OF THE COMMISSION .
III
THE AIDS PROPOSED BY THE NETHERLANDS GOVERNMENT ARE AS FOLLOWS :
- INVESTMENT AID :
- GRANTS OF FL 212 MILLION ,
- A NON-SUBSIDIZED LOAN OF FL 150 MILLION ,
- A LOW INTEREST LOAN OF FL 24 MILLION ,
- ACQUISITION OF A SHAREHOLDING OF FL 130 MILLION ( TO BE REGARDED AS CONTAINING AN AID ELEMENT IF THE SUBSCRIPTION PRICE EXCEEDS THE STOCK EXCHANGE PRICE OF THE FIRM'S SHARES ) ,
- GOVERNMENT GUARANTEES ON POSSIBLE ECSC LOANS ;
- AID FOR CONTINUED OPERATION :
- A PARTICIPATIVE LOAN OF FL 570 MILLION .
TO JUSTIFY THE AID , THE NETHERLANDS GOVERNMENT HAS PROPOSED A NET CAPACITY REDUCTION FOR HOT-ROLLED PRODUCTS OF 250 000 TONNES , MAINLY TO BE ACHIEVED BY CLOSURE OF THE DEMKA MILL .
IV
THE SECOND INDENT OF ARTICLE 2 ( 1 ) OF DECISION NO 2320/81/ECSC PROVIDES THAT THE RESTRUCTURING PROGRAMMES OF AIDED UNDERTAKINGS MUST RESULT IN AN OVERALL REDUCTION IN THEIR PRODUCTION CAPACITY . THE REVISION OF THE NETHERLANDS PLAN SINCE ITS NOTIFICATION INVOLVES A CAPACITY REDUCTION FOR HOT-ROLLED PRODUCTS OF 250 000 TONNES BETWEEN 1980 AND 1985 .
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 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 , AFTER TAKING INTO CONSIDERATION THE RESTRUCTURING EFFORT TO DATE AND THE AID GRANTED PRIOR TO 1980 , AN EXTRA EFFORT MUST BE ACCEPTED BY THE NETHERLANDS STEEL INDUSTRY . ACCORDINGLY , THE NETHERLANDS STEEL INDUSTRY MUST REDUCE ITS CAPACITY FOR HOT-ROLLED PRODUCTS BY 700 000 TONNES OVER AND ABOVE THE REDUCTION OF 250 000 TONNES PROPOSED . 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 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 . TO ACHIEVE THE OBJECTIVE OF BRINGING CAPACITY INTO LINE WITH DEMAND , THE CREATION OF 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