1999/395/EC: Commission Decision of 28 October 1998 on State aid implemented by Spain in favour of SNIACE SA, located in Torrelavega, Cantabria (notified under document number C(1998) 3437) (Text with EEA relevance) (Only the Spanish text is authentic)

• Articles: 4

Article 1

The following State aid which Spain has granted to Sociedad Nacional de Industrias y Aplicaciones de Celulosa Espanola SA (SNIACE) is incompatible with the common market:

(a) in so far as the rate of interest was below market rates, the agreement 8 March 1996 (as amended by agreement of 7 May 1996) between SNIACE and the Social Security Treasury to reschedule debts covering ESP 2903381848 in principal, as further amended by agreement of 30 September 1997 to reschedule debts covering ESP 3510387323 in principal; and

(b) in so far as the rate of interest was below market rates, the agreements of 5 November 1993 and 31 October 1995 between SNIACE and the wage guarantee fund FOGASA covering ESP 1362708700 and ESP 339459878 respectively (including interest).

As regards the other matters that were the subject of the proceedings opened pursuant to Article 93(2) of the EC Treaty, namely a loan guarantee approved totalling ESP 1 billion approved by Law No 7/93, the financing arrangements for the planned construction of a waste treatment plant and the partial cancellation of debts by the Torrelavega City Council, these measures do not constitute aid and the procedure can be closed. However, Spain must inform the Commission within a period of two months from the date of this decision of the modified assessments made by Torrelavega City Council in respect of SNIACE's business taxes for the years 1995 to date. As regards the unpaid environmental levies during the period 1987 to 1995, the Commission will take a separate decision in due course.

Article 2

1. The Kingdom of Spain shall take the necessary measures to recover from the recipient the aid referred to in Article 1 and unlawfully made available to it.

2. Recovery shall be effected in accordance with the procedures of national law. The sums to be recovered shall bear interest from the date on which they were made available to the recipient until their actual recovery. Interest shall be calculated on the basis of the applicable reference rate.

Article 3

The Kingdom of Spain shall inform the Commission within two months of the date of notification of this Decision of the measures taken to comply with it.

Article 4

This Decision is addressed to the Kingdom of Spain.

Done at Brussels, 28 October 1998.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ C 49, 14.2.1998, p. 2.

(2) OJ C 49, 14.2.1998, p. 2.

(3) Advocate-General Jacobs indicates in his opinion of 24 September 1998 in Case C-256/97 D. M. Transport SA that "it is clear that in certain circumstances continued and generous tolerance of late payment of social security contributions may confer an appreciable commercial advantage on the recipient undertaking and in extreme cases be tantamount to relief from those contributions" (point 33).

(4) For example in the Tubacex Case; OJ L 8, 11.1.1997.

(5) The reference rates which have subsequently applied to Spain are as follows: 1.8.1996 to 1.11.1996: 13,45 %; 1.11.1996 to 1.1.1997: 11,40 %; 1.1.1997 to 1.8.1997: 10,56 %; 1.8.1997 to 1.1.1998: 6,22 %; 1.1.1999 to date 0,620 %.

(6) OJ C 368, 23.12.1994, p. 12.