10. 2. 87 Official Journal of the European Communities No L 40/17 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 29 July 1986 on aid proposed by the Rheinland-Pfalz Land Government for a metalworking firm in Betzdorf (Only the German text is authentic) (87/98/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 11 April 1985 the Government of the Federal Republic of Germany asked the Commission to authorize the award of a capital grant of DM 1 176 750 to a metalworking firm in Betzdorf for an extension investment costing DM 15,69 million, of which the grant would cover 7,5 %. On 14 May 1985 the Commission asked the Federal Government for further information, which it supplied by memorandum dated 21 August 1985. The investment involved plant and machinery for the manufacture of beer kegs, metal filing cabinets and radiators, improvements in the distribution system and an extension of computerization. Altogether, DM 5,72 million of the investment cost was related to building work and DM 9,97 million to plant and machinery. The project would create over 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 Land Govern- ment wished to award a capital grant for it because of the above-average unemployment both in Betzdorf (in 1984 unemployment in Betzdorf employment office sub-dis- trict had been 8 % above the national average) and in the neighbouring areas of the State (where, in 1983 to 1984, unemployment had averaged 25 % above the national average), and because of the threat to steel industry jobs in the northern part of Altenkirchen district and the Sieger- land. The Federal Government considered that the aid was unlikely to have any effect on the common market as only 10 % of the enterprise’s output on average was exported. 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 development, as the exception clause required. This was inferred from an analysis of the figures the Commission had for average unemployment in the Betzdorf employ- ment office sub-district over the five-year period 1980 to 1984, 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, and 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 Betzdorf.