European
Communities
EUROPEAN
PARLIAMENT
Wbrking
Documents
1983-1984
18 ApriL 1983 DoCUMENT 1-104183
REPORT
drarn up on behatf
of
the
committee on Regional PoLicyand Regionat Ptanning
on integrated deveLopment operations
(ID0)
in
cOmmunity regionaL poLicyRapporteur: filr
T.
von der VRINGIt
By
letter
of
13 lray 1982 the Comittee on Planning requeetedauthorization
to
draw up aoperations (IDO)
in
Comunity regionalpolicy.
Regional PolieY and Regional.
report
on integrated develoP'nentAuthorization was given by the President
of
the EuropeanParlianent
in
hisletter of
16 June 1982.On 19 october 1982
the
con-ittee
appointedl{r
VON DER VRITG raPPorteur.At ita sitting
of, 22 January 1982 ttre European Parliamentreferred
to
theComittee on Regional
Policy
and Regional Planning the motionfor
a
reeolution by !1r CLUSKEI and others Pursuantto
Rule 47of
the Rulesof
Procedure(Doc.
I-953/g1). At
irs
meeringof
28April
L982,the
conmittee decided notto
draw upI
report
andto
attach thenotion
for
a reeolution
to
the Presentreport.
At
its sitting of
10 lfay 1982the
European Parliamentreferred
to
theCoruuittee on Regfonal
Policy
and Regional Planning the motionfor
a
resolutionby l.lr ALuIRAME qnd ot,hers pursuant
to
Rule 47of
the Rulesof
Procedure (Doc.L-|L3!SD.
At
iEs neetingof
23 June 1982the
comittee
decidednot
to
drawup
a report
andtp
attach
the motionfor
a resolution
to
the
present rePort.At its sitting of
5July
1982 the European Parliamentreferred
the motionfor
a resolution
byltr
oTDoNNELL and others pursuantto
RuIe 47of
the
Rulesof
Procedure (Doc. 1-389 182)to
the Cosurittee on RegionalPolicy
and Regionalplanning as the comrsittee responsible and
to
the Cornmittee on Youth, Culture,Education, InformaEion and Sport
for
anopinion.
At its
rueetingof
19 October 1982the
Counittee on RegionalPolicy
and Regional Planning decidednot
todraw up
a
report
andto
atEach the motionfor
a
resolution
to
the presentreport.
The Cormnittee on Youth,Culture,
Education, Information and Sportdecided
not
to deliver
an opinion'At
iEs
sitting of
5July
1982the
European Parliamentreferred
the mot,ionfor
a resolution
by Mr CECOVINI pursuantto
Rule47
of. the Rulesof
Procedure(Doc. L-43gl1D
to
rhe Comnittee on RegionalPolicy
and Regional Planning as the conuuittee resPonsible and,at its sitting of
13 December 1982,to
the Conurittee on Transportfor
anopinion.
At
iEe meetingof
19 October 1982 theCorunit,tee on Regiuonal
Policy
and Regional Planning decidednot
to
draw up. areport
andto
attach
the motionfor
a resolution
to
the PresentrePort.
On17 ll,arch 1983 ttre CoruniEtee on Transport adopted
the
opiniondrafted
by!1r GOUTHIER.
AtitssittingofTFebruarylg83theEuropeanParliamentreferredthe
motion
for
a
resolution
by Mrs IIIEOBALD-PAOLI Pursuentto
Rule 47of
the Rulesof
procedure (Doc. 1-1191/82)
to
the comnittee on RegionalPolicy
and Regional planning asthe
cormittee responsible andto
the counittee on TranePort andEhe Conunittee on the Environment, Public
ltealth
and Consurrer Protectionfor
opinions.
At its
meetingof
24 February 1983 ttre cornmittee on Regional Policyand Regional Planning decided
not to
draw uPa
rePort andto
attach the notionfor
a
resolution
Eo Ehe Presentf€port.
The Comrittee on Traneport and theconrnitEee on the Environment, Public Health and consumer Protection decided noE
to deliver
oPinions'The
comittee
considered thedraft
rePort27 128 January
,
24125 February and 17 I 18 Marchmotion
for
a
resolution
on 18 llarch 1983'at its
meetings of1983 and unanimouslY adoPted the
The
following
tookpart
in
the
vote:
Hr Costanzo,acting
chairrnan;l,lr von der
Vring, rapporteur;
l,[rs Boot,t{r
Berkhouwer (deputizingfor
ttrs
l{artin),
}1r Blaney (deputizingfor
}1r Gendebien)'
}1r Grif fiths'
ttr
I.
Friedrich,
Mrllarris,
Mr HutEonrlh
Kazazis,l{rs
Kellett-Bot'uan'ltr
Klinkenborg (deputizingfor
HrKarl
Schon), l'[r l'laher (deputizingfor
I,[r Cecovini), Mr Nikolaou, Mr OrDonnell (deputizing
for
l'!r Giurmarra)' Mr PotEering, MrJ.D. Taylor,
l'lr Travaglini,
l'lr
vandewiele (deputizingfor
tlr
Verroken) andl{r
Ziagas (deputizingfor
Mr Hune)'The opinion
of
the couoittee on Transport on the motionfor
a
resolution byttr
cEcovrNr (Doc. l'43d182)is
attached'The reporE lras submittqd oa 24 March 1983
'
wPo322E
OR.DE.
CONTENTS
TTIE IMEGRATION OF EUROPEAN POLICY
....O""'I"""""
Page
5
11
L2 14 20 24
32 35 36 38
40
I.
II.
III.
rv.
@:
COT.IUUNITY POLICY FOR REGIONAL IMEGRATION
INTEGRATED DEVELOPUEM OPERATIONS (IDO)
..
aaaaaa.aaa.a.a
coNcLUsroNS AND PRosPEcrs
...""""..'
""'
I
tlotion
for
a resolution
Doc. 1-953/81Ilotion
for
a resolurion
Doc. L-2L3182llotion
for
a resolution
Doc. L-389182llotion
for
a resolution
Doc.
L-439 182l.loEion
for
a
resolution
Doc. l^-Llgll82a a aa a a a a aa a a a a a t "
aaaaaaaaaaaaa"o"
a. a a a a a a a a a a a a a a "
Opinion
of
the CommitEee on Transport on the motionfor
a resolution
by !1r CECOVINI (Doc't+gg
182)" " "
..
" "
43A
The Comrictee on ltegional
Policy
and Regional Planning hereby subnitsto
the European Parliamentthe following
motionfor
a
resolution
together with explanatory staEement :I.IOTION FOR A RESOTUTION
on integrated developurent operations (fOO)
in
Comrunity regionalpolicy
TITE EUROPEAN PARLIA}IEM,
-
having regardto
Article
29of
the proposal amendingthe
Regulationof
the European Regional Developrnent Fund (COl{(81) 589final)'
-
having regardto
the motionfor
a resolution
tabled by Mr CLUSKEY andothers-concerning Corununity
action
in
favourof
Dublin (Doc. 1-953/81),-
having regardto
the motionfor
a resolution
tabled by !1r ALMIRAIiITE andothers on
the
integrated operation rFriuli-VeneziaGiuila-Triester
(Ooc. L-2L3182) ,-
having regardto
the motionfor
a resolution
tabled byl{r
OTDONNELL andothers on
the
integrated development prograrmefor
the Gaeltacht (Doc. L-389182),-
having regardto
the motionfor
a resolution
tabled by !1r CECOVIM on behalfof
theLiberal
Group ona
'Trieste-Friuli-Venezia
Giuila
integratedoperation'
(Doc.
L-439 /82),-
having regard Eo the motionfor
a resolution
tabled by Mrs TIIEOBALD-PAOLI ona
special Conununity progranrmefor
Toulon (Doc. 1-1191 182),-
having regardto
the report
of
the
Cornmittee on RegionalPolicy
and RegionalPlanning and the opinion
of
the Cormittee on Transport on the motionfor
aresoluEion by
ltr
CECOVINI ona
tTrieste-Friuli-Venezia
Giulia
integratedoperation'
(Doc. 1-104/83),(a)
having regardto
the
twocurrent
Conmunity integrateddevelopnent
operarions (IOO9)
in
NApLES and BELFAST,(b)
having regardto
the observaEions r.ade repeatedlyby the European Parliament since 1980 on budget
linee relating
to
integrated developnent
operations,
(c)
having regardto
the
contextin
whichall efforts
by
the
comrunity toachieve
integration
and coordinationin
regionalpolicy
must be Been,namely:
-
that
Ehe economicpolicies
of
the Memberstates
arestill far
renoved
from Comunity coordination and
are
in
many respects mutually incompatible,-
that
there
is
also
litt1e
coordinationof
comunity sectoral
policies,
-
that
bothcomunity
and nationarpoliciee
have an extremely unbalancedeffect
in
the various regions,-
that
the various regionaldisparities
whichare
increasinglyforrning a
parE
of
comnunity developmentillustrate
the
inadequate coordinationbetween
national
and Comnunitypolicies,
-
that
any genuineeolution
to
these problens requiresfirstly
conmunity
integration
of
national
economic andfinancial policies
and secondry
general recognition
of
regional requirementein
sectoralcorunrnity
pol ic ies,
(d)
recognizingthat
the
responsibility
for
solving
these problems cannot beborne
solely
by regionalpolicy
andthat
over-optirnistic
expectations shouldnot
be placedin
the
regional.policy
measuresto
achiene greaterregional eff
iciency
of
Comunitypolicies,
I'
welcomes and suppertsthe
proposalfron
the comrissionfor
integrateddevelopment operations
in
regionalpolicy;
wo322E
'l
i
2.
Regardsthis
proposal aboveall
asa
prajhatic
attemptto
pronote afavourable socio-economic developnent
in
a
linited
area cheracterized by aparticularly
serious development probLem by meansof
intensive
coordina-tion
of
action
by the Comuunity,national
government, regional and localauthorities
andeffective
coordinationof
the
ueeof
the
varioua Coumunityt inanc
ial
irret runents ;3,
Refersto
the neednot only
to
take accountof
the
socio-economic background when an IDOis
being geographically delineatedbut
aleo to ensurethat
the numberof
local
and regional decision-making bodies involvedis
not
sogreat
asto
hamperthe
operation;4,
Notesthat
this
represents an experiment which hasnot
yet
been completedand considers
it
necessaryfor
the
tine
beingto
retain
this
experimenEalnature
of
IDOs anda
considerable degreeof flexibility in
their
administ
ration;
5.
Regardsthe
provisionsof Article
29 of,the
proposal amending theregulation
of
the
Regional Fund as appropriatebut
would welcome theinclusion
of
someadditional
elementsin
the
further
courseof
thediscussion
of this
proposal;q.
Considersit
particularly
importantthat
the regional
policy
experiencegained frorn IDOs should be made
public
andexploited
throughouE theComrunity;
7,.
Notes alreadybut without
prejudiceto
subsequent evaluationof
theexperience gained,
that
Ehe special efforEs madein
IDOsto
ensurecoordination
are
likely to
increasethe
efficiency
of
the
Cormunityr sregional
policy
neasures ;8.
Recommendstherefore
thaE greater use be madeof
other
IDOs andthat
theee should receivespecial
financial
supporE alongthe
lines of ArticLe
29$)of
the proposed amenduentof
the regulation
of
the
Regional Fund;9.
Stresses thaEeffective
cooperation bet,weenall
the
bodies concerned-European Conmunity,
state,
region,
local authorities
- in
the planning andimplementation
of
an integrated packageof
regional development meesuresis
the most importantessential condition
for
an IDO receiving special support from the European Regional Fund andthat a
formal cooperationagreement
to this
effect
should bethe
justification for
an IDO;10. Believes
ther thie
cooperation canalso
be guaranteed!y
the llenber State concerned
in
the contextof
anational
IDO without anyspecial
etaff
cornnitment by
the
cormission;a
comunity
rDo,i.e.
special
staff-intensive coordination by the comiseion as
in
NApLES and BELFAST should only be used where severe eocio-economic obetacl.esto
developmentexist
which cannot be overcoue by other tueens;
11.
calls
onthe comiesion, irrespective
of
any
action
takenauthoriti€ar
to
expandthe
rangeof
experienceof
IIDs
byfurther
Comunity IDOs,particularly
in
by national
initiating
(a)
problen ereas where urban andnrral
problensare
interconnected,especially
in
the Mediterranean area,(b)
structurally
weak border areaa,(c)
areasparticularly hard-hit
byindustrial structural
crises;
12.
stressesthat
the most importantobjectives
of
an rDo are:(a)
irnproving coordinationof
comnunityfinancial
instnrments,(b)
irnproving cooperationat all
levels
betweenthe
national
institutions
involved
in
regional development,(c)
increasing theoverall benefit
derived fromindividual
projects,
(d)
expediring implenent,arion,(e)
nobilizing
a1l. indigenous developmentpotential,
(f)
improvingthe regional
investmentclinate
andstimulating
private developurent
initiatives
;13. Proposes Ehe
following
as the basic conditions whichspecial
IDOaid
from the Conununity and which shouldclosely
defined bythe
conmiesion on an ad hoc basisregional circumstances :
should be placed on
be
specified
and morein
accordance with(a)
thepositive
outcomeof a feasibility
study,
(b)
thepossibility of
making integrateduse
of
various inst ruments ,(c)
guaranteesfor the
coordinated deploymentof aII
the
financial
inetrunentsof
the Memberstate
concernedCormunity
relevant
and
its
regionaland
local
authoritiee,
(d)
recognitionof
a
special
priority for
rDos
in
rhe regionalpolicy
of Ehe t'lember State concerned,tdPo322E
(e)
incorporationof
IDOsinto
a
regionaf aevelopnent programne,(f)
assessment and recognitionof
indigenous developmentpotential
and ofthe
specific
requiremenEsof
environmental protection,(e)
provision
for
parEicipation bylocal social
grouPs,(h)
compilationof
a backgroundfile
meetingcertain
requirements and enabling implernentation and outcometo
be monitored by the Coumunity;14. !{elcomes the Comission proposal
to
give
a higherpriority
and greater support t,o IDOS as a majorcontribution
to
concenErating Cormrunity resourcesfor
regional
policy within
Ehe Member States;15.
Stressesthat
IDO doesnot
representa
new Comnunityfinancial
instrumentand
that
the appropriaEions under budget items 5410 and 5411for
IDOs aresirnply an
addition
to
Regional Fund resources;16.
Supports the requestfor
reserve appropriationsfor
IDOsin
Item 5411for
Corununity financing
of
specific
measures whichare not
covered by theexisting
frameworkof
Cournunityfinancial
instruments onthe
followingcondition6
to
ensuretheir
exceptional nature:(a)
the volumeof
appropriations under Item 5411 should berestricted
to Lto
27"of
t,hetotal
ERDFallocation,
(b)
the
specialprojects
supported from these funds must beessential
tothe
successof
IDOs and increaeethe
effectivenessof
other measures'(c) this
formof
Communityaid
shouldnot
accountfor
an unduly largepart
of overall
Conmunity financingof
an IDO;17. Proposes
that
the
powersto
make useof
Item 5411 should be regulated inEhe Regional Fund
regulation; the
adoptionof
a Councilregulation
in
eachcase would
contradict the
principle
of
Eheflexibility of
IDOs;18. Considers Ehe
following
basic requirementsfor
the baclgroundfile
assufficient
although they should bespecified
in detail
on an ad hoc basis by the Corrnission:(a) it
should containdetails
of all
operaEions, deliberaEions, Plennedmeasures and conmit,ments which have been laken
into
accountin
the progranmingof
an IDO (record),(b) it
shouldset
out
the
special conditions on which Cormrunityaid
isgranted,
l'lPo322E OR.DE.
(c) it
shouldget out the
fundingto
be provided by the bodies concernedand the Corununity instrumenEs,
(d) it
should containapecific
criteria
for
monitoring the outcone;19.
Stressesthat
IDO planning should be ona roll-over
basis andcalls
for
regular documentation
of
monitoring and progress which muet be madeavailable
to
the European Parliarrent;20. Considers, where appropriate,
that
Coununityfinancial
support ehould beprovided
in
the
forn
of'specialist
tenporery assistanceparticularly
with regardto
the investigation
and financingof
indigenous developrentpotential,
prograrme development and theprovision
of
rnarketing andtechnological expertise ;
2I.
Recounendsthe
Counissionto
beginto build
up such anexternal
regionalpolicy
service organizationwithout
at this
stage deciding onits
final
f orm;
22.
Drawsthe
attention
of
the
Commiesion and Councitin
particular
to
theproblems which
will
be created concerningthe relationship
of
Europeanregional
policy to
Europeanagricultural policy
if
the IDO6 neededin
rural
problen areasin
the llediterraneanare
launched,in
particular
thequestion
of
which formsof
agriculEural production can be encouraged in any given caee without damaging other regions andwithout
increaaingsurpluse s ;
23.
Considersit
inadvisableto
restrict
IDOsto
urban arees and leave supportfor
rural
areasto
agricultural
devetopment progremnes; urges ineteadamalgamation
of
the
two measures, rDo and rntegrated DevelopmentProgrammes (fPP);
24.
Regardsthe
irnplementationof
special
IDoein
the t{editerranean area also as a Promising Pragmatic approachto
the gradual reductionof
divergencea between regional andagricultural
policy;25.
InsErucEsits
Presidencto
forwardthis
resolution
to
the Cormriseion andEhe Council.
I.,Po322E
,
F'\
\
'l
EXPLANATORY STATEI{ENT
INTRODUCTION
1.
The fottowingcriticisms
are
reguLarty madeof
the
Lackof
coordination inthe CommunitY:
-
nationaI
economic poLiciesoften
run counterto
insteadof
compLementingeach other.
-
there
is
LittLe
coordination betueenthe
different
poLiciesof
theEuropean Gommunity which as
a resutt
arenot
effective
enough.-
the
Common AgriculturaL PoLicy pays scantattention
to
the
different
regionaL requi rements.
-
the
growing gap betweenrich
and poor regions, whichis
the
exactoppos'ite
of
whatthe
Community wasoriginatLy
intendedto
achieve,is
due
in
many hJaysto
the
Lackof
coordinationin
European poLicies.Z.
The ever-growing demandsthat
a[t
Community poLiciesfor
this
decade must be gearedto
soLvingthe
probLemof
unemploymentin
Europe, necessariLy'impLy a degree
of
coordination andintegration
from whichthe
Communityis
stiLL
far
removed.3.
tJith'inthe
Community, suchcriticisms
often
takethe
formof
proposingadministrative
reforms.
As thedeficiencies
in
Community deveLopment aregeneraLty reveaLed
by
regionaLoisparities,
discussions on reform focus onthe integration
of
regionalpoLicy.
This mayin
practice
be perfect[yjustified.
Butif
one [osessight
of
the
underLying causes, nameLyinsufficient
integration
and coordinationof
CommunitypoLicies,
one cana[L too
easiLy be misLedinto
overestimating and pLacingtoo
muchfaith
inregionaL poLicy measures.
in-4.
I.
THE INTEGRATION OF EUROPEAN POLICYThis
is
not
the
first
timethat
Europe has facedthe
probtem ofcoordinating
the
various economic and sociaL poLicy measures.Ever since
the
state
first
tried to
redressthe
imbatanceof
marketdeveLopments by means
of
auide
rangeof
different
measures, there hasbeen the problem
of
coordinating such measures. The needfor
rconvergencet
in
economic poLicy hasoften
been stressed.5.
The needfor
comptete,effective
coordination and harmonizationof
suchpoLicies by
the
state
is
quite evident'in
theory,
but
in
practice
createsd
numberof
probLems. The maindifficulties
are:-
Theprincipte
of
the
market economy meansthat
the
state
can onLyintervene
in
the
economic sphereif
and when actuaL probLemsarise.
Abewi Ldering
variety
of
state
measures has deveLoped asa resutt
andtheir
useat
regionaL LeveLis
simiLarLy confinedto
responding tospecific
probLems.In
some casesit is
atmost impossibLeto
integratethe
different poticies
evenat
the theoreticaL
Levet.-
RegionaL autonomy createsa further
obstacLeto
the
supraregionatcoordination
of
poticies,
but
even centratized bureaucracies havedifficutty
in
coordinatingtheir
activities. It
simpLyis
extra-ord'inariLydifficuLt to
coordinatethe
decisionsof
a
Large number of dec'i sion-maki ng bodies.-
This probLemis
exacerbated oythe
fact
that
any measures taken by thestate
to
compensatefor
differences
in
prosperity
uiLt
directty
orindirect[y redistribute
prosperity
andopportunities.
Thereis
aturaysgive
andtake.
Suchpo[icies
are therefore resisted
bythe
defenders ofthe status
quo uho areoften poLiticalLy
orgqnized.
Efforts
to
redressthe
baIanceoften
onLy succeed because the peopLe concernedreaIize
thatthe crises
produced by economicdisparities
anddifferences
inprosperity
uLtimateLy harm everyone.L/P0322E
OR. DE.
6.
ilr
-
FinaLly, a
major nindranceto
the
successfut coordinationof
poticies
'isour
Lackof
understanoingof
the
reaL economicinterre[ationships
andthe
effects
of
poLiticaL measures onthese.
This
is
particuLar[y
trueof
the
inevitable
tackof
certainty
surroundingthe
future.
Thereis
aLways
a
considerabLerisk of
poticies
beingmistaken.
ALthoughthis
risk
can be reducedby
intensive preparatorytrork,
uLtimateLyit
h,iLL aLways be present.Uith
their
different constitutions,
different traditions,
the
different
mentaLity
of
their
peopLes andthe differences
in
the poLiticaL
skiLts
oftheir
governmentsat
varioustimes, the
Member Statesvary
considerabLy inthe extent
to
rhich
they have succeededin
achievingthe
coordination andintegration
of
economic and sociaL deveLopments. Attemptsto
improvepoLicies can do
a great
deaL,but
at
the
same time any attempt to coordinatepoticy
must recognizethe
simpLefact
that
there
can be noperfect
systemof
integrated pol.icythat in
practice
efforts
towardspoLiticaL
coordination consistof
a.hostof
disparate measures based onthe hope
that
at
some datein
the
distant future
they wiLL come together. RationaL pragmationis
the
watchword.The foregoing remarks are based on the experience
of
the
nationaL states.The probLem
of
coordinationis
that
muchgreater
in
a
Community whereaLthough
the
markets have by and Large coaLescedr PotiticaLdecision-making processes are
stiLL
in
the
earLy daysof
the
integrationwhich rle aLL hope wiLL come about.
UntiL
the
Community hasoverriding
potiticaL authority'
any progresstowards a general
integration
of
poLiciesis
boundto
be very modest andpiecemeaL. The
criticism
of
the
Lackof
integration
'in Community poLiciesis
in
fact
a
criti
c'ismof
the
Lackof
poLiticaL
'integrationin
theCommunity
'itseLf.
The probLems are essentiaLLyneither
technicaL noradministrative.
Ourstarting point
must beto
recognizethis.
7.
8.
rI.
cgilm,NrTY PoLTCY FoR REGIoNAL TNTEGRATToN9. If
ue recognizethe
fundamentaL probLemsfacing integration
of
CommunitypoLicies,
then ule mustfirst
Lookfor
eLements vhich can be usedto'
further poticy coordination.
These etements are deveLoping as the faiLures and proolems dueto
the
Lackof
coordination become apparent.10. In
the
pastthe
Commissionin
particu[ar
served asthe
soundirg-boardfor
criticism
of
the
Lackof
effectiveness and coordinationin
CommunitypoLicies.
Time and againit
respondedto this
criticism
vith
pragmaticreform
ptans.
It is
thereforeparticu[arLy
va[uabte from thepoint
ofvieu
of
a pragmatic investigat'ionof
the
scopefor
future
deveLopment tostudy
the
speciaLefforts
made bythe
Commissionto
promoteintegration.
11.
No-one wouLd disputethe
needto
coordinate economic measuresbut
thepractical
pressurefor
coordinationin
the
Community both now andin
the past has tendedto
comeat
regionaL LeveL, where divergent marketdeveLopments have hacj
a
particuLarLy markedeffect
poLiticatty. It
is
preciseLy
the
excLusiveLy sectoraL natureof
the originaL
CommunitypoLicies which has ted
to
thepoLiticaL
probLemof
their
different
regionaLeffects.
12.
Becauseof
the overriding
importanceof
agricuLturat
poticy
in
Europe, the needfor
reg'ionaL coordinationof
Community po[ic'ies vasfirst
feLt
inthis
fieLd
with
its
differences
in
regionaL deveLopments. As hovever thecreation
of
regionat advantages andthe
eLiminationof
Less viabLe farms Has moreor
Lessthe
dectared aim, any regionaLintervention
oythe
EAGGFwhich uent beyond
aid
for
restructuring
wasin
the past
regarded as theexception.
ALthough agricuLture, whereoifferences
in
competition are toa
Large extent geograph'icaLLy determined,offers
a basis
for
a
regionalorientation
and regionaIdistinctions
in
poLicy,the
fundamentat EAGGFprincipte
of
controLLing the market by meansof
uliform
Community prices has been and remains an immediate obstacteto
any approach which makesdistinctions
betueendifferent
regions.t,lP0322E
OR. DE.
i
',
"'f;H,13.
If
today r,le expect he[pfor
]lediterraneanagricu[ture
primariLyto
takethe
formof
disproport'ionateLy targe increasesin
prices
and subsidiesfor
Mediterranean products,
this is
a
strifing
it[ustration
of
the
convergenceand coorclination probLem
facing the
Community. Because the Guarantee Sectionof
the
EAGGF accountsfor
65.5Xof
the
Community budget comparedwith
1 E.5/.tor
the
Regiona[ Fund, Sociat Fund and Guidance Sectionof
theEAGGF and under
the
present arrangementsit is
impossibteto
subjectthis
guarantee expenditure
to
poLicy coordinationto
batanceits
regionaLeffect s.
14.
It is
hardLysurprising,
therefore,
that
LittLe
use has been madeof
the ideaput
forwardin
the
very earLy daysof
regionaL ptanningof
Community agricuLturaLpoLicy.
Noris
this
contradicted bythe
ideaof
integratea deveLopment programmes (IDP) trhich have emerged'in recent ye€rs aspart
oftne
CAP.0nty
in
particutarLy
poor areas where extreme regionaL features meanthat
the
conventionatagricutturaL
structuraLaids
can achievenothing
is it
proposedthat
a
specific
economic deveLopmentis
to
oe promoted aspart
of
a
smaLL-scaLe integrated deveLopment programme with systematic account being takenof
the
existing
devetopment potentiaL andcoordinated depLoyment
of
aLL typesof
regionat,
nationaL and Communityaid.
15.
True, areasother
than agricuLtureare
to
be incLudedin
IDP,but there
isno
trans-sectoraI integration
in
the
reaL sense. AgricuLture cLearty formsthe
focaLpoint
of
the
programmes evenfor
the
suppLementarynon-agricuLturaL measures.
This
is
not
a necessary consequenceof
thegeneraL concept Dut demonstrates
the
sectoraLrigidity
andthe
noticeabLe tackof
interest
in
regional. poLicy aspectsof
European agricutturaL poLicy whicn onLy makes useof
IDP, an instrumentof
integration,
ineme rgenc i es.
16.
The marginaL roLeof
regionat poLicyin
the
EAGGFis
cLearLy shown by thefact
that
the
proport'ionof
the EAGGF budget accountedfor
by agricutturaLstructuraL
poLicy,
which b,as 50% between 1964 and 1972 has now faLLen to16.
4.4'1.
And onLy 0.3Xof
agri cuLturaLstructurat
fundingin
19E5,i.e.
2 m ECU, has been made
avaitable
for
the
existing
integrated development programmesin
Lozere,the
t{esternIstes
of
ScotLand and South-EastBe tgi um.
17. tne
EuropeanagriculturaI
sector hashitherto
kept aLoof fromatL
attemptsat
regionaL poLicyintegration.
The questionsin
future
uitt,
however, bewhether
a
Large sectionof
MediterraneanagricuIture,
e.g.
in
SouthernItaLy
and Northern Greece, doesnot
representjust
such an textreme caset,whether
that
which appearsto
bethe
exceptionin
the
North under theCommon AgricuLtural
Policy
is
not the
normin
the
South, and whether any regionaL poLicy which excLudes agricuLture can ever beeffective
in
thesereg i ons.
In the
fieLd
of
industry,
regionaLdisparities
in
Community deveLopment wereinitiatLy
tackLedrrith
sociaL measures. Sincethe
introduction
ofthe
European SociaL Fundin
1971, Europeansociat
poLicy has focussed oncertain
probLem regions and, sincethe
creationof
the
RegionaL Fund in1975, deveLopment areas
within
these.
The CounciLis
noul concentratingmore and more Socia[ Fund resources on those areas uhich
are
to
beassigned
priority
underthe
amended RegionaI FundreguLation.
The Sociat Fund, however, addsto
andreinforces
thestrongty sectorat
nature ofEuropean
po[icy
inasmuch asit
confinesitseLf
to
atteviating
its
negat.iveeffects
at
regiona[leveL.
It is
not
particuLarLy gearedto
integration as suchbut
where regionat deveLopment measures have been integratedinto
programmes
the inclusion
of
the
SociaL Funduith
its
coordinatingcomponent
is
a
matterof
course.19.
The principLeof
poLicy coordination receivedofficiat
backingin
theCommunity
in
1975with
the introduction
of
the
European RegionaL DeveLopment Fund. Asthe
otherindividuaL
Community poLicies remained essentiaLLydiscrete,
regionaL poLicy uas endowedwith
the
paradoxicaI natureof
a
separatepoticy
in its
ownright
but
onedirected
against the om'issionsin
Community integration.t.,P0322E
OR. DE.
v
JI
20.
The Fund reguLation attached speciaL impor fromthe
outset.
ArticLe
6
reads:e
to
coordinated Programmesz?.
11.
Investments maybenefit
fromthe
Fundts assistanceon[y
if
theyfaLt within
the
frameworkof
a
regionaI devetopment programme, theimplementation
of
whichis
LikeLyto
contribute
to
the correction
ofthe
main regionaL imbaLanceswithin
the
Community"'
4.
The programmes shaLLindicate the objectives
andthe
means fordevetoPing
the
region..'r
A
great
deatof
faith
was ptacedin
these regionat deveLopmentprogrammes. tdhiLe
it is
true that
theyretain
the
reaction aspect ofregionaL poLicy inasmuch as they onLy reLate
to
specific
EuropeandeveLopment areas thus covering
the
Communitywith
a
patchworkof
probLem regions and deveLopment programmes,their
mostsignificant
feature
is
thatthey do make
expticit
regionaL deveLopment goaLs'such goaLs can achieve
the
integration
of
aLL regionaL,nationa[
and Community measuresin
the
area concerned. Thereis
however no controL'even by such regionaL deveLopment pnogrammes,
of
the
repercussions on thedevetopment areas
of
the more generaL economic deveLopment both inindividuaI
sectors andin
prosperouS regions. UnLesstnere
is
reg'ionaLcoordination
of
sectoraI communitypoLicies, there
is
no appreciation oftheir
regionaLeffects
and regionaL poLicy hasto
accept as given thedeveLopments t.lhich take pLace year by year
at
regionaL LeveL'The fundamentaL Lack
of
coordinationin
other
Community poLicies asregards
their
regionaLeffects
determinesthe
speciaI natureof
regionaLpoLicy.
There'is
therefore nopoint
in
measuringthe
Successof
regionaLpoLicy against the
yardstick
of
such broad formuLationsof
coordination andintegration.
Noris it fair
to
reproachthe
Commissionrith
faiLingto
coordinatethe
depLoymentof
community poLicy instrumentsin
terms oftheir
regionaLeffects.
The divergent regionaL deveLopmentof
theCommunity
is
not
the
end resuLtof
an inadequate regionaL poLicybut
its
basis and
starting-point.
?3.
t
t anc
21.
24. FinatLy
there
is
the
questionof
coordinatingregio:aI
and national regionaLpoticies
yith
community regionaLpoticy.
The regionaI deveLopment programmes representthe
utmostthat
the
Community cancurrentLy do
in this
respect.
Theyoffer
guideLinesfor
regional poticymeasures. But
the size
aLoneof
the
regionsin
the
programme and the macro-economic natureof
the
regionaL deveLopment programmesrute out
anycontribution
to
coordinationin
termsof
concrete devetopment measuresover and above
the
formu[ationof
regional poLicyobjectives'
Andits
guidetines are pure[y recommendations. They are onty binoingin
caseswhere funds are provided by
the
ERDFor
EIB'As Long as there
are
rich
and poor countries andas
Long asthis
factinfluences poticy-making dec'isions
in
the
Community,the
effect
of European regionat poLicy on nationaL and regionaLpoticies
wiLL inpractice
depend onthe
LeveLof
poverty and needfor
supportin
individuaLregions and
states.
As [ong as mostfinanciat
and economic policydecisions
are
takenat
nationaL Levet,the
CommissionriLL
be exceedingits
authority
if it
tries
to'impose Communitycriteria
onthe
regionaL poLicyof
the
more prosperouscountries.
The most importantfunction
ofthe
regionaL development programmesat
present,therefore,
is
to
preventcLashes
in
the
individuaL deveLopment areas betueen regionaL,nationaI
andCommunity regionaL poLi cies.
The
price
whichthe
ERDF paysfor
the
generat Lackof
integration
ineconomic
pot'icy
iS the
reLativeLy non-binding natureof its
regionatdeveLopment programmes. Contrary
to
the
hopes expressed whenthe
regionaL deveLopment programmes Here 'introduced, they by no means provide optimaLcoordination
of
pubtic
financing.
It is
therefore hardly surprising
thateven when
the
networkof
European devetopment programmes h'as comptete thecritic.ism
of
tackof
coordination andinefficiency
of
regionaL poticymeasures
in
noray
abated.It
Hasat this
point
in
1978,that
the
Commission formuLatedthe
idea of integrated development operations (IDO),
and they must be vietred and assessedwithin
this
context.
Anyinterpretation
of
these measures whichignores
their
origins
and deveLopment must Leadto
misunderstandings.25.
26.
27.
h,P0322.E
OR. DE.
82.9E7ltin-l ",. "
'
28.
ThiS progra{nmeis
a
first
Step.
It is
a
responseto
what, under thepresent circumstances,
is
anintractao[e prootem.
It
presupposesthat
any systematicintegration
and coordinationof
Community poLicies'is stiLL
aLong way
off.
Andit
is,oneray
of
achieving some progress towardscommunity
integration.
The questionsit
raises
are.
what canit
achieve?
Howfar can'it
takeus?
And how canit
usefuL[y be furtherdeve toped?
?9.
In this
respectit
was both LogicaL and typicaLthat in
1978 thecommissioner responsibLe
for
regionaLaffairs,
Mr GIoLITTI, shouLd beentrusted by
the
Commissionwith
the
coordinationof
the
Communityrsfinanciat instruments.
The same appliesto
the creation
of
the task
force which was Set upin
the
same yearto
coordinate StructuraL poLicyfinanciat
instrumentsat
the administrative
LeveIin
the
Commission' },lithout any speciaL powers-
and what specia[ pouers couLdit
have giventhe
Legatsituation?
-
th'is
was intendedto
encourage ona
voluntary basis an agreement bethleenthe
Directorates-GeneraL responsib[ein
theComm.ission and between
the
Commission andthe
European Investment Bank(EIB). In fact
the
various community poLiciesare
sofar
from oeingintegrated
that
their
administrators haveto
be askedto
work together!50.
Integrated devetopment programmesin
the
agricuLturaL sector andinteorated oeve[opment operations
in
the
regionaLsector
are currentLy thet1n1o most important regionaL coordination programmes
of
the
Europeancommunity. They accept
as
fact,
the individuat
community 'instruments andthe.ir
regionaLeffects
andtheir
soLe a'im,but
one whichis
pursuedv'igorously,
is to
coordinatethe
depLoymentof
nationaL and Comrnunityaid.
The useof
tnese th,o systemsis
confinedto
a
few part'icuLartyd.ifficuLt
regions and represents therefore anexception.
The question iswhether
it
can serve as an exampLefor
other
areasof
regionaL poLicy'31.
Asfar
asthe'integrated
deveLopment programmes which faLL mainLy urithinthe
Common AgricuLturaL PoLicy are concerned,this
quest'ionarises
in
thecontext
of
Med.iterranean agricuLture and has raisedthe
issueof
a
generaLreform
of
the
cAP.
This report
concentrates onthe
quest'ionof
whatconcLusions are
to
be drawnfor
the
further
deveLopmentof
European regionaL poLicy fromthe
integrated deveLopment operations.lffi.
i
'i
'f
irl, nin-III.
INTEGRATED DEVELOPI{ENT OPERATIONS (IDO)32.
The 'integrated developnent operations (IDO)are a
particutar[y
intensivemethod
for
integrated programmingof
regionaIpolicy
measuresin
smaILer sub-regions aspart
of
a
comprehensive regionat deveLopment programme.UnL'ike
the'indicative,
macro-economicorientation
function
of
regionaLdeveLopment programmes these represent programmes which are binding on aLL
those invoLved
at
Community,state,
regionaL and Loca[ LeveL, and rlhich form, asit
were,a
microsectionof
a
regionaI devetopment programme.J3.
No LegaLor
technical
definition
of this
term hasyet
emerged.It
uasformuLated
in
Commission documents,in
pubLic discussions,not
Least inthe
Economic and Sociat Committee, andin
the practicaLactivities
of
thetwo IDOs which have since been Launched: Naptes and
BeLfast.
TheCommission has nou submitted
a
draft
legaLdefinition in
ArticLe
29of its
proposaL
for
an amendmentof
the
Regional Fundregutation
(C0!l(81) 569finaL).
Thestriking
featureof this
formuLationis its
indeterminate nature whichis
in
accordance bothuith
the earLier
experimentaL nature of IDO and aLsothe
principLeof
pragmatic adlustmentsto
[ocatc i rc umst anc es.
34.
The proposeoArticte
29 reads as foLLous:'
(1)
In
the grantingof
Fund assistance, investments and measures referredto in
TitLes
III
and/orIV
which formpart
of
an integrateddeveLopment operation may De accordeo
priority
treatment and apreferentiaI
rate.(2)
An rintegrated development operationr comprisesa
coorciinated packageof
pubLic andprivate
measures and investments which have the foLLowing characteri sti cs:(a)
Theyre[ate
to
a
Limited geographica[ areasuffering
fromparticutarty
serious probLems associatedin
particuLar withunder-devetopment
or
with
industriaL
or
urban decLine and LikeLy'
to
affect
the
regionin
question;hrPU522E
OR. DE.
PE 82.9E7 t t in
-li
-20-(b)
The Community tnroughthe
combined useof
various structuraL,financiaI
instruments, andthe nationaI
and locaLauthorities
inl{ember States
contribute
in
close associationto
their
imptementat ion.
(3)
The f'lember States concerned shaLL ensurethe
concerted use of Community and nationaLfinanciat
resourcesin
cLose coordinationbetween
the
individuaL pubLicauthorities
taking
part
in
the impLementationof
the
integrated operation.(4)
The Commissiontoo
shaLL ensurethe
concerted useof
the
variousCommunity
structuraL financiaL
instruments(5)
The Fund'scontribution
to
investments and measuresthat
formpart
ofthe operations
referreo
to in
this Article
may be increased by 10%points but
shatLnot
exceed 8O7lof
expenditure, accordingto
theArticte
31. I35.
StrictLy
speaking an IDOis
the
pLanning and imptementationof
a
coherentrange
of
projects
in
a relativety
smaLIarea.
UnLikeother
regionatmeasures by
the
Commun'ity, incLudingthe
IDPof
the
EAGGF, the Commission's invoLvementin
these measures doesnot
presuppose theexistence
of
corresponding regionaLpLanning.
Indeed one main idea of these programmesis
to
dncourage region-aL ptanningto begin.
Thestarting-point
for
an IDOis
a particuLarLyintransigent
regionat deveLopmentprobtem. Their
pLanningactivities start
from square one.36.
The Community'scriteria for
seLecting such regions are extremeLy vague.ProposaLs can be made by regional governmentsi
but
the
initiative
canequaLty weLL come from
the
Comm'ission. They aLuays reLateto
a
regionwith
extreme socio-economic probLems which, becauseof
speciat
LocaLcircumstances, cannot be overcome
with
conventionaI regionaI poticy measures.37. The
first
stepin
an rDOis
to
bring
togetherthe
bodies invoLved, theCommunity,
the
state,
the region,
the
Locatauthority,
andto
agree on a formof
regionatpoIicy
cooperatioh adaptednationat
tegattraditions.
The regionaL
action
programmesfor
NapLes andBetfast
would probdb'Ly neverhave come about
nithout
coordinating work bytiie
Commission.The next
step
is
to
anaLysethe
particular
obstacLesto
development and toinvestigate the
devetopmentpotentiat
of
the
regionitseLf.
TheCommission has the necessary resources under Item 5410
of
the
Communitybudget.
Thishigh[y
empiricaL approach requiresintensive
cooperationuith
Locatfirms,
trade
un'ions, and,via
the
mass media,uith
the
pubLic.The aim
is
aLsoto
providea
pragmatic experimentatbasis
for
theconcentrated deployment
of
aLL typesof
Communityaid:
ERDF, Socia[ Fund,EAGGF, Guidance Section, NCI, and subsidized
interest
rates
fromthe
EMS,ECSC and
EIB.
Tnusthe
scopefor
involving
several Community financiaL instrumentsis
animpticit criterion
for
se[ecting an rDUregion.
Thecontributions
from these Community funds are combinedyith
aLI
theregionaL poLicy measures
of
the
variousnationat
bodiesto
form acoherent, integrated
actjon
programme.39.
40.
Thisjoint
ptanning workis
summarizedin
the
backgroundfiLe
of
an IDQ, adocument ulhich contains among
other things the
foItoring:
the pubtic
andprivate
measures proposedspecifying
costs and times cneduLesl
the
inter-retationships
between these measures;concrete
objectives
and monitoringcriteria;
the financiaL
contnibutionsof
the
parties
invoLved.As
far
asthe
pubLic bodiesare
concernedthis
constitutes
a bindingagreement even though
its
LegaL form may vary.h.lP0522E
OR. DE.
41.
EssentiaLLy IDO serveto
increasethe
effectivenessof
the
Communityfinanciat
resources usedfor
regionaLpolicy.
TheyfalL
underthe
ERDF,and do
not therefore
represent any new Communityinstrument.
Atthoughthey have been given tbro new budget headings, one
is
for
additionaLfinancing
of
preparatorystudies
(Item 5410), andthe
seconda
reservefor
suosid'izing those measures uhich cannot receive funds from
existing
Community instruments (Item 5411>.
42.
The main oojectivesof
an IDO are asfottovs:
-
improving coordinationof
Community financing;-
improving cooperationat
att
LeveIs betreenthe
nationaLinstitutions
invoLved
in
regionaI deveLopment;-
increasing the overaLLbenefit
derived from individuaLprojectsi
-
expediting imptementation;-
mobiLizing aLL indigenous development potentiaL;-
improvingthe
regionaL investment cLimate and stimuLating privatedeveLopment i ni
tiat
ives.43.
The European ParLiament hasstrorgty
backedthis
concept overthe
Last feuyears, above aLL by aLLocating additionaL resources
to
ltems 5410 and5411.
These budget headings have deveLoped as foLtows since 1980:Payment appropriations
in
m ECU1980 1981 198?
19835410
Preparatory studiesfor
IDO
pm
pm
?
25411
IDO
-
pm
16
16 (1)(1)
entered 'in Chapter 10044.
The Counoil has sofar
refusedto
adopta
regulatronfor
an IDO inBetfast,
uhich inctudes amongother things
aid
for
llpy,tjnS. Iest
Gernanyin
particuLar
rejects
Comrrunityfinancing
for
regionaI housingconstruction because
this
threatensto
expandthe
areaof
invotvereotfor
Community
aid
to
such an extentthat
it is
feared th?reroutd
no longer beany Link between regionat poLicy and productive devetopment aims.
IV.
CONCLUSIONS AND PROSPECTS45.
Asthe
ID0sin
NapLes and BeLfastonly
beganin
1979 and 1980respectiveLy,
it
i$
stil,L
too
soonto
report
onthe
experience gained andthe
outcome(1).
There'is
nevertheLess no doubtthat
such an intensive formof
regionatpoticy
programming shouLd improvethe
regionaL poticycost-benefit
reLationship andthat
coordinationof this
kind
by theCommission
in
someof
the
Communityrsother
prob[em regions coutd assisttheir
deveLopmentgreatly.
46.
The Community shoutd therefore wetcomein
principte the
IDO proposaLs andsupport
these.
It is
hoyever aLso importantat
the
present timeto
be onguard against appLying
the
concepttoo rigidLy
or
to
the
exc[usionof
aLLe [se.
IDOs are no more than
a
methodfor
improvingthe
effectivenessof
regionat poLicy pLanningin
a
smaLtarea.
This
is
a particuLarty
appropriatemethod
for
taking
accountof
indigenous deveLopmentpotentiat
andat
thesame time ansrers
the
needfor
a
formof
regionatpolicy
the
financing which m'inim'izesrisks
of
red-tapeineffectuatity.
But
this
method of.programm'ing doesnot
provide any soLutionto
the Community's fundamentat prooLemof
coordination.
It
changes nothing asregards
the faiLure
of
Community andnationaI
sectorat poLiciesto
takeaccount
of
regionaL matters atthoughit
does highLight these probtens47.
(1)
Foi
conC[uEionsrelating
Community
intervention
inearthquake-st
ri
cken areasto
tne
NapLes IDO seethe
TRAVAGLINIreport
onthe
Naptes metropotitan area and theof
Campania and BasiLicata (PE 8?.662tt.,P0322E
OR. DE.
49.
50.
in
the
areas concerned.Its
coordinatingeffects
are aLsorestricted
to
asmatL subsection
of
a
region as definedfor
the
regionat devetopment programmes. OnLyif
ID0s uere used over anentire
area wouLdit
be possibteto
remedythe
Lackof
coordination betueen subregions andregions.
Andfor
the
time oeingthis is
impossib[e.
I,loreover thepragmatic approach
of
the
IDOs can ontyexploit
such wiLLingness tocoglqj4gle
poticies
asis
atready presentin
a
dormant state.The IDOs currentLy
in
progress and ptannedfor
the
nearfuture
areexperimentaL. They
uliil. buitd
upa
reserveof
experience and insightswhich couLd prove usefuL
for
the generaIorientation
of
Community regionaLpoticy.
How canthis
experience be used?One speciaL
feature
of
the
present concept needsto
be takeninto
accountif
oneis
considerirgthe further
deveLopment and more extensive use ofIDQs. This
is
the
intensivestaff
commitment bythe
Commission needed toovercome LocaL resistance
to
regionaI programmingthe
roots
of
vhich areusuatLy poL'iticaL and
socioLogica[.
Notonly
the
timited
g!3ll_ggryjjl
of
the
Commission-
twoor
three permanent Commission representatives perID0-butevenmoresothe@makeitctearthatthis
use
of
IDO must rema'in confinedto
a
feu
extreme cases.51.0n
theother
handthe
useof
the
IDo method tditL normaLLy be possibLe evenwithout
aid
for
coordination fromthe
Commission.In
the
caseof
pureLynationaL IDOs,
the
Commission could respondto
the
useof
the
IDO procedure by grantingthe
aid
it
proposesin
ArticLe
29of
the
FundreguLation and ensure
the
coordinated useof
Community financebut
for
rest
confineitseLf
to
monitoring.52.
The recommendationtherefore
is
for
twodifferent
typesof
ID0:-
in
exceptionaL casesreqtJirirg
coordinatingstaff
fromthe
Commission, Community IDOs can be implementedif
the government concerned wishes;-
in
other
cases nationaLauthorities
cancarry out
nationaL ID0s inconsu[tation
with
the
Commissionif
they providethe
coordinationbetween
aLt the
bodies invotved.The
initiative
for
both typesof
IDO can,of
course, come from theCommi ssion.
the