No L 183/36 Official Journal of the European Communities 3.7.92 COMMISSION DECISION of 18 December 1991 on aid by Germany to the Deggendorf textile works (Only the German text is authentic) (92/330/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 to the parties concerned to submit their comments in accordance with Article 93, Whereas : On 25 February 1991, pursuant to Article 93 (3) of the EEC Treaty, the German Permanent Representation noti- fied the Commission of a plan to grant aid to the firm Textilwerke Deggendorf GmbH. The firm is mainly active in the production of synthetic fibres, a sector in which the relevant Community rules require the prior notification of all aid proposals. The aid was to be financed by the ‘Bayerisches regionales Forderprogramm approved by the Comm1ssmn by letter dated 21 December 1988. Further information regarding the proposed investment are requested from the German authorities by letter dated 14 March 1991. The reply was received by the Commis- sion on 8 May 1991. By letter dated 27 June 1991 the Commission informed the German Government that it had decided to initiate Article 93 (2) proceedings in respect of the aid and asked the German Government to submit its comments. Interested third parties were informed of the Commis- sion’s decision through publication of a notice in the Official Journal of the European Communities('). The aid relates to investment to be carried out in the firm Pietsch, whose capital was bought by Textilwerke () OJ No C 207, 8. 8. 1991, p. 6. Deggendorf GmbH for DM 1 when it was threatened with closure in 1989. Pietsch, which specializes exclusively in the manufacture of textile curtains, has been subjected by its new owner to a take-over and modernization plan to be supported' financially by the Land of Bavaria. The investment to be aided, amounting to DM 11,95 million, will allow the maintenance of the 134 existing jobs and the creation of 15 new jobs in Pietsch. The take-over and modemization plan, which was, initiated in July 1989 when the firm’s assets were taken over, is to extend over three years and to .involve the : carrymg-out of DM 11,95 million in investment, inclu- ding DM 2 million for real estate investment and DM 4 million for the ‘purchase of machinery specifically designed for the manufacture of curtains. Deggendorf is to receive from the Bavarian Ministry for Economic Affairs two soft loans (4,5 % interest) financed under the regional programme of the Land and with a three-year grace period. The first loan, amounting to DM 2,8 million, is to be for 15 years and the second, amoun- ting to DM 3 million, for eight years. The net grant equivalent of the interest rate subsidy may be put at 3,46 % in the case of the first loan and 2,77 % in the case of the second. The public loans will finance 48,53 % of the investment, to be completed by July 1992. On the basis of the information available to it, the Commission examined the competition policy impact of the financial and accounting relationship between " Deggendorf and Pietsch. The Commission was not able to determine whether a perfectly clear distinction could be. established between the production of synthetic fibres and the new invest- ment. However, it took the view that the aid was liable indirectly to favour Deggendorf, which manufactures products that may not in principle receive aid under the Community rules applicable to synthetic fibres.