No C 153/6 Official Journal of the European Communities 22. 6. 90 
STATE AID 
NN 90/89 
(Spain) 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 153/05) 
Commission communication, pursuant to Article 6 (4) of 
Decision No 322/89/ECSC of 1 February 1989, estab­
lishing Community rules for aid to the steel industry, to 
other Member States and interested parties regarding aid 
which Spain has decided to grant to Acerinox SA, a steel 
manufacturer. 
By letter dated 11 April 1989 from its Permanent Repre­
sentation, the Spanish Government informed the 
Commission that Acerinox SA might be the beneficiary 
of an aid proposal. The aid would consist in a grant of 
Pta 533 325 900 for an investment programme costing 
Pta 9 540 805 000. 
By letters dated 18 May and 27 October 1989, the 
Commission firstly informed the Spanish authorities that 
its letter referred to above did not contain sufficient 
information for it to be regarded as a notification 
pursuant to Decision No 322/89/ECSC of 1 February 
establishing Community rules for aid to the steel 
industry, and secondly requested them to inform it as 
soon as possible if the Commission was to regard the 
abovementioned communication as a notification, 
pursuant to Article 6 (1) of the said Decision, of an aid 
proposal applying to the steel sector a regional aid 
scheme already approved by the Commission in 
accordance with the provisions of the EEC Treaty. 
Despite the reply dated 22 November 1989 from the 
Permanent Representation in which the Spanish 
Government requested it be given until 12 December 
1989 to reply to the letter dated 27 October 1989, that 
deadline expired and no reply has been received to date. 
The aid proposal was subsequently duly registered as 
non-notified. 
By letter dated 19 January 1990 from its Permanent 
Representation, the Spanish Government informed the 
Commission, first that its communication should be 
considered a notification pursuant to Article 6 (1) of 
Decision No 322/89/ECSC and second, that part of the 
investment programme amounting to Pta 1 570,7 million 
would be earmarked for environmental protection and be 
allocated aid of Pta 237,1 million, or 15 %. 
Since, in order to qualifiy as a notification the communi­
cation from the Spanish Government dated 11 April 
1989 should have fulfilled certain formal conditions, notably details concerning the intentions of the notifying 
Government, the Commission considers that the aid 
proposal constitutes an unnotified measure. In the 
absence of notification in good and due form, the aid 
proposal in question is therefore illegal. 
The Commission would draw the attention of the 
Spanish Government to the fact that any aid granted 
illegally, that is to say, before the Commission has taken 
a final decision under the procedure, could be subject to 
a recovery order 
The Commission also notes that the aid in question 
would be granted at least in part to operational 
investments in the steel industry. 
The Commission considers, however, that regional aid 
for investments by steel undertakings in Spain cannot be 
deemed to be compatible with the proper functioning of 
the common market pursuant to Article 5 of Decision 
No 322/89/ECSC and is therefore caught by the 
prohibition on aid in Article 4 (c) of the ECSC Treaty. 
In the case in point, the Commission considers that the 
proposal to grant aid to Acerinox SA would be covered 
by the prohibition inasmuch as it would be for opera­
tional investments. 
The Commission also notes that part of the aid would be 
awarded for operational investments in environmental 
protection. 
It would remind the Spanish Government that aid to 
steel undertakings for the protection of the environment 
cannot be regarded as Community aid unless it satisfies 
the tests of Article 3 of Decision 322/89/ECSC. 
However, on the basis of information provided in the 
communications referred to above, the Commission 
considers it is not in a position to determine whether the 
aid to defray expenditure on the protection of the envi­
ronment satisfies the conditions in question. 
The Commission would stress in particular that the 
information does not show whether the expenditure 
concerns plant that has been in operation for at least two 
years before the entry into force of the legal standards 
on environmental protection, or whether the expenditure 
entails an increase in production capacity 
Consequently, the Commission is unable at this stage, on 
the basis of the information supplied, to determine 
whether in the case in question the aid could be 
considered wholly or partly compatible with Decision 
No 322/89/ECSC. 
22. 6. 90 Official Journal of the European Communities No C 153/7 
The Commission hereby informs the Spanish 
Government that it has opened the procedure provided 
for in Article 6 (4) of Decision No 322/89/ECSC in 
respect of the aid in question. The Commission gives the 
Spanish Government notice, as part of that procedure, to 
submit its comments within one month from the date of 
this communication. 
The Commission would also inform the Spanish 
Government that it is publishing a notice in the Official 
Journal of the European Communities inviting other Member States and interested parties to submit their 
comments. 
The Commission hereby gives the other Member States 
and interested parties notice to submit their comments on 
the measures in question within one month from the date 
of publication of this notice to: 
Commission of the European Communities, 
200, Rue de la Loi, 
B-1049 Brussels. 
The comments will be communicated to Spain.