TO ENSURE ECONOMIC SUCCESS AND VIABILITY ON THE EEC TEXTILE MARKET . IN THE COMMISSION' S OPINION, THOSE MARKET CONDITIONS ARE SUITABLE FOR ENSURING THE NORMAL DEVELOPMENT OF THE TEXTILE INDUSTRY WITHOUT STATE INTERVENTION .
18 WITH PARTICULAR REGARD TO FRENCH INDUSTRY, THE COMMISSION CITES A NUMBER OF ECONOMIC INDICATORS RELATING TO THE GROWTH OF INVESTMENT, OUTPUT AND EXPORTS WHICH DEMONSTRATE THAT THE SITUATION IN THE INDUSRY ALSO ENABLES UNDERTAKINGS TO INVEST USING THEIR OWN FINANCIAL RESOURCES AND WITHOUT RESORTING TO STATE AID . THE COMMISSION FURTHER STATES THAT MASSIVE RESTRUCTURING, RE-TOOLING AND THE INCREASED APPLICATION OF THE LATEST AVAILABLE TECHNOLOGY HAVE MADE THE FRENCH TEXTILE AND CLOTHING INDUSTRY MUCH BETTER ABLE TO MANUFACTURE HIGH-QUALITY PRODUCTS, AND THUS TO COMPETE INTERNATIONALLY .
19 IN EXAMINING THE DETAILED ARRANGEMENTS FOR IMPLEMENTING THE PROPOSED AID, THE COMMISSION OBSERVES THAT IT IS TO BE GRANTED TO FACILITATE INVESTMENT WHICH REDUCES THE COSTS NORMALLY ALLOWED FOR IN THE BUDGETS OF THE UNDERTAKINGS IN QUESTION . THE SPECIFIC INTENSITY OF THE AID ( 5.5 %) IS APPRECIABLE IN THE LIGHT OF THE TOTAL INVESTMENT COSTS OF A COMPANY, AND IT WOULD ENABLE UNDERTAKINGS BENEFITING UNDER THE SYSTEM TO REDUCE THEIR INVESTMENT COSTS SIGNIFICANTLY AND THUS TO MODIFY THEIR PRICES .
20 THE COMMISSION CONCLUDES FROM THOSE CONSIDERATIONS THAT SPECIFIC AIDS TO ASSIST THE TEXTILE AND CLOTHING INDUSTRIES IN THE COMMUNITY ARE, IN PRINCIPLE, NO LONGER JUSTIFIED AND THAT ANY NEW AID PROGRAMME FOR THAT SECTOR WOULD MERELY TRANSFER THE REMAINING STRUCTURAL PROBLEMS AND UNEMPLOYMENT FROM ONE MEMBER STATE TO ANOTHER . THE FRENCH GOVERNMENT' S PROPOSAL DOES NOT DEMONSTRATE THE EXISTENCE OF ANY PROBLEMS WHICH ARE SPECIFIC TO THE FRENCH TEXTILE AND CLOTHING INDUSTRIES AND, IN VIEW OF THE VOLUME OF FRENCH EXPORTS TO OTHER MEMBER STATES, THE RESULT WOULD BE A DISTORTION OF TRADE WHICH THE DETAILED ARRANGEMENTS FOR IMPLEMENTING THE AID WOULD NOT HELP TO COUNTERACT .
21 IT MUST BE CONCLUDED THAT THE ABOVE STATEMENT OF REASONS IS SUFFICIENTLY EXPLICIT AND DETAILED TO ENABLE THE FRENCH GOVERNMENT TO ACQUAINT ITSELF WITH AND APPRAISE THE COMMISSION' S REASONS AND TO ENABLE THE COURT TO REVIEW THE MERITS OF THE DECISION . IT FOLLOWS THAT THE SUBMISSION CHALLENGING THAT STATEMENT OF REASONS MUST BE REJECTED .
C - THE REFUSAL TO APPLY ARTICLE 92*(3)*(C )
22 ACCORDING TO THE FRENCH GOVERNMENT THE PROPOSED AID SHOULD HAVE QUALIFIED FOR THE EXEMPTION UNDER ARTICLE 92*(3)*(C ) OF THE TREATY, ACCORDING TO WHICH AID TO FACILITATE THE DEVELOPMENT OF CERTAIN ACTIVITIES MAY BE CONSIDERED COMPATIBLE WITH THE COMMON MARKET WHERE SUCH AID DOES NOT ADVERSELY AFFECT TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST . IN SUPPORT OF ITS SUBMISSION THE FRENCH GOVERNMENT CLAIMS INTER ALIA THAT THE SCHEME ENVISAGED ENTAILS THE REDISTRIBUTION OF RESOURCES WITHIN THE FRENCH INDUSTRY AND WOULD IN PRACTICE BE COMPLETELY NEUTRAL IN TERMS OF INTRA-COMMUNITY TRADE, THAT THE EFFECTS OF THE AID ARE INSIGNIFICANT AND THAT THE SCHEME BENEFITS UNDERTAKINGS WHICH ADJUST THEMSELVES TO COMPETITION FROM NON-MEMBER COUNTRIES WITH CHEAP