Article 4
(1) provides that production aid in favour of shipbuilding may be considered compatible with the common market provided that the total amount of aid granted for a contract does not exceed, in grant equivalent, a common maximum ceiling which, as stated in paragraph 2, is fixed by the Commission. Article 4 (4) further stipulates that the ceiling applies to the aid covered by Article 3 (2). In view of the fact that the ceiling for 1989 had been set by the Commission at 26 % (16 % for ships costing less than ECU 6 million), that the Belgian authorities had been informed of this by letter of 27 December 1988 and by the publication of a notice in the Official Journal of the European Communities (5) and that the credits granted by the Belgian Government represented a grant equivalent of 35 % (23,5 % in respect of two vessels), it is quite clear that the Belgian Government has not complied with the rules set out in Directive 87/167/EEC and hence with those of the EEC Treaty, HAS ADOPTED THIS DECISION: