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        Acting on a proposal from Mr Millan, in agreement with Mr Flynn,  Mr
        Steichen and Mr Paleokrassas, the Commission has taken a decision in
        principle   on  the  Community  support  framework  for   structural
        assistance to Spain's Objective 1 regions for 1994-99.

        The  regions  concerned (Asturias, Andalusia,  the  Canary  Islands,
        Cantabria,  Castile-La  Mancha,  Castile-Leon,  Ceuta,  Extremadura,
        Galicia,  Melilla,  Murcia  and Valencia) account  for  77%  of  the
        territory of Spain and 59% of its population.

        The  Commission will finally adopt the CSF once it has received  the
        opinions of the Committees provided for in the Regulation.1

        Total assistance from the Structural Funds2 contributing to the  CSF
        will  amount  to ECU 26.3 billion (over PTA 4 000  billion),  broken
        down as follows:

            ERDF:               ECU 15 944.2 million (60.6%)
            ESF:                ECU 6 047 million (23%)
            EAGGF:              ECU 3 313.8 million (12.6%)
            FIFG:               ECU 995 million (3.8%)

        Total  Community  assistance over the whole  period  will  therefore
        amount  to  more  than two and a half times the ECU  9  779  million
        provided between 1989 and 1993.

        Inclusion  of  the contribution of the Cohesion  Fund  and  national
        part-financing raises total public expenditure to ECU 39 billion and
        total investment to ECU 48.9 billion (almost PTA 8 000 billion).

        Mr  Millan noted that this Community support  framework  represented
        decisive  progress towards the European Union's goal  of  correcting
        regional imbalances since the decision committed the largest  volume
        of financial assistance which the Union had ever granted to a Member
        State.  The range of measures planned was vast and  the  development
        effort  embraced the main sectors of the economy. The objectives  to
        be  achieved  were precise and would contribute  to  securing  high-
        quality results.

        1   Advisory Committee on the Development and Conversion of Regions,
            Committee under Article 124 of the Treaty, Management  Committee
            on  Agricultural  Structures  and  Rural  Development,  Standing
            Committee on Fisheries Structures.
        2   ERDF   -            European Regional Development Fund
            ESF    -            European Social Fund
            EAGGF  -            European Agricultural Guidance and Guarantee
                                Fund - Guidance Section
            FIFG   -            Financial Instrument for Fisheries Guidance

        A thorough analysis of the problems of these regions had revealed:

        -   incomes of about 64% of the Community average;

        -   unemployment almost twice as high as the Community average.

        Accordingly, the overall objectives for the development plan and the
        allocation between the objectives of the funds available was set  as

        1.  Improving the productive system    ECU 9 075 million (34.5%)
            (industry, tourism, agriculture,
            fisheries, research and development,
            technical assistance)

        2.  Human resources and improving the  ECU 8 780 million (33.4%)
            quality of life
            (development of human resources,
            environment, education, health)

        3.  Improving access                   ECU 6 518 million (24.8%)
            (roads, railways, ports, airports,

        4.  Basic facilities                   ECU 1 927 million (7.3%)
            (water, energy)

        These figures clearly show that the 1994-99 CSF:

        -   places considerable emphasis on improving the productive  system
            in order to strengthen economic growth and the creation of  jobs
            and so contribute to the fight against unemployment;

        -   also places very substantial stress on improving human resources
            which,   alongside  the  development  and  improvement  of   the
            productive  apparatus,  is  an essential feature  of  the  fight
            against  unemployment.  Similarly,  there  will  be  substantial
            assistance  for the environment and the quality of  life,  since
            any failures in those areas could constitute an obstacle to  the
            development process;

        -   reduces  the relative share of assistance to improve access,  in
            view  of  the  achievements  of the  preceding  period  and  the
            exceptional effort in this sector between 1989 and 1993;

        -   retains  at the same relative level as in the previous CSF  (but
            with  a  doubling  in  absolute  terms)  expenditure  on   basic
            facilities such as water and energy.

        This   programming   document  demonstrates  a  higher   degree   of
        regionalization  than  in  the previous  period.  It  contains  sub-
        regional  frameworks  which  are the direct  responsibility  of  the
        regional  governments  and  account  for  35%  of  total  resources,
        allocated as follows:

                                 Total cost         Community contribution
                                (ECU million)            (ECU million)

        Andalusia                 4 589                      2 421
        Asturias                    650                    358
        Canary Islands            1 052                    660
        Cantabria                   307                    259
        Castile-Leon              2 144                      1 163
        Castile-La Mancha         1 401                    766
        Ceuta                        28                     20
        Extremadura               1 225                    731
        Galicia                   2 302                      1 225
        Melilla                      45                     18
        Murcia                      641                    300
        Valencia                  1 905                      1 040

        It  should  also  be  stressed  that the  vast  bulk  (90%)  of  the
        programmes  to  implement  the  investments  provided  for  in   the
        multiregional  section of the CSF will be regionalized. This  option
        will   both   make  the  regionalization  of   appropriations   more
        transparent  from  the CSF stage and tie  the  financial  resources,
        whether  of national or more strictly regional origin,  more  firmly
        into the regional structure.

        The  considerable  technical and institutional  effort  required  to
        implement this document is demonstrated by the following points:

        -   financially,  the document involves a volume of resources  never
            before  deployed  in  Spain  allocated to  a  series  of  public
            investments  to  be  implemented  over a  number  of  years  and
            involving the participation of all political and  administrative
            levels, national, regional, local and Community;

        -   institutionally, it entails the coordination and integration  of
            the  programming activities of all the public  bodies  involved.
            This integration will also continue in the operational phase and
            during   assessment,  using  joint  monitoring  and   assessment
            mechanisms laid down by the CSF;

        -   from  a  technical point of view, this  document  constitutes  a
            major  effort at synthesis since it involves an analysis of  the
            problems  of this set of regions and the definition for each  of
            those  regions of appropriate strategies within the  context  of
            partnership  between all those concerned. It is noteworthy  that
            this CSF contains more than 90 technical indicators designed  to
            define precisely the situation at the outset and the  objectives
            to be achieved through the measures planned.

        An  assessment  of the results achieved by the 1989-93  CSF  may  be
        found in MEMO(94) 34.

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