Keywords
Summary

Keywords

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1 . AID GRANTED BY STATES - PROHIBITION - INVESTMENT AID GRANTED TO AN UNDERTAKING OPERATING IN A SECTOR HAVING UNUSED CAPACITY

( EEC TREATY, ART . 92 ( 1 ) )

2 . AID GRANTED BY STATES - COMMISSION DECISION PROHIBITING THE IMPLEMENTATION OF AN AID PROJECT - OBLIGATION TO STATE REASONS - INFORMATION REQUIRED

( EEC TREATY, ART . 92 ( 1 ) AND ART . 190 )

3 . AID GRANTED BY STATES - PROHIBITION - EXEMPTIONS - AID WHICH MAY BE CONSIDERED COMPATIBLE WITH THE COMMON MARKET - AID HELPING TO PROMOTE THE EXECUTION OF AN IMPORTANT PROJECT OF EUROPEAN INTEREST - POWER OF APPRAISAL OF THE COMMISSION

( EEC TREATY, ART . 92 ( 3 ) ( B ) )

4 . AID GRANTED BY STATES - PROHIBITION - EXEMPTIONS - AID WHICH MAY BE CONSIDERED COMPATIBLE WITH THE COMMON MARKET - AID TO ENCOURAGE THE DEVELOPMENT OF A SECTOR OF THE ECONOMY - POWER OF APPRAISAL OF THE COMMISSION

( EEC TREATY, ART . 92 ( 3 ) ( C ) )

5 . AID GRANTED BY STATES - AID PROJECTS - CONSIDERATION BY THE COMMISSION - CONSULTATION PROCEDURE - OBSERVATIONS SUBMITTED BY INTERESTED THIRD PARTIES - OBSERVATIONS NOT COMMUNICATED TO THE AUTHORITY GRANTING THE AID - NO REFERENCE TO THOSE OBSERVATIONS IN THE REASONS GIVEN FOR THE COMMISSION DECISION - INFRINGEMENT OF THE RIGHT TO A FAIR HEARING - NONE

( EEC TREATY, FIRST PARAGRAPH OF ART . 93 ( 2 ) )

Summary

1 . SINCE IT FAVOURS ONE UNDERTAKING AT THE EXPENSE OF ITS COMPETITORS, INVESTMENT AID GRANTED IN THE FORM OF AN INTEREST SUBSIDY TO AN UNDERTAKING OPERATING IN A SECTOR IN WHICH DIFFICULTIES IN FINDING OUTLETS FOR PRODUCTION HAVE LED TO REDUNDANCIES FALLS WITHIN THE SCOPE OF THE PROHIBITION LAID DOWN BY ARTICLE 92 ( 1 ) OF THE TREATY .

2 . A DECISION PROHIBITING THE IMPLEMENTATION OF AN AID PROJECT PROVIDES AN ADEQUATE INDICATION OF REASONS FOR THE PURPOSES OF ARTICLE 190 OF THE TREATY, HAVING REGARD TO THE CONDITION, LAID DOWN IN ARTICLE 92 ( 1 ), THAT TRADE BETWEEN MEMBER STATES MUST BE AFFECTED AND COMPETITION DISTORTED WHEN THE COMMISSION MENTIONS IN THAT DECISION THE VULNERABILITY OF THE RELEVANT MARKET DUE IN PARTICULAR TO STAGNANT DEMAND, UNUSED PRODUCTION CAPACITY AND A STEADY DECLINE IN EMPLOYMENT, AND WHEN IT DEMONSTRATES THE VOLUME OF EXPORTS OF THE RECIPIENT UNDERTAKING AND EXPLAINS THAT, IN A PERIOD OF TWO YEARS, IT HAD HAD TO ADOPT THREE DECISIONS PROHIBITING AID FOR UNDERTAKINGS OPERATING IN THE SAME MANUFACTURING SECTOR AND IN THE SAME AREA OF THE COMMON MARKET .

3 . THE COMMISSION DOES NOT EXCEED THE LIMITS OF ITS POWER OF APPRAISAL IN TAKING THE VIEW THAT A PROJECT CANNOT BE DESCRIBED AS A PROJECT OF COMMON EUROPEAN INTEREST WITHIN THE MEANING OF ARTICLE 92 ( 3 ) ( B ) OF THE TREATY UNLESS IT FORMS PART OF A TRANSNATIONAL EUROPEAN PROGRAMME SUPPORTED JOINTLY BY A NUMBER OF GOVERNMENTS OF THE MEMBER STATES, OR ARISES FROM CONCERTED ACTION TAKEN BY A NUMBER OF MEMBER STATES TO COMBAT A COMMON THREAT SUCH AS ENVIRONMENTAL POLLUTION .

4 . IN DECIDING THAT AN AID PROJECT DOES NOT QUALIFY FOR THE EXEMPTION UNDER ARTICLE 92 ( 3 ) ( C ) OF THE TREATY ON THE GROUNDS, FIRST, THAT BEING INTENDED TO FINANCE THE RENOVATION OF MANUFACTURING PLANT WHICH IS TO BE INCLUDED IN THE OPERATING COSTS, THE AID CANNOT BE REGARDED AS CONTRIBUTING TO THE DEVELOPMENT OF A SECTOR OF THE ECONOMY DESPITE THE TECHNOLOGICAL INNOVATIONS ENTAILED BY ANY RENOVATION AND, SECONDLY, THAT, SINCE IT IS GRANTED IN A SECTOR WITH UNUSED PRODUCTION CAPACITY, IT AFFECTS TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST, THE COMMISSION IS MERELY EXERCISING ITS POWER OF APPRAISAL .

5 . THE RIGHT TO A FAIR HEARING IS NOT INFRINGED IF THE COMMISSION REFRAINS FROM COMMUNICATING TO A STATE TO WHICH A DECISION PROHIBITING AN AID PROJECT HAS BEEN ADDRESSED THE OBSERVATIONS SUBMITTED BY INTERESTED PARTIES AS PART OF THE CONSULTATIONS PROVIDED FOR BY THE FIRST PARAGRAPH OF ARTICLE 93 ( 2 ) OF THE TREATY AND THE REASONS GIVEN FOR THE DECISION DO NOT REFER TO THOSE OBSERVATIONS .