EUR-Lex - 31983D0394 - EN

EUR-Lex - 31983D0394 - EN Avis juridique important | 83/394/ECSC: Commission Decision of 29 June 1983 concerning the aids that the Hellenic Republic proposes to grant to the steel industry (Only the Greek text is authentic) Official Journal L 227 , 19/08/1983 P. 0018 - 0020 +++++ ( 1 ) OJ NO L 228 , 13 . 8 . 1981 , P . 14 . ( 2 ) OJ NO C 133 , 20 . 5 . 1983 , P . 2 . ( 3 ) OJ NO L 191 , 1 . 7 . 1982 , P . 1 . ( 4 ) OJ NO L 333 , 20 . 11 . 1981 , P . 35 . COMMISSION DECISION OF 29 JUNE 1983 CONCERNING THE AIDS THAT THE HELLENIC REPUBLIC PROPOSES TO GRANT TO THE STEEL INDUSTRY ( ONLY THE GREEK TEXT IS AUTHENTIC ) ( 83/394/ECSC ) THE COMMISSION OF THE EUROPEAN COMMUNITIES , HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , HAVING REGARD TO COMMISSION DECISION NO 2320/81/ECSC OF 7 AUGUST 1981 ESTABLISHING COMMUNITY RULES FOR AIDS TO THE STEEL INDUSTRY ( 1 ) , AND IN PARTICULAR ARTICLE 8 ( 3 ) THEREOF , HAVING GIVEN NOTICE , IN ACCORDANCE WITH ARTICLE 8 ( 3 ) OF THE ABOVEMENTIONED DECISION , TO THE PARTIES CONCERNED TO SUBMIT THEIR COMMENTS ( 2 ) , AND HAVING REGARD TO THOSE COMMENTS , WHEREAS : I BY LETTER DATED 20 OCTOBER 1982 , THE GREEK GOVERNMENT NOTIFIED THE COMMISSION OF ITS INTENTION TO GRANT INVESTMENT AIDS TO THE STEEL UNDERTAKINGS METTALLOURGIKI HALYPS AND SIDENOR . AFTER AN INITIAL SCRUTINY OF THE PROPOSED AIDS IN THE LIGHT OF THE PROVISIONS OF ARTICLES 2 AND 3 OF DECISION NO 2320/81/ECSC AND ON THE BASIS OF INFORMATION PROVIDED BY THE GREEK GOVERNMENT , THE COMMISSION CONCLUDED THAT NO INFORMATION WAS PROVIDED ON THE AMOUNT AND FORM OF AIDS , AND THAT NO CAPACITY REDUCTIONS WERE PROPOSED . FOR THESE REASONS THE COMMISSION INITIATED WITH RESPECT TO THE AIDS PROPOSED THE PROCEDURE PROVIDED FOR IN ARTICLE 8 ( 3 ) OF DECISION NO 2320/81/ECSC . ACCORDINGLY THE COMMISSION , ON 22 DECEMBER 1982 , SENT A LETTER CONSTITUTING FORMAL NOTICE TO THE GREEK GOVERNMENT TO SUBMIT ITS COMMENTS . II IN ITS REPLIES , BY LETTERS DATED 4 FEBRUARY AND 8 JUNE 1983 RESPECTIVELY , THE GREEK GOVERNMENT PROVIDED THE COMMISSION WITH INFORMATION ON THE AMOUNTS AND FORMS OF AIDS PROPOSED ; IT ALSO STATED THAT THE INVESTMENT PROGRAMME OF METALLOURGIKI HALYPS FORESAW THE EXTENSION OF A WATER TREATMENT UNIT , THE INSTALLATION OF AN OXYGEN PRODUCING UNIT AND OF A REHEAT FURNACE ; THAT THE INVESTMENT PROGRAMME OF SIDENOR FORESAW THE INSTALLATION OF AN ELECTRIC FURNACE , ROLLS AND OTHER MEASURES FOR THE PROTECTION OF THE ENVIRONMENT ; THAT BOTH INVESTMENT PROGRAMMES ARE STILL UNDER PREPARATION , THE UNDERTAKINGS CONCERNED NOT HAVING TAKEN THEIR FINAL DECISIONS YET . IN THEIR REPLIES TWO MEMBER STATES AND ONE FEDERATION OF UNDERTAKINGS OF THE SECTOR WERE IN GENERAL AGREEMENT WITH THE CONCLUSIONS OF THE COMMISSION . III THE INVESTMENT AIDS SUBJECT TO THE PROCEDURE OF ARTICLE 8 ( 3 ) OF DECISION NO 2320/81/ECSC ARE :

• A GRANT OF DR 235 MILLION TO METALLOURGIKI HALYPS ,
• A GRANT OF DR 150 MILLION TO SIDENOR ,
• POSSIBLE GUARANTEES FOR ECSC LOANS .

THE GREEK GOVERNMENT HAS NOT PROPOSED ANY CAPACITY REDUCTION TO JUSTIFY THESE AIDS . IV THE SECOND INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT RESTRUCTURING PROGRAMMES MUST RESULT IN AN OVERALL REDUCTION IN THE PRODUCTION CAPACITIES OF THE UNDERTAKINGS IN RECEIPT OF AIDS . ACCORDING TO THE RETURNS MADE BY THE FIRMS TO THE COMMISSION'S ANNUAL INVESTMENT SURVEYS THEIR CAPACITIES TO PRODUCE HOT-ROLLED PRODUCTS WILL INCREASE FOR THE PERIOD 1980 TO 1985 BY 100 000 TONNES IN THE CASE OF METALLOURGIKI HALYPS AND BY 50 000 TONNES IN THE CASE OF SIDENOR . THE SECOND INDENT OF ARTICLE 3 ( 1 ) PROVIDES THAT THE AMOUNT AND INTENSITY OF AIDS MUST BE JUSTIFIED BY THE EXTENT OF THE RESTRUCTURING EFFORT INVOLVED ; MOREOVER , THE CAPACITY REDUCTIONS WHICH ARE REQUIRED IN ORDER TO OBTAIN AN OVERALL CAPACITY REDUCTION AT A COMMUNITY LEVEL OF 30 TO 35 MILLION TONNES IN HOT-ROLLED PRODUCTS SHOULD BE DISTRIBUTED FAIRLY ; THIS LEVEL OF OVERALL CAPACITY REDUCTION IS IN VIEW OF THE GENERAL OBJECTIVES FOR STEEL , NECESSARY TO ALLOW A RETURN TO A LEVEL OF CAPACITY UTILIZATION WHICH IS CONSIDERED THE MINIMUM REQUIRED TO RESTORE THE VIABILITY OF THE COMMUNITY STEEL INDUSTRY UNDER NORMAL MARKET CONDITIONS ; ON THIS BASIS SUFFICIENT EFFORT MUST BE ACCEPTED BY THE GREEK STEEL INDUSTRY ; THEREFORE AN APPROPRIATE NET CAPACITY REDUCTION IN HOT-ROLLED PRODUCTS MUST BE PROPOSED IN FAVOUR OF THE TWO COMPANIES CONCERNED ; A DEADLINE SHOULD BE ESTABLISHED FOR THE IDENTIFICATION OF THE CLOSURES THAT WILL HAVE TO BE IMPLEMENTED . V THE COMMISSION MUST SUPERVISE THE GRANT OF AIDS AUTHORIZED AND OBSERVANCE OF THE CONDITIONS IMPOSED BY IT . THE CAPACITY REDUCTIONS MUST BE OBTAINED BY THE CLOSURE OF PLANT PRODUCING HOT-ROLLED PRODUCTS AND THE COMMISSION MUST BE ABLE TO VERIFY THAT SUCH CLOSURE IS DEFINITIVE . THE NET CAPACITY REDUCTIONS TAKE INTO ACCOUNT ANY CAPACITY INCREASES THAT MAY RESULT FROM APPROVED INVESTMENT PROGRAMMES . IN THE CONTEXT OF THE REALIZATION OF THE OBJECTIVE OF ADAPTING PRODUCTION CAPACITY TO DEMAND , THE CREATION OF ANY NEW CAPACITY MUST BE COMPENSATED BY ADDITIONAL CLOSURES . THE FIRST INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT AIDED UNDERTAKINGS MUST BE ENGAGED IN THE IMPLEMENTATION OF A RESTRUCTURING PROGRAMME WHICH IS CAPABLE OF RESTORING THEIR COMPETITIVENESS AND OF MAKING THEM FINANCIALLY VIABLE WITHOUT AID UNDER NORMAL MARKET CONDITIONS . THE COMMISSION MUST THEREFORE BE ASSURED THAT THE AIDS CONTRIBUTE TO RESTORING VIABILITY . THE COMMISSION CAN ONLY AUTHORIZE AID FOR UNDERTAKINGS WHICH HAVE FULFILLED THE ENTIRETY OF THEIR OBLIGATIONS RESULTING FROM THE APPLICATION OF THE ECSC TREATY . THE AUTHORIZATION OF THE AIDS UNDER CONSIDERATION CANNOT PREJUDICE ANY DECISIONS THAT THE COMMISSION MAY HAVE TO TAKE UNDER ARTICLES 65 AND 66 OF THE ECSC TREATY . THERE EXISTS A SYSTEM OF QUOTAS ( 3 ) UNDER ARTICLE 58 OF THE ECSC TREATY AND ITS EXTENSION IS CONSIDERED NECESSARY . IN VIEW OF ALL THE ABOVE , THE COMMISSION CANNOT AUTHORIZE THE PROPOSED AIDS UNLESS THE CONDITIONS AND REQUIREMENTS LAID DOWN IN THIS DECISION ARE FULFILLED ,

ARTICLE 2 1 . IN ORDER THAT THE AIDS REFERRED TO IN ARTICLE 1 MAY BE COMPATIBLE WITH THE ORDERLY FUNCTIONING OF THE COMMON MARKET , THE UNDERTAKINGS TO WHICH IT IS PLANNED TO GRANT THE AIDS SHALL CARRY OUT APPROPRIATE NET REDUCTIONS IN THEIR PRODUCTION CAPACITY FOR HOT-ROLLED PRODUCTS . THE REQUISITE CAPACITY REDUCTIONS MAY ALSO BE CONTRIBUTED BY OTHER UNDERTAKINGS . 2 . A LIST OF THE PLANTS TO BE CLOSED , GIVING THE CLOSURE DATES AND A REPORT OF INCREASES IN CAPACITY RESULTING FROM INVESTMENT , SHALL BE SENT TO THE COMMISSION BY 31 JANUARY 1984 SO THAT IT CAN SATISFY ITSELF THAT THE NET REDUCTIONS SPECIFIED IN THE FIRST PARAGRAPH WILL BE ACHIEVED ; THE CLOSURES SHALL BE IMPLEMENTED BY 31 DECEMBER 1985 .

ARTICLE 5 1 . TO ENABLE IT TO CHECK THAT INVESTMENT AID IS DISBURSED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 4 ( 2 ) , THE COMMISSION SHALL BE INFORMED AT THE BEGINNING OF EACH QUARTER OF :

• THE EXPENDITURE TO BE INCURRED BY THE UNDERTAKINGS DURING THE QUARTER CONCERNED BOTH IN RESPECT OF WORK ALREADY DONE AND AS PAYMENTS ON ACCOUNT IN RESPECT OF FUTURE WORK ,
• THE INVESTMENT AID TO BE DISBURSED DURING THE SAME PERIOD . 2 . THE COMMISSION MAY ALSO CARRY OUT ON-THE-SPOT INSPECTIONS TO VERIFY THAT THE REDUCTIONS IN CAPACITY REFERRED TO IN ARTICLE 2 ( 1 ) HAVE BEEN IMPLEMENTED .

ARTICLE 6 1 . WITHOUT PREJUDICE TO ANY PENALTIES IT MAY IMPOSE BY VIRTUE OF THE ECSC TREATY , THE COMMISSION MAY ORDER THE SUSPENSION OF AID PAYMENTS IF AT ANY TIME IT SHOULD FIND THAT :

• AID HAS BEEN PAID IN DISREGARD OF THE CONDITIONS ATTACHED TO ITS AUTHORIZATION IN THIS DECISION ,
• THAT THE AIDED UNDERTAKING HAS BREACHED ITS OBLIGATIONS UNDER THE PROVISIONS OF THE ECSC TREATY , IN PARTICULAR THOSE GOVERNING THE SYSTEM OF PRODUCTION QUOTAS ESTABLISHED UNDER ARTICLE 58 AND THE RULES ON PRICING . 2 . THE AID PAYMENTS MAY NOT BE RESUMED UNTIL THE COMMISSION HAS DECIDED WHETHER AND TO WHAT EXTENT THE INFRINGEMENTS COMMITTED CALL FOR A REDUCTION IN THE AMOUNT OF THE AID STILL OUTSTANDING .