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.