Article 1
The aid for the Santana restructuring plan which is set out below is compatible with Article 92 (3) (c) of the EC Treaty and with Article 61 (3) (c) of the EEA Agreement: (a) a loan of Pta 6 800 million granted by the Spanish Instituto de CrΓ©dito Oficial (ICO) and paid illegally; (b) another loan of Pta 6 800 million granted by the Instituto de Fomento de AndalucΓa (IFA), a public body owned by the Regional Government of Andalusia, of which Pta 6 716 million was paid illegally. This loan is to be converted into capital; (c) social aid to redundant workers, totalling Pta 8 412 million, of which Pta 4 527 million was paid illegally: - a preretirement plan involving 348 workers (Pta 3 351 million), - an early retirement scheme involving 358 workers (Pta 4 765 million, of which Pta 4 231 million was paid illegally), - a voluntary redundancy scheme involving 148 workers (Pta 296 million, paid illegally), provided that the following conditions are fulfilled. 1. The idle paint shops shall be dismantled by September 1997, as notified to the Commission. There shall be no increase in capacity, which is limited to 50 000 vehicles per year, before 1 January 1998. 2. There shall be no tax concessions in respect of the losses which are offset by the aid (social aid or capital increase). 3. No additional aid in the form of capital injections or discretionary aid shall be granted in support of the restructuring. 4. The Spanish Government shall send the Commission an annual report on the implementation of the restructuring plan, and in particular the evolution of the costs, the receipt of the aid by the company and the fulfilment of the conditions laid down. The report, together with Santana's annual report and accounts, shall be forwarded by the end of May following the report year.