EUR-Lex - 31983D0395 - EN

EUR-Lex - 31983D0395 - EN Avis juridique important | 83/395/ECSC: Commission Decision of 29 June 1983 concerning the aids that the Irish Government proposes to grant to Irish Steel Ltd (Only the English text is authentic) Official Journal L 227 , 19/08/1983 P. 0021 - 0023 +++++ ( 1 ) OJ NO L 228 , 13 . 8 . 1981 , P . 14 . ( 2 ) OJ NO C 54 , 26 . 2 . 1983 , P . 2 . ( 3 ) OJ NO L 191 , 1 . 7 . 1982 , P . 1 . COMMISSION DECISION OF 29 JUNE 1983 CONCERNING THE AIDS THAT THE IRISH GOVERNMENT PROPOSES TO GRANT TO IRISH STEEL LTD ( ONLY THE ENGLISH TEXT IS AUTHENTIC ) ( 83/395/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 29 SEPTEMBER 1982 , THE IRISH GOVERNMENT NOTIFIED THE COMMISSION OF ITS INTENTION TO GRANT AIDS TO THE STEEL FIRM IRISH STEEL LTD ( ISL ) . AFTER AN INITIAL SCRUTINY OF THESE AIDS , IN THE LIGHT OF THE PROVISIONS OF ARTICLES 2 TO 5 OF DECISION NO 2320/81/ECSC , AND ON THE BASIS OF INFORMATION OBTAINED , THE COMMISSION CONCLUDED THAT THE VIABILITY OF ISL REMAINED IN DOUBT , THAT THERE WAS NO CAPACITY REDUCTION TO JUSTIFY THE AIDS AND THAT NO INFORMATION HAS BEEN PROVIDED REGARDING THE AMOUNTS AND DATES OF THE AID PAYMENTS . 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 29 NOVEMBER 1982 SENT A LETTER CONSTITUTING FORMAL NOTICE TO THE IRISH GOVERNMENT TO SUBMIT ITS COMMENTS . II IN ITS REPLY , DATED 19 APRIL 1983 , THE IRISH GOVERNMENT INFORMED THE COMMISSION THAT ISL WAS ON TARGET REGARDING ITS SALES LEVEL FOR THE YEAR TO JUNE 1983 , THAT THE REDUCTION IN THE ELECTRICITY CHARGES WHICH IS ESSENTIAL FOR ISL'S VIABILITY WOULD NOT RESULT IN A CHARGE ON PUBLIC FUNDS AND WOULD NOT DISCRIMINATE AGAINST COMPARABLE CONSUMERS ; THAT THE IRISH GOVERNMENT WAS GIVING ISL A TRIAL PERIOD TO 31 DECEMBER 1983 TO PROVE ITS VIABILITY AND THAT NO CAPACITY REDUCTION IS NECESSARY TO JUSTIFY THE AIDS PROPOSED SINCE ARTICLE 2 ( 3 ) OF DECISION NO 2320/81/ECSC APPLIED IN THIS CASE . IN THEIR REPLIES , TWO OTHER MEMBER STATES AND ONE FEDERATION OF COMPANIES OF THE SECTOR , WERE IN GENERAL AGREEMENT WITH THE CONCLUSIONS OF THE COMMISSION . ON 27 APRIL 1983 THE IRISH GOVERNMENT REQUESTED AUTHORIZATION FOR THE ISSUE OF GUARANTEES AMOUNTING TO POUND IRL 7 MILLION IN FAVOUR OF ISL , IN ORDER TO ALLOW THE UNDERTAKING TO CONTINUE OPERATING UNTIL 30 JUNE 1983 . THE COMMISSION , BY LETTER DATED 6 MAY 1983 , AUTHORIZED THIS INTERIM MEASURE , WITHOUT PREJUDICE TO ITS FINAL DECISION .

III THE AIDS FOR CONTINUED OPERATION THAT ARE STILL SUBJECT TO THE PROCEDURE OF ARTICLE 8 ( 3 ) OF DECISION NO 2320/81/ECSC ARE :

• POUND IRL 89 MILLION OF NEW CAPITAL , AND
• POUND IRL 18 MILLION OF GUARANTEES TO PREFINANCE THIS CAPITAL AS NECESSARY . THE IRISH GOVERNMENT HAS STATED THAT IT CAN OFFER NO CAPACITY REDUCTION TO JUSTIFY THESE AIDS . IV THE FIRST INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT THE AIDED UNDERTAKING MUST BE ENGAGED IN THE IMPLEMENTATION OF A SYSTEMATIC AND SPECIFIC RESTRUCTURING PROGRAMME COVERING THE DIFFERENT ASPECTS OF RESTRUCTURING , WHICH IS CAPABLE OF RESTORING ITS COMPETITIVENESS AND MAKING IT FINANCIALLY VIABLE WITHOUT ANY AID UNDER NORMAL MARKET CONDITIONS . IN THE CASE IN POINT EVEN IF THE REDUCTION IN THE ELECTRICITY CHARGES IS ACHIEVED , ISL'S VIABILITY REMAINS IN DOUBT , SINCE THE IRISH MARKET IS TOO SMALL TO ABSORB A LEVEL OF ISL OUTPUT SUFFICIENT TO SECURE AN ADEQUATE LEVEL OF CAPACITY UTILIZATION FOR THE UNDERTAKING . THE SECOND INDENT OF ARTICLE 2 ( 1 ) PROVIDES THAT THE RESTRUCTURING PROGRAMME MUST RESULT IN A REDUCTION IN THE PRODUCTION CAPACITY OF THE AIDED UNDERTAKING .

ARTICLE 2 ( 3 ) PROVIDES THAT IN TAKING DECISIONS ON APPLICATIONS FOR AID SUBMITTED TO IT PURSUANT TO RESTRUCTURING PROGRAMMES , THE COMMISSION SHALL TAKE ACCOUNT OF THE SPECIAL SITUATION OF MEMBER STATES HAVING ONLY ONE STEEL UNDERTAKING WHOSE EFFECT ON THE COMMUNITY MARKET IS MINIMAL . SINCE THIS IS THE CASE WITH IRISH STEEL LTD , THE COMMISSION CAN LIMIT ITS APPRAISAL TO THE VIABILITY OF THE UNDERTAKING . V THE COMMISSION MUST SUPERVISE THE GRANT OF THE AIDS AUTHORIZED AND OBSERVANCE OF THE CONDITIONS IMPOSED BY IT . 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 . VI 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 , HAS ADOPTED THIS DECISION :

ARTICLE 5 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 ,
• THE SIX-MONTHLY REPORTS SUPPLIED TO IT GIVE REASON TO DOUBT THAT THE UNDERTAKING CONCERNED WILL RETURN TO FINANCIAL VIABILITY BY THE END OF 1985 ; IN SUCH A CASE THE COMMISSION MAY IMPOSE ADDITIONAL CONDITIONS RELATING TO THE RESTRUCTURING OF THE UNDERTAKING ,
• 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 .