L 159/58 Official Journal of the European Communities 3.6.98 COMMISSION COMMISSION DECISION of 16 September 1997 on State aid for Gemeinniitzige Abfallverwertung GmbH (notified under document number C(1997) 2903) (Only the German text is authentic) (Text with EEA relevance) (98/353/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement establishing the Euro- pean Economic Area, and in particular Article 62(1)(a) thereof, Having given the parties concerned the opportunity to submit their comments, in accordance with Article 93 of the EC Treaty, Whereas: On 15 December 1995, in response to several complaints, the Commission initiated proceedings pursuant to Article 93(2) of the EC Treaty against aid for the Aachen company Gemeinniitzige Abfallverwertung GmbH (GAV). GAV is a non-profit-seeking enterprise operated by Sozialwerk Aachener Christen eV. It operates on the waste disposal market, where, as part of the Germany dual system (Duales System Deutschland — DSD), it collects and sorts recyclable waste and sells it as secondary raw materials. GAV competes in this sector with profit- seeking private firms. They consider that GAV has displayed aggressive market behaviour, which is why they lodged complaints with the Commission. GAV normally employs between 40 and 60 persons, 25 % of whom are handicapped and 50 % of whom are long- term unemployed persons who are difficult to place in employment. These ‘problem’ categories, who are not selected by GAV itself but by the local social services and labour office, are given contracts of employment for a limited period. The aim in employing them with GAV is to train such persons and subsequently to reintegrate them into the ‘normal’ labour market. So as to be able to perform this particular task of training and reintegrating persons facing special problems, GAV also employs specialist staff (social workers, educational staff) to look after them. From 1987 to 1995, GAV employed and trained a total of 440 persons through the use of tem- porary employment contracts. In 1993, GAV’s turnover amounted to DEM 2,8 million, equivalent to 0,004 % of the overall German market, whose total turnover was DEM 75 billion. GAV had a turnover of DEM 3,6 million in 1994 and a turnover of DEM 4,1 million in 1995. The company’s balance sheet total was DEM 4,7 million in 1995. Until 1992, GAV performed the collection of recyclable waste (which at that time was a purely municpal function) solely for the city of Aachen and received from the city an amount to offset the costs involved in performing this activity. Since GAV was running up substantial deficits, the city of Aachen decided to integrate it into the new municipal waste-disposal plan. The city of Aachen’s decision was based on the conclusions and recommenda- tions of an independent consultant whose job it was to submit annual reports to the city of Aachen on GAV’s economic situation and, if necessary, recommendations for improving its viability and hence reducing the finan- cial support for GAV provided by the city of Aachen. The consultant’s report for 1992 recommended that GAV’s activities should be integrated in the German dual system (DSD), which is a non-State-assisted private-sector system for the collection of packaging waste and is based on an