31. 12. 82 Official Journal of the European Communities No L 386/27 COMMISSION COMMISSION DECISION of 20 October 1982 on the aid which the Belgian Government proposes to grant to the steel firm Laminoirs de Jemappes SA (Only the French and Dutch texts are authentic) (82/951/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the Euro- pean Coal and Steel Community, Having regard to Commission Decision No 2320/ 81/ECSC of 7 August 1981 establishing Commu- nity rules for aids to the steel industry (1), and in particular Article 8 (3) thereof, Having given notice, in accordance with Article 8(3) of the abovementioned Decision, to the parties concerned to submit their comments (2), and having regard to those comments, Whereas : I By letter dated 28 December 1981 the Belgian Government, in accordance with Article 8 (1) of Decision No 2320/81/ECSC, notified the Commis- sion of its intention to grant aid to the steel firm Laminoirs de Jemappes. The proposed aid to the firm comprises : (a) operating aid to cover the firm’s trading losses between 1980 and 1984, of up to Bfrs 670 million in the form of capital increases and a contribution of conditional participating convertible bonds, and (b) pursuant to the Eco- nomic Expansion Law, aids for the firm’s invest- ment programme (a State guarantee on a loan of Bfrs 275 million, interest-rate subsidies of seven points over a five-year period on a loan of Bfrs 206-25 million and tax reliefs). This investment (') OJ No L 228, 13.8. 1981, p. 14. (®) OJ No C 109, 30. 4. 1982, p. 3. programme is aimed at achieving various rationali- zation measures and improvements and involves expenditure of approximately Bfrs 275 million. After an initial scrutiny of that aid, in the light of the criteria laid down in Articles 2, 3 and 5 of Decision No 2320/81/ECSC, the Commission reached the following conclusions on the basis of the information provided by the Belgian Government : ’ — the restructuring programme for which the aid would be given appears to consist of the ordi- nary investments which any firm must make as part of its normal activity, rather than invest- ments which would change the structure of the firm in question and thus restore its competi- tiveness and viability, — the effect of these investments on the firm’s production capacity is not specified, but in any event they are not likely to result in any reduc- tion in capacity, — the aid in question is substantial in relation to the volume of investments and the size of the firm and could be justified only if a vigorous restructuring effort were made, — the duration of the operating aid exceeds the maximum of two years laid down in Article 5 of the Decision. For these reasons the Commission considered that the aid in question was not compatible with the orderly functioning of the common market and therefore initiated in respect of that aid the proce- dure provided for in Article 8 (3) of Decision No 2320/81/ECSC. Accordingly, the Commission, on 26 February 1982, sent a letter constituting formal notice to the Belgian Government to submit its comments.