RESTRUCTURING PROGRAMME DOES NOT POINT TO A RETURN TO VIABILITY EXCEPT ON EXTREMELY OPTIMISTIC ASSUMPTIONS PARTICULARLY AS TO THE TREND OF SALES . SUCH ASSUMPTIONS ARE NOT SUPPORTED BY THE FORECASTS IN THE GENERAL OBJECTIVES FOR STEEL . IT IS HENCE DOUBTFUL WHETHER THE FIRM CAN RETURN TO VIABILITY IN THESE CIRCUMSTANCES . CONSEQUENTLY , AN ADDITIONAL RESTRUCTURING EFFORT MUST BE MADE , AIMED IN PARTICULAR AT TAKING OUT PLANT THAT IS OLD AND ILL-ADAPTED TO MARKET REQUIREMENTS . SUCH AN EFFORT IS ALL THE MORE WARRANTED SINCE BY VIRTUE OF THE SECOND INDENT OF ARTICLE 3 ( 1 ) AND THE THIRD INDENT OF ARTICLE 5 ( 1 ) OF DECISION NO 2320/81/ECSC , THE AMOUNT AND INTENSITY OF INVESTMENT AID AND AID FOR CONTINUED OPERATION MUST BE JUSTIFIED BY THE EXTENT OF THE RESTRUCTURING EFFORT ASSOCIATED WITH THEM .
IN SISMA'S CASE , THE PLANNED CONCENTRATION OF PRODUCTION ON ONE PLANT , ALREADY MODERNIZED , SHOULD HELP TO RESTORE ITS VIABILITY . HOWEVER , THE AMOUNT AND INTENSITY OF THE AID ARE NOT JUSTIFIED BY THE RESTRUCTURING EFFORT MADE , AS THIS IS REFLECTED IN PARTICULAR IN CAPACITY REDUCTIONS .
AS FAR AS THE AID TO THE ELECTRIC STEEL PRODUCERS IS CONCERNED , ARTICLE 1 OF DECISION NO 2320/81/ECSC PROVIDES THAT ALL AIDS TO THE STEEL INDUSTRY ARE COMPATIBLE WITH THE ORDERLY FUNCTIONING OF THE COMMON MARKET ONLY IF THEY RESPECT THE RULES SET OUT IN ARTICLES 2 TO 7 .
THE PAYMENT OF THE ELECTRICITY SURCHARGE ( SOVRAPPREZZO TERMICO ) BY THE GOVERNMENT FROM GENERAL TAXATION IS NOT A GENERAL SCHEME BUT ONE WHICH APPLIES SPECIFICALLY TO THE STEEL INDUSTRY . EVEN THOUGH THE COSTS OF THE VARIOUS FACTORS OF PRODUCTION MAY VARY FROM ONE MEMBER STATE TO ANOTHER , THIS DOES NOT JUSTIFY EXCLUDING THIS AID FROM THE SCOPE OF DECISION NO 2320/81/ECSC . THEREFORE , SUCH AID CAN BE CONSIDERED COMPATIBLE WITH THE PROVISIONS OF DECISION NO 2320/81/ECSC ONLY IF IT FORMS PART OF A RESTRUCTURING PROGRAMME INVOLVING CAPACITY REDUCTION . THE OTHER AIDS THAT IT IS PROPOSED TO GIVE FOR CONTINUED OPERATION CAN LIKEWISE ONLY BE JUSTIFIED BY THE ACCEPTANCE OF CAPACITY REDUCTIONS BY THE FIRMS RECEIVING THEM .
IN LINE WITH THE GENERAL OBJECTIVES FOR STEEL , AN OVERALL REDUCTION COMMUNITY-WIDE OF 30 TO 35 MILLION TONNES OF CAPACITY FOR HOT-ROLLED PRODUCTS IS NECESSARY TO RESTORE A LEVEL OF CAPACITY UTILIZATION THAT IS CONSIDERED THE MINIMUM REQUIRED TO SECURE THE VIABILITY OF THE COMMUNITY STEEL INDUSTRY UNDER NORMAL MARKET CONDITIONS . IT IS NECESSARY TO ENSURE THAT THIS OVERALL CAPACITY REDUCTION IS DISTRIBUTED FAIRLY . ON THIS BASIS , AN EXTRA RESTRUCTURING EFFORT MUST BE ACCEPTED BY THE ITALIAN STEEL INDUSTRY AS A WHOLE . IT IS NECESSARY TO SET A DEADLINE BY WHICH THE ADDITIONAL CLOSURES REQUIRED MUST BE IDENTIFIED .
V
THE COMMISSION MUST SUPERVISE THE GRANT OF AIDS AUTHORIZED AND COMPLIANCE WITH THE CONDITIONS IMPOSED BY IT .
THE CAPACITY REDUCTIONS MUST BE OBTAINED BY THE COMPLETE CLOSURE OF PLANT