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(Preparatory Acts) 
Amended proposal for a Council Regulation (EC) on the European Regional DevelopmentFund
()(1999/C 52/10)
COM(1999) 18 final — 98/0114(SYN) (Submitted by the Commission pursuant to Article 189a(2) of the EC Treaty on 20 January 1999) 
Having regard to the Treaty establishing the EuropeanCommunity, and in particular Article 130e thereof,Having regard to the proposal from the Commission,Having regard to the opinion of the Economic andSocial Committee,Having regard to the opinion of the Committee of theRegions,Acting in accordance with the procedure laid down inArticle 189c in cooperation with the EuropeanParliament,(1)Whereas, under Article 130c of the Treaty, theEuropean Regional Development Fund (ERDF) isintended to help redress the main regionalimbalances in the Community; whereas the ERDFtherefore contributes to reducing the gap betweenthe levels of development of the various regions andthe extent to which the least-favoured regions andislands, including rural areas, are lagging behind;(2)Wheras Article 2(2) of Council Regulation (EC)No .../.. laying down general provisions on theStructural Funds states, that the main task of theERDF is to contribute to the attainment of objectives 1 and 2, as referred to in Article 1 of thatRegulation; whereas Articles 19 and 20 of that
()OJ C 176, 9.6.1998, p. 35.
Regulation provide that the ERDF is to contributeto financing transnational, cross-border and inter-regional cooperation under the Community initiatives; whereas Articles 21 and 22 state that it isto support innovative measures at Community leveland technical assistance measures;(3)Whereas the provisions common to the StructuralFunds are set out in Regulation (EC) No .../..;whereas the type of measures, which may befinanced by the ERDF under objectives 1 and 2, theCommunity inititatives and innovative measuresshould be defined;(4)Whereas the contribution of the ERDF, in pursuitof its task of promoting regional development, tothe harmonious, balanced and sustainable devel-opment of economic activity, to a high degree of competitiveness, to a high level of employment, toequality between men and women, and to a highlevel of protection and improvement of theenvironment should be defined;(4a)Whereas the ERDF should provide assistancewithin the framework of a comprehensive andintegrated strategy for sustainable developmentand ensure synergy with assistance from the otherStructural Funds;(5)Whereas, as part of its tasks, the ERDF shouldsupport the productive environment and thecompetitiveness of enterprises, especially in smalland medium-sized enterprises, local economicdevelopment and employment, including in thefields of culture and tourism where these contributeto employment creation, research and technologicaldevelopment, the development of and the provisionof suitable access to both regional and trans-European networks in the transport infrastructure,C 52/12 23.2.1999Official Journal of the European Communities
telecommunications and energy sectors, theprotection and improvement of the environment onthe principle, that preventive action should betaken, that environmental damage should as apriority be rectified at source and that the pollutershould pay, and by fostering the clean, efficientutilisation of energy and the development of renewable energy sources, and equality betweenmen and women in the field of employment;(6)Whereas the ERDF should play a particular role infavour of local economic development, in thecontext of raising the quality of life and developingthe territory, especially by promoting territorialemployment pacts and new sources of employment;(7)Whereas measures of Community interestundertaken at the initiative of the Commission havean important role to play in achieving the generalobjectives of Community structural action referredto in Article 1 of Regulation (EC) No .../98;whereas, to that end, in view of the value it adds atCommunity level, the ERDF should continue topromote cross-border, transnational and inter-regional cooperation, including in the regionslocated on the external frontiers of the Union, theleast-favoured islands and the most remote regions,in view of their special features and difficulties;whereas, in the context of that cooperation, theharmonious, balanced and sustainable developmentof the whole of the Community territory adds valueto work to promote economic and social cohesion;whereas the contribution of the ERDF to thatdevelopment should be continued and increased;(8)Whereas the ERDF also contributes to support forinnovative measures and technical assistance inaccordance with Articles 21 and 22 of Regulation(CE) No .../98;(9)Whereas it is appropriate to lay down the powersfor the adoption of the implementing provisionsand to set out transitional provisions;(10)Whereas it is necessary to repeal Council Regu-lation (EEC) No 4254/88 of 19 December 1988laying down provisions for implementing Regu-lation (EEC) No 2052/88 as regards the EuropeanRegional Development Fund(), as last amended by Regulation (EEC) No 2083/93(),
()OJ L 374, 31.12.1988, p. 15.()OJ L 193, 31.7.1993, p. 34.HAS ADOPTED THIS REGULATION:
Article 1
Under Article 130c of the Treaty and Regulation (EC)No .../.., the European Regional Development Fund(ERDF) shall contribute towards the financing of assistance as defined in Article 9(1) of that Regulation topromote economic and social cohesion by correcting themain regional imbalances and participating in the devel-opment and conversion of regions.To that end, the ERDF shall also contribute topromoting sustainable development and the creation of permanent jobs.
Article 2 
1.As part of its tasks, as defined in Article 1, theERDF shall contribute towards the financing of:(a)productive investment to create and safeguardpermanent jobs;(b) investment in infrastructure:(i)which, in regions designated under objective 1,helps to increase the economic potential, devel-opment, structural adjustment and creation ormaintenance of permanent jobs in those regions,including investment contributing to the estab-lishment and development of trans-Europeannetworks in the areas of transport, telecommuni-cations and energy infrastructures;(ii) which, in regions and areas designated underobjectives 1 and 2 the Community initiative forcooperation as referred to in Article 19(1)(a) of the Regulation laying down general provisionson the Structural Funds, concerns the diversifi-cation of economic sites and areas suffering fromindustrial decline, the renewal of depressedurban areas, and to the revitalisation of andimproved access to rural areas and areasdependent on fisheries; areas whose modern-isation or regeneration is a prerequisite for thecreation or development of job-creatingeconomic activities, including communicationsinfrastructure and other links on which thedevelopment of these activities is dependent;23.2.1999 C 52/13Official Journal of the European Communities
(c)the development of endogenous potential by measures which encourage and support local devel-opment and employment initiatives and the activitiesof small and medium-sized enterprises, involving inparticular:(i)assistance towards services for enterprises, inparticular in the fields of management, marketstudies and research, and services common toseveral enterprises,(ii) financing the transfer of technology, includingin particular the collection and dissemination of information and financing innovation in enter-prises,(iii) improvement of access for enterprises tofinancial means and loans, by creating anddeveloping appropriate financing instruments, asreferred to in Article 27 of the General Regu-lation,(iv)direct aid to investment as defined in Article27(3) of the (general) Regulation where no aidscheme exists,(v)the provision of small-scale infrastructure,(vi)aid for structures providing neighbourhoodservices to create new jobs but excludingmeasures financed by the ESF;(d)technical assistance measures as referred to in thesecond subparagraph of Article 2(4) of Regulation(EC) No .../..In the regions designated under objective 1, the ERDFmay contribute towards the financing of investment ineducation and health that is beneficial to the regions’structural adjustment.2.In accordance with paragraph 1, the financialcontribution of the ERDF shall support areas such as forexample:(a)the productive environment, in particular to increasecompetitiveness and 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;(b) research and technological development with a viewto promoting the introduction of new technologiesand innovation, and strengthening research and tech-nological development capacities contributing toregional development;(c) the development of the information society;(d) the protection and improvement of the environment,in particular taking account of the principles of precaution and of preventive action in the support toeconomic development, and the fostering of clean,efficient utilisation of energy and the development of renewable energy sources;(e) equality between men and women, in the field of employment principally through the establishment of firms, and through infrastructure and servicesenabling the reconciliation of family and workinglife;(f) transnational, cross-border and inter-regional coop-eration on regional development.
Article 3 
Community Initiative
1.Pursuant to Article 19 of Regulation ((EC) No.../98), the ERDF shall, in accordance with Article20(2) of that Regulation, contribute to the implemen-tation of the Community initiative for cross-border,transnational and inter-regional cooperation intended toencourage the harmonious, balanced and sustainabledevelopment of the whole of the Community’s territory (‘Interreg’).2.In accordance with Article 20(2) of Regulation((EC) No .../98), the scope laid down in paragraph 1 of this Article may be extended by the decision on theFunds’ contribution to the financing of measures eligibleunder the (ESF, EAGGF, FIFG) Regulations with a viewto implementing all the measures in the Community initiative programme concerned.
Article 4 
Innovative measures
1.In accordance with Article 21(1) of Regulation((EC) No .../98), the ERDF may also contribute tofinancing:(a)studies on the Commission’s initiative to identify andanalyse regional development problems andsolutions, particularly with a view to the harmonious,balanced and sustainable development of the wholeof the Community’s territory, including theEuropean Spatial Development Perspective;C 52/14 23.2.1999Official Journal of the European Communities

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