AGREEMENT WITH THE CONCLUSIONS OF THE COMMISSION .
III
THE INVESTMENT AIDS SUBJECT TO THE PROCEDURE OF ARTICLE 8 ( 3 ) OF DECISION NO 2320/81/ECSC ARE :
- A GRANT OF DR 235 MILLION TO METALLOURGIKI HALYPS ,
- A GRANT OF DR 150 MILLION TO SIDENOR ,
- POSSIBLE GUARANTEES FOR ECSC LOANS .
THE GREEK GOVERNMENT HAS NOT PROPOSED ANY CAPACITY REDUCTION TO JUSTIFY THESE AIDS .
IV
THE SECOND INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT RESTRUCTURING PROGRAMMES MUST RESULT IN AN OVERALL REDUCTION IN THE PRODUCTION CAPACITIES OF THE UNDERTAKINGS IN RECEIPT OF AIDS . ACCORDING TO THE RETURNS MADE BY THE FIRMS TO THE COMMISSION'S ANNUAL INVESTMENT SURVEYS THEIR CAPACITIES TO PRODUCE HOT-ROLLED PRODUCTS WILL INCREASE FOR THE PERIOD 1980 TO 1985 BY 100 000 TONNES IN THE CASE OF METALLOURGIKI HALYPS AND BY 50 000 TONNES IN THE CASE OF SIDENOR .
THE SECOND INDENT OF ARTICLE 3 ( 1 ) PROVIDES THAT THE AMOUNT AND INTENSITY OF AIDS MUST BE JUSTIFIED BY THE EXTENT OF THE RESTRUCTURING EFFORT INVOLVED ; MOREOVER , THE CAPACITY REDUCTIONS WHICH ARE REQUIRED IN ORDER TO OBTAIN AN OVERALL CAPACITY REDUCTION AT A COMMUNITY LEVEL OF 30 TO 35 MILLION TONNES IN HOT-ROLLED PRODUCTS SHOULD BE DISTRIBUTED FAIRLY ; THIS LEVEL OF OVERALL CAPACITY REDUCTION IS IN VIEW OF THE GENERAL OBJECTIVES FOR STEEL , NECESSARY TO ALLOW A RETURN TO A LEVEL OF CAPACITY UTILIZATION WHICH IS CONSIDERED THE MINIMUM REQUIRED TO RESTORE THE VIABILITY OF THE COMMUNITY STEEL INDUSTRY UNDER NORMAL MARKET CONDITIONS ; ON THIS BASIS SUFFICIENT EFFORT MUST BE ACCEPTED BY THE GREEK STEEL INDUSTRY ; THEREFORE AN APPROPRIATE NET CAPACITY REDUCTION IN HOT-ROLLED PRODUCTS MUST BE PROPOSED IN FAVOUR OF THE TWO COMPANIES CONCERNED ; A DEADLINE SHOULD BE ESTABLISHED FOR THE IDENTIFICATION OF THE CLOSURES THAT WILL HAVE TO BE IMPLEMENTED .
V
THE COMMISSION MUST SUPERVISE THE GRANT OF AIDS AUTHORIZED AND OBSERVANCE OF THE CONDITIONS IMPOSED BY IT .
THE CAPACITY REDUCTIONS MUST BE OBTAINED BY THE CLOSURE OF PLANT PRODUCING HOT-ROLLED PRODUCTS AND THE COMMISSION MUST BE ABLE TO VERIFY THAT SUCH CLOSURE IS DEFINITIVE . THE NET CAPACITY REDUCTIONS TAKE INTO ACCOUNT ANY CAPACITY INCREASES THAT MAY RESULT FROM APPROVED INVESTMENT PROGRAMMES . IN THE CONTEXT OF THE REALIZATION OF THE OBJECTIVE OF ADAPTING PRODUCTION CAPACITY TO DEMAND , THE CREATION OF ANY NEW CAPACITY MUST BE COMPENSATED BY ADDITIONAL CLOSURES .
THE FIRST INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT AIDED UNDERTAKINGS MUST BE ENGAGED IN THE IMPLEMENTATION OF A RESTRUCTURING PROGRAMME WHICH IS CAPABLE OF RESTORING THEIR COMPETITIVENESS AND OF MAKING THEM FINANCIALLY VIABLE WITHOUT AID UNDER NORMAL MARKET CONDITIONS . THE COMMISSION MUST THEREFORE BE ASSURED THAT THE AIDS CONTRIBUTE TO RESTORING VIABILITY .
THE COMMISSION CAN ONLY AUTHORIZE AID FOR UNDERTAKINGS WHICH HAVE FULFILLED THE ENTIRETY OF THEIR OBLIGATIONS RESULTING FROM THE APPLICATION OF THE ECSC TREATY .
THE AUTHORIZATION OF