89/348/EEC: Commission Decision of 23 November 1988 on aid granted by the French Government to an undertaking manufacturing equipment for the motor vehicle industry - Valéo (Only the French text is authentic)

• Articles: 4

Article 1

The FF 115 488 000 portion of the FIM loan granted to Valéo and notified to the Commission on 28 June 1985, comprising elements of aid within the meaning of Article 92 (1) of the EEC Treaty, is unlawful since it infringes the procedural provisions laid down in Article 93 (3) of the EEC Treaty. In addition, it is incompatible with the common market within the meaning of Article 92 (1).

Article 2

The French Government shall abolish the aid elements contained in the incompatible part of the FIM loan referred to in Article 1 by requiring that part to be repaid or by applying to it a market-related interest rate, such rate corresponding to that of the equipment loans granted by the Crédit National at the time when the FIM loan was granted. The French Government shall at all events require, without delay, the repayment of the interest subsidy attaching to the incompatible part of the loan and amounting to FF 11 255 600, which Valéo received up to the date of adoption of this Decision.

Article 3

The French Government shall inform the Commission, within two months of being notified of this Decision, of the measures it has taken to comply with it.

Article 4

This Decision is addressed to the French Republic.

Done at Brussels, 23 November 1988.

For the Commission

Peter SUTHERLAND

Member of the Commission

(1) OJ No L 77, 19. 3. 1987, p. 43.

(2) OJ No L 152, 12. 6. 1987, p. 27.

(1) In determining whether the investments in question involved genuine innovation at Community level, the Commission based itself on the same criteria that allowed it to adopt a favourable attitude on the following FIM loans: Jaeger (letter to the French Government SG(88)D/3990 of 30 March 1988), Merlin-Gerin (SG(88)D/3763 of 28 March 1988), Thomson Télécommunications (SG(87)D/16201 of 28 December 1987), Bull (SG(86)D/15202 of 15 December 1986), Matra-Harris (SG(86)D/15198 of 15 December 1986) and La Radiotechnique (SG(86)D/15531 of 18 December 1986).