Common Position (EC) No 20/1999 of 14 April 1999 adopted by the Council, acting in accordance with the procedure referred to in Article 189c of the Treaty establishing the European Community, with a view to adopting a Council Regulation on the European Regional Development Fund
14. 5. 1999 EN Official Journal of the European Communities C 134/1 I (Information) COUNCIL COMMON POSITION (EC) No 20/1999 adopted by the Council on 14 April 1999 with a view to adopting Council Regulation (EC) No …/1999 of … on the European Regional Development Fund (1999/C 134/01) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 130e thereof, Having regard Commission (1), to the proposal from the Having regard to the opinion of the Economic and Social Committee (2), Having regard to the opinion of the Committee of the Regions (3), Acting in accordance with the procedure laid down in Article 189c of the Treaty (4), (1) Whereas Article 130c of the Treaty provides that the European Regional Development Fund (ERDF) is intended to help redress the main regional imbalances in the Community; whereas the ERDF therefore contributes to reducing the (1) OJ C 176, 9. 6. 1998, p. 35 and OJ C 52, 23. 2. 1999, p. 12. (2) OJ C 407, 28. 12. 1998, p. 74. (3) OJ C 51, 22. 2. 1999, p. 1. (4) European Parliament opinion of 19 November 1998 (OJ C 379, 7. 12. 1998, p. 178), Council Common Position of 14 April 1999 and European Parliament Decision of … (not yet published in the Official Journal). gap between the levels of development of the to which the various regions and the extent including least-favoured regions and islands, rural areas, are lagging behind; (2) Whereas Article 2(2) the ERDF is of Regulation (EC) No …/1999 laying down general provisions on the Structural Funds (5) provides that the main task of to contribute to the attainment of Objectives 1 and 2, as referred to in Article 1, first subparagraph, points 1 and 2 (hereinafter referred to as Objectives 1 and 2’) of that Regulation; whereas Articles 20 and 21 of the same Regulation provide that the ERDF cross-border, is cooperation transnational under initiatives; whereas Articles 22 and 23 of the Regulation in question state that it is to support innovative measures at assistance and Community measures; to contribute and the Community to financing interregional technical level (3) Whereas the common provisions the Structural Funds are set out in Regulation (EC) No …/1999; whereas the type of measures which may be financed by the ERDF under Objectives 1 and 2, and innovative measures should be defined; the Community initiatives to (4) Whereas the contribution of the ERDF, in the context of task of promoting regional development, to the harmonious, balanced and sustainable development of economic activity, to a high degree of competitiveness, to a high level its (5) OJ L …. C 134/2 EN Official Journal of the European Communities 14. 5. 1999 of employment, to equality between women and men and to a high level of protection and improvement of should be defined; the environment (5) Whereas the ERDF should provide assistance within the framework of a comprehensive and integrated strategy for sustainable development and ensure synergy with assistance from the other Structural Funds; to the ERDF continues transnational promote that cross-border, and interregional cooperation, including in the regions located on the external frontiers of the Union within the meaning of the Treaty, the least-favoured islands and the most remote regions, in view of their special features and difficulties; whereas in the the harmonious, context of that cooperation, balanced and sustainable development of the whole of the Community territory adds value to action to promote economic and social cohesion; whereas the contribution of the ERDF to that development should be continued and increased; of local, regional culture and tourism where (6) Whereas, as part of its tasks, the ERDF should support the productive environment and the competitiveness of enterprises, especially small and medium-sized enterprises; local economic development and employment, including in the fields of these contribute to the creation of sustainable jobs; the research and technological development; development and trans-European networks including the provision of suitable access to the said networks in the sectors infrastructure, transport telecommunications and energy; the protection and improvement of the environment taking into account the principles of precaution and that preventive that should environmental damage should as a priority be rectified at source and that the polluter should pay and by fostering the clean and efficient utilisation of energy and the development of renewable energy sources, and equality between women and men in the field of employment; taken, action be of (7) Whereas the ERDF should play a particular role in favour of local economic development, in the context of life and developing the territory, especially by promoting territorial employment pacts and new sources of employment; improving the quality of (8) Whereas the ERDF should as part of its task support the rehabilitation of abandoned areas with a view to local, rural or urban economic development; investment favour of in (10) Whereas is appropriate to lay down the powers implementing the provisions and to set out transitional provisions; adoption of it for (11) Whereas Council Regulation (EEC) No 4254/88 of 19 December 1988 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards the European Regional Development Fund (1) should be repealed, HAS ADOPTED THIS REGULATION: Article 1 Tasks European No …/1999, Pursuant to Article 130c of the Treaty and Regulation (EC) Regional the Development Fund (ERDF) shall contribute towards the financing of assistance as defined in Article 9 of that Regulation to promote economic and social cohesion by correcting the main regional imbalances and participating in the development and conversion of regions. (9) Whereas measures of Community interest undertaken at the initiative of the Commission have an important role to play in achieving the general objectives of Community structural action referred to in Article 1 of Regulation (EC) No …/1999; whereas, to that end, in view of the value it adds at Community level, it is important To that end, the ERDF shall also contribute to promoting sustainable development and the creation of sustainable jobs. (1) OJ L 374, 31. 12. 1988, p. 15. Regulation as last amended by Regulation (EEC) No 2083/93 (OJ L 193, 31. 7. 1993, p. 34). 14. 5. 1999 EN Official Journal of the European Communities C 134/3 Article 2 Scope to in Article 28 of Regulation (EC) No …/1999, As part of its tasks as defined in Article 1, the 1. ERDF shall contribute towards the financing of: (iv) direct aid to investment as defined in Article 28(3) of Regulation (EC) No …/1999 where no aid scheme exists, (a) productive investment to create and safeguard sustainable jobs; (v) the provision of appropriate development, to infrastructure on a scale employment local and (b) investment in infrastructure: the economic structural (i) which, in regions covered by Objective 1, helps potential, to increase and development, creation or maintenance of sustainable jobs in those in including infrastructure contributing to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastructures; adjustment investment regions, (ii) which, in regions and areas covered by Objectives 1 and 2 or the Community initiative referred to in Article 20(1)(a) of Regulation (EC) No …/1999, concerns the diversification of economic sites and industrial areas suffering from decline, the renewal of depressed urban areas and the revitalisation of and improved access to rural areas and areas dependent on fisheries; instruments in infrastructure where modernisation or regeneration is a prerequisite for the creation or development of job-creating including infrastructure economic activities, links on which the development of such activities depends; (c) the development of endogenous potential by measures which encourage and support local development and employment initiatives and the activities of small and medium-sized enterprises, involving in particular: (i) assistance towards services for enterprises, in particular in the fields of management, market studies and research and services common to several enterprises, (ii) financing the transfer of technology, including in particular the collection and dissemination of information, common organisation between enterprises and research establishments and financing the implementation of innovation in enterprises, structures providing neighbourhood (vi) aid for services to create new jobs but excluding measures financed by the European Social Fund (ESF); (d) technical assistance measures as referred to in the second subparagraph of Article 2(4) of Regulation (EC) No …/1999. In the regions designated under Objective 1, the ERDF may contribute towards the financing of investment in education and health that is beneficial to the regions’ structural adjustment. In application of paragraph 1, 2. the financial contribution of the ERDF shall support, inter alia, the following; (a) the productive environment, competitiveness to increase sustainable investment by firms, especially the small and medium-sized enterprises, and to make regions more attractive, particularly by improving the standard of their infrastructure; in particular and (b) research and technological development with a introduction of new view to promoting the technologies and innovation and the strengthening of development capacities contributing to regional development; technological research and (c) the development of the information society; (iii)improvement of access by enterprises to finance and developing creating appropriate financing instruments, as referred loans, and by (d) the protection the environment, in particular taking account of the principles of precaution and preventive action in improvement and of C 134/4 EN Official Journal of the European Communities 14. 5. 1999 support of economic development, the clean and efficient utilisation of energy and the development of renewable energy sources; the whole of territory, the Community’s the European Spatial Development of including Perspective; (e) equality between women and men in the field of employment, principally through the establishment of firms and through infrastructure or services enabling the reconciliation of family and working life; (b) pilot projects to identify or test new regional and local development solutions with a view to their inclusion in assistance after demonstration of their feasibility; (f) transnational, interregional cooperation on sustainable regional and local development. cross-border and Article 3 Community initiative of that Regulation, 1. Pursuant to Article 20 of Regulation (EC) No …/1999, the ERDF shall, in accordance with Article the 21 implementation of for interregional cross-border, cooperation intended to encourage the harmonious, balanced and sustainable development of the whole of the Community’s territory ( Interreg’). the Community initiative and transnational contribute to 2. In accordance with Article 21(2) of Regulation (EC) No …/1999, the scope laid down in paragraph 1 of this Article shall be extended by the decision on the Funds’ contribution to the financing of measures eligible under Regulations (EC) No …/1999 (1), (EC) No …/1999 (2) and (EC) No …/1999 (3) with a view to implementing all in the Community initiative programme concerned. the measures set out (c) exchanges of experience relating to innovation with the aim of turning to account and transferring experience local development field. gained in the regional or 2. In accordance with Article 22(2) of Regulation (EC) No …/1999, the scope laid down in paragraph 1 of this Article shall be extended by the decision on the Fund’s contribution to the financing of measures eligible under Regulations (EC) No …/1999, (EC) No …/1999 and (EC) No …/1999 with a view to implementing all the measures in the pilot project concerned. Article 5 Implementing rules Any detailed implementing rules for this Regulation shall be adopted by the Commission in accordance with the procedure laid down in Article 48 of Regulation (EC) No …/1999. Article 6 Repeal Article 4 Innovative measures Regulation (EEC) No 4254/88 shall be repealed with effect from 1 January 2000. 1. In accordance with Article 22(1) of Regulation (EC) No …/1999, the ERDF may also contribute to financing: (a) studies initiated by the Commission to identify and problems and analyse view to the solutions, harmonious, balanced and sustainable development development particularly with a regional References construed as references to this Regulation. to the repealed Regulation shall be Article 7 Review clause (1) Council Regulation (EC) No …/1999 on the European Social Fund (OJ L …). (2) Council Regulation (EC) No …/1999 on support for rural development by the European Guidance and Gurantee Fund (EAGGF) (OJ L …). (3) Council Regulation (EC) No …/1999 of … laying down general provisions on the Structural Funds (OJ L …). On a proposal from the Commission, the Council shall review this Regulation by 31 December 2006. It shall act on this proposal in accordance with the procedure laid down in Article 130e of the Treaty. 14. 5. 1999 EN Official Journal of the European Communities C 134/5 Article 8 Transitional provisions Article 9 Entry into force The transitional provisions referred to in Article 52 of Regulation (EC) No …/1999 shall apply mutatis mutandis to this Regulation. This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at …. For the Council The President C 134/6 EN Official Journal of the European Communities 14. 5. 1999 STATEMENT OF THE COUNCIL’S REASONS I. INTRODUCTION 1. On 20 March 1998 the Commission submitted to the Council a proposal, based on for a Regulation on the European Regional the EC Treaty, Article 130c of Development Fund. The Economic and Social Committee and the Committee of the Regions delivered their opinions on 10 September 1998 and 18 November 1998 respectively. The European Parliament delivered its opinion, at first reading, on 19 November 1998. Further to the European Parliament’s opinion, amended proposal on 21 January 1999. the Commission submitted an 2. On 13 April 1999 the Council adopted its Common Position in accordance with Article 189c of the Treaty. II. OBJECTIVE The draft Regulation seeks to clarify the nature of the measures that can be financed from the European Regional Development Fund. III. ANALYSIS OF THE COMMON POSITION 1. General remarks The Council’s Common Position is in keeping with the rationale behind the whole of the reform of the Structural Funds. It is to be seen in the context of Regulation (EC) No …/1999 laying down general provisions on the Structural Funds and is confined to the specific rules of the ERDF, primarily with reference to its scope. In the context of its tasks, the ERDF will have to continue to take part in four types of financing: the financing of productive investment; the financing of infrastructure investments differentiated according to type of region; support for endogenous development; innovative measures and technical assistance measures. The Common Position gives examples of areas in which the Fund is to provide support: the productive environment; research and technological development; the development of the information society; the protection and improvement of the environment; equality between men and women in the field of employment; cross-border, transnational and interregional cooperation on regional development. Apart from a very small number of specific amendments, the Council’s Common Position follows the Commission’s amended proposal in its entirety. The Council thus accepted all the amendments arising from the European Parliament’s opinion that were incorporated in the Commission’s amended proposal, i. e. amendments 3, 5, 7, 19, 21, 23, 25, 26, 35 and 58 and, in part, amendments 4, 11, 13, 34, 53 and 39. 14. 5. 1999 EN Official Journal of the European Communities C 134/7 The Council partially accepted two European Parliament amendments (11 and 15) which had been rejected by the Commission. The Council did not accept amendments 9, 10, 28, 29, 32, 33 and 37, which had not been incorporated in the Commission’s amended proposal. Amendments 2, 8, 12, 14, 16, 17, 18, 20, 22, 24, 27, 30, 31 and 36 were not adopted either by the Commission or by the Council. The substance of these amendments is already covered by other or more general formulations in the text of the Common Position. 2. Analysis of the text Preamble The Council followed the Commission’s amended proposal almost entirely, which means it adopted, if not the letter, then at least the substance of the following European Parliament amendments: — in recital 1: the substance of the last part of amendments 58 and 11, — in recital 5 (new): amendment 5, slightly reworded; — in recital 6: the substance, in a different formulation, of amendments 4 (second part) and 30 (local economic development and employment) and amendments 3 and 23 (fields of culture and tourism and job creation), — in recital 7: the substance of amendments 13, 16 and 19 with the more general formulation new sources of employment’, — in recital 9: the first part of amendment 58, formulated as the whole of the Community territory’; amendments 53, 7 and 11 (Last part) in redrafted form. Article 1 (tasks) This text corresponds to the Commission’s amended proposal. Article 2 (scope) This Article corresponds almost entirely to the Commission’s amended proposal. The Council adopted amendment 11 as regards the creation and maintenance of sustainable jobs in the regions’ and amendment 21. The spirit of amendments 25 and 26 was incorporated in paragraph 1(b)(ii) by means of the formulation concerning infrastructure which (…) concerns the diversification of economic sites and industrial areas suffering from decline …’. The European Parliament’s amendment 39 is incorporated in the new version of paragraph 2(e). C 134/8 EN Official Journal of the European Communities 14. 5. 1999 The Council also adopted the following amendments not Commission’s amended proposal: included in the — the part of amendment 11 concerning local development infrastructure’; for reasons of consistency this was moved to Article 2(1)(c)(v), — the part of amendment 15 concerning cooperation between research institutes and enterprises’, reworded as common organisation between enterprises and research establishments’. Article 3 The Council followed the Commission’s amended proposal. Article 4 The Council followed the Commission’s amended proposal. It incorporated part of amendment 34 (the part which added and local’ to regional development’) and amendment 35. Article 5 The Council followed the Commission’s amended proposal. Articles 6, 7, 8 and 9 correspond to the Commission proposal