With your permission, Sir, I propose to take Questions Nos. 66 and 68 together.
The objectives set for the European Economic Community in the preamble to the Treaty of Rome include the harmonious development of the economies of the Member States "by diminishing both the disparities between the various regions and the backwardness of the less favoured regions." In Article 2 of the Treaty it is stated that it shall be the task of the Community to promote throughout the Community a harmonious development of economic activities and a continuous and balanced expansion. Article 92 provides that certain kinds of State aid including the following may be deemed to be compatible with the Common Market:
Aid intended to promote the economic development of regions where the standard of living is abnormally low or where there is serious underemployment;
Aid intended to facilitate the development of certain economic regions.
In pursuance of the objectives set by the Treaty, the Community is studying techniques of promoting regional development and means by which the efforts of the individual countries may be supplemented by Community action. In the formulation of the common policy for the various economic sectors, including agriculture and transport, and for the social sector, account is taken of the regional implications of such policy.
At an EEC Conference on Regional Economies held in Brussels in December, 1961, and reported in the Official Bulletin of the EEC in February, 1962, it was indicated that the view of the EEC Commission is that whenever possible industry should move to the worker and that the converse should only occur in exceptional circumstances. The Commission, in co-operation with the Governments, is pressing forward with studies for the creation in less developed regions of poles of industrial development which it is hoped will in time transform the economies of these regions. One such project to be located in Southern Italy is in an advanced stage of planning. Accordingly, there is reason to believe that membership of the Community will aid rather than impede efforts to promote the economic development of less developed areas.