89/305/EEC: Commission Decision of 21 December 1988 concerning aid from the French Government to an undertaking in the motor vehicle sector - Peugeot SA (Only the French text is authentic)

• Articles: 4

Article 1

The aid in the form of an interest subsidy on the FIM loan of FF 500 million in support of investments totalling FF 1 167,1 million granted to Peugeot SA and notified to the Commission on 30 April 1985 is unlawfull for breach of Article 93 (3) of the EEC Treaty. In addition, the aid is incompatible with the common market pursuant to Article 92 (1).

Article 2

The French Government is hereby required to withdraw the aid element contained in the FIM loan referred to in Article 1, either by recovering the loan or by applying market interest rates to it; the rate shall correspond to the Crédit national rate for equipment loans applicable on the date the FIM loan was granted (14,75 %). The French Government shall in any event recover the interest subsidy, amounting to FF 107,81 million, which was granted on the loan and from which PSA has benefited up to the date of adoption of this Decision.

Article 3

The French Government shall inform the Commission of the measures taken to comply with this Decision within two months from its notification.

Article 4

This Decision is addressed to the French Republic.

Done at Brussels, 21 December 1988.

For the Commission

Peter SUTHERLAND

Member of the Commission