Article 2
The increases in the capital of Babcock Wilcox España SA of ESP 10000 million (EUR 60,1 million) and ESP 41000 million (EUR 246,4 million) decided by SEPI in 1997 and 1999 respectively constitute aid within the meaning of Article 87(1) of the Treaty. Both increases were unlawfully granted in breach of Article 88(3)(c) of the Treaty, except for a sum of ESP 16725 million (EUR 100,52 million) of the latter increase which has not yet been disbursed. The said aid nevertheless meets the conditions for exemption under Article 87(3)(c) of the Treaty, as set out in the Community guidelines on State aid for rescuing and restructuring firms in difficulty, and is therefore compatible with the common market.