No L 40/22 Official Journal of the European Communities 10. 2. 87 COMMISSION DECISION of 29 July 1986 on aid proposed by the Rheinland-Pfalz Land Government for a fibre processing firm in Scheuerfeld (Only the German text is authentic) (87/99/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 the above Article, and having regard to those comments, Whereas : I By memorandum dated 29 May 1985 the Government of the Federal Republic of Germany asked the Commission to authorize the award of a capital grant of DM 1 170 000 to a fibre-processing firm in Scheuerfeld for an extension investment costing DM 15,6 million, of which the grant would cover 7,5 %. On 28 June 1985 the Commission asked the Federal Government for further information, which it supplied by memorandum dated 31 October 1985. The investment involved plant and machinery for the manufacture of coated wood fibre and hard fibre mouldings for the interior trim of motor vehicles. The project would create 50 permanent jobs. Although the investment was not being undertaken in an assisted area, either under the Federal/Land Government Joint Programme (‘Gemeinschaftsaufgabe) or under the regional aid scheme, the Rheinland-Pfalz Government wished to award a capital grant for it because of — the above-average unemployment (in 1984, 8 % above the national average) and the threat to steel industry jobs in Betzdorf employment office sub-district, of which Scheuerfeld is part, — the above-average unemployment in the Altenkirchen employment office sub-district which is only 5 km away and lies in a Joint Programme assisted area (in 1983 to 1984) unemployment there had averaged 40,1 % above the national average), — threatened steel industry redundancies in another neighbouring employment office sub-district, Wissen, and in the Siegerland. After a preliminary scrutiny, the Commission was of the opinion that the planned award fell within Article 92 (1) of the Treaty and could not be deemed compatible with the common market under the exception clause of Article 92 (3) (c) because the economic and social situation in Betzdorf employment office sub-district was not so bad that aid could be said to be necessary to attract develop- ment, as the exception clause required. This was inferred from an analysis of the figures the Commission had for average unemployment in the Betzdorf employment office sub-district over the five-year period 1980 to 1984 and in September 1985, and the changes in the rate of unemployment over the period, the number of people travelling to work at the plant and travel-to-work patterns in the sub-district generally, average per capita gross value added at factor cost over the years 1980 and 1982 in the labour market region Siegen in which Betzdorf is situated, and whose situation was therefore relevant to that in Betz- dorf, and average gross pay levels in manufacturing industry for 1983 in Betzdorf sub-district. Being of the opinion that the planned award did not qualify for application of the exception clause of Article 92 (3) (c), the Commission decided to open the procedure laid down in Article 93 (2). By letter dated 6 December 1985 it asked the Federal Government to submit its observations, and by letters dated 7 February 1986 invited comments from the other Member States. Comments were also invited from other interested parties by a notice published in the Official Journal of the European Communities (). II In its observations sent by letter dated 7 January 1986, the Federal Government stated that the unemployment rate in Betzdorf was still very high, but that the main reason for the need to provide new jobs in the area was the threat to over 400 steel industry jobs in the Betzdorf employment office sub-district at Mudersbach which was only seven kilometres away from Betzdorf, and to jobs in the steel works at Wissen only 10 kilometres away. It was feared that, with the steel industry job losses, the unem- ployment rate in the Betzdorf employment office sub-dis- trict would rise to over 20 % above the national average in the next few years. () OJ No C 34, 14. 2. 1986, p. 2.