No L 225/24 Official Journal of the European Communities 15. 8. 88 COUNCIL REGULATION (EEC) No 2506/88 of 26 July 1988 instituting a Community programme to assist the conversion of shipbuilding areas (RENAVAL programme) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 1787/84 of 19 June 1984 on the European Regional Development Fund (1), and in particular Article 7 (4) thereof, Having regard to the proposal from the Commission (2), Having regard to the opinion of  the Ehropean Parliament (3), Having regard to the opinion of the Economic and Social Committee (4), Whereas Title V of the Treaty provides in particular for the strengthening of economic and social cohesion; Whereas Article 7 of Regulation (EEC) No 1787/84, hereinafter referred to as the Fund Regulation, provides for participation by the Fund in Community programmes the ‘purpose of which is to help in solving serious problems affecting the socio-economic situation in one or more regions and which are designed to provide a better link between the Community’s objectives for the structural development or conversion of regions and the objectives of other Community policies; Whereas on 26 January 1987 the Council adopted Directive 87/167/EEC on aid to shipbuilding () and whereas that Directive has to be seen in the context of a further reduction in shipbuilding capacity in the Community and an even greater reduction in employment; whereas the foregoing considerations also apply to ship conversion and repair; Whereas a number of areas in the Community which are highly dependent on shipbuilding and which have already suffered major job losses as a result of the decline in shipbuilding are likely to see a worsening of these adverse consequences; (*) OJ No L 169, 28. 6. 1984, p. 1. (2) OJNoC291,31.10. 1987, p. 8, and amendments forwarded on 19 May 1988 and 28 June 1988 (not yet published in the Official Journal). (*) OJ No C 187, 18. 7. 1988. () OJ No C 356, 31. 12. 1987, p. 49. () OJ No L 69, 12. 3. 1987, p. 55. Whereas the Community should support the effort which must be made to replace jobs lost as a result of restructuring through the development of new sources of appropriate employment in other sectors in the regions affected; Whereas, in adopting the said Directive, the Council also took the view that additional measures should be taken to alleviate the social and regional consequences of the restructuring of the shipbuilding industry; whereas, to that end, the Commission sent to the Council and to the European Parliament a communication on the industrial, social and regional aspects of shipbuilding; whereas, in that communication, the Commission proposed in particular that a Community programme within the meaning of Article 7 of the Fund Regulation should be instituted for the conversation of the worst-hit areas in the Community; Whereas, on 7 October 1980, the Council adopted Regulation (EEC) No 2617/80 (¢), as last amended by Regulation (EEC) No 3635/85(7), which instituted a specific Community regional development measure contributing to overcoming constraints on the development of new economic activities in certain zones adversely affected by restructuring of the shipbuilding industry; whereas the areas in the new Member States adversely affected by the restructuring of shipbuilding should be allowed to benefit, in the form of a Community programme, from measures analogous to those introduced by the said Regulation; Whereas, on account of the worsening difficulties faced by shipyards, it will also be necessary to introduce in other areas of the Community, in the form of a Community programme, measures analogous to those already taken in certain areas of the Community under Regulation (EEC) No 2617/80 as amended, and, where appropriate, to reinforce as part of the same programme the existing measures in those areas; Whereas the Member States concerned have provided the Commission with the necessary information and whereas, pursuant to Article 11 of Directive 87/167/EEC, they are moreover required to supply the Commission with yearly reports on the attainment of the restructuring objectives; Whereas, by assisting with the conversion of the declining industrial regions affected by restructuring of the shipbuilding industry, the Community programme contributes to the furtherance of both regional development objectives and the Community’s objectives with regard to shipbuilding; whereas the level of Community participation must therefore be the maximum permissible under the Fund Regulation and whereas, at the same time, the programme is given priority in the management of Fund resources; (¢) OJ No L 271, 15. 10. 1980, p. 16. () OJ No L 350, 27. 12. 1985, p. 8.