No L 118/42 Official Journal of the European Communities 9. 5. 90 COMMISSICN DECISION. of 24 May 1989 on aid granted by the Italian Government ot Aluminia and Comsal, two State-owned undertakings in the aluminium industry (Only the Italian text is authentic) (90/224/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to.the Treaty establishing the European Economic Community, and in particular the first subpara- graph of Article 93 (2) thereof, Having given notice in accordance with the above Article to interested parties to submit- their comments, and having regard to these comments, Whereas : On 5 December 1984 and 20 November 1985, the Commission decided to initiate the procedure provided for in the first paragraph of Article 93 (2) of the EEC Treaty with respect to a total of Lit 1 445 000 million of aid that the Italian Government had granted or intended to grant for the restructuring of the State-owned alumi- nium industry in Italy for the period 1983 to 1988. Among the reasons for which the Commission initiated the procedures in question was that the amount of aid in question appeared to exceed significantly the needs of the restructuring plan of the State-owned aluminium industry: for the period under examination, and therefore could not be. justified in -terms of the common interest. In submitting its comments in connection with the two procedures initiated - under Article: 93 (2), the Italian Government presented- to the Commission a series of. amendments to the said restructuring plan. By one of these modifications the Italian Government, taking into consideration the Commission’s position that the exces- sive aid was not compatible with the common: market, undertook to reduce ‘the amount of-aid it intended to . provide by Lit 200 000 -million. On 17 December 1986 the Commission decided to termi- - nate the two procedures concerning aid measures which the Italian Government had already granted or intended to grant to the State-owned aluminium industry in Italy. The reduced aid measures finally approved consisted of Lit 989 000 million in the form of new capital, Lit 400 000 million in the form of a loan bearing an interest relief grant of 10 %, both provided to EFIM (Ente parteci- pazioni e finanziamenti industrie manifatturiere) for its aluminium activities, grants of Lit 48 100 million and a loan of Lit 7 900 million bearing interest relief to the State-owned aluminium smelter in Bolzano. One of the conditions on the basis of which the Commis- sion decided to terminate the two procedures in question was that the Italian Government would provide no further aid ‘in whatever form to the State-owned -aluminium industry in Italy until“the end of 1988. This conditional Commission decision. was communi- cated to the Italian - Government by letter dated 13 January 1987. On 2 May 1985, EFIM acquired the loss-making alumi- nium undertaking Comsal (Compagnia sarda alluminio Spa), mainly involved in the production of rolled semi- finished products. By Atticle 3 (11) of Law No 910 of 22 December 1986 ('), the Italian Govermnment authorized EFIM to issue a debenture loan amounting to Lit 150 000 million. The interest on the loan as well as any other charges were paid by the State. Moreover the -loan would gradually be converted into equity capital upon payment of each repayment- instalment. By decision of CIPE of 18 September 1987 (3), the Italian authorities instructed EFIM to use Lit 100 000 million of the debenture loan-in question to finance investments in Aluminia and Comsal, two State-owned aluminium undertakings. The Italian Government’s authorization to EFIM was not notified to the Commission in accordance with Article 93 (3) of the EEC Treaty. I The Commission, having learned of the Italian Govern- ment’s decision to provide funds for investments in the State-owned' aluminium industry under ‘very favourable terms, requested the notification of this measure under Article 93 (3) of the EEC Treaty by letter dated -27 October 1987. The Italian Government replied by letter dated 29 March 1988, in which it expressed the opinion that an increase in EFIM’s endowment fund, financed by means of -a debenture loan at the expense of the State did not consti- tute State aid in any manner and need not therefore be () Gazzetta Ufficiale della Repubblica Italiana No 301, 30. 12. 1986, supplemento ordinario n. 1. () Gazzetta Ujg‘ia’ale della Repubblia Italiana No 245 of 20. 10. 1987, p. 3.