1a. The restructuring aid granted to CGM in the form of capital injections during the period from 1992 to 1996 is unlawful, having been granted in breach of the provisions of Article 93 (3) of the Treaty. However, the aid may be considered to be compatible with the common market, pursuant to Article 92 (3) (c) of the Treaty, provided that the French Government complies with the commitments and conditions set out in paragraph 2 of this Article.
1b. The additional restructuring aid to be paid to CGM in 1996 in the form of further capital injections is also considered to be compatible with the common market pursuant to Article 92 (3) (c) of the Treaty, provided that the French Government complies with the commitments and conditions set out in paragraph 2 of this Article.
2. The French authorities shall comply with the following conditions and commitments:
- until privatization has been completed CGM shall confine itself to operating only its current services;
- until privatization has been completed CGM shall confine itself, as far as the Indian Ocean is concerned, to operating capacity on a scale comparable with that used by the consortium, namely 9 000 TEU in both directions annually;
- the French authorities shall submit a report to the Commission after privatization or by 1 February 1997 at the latest; this report shall give details of the services operated by CGM, its transport capacity on those services and its operating revenue so that the Commission can check that the aid has not been used to support aggressive behaviour on the market or loss-making activities; the report shall also include details of the procedure leading up to privatization so that the Commission can check that the financial objectives set for the company have been met;
- until privatization has been completed, CGM shall not apply rates for any of its services which do not fully cover the additional operating costs; accordingly, the report to be submitted must include details of the operating returns for all the services operated by CGM, either by using its own vessels or by means of chartering agreements, up to the date on which privatization is completed;
- no further aid shall be granted to CGM and all aid granted shall be used for the physical and financial restructuring of the company;
- the CGM restructuring plan shall be implemented in its entirety, as agreed with the Commission.