L 221/28 Official Journal of the European Communities 8. 8. 98 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 20 May 1998 concerning aid granted by France to the Crédit Lyonnais group (notified under document number C(1998) 1454) (Only the French text is authentic) (Text with EEA relevance) (98/490/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Articles 92 and 93 thereof, Having regard to the Agreement on the European Economic Area, and in particular Articles 61 and 62 thereof, Having, in accordance with the abovementioned Articles, given the interested parties notice to submit their observa- tions ('), Whereas: 1. INTRODUCTION Crédit Lyonnais (CL) is a publicly owned financial group operating in the banking sector. Since 1992 it has ex- perienced considerable difficulties which led the State in 1994 to grant it aid in the form of a capital increase and the creation of a hive-off vehicle for property assets worth about FRF 40 billion. In 1995 other assets were hived off () OJ C 390, 24. 12. 1996, p. 7. amounting to a total of approximately FRF 190 billion (3, the losses being covered by State guarantee. These measures were the subject of Decision 95/547/EC, in which the Commission decided on 26 July 1995 to approve on certain conditions the State aid in question, provided that the net cost to the State did not exceed FRF 45 billion (*). In response to CL’s deteriorating financial situation, the French authorities, in September 1996, submitted a plan to grant emergency aid totalling nearly FRF 4 billion in order to avoid serious adverse effects. On 25 September 1996 the Commission decided to approve the emergency aid and at the same time to initiate the Article 93(2) procedure (*) with regard to the other recov- ery measures recommended to CL. In that context it would examine the compatibility of any restructuring measure in the light of all the relevant information — including that on which Decision 95/547/EC was based and the obligations imposed by that Decision on France — and of any new facts, including the failure to meet certain conditions, the new arrangements proposed and the additional compensating measures. The same day, Mr Van Miert, Member of the Commis- sion, sent a letter to the French Minister, M. Arthuis, informing him of the inevitable difficulties associated with examination of the new restructuring plan for the () Including the FRF 40 billion of assets hived off in 1994. () OJ L 308, 21. 12. 1995, p. 92. () OJ C 390, 24. 12. 1996, p. 7. The decision was notified to the French authorities by letter dated 16 October 1996, ref. No SG(96) D/9029.