L 205/68 Official Journal of the European Communities 22.7.98 COMMISSION COMMISSION DECISION of 21 January 1998 granting conditional approval to aid which France has decided to grant to Société francaise de production (notified under document number C(1998) 230) (Only the French text is authentic) (Text with EEA relevance) (98/466/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 on the European Economic Area, and in particular Article 62(1)(a) thereof, Having given the interested parties notice, in accordance with the abovementioned Articles, to submit their obser- vations ('), Whereas: 1. INTRODUCTION This Decision follows on from the Commission Decision of 12 February 1997 (%) to initiate proceedings under Article 93(2) of the Treaty. The proceedings and this Decision concern aid of FRF 2 500 million (ECU 379 million) (}), comprising industrial restructuring aid of FRF 1200 million (ECU 182 million) and financial restruc- turing aid of FRF 1 300 million (ECU 197 million) which France intends to grant to Société francaise de production (SFP). At the time of the initiation of proceedings, and pending implementation of the restructuring plan submitted, the Commission had authorised rescue aid of FRF 350 million to ensure the short-term survival of SFP. SFP is a supplier of technical services to the audiovisual sector, especially producers of television programmes. When the national radio and television broadcasting () OJ C 126, 23. 4. 1997, p. 4. (%) See footnote 1. () ECU I = FRF 66. company ORTF was split into several companies in 1974, television production was taken over by the newly estab- lished company SFP, while broadcasting became the responsibility of several other organisations. SFP, however, continued to enjoy a protected position on the French audiovisual market. At the moment, SFP is wholly controlled by the French State. In 1986 audiovisual production was opened up to competition in France. SFP, which was poorly prepared for the new competitive environment, lost turnover and got into financial difficulties. In the meantime, the work- force was cut back sharply, from 2 515 in 1985 to 996 at the end of 1997. The losses made since 1986 have been offset by the State and the other public shareholders. In four separate operations since then, the French authorities have granted aid to SFP totalling FRF 2 370 million. Of that amount, the Commission approved aid totalling FRF 1 260 million by decisions of 27 February and 25 March 1992. It took a negative decision (97/238/EC (*) (to which reference should be made for further details) in respect of the balance of FRF 1 110 million, chiefly owing to the lack of any restructuring plan. The French authorities gave the Commission an undertaking that they would recover the aid, currently amounting to FRF 1300 including interest, as soon as possible. The total aid granted to date to SFP, including the indus- trial restructuring aid covered by this Decision, amounts to FRF 3 570 million (FRF 2 370 million plus FRF 1 200 million) or ECU 541 million. () OJ L 95, 10. 4. 1997, p. 19.