is aimed at promoting new economic activities as alternatives

to the textile and clothing industry and is similar in approach

to the steel and shipbuilding areas measures (see (a) above).

ERDF

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CHAPTER

I I I -

FINANCIAL MANAGEMENT AND CONTROL

BUDGET RESOURCES AVAILABLE

53.

This analysis of financial management concerns both the quota and

non-quota sections of the Fund. The grant operations under the two

sections are described in Chapter II.

In 1982, the Fund's total allocation of cornmi tment appropriations

adopted by the budgetary authority was 1, 759.5

~Ho

ECU, of which

1,669 Mio ECU for the quota section (Chapter 50 of the budget) and

90.5 Mio ECU for the non-quota section (Chapter 51). This

represented an increase in nominal terms of 14.3% over 1981

(1,540 Mio ECU), The total allocation amounted to 7.67. of the General

Budget of the European Communities in 1982, against 7.37. in 1981.

The budgetary authority fixed the Fund's total allocation of payment

appropriations at 1,075 Mio ECU, of which 1,015 Mio ECU for the quota

section and 60 Mio ECU for the non-quota section, an increase of

31.27. in nominal terms over 1981 (819.20 Mio ECU).

54.

55.

UTILIZATION OF COMMITMENT APPROPRIATIONS

QUOTA SECTION

56.

Operations

for

the adjustment,

release and

transfer of

appropriations carried out during the year in connection with the

financial settlement of Fund grants affected the total amount of

commitments available for appropriation from the quota section. At

the end of the day the appropriations available for 1982 amounted to

1,817.694 Mio ECU, compared with an initial allocation of 1,669 Mio

ECU adopted by the budgetary authority (see Table 10.1).

Chapter Ill - Financial Management and Control

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(Mia ECU)

Commitment appropriations available for 1982

Appropriations

entered

in 1982

budget

1669.000

Appropriations

outstanding

from

1981

(1) (a)

58.349

· Appropriations made available by:

release of

commitments

48.653

exch.-rate flue-

tuations affect-

ing amounts prev.

released

41.692

Total

Use in 1982

Commitments

made

(Z)

Appropriations

available

at 31.12.82

1817.694

-----·-·-

1812.131

5.564

2. Use of payment appropriatigns,

(~1io

ECU)

Payment appropriations available in 1982

Carry-over 1981

(b)

(1)

33.629

Appropriations

fol" 1982

1015.000

Total

1048.629

Payments made in 1982

out of carry-

over fl"om 1981

33.629

out of appro-

pdats fol" 1982

917.045

Total

950.674

Payment appropriations unused

at 31.12.1982

out of carry-over

Out of appro-

priations fol" 1982

from 1981

97.955

3. Commitments made.

(Mia ECU)

Commitments

1975-1981

unpaid

1.1.1982

2247.723

Amounts

!"eleased

and

adjustments

- 90.345

Commitments made in 1982

out of

appropdations

outstanding

from 1981

58.349

Out of

appropriations

for 1982

1723.782

Total

Unpaid

commitments

1975-1981

1982

commitments

3969.509

Commitments

paid in

1982

Commitments

still to be

paid at

31.12.82

3018.835

- - - --

1812.131

950.674

(1) (a) Including transfer from the non-quota to the quota section of commitment appropriations totalling 39.370 Mio ECU.

(1) (b) Including transfer to the non-quota section of payment appropriations totalling 17.771 Mio ECU.

(2) Less amounts released from 1982 commitments (0.226 Mio ECU) and adjustments due to exchange-rate

fluctuations (11.712 Mio ECU)

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("1'

1'1

ttl

(Mio ECU)

Appropriat- Appropr-

Member ions entered iations

State

1982 budget

allocation

(a)

18.526

17.691

77.609

216.970

227.651

99.139

592.328

1 .168

20.696

397.222

1669.000

Appropriations made

available through

Total appro-

priations

Commitment

appropriat-

Balance

Rate of

outstanding utiliz-

.....

....,

.....

::t

Fluctuations available for ions used up

out stand- Release

ation of

ing from operations

year-end

in ECU

commitment

appropr •.

(h)=

1981 (1)

rate

(e)=(a)+(b)+

1982 (2)

(b)

(c)

(d)

(c)+(d)

(f)

(g)=(e)-(f) (f)/(e)l

25.164

0.906

18.188

-53.030

85.783

-12.052

-47.602

0.093

5.334

35.566

58.349

1.063

0.218

3.019

0.012

3.800

14.385

22.936

0.027

3.193

48.653

1.434

0.710

-4.864

5.489

20.209

0.170

18.690

0.140

-1.994

1.708

41.692

46.187

19.525

93.952

169.441

337.443

101.641

586.352

1.428

24,036

437.689

1817.694

16.965

17.418

58.312

213.297

325.359

114.037

604.899

2.042

18.323

441.479

1812.131

29.222

2.107

35.640

-43.856

12.084

-12.396

-18.547

-0.614

5. 713

-3.790

5.563

36.7

89.2

62.1

125.9

96.4

112.2

103.2

143.0

76.2

100.9

99.7

.....

.......

s:u

::t

s:u

::t

IRL

("1'

EUR 10

::t

("1'

1'1

(1)Including 18.979 Mio ECU carried over from 1981 and 39.370 Mio ECU from the non-quota section.

(2)Including 1.984 Mio ECU for studies carried out under Article 12 of the Fund Regulation.

.......

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57.

The difference of 148.694 Mia ECU is accounted for by:

•

the carry-over of 18.979 Mio ECU outstanding from 1981,

39.370 Mia ECU, which was the balance of 1981 commitment

appropriations from the non-quota section. not taken up in 1982

and transferred to the quota section at the end of 1982 with the

approval of the budgetary authority, as provided for in Article

2(3)(b) of the Fund Regulation, and

an additional 90.345 Mia ECU made up of:

•

41.692 Mio ECU from adjustments to take account of exchange-rate

fluctuations within the European Monetary System(a

4 ) ,

and

48.653 Mia ECU released through decommitment action by the

Commission(

25 )

following,' particularly, the withdrawal of

industrial projects (16.8

~tio

ECU), the failure or partial

failure to attain initial job-creation targets(

2 ' )

(8.5 Mia ECU)

and a change in the method of financing a major infrastructure

project (11.4 Mia ECU).

58.

The Fund's quota activities examined in Chapter II led to the

commitment in 1982 of 1,812.131 Mio ECU, including 1.984

~1io

ECU for

eight studies carried out pursuant to Article 12 of the Fund

Regulation. Out of the commitment appropriations available this left

an unused year-end balance of 5, 563

~lio

ECU.

Table 11 gives for each Member State details of the financial

operations concerning the commitment appropriations available under

the budget. The balances shown in the penultimate column will be

added to or deducted from

~!ember

States' shares for the 1983

financial year.

Some Hember States (in particular Greece, Ireland, Italy, and the

United Kingdom) took up in advance part of their 1983 quotas, while

others did not use up all the appropriations allocated to them:

Germany, which has the largest balance in nominal terms, Belgium,

whose balance is the largest in relative terms, France, the

Netherlands and Denmark. Under the circumstances and in the interest

of sound financial management, the Commission used these budget

appropriations to grant Greece, Ireland, Italy, and the United

Kingdom assistance from the Fund over and above their 1982 quotas,

the difference to be charged against their 1983 quotas.

59.

Commitments and payments within the quota section are calculated on

the basis of national currencies and accounted for at the monthly

exchange rate.

Committed appropriations are released·under Article 9(6) of the Fund

Regulation where information supplied to the Commission by Member

States, notably in support of their payment claims, or findings of

on-the-spot checks show that a project has not been completed or has

been implemented in such a way as to justify payment of only part of

the intended grant. The unused runount resulting is made available for

grants to other investments located in one of the eligible regions of

the same Member State.

This triggered among other things application of the limits to ERDF

assistance laid down

i11

Article 4(1) (a) and (2) (a) of the Fund

Regulation.

ERDF

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60.

The overall balance of 5.563 Mio ECU outstanding at the end of 1982

is in fact the total cumulative balance since the Fund's inception.

It represents only 0.37. of the commitment appropriations available

for the year and less than 0.87.o of commitments made during the

period 1975-82 (over 7,050 Mio ECU).

Table 12 provides a synopsis of the balance of commitment

appropriations outstanding at each year-end since the Fund was set

up. We find that available appropriations have been used up almost

entirely since 1975.

Table 12

ERDF quota section,

Balances of commitment appropriations outstanding each year-end.

(Mio ECU)

Year

15/11

1978

1979

1980

1981

1982

Budget

appropriat-

ions

1030.40(3)

581.00

900.00

1106.75

1463.00

1669.00

Appropriations Appropriations

available for

used up

commitment (1)

(2)

1047.23(3)

599.84

973.65

1169.64

1615.17

1817.69

1032.20(3)

556.36

970.43

1137.79

1596.19

1812.13

Balance

outstanding

at year-end

15.03(3)

43.48

3.22

31.85

18.98

5.56

(1) Including appropriations carried over from the previous year

and appropriations made available through release operations

and through adjustments in respet::t of commitments remaining

payable from previous years to take account of fluctuations in

the ECU rate.

(2) Commitments for the respective years adjusted to take account

of fluctuations in the ECU rate.

(3) Budget appropriations, 1,300 r-1io u.a.; appropriations

available for commitment, 1,312.33 Mio u.a.; and appropriations

used, 1,301.64 Mio U.A. This leaves a balance of 10.69 Mio u.a.

converted into ECU at the rate ruling in January 1978.

;hapter III - Financial Management and Control

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(Mio ECU)

Commitment appropriations available for 1982

Appropriations

entered

in 1982

budget

90.500

--------

------

Appropriations

used in 1982

Total

111.819

commitments

made

32.739

----

L ___

Commitment

appropriations

available

at 31.12.82

79.080

Appropriations

outstanding

from

1981

60.689

Available from:

Transfer to quota section

39.370

---------

2. Use of payment appropriations.

(Mio ECU)

Payment appropriations available in 1982

Carry- Appropr-

over from lations

1981

for 1982

20.00

60,00

Transfer to

quota-section

17.777

Total

Pa~nents

made in 1982

Out of appropr-

iations

for 1982

20.200

Total

Payment appropriations unused

at 31. 1

1982

Out of carry-

over

from 1981

Out of appropr-

lations

for 1982

39.800

V.>

out of carry-

over

from 1981

2.223

62.223

22.423

.J!

Commitments made.

(Mio ECU)

1981 commitments

unpaid

at 1.1.1982

Commitments made in 1982

out of

appropriations

outstanding

from 1981

21.319

Out of

appropriations

for 1982

Total

1981

commitments

unpaid

at 31.12.81

1982

commitments

66.044

Commitments

paid

1982

Commitments

still to be

paid at

31.12.82

33.305

11.420

32.739

22.423

43.621\..

1-:j

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NON-QUOTA SECTION

61.

A maximum amount of 220 Mio ECU was set aside for the first five

non-quota measures approved by the Council on

October 1980. The

first eight special programmes approved by the Commission between

June 1981 and July 1982 took up 216 Mio ECU(

?),

this being the Fund

contribution for their duration.

The total amount of appropriations available for commitment in 1982,

151. 189

~1io

ECU, was made up of 90.

500

~lio

ECU entered in the

1982

budget and

60.689

~lio

ECU outstanding from the 1981 budget. Of the

latter amount, a balance of 39.370 Mia ECU was not used up in time

and as a result was transferred at the end of 1982 to the quota

section(

28 ) .

While approving this transfer, the budgetary authority

did however request that the appropriations so withdrawn from the

non-quota section be restored to it during 1983 (see Table 13).

62.

Decisions taken to grant aid under the non-quota section resulted in

a commitment in 1982 of 32.739 Mia ECU, leaving, taking account of

the transfer already mentioned, an unused balance of

79.080

Mia ECU

to be carried into 1983.

Table

gives for the non-quota section the balances of commitment

appropriations rema1n1ng available in previous years and the

transfers so far made to the quota section.

The carry-overs and the transfers to the quota section shown in the

table reflect delays in starting up the non-quota section which call

for the following observations:

•

the Commission's proposal for the establishment of a non-quota

section dates back to June 1977; the section was set up in

February 1979; although the first proposals under this section

were made as early as October 1979, they were not adopted by the

Council until October

1980;

implementation of the specific measures has entailed a shift of

emphasis at national level from "individual project" financing

to "multiannual programme" financing and, since some of the

measures have been the first of their kind, special rules have

had to be introduced in a number of cases.

63.

•

As a result, the Commission could not approve the first batch of

special programmes drawn up for the first five specific Community

measures until June 1981 and the first commitments could not be made

until that year. Since then, an amount of 73.327 Mio ECU has been

committed, representing

34%

of the Fund's total five-year allocation

of 216 Mio ECU for the first eight non-quota special programmes (see

Table

at point 76).

An extra

Mia ECU has been earmarked for the steel areas programme in

Italy.

As provided for in Article 2(3)(b) of the Fund Regulation.

Chapter III - Financial Management and Control

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Table 14

EBDF quota section.

Carry-overs and transfers to quota section.

(in Mio ECU)

Year

1978

1979

1980

1981

1982

Budget

Appropriations Appropr-

appropriat- available for iations

ions

commitment

used up

29.05(1)

45.00

58.25

77.00

90.50

29.05(1)

45.00

103.25

135.25

151.19

Transfer

to quota

section

Balance

outstanding

at year-end

-(1)

45.00

58.25

60.69

79.08

40.59

32.74

45.00

33.97

39.37

-(1)

(1)

In 1978 the appropriations for the non-quota and quota sections

were still combined in the budget.

SETTLEMENT OF COMMITMENTS CPAYMENTS)

64.

For 1982, the Fund's total initial allocation of payment

appropriations entered in Chapters 50 (quota section) and 51

(non-quota section) of the budget was 1,075 Mio ECU, including

125 Mio ECU originally entered in Chapter 100 (provisional

appropriations) and transferred during the year to Chapter 50 (quota

section). The allocation of payment appropriations thus represented

61% of the total initial allocation of commitment appropriations

(1, 759.5 Mio ECU), against 53% in 1981. In the previous financial

year, payment and commitment appropriations amounted to 819.2

~lio

ECU and 1,540 Mio ECU respectively.

QUOTA SECTION

65.

The payment appropriations originally entered in the 1982 budget for

the quota section stood at 1,015 Mio ECU, including the 125 Mio ECU

in Chapter 100. With the carry-over to 1982 of the balance of

15.852 Mio ECU outstanding at the end of 1981, the appropriations

initially available for payment in 1982 totalled 1,030.852 Mio ECU.

At the end of the year, the unused balance of 17.777 Mio ECU from the

non-quota section's 1981 payment appropriations was transferred to

the quota section(a

9 ) ,

giving a total of 1,048.629

~1io

ECU for

payment appropriations available for 1982 (see Table 10.2).

As provided for in Article 2(3)(b) of the Fund Regulation.

ERDF

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66.

Payments made in 1982 totalled 950.674 r>lio ECU, of which 0.506 Mio

ECU for studies carried out pursuant to Article 12 of the Fund

Regulation, compared with 791.409

~fio

ECU in 1981, an increase of

20%.

Although the flow of payments as a percentage of the total volume of

commitments dipped slightly (53.9% in 1982 against 54.3% in 1981),

over 90% of the appropriations available at the beginning of the year

were used up, and this for the third year running: the rate of

utilization for 1982 was 92.2%. Without the transfer of the 125 Mio

ECU initially entered in Chapter 100, some of the payments charged to

the 1982 budget would have had to come out of the 1983 budget.

67.

Payment claims submitted by

~!ember

States during 1982 actually

amounted to 974.552 Mio ECU, not 950.674 Mio ECU. The difference is

due mainly to the amounts held back by the Commission from the

payments claimed, pending notification by the Member State concerned

of all the information required under Article 8(1)(b) of the Fund

Regulation, and to the recovery of amounts released during the year.

Table 15

ERQF quota section

Commitments still to be paid at the end of

Payments made in 1982

.1.2.8..t..

(in Mio ECU)

Commitments

1975-81

still to be

paid at end

1981

(1)

14.249

21.301

102.015

120.836

337.266

-79.667

1028.596

1.405

43.162

408.881

2157.378

Commit-

ments

1982

1981

16.965

17.418

58.312

213.297

325.359

114.037

604.899

2.042

18.323

441.479

9.170

10.685

36.189

122.001

62.159

79.322

210.164

0.962

5.662

255.096

1982

10.558

14.572

61.648

152.346

75/81 75/82

68.0 66.6

65.2 69.1

64.0 69.9

49.1 59.4

126.177

52.4 48.3

91.550 69.7 72.4

276.966 42.7 43.4

0.063 67.6 48.6

3.235 51.5 45.3

213.559 67.7 62.7

54.3

53.9

Payments

commitments

Commit-

ments

to be paid

at end

1982

20.656

24.147

98.679

181.787

536.448

102.154

1356.529

3.384

58.250

636.801

3018.835

Member

State

IRL

EUR 10

1812.131 791.409 950.674

(1) Amounts adjusted to take account of commitments released and

adjustments for fluctuations in the ECU rate.

68.

Table 15 shows for each Member State and for the Community as a whole

the situation with regard to payments. It also gives the flow of

payments (commitments settled as a percentage of commitments made

since the Fund's inception) and, for purposes of comparison, shows

the pattern at the end of 1982 and at the end of 1981.

Chapter Ill - Financial Management and Control

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Commitments

Member

State

unpaid at

31.12.1981

(1)

Mio ECU

Commitments

1982

(1)

Payments made in 1982 against

commitments in

75-77

1978

1979

1980

1981

1982

Total

payments

at end

1982

Mio ECU

Commitments

unpaid

Payments

against

at 31.12.82 commitments

at end 1982

~lio

Mio ECU

0.954

0.118

1.237

0.424

-1.314

ECU

66.6

69.1

69.9

59.4

48.3

72.4

43.4

48.6

45.3

62.7

53.9

IRL

14.249 0.7

21.301

1.0

102.015

4.7

120.836 5.6

337.266 15.6

79.677

4.0

1028.596 47.3

1.405 0.1

43.162

2.0

408.881 19.0

2157.378 100.0

16.965 0.9

17.418

1.0

58.312

3.2

213.297 11.8

325.359 18.0

114.037

6.3

604.899 33.4

2.042

0.1

18.323

1.0

441.479 24.4

1812.131 100.0

0.498

4.587

0.960

0.040

5.847

6.679

1.077

54.268

12.085

0.516

0.637

13.405

7.929

27.572

1.219

2.638

1.680

3.458

10.778

2.188

8.574

22.784

63.607 88.740

29.671 28.186 59.888

6.409 35.486 47.518

87.199 102.110 21.296

0.063

2.701

0.309 0.225

39.839 99.815 52.672

3.008

1.566

19.738

10.558

14.572

61.648

152.347

126.177

91.551

276.964

0.063

3.235

213.559

950.674

20.656

24.147

98.679

181.788

536.448

102.154

1356.530

3.384

58.249

636.800

3018.835

EUR 10

80.956 190.194 364.755 284.559

(1) Amounts adjusted to take account of amounts released and fluctuations in the ECU rate.

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69.

Comparing the figure of 53.97. with those for 1981, 1980, 1979 and

1978 (54.37., 56.47., 53.27. and 53.37. respectively) reveals that,

although the allocation has grown, the time-lag between the flow of

commitments and the flow of payments has remained virtually

unchanged. This time-lag stems inevitably from the Fund's rules:

when a grant decision is taken, the total amount of the grant is

committed immediately, whereas settlement of the commitment, i.e.

the actual payment of the grant, is staggered over several years in

step with the out lay by

~tember

States and progress of the investment

projects financed.

Table 16 gives the breakdown for each Member State of payments made

in 1982 against the corresponding commitments made in previous

years.

The overall rate of payment differs quite markedly between Member

States. It improved in Denmark, Germany, Greece, Ireland and Italy,

although Italy, with a rate of 43.47., remains below the Community

average. Italy is making strenuous efforts to make up the backlog

accumulated in previous years. France (48.37.), Luxembourg (48.67.)

and the Netherlands (45.37.) were also below the Community average,

with a sharp drop in the rate of payments compared with 1981 in all

three countries. The figure of 62.77. for the United Kingdom, although

lower than that recorded in 1981 (67.77.), is still well above the

Community average.

Table 17

ERQF quota section,

Breakdown of payments in each year by Member State.

of payments made

~tember

70.

71.

State

1975

1976

1.7

1.5

3.6

12.1

6.8

42.7

0.2

2.3

29.1

100.0

1977

0.8

1. 6

6.7

12.3

5.9

40.1

0.1

0.8

31.7

100.0

1978

2.3

0.5

16.6

16.0

8.0

30.8

0.1

2.5

23.2

100.0

1979

0.6

1.8

9.0

20.2

6.4

28.0

0.1

1. 7

32.2

1980

0.9

1.3

6.9

13.7

1981

1. 2

1.3

4.6

15.4

7.9

10.0

26.6

0.1

0.7

32.2

100.0

1982

1.1

o.o

17.8

7.7

48.9

0.2

3.1

20.6

100.0

o.o

1.7

IRL

9.6

34.3

0.1

1.1

32.1

100.0

1.5

6.5

16.0

13.3

9.6

29.1

0.1

0.3

22.5

100.0

EUR 10

100.0

Chapter III - Financial Management and Control

(4)

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72.

Table 17 gives the breakdown between Member States of payments from

the Fund every year since 1975.

Although payment appropriations are not subject to quota

arrangements, it will be seen from this Table that, compared with the

quotas for commitment appropriations, there have been considerable

delays in claiming payments in recent years, particularly in the case

of Italy.

73.

Table 18 summarizes the settlements of payment appropriations since

the Fund was set up.

Since the Fund was set up, annual allocations of payment

appropriations have totalled 3,897.585 Mio ECU. At 31 December 1982,

3,799.630 Mio ECU had been accounted for by payments made since 1975,

representing a rate of utilization of 97.5%.

Table 18

ERPF quota section.

Payment appropriations since 1975.

Balance of credits

remaining

since 1975

ECU

~lio

Year

Budget

appropriations

~1io

Payments

made

Mio U.A.

90.628

277.372

372.508

~1io

U.A.

~lio

ECU

U.A.

~lio

ECU

1975(1) 150.000

1976(1) 300.000

1977(1) 400.000

1978

1979

1980

1981

1982

Total

122.310

229.051

294.530

525.000

483.000

392.375

(2)+16.000

799.200

(2)+ 3.342

1015.000

(2)+17.777

3897.585

74.058

213.052

275.699

254.892

513.148

726.698

791.409

59.372

82.000

109.492

48.252

64.252

83.083 (1)

353.191

323.043

o.o

4. 720

15.852

950.674

97.955

3799.630

97.955

(1) Units of account converted into ECU at the average rate for

the year.

(2) Transfer from the non-quota (chap. 51) to

the quota section (chap. 50).

74.

In 1982, the amounts involved in the settlement of commitments

through application of the accelerated payments procedure(

30 )

can be

put at 268

~lio

ECU, against 230 r.Uo ECU in 1981. Accelerated payments

thus accounted for 28% of total payments made in 1982, against 29% in

1981.

ERDF Sixth Annual Report (1980), point 140.

ERDF

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NON-QUOTA SECTION

75.

An appropriation of 60 Mio ECU was entered in the 1982 budget for the

settlement of commitments made under the non-quota section.

Including the carry-over to 1982 of 20 Mio ECU of payment

appropriations outstanding at the end of 1981, appropriations

available for payment at the beginning of the year stood at 80 r.Uo

ECU. At ·the end of the year, an amount of 17.777 Mio ECU,

representing the balance of 1981 payment appropriations unused in

1982, was transferred to the quota section(

3 ' ) .

Payments made in 1982 in respect of all the non-quota special

programmes approved to date totalled 22.423 Mio ECU. At the end

the year, and taking into account the transfer mentioned, the balance

of payment appropriations outstanding stood at 39.8 Mio ECU.

Table 19

ERDf

non-quota section.

Commitments and payments in respect of special prograrnmes.

(in

Special

programmes

Total

allocation

over 5 yrs

55.000

8.000

33.000

17.000

16.000

Commitments

Date

13/10/81

22/09/82

02/10/81

24/05/82

13/12/82

16/09/82

03/12/82

02/10/81

Amount

15.563

12.666

0.473

5.280

7.480

2.570

3.940

3.216

~1io

76.

ECU)

Payments

Date

15/10/81

03/12/82

22/12/81

02/12/82

15/12/82

15/10/81

31/03/82

09/10/82

30/12/81

02/12/82

27/09/82

Amount

4.669

3.800

0.142

0.284

5.280

2.244

2.570

1.182

0.965

1.508

4.841

0.053

0.241

29.709

France -

enlargement

United Kingdom -

border areas

United Kingdom -

steel areas

United Kingdom -

shipbuilding areas

Ireland -

border

areas

Italy - energy

Italy -enlargement

Belgium -

steel areas

Total

16.000

65.000

6,000

16/10/81

23/12/81

22/09/82

5.026

16. 135

0.175

0.803

73.327

216.000

As provided for in Article 2(3)(b) of the Fund Regulation.

Chapter III - Financial Management and Control

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Table 19 gives for each special programme the situation with regard

to the settlement of commitments resulting from the payments made.

Overall, the balance of commitments made in 1981 and 1982 and still

to be paid amounts to 43.621

~1io

ECU (see Table 13.3).

Although the start-up of the eight special programmes proved

difficult(

32 )

and while a number of them are still running somewhat

behind schedule, they are steadily moving into a normal pattern of

execution. In spite of the fact that the Commission did not approve

the last of the eight programmes until July 1982 (the first having

been approved in June 1981), 34% of the total of 216 Mio ECU had.

been taken up and 40.5% of the commitments made had been settled by

31 December 1982.

CONTROLS

INSPECTIONS

77.

Pursuant to Article 8 of the Fund Regulation, grants are paid out

upon presentation by the Member State concerned of statements

certifying the public expenditure incurred (the basis for Fund

assistance) and the existence of detailed supporting documents. The

latter do not, however, have to accompany payment claims: the

conformity of the statements presented to the Commission with the

supporting documents is verified on the occasion of on-the-spot

checks carried out pursuant to Article 9(3) of the Fund Regulation

on a sample of projects aided by the Fund.

As provided for in Article 9(4), on-the-spot inspections are also

made in order to verify the conformity of completed projects with

the proposals as originally presented to the Fund and that of

administrative practices with Community rules, particularly as

regards public tendering. Assessment of the conformity of projects

implemented with the operations financed also involves verifying

the degree of success in

achieving specific employment and

production targets in

the case of industrial

projects and

utilization targets in the case of infrastructure projects, where

they had been indicated in the grant applications, a practice which

is generally followed only for projects costing 10 Mio ECU or more.

78.

Since in 1982 statements of expenditure relating to non-quota

specific measures were not presented by Member States in time for a

schedule of checks to be drawn up, on-the-spot inspections were

confined to projects financed under the quota section. During the

year the Commission did, however, carry out in two Member States

its first examination of Fund operations under the non-quota

section in preparation for future on-the-spot checks. It was

primarily concerned with how these operations were being financed

and administered.

During 1982, the Court of Auditors was associated

on-the-spot inspections by the Commission.

with

three

79.

80.

In 1982, on-the-spot checks were made by the Commission (involving

officials fron the Directorates-General for Regional Policy

See point 63 of this Report.

ERDF

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and for Financial Control) in respect of 204 projects, compared

with 223 in 1981 and 202 in 1980. This brought the number of

projects inspected on-site since the Fund was established to

1,268.

The projects inspected in 1982 accounted for Fund assistance

totalling 338 Mia ECU, against 355 Mia ECU in 1981 and 140 Mia ECU

in 1980. This figure can be compared with the commitments of some

5,250 Mia ECU for the period 1975-81 and with the payments made of

2,850 Mia ECU in the same period. It should also be noted that the

total number of projects inspected in 1982 involved investment

amounting to around 2,375 Mia ECU.

81.

During the year, the Commission continued its action to deal with

"dormant" projects(

33 ) .

Alongside the general examination that the

Commission carries out periodically in conjunction with the Member

States, it continued its enquiries, introduced on a regional basis

1981,

using on-the-spot checks to identify, in association with

the administering authorities, projects where payments had fallen

behind schedule. The purpose is to discover the causes of sucl1

delays and to speed up the processing or closure of files, either

by final payment if the projects have been completed or by

releasing the appropriations allocated if they have not been

carried out. In

1982,

359 "dormant projects" were inspected (as

against 236 in 1981 and 209 in 1980). Following these inspections,

14 projects have lost their grants (the appropriations being

released), 27 have been the subject of further payment claims and

22 the subject of a final claim to close the file.

ASSESSMENTS

82.

In 1982, France withdrew its objection to Commission officials

JOlning in inspection visits to industrial concerns. The checks

were therefore carried out in accordance with Article

of the Fund

Regulatio~.

on the basis of the arrangements already applied in the

other

~femher

States. As a result, the Commission terminated the

measures withholding payments from the industrial projects that

Commission officials had not been authorized to inspect.

On-the-spot checks in

1982

did not reveal any operation of a

fraudulent nature, i.e.

no case of undue financial benefit being

obtained by way of an illegal procedure.

Generally speaking, on-the-spot inspections carried out during the

year revealed occasional flaws in the information supplied by

~tember

States

in grant applications and in payment claims. They

also brought to light some tardiness in informing the Commission of

the completion of projects, delaying the closure of files.

In response to this situation, the Commission took the action

it ·

had announced in 1981(

34 )

for clearing files on projects dating

back to

1975, 1976

and

1977.

As a result, appropriations committed

for projects which have far overrun their original schedule will be

released automatically. The Commission will gradually extend this

procedure to files from subsequent years that have not yet been

closed.

Projects for which no payment claim has been received for

months.

ERDF Seventh Annual Report, point

163.

some

83.

84.

85.

Chapter III - Financial Management and Control

47-48

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CHAPTER IV

PUBLICITY FOR FUND ACTIVITY

86.

The Commission takes the view that the Fund's activities should be

given the widest possible coverage.

First, the public has the

right to be informed about how the Community administers the

resources for which taxpayers in Member States foot the bill.

Second, Fund operations. being in support of practical projects

with a fixed location, are a particularly apt advertisement for the

direct benefit the public derives from the Community; this point is

even more important in the run-up to the second direct election of

the European Parliament.

The Fund Regulation stipulates(

35 )

that investors must be informed

that part of the aid granted to them has been provided by the

Community. It also requires that grants for infrastructure projects

be given suitable publicity. In addition, a list of projects

assisted by the Fund must be published in the Official Journal of

the European Communities. As before, the actual information to be

published is specified in agreements with the individual Member

States.

87.

The Commission continued and expanded the information campaigns it

has mounted since the Fund's inception. It has found that, among

the publicity measures taken, information supplied to the press and

on-site signboards

still have

the greatest

public impact,

particularly in countries where individual projects

can be

identified and where Fund assistance is highest (Ireland, Italy and

the United Kingdom).

PRESS INFORMATION

88.

After each series of grant decisions, the Commission published a

press release, regional grant statistics and lists of aided

projects. the content of which varies according to the agreement

with each Member State. All this information is very widely

circulated by the Commission's information offices in the Member

States. and some countries also conduct their own press campaigns

every time an allocation of grants is announced.

In addition to the general press releases covering all the grant

the Commission has provided

separate

allocation decisions.

information on grants in each recipient country since the end of

1981.

Article 10 of the Fund Regulation.

Publicity for Fund Activity

Chapter IV

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Press releases have also been issued whenever the Commission has

adopted programmes

for implementing

the non-quota

specific

measures. A special effort was made to publicize the Commission's

proposals for the second series of non-quota measures. In addition

the accompanying

press release,

the Commission Member

responsible for regional policy gave a press conference on 21

October for representatives of the world press accredited to the

European Communities.

89.

By and large, such information is given more prominence in the

regional and local press than in the national press. There are

frequent reports in Irish, Italian and United Kingdom newspapers,

but less press coverage in France and Germany. The information

released for the latter two countries does not make it easy for

journalists or newspaper readers

to identify the individual

projects aided by the Fund, whereas the lists for Ireland, Italy

and the United Kingdom are fairly detailed and name each project,

which certainly makes the information more useful to journalists

and more interesting to readers. The relatively higher level of

Fund assistance in these three countries may also explain the

greater public interest shown there in Fund activities.

The Commission is studying ways of keeping the general public in

all

~!ember

States more closely informed, notably through the

regional and local press, of the practical aspects of Community

policies, especially ERDF activities.

SIGNBOARDS

90.

Member States are required to mesure that signboards are erected at

the sites of major infrastructure projects · to show that they are

being financed in part by the Fund(

36 ) .

Many signboards have now been erected in Italy and the United

Kingdom. More often than not, however, the Commission does not

receive enough details on the number of signboards put up, and the

reports which the national authorities are required to present to

the Commission each year arrive very late and in many cases are

incomplete.

According to the Commission's present information, signboards have

been erected for some 2,050 projects since the Fund was set up,

including around 600 projects in 1982. The table below shows the

numbers of signboards put up in each country.

Article 10 of the Fund Regulation.

ERDF

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Table 20

ERDF quota section.

On-site signboards.

~!ember

State

Number of projects

with signs

347

841

611

2053

Situation at

year-end:

1981

(1)

1982

1981

(1)

1982

IRL

EUR 10

(1)

No information sent in on the number of signboards

erected in ·1982,

NOH-QUOTA MEASURES; INFORMATION ACTIVITY BY NATIONAL

AUTHORITIES

91.

The Regulations concerning the non-quota measures impose certain

publicity requirements on the national authorities. The special

programmes must among other things indicate how trade interests and

the general public are to be informed of the possibilities offered

the programmes and how the Community's contribution is to be

publicized.

In addition,

in their annual reports on the

implementation of the programmes the authorities in the

~!ember

States are required to inform the Commission of their information

activity(

37 ) .

See points 47 to 51 for the information campaigns conducted for each

special programme under the non-quota section.

Publicity for Fund Activity

Chapter IV

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PUBLICATION IN THE OFFICIAL JOURNAL

QUOTA SECTION

92.

The list of projects receiving grants from the Fund must be published

every six months in the Official Journal. Since 1978 it has not been

possible to keep to this time.table, and occasionally the lists have

been published only once a year and with considerable delay. The

list of projects approved in 1980 was not published until July

1982 (

38 ) .

These delays are due mainly to staff shortages. The technical and

translation workload involved in preparing the lists has increased

significantly: in 1982, 3,273 projects were listed, compared with

1,183 in 1975. In spite of these constraints, the time-lags have been

shortened recently - the projects covered by the first three grant

allocations of 1981 were published in September

1982(~

)

and those

covered by the fourth allocation in December 1982(

4 0)

while those

covered by the first two allocations of 1982 were published in March

1983 (

41 ) .

Unfortunately, these lists provide little information since they are

not allowed to identify projects; some Member States do not permit

this identification. The lists published in the Official Journal are

therefore standardized on the · basis of the lowest common

denominator.

The Commission is endeavouring to improve this

situation.

NON-QUOTA SECTION

93.

Under the Regulations adopted by the Council in October 1980, the

special programmes presented to the commission by the Member States

for the non-quota specific measures must be published in the Official

Journal. Of the nine programmes, eight were transmitted to the

Commission and adopted by the end of 1982 (six of them in 1981 and

two in 1982). However, none of them was published in the Official

Journal in 1982, publication being expected in 1983. This serious

delay is due first and foremost to staff shortages for translation

and typing. As a result the first set of non-quota programmes will be

published in the Official Journal so late that the public will lose

interest in them. Since such delays are virtually inevitable, the

Commission has decided that for the second series of non-quota

measures proposed in November 1982, the programmes will simply be

published "by the Commission" and this does not necessarily entail

publication in the Official Journal or translation into all the

official languages of the Community.

:se

o.J. N.

191, 26.7.1982.

O.J.

N. C

246, 7.9.1982.

O.J.

N, C

347, 31.12.1982.

O.J. N. C 85, 28.03.83.

ERDF

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INFORMING INVESTORS

94.

The Commission has continued to write to investors informing them of

grant decisions in their favour. The letters are sent direct or, in

the case of investors in France, through the responsible national

authorities. Without these letters, investors, and especially

private investors, would in many cases probably have no idea that the

Community was helping finance their projects. In 1982, the

Commission sent out over 3,000 such letters.

Chapter IV

Publicity for Fund Activity

53-54

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CHAPTER

THE ERDF'S ACTIVITIES FROM 1975 TO 1982

A BRIEF REVIEW

QUOTA SECTION

95.

Between 1975 and 1982, the Commission's departments examined 22,500

investment projects costing more than 65,634 Mio ECU for which

applications for ERDF aid totalling more than 8,761 Mio ECU had been

submitted.·

Following the Commission departments' examination of the grant

applications, 17,838 investment projects were referred to the ERDF

Committee (after the infrastructure projects costing 10 Mio ECU or

more had been submitted to the Regional Policy Committee).

At the end, 17,771 investment projects received grants totalling

7,187 Mio ECU.

96.

Up to 1978, all projects were referred to the Fund Committee for its

opinion after debate (a total of 6,611 projects from 1975 to 1978).

From 1979, the prior information procedure enabled discussion to be

limited to 3,473 projects, i.e. only 20% of the 11,383 investment

projects

referr~d

by the Commission to the Fund Committee between

1979 and 1982 (Table 21).

It should also be pointed out that a great many projects were not

formally submitted to the Commission, following close contacts and

discussions between its competent departments and the national

authorities concerned.

Chapter V

The ERDF's activities from 1975 to 1982

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Table 21

EBDF quota section (excluding studies under Article 12).

Number of projects submitted to the Comrnmission. referred to the

EPPF Committee and granted aid(l).

Period 1975-78

Period 1979-82

Total

1975 1976 1977 1978 1979 1980 1981 1982

Number of projects

- received by

Commission

- referred to Fund

Committee

- of which discussed by

Fund Committee since

introduction of prior

information procedure

Number of projects

covered by an ERDF

grant decision

1492 1788 2246 2070 3427 3127 3768 4582 22500

1249 1630 1991 1741 2925 2502 2465 3335 17838

656 1214

905

704

1182 1545 2020 1600 2835 2561 2759 3269 17771

(1)

The data relates to calendar years and, for the reasons given

in Chapter II. point 23, do not provide a basis for a direct

comparison as regards the Fund's administration within any

one year.

97,

After eight years of Fund activity, it is interesting to take an

overall look at the Member States' reactions to the large number of

decisions before the Commission. In all, 3,192 draft decisions

grouping together 17,838 investment projects were discussed. The

Commission itself adopted 816 draft decisions for which no

~!ember

State had sought referral to the Fund Committee.

referred 236

draft decisions to the Committee under the procedure set out in

Article 16 of the Fund Regulation; of these, 17 were negative

proposals and 10 were withdrawn following discussion with the

Committee. Of the remaining 2,349 draft decisions, 2,329 were

endorsed by the Committee (see Table 22).

will be seen from Table 22 that in the vast majority of cases all

the national delegations endorsed the draft decisions referred to

the Committee by the Commission. Only in a very.few cases did some of

the delegations reject a draft decision or abstain from voting.

Generally speaking, therefore, the Member States approved

projects selected by the Commission.

the

This selection is also apparent from the large number of projects not

granted ERDF assistance by the Commission (see point 28, Table 3).

decisions were disapproved by more than two delegations, although a

negative qualified majority was not reached (Table 22).

ERDF

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Table 22

EBDF quota-free section.

Draft decisions submitted for the opinion of the Fund Committee.

1975-1978

Total number of draft

decisions requiring

an opinion

- decision rejected

- no opinion given

- decision endorsed

1979-1982

Total

1242

1241

1107

1088

2349

2329

In most cases, the votes against or abstentions by one or more

delegations did not relate to the grant decision as a whole but only

to some, or even one, of the investment projects covered.

98.

Of the 17,771 projects that were the subject of grant decisions 4,723

were investment projects in the industrial, . craft industry and

services sectors, and 13,048 were infrastructure projects (Table

23)

•

The projects financed since 1975 represent a total investment of

some 60,025 Mio ECU, while the aid granted totalled almost

7,187 Mio ECU (i.e. 12.0% of the total investments aided), Of

this aid, 78.5% went to infrastructure projects and 21.5% to

projects in the industrial, craft industry and service

sectors(

4Z);

56% of the aid was allocated to 752 projects costing

more than 10 Mio ECU each and 44% to 17,019 projects costing less

than 10 Mio ECU each.

According to the estimates given by the national authorities,

the projects financed in the industrial and service sectors

should create or preserve more than 500,000 jobs.

The main industries receiving assistance from the Fund were, in

descending order, motor vehicle and components manufacture (24%

of aid granted), the chemicals industry (7%) and the agri-food

industries

(7%),

These industries also received the largest

amounts of assistance for projects costing more than 10 Mio ECU

each. However, the electrical engineering, electronics and

metalworking industries benefited most (see Annex Table 3).

The transport and water-engineering sectors received the most

aid from the ERDF in respect of infrastructure investments: 33%

and 247. respectively (see Annex Table 5).

•

As .early as 1975, however, the Fund Regulation had provided for

ass1stance for

t~ese

branches of the economy (Article 4(1)(a)), and as

fro~

1981 a

c~11ing

of 70% was laid down in the Regulation for

ass1stance for 1nfrastructure projects (Article 4(1)(b)).

The ERDF's activities from 1975 to 1982

Chapter V

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Table 23

EBDF quota section.

Grant decisions 1975-1982.

(Mio

ECU)

Member

State

Industry, craft ind.

services

Invest. of

less than

~lio

ECU

13.99

180.91

127

8.23

113.12

1161

128.75

2880.87

16.71

105.42

1231

144.85

2129.05

208

78.57

521.93

1108

229.29

1270.21

Total

26.02

369.60

128

8.96

124.42

1228

208.51

5176.56

22.48

168.42

1294

273.60

4847.53

Invest. of

10 Mio ECU

or more

1.84

15.02

25.51

110.86

36.07

298.19

208.30

875.79

623.68

2290.14

Infrastructure

Invest. of Mountain

less than

or hill

10 Mio ECU

areas

204

36.78

141.69

421

45.55

170.92

557

142.05

524.99

411

242.37

1118.33

1172

224.81

839.59

336

62.51

226.90

4618

740.64

2400.52

7.12

39.93

29.79

118.79

3357

773.63

3188.13

11114

2305.25

8769.79

6.29

22.58

TOTAL

Total

242

44.91

179.29

430

71.05

281.78

304

70.93

548.89

558

80.02

406.20

Nber of projects(a) Invest. of

(b)

10 Mio ECU

Assistance

Investments

(a)

(b)

(c)

(a)

(b)

12.03

188.69

11.30

79.76

2295.69

5.76

63.00

128.75

2718.48

53.73

1511.91

112.43

897.33

(c)

(a)

(b)

(c)

567

1795

178.11

386.62

823.18 5999.74

437

450.67

1994.12

1392

862.36

3175.97

459

320.35

6148.41

485

473.15

2162.54

2686

1135.96

8023.50

692

452.64

8182.25

(a)

(b)

(c)

(a)

(b)

(c)

(a)

(b)

130

13.87

46.24

13.07

45.02

1080

65.67

240.49

IRL

(c)

(a)

(b)

233

132.29

244.77

2033.84 5876.49

1128

134

341.72 1599.25

2167.54 13797.33

(c)

{a)

6960

5832

2405.56 2747.28

16438.34 18605.88

7.12

39.93

81.42

410.70

7.12

39.93

98.64

584.49

(b)

(c)

(a)

12.41

132.41

416.88

5290.82

275

822.48

13109.64

4.81

41.38

505

100.43

782.02

4448

725.63

8024.91

17.22

173.79

591

517.31

6072.84

51.63

291.91

145

418.79

6120.57

(b)

(c)

(a)

(b)

(c)

(a)

138

24.80

90.72

1457

123.71

445.05

3640

4231

1217.22 1134.53

9399.42 15472.26

13048

17771

5638.78 7186.89

38891.14 60025.69

EUR 10

(b)

(c)

4723

477

1548.11 3209.82

21134.5 29676.30

ERDF

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NON-QUOTA SECTION

99.

The first specific measures instituted under the non-quota section

were adopted in 1980 but were not actually implemented until 1981 or

1982 (see point 46). While it is still too early to establish an

overall picture of the ERDF's activities in this field, the first

annual implementing reports provide a number of pointers (see point

47).

100. It is already clear that the non-quota section has paved the way for

major innovations in the Community's approach to regional

development.

Firstly, the reasons given for the non-quota measures and the choice

of areas based on Community criteria help to highlight the Community

regional policy's own identity.

Secondly, the "multiannual programmes" approach goes some way to

ensuring that the measures applied to a particular area are

coordinated and that their aims are consistent with the wider aims

set out in the regional development programmes. In addition, the

preparation and implementation of non-quota programmes should

encourage a closer association between the parties and interests

involved at local and regional levels. The measures themselves,

which are for the most part new, enable the most to be made of the

regions' own development resources.

Finally, the non-quota measures provide for the joint financing, by

the Community and the Member State concerned, of Community aid

schemes. The Regulations adopted in 1980 describe these schemes in

detail, covering the territory eligible, the categories of

recipient, the basis and duration of aid and the level of the

Community's contribution. The first experiences of operating the

non-quota section show that in many cases these schemes have led

Member States to introduce aid arrangements which did not exist

before and which Community financial assistance has made possible.

Chapter V

The ERDF's activities from 1975 to 1982

(S)

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APPLICATION OF THE PRINCIPLE OF GEOGRAPHICAL CONCENTRATION

101. The Fund Regulation stipulates that the only regions and areas which

may benefit from the Fund are those assisted areas designated by

Member States for the purposes of their regional aid schemes. In

order to give the greatest effect to ERDF assistance, however,

priority is given -to investment projects in national priority areas,

with account being taken of the principles for the coordination at

Community level of regional aids.

Table 24

EBDF quota section.

EBDF's budget allocation.

Amount of the

ERDF's allocation

~lio

ECU

1975

1976

1977

1978

1979

1980

1981

1982

257 .6(1)

394.3(1)

378.5(1)

581.0

945.0

1165.0

1540.0

1759.5

Share of total

Community budget

4.8

5.6

4.9

4.6

6.1

6.7

7.3

7.6

(1) Original amounts in Mio U.A. converted

into Mio ECU.

102. Parallel with the growth in the total volume of ERDF assistance

between 1975 and 1982 (from 257.6 Mio ECU in 1975 to 1,929.5 Mio ECU

in 1982, see Table 24), there has been a marked geographical

concentration of the aid granted: the share taken by Ireland, Italy

and the United Kingdom was almost 60% in 1977, 72% in 1980 and 63.5X

in 1982 (following Greece's accession). It should also be noted that,

overall, the aid granted in 1981 and 1982 was equivalent in nominal

terms to the amounts of assistance granted between 1975 and 1980

(Table 25).

ERDP

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Member

State

1975-1978

(a) (1)

1.49

1.29

6.34

14.87

6.46

40.00

0.10

1.69

27.76

100.00

(b)

28.8

23.9

145.6

276.8

92.5

572.6

2,0

35.0

400,7

1577.9

(c)

1979-1980

(a) (2)

1.39

1.20

6.00

16.86

6.46

39.39

0.09

1.58

27.03

100.00

(b)

20.7

23.1

128.1

354.2

139.2

861.9

1.3

33.6

537.8

2099.9

(c)

0.99

1.10

6.10

16.87

6.63

41.04

0.06

1.60

25.61

100.00

1981-1982

(a) (3)

1 • 11

1.06

4.65

13.00

13.64

5.94

35.49

0.07

1.24

23.80

100.00

(b)

19.6

36.8

115.9

461.6

476.6

219.2

1254.3

3.6

31.3

789.3

3408.2

(c)

0.58

1.08

3.40

13.54

13.98

6.43

36.80

0. 11

0.92

23.16

100.00

1975-1982

(c)

0,98

1.18

5.50

6.51

15.63

6.36

37.95

0.10

1.41

24.38

100.00

••

l't:j

0..

,....

1-'•

IRL

1.83

1.51

9.23

17.54

5.86

36.29

0.13

2.22

25.39

100.00

EUR 10

.....

,..,

....,

t"'f'

(a) quota for the Member State.

(b) amounts in Mio ECU.

(1) Under the 1975 Fund Regulation and taking into account the 6 Mio ECU added to Ireland's

quota and deducted from the quotas of the other

~tember

States except Italy •

(2) According to the amended Fund Regulation which came into force on 1 January 1979 to take

account of the

27.

increase granted to France for its overseas departments.

(3) According to the amended Fund Regulation which came into force on 1 January 1981 following

Greece's accession and the continuation, according to the decision of the Commission, of these

quotas for 1982 in the absence of a Council decision on the revision of the Fund Regulation.

----·--·--·-

------

- -

·-

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103. The most striking feature, however, is that the share allocated to

the regions given top priority (Greece, Z.Jezzogiorno, Ireland,

Northern Ireland, Greenland, French Overseas Departments) increased

from 35% in 1977 (excluding Greece) to more than 58% in 1982, when

Greece received 12.05% of the assistance given (see Table 26 and

Annex Tables 8 and 9).

This concentration also indicates that the amounts of ERDF

assistance per

~ead

in these regions are the highest in the' community

(see Table 27 and Annex Table 10),

Table 26

ERDF quota section.

Grants to the most disadvantaged regions as 4 of

total ERPF aid granted each year.

Region

Gr0nland

D.O.M.

Ireland

Northern Ireland

~Jezzogiorno

1975

0.46

1. 74

5.99

5.59

31.25

1977

1.52

0.53

4.99

3.70

24.26

3.84

0.67

5.44

5.52

1.62 .

4.58

1.89

1980

0.68

2.74

6.84

2.84

31.13

3.75

0.33

9.14

2.89

1.10

5.96

6. 11

1. 85

1982

0.67

7.29

6.13

2.22

30.20

1.51

0.41

16.00

2.86

0.55

3.54

3.60

1.73

12.05

1.11

1.41

2.38

1.36

1.02

1.40

0.69

0.98

58.56

of which

Abruzzi

Molise

Campania

Puglia

Basilicata

Calabria

Sicilia

Sardegna

Ell as

of which

Ana. Ster. Kai Nisoi

Kentr.Dyt. Makedonia

Pelop. Dyt. Ste. Ellas

Thessalia

Anatoliki Makedonia

Kriti

Ipiros

Thraki

Nisoi Anat. Agaiou

TOTAL

0.30

9.33

8.26

0.52

0.67

5.64

4.75

35.00

45.03

44.23

ERDF

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Table 27

ERPF quota section.

ERPF assistance

region and per capita for the most

disadvantaged regions.

Assistance

per capita

1982

264.04

145.34

188.77

141.47

54.83

33.62

26.81

27.74

22.70

23.14

54.48

13.59

16.48

31.65

13.44

20.03

23.29

5.22

15.60

34.52

36.35

44.77

52.16

29.07

52.95

52.56

Assistance

per capita

1975-1982

1272.24

197.23

346.85

193.59

112.43

132.56

144.98

116.45

110.01

106.80

143.13

58.08

88.64

125.65

129.52

123.99

49.25(1)

16.25(1)

40.85(1)

56.50(1)

71.34(1)

70. 99(1)

77 .OS (1)

75.67(1)

120.20 (1)

133.71 (1)

Region

Gr0nland

D.O.M .• of which

Guadeloupe

Guyane

Martinique

Reunion

Ireland

Northern Ireland

~!ezzogiorno,

of which

Abruzzi

~to

lise

Campania

Puglia

Basilicata

Calabria

Sicilia

Sardegna

Elias :

Ana. Ster. Kai Nisoi

Kentr. Dyt. Makedonia

Pelop. Dyt. Ste. Elias

Thessalia

Anatoliki Makedonia

Kriti

Ipiros

Thraki

Nisoi Anat. Agaiou

(1) The figures of course relate only to 1981 and 1982

in the case of Greece.

104. As regards the treatment of priority regions or areas within each

Member State, the situation in 1982 was as follows:

•

in Belgium, Fund assistance

\~as

confined to the areas defined by

the Commission Decisions of 26 April 1972(

43 )

and 22 July

1982(

44 )

on aid granted under Article 11 of the Belgian Economic

Expansion Law of 30 December 1970;

in Denmark, 70.0X of Fund grants went to Greenland;

•

O.J. L 105 du 4.05.1972,

13.

O.J.

312 du 9.11.1982, p. 18.

The ERDF's activities from 1975 to 1982

Chapter V

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•

in Germany, 62.4% of Fund assistance was granted to the

Zonenrandgebiet (eastern border areas) and the top priority

development zones;

in Greece, Fund assistance was spread over the whole country with

the exception of almost all of the prefectures of Athens and

Thessaloniki;

in France, 88.4% of assistance went to the regions of

Nord-Pas-de-Calais, Lorraine, the West and South West, Corsica

and the Overseas Departments;

in Ireland, 33.0% of assistance went to the designated areas

situated mainly in the west of the country;

in Italy, all

Mezzogiorno;

the

Fund

assistance

was

allocated

the

•

in the Netherlands, Fund assistance was restricted entirely to

the two priority areas in the north and south of the country;

in the United Kingdom, some 86% of grants went to projects in

priority areas, i.e. Northern Ireland, the Special Development

Areas and the Development Areas.

105. Generally speaking, the Commission, while it is aware that

establishing regional priorities may occasionally cause, for

national authorities, difficult problems of balance between regions,

considers that the drive to concentrate assistance should

continued and stepped up.

THE IMPACT OF FUND ASSISTANCE ON EMPLOYMENT

106. One of the main objectives of the Fund is to create and safeguard

jobs in predominantly agricultural regions and in regions undergoing

industrial change or with structural underemployment. In recent

years, the fall-off in industrial investment due to the economic

crisis and the increase in unemployment in all the

~Jember

States have

given greater prominence to the role which the ERDF can play in this

sphere.

ERDF

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107. The number of jobs created is not the only criterion for choosing

projects; the desire to strengthen the competitiveness of the

regional economy through the development of high-productivity

industries is also important. Balanced regional development requires

infrastructure and sufficiently developed capital-intensive as well

as labour-intensive investment projects.

Infrastructures promote employment, They are the necessary basis for

growth and for the development of industrial and service activities

which generate jobs, Their construction means extensive work in the

building and public works sectors, which, although temporary,

frequently extends over several years, and their upkeep and

maintenance means not inconsiderable numbers of permanent jobs. Some

infrastructure projects are so large that they directly generate or

maintain a large number of long-term jobs.

In the industrial and service sectors, capital-intensive firms may

under certain conditions help to create a large number of jobs

through the development of sub-contracting and by generally

increasing purchasing power, which in turn generates new activities.

In addition, with their injection of high technology, firms in the

sunrise industries frequently have a favourable impact on the

general level of regional development.

108. According to the information contained in the Member States grant

applications, the projects subsidized by the Fund's quota section in

1982 in the industrial and service sectors should create 42,432 jobs

and preserve 5,716 jobs,

70~

of these as a result of projects costing

less than 10 Mio ECU each.

For the employment impact of assistance under the Fund's non-quota

section, see points 47, 48, 49 and 51).

Chapter Y

The ERDF's activities from 1975 to 1982

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Table 28

EBDF quota section.

Annual forecasts of jobs created and pteseryed.

1975-1982.

Jobs

592

IRL

EUR

1975

created

preserved

1976

created

preserved

1977

created

preserved

1978

created

preserved

1979

created

preserved

1980

created

preserved

1981

created

preserved

1982

created

preserved

1975-1982

created

preserved

TOTAL

1195

666

935

799

495

102

1014

170

701

2059•

1958

1663

24571

720

19209

609

14688

1558

18774

1983

5795 12819

270

2538 3674

194

420

685

287

13183

21350

371

9970

6992

14423

11930

10370

12152

9307

3294

10484

3143

8566

4663

60214

1087

53493

1274

61413

12783

54079

17231

64117

15100

51632

6554

53244

6108

42432

5716

479 5577

100

283 14548

0 4093

991

820

1291

7029u

3318

8229

9093

575

9234

1259

6784

102

6163 14826 0

0 0

140

5181

7453 0

0 0

22639 11598 9795

55.

2725

18730 3359

2000

19757

1429

6998

884

7717

9601

9259 0

0 0

3924

277

6541

5975

102

6077

4456 62553

137 9347

4593 71900

3621 145366 51952 68291

67 11908

613

449

3688 157274 52401 68904

757

685

97653 440624

42545 65853

1442 140198 506477

(•)

Including

242

jobs created by an infrastructure project of

Mia ECU

or more.

( "'*)

Including

jobs created by an infrastructure project of less than

Mia ECU.

ERDF

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109. The fact that the proportion of industrial and service sector

investment projects financed by the Fund was very low in 1981 and

1982 led to an appreciable reduction in the Member States' estimates

of jobs created or preserved in those two years (Table 28). The

slight drop in the number of jobs created in 1982 compared with the

previous year, despite an increase in total grants to industrial and

service sector projects (23 7. 8 Mio ECU as opposed to 198.2 Hio ECU) ,

may be due to the fact that in 1982 a larger proportion of aid in the

industrial, craft industry and service sectors went to large-scale

projects (50.5% as against 45.7% in 1981). Large-scale projects

create fewer jobs in proportion to the amount of Fund assistance

and/or investment involved than small projects.

The highest forecasts for jobs created or preserved through Fund aid

in 1982 were in Ireland (9, 601 jobs) and in the United Kingdom

(13,229 jobs).

110. The estimates given in Table 28 show that since 1975 assistance from

the quota section has helped to create the largest number of jobs in

those Member States which have received most aid in the industrial,

craft industry and service sectors (France and the United Kingdom).

There are quite wide discrepancies between the figures for the

different Member States, which may be due in part to differences in

the sectoral breakdown of the industrial projects receiving Fund.aid

and in the economic situation of the

~!ember

States. In the case of

large-scale projects, Fund aid per job created has been highest in

Greece, Belgium and the United Kingdom, and lowest in Ireland,

Denmark and France; in the case of small-scale projects, aid per job

created was highest in the Netherlands and Belgium and lowest in

France and Denmark.

111. It should not be concluded from this, however, that Fund aid should

be reserved exclusively for small and medium-sized investment

projects. Many experts agree that the best regional development

impact can be obtained by decentralizing "activity clusters"

comprising investment projects of varying size and type in the

secondary and tertiary sectors. Large-scale industrial projects can

play a leading role in generating spillover activities and by helping

to raise the general scientific and technological level.

Chapter V

The ERDF's activities from 1975 to 1982

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112. At any rate, any assessment of the impact of ERDF assistance on

employment must be based on a review of the results of regional

development programmes and on statistical surveys rather than on the

above figures, which are merely forecasts. Apart from the

uncertainty inherent in any assessment of the influence of

investment on employment even at individual firm level(

45 ) ,

it is

very difficult to estimate the number of jobs created, particularly

under present circumstances. The impact of the recession on European

regions means that it will take time for the new jobs planned

actually to become available. Furthermore, the fact that over 877. of

ERDF aid in 1982 was allocated to infrastructure projects, for which

job creation figures are not supplied by the Member States,

emphasizes the difficulty of fully possessing the impact of Fund

assistance in this field.

113. These figures should therefore be treated with the utmost caution,

since they are merely the sum of national estimates which are not

fully comparable. They may also change· radically after a project has

been completed.

Some jobs may have been eliminated when new jobs were created or

announced; new jobs have been or may have been given to workers from

other sectors.

An investment project may generate jobs of varying duration, with

various combinations as to staff skills and conditions of employment

in the firm, and it may appreciably alter the division of tasks.

Then again, in many cases,

give way to the need to

dictates of technological

firm can find or recover

jobs.

the desire to create or maintain jobs must

keep the company in business, since the

and economic development may mean that a

a competitive position only by shedding

THE PRINCIPLES OF COMPLEMENTARITY AND ADDITIONALITY AND THE

POSSIBILITY OF COMBINING NATIONAL AND COMMUNITY AIDS

114. In order to clear up a number of misunderstandings about how the

principles of complementarity and additionality are to be

interpreted, it may be useful to repeat the basic thinking set out in

the previous ERDF annual reports.

115. The eleventh recital to the Fund Regulation states that "the Fund's

assistance should not lead Member States to reduce their own regional

development efforts but should complement these efforts".

The principle of complementarity is justified by the need to speed up

the restructuring and development of Member States' economies in

order to rectify the main structural and regional imbalances in'the

Community and, in so doing, to further the integration process by

bringing the national economies into closer convergence.

As a rule, the notion of complementarity is associated with that of

the effectiveness of Community action, in the sense of a larger

number of beneficiaries, more generous financing aids, new measures,

a different or wider scope for a particular measure, and so on.

See the Court of Auditors' report on the granting of aid to regional

investments (O.J. C 345, 31.12.1982).

ERDF

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is more than the simple summation of the financial resources

available at national and Community levels for regional development,

even though this quantitative aspect is without doubt important.

That some

~!ember

States have introduced new regional policy measures

that did not exist before or would not have come into being but for

the non-quota specific measures is an example of the qualitatlve

dimension of complementarity.

"Complementarity" thus means a

quantitative and qualitative improvement in Member States' regional

development measures made possible as a result of Community

intervention.

116. "Additionality" will be used below to mean more specifically the

quantitative aspect of using Community aids to top up the resources

made available by Member States (overall additionality) or to add

directly to the resources of the individual public. or private

investor (individual additionality). Such additionality may thus

pose the problem of combining national and Community aids for

investment projects in the productive sector.

On this definition, additionality is almost always a necessary but

not sufficient condition for complementarity.

117.

is difficult to frame and apply the right arrangements for

ensuring that the concept of overall additionality is put into

practice in the different Member States in ways consistent with

institutional and administrative set-up peculiar to each of them.

However, the Commission has sought to secure transparency in the

national budget systems with regard to amounts received from the ERDF

and their allocation (Article 19 of the Fund Regulation).

With regard to the use of financial resources made over by the

Community, most Member States indicate as a rule that they have

already taken overall account of Fund assistance when deciding on the

budget appropriations for regional development. Even so, it is

extremely difficult, particularly at a time of general budget

retrenchment, to gauge whether Fund resources are being used on top

of national expenditure, in other words whether or not national

budget commitments for regional development would have been lower in

the absence of repayments from the ERDF. The answer to a question so

broadly framed is bound to be hypothetical.

The budget rules in force

follows:

in Member States can be summed up as

Belgium: There is no special budget heading for payments from the

Fund. A special article in the budget (Ways and Means Budget)

stipulates inter alia that Fund assistance is to be applied to

expenditure of the Economic Expansion and Conversion Fund. Fund

grants are allocated to the regions on the basis of predetermined

quotas. In some cases though, they are applied without reference to

the regional allocation, being used to top up the financing of

certain infrastructure projects (rural infrastructures).

Denmark: Assistance expected from the Fund appears under a special

budget heading. On the expenditure side, it is lumped together with

the regional aids for industry administered by the Ministry of Trade.

In the case of infrastructure projects, there is a heading entitled

"Minis try for Greenland - Capital investments financed by the ERDF",

(In two particular cases. full transparency and additionality have

been achieved.)

Chapter V

The ERDF's activities from 1975 to 1982

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Germany: The budget has a special heading for amounts received from

the Fund. On the expenditure side.

57.

of Fund contributions goes

direct to the Land of Berlin; of the balance, part remains credited

to the Federal budget and part is used to defray expenditure under

the heading "Federal transfers to the Lander in respect of industrial

and infrastructure investments". These transfers are made on the

basis of an apportionment formula agreed in advance with the Lander.

A special budget heading exists for payments from the Fund.

The appropriations are not broken down by item of expenditure.

The Finance Law includes a budget heading for Fund assistance

entitled "Other payments from the budget of the Communities".

However, the appropriations are not earmarked for the different

ministries.

Ireland: Assistance from the Fund is clearly identified in the

national budget. Infrastructure grants are allocated to investment

programmes, in which additional resources from the Fund are

identified separately. Fund assistance for investments in the

productive sector are included in the overall amount of State aids

earmarked for industry, services and tourism.

Special budget headings exist for both revenue and

expenditure operations.

Grants received from the Fund are

transferred to the Cassa per il Mezzogiorno either as complementary

financing or for onward transfer to other agencies.

Luxembourg: State aids to productive investment have no ERDF

component. Fund grants to infrastructure investment are paid direct

to the agency responsible for carrying out the projects.

Netherlands: Revenue and expenditure in respect of Fund assistance

are shown under special budget headings. The budget report contains

details on the application of Fund assistance, including a list of

projects aided.

United Kingdom: In the

cas~

of productive investments, the budget

estimates show expected revenue from the Fund. These payments are

assigned to the headings for regional development premiums or

regional selective assistance or are allocated to the department

responsible for tourism. Special budget headings exist for

infrastructure project grants. Appropriations voted by Parliament

are net of revenue from the Fund.

~lost

infrastructure grants are

transferred to the agencies responsible for the projects. However,

for infrastructure projects financed with the help of central

government, the monies received from the Fund are deducted from the

amount eligible for central government financing.

118.

is apparent from this cursory look at

~lember

::itates' arrangements

for guaranteeing budget transparency of the use of payment"s from the

Fund's quota section that the situation in the Community is far from

uniform.

119.

Budget

transparency must not, however, be taken to mean that

complementarity is necessarily the order of the day. Indeed, perfect

budget transparency, implying the availability of all statistical

data, does not constitute automatic proof of compliance with the

principle

complementarity.

Nevertheless,

since

budget

transparency is one of the factors implying that the principle of

additionality has been complied with, it is conducive to its

attainment.

ERDF

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This was the background to the Commission's proposal of 26 October

1981 introducing, in addition to Article 19, the provisions of which

retained,

new

arrangements(

46 )

for

promoting

have

been

implementation of the additionality principle.

120. Overall additionality as discussed in the foregoing paragraphs has

occasionally been confused with individual additionality, where Fund

contributions to individual projects would be passed on direct to

investors by national governments, thereby constituting an

additional source of financing for investors. With regard to

investments in industrial and service activities, Article 4(2)(a) of

the Fund Regulation does in fact stipulate that the Fund's

contribution may either supplement aid granted to the investment by

public authorities or remain credited to those authorities and

considered as a partial repayment of such aid. Until now,

~1ember

States have virtually always opted for the latter arrangement and

none of them has used appropriations from the Fund to introduce a

system- of combined aid for industrial, craft industry or service

activities, although some of them may do so at a later date.

Among the arguments militating against the combination of national

and Community aids for investments of this kind are the

discrimination it produces in favour of a relatively limited number

of investors whose projects would qualify for Fund assistance, and

the need to take account of the principles of Community coordination

and to abide by the rules on competition as they apply to regional

aid schemes. Even though in some cases the combination of national

and Community aids might act as an additional incentive in

channelling investment to the regions suffering the most serious

difficulties, it is not always feasible on account of the ceilings

laid down by the principles of coordination of regional aid systems.

In any event, topping up the funds for an individual project does not

necessarily imply that without Fund assistance that project would

not have been carried out and so does not necessarily ensure

complementarity.

Individual additionality (i.e. the use of

Community resources to top up national aids for a particular

investment project) is a different matter in the case of

infrastructure grants.

121. For infrastructure investment projects, part or all of

assistance received from the Fund is in some cases transferred to

local or regional authorities concerned, thereby highlighting

direct contribution made by the Fund to the development of

regions in question.

the

Some t-iember States transfer direct to the parties concerned grants

received from the Fund for infrastructure projects. Fund

contributions to infrastructure projects in several regions of the

Mezzogiorno, for instance, are paid direct to the investor or to the

regional or local authorities. The Luxembourg Government transmits

Fund grants to the local authorities responsible for the investment

projects singled out for Fund assistance. In the United Kingdom, the

Government transfers to the local authorities, which are entities

separate from central government, grants awarded by the Fund for

infrastructure projects carried out by them. This reduces local

authority borrowing for such projects. However, because of its

policy of strict budget austerity, the Government does not, as a

rule, authorize the authorities in question to use the savings thus

generated to

pro~ote

other projects.

New Article 8(3)

(f).

The ERDF's activities from 1975 to 1982

Chapter V

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In Northern Ireland, where the port infrastructure projects granted

Fund assistance are normally carried out by central government or by

agencies that are a direct offshoot of it, agreements have been

reached whereby Fund grants are distributed, for example, among the

different authorities in the province to enable them to meet future

needs.

Even so, transfer of Fund resources to the local authorities

responsible for carrying out infrastructure projects does not mean

that complementarity or even additionality has necessarily been

achieved, since in the final analysis it may have had no effect on

the total amount of aid and the finance that the Member State would

have released in the absence of Fund intervention,

122. Consequently,

we wish to establish that "topping up" has taken

place and to measure and assess its impact, we need to be in

possession of information on a very wide range of highly complex

facts and data, including the institutional and administrative

structures in each f.1ember State, its budget and public finance set-up

and practices, national policies and their execution over time and in

each region, identification of the measures under those policies

that are in keeping with Community initiatives, and statistics on the

application and development of those measures.

123. However, this assessment can be based only on the knowledge acquired

by the administering departments in devising, framing·and hammering

out Community intiatives and from their implementation and

day-to-day management. Not all this knowledge can be backed up by

proof or statistical data.

IMPACT OF THE ERDF ON REGIONAL DEVELOPMENT

124. Much is said of the need to ensure that ERDF resources have maximum

impact on the regions concerned,

should not be forgotten that the ERDF has a two-fold impact,

political and economic. At the political level, the ERDF represents

for the regions concerned, and in particular for the public agencies

and regional and local authorities rece1v1ng assistance, the

tangible expression of Community solidarity. This is particularly

true in the United Kingdom and Italy, which together account for some

60%

of ERDF grants.

Nor is there any denying the economic impact of the ERDF's

contribution to investment projects, infrastructure investment

projects, in particular, especially those financed by regional and

local authorities.

But it would be a delusion to try to measure these effects in

statistical terms. The volume of ERDF resources is much too small to

produce changes that can be measured in macroeconomic terms.

Nevertheless, in certain spheres of activity and in certain regions,

the impact of ERDF assistance is beginning to show. For example, ERDF

grants are partly responsible for the current improvement of

telecommunications in Ireland and of natural gas and water supply in

the Mezzogiorno,

ERDF

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125. Even a tentative assessment of the impact of Fund intervention on a

region's economic and social development would be a highly complex

exercise dependent on the scope for evaluating the quantitative and

qualitative aspects of regional development policy and on the

definition of the Fund's role.

Beyond the accounting aspects and conformity with the rules, the

checks carried out at microeconomic level (i.e. on individual

projects) permit no more than an appraisal of the degree of success

in achieving specific project objectives, where they had been

defined at the outset. At macroeconomic level, any attempt to

measure the Fund's role by statistical means will invariably remain

highly problematic.

126. The Commission takes the view that the actual impact of investment

aid depends ultimately on the economic and financial environment of

the firms concerned and on the range of measures taken by the

authorities to promote development.

Fund initiatives, or at least those under its quota section, only

provide a back-up to regional policy measures decided at national

level and are superimposed on national regional aid schemes. Since

the prime responsibility for regional policy lies with the

~fember

States, the Commission's role is to help coordinate and steer their

regional policies.

127. Firmer coordination of regional policy objectives, which is

essential to any eventual convergence of Member States' economies,

is a feature of the proposed amendment of the Fund Regulation which

the Commission sent to the Council in 1981. In its proposal for a

recasting of the Fund Regulation, the Commission has not only

redefined the objectives of Community regional policy but also

suggested fundamental changes in the arrangements governing Fund

intervention designed to enhance its impact, notably in the field of

job creation, and to augment its effectiveness:

•

The Commission has proposed that (with the exception of

investment projects costing more than 40 Mio ECU) the system of

individual project financing be replaced in due course by a

system of programme co-financing, particularly for State aid

schemes covering industrial, craft industry and service

activities. This should ensure that aid schemes are more closely

tailored to the regions' priority needs.

The report on the implementation of regional development

programmes which Member States would be required to submit to the

Commission each year would therefore include quantified

information on the impact of regional measures in terms of

investment and jobs •

By the same token, the requirement that Member States notify the

Commission, within three years of completion of measures

financed by the Fund, of the number of jobs actually created as a

result of Fund-aided investments in industrial, craft industry

and service activities should enable the Commission not only to

direct Fund operations more effectively but also to gain a better

overall idea of their regional impact, particularly on

employment.

•

Chapter V

The ERDF's activities from 1975 to 1982

73-74

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APPENDIX A. SHEETS.

ANNEX SHEET N. 1

REGIONAL DEVELOPMENT PROGRAMMES

By the end of 1982, new (second generation) regional development

programmes from all ten Member States(

47 )

had been notified to the

Commission. These new programmes were based on the Common Outline of

1975(

48 )

and the Commission Recommendation of 1979(

49 ) .

BELGIUM

A new Programme for Flanders was notified to the Commission in 1981,

and after additional information had been received in 1982, it was

approved by the Regional Policy Committee. In 1982 a new programme

for Wallonia was notified, and at the end of the year it was under

examination by the Commission's departments.

The programme for Flanders, which covers the period 1981-85, has been

worked out for the same development "clusters" as the first

programme. The main objective is the creation of new jobs, as a total

of 115,000 extra jobs will

needed in the period 1981-85 in the

sectors chosen (for Flanders as a whole, 230,000 jobs). Other

important objectives concern transport infrastructure, tourism,

housing, urban development and the environment. Supporting measures

include regional aid, job schemes, export promotion schemes, R&D,

industrial estates, ports and waterway systems, roads and

environmental protection.

The programme for \vallonia (1982-85) covers the development zones in

conformity with the Commission Decision of 22 July 1982. Top priority

goes to the renovation of the industrial structure and the creation

of new jobs, as in the development and conversion zones about 190,000

additional jobs will be needed by 1985 (340,000 in Wallonia as a

whole). Apart from regional aid, other measures include the

restructuring of the industrial sectors experiencing difficulties

and the development of agriculture, forestry, and tourist and

communications infrastructures.

The only exception is Berlin(West) for which a new programme has not

yet been received.

O.J.

C 69, 24.3.1976.

O.J.

L 143, 12.6.1979.

Appendix A. Sheets.

(6)

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DENMARK

New programmes for Denmark and Greenland were notified to the

Commission in

1981

and

1982.

The Regional .Policy Committee approved

both of them. The programme for Denmark

(1981-85)

covers the same

four regions as the previous one; the main objectives are a more even

regional distribution of economic activities and the creation of new

jobs. The job shortfall in the four regions is estimated at more than

50,000 for

1985.

Apart from regional aid, the key development

measures will be investments in ports, roads, industrial estates,

communications and education. The total cost of infrastructure

investments having a direct impact on the development of the four

regions is put at over DKR

2,000

Mia in the period

1981-84.

The main objectives in the programme for Greenland are the creation

of a more diversified economy and the replacement of foreign workers

by local people. Planned measures include loans and guarantees for

private enterprise and infrastructure investment projects in

priority areas such as energy, airports and telecommunications,

Housing, vocational training and werehousing facilities also feature

prominently. In the years

1982-84.

the State is expected to spend

about DKR

600

Mio a year on investments (budget estimates).

FEDERAl. BEPUBLIC OF

GERMANY

The

new programmes notified to the Commission in

1981

have been

approved by the Regional Policy Committee. These programmes, which

come under the Tenth Outline Plan

(1981-85),

cover

29.8Z

of the total

population, as against the previous figure of 362. The aim is to

create

270,900

new jobs in the programme period and to preserve

208,500

jobs. In addition,

269

key locations and a number of tourist

development areas have been selected for special development

measures. Apart from regional aid to industry and tourism, aid will

be available for the development of economic infrastructures linked

to industrial and tourist development. In the programme period, a

total of DM

6,273

Mio will be available for aid to industry and

tourism (corresponding to total investments of DM

53,816

Mia).

Assistance for infrastructure projects is· expected to total DM

796

Mio, for investments totalling DM

1,719

Mio.

The regional development programme for Greece was notified in

1980

and additional information was supplied in

1981

and in

1982,

mainly

on the regional aid schemes. The Regional Policy Committee has

approved the prograJTll'lle.

The programme covers the period

1981-85

and takes in all the regions

of Greece except the Athens metropolitan area. Its main object.ives

are to stem internal migration to the large urban centres and to

ensure that every region keeps a demographically and economically

viable population through the creation of new jobs and a reduction in

regional imbalances. Apart from generous regional aid for industry

and tourism, mainly investment grants, major infrastructure projects

will be carried out in a variety of fields: industrial estates,

transport and telecommunications, power supply and distribution,

environmental protection and education. Total investment at

1980

prices in the regions by central government and public-service

enterprises is put at DR

357,000

Mio and DR

304,000

Mio

respectively.

This programme is now under review in the context of the new

Five-year Economic and Social Development Plan.

ERDF

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FRANCE

New programmes covering the period 1982-83 were notified to the

Commission in 1982 and were still being examined by the Commission's

departments at the end of the year. These programmes, which are

intended to bridge the gap until a new five-year plan (1984-88) is

drawn up, will be filled out and amplified once the regions have

worked out their own programmes and these have been coordinated at

national level as provided for in the new arrangements for

regionalization. They are concerned primarily with stabilizing and

then reducing unemployment and with overhauling industry. Important

measures include aid to industry and tourism, vocational training

and communications infrastructures.

IRELAND

The 1981-85 programme covering the whole of Ireland was notified to

the Commission in 1981 and has been approved by the Regional Policy

Committee.

The main objective is the creation of new permanent jobs.

estimated that the programme measures will generate 8,000 extra jobs

every year. Special emphasis will be placed on the manufacturing

(export oriented) and private service sectors. Important measures

include a diversified regional aid scheme and infrastructure

programmes for energy, telecommunications, transport, water and

public sanitation. Total public expenditure on directly productive

investment projects(

50 )

in the period 1981-85 is put at some IRL

2, 200 Mio (at 1981 prices), and about IRL 3, 900

~lio

(at 1982 prices)

will be spent under the infrastructure programmes (excluding social

infrastructures) in the same period.

llA1X

The new 1981-85 programmes for the

~!ez~ogiorno

were notified to the

Commission in 1981 and additional information was provided in 1982.

The Regional Policy Committee has sine!: approved these programmes.

The main problems in the f.lezzogiorno are an inadequate industrial

fabric, the vulnerability of the agricultural and tertiary sectors

and especially the imbalance between labour supply and demand. This

imbalance, already very serious, will grow even worse during the

programme period as the demand for jobs is expected to grow by some

500,000.

The prime development objectives for the r.tezzogiorno, which is a key

component of the medium-term development strategy for the Italian

economy, are to strenghten the productive system, assist the large

metropolitan areas experiencing difficulties and the declining

areas, and remedy the most serious infrastructure deficiencies.

There is a wide and varied array of incentives for industry, tourism

and services together with infrastructure and vocational training

programmes and programmes for developing agriculture and the main

sectors of industry.

The estimates for tourism relate to the period 1981-82.

Appendix A. Sheets.

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LUXE~ffiO!JRG

A new 1981-85 development programme for Luxembourg was notified to

the Commission in 1982 and was still being examined at the end of the

year.

The creation of

7,500

new jobs is a priority objective, since a loss

4,000-10,000

jobs is expected in the steel indudstry alone in the

period 1980-90, at the same time as a substantial growth in the

workforce. Other important objectives are harmonious regional

development and infrastructure improvements in the transport, water

supply, energy, environment, health and education sectors.

comprehensive package of anti-crisis measures has been approved,

along with measures to diversify industrial structures, promote

tourism and modernize agriculture.

The cost of the major

infrastructure investment projects will be some LFR 10,000 Mio in

the period 1981-85.

THE NETHERLANDS

New development programmes for 1982-85 were notified to the

Commission in 1982 and were still under examination at the end of the

year. The programmes concern the North and the South Limburg regions

of the country.

In the North, the main objectives are to reduce unemployment in the

region by creating at least 14,000-18,000 new jobs, improve economic

and social infrastructures, decentralize administrative departments

and bring order into the labour market. In South Limburg too, the

main objective is to reduce regional unemployment. South-Limburg the

main objective too is the reduction or elimination of the regional

component of unemployment.

The planned measures

include regional aids and specific

infrastructure programmes.

total of

HFL

840 Mio has been earmarked

for the North region for the period 1982-85 (HFL 280 Mio for

improvements

in the economic structure, HFL 240 Mio for

infrastructures and HFL 320

~lio

for labour market measures).

10.

UNITED

KINGDOM

New programmes for 1981-85 were notified to the Commission in 1981,

but the Regional Policy Committee deferred consideration pending the

submission of further information. The United Kingdom Government has

undertaken to submit new revised programmes.

ERDF

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ANNEX SHEET H. 2

INTEGRATED OPERATIONS UNDER THE COMMUNITY'S STRUCTURAL FUNDS

Integrated regional development operations

1979,

the Commission's departments adopted guidelines (

51 )

for

encouraging integrated regional development operations.

These integrated operations consist of a coherent programme of

measures and public and private investments relating to a limited

geographical area, to which the Member States' national and local

authorities and the Community contribute on a complementary basis,

the latter through its financial instruments for structural policy

purposes (

52 ) .

In 1982 the Commission continued its efforts in connection with the

projects for integrated operations in Naples and Belfast.

In the General Budget for 1982, the Community had for the first time

budget resources specifically earmarked for the preparation of

integrated operations:

Mio ECU were assigned under Item

5410,

"Preparatory studies for integrated operations".

Item

5410

enables the Commission to participate in financing the

studies necessary for the preparation of integrated operations: the

preparation of a new integrated operation, or the acceleration or

launching of a new stage of an operation already under way, In this

context the Commission gives priority to the following:

•

studies with the greatest likelihood of producing operational

results which could directly and immediately be applied by the

national public authorities and by the Commission of the

European Communities;

studies aimed at clarifying problems causing bottle-necks in the

launching or progress of integrated operations;

studies relating to parts of integrated operations which,

because of their nature and complexity, require special

preparation within an integrated operation;

studies which may be of methodological value to the integrated

approach to development.

•

These preparatory studies must be at the initiative of, or at least

receive the support of, the competent authorites in the Member State

concerned.

509 of

21.3.1979,

item XXIV, p. 85.

See Points 61 to 64 of the Fifth Annual Report (1979) on the European

Regional Development Fund.

C0~1(79) ~lin

Appendix A. Sheets.

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In 1982 the Commission committed an amount of 0.41 Mio ECU for four

studies (under Item 5410) on:

•

the preparation of a new stage of the integrated operation in

Naples;

the improvement of two historical quarters in the centre of

Naples;

a feasibility study of an integrated operation based on the

introduction of a multi-modal transport system, linking Western

Europe to the Middle East via the Salentina Peninsula, Epirus and

Thessaly

(t~.ro

studies).

As these studies were approved by the Commission only at the end of

1982, no payments have yet been made for them. These commitments

leave a balance of 1

.59

111io ECU out of the 2 Mia ECU entered in the

1982 budget. The Commission did not seek the transfer of this balance

for the 1983 exercise - an amount of 2 Mia ECU being again assigned

in the budget for preparatory studies for integrated operations.

Item 5411 "Community measures in the framework of integrated

operations" was allocated 16 Mia ECU in 1982. These appropriations

are for the financing of specific measures in the framework of

integrated operations, in conjunction with the national or local

authorities, where such measures are not covered by the Community's

financial instruments.

The Commission had hoped to use the funds from this budget Item in

1982 to implement a Council Regulation (EEC) instituting a specific

measure to promote housing in Northern Ireland within the framework

of an integrated operation in Belfast. The Commission had presented

this proposal to the Council in November 1981. Unfortunately, the

Council was unable to reach agreement on it(5

3 ) ,

The Commission then set about preparing an alternative solution and

came up with a new proposal, sent to the. council in April 1983, for a

specific measure to promote urban renewal in Belfast. The Council

adopted the Regulation in June 1983.

ERDP

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Table 29

InteRrated operation in Naples: Projects financed

the Fund in 1982.

ElmE

(Mio ECU)

Investment

5.016

9.009

29.101

23.505

101.860

177.834

6.553

46.353

16.118

4.104

4.244

4.132

0.353

1.824

7.745

5.904

2.597

6.649

3. 731

2.985

459.617

3.466

2.440

5.329

10.969

5.108

27.312

29.384

54.340

55.229

138.953

625.882

ERDF cont- Number of

ribution projects

1.003

2.703

11.641

9.175

40.744

71.127

2.621

18.416

6.447

1.642

1.273

1.239

0.141

0.466

3.098

1. 771

0.779

1.995

0.935

1.435

178.651

Description of projects

Various industries

Distribution centre for fruit and vegetables at Nocera Pagani

Purification of Alto Sarno area

Purification of Foce dei Regi Laghi area

Depolluting the Bay of Naples (North Naples)

Depolluting the Bay of Naples (East Naples)

Depolluting the Bay of Naples (Afragola and Casoria) Ze instalment

Aqueduct in West Campania

Supply to the reservoirs of Scudillo and Capodimonte

Enlargement of reservoir at s. Clemente

Sewerage network at Casoria

Roads at Casoria

Drinking and industrial water supply network at Giugliano

Electric cable at Foce Sarno

Water supply to the area of' Flegrea Napoli-1e and 2e instalments

Extension of breakwater at the port of Torre Annunziata

Rough road at Naples (Pomigliano d'Arco)

Tangential road East-West of Naples and hospital area

Modernization of railway line Benevento-Napoli

Study Project for strenghtening

modernizing Alifana railway line

Total

Restoration of the "Villa Campolieto" monument

Restoration of monuments in various municipalities

Port works in various municipalities

Water and sewerage works in various municipalities

Total

Railway line East-West Naples and industrial area

Railway in urban area of Naples and Alifana line

(stretch between Colli Aminei-Secondigliano) 3rd instalment

Total

Grand total

788

0.714

1.599

3.291

1.648

8.040

11.754

21.736

22.091

55.581

242.272

104

Appendix A. Sheets.

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Integrated operation in the Naples area

In Naples, a preparatory study part-funded by the Community has

identified guidelines for the conduct of the integrated operation,

In particular, this study has thrown further light on the

implications of the major problems to be addressed by the integrated

operation, namely:

•

overcrowding, which creates conflicts concerning the designation

of residential areas and industrial areas;

unemployment and a poorly skilled workforce, together with an

over-bloated services sector;

the lack of basic infrastructure (transport, water supply,

public hygiene and health),

The basic dossier, updated at the end of March 1982, provides for

measures at a total cost of around

7,462

Mio ECU,

68?.

of which could

be funded from the resources currently available.

permanent office responsible for monitoring the integrated

operation has been set up in Naples, This office, which has no

decision-making power, has the task of monitoring progress of the

integrated operation on the spot, centralizing all useful

information, warning of any delays or problems, and preparing the

ground for meetings of the technical working group (

54 ) .

In 1982, the ERDF contribution to projects in the area covered by the

integrated operation amounted to 242 Mio ECU. The breakdown is shown

in Table 29.

Integrated operation in Belfast

10.

1982,

aid from the ERDF for projects in the area covered

the

integrated operation amounted to

5. 76

Mio ECU, broken down as

follows:

•

Industrial infrastructure

Internal urban transport and linked projects

Port of Belfast

Drainage system from the River Lagan

0,07

Mio ECU

3.43 Mio ECU

2.13

~lio

ECU

0.14 Mio ECU

The technical working group is composed of the persons mainly

responsible for the practical application of the resources provided

by Community, national, regional and local funds, This working group

is intended to be the hub of the integrated operation.

I t

must,

firstly, monitor closely the preparation and implementation of the

various parts of the integrated operation and, secondly, brief

policymakers on the choices to be made and the decisions to be taken.

ERDF

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Integrated development programmes

11.

The integrated development programmes (IDP) place emphasis on

development planning for an area or small region in which natural

handicaps and existing agricultural structures account for the low

level of productivity and in which there is very little scope for

alternative activities. To ameliorate the difficult situations the

idea is to draw up programmes for promoting simultaneously the

development both of agriculture and of the non-agricultural sector,

starting from the situation and specific resources of the area.

The basic IDP regulations provide that the EAGGF Guidance Section,

over and above its commitments under existing directives and

regulations, is to make an additional financial contribution, to

fund "new" measures or to facilitate and speed up implementation of

the measures already provided for. These operations must be

supported by measures financed under the Community's other

structural funds: aids for training-development under the European

Social Fund and ERDF measures to promote infrastructures and

productive activities, including aids for

s~ms,

the craft industry

and rural tourism.

Three IDPs were adopted in 1981, for:

•

the Western Isles in the United Kingdom(

55 ) ;

the Department of Lozere in France('6);

the South East of Belgium(

57 ) .

12.

A start has been made on the IDPs for the Western Isles and for

Lozere, but the IDP for the South East of Belgium has not yet been

notified to the Commission.

The Western Isles Integrated Development Prograrnme

13.

The Western Isles have to contend with severe natural handicaps.

Apart from agriculture, the main activities are fishing and craft

activities. Communications and transport infrastructures are crucial

to the development of the Western Isles.

ERDF assistance will go primarily to transport infrastructures (sea,

air and land links), rural infrastructures (water, electricity,

alternative sources of energy, industrial buildings), tourism and

the craft industry (weaving, knitting, and processing of seaweed).

In 1982, assistance under the ERDF quota section for the Western

Isles amounted to 0.87 Mio ECU.

Council

O.J. N.

Council

O.J. N.

Council

O.J. N.

Regulation (EEC) N. 1939/81 (Western Isles of Scotland).

L 197, 20.7.1981.

Regulation (EEC) N. 1940/81 (Lozere).

L 197, 20.7.1981.

Regulation (EEC) N, 1941/81 (Belgium).

L 197, 20.7.1981.

Appendix A. Sheets.

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The Lozere Integrated Development Programme

14.

The Lozere IDP places emphasis on developing the region•s main

resources (stockfarming and forestry) and is designed to speed up

implementation of the development plans provided for in Directive

72/159/EEC on the modernization of farms.

The ERDF• s participation in the programme is two-fold: under the

quota section, financing of projects designed primarily to improve

road links with the rest of the country; under the non-quota section

co-financing of development measures to assist the craft industry.

SMEs, the distributive trades and rural tourism within the framework

of the specific "enlargement" measure. As initially submitted, the

IDP envisaged assistance from the non-quota section of just under FF

49 Mio (or some 7.5 Mio ECU). At the moment, the Lozere departmental

authorities have proposed that the non-quota section provide

assistance totalling 1.49 Mio ECU.

Expenditure on non-agricultural activities under this section is

expected to have totalled 0.27 Mio ECU in 1982.

In 1982, grants totalling 0.05 Mio ECU were granted to Lozere under

the quota section.

ERDF

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APPENDIX B. STATISTICS

Appendix B. Statistics

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(Mio ECU)

1982

Member

State

1975-1982

Quota-free

section

(1)

Investment

projects

18.53

17.70

55.36

224.53

344.38

114.30

618.84

2.23

17.46

448.91

1862.24

stud-

ies

Total

18.53

17.82

55.36

224.60

344.38

114.32

620.50

2.23

17.46

449.10

1864.30

Total

Fund

19.33

17.82

55.36

224.60

357.05

114.32

620.50

2.23

17.46

468.37

1897.04

Investment

projects

70.93

80.02

386.62

473.15

1135.96

452.64

2747.27

7.12

98.64

1734.53

7186.88

Stud-

ies

Total

70.93

82.62

386.62

473.34

1135.96

453.43

2755.09

7.12

98.64

1734.90

7198.65

Quota-free

section

81-82(1)

0.98

Total

Fund

71.91

82.62

386.62

473.34

1164.191

456.65

2776.25!

7.12

98.641

1754.641

7271.98

0'1

IRL

0.02

1.66

0.20

2.07

0.12

0.07

0.80

12.67

7.81

0.37

2.60

28.23

3.22

21.16

19.27

32.74

19.74

73.33

EUR 10

11,76

(1) Amounts committed by way of annual allocations of aid granted to quota free programmes.

The aid decisions for the quota free section are made in ECU and not in national currency.

t21

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MAIN TYPES OF PROJECT FINANCED

Comments on Annex Tables 2, 4 and 6

Industry. craft industry and seryices

The assistance granted in 1982 to 621 industrial, craft industry and

service projects amounted to 237.767 Mio ECU (40.7% of the

583.65 Mio ECU in national aids taken into account); the grants went

to investments of a total cost of more than 3,072 Mio ECU which,

according to estimates sent to the Commission, should mean the

creation or preservation of about 48,000 jobs,

The Fund contributed nearly 120 Mio ECU to 34 projects costing more

than 10 r.Ho ECU each and representing a total investment of

950 r.lio

ECU which are expected to create or preserve about 14,100 jobs. In

addition, 587 projects costing less than 10 r.lio ECU and representing

an investment totalling 1,122 r.lio ECU received aid amounting to

118 Mio ECU and according to the estimates should create or preserve

34,000 jobs.

For the projects costing more than 10 Mio ECU, there is a sharp

increase in the average cost of the investments assisted by the Fund

to 57.4 r.Ho ECU in 1982, against 32.1 Mio ECU(

58 )

in 1981 and

4 7. 7 Mio ECU over the period 1975-82, though it is true that one

project alone received over 50 Mio ECU in 1982, for an investment of

over 1,246 Mio ECU. The ERDF grants to these projects represent only

6.1% of total investment and 37

.27.

of national aids (the 1981

percentages being 6.6% and 48.2% respectively). The average grant

per project was 3. 5

~lio

ECU, compared with 2, 1 r.fio ECU in 1981 and

3.0 Mio ECU over the period 1975-82.

For projects costing less than 10 Mio ECU, the average investment

involved and the average grant per project remained much the same as

in 1981, at 1.9 Mio ECU and 0,2 Mio ECU respectively, and fairly

close to the averages for the period 1975-82 (1.8 Mio ECU and

0.16 Mio ECU). The Fund's contribution to these projects stood at

10.5% of total investment and 45.1% of total national aids (8.7% and

45.9% in 1981).

These figures show that in 1982 the Community's contribution as a

proportion of national aids was lower, especially for large

projects. At the same time, national aids to investments costing less

than 10 Mio ECU seem to have been increased because, despite a larger

contribution from the ERDF as a proportion of the investments, its

share as a proportion of national aids declined.

In 1981, the average size of investments (and therefore aid granted)

for projects of more than 10 Mio ECU was relatively small (see point

56 of the Seventh Annual Report (1981) of the ERDF).

Appendix B. Statistics

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Infrastructure

During the year 2,648 infrastructure projects for a total investment

of 9,100 Mio ECU received ERDF assistance amounting to 1,624.4

~lio

ECU, 17.85% of the investment calculation basis.

Almost 63% of this asistance was granted to 118 infrastructure

projects costing more than 10 Mio ECU (1,020.19 Mio ECU), making an

ERDF contribution of 33.6% of eligible public expenditure (31.2% in

1982) and an average grant per project of 8.6

~lio

ECU compared with

8.2 Mio ECU in 1981 and 6. 7 Mio ECU over the period 1975-82.

The 2,530 infrastructure projects costing less than 10 Mio ECU

received Fund assistance amounting to 604.27 Mio ECU, which is about

27% of total investment and 30% of national aids. The average grant

has been 0.24 Mio ECU per project for the average investment of

0.88 Mio ECU in 1982, compared with 0.30 and 1.09 in 1981 and

0.19 Mio ECU and 0.73 Mio ECU over the period 1975-82. The

small

mountain and hill area infrastructure projects submitted under

Article 4(1)(c) of the Fund Regulation received assistance totalling

25.2 Mio ECU, an average grant per project of 0.46 Mio ECU for an

average investment of 1.66 Mio ECU (compared with 0.23 Mio ECU in

average grant and 0.86 Mio ECU in average investment per project for

the other small infrastructure projects).

For major projects, the assistance granted breaks. down as follows:

32% (329.6 Mio ECU) for water supply projects; 31% (312.5 rHo ECU)

for transport; 24% (250.1 Mio ECU) for energy projects; 10% for

telecommunications, To take the analysis a step further, 85% of

grants in the transport sector went to infrastructure projects in

France (98.66 Mio ECU), the United Kingdom (98.30 Mio ECU) and Italy

(69.93 Mio ECU), 77% (254.17 Mio ECU) of grants to water supply

projects went to Italy; and 72% of grants to energy, projects and

telecommunications projects went mainly to France (179.17 Mio ECU)

and to Greece (72.49 Mio ECU).

For the smaller projects (including mountain and hill area

infrastructures), the tables show that the main sectors to benefit

were transport (268. 7 Mio ECU, or 45% of grants), water supply

(143.1 Mio ECU, or 24%) and infrastructures for productive

activities and telecommunications (68.6 Mio ECU and 66.7 Mio ECU

respectively, or 11% of grants to infrastructure projects costing

less than 10 Mio ECU). Nearly 97% (259.59 Mio ECU) of assistance to

the transport sector went to the United Kingdom (103.67 Mio ECU),

Italy (100.7 Mio ECU) and Greece (55.22 Mio ECU); 76% of grants to

water supply projects went to Italy (71 .26

~lio

ECU) and the United

Kingdom 36.93 Mio ECU); and 57% of assistance for telecommunications

projects also went to the United Kingdom (38.43 Mio ECU). The bulk of

assistance to infrastructures connected with productive activities

went to projects in the United Kingdom and Italy, and a smaller

amount to Germany.

ERDF

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Annex Table 2

Inyestment projects financed from the Fund in 1982.

Breakdown by inyestment category:

Industry. craft industry

And

seryices.

Main sectors of activity

MACE

• or

(a)

10 Mio ECU

(b)

(a)

10 Mio ECU

(b)

3.7

0.3

10.2

7.9

12.8

10.1

4.8

17.3

6.4

3.1

4.4

6.9

1.6

0.8

4.8

5.1

3.5

11.7

1.3

0.2

0.5

(c)

451

(a)

Total

(b)

50.4

17.4

0.3

11.0

12.0

12.8

16.0

18.4

27.1

15.0

6.9

6.8

8.7

1.6

0.8

4.8

5.6

3.5

12.8

1.3

0.7

1.5

1.7

621

3072.15

583.65

237.78

48148

(c)

4000

1125

Nuclear fuels

Production and 1st processing of metals

Extraction of minerals other than

metal and energy products

24 Non-metallic mineral products

25 Chemicals

Metal products

32 Mechanical engineering

33 Office and data processing machines

34 Electrical and electronic engineering

35 Motor vehicles and accessories

36 Other transport equipment

37 Precision and optical instruments

41/42 Food, drink and tobacco

43 Textiles

44 Leather

45 Footwear and clothing

46 ·Timber and woorden furniture

47 Paper and paper products; printing,

publishing

48 Rubber and plastics

49 Other manufacturing products

Wholesale distribution except recovery serv.

66 Hotels and catering

Credit institutions

Total number of projects

total investment (in Mio ECU)

Amount of national aids taken into

consideration (in Mio ECU)

Total assistance (in Mio ECU)

Total number of jobs announced

(a) number of projects

(b)

amount of assistance (in Mio ECU)

50.4

13.7

0.8

4.1

5.9

13.6

9.8

8.6

3.8

2.4

1.8

4000

1576

2285

1457

3928

4230

3781

7290

3185

1666

1927

2113

697

248

2733

1703

896

2361

934

145

283.

400

261

0.5

1015

2363

1805

1329

835

276

348

2235

1196

3928

3215

1418

5485

1856

831

1651

1765

697

248

2733

1613

896

2301

934

157

0.5

1.1

1.0

1.7

1950.32

321.86

119.74

14143

126

400

587

1121.83

261,79

118.04

34005

Appendix B. Statistics

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Annex Table 3

Investment projects financed from the Fund 1975-1982.

Breakdown by investment category;

Industry. craft industry and seryices.

Main sectors of activity

NACE

Nuclear fuels

Production and distribution of electric

power, gas, steam and hot water

Extraction and preparation of metal ores

Production and 1st processing of metals

Extraction of minerals other than

metal and energy products

Non-metallic mineral products

Chemicals

~!an-made

fibres

Metal products

Mechanical engineering

Office and data processing machines

34 Electrical and electronic engineering

Motor vehicles and accessories

Other transport equipment

Precision and optical instruments

41/42 Food, drink and tobacco

Textiles

Leather

Footwear and clothing

Timber and woorden furniture

Paper and paper products; printing,

publishing

48 Rubber and plastics

Other manufacturing products

Building and construction

Wholesale distribution except recovery serv.

Hotels and catering

Credit institutions

Financial and insurance auxiliaires;real

estate;services supplied to enterprises

(a)

10 Mio ECU

(b)

(c)

5993

800

6901

(a)

10 Mio ECU

(b)

0.8

1.9

1.2

22.5

(c)

167

354

304

6991

(a)

Total

(b)

73.2

1.9

4.2

67.2

(c)

354

1104

13892

1545

24988

21449

1021

45225

47313

9866

69691

93863

11265

14368

29308

8068

1996

19512

20533

. 72.4

3.0

44.7

0.2

23.4

69.8

1.9

9.2

42..7

18.3

58.1

332.0

19.5

10.9

55.5

3.2

12.1

5.6

11.8

23.0

114

6822

9836

560

2515

11944

5376

16172

73413

3754

2610

8392

313

362

215

652

423

390

162

102

380

107

3020 161

1446 361

1285

4371

213

372

126 115

1603

1480

5.4

64.1 18166

43.8 11613

1.7

461

88.4 42710

65.2 35369

10.7

4490

89.7 53519

20450

7511

14.0

19.1 11758

57.7 20916

13.5

7755

3.7

1996

18.0 16492

41.9 19087

30.0

61.8

9.6

0.1

1.6

10.4

1.3

0.5

4448

8024.91

1570.16

725.63

338434

5.6

376

87.5

261 113.6

3.6

660

97.6

450 107.9

29.0

415 147.8

211 369.0

33.5

106

30.0

405 113.2

109

16.7

3.7

163

30.1

365

47.5

0.5

1.0

2.4

13104 222

25881 389

6783

846

4228 116

630

326

41.8 14389

84.8. 30252

6783

9.6

0.1

2.1

906

11.4

4354

2233

3.7

1.2

4723

21134.55

726

275

13109.64

2065.63

822.48

167777

400

Total number of projects

Total investment (in Mio ECU)

Amount of national aids taken into

consideration (in Mio ECU)

Total assistance (in Mio ECU)

Total number of jobs announced

(a) number of projects

(b) amount of assistance (in Mio ECU)

3635.79

1548.11

506211

ERDF

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ti:J

C/.1

•

Main sectors of activity

10 Mio ECU

(a)

10 Mio ECU

(a)

(b)

.......

(It

t"t

C"'t

Mountain or

hillfarming

area

(a)

(b)

22.2

0.5

2.4

0.1

(a)

Total

(b)

81.7

581.3

167

276.8.

472.7

23.7

21.3 •

2648

9100.49

5094.64

1624.46

(b)

13.1

312.5

100.3

250.1

239.6

14.6

.......

Infrastructure linked to productive activities

C"'t

Transport infrastructure

Telecommunication infrastructure

Energy infrastructure

Water supply infrastructure

Infrastructure protecting the

environment

Educational, social, medical, cultural, sports

and leisure infrastructure

Total number of projects

Total investment (in Mio ECU)

Amount of national aids taken into

consideration (in Mio ECU)

Total assistance (in Mio ECU)

(a) number of projects

(b)

amount of assistance (in Mio ECU)

~-.~---

207

68.6

1226 246.6

179 66.2

132

26.7

615 140.7

9.0

21.3

211

1316

189

144

667

118

6863.08

3040.35

1020.19

91.39

81.65

25.21

2475

2146.02

1972.64

579.06

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Main sectors of activity

10 Mio ECU

(a)

(

10 Mio ECU

(a)

Mountain or

hillfarming

area

(a)

233

133

927

Total

(a)

3094

4213

1023

586

2354

108

358

1312

(b)

453.0

1009.0

320.1

496.0

804.3

77.1

26.9

23.4

(b)

0.6

37.6

14.1

5.2

15.6

0.2

0.1

50.3

(b)

935.0

1857.2

553.3

599.0

1342.5

105.5

. 119.6

126.8

Infrastructure linked to productive activities

Transport infrastructure

Telecommunication infrastructure

Energy infrastructure

Water supply infrastructure

Infrastructure protecting the

environment

Educational, social, medical, cultural, sports

and leisure infrastructure

Miscellaneous

Total number of projects

Total investment (in Mio ECU)

Amount of national aids taken into

consideration (in Mio ECU)

Total as,sistance (in Mio ECU)

(a) number of projects

(b) amount of assistance (in Mio ECU)

105

188

104

2985 481.3

3792 810.6

860 219.1

500 97.8

2151 522.6

352

379

28.2

92.6

53.1

477

29676.30

11604.57

3209.82

11114

8769.79

7795.38

2305.25

1457

445.05

392.14

123.71

13048

38891.14

19792.09

5638.78

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tlf

C"'t

(Mio ECU)

Productive

Count· activities

try

Transport

Nber

Ass.

TelecOIIIIIIU-

nications

Nber Ass.

Energy

Nber Ass.

Water•

supply

Nber Ass.

Envi~

onment

Nber Ass.

SOCial

infrastr.

Nber Ass.

•

Invest.

costing

10 Mio ECU

or more

.....

(I)

3.73

102

10.88

98.66

17.02

69.93

5.72

IRL

....

- -

4.42

4.96

11.95

98.30

0.20

3.39

2.31

55.22

1.65

81.03

0.70

102.07

0.54

- -

72.49

27,81

18,27

179.17

11.48

1.84

Invest.

costing

less than

10 Mio ECU

56 15.75

7 6.84

IRL

- -

20.56 826

2.23

1.28

0.16 53

- -

0.14

37.25

15.38

3.90

1.93

7.10

0.61

4.16

22.08

9 20.66

254.17

21.22

4.11

2.01

2.20

25.65

11,28

1.52

2.63

2.80

2.14

0.35

140 27.93

109 21.98

253

- -

36 37.93 23

9.00

418 71.09

- -

102 35.66

- -

5.98 18

3.00 33

4.15

9.22

Invest. in

mountain

in hill

farming

areas

- -

--- -

IRL

0.33

19.68

1.60

0.50

0.99

0,17

1.27

0.15

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Annex Table 7

Investment proiects inspected in

1Q82

and

since the establisbment of the Fund

{by

region).

Number of projects inspected

Country

and

Member States

Vlaanderen

Wallonie

BELGIQUE/BELGIE

Gr0nland

Nordjylland

Viborg

DANMARK

1975-1982

of which in

1982

Industry.

craft ind ••

Infra-

craft ind ••

Infra-

services

structure

services

structure

Schleswig-Holstein

Niedersachsen

Nordrhein-Westfalen

Hessen

Rheinland-Pfalz

Saarland

Bayern

Baden-Wilrttemberg

DEUTSCHLAND

Ana. Ster.Kai Nisoi

Kriti

~fakedonia

Peloponissos

Thraki

ELLAS

;·

ERDF

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Annex Table 7

Investment projects inspected in 1982 ADd

since the est8blisbment of the Fung

(by

region),

(continued)

Number of projects inspected

Country

and

Member States

Alsace

Aquitaine

Auvergne

Basse-Normandie

Bretagne

Champagne-Ardenne

Corse

Languedoc-Roussillon

Limousin

Lorraine

Midi-Pyrenees

Nord-Pas-de-CAlais

Pays de la Loire

Poitou-Cbarente

Rhones-Alpes

D.O.M.

FRANCE

1975-1982

of which in 1982

Industry,

Infra-

craft ind.,

Infra- craft ind.,

services structure services

structure

152

Donegal

North West

West

~tid

West

South West

South East

Midlands

East

North East

J.IJulti-regional

IRELAND

Appendix B. Statistics

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Annex Table 7

Investment projects inspected in 1982 and

since the establisbment of the Fund (by region).

Number of projects inspected

Country

and

Member States

Abruzzi

Basilicata

calabria

Campania

Friuli-Venezia Giulia

Lazio

Marche

Molise

Puglia

Sardegna.

Sicilia

Multi-regional

ITALIA

LUXEMBOURG

Groningen

Limburg

Friesland

NEDERLAND

Northern England

North West England

Yorkshire

Humberside

Midlands

South West England

Scotland

Wales

Northern Ireland

Multi-regional

UNITED KINGDOM

EUR 10, per category

EUR 10, total

1975-1982

of which in 1982

Industry,

craft ind.,

Infra- craft ind.,

Infra-

services structure services structure

128

230

114

204

109

521

1268

257

747

ERDP

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Bc•ipntl di1tributign gf •••i•tanpe frgm the lUnd in 1912.

Annu rotc a

Melnber

State

Assistance 1982

in Mio ECU

in () number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

Studies

Total

Vlaanderen

Wallonie

BELGIQUE/BELGIE

Grenland

Other regions

DAmiARK

6. 93(12)

1.53(1)

8.51 (17)

10.04(18)

12.34(111)

2.84(2)

15.18(113)

0.85(7)

0.42(2)

2.48(2)

0.69(2)

0.12(1)

12.52(36)

3.93(2)

1.53(7)

6.93(12)

0.12(1)

8.46(13)

10,04(24)

18.~0(37))

2.51(39)

3.52(21)

0.13(3)

2 .48(8)

2.38(30)

0.56(5)

5.64(23)

8.17(29)

3. 70(30)

26.58(149)

0.16(1)

1.26{5)

0.69(4)

0.43(1)

0.21(2)

0.53(2)

2.35(4)

2.93(4)

5.76{1)

14.32{24)

Schleswig-Holstein

Bremen

Nordrhein-Westfalen

Hessen

Rheinland-Pfalz

Baden-WUrttemberg

Bayern

Saarland

Berlin

Niedersachsen

DEUTSCHLAND

Ana, Ster. Kai Nisoi

Kentr.Dyt. Makedonia

Pelop. Dyt. Ste. Ellas

Thessalia

Anatoliki Makedonia

Kriti

lpiros

Thraki

Nisoi Anat. Agaiou

Multireg. projects

ELLAS

12.46(112)

5.35(41)

17.81 (153)

4.37(28)

0.55(5)

4.96(10)

3.07(32)

0.68(6)

18.16(59)

12.10(31)

11.42(59)

55.31 (230)

20. 77(30)

26.20(30)

44.43(32)

25.26(18)

19.07(19)

26.13(32)

12. 88(12)

18.32(20)

18.29{17)

13.25(3)

224. 60(213)

0.12(1)

7. 72(29)

28.73(81)

20.61(29)

24.94(25)

43.74(28)

24.83(17)

18.86(17)

25.60(30)

10.53 (8)

15.39(16)

18.29(17)

7 .42(1)

210. 21(188)

0.07(1)

Appendix B. Statistics

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Annex Table 8

Besignal distribution of assistance frgm the Fund in

1982.

(continued)

Member

State

Assistance

1982

in Mio

ECU

number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

Studies

Total

Haute-Normandie

Basse-Normandie

Picardie

Champagne-Ardenne

Bourgogne

Centre

Nord-Pas-de-calais

Bretagne

Pays de la Loire

Poitou-Charentes.

Lorraine

Alsace

Franche-comte

Limousin

Aquitaine

Midi-Pyrenees

Auvergne

Rhones-Alpes

Languedoc-Roussillon

Frovence-C8te-d'Azur

Corse

if:iuadeloupe

Guyane

r~rtinique

0.40(6)

13(2)

0.12(1)

0.18(3)

1.81(16)

0.69(11)

1.22(9)

1.21 (14)

1.19(11)

0.30(5)

0.04(1)

0.26(3)

69(11}

1. 76(22)

0.13(3)

2.68(2)

0.09(2}

3.39(2)

6. 91 (2)

63.24(91)

6.40(6)

3.51 (1)

1.39(2)

5.19(1)

10.98(22)

32.14(14)

10.31 (6}

3. 79(8)

0.13(2)

0.12(1)

0.18(3}

8. 72(18)

63. 93(102)

7.62(15)

4. 72(15)

2.58(13)

0.30(5)

0.04(1)

5.45(4)

11. 67(33)

33.90(36)

10.44(9)

2. 68(2)

9.31(29)

29. 94(2)

47. 76(2)

13.78(4)

46.12(3)

28.24(4)

12.92 (1)

334.34(312)

114.34(67)

29.94(2)

9.22(27}

Reunion

Multireg. projects

FRANCE

0.15(1)

0.22(3)

0.37(2)

0.28(3)

47.61(1)

13.56(1)

45. 75(1)

27 .96(1)

12.92(1)

330.42 (181)

81.18(15)

13.92(131)

32.82(48)

0.02(1)

IRELAND

0.32(3)

ERDF

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Annex Iable 8

Regional distribution of assistance of tbe

Fund

1982,

Ccgnt

inuedl

Member

state

Assistance

198Z

in Mio

ECU

()

number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

Studies

Total

Friuli-Venezia Giulia

Toscana

Marche

Lazio

Abruzzi

Molise

Campania

Puglia

Basilicata

Calabria

Sicilia

Sardegna

Multireg. projects

ITALIA

LUXEMBOURG

Noord Nederland

Limburg

NEDERLAND

North

Yorkshire/Humberside

East Hidlands

South-West

West Midlands

North-West

Wales

Scotland

Northern Ireland

Hultireg. projects

UNITED KINGDQI\1

10.11(39)

9. 96(26)

16.99(36)

8.16(29)

0.56(3)

1 .44(6)

4.32(24)

5. 74(47)

4.13(37)

21.23 (29)

7.73(1)

279.82(353)

45 .23(398)

9.64(55)

44.49(273)

62.86(30)

32.17(179)

37.25(1)

19.99(26)

1.47(1)

0.19(1)

5.74(47)

14.24(76)

28.19(55)

7.73(1)

298.28(390)

53 .39(427)

10.20(58)

65.92 (305)

67 .37(55)

32. 1 7 (179)

37 .25(1)

620.48(1594)

2.23(1)

8.98(6)

8.48(5)

17 .46(11)

105.17(91)

35.28(70)

2.49(4)

12.93(30)

50.01 (99)

89.40(98)

112.30(166)

41 .48(100)

0.02(1)

499.08(659)

48.54(163)

550.29(1403) 19.99(26)

2.23(1)

5. 98 (1)

6.67(2)

12.65(3)

54.44(88)

34.59(66)

2.49(4)

12.93 (30)

49.57(96)

63.33 (86)

105.46(139)

35.46(81)

1.66(2)

3.00(5)

1.81 (3)

4.81 (8)

0.06(1)

0.11(1)

0.02(1)

0.19(3)

so.

73(3)

0. 69(4)

0.44(3)

26.07(12)

3.42(7)

5.91 (18)

3.36(19)

3 .36(19)

87.26(47)

358.27(590)

Appendix B. Statistics

(8)

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Annex T4ble 9

Resional distribution of assistance

frqm the

Fund 1975-82.

Member

State

Assistance 1982

in Mia ECU

()

number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

Studies

Total

Vlaanderen

Wallonie

BELGIQUE/BELGIE

Gr0nland

Other regions

DAm-lARK

Schleswig-Holstein

Bremen

Nordrhein-Westfalen

Hessen

Rheinland-Pfalz

Baden-WUrttemberg

Bayern

Saarland

Berlin

Niedersachsen

DEUTSCHLAND

Ana. Ster. Kai Nisoi

Kentr.Dyt, Makedonia

Pelop. Dyt. Ste. Ellas

Thessalia

Anatoliki Makedonia

Kriti

Ipiros

Thraki

Nisoi Anat, Agaiou

Multireg. projects

ELLAS(•)

14. 64(37)

11.67(25)

26.31(62)

20.92(131)

18.71 (74)

37 .63(205)

61.83 (425)

11.26(5)

73.09(430)

24. 25(93)

0.65(4)

10.37(15)

11.34(41)

2.35(23)

5.46(41)

51.48(168)

13.00(23)

21.86(4)

40.98(155)

181. 74(567)

64.49(51)

67 .37(52)

71.96(75)

49.15(48)

29. 95(27)

38.07(54)

29.75(40)

33.64(41)

44.91 (44)

22.85(5)

452.14(437)

6.32 (37)

6.32(37)

35.56(168)

36. 70(136)

70.26(304)

64.43(428)

20.05(133)

84.48(561)

55.05(227)

1.60(15)

29.63(149)

24. 77(150)

21.83(142)

14.47(120)

83.72(324)

55.25(215)

21.86(4)

83.90(449)

392.08(1795)

64. 70(53)

68. 63(57)

72.71(80)

49.58(49)

30.24(30)

38.60(56)

33.52(45)

41.59(60)

46.53(50)

28. 75(8)

474.85(488)

8. 79(128)

30.80(134)

0. 95 (11)

19.26(134)

13.43(109)

19 .48(119)

9.01 (79)

32.24(156)

42.25(192)

2.60(3)

42.92(294)

210.34(1228)

0.16(1)

1.26(5)

75(5)

0.43(1)

0.29(3)

0.53(2)

3. 77(5)

7. 95(19)

1. 62 (6)

5. 76(1)

22.52(48)

0.14(2)

0.19(3)

0.05(1)

(•) Ellas assistance 1981-82.

ERDF

100

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Annex Iable

Regional distribution of assistance

frgm

the Fund 1975-82.

Ccontinygdl

Member

State

Assistance 1982

in Mio ECU

()

number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

Studies

Total

Haute-Normandie

Basse-Normandie

Picardie

Champagne-Ardenne

Bourgogne

Centre

Nord-Pas-de-Calais

Bretagne

Pays de la Loire

Poitou-Charentes

Lorraine

Alsace

Franche-comte

Limousin

Aquitaine

Midi-Pyrenees

Auvergne

RhOnes-Alpes

Languedoc-Roussillon

Provence-Cote-d'Azur

Corse

Guadeloupe

Guyane

Martinique

Reunion

~1ultireg.

projects

FRANCE

IRELAND

0,27(2)

5 .50(34)

0.89(12)

6.05(22)

71(10)

1.31 (12)

71.15(117)

15.25(129)

24.49(119)

11.56(76)

46.27(145)

5.41(51)

0.08(3)

3.82(35)

16.86(83)

12.07(98)

6.51(41)

18.36(70)

8.28(47)

1.61(18)

0.15(2)

3. 95 (61)

3.86(23)

3. 23 (33)

2. 80(52)

11.58(32)

0.17(2)

8.54(15)

191.77 (155)

46.85(84)

32.52(147)

14.88(8)

43.56(71)

48.47(98)

78.14(184)

71.06(122)

94(11)

45.86(166)

44.71(54)

59. 72(30)

21.14(26)

57.55(29)

54.15(27)

12.92(1)

0.05(1)

3.06(32)

0.29(11)

2.30(17)

1.43(13)

70(3)

1 ,06(22)

1.02(9)

0.32(4)

2.33(11)

95 (7)

27 (2)

17 ,08(66)

0.89(12)

6.05(22)

71 (10)

1.48(14)

79.69(132)

207 .02(284)

71 .34(203)

44.08(223)

61.15(153)

5.46(52)

0.08(3)

50.44(138)

65.62(192)

92.51(299)

79.00(176)

20.00(84)

55.20(235)

1.61(18)

44.86(56)

64.69(100)

25.32(53)

63. 11 (73)

57 .90(86)

12.92(1)

1128.48(2687)

450.82(695)

270.44(1295)

130.59(233)

844.53 (1262) 13.51 (130)

306.45(387)

12. 99(72)

79(3)

Appendix B. Statistics

101

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Annex Table 9

Regional distribution of assistance from the Fund 1975-82.

(continued)

Member

State

Assistance 1982

in Mio

ECU

()

number of projects or studies

Industry

services

Infra-

structure

Mountain

infras-

tructure

3.09(72)

0.37(8)

1. 77(38)

0.42(14)

2.59(75)

4.62(191)

5.46(104)

3.36(117)

26.46(261)

11.28(115)

3.36(85)

Studies

Total

Friuli-Venezia Giulia

Toscana

Marcbe

Lazio

Abruzzi

Molise

Campania

Puglia

Basilicata

Calabria

Sicilia

Sardegna

Multireg. projects

1 .00(5)

11.92(48)

61. 14(242)

60. 18(164)

4.66(14)

63. 36(234)

76.55(175)

8. 15 (31)

7 .86(38)

25. 79(127)

8.79(50)

42 .14(282)

2.19(1)

35.99(252)

61.08(215)

76.03 (130)

28.42 (181)

710.01 (796)

146.26(555)

43.36(513)

227.41 (948)

446.89(229)

184.97(635)

355.29(15)

5. 62(8)

0.19(1)

2.00(6)

45.23(354)

3.19(6)

48.28(308)

123.99(495)

136.63(308)

35.67(270)

783.61 (1229)

228.27(834)

54.87(661)

261. 73(1247)

484.15 (472)

199.12(776)

335.29(15)

IT ALIA

LUXE~ffiOURG

329.40(1128) 2340.04(4752) 62. 78(1080) 7.81(15) 2740.03(6975)

9. 99(6)

7.33(5)

17.32(11)

124.32(112)

9.14(39)

2.13(11)

4.84(30)

103 .40(62)

87 .85(93)

87 .31(132)

84.48(111)

7 .23(9)

58.59(28)

24.49(12)

83.08 (40)

229.36(695)

99.63(392)

13.60(56)

39.94(148)

0.54(8)

126.13(501)

1 98 • 18 (711 )

355. 11 (746)

136.46 (24 7)

7 .23(9)

68.58(34)

31.82(17).

100.40(51)

353.68(807)

108.90(432)

15. 73(67)

44.78(178)

0.54(8)

229.53 (563)

286.08(805)

443.68(990)

224.28(387)

0.02(1)

1707.19 (4238)

Noord Nederland

Limburg

NEDERLAND

North

Yorkshire/Humberside

East Midlands

South-West

West Midlands

North-West

Wales

Scotland

Northern Ireland

~tultireg.

projects

UNITED KINGDOM

0.13(1)

0.05(1)

0.06(1)

0.14(2)

0.02(1)

0.37(6)

21. 20(111)

3.20(27)

503.47 (590)

1178.95 (3504) 24.40(138)

ERDF

102

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Annex Table 10

Main social and economic indicators.

Member

State

BELGIQUE/BELGIE

Vlaanderen

Wallonie

DANMARK

Population 1980 Assist./cap.

1000

pop/km2

1982

ECU

1975/82

ECU

Unempl. GDP/cap,

index

1981

(PPS)

ind.1979

5627

3228

416

192

1.50

3.11

6.32

11.37

137.1

164.6

104.5

86.4

Gr0nland

Other regions

DEUTSCHLAND

Schleswig-Holstein

Bremen

Nordrhein-Westfalen

Hessen

Rheinland-Pfalz

Baden-Wlirttemberg

Bayern

Saarland

Berlin

Niedersachsen

3332

264.04 1272.24

1. 61

6.02

60.6

76.1

47.3

40.2

46.4

33.4

36.7

68.8

74.4

53.6

96.3

147.7

113.6

119.8

103.4

12.0.3

108.8

102.8

133.2

98.5

ind,1978

2605

695

17044

5589

3639

9233

10899

1068

1899

7246

166

1720

500

265

183

258

154

416

3956

153

1.68

0,79

0.29

0.55

0.07

1.67

11.33

1.58

1982

21.13

2.30

1. 74

4.43

6.00

1.57

7.68

51.73

11.51

11.58

1981/82

ELLAS

Ana. Ster. Kai Nisoi

Kentr.Dyt. Makedonia

Pelop. Dyt. Ste. Ellas

Thessalia

Anatoliki Makedonia

Kriti

Ipiros

Thraki

Nisoi Anat. Agaiou

3982

1680

1287

695

426

501

443

346

348

181

5.22

15.60

34.52

36.35

44.77

52.16

29.07

52.95

52.56

16,25

40.85

56.50

71.34

70.99

77 .OS

75.67

120.20

133.71

(•)

96.2

93.5

77.8

73.1

66.7

72.5

62.5

52.5

60.9

(•) Index for Greece: - unemployment 1981

- GDP/cap (PPS) 1979

53.6

57.6

Appendix B. Statistics

103

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Annex Table 10

Main social and economic indicators.

(continued)

Member

State

FRANCE

Population 1980 Assist./cap,

1000 pop/km2

1982

ECU

1975/82

ECU

Unempl. GDP/cap.

index

1981

(PPS)

ind,1979

Haute-Normandie

Basse-Normandie

Picardie

Champagne-Ardenne

Bourgogne

Centre

Nord-Pas-de-Calais

Bretagne

Pays de la Loire

Poitou-Charentes

Lorraine

Alsace

Franche-Comte

Limousin

Aquitaine

Midi-Pyrenees

Auvergne

RhOnes-Alpes

Languedoc-Roussillon

Provence-Cote-d'Azur

Corse

Guadeloupe

Guyane

Martinique

Reunion

IRELAND

1645

1316

1719

1348

1592

2232

3923

2660

2872

1539

2312

1565

1089

733

2581

2272

1319

4947

1838

3892

230

328•

73•

326•

515•

3401

134

316

189

2.88

0.08

2.22

24.03

2.65

3.07

1.12

0.19

0.04

7.44

4.52

14.92

7.92

0.54

5.07

130.17

145.34

188.77

141.47

54.83

33.62

113

124

193•

296•

205•

0.16

12.98

0.52

4.49

0.45

0.66

20.31

77.83

24.84

28.64

26.45

3.49

0.07

68.81

25.42

40.72

59.89

4.04

30.03

0.41

195.04

197.23

346.85

193.59

112.43

132.56

125.2

102.9

110.6

132.0

94.5

95.0

137.0

89.4

102.1

101.5

96.4

72.3

94.8

92.6

109.2

108.0

104.9

100.2

131.0

128.7

111.7

128.0

91.3

104.4

112.3

97.0

98.7

95.5

84.1

94.9

82.9

99.7

107.2

98.5

81.4

96.1

81.5

86.6

108.6

95.8

106.5

135.1

62.3

(•) number 1982

ERDF

104

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Annex Table 10

Main social and economic indicators.

(continued)

Member

State

ITALIA

Friuli-Venezia Giulia

Toscana

~tarche

Population 1980 Assist./cap.

1000

pop/km2

1982

ECU

1975/82

ECU

Unempl. GOP/cap.

index

1981

(PPS)

ind.1979

Lazio

Abruzzi

Holise

Campania

Puglia

Basilicata

Calabria

Sicilia

Sardegna

LUXEMBOURG

NEDERLAND

Noord Nederland

Limburg

UNITED KINGDOM

North

Yorks

~1ire/Humbers

ide

East Midlands

south-lvest

West Midlands

North-West

Wales

Scotland

Northern Ireland

1245

3601

1418

5074

1242

334

5475

3930

619

2083

5012

1606

365

159

157

146

295

115

403

203

138

195

141

36.33

0.89

34.05

2.81

24.44

22.70 110.01

23.14 106.80

54.48 139.47

13.59

58.08

16.48

88.64

31.65 125.65

13.44 129.52

20.03 123.99

6.11

19.81

4.05

80.5

95.6

71.5

130.5

136.3

113.6

182.1

129.3

222.8

184.4

159.9

223.4

39.8

94.6

96.1

84.2

84.5

68.4

59.9

57.3

60.8

61.2

47.9

57.5

66.5

124.3

1562

1071

173

485

5.75

7.92

43.91

29.71

140.0

138.5

123.1

86.4

3082

4884

3779

4343

5154

6450

2778

5153

1547

200

317

242

182

396

880

134

110

34.12

7.22

0.66

2.98

7.75

32.18

21.79

26.81

114.76

22.30

4.16

10.31

0.10

35.59

102.98

86.10

144.98

167.6

136.2

117.9

100.8

137.7

160.7

158.8

164.3

204.0

89.7

87.4

88.7

85.3

86.6

89.1

91.1

94.1

70.2

Appendix D. Statistics

105

105-106

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APPENDIX C. SYMBOLS AND ABBREVIATIONS USED

(

less than

more than

percentage

million

'000 million

European Currency Unit

Deutschemark

French franc

Italian lira

Florin (Guilder)

Belgian franc

Luxembourg franc

Pound sterling

Irish pound

Danish crown

Drachma

Gross domestic product at market prices

Purchasing Power Standard

European Communities

European Coal and Steel Community

All member countries of the EC, except Greece

All member countries of the EC

Mio

Mrd

ECU

LIT

HFL

BFR

LFR

UKL

IRL

DKR

GDP

PPS

ECSC

EUR 9

EUR 10

Appendix

Symbols and abbreviations used

107

107-108

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TABLE OF CONTENTS

Chapter I - Introduction

Preliminary remarks

Summary of Fund activity in 1982

Chapter II - Fund activities

Quota section

• • • • • • •

Introduction and method of work

Submission of grant applications

Outcome of examination of grant applications

Consultation of the Fund Committee

•••••••

Grant decisions

• • • •

Investment projects

• • • •

Studies

. • • • •

Non-quota section

Implementation of specific measures

Programme implementation

• • • • • •

New proposals for non-quota regulations

Chapter III - Financial Management and Control

Budget Resources Available

• • • • • . • • • • • •

Utilization of Commitment Appropriations

Quota section

• • • • • • • • • •

Non-quota sect ion

• • • • • • • •

Settlement of Commitments (Payments)

Quota section

Non-quota section

Controls

Inspections

Assessments

Chapter IV : Publicity for Fund Activity

Press Information

• • • • • • • • • •

Signboards

• . • • • . • • • • • • • •

Non-quota measures: Information activity by national authorities

Publication in the Official Journal

• • • • •

Quota section

Non-quota section

Informing Investors

Chapter V : The ERDF's activities from 1975 to 1982

A brief review

. . . . . . . . . . . . . . . . . . .

Quota section

Non-quota section

• • • • •

• ••••

•..••••••••••••••

Application of the principle of geographical concentration

••••

The impact of Fund assistance on employment

• , • • • • • • • • •

The principles of complementarity and additionality and the

possibility of combining national and Community aids

Impact of the ERDF on regional development

• • • • •

Appendix A. Sheets.

Table of contents

109

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Annex Sheet N.

••••.•

Regional Development Programmes

Annex Sheet N. 2

••..••

Integrated operations under the Community's structural funds

Integrated regional development operations

• • • • •

Integrated development programmes

• • • •

Appendix B. Statistics

• • • •

• •••

Main types of project financed

••••

Industry, craft industry and services

Infrastructure

. . • • • • . . • • •

Appendix

107

Symbols and abbreviations used

ERDF

110

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LIST OF TABLES

Table 1 Investment projects examined for 1982.

Table 2 Breakdown by investment category of assistance and

investment relating to applications examined in 1982.

Table 3 Breakdown of the number of investment projects rejected on

completion of the examination procedure 1982.

• • • • • • • • • •

Table

Outcome of examination of investment projects in 1982.

Table 5 Grant decisions in 1982: number of investment projects,

investment, assistance granted under each allocation.

Table 6 Investment projects examined for 1982.

. • • • . . •

Table 7 Breakdown (in

of grants by investment category).

Table 8 ERDF quota section Studies under Article 12. Situation at

31 • 12. 82 - 1980-82.

. • • . . • • • . . . • • • . • • • •

Table 9 Grants for non-quota programmes.

• • • . . • •

Table 10 Budgetary situation 1982 (ERDF quota section).

Table 11 Use of commitment appropriations in 1982.

Table 12 Balances of commitment appropriations outstanding each

year-end.

. • • • • . • • • • . . • • • . • • • • • . • •

Table 13 Budgetary situation 1982. (ERDF non-quota section).

Table 14 Carry-overs and transfers to quota section.

Table 15 Payments made in 1982 - Commitments still to be paid at

the end of 1982. • . • . • • . • . • • • • . . • • • . . • •

Table 16 Settlement of commitments in each financial year.

Table 17 Breakdown of payments in each year by Member State.

Table 18 Payment appropriations since 1975. . • • • . . • •

Table 19 Commitments and payments in respect of special programmes.

Table 20 On-site signboards.

. . • . •

• • • . . . • • . . •

Table 21 Number of projects submitted to the Commmission, referred

to the ERDF Committee and granted aid.

• . . . . . . • • .

Table 22 Draft decisions submitted for the opinion of the Fund

Committee. • • • • • • . • • • • • .

Table 23 Grant decisions 1975-1982.

. . • • • • . • • • •

Table 24 ERDF's budget allocation.

. . • • . . . • . .

Table 25 Breakdown of commitments by

~fember

State, 1975-1982.

Table 26 Grants to the most disadvantaged regions as

of total

ERDF aid granted each year.

. . • • • • . • • •

Table 27 ERDF assistance by region and per capita for the most

disadvantaged regions. • . • • • • . • • • • • • • • • • • • •

Table 28 Annual forecasts of jobs created and preserved, 1975-1982.

Table 29 Integrated Operation in Naples: Projects financed by the

Fund in 1982 • • • • • • • •

• .• , • • • . • • • • . • • • •

Annex table 1 Summary of Fund aid decisions, aid granted to

~lember

States.

. • • • • • • • • • . . . . • • •

• • . .

Annex table 2 Investment projects financed from the Fund in 1982,

industry, craft industry and services. • • • •

• • . • • • • •

Annex table 3 Investment projects financed from the Fund 1975-1982,

industry, craft industry and services. • • • • • • • • •

Annex table 4 Investment projects financed by the Fund in 1982,

infrastructure.

. • • • . • • • • . . • • •

• • • . . . • •

Annex table 5 Investment projects financed by the Fund 1975-1982,

infrastructure.

. . • • • • . • • • • • • •

• • • • • • • • •

ERDF

Ill

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Annex table 6 Infrastructure projects 1982, assistance granted.

Annex table 7 Investment projects inspected in 1982 and since the

establishment of the Fund (by region) • • • • • • • • • • • • •

Annex table 8 Regional distribution of assistance from the Fund in

1982.

. . . . • . . . . . . . . . . . . . . . . . . . . .

Annex table 9 Regional distribution of assistance from the Fund

1975-82. • • • • • • • • . • • • • • • • • • • •

Annex table 10 Main social and economic indicators.

100

103

List of Tables

112

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European Communities - Commission

European Regional Development Fund

Eighth annual report (1982)

Luxembourg: Office for Official Publications of the European Communities

1984 ·- 112 pp. -

1 6.2 x 22.9 em

DA,

DE, GR, EN, FR,

IT,

ISBN 92-825-4115-0

Catalogue number: CB-38-83-677-EN-C

Price (excluding VAT) in Luxembourg:

ECU 9.80

BFR 450

IRL 7.20

UKL 5.60

USD 8.50

In 1982, as discussions continued on the proposed amendment of the ERDF

Regulation presented in October 1981, a start was made with the specific regional

development measures, known as 'non-quota measures', which had been adopted

in October 1980 by the Council, and in November proposals for a second series of

non-quota measures were unveiled.

The endowment for the Fund's quota section was increased in 1982 by only 14.25%

and available commitment appropriations amounted to 1 817 million ECU, 12.5% up

on 1981; virtually all these appropriations were committed ( 1 812 million ECU).

Payments made in 1982 totalled 950 million ECU, or 92.2% of available budget

appropriations.

For the non-quota section, available commitment appropriations totalled

151 million ECU. Just under 33 million ECU were committed during the year,

bringing to 73 million ECU the total committed since 1981 (close on 34% of the

amount set aside for the five-year period covered by the specific Community

measures). Payments amounted to 22 million ECU.