14. 11. 90 Official Journal of the European Communities No L 314/17 COMMISSION DECISION of 20 June 1990 concerning aid which the Italian authorities plan to grant to the Tirreno and Siderpotenza steelworks (N 195/88 — N 200/88) (Only the Italian text is authentic) (90/555/BCSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, Having regard to Commission Decision No 3484/85/ ECSC of 27 November 1985 establishing Community rules for aid to the steel industry ('), and in particular Article 6 (4) thereof, ' Having given the interested parties notice to submit their comments in accordance with the abovementioned Article, and having regard to those comments, Whereas : I 1. By letter dated 20 April 1988, the Italian authorities notified the Commission, pursuant to Article 6 (1) of Decision No 3484/85/ECSC, of two plans to grant aid to the Tirreno and Siderpotenza steelworks. As regards the Tirreno steelworks, the aid concerns an investment of Lit 1 671 million (approximately ECU 1,1 million) for energy conservation, which would benefit from a soft loan of Lit 668 million, representing an inte- rest subsidy of Lit 501 million (approximately ECU 330 000) borne by the State, and a public subsidy of Lit 334 million (approximately ECU 220 000). / As regards the Siderpotenza steelworks, the aid concerns an investment of Lit 2 550 million (approximately ECU . 1,68 million) for improving the environment, which would benefit from a soft loan of Lit 1 021 million, repre- senting an interest subsidy of Lit 867 million (approxima- tely ECU 570 000) borne by the State, and a public subsidy of Lit 765 million (approximately ECU 504 000). 2. By letter dated 22 June 1988, the Commission requested further details concerning the planned aid, i.e. the nature of the investments aided, and the exact terms (rates, duration) of the loans applied for. The letter also pointed out that aid for investment in enaérgy conversa- tion does not qualify for any of the exceptions provided for in the steel aid code. The Italian authorities were also () OJ No L 340, 18. 12. 1985, p. 1. ~ asked to state whether, as regards Siderpotenza, the aid was to be granted under a general scheme aimed at bringing plants into line with new environmental stan- dards, and to describe the standards in question. Provision for such aid is made by Article 3 of Decision No 3484/ 85/ECSC and is the only possible provision under which exemption could be granted for aid to protect the envi- ronment, provided that the aid intensity does not exceed 15 % net grant equivalent of the investment. II The Italian authorities did not reply to that letter. As a result, the Commission was unable immediately to assess whether the proposed aid was compatible with the common market. It therefore decided to open the proce- dure provided for in Article 6 (4) of Decision No 3484/ 85/ECSC and informed the Italian authorities thereof by letter dated 13 January 1989. The other Member States and interested parties were informed through the publica- tion of a notice in the Official Journal of the European Communities (%). 3. By telex message dated 9 August 1989, the Italian authorities informed the Commission, as part of the procedure, that it was planned to grant Tirreno a subsi- dized loan, not yet paid, of Lit 688 million at 4,25 % over a period of nine years. The total public contribution, including interest, would be Lit 387,44 million, or approximately ECU 255 000. Siderpotenza was to receive a subsidized loan, not yet paid, of Lit 1 020 million at 4,25 % over a period of 10 years. The interest borne by the State would total Lit 673,2 million, or approximately ECU 438 000. The telex message also stated that the aid would be granted under the general aid scheme for the development of the Mezzogiorno established by Law No 183 of 2 May 1976 - and would, according to the Italian authorities, therefore comply with the steel aid code. Although the Law on the Mezzogiorno generally allows aid to be granted for envi- ronmental protection, it does not specifically include the provisions of the steel aid code on this matter. ' () OJ No C 73, 23. 3. 1990, p. S.