No L 86/76 Official Journal of the European Communities 31. 3. 89 (Acts whose publication is not obligatory) COMMISSION COMMISSION - DECISION of 23 December 1988 concerning aid that the Italian Government proposes to grant to the public steel sector (Only the Italian text is authentic) (89/218/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal-and Steel Community, and in particular the first and second paragraphs of Article 95 thereof, Having consulted the Consultative Committee and with the unanimous assent of the Council, Whereas : Under Commission Decisions No 257/80/ECSC (') and No 2320/81/ECSC () establishing Community rules for aids to the steel industry considerablé State aid was authorized by the Commission in favour-of the Italian public steel enterprise Finsider during the period 1980 to 1985, in order to assist it in carrying out a restructuring programme which involved in particular the closure of hot rolling capacities of 4 604000 tonnes, representing 23,6 % of its production capacity in 1980, and a reduction in employment of 43 200 persons, i.e. 32 % of its 1980 level of employment, and which was assessed to have the. capability under normal market circumstances and by strict implementation and management control to restore the concern’s viability. In spite of these major structural changes- the viability target was not attained. during the following years by Finsider, which, by contrast to its main competitors in () OJ No L 29, 6. 2. 1980, p. 5. () OJ No L 228, 13. 8. 1981, p. 14. other Member States, continued to accumulate losses and had difficulties: in maintaining its market position. An expert investigation into the reasons underlying this failure by Finsider to attain viability established that it had been mainly caused by an industrial and commercial structure still insufficiently competitive, by delays in the implementation of investments and " by. insufficiently rigorous management. Consequently Finsider’s losses in 1987 — a year in which most other flat product. producers of the Community generated enough gross profits to assure not only a sufficient level -of self-financing but also net profitable results — rose by Lit 1 700 thousand million, of which the flat product subsidiary Italsider alone representing the main activities of Finsider counted for Lit 1 000" thousand million. By the end of 1987 the total debts of the Finsider Group, including its ECSC as well as its EEC activities, had reached the level of Lit 10 030 thousand million, ie. 104 % of consolidated turnover. The continued credit extension, predominantly from credit institutions: subject to state control, to a public undertaking which having reached a level of indebtedness which exceeds its yearly turnover is unable to finance -its activities from own resources, led the Commission on 7 May 1988 to initiate the infringement procedure of Article 88 of the ECSC Treaty against the Italian: Government as regards the net credit extensions: of Lit 1155 thousand million granted by public and private credit institutions to Finsider during 1987. This decision reflected the Commission’s opinion that these debt extensions had not been granted under circumstances