1999/143/EC: Commission Decision of 14 July 1998 on State aid in favour of Fabricantes Vascos de Herramientas SA (Favahe SA) and its successors (notified under document number C(1998) 2362) (Only the Spanish text is authentic) (Text with EEA relevance)

• Articles: 4

Article 1

The ESP 825 million guarantee granted by the Basque Government to Fabricantes Vascos de Herramientas SA and its successors is unlawful since it was granted by the Basque Government in breach of the Spanish authorities' obligation to inform the Commission, in sufficient time to enable it to submit its comments, of any plans to grant or alter aid, as set out in Article 93(3) of the Treaty.

In accordance with Article 92(1) of the Treaty, the aid is incompatible with the common market, since it meets none of the conditions under which derogations can be granted contained in Article 92(2) and (3) of the Treaty.

Article 2

Spain shall ensure that the aid referred to in Article 1 is abolished and recovered in full within two months of the date of notification of this Decision.

The aid shall be recovered in accordance with the procedures and provisions of Spanish law, and include interest, from the date on which the aid was granted until the date it is actually repaid, with the rate applied being the reference rate used to calculate the net grant equivalent of regional aid in Spain.

These provisions shall be applied in such a way that the recovery required by Community law is not rendered practically impossible. Any procedural or other difficulties in regard to the implementation of the measure shall not have any influence on its lawfulness.

Article 3

The Spanish Government shall inform the Commission within two months of notification of this Decision of the measures it has taken to comply with it.

Article 4

This Decision is addressed to the Kingdom of Spain.

Done at Brussels, 14 July 1998.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ C 71, 7. 3. 1997, p. 2.

(2) OJ L 273, 25. 10. 1994, p. 22.

(3) Product No 4417; Declarant: Spain.

(4) OJ C 368, 23. 12. 1994, p. 12.

(5) Panorama of EU Industry 1997, Chapter 12.26.

(6) OJ C 318, 24. 11. 1983, p. 3.

(7) [1973] ECR 813.

(8) [1987] ECR 901.

(9) [1990] ECR I-959.

(10) Cited in note 9, paragraphs 58 to 63.