No L 16/52 Official Journal of the European Communities 20. 1. 89 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 26 July 1988 on aids granted by the Italian Government to ENI-Lanerossi (Only the Italian text is authentic) (89/43/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice to the parties concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, Whereas : L In 1962, Lanerossi SpA was taken over by the State holding company Ente Nazionale Idrocarburi (ENI) both for the purpose of creating a vertically fully inteégrated textile group and to resolve the economic and financial problems of a number of private textile and clothing companies which for this purpose were in turn taken over by Lanerossi. Over the years, and by way of considerable restructuring efforts, it was possible to return some of these subsidiaries to viability so that they could be transferred to the private sector again. Certain other subsidiaries, however, remained loss-making .and continued to receive financial assistance in the form of loss compensations through the Italian Government in order to remain in business. This, particularly, was the case for four subsidiaries of Lanerossi SpA in the subsector of men’s outer wear: Lanerossi Confezioni (Arezzo, Macerata, Orvieto), Intesa (Maratea, Nocera, Gagliano), Confezioni di Filottrano (Ancona) and Confezioni Monti (Pescara). Between 1974 and 1979, the yearly losses of these firms grew from Lit 2 billion to Lit 39 billion and, in 1979, the Commission received an official complaint from the European Association of the Clothing Industry (AEIH) and later from other textile industry federations which considered that the continuing compensation of operating losses of these subsidiaries ’ would considerably distort competition in the Community. On the basis of a detailed examination of the situation and development of the State-owned manufacturers of men’s outer wear and taking into account the information provided by the Italian Government in this respect, the Commission took the view that the interventions in favour of these enterprises had to be considered as aids within the meaning of Article 92 (1) of the EEC Treaty. In its letter of 26 June 1980, it informed the Italian Government that these measures could only be granted an exemption from the incompatibility rule of Article 92 (1) provided that the assistance was granted for a limited period and under the condition that the restructuring programme as presented to the Commission was carried out for the purpose of reducing the capacities of the companies concerned and returning them to viability and to financial self-support in the short term. After having followed the subsequent development of the State-owned manufacturers of men’s outer wear very closely, the Commission, in a letter to the Italian Government dated 20 May 1983, considered that as regards a fifth subsidiary of Lanerossi in this sector, Lebole SpA, the financial assistance which had been given in order to compensate for its losses was matched by restructuring efforts already implemented and to be implemented shortly afterwards which were of such a kind as to exclude any simple rescue operation or operating aid. The Commission, therefore, concluded that