58 OfficialJournaloftheEuropeanCommunities
13.1.72 OfficialJournaloftheEuropeanCommunities NoL10/22
COMMISSION DECISION
of15December1971
ontheabolition,pursuanttoArticle93(2)oftheEECTreaty,ofBelgianaidtounder­
takingsindifficulty
x (OnlytheDutchandFrenchtextsareauthentic)
(72/34/EEC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuro­
peanEconomicCommunity,andinparticularthe
firstsubparagraphofArticle93(2)thereof;
WhereasanAgreementwasconcludedon9May
1968betweentheBelgianStateandtheSocietena­
tionaldecreditaI'industrie(SNCI)concerningthe
grantingofcreditstoundertakings indifficulty;
whereasunderthatAgreementtheBelgianStateem­
poweredSNCItocarryoutonitsbehalfcredittrans­
actionsatnormalinterestrateswithundertakings
whoseprofitabilityisinseriousdoubtandwhichin
viewoftheirsituationcannotobtainhelpfrompublic
orprivatecreditinstitutionsonthetermsnormally
imposedbysuchinstitutions;
WhereastheSNCIadvancestheamountsrequired
forthecreditsinquestion;whereasiftheundertak­
ingdoesnotfulfilitsobligations-repaymentsand
interest-theBelgianStatepaystheSNCIthe
amountsinarrears,chargingthemagainstbudgetap­
propriations ;
Whereastheoverallceilingforthesecreditswas
originally500millionBelgianfrancsandwasthen
increasedto800million;whereasthatceilingwas
reachedduringtheautumnof1969;
Whereas,whenthecreditsprovidedforunderthe
Agreementwereexhausted,furthercreditswere
grantedtoundertakingsindifficultybuttheywere,
inthatinstance,directlychargedagainstArticle
600.1.A'Brusselsandspecialdifficulties'ofthe
EconomicAffairsbudget;whereas,moreoftenthat
not,therateofinterestrequiredforthosecreditsis
slightlybelowthemarketrate;
Whereas,sincethebeginningof1971,nonewcase
hasbeendealtwithagainstappropriations charged
directlytotheEconomicAffairsbudget;Whereaswhatisactuallyinvolvediseitheracredit
guaranteedbytheStateandgrantedthroughthe
SNCI,oracreditgranteddirectlybytheBelgian
State,inbothcasescoveredbypublicfunds;whereas
asubstantialpartoftheguaranteedcreditwillentail
budgetaryexpendituresincetheBelgianauthorities
themselvesadmitthatitmustbeconsideredaslost;
whereas,furthermore,therateofinterestrequired
hasbeeninanumberofcasesbelow,themarketrate;
Wherasthegrantingofthesecreditstoundertakings
indifficultyhasdisturbedthenormalplayofmarket
forcesbysuppressingtheireffect,namelythatofdriv­
inginefficientundertakingsoutofbusiness;whereas
artificialsupportforthoseundertakingsmayplace
anundueburdenonthestructureofsectorswhich
haveadjustmentdifficulties;whereasthecommercial
activitiesofthosemarginalundertakingsandthe
pricestheysetinordertoremaininbusinessare
likelytodisturbthemarket;whereastheaidisthere­
foresuchastoaffectcompetitionandtradewithin
theCommunity ;
Whereas,consequently ,theconditionsforapplying
theprohibitionprovidedforinArticle92(1)ofthe
EECTreatyapply;
Whereasthefieldofapplicationofthemeasuresin
questionisnotcoveredbyanyofthederogationsset
outinArticle92(2)and(3)oftheEECTreaty;
whereasinparticularthosemeasuresofaidcouldbe
appliedtoalleconomicactivitiesandinanypartof
Belgium;whereastheycannotthereforequalifyunder
anyofthederogationsprovidedforinthatArticle,
ifonlybyreasonoftheirfieldofapplication;
Whereasthosemeasuresofaidhave,furthermore,an
essentiallyprotectivepurpose-preventionofthe
socialconsequencesoftheclosureofcertainunder­
takings-apurposewhichcannotreconciledwith
theconceptofthedevelopmentofeconomicand
regionalactivitieswhichisaprerequisitefordero­
gationsunderArticle92(3)(a)or(c)oftheEEC

OfficialJournaloftheEuropeanCommunities 59
HASADOPTEDTHISDECISION :
Article1
TheKingdomofBelgiumshallforthwithdiscontinue
providingcreditstoundertakingsindifficulty,such
creditshavingbeenoriginallygrantedunderthe
Agreementof9May1968betweentheBelgianState
andtheSocietenationaledecreditaI'industrieand
subsequentlyunderArticle600.1.A'Brusselsandspe­
cialdifficulties'oftheEconomicAffairsbudget.Treaty;whereastheextentto1whichsuchaidalso
promotesreorganization cannotbeassessedforlack
ofinformationonthatcount;
Wheras,inaccordancewiththeprocedurelaiddown
inArticle93(2)oftheEECTreaty,theKingdomof
BelgiumandtheotherMemberStateswere,byletters
oftheCommissionof2Marchand10March1971,
respectively ,givennoticetosubmittheircomments;
whereasthecommentsoftheBelgianGovernment
forwardedon25March1971,26May1971,16June
1971,and29September1971donotenabletheCom­
missiontomodifyitspositionasregardsthemeasures
inquestion;
Whereasitisnecessarytoensurethattheabolition
oftheaidinquestionisdefinitive;whereasitshould
notbepossibleforthisaidtobegrantedthroughany
otherprocedure;whereas,therefore,adecisionbased
onthefirstsubparagraph ofArticle93(2)should
beadopted,Article2
ThisDecisionisaddressedtothe4KingdomofBel­
gium.
DoneatBrussels,on15December1971.
FortheCommission
ThePresident
FrancoM.MALFATTI