FACT THAT THE CAPITAL WAS SUBSCRIBED FOR REASONS CONNECTED WITH THE REORGANIZATION OF THE UNDERTAKING WITH A VIEW TO ADAPTING ITS PRODUCTION CAPACITY TO SUIT NEW MARKETS AND TO REDUCING ITS CAPACITY IN ITS TRADITIONAL SECTOR OF EQUIPMENT FOR THE FOOD INDUSTRY . THE BELGIAN GOVERNMENT SUBMITS THAT , IN THOSE CIRCUMSTANCES , THE IMPACT ON COMPETITION IN THE COMMUNITY COULD ONLY BE DE MINIMIS . THAT SUBMISSION THEREFORE CHALLENGES BOTH THE STATEMENT OF THE REASONS ON WHICH THE DECISION WAS BASED AND THE COMMISSION ' S ASSESSMENT OF THE EFFECTS OF THE AID .
20 THE COMMISSION REFERS TO ARTICLE 5 OF THE TREATY AND TO THE RECIPROCAL DUTY OF COOPERATION WHICH EXISTS BETWEEN THE MEMBER STATES AND THE COMMISSION . IT CONTENDS THAT , IN VIEW OF THE LACUNAE IN THE INFORMATION FURNISHED BY THE BELGIAN GOVERNMENT , IT WAS NOT POSSIBLE TO PROVIDE A FULLER STATEMENT OF REASONS ON WHICH THE DECISION WAS BASED . THE COMMISSION DENIES THAT A DE MINIMIS PRINCIPLE EXISTS WITH REGARD TO AID AND REJECTS THE VIEW THAT ACCOUNT MUST BE TAKEN OF THE UNDERTAKING ' S EXPORTS TO NON-MEMBER COUNTRIES . THE DECISIVE FACTOR IS THAT THE UNDERTAKING IN QUESTION WAS PRODUCING FOR A MARKET CHARACTERIZED BY OVERCAPACITY , WHICH INDUCED OTHER UNDERTAKINGS IN THE MEMBER STATES ALSO TO TURN TO THE SAME NON-MEMBER COUNTRIES .
21 AS REGARDS THE STATEMENT OF THE REASONS ON WHICH THE DECISION WAS BASED , THE COURT HAS CONSISTENTLY HELD THAT THE STATEMENT OF REASONS FOR A DECISION ADVERSELY AFFECTING AN UNDERTAKING MUST BE SUCH AS TO ALLOW THE COURT TO REVIEW ITS LEGALITY AND TO PROVIDE THE UNDERTAKING CONCERNED WITH THE INFORMATION NECESSARY TO ENABLE IT TO ASCERTAIN WHETHER OR NOT THE DECISION IS WELL FOUNDED .
22 DESPITE ITS CONCISE NATURE - WHICH IS DUE IN PART TO LACK OF COOPERATION BY THE BELGIAN GOVERNMENT - THE STATEMENT OF REASONS MAKES IT CLEAR THAT , IN ORDER TO ESTABLISH THAT THE TWO MATERIAL REQUIREMENTS WERE FULFILLED , THE COMMISSION TOOK ACCOUNT OF THE FACT THAT THE UNDERTAKING CONCERNED EXPORTED ABOUT 40% OF ITS OUTPUT TO OTHER MEMBER STATES , OF THE EXCESS PRODUCTION CAPACITY EXISTING IN THE MARKET IN QUESTION AND OF THE FACT THAT , IN THOSE CIRCUMSTANCES , THE AID GRANTED TO THE UNDERTAKING HAD THE EFFECT OF REDUCING ITS FINANCIAL COSTS BY COMPARISON WITH THOSE OF ITS COMPETITORS . IN THE ABSENCE OF ANY INFORMATION TO THE CONTRARY , THOSE FINDINGS ENTITLED THE COMMISSION TO CONCLUDE THAT THE AID IN QUESTION AFFECTED TRADE BETWEEN MEMBER STATES AND DISTORTED , OR THREATENED TO DISTORT , COMPETITION WITHIN THE MEANING OF ARTICLE 92 ( 1 ) OF THE TREATY .
23 IT MUST BE ADDED THAT THE FIGURES PROVIDED BY THE BELGIAN GOVERNMENT DURING THE PROCEEDINGS BEFORE THE COURT SHOW THAT THE COMMISSION ' S ASSESSMENT WAS BY NO MEANS INVALIDATED BY THE FACT THAT THE UNDERTAKING IN QUESTION WAS SMALL AND WAS ENDEAVOURING TO DIRECT ITS PRODUCTS TOWARDS NEW MARKETS AND