No L 91/32 Official Journal of the European Communities 9. 4. 83 COMMISSION COMMISSION DECISION of 16 February 1983 on aid granted by the Belgian Government to a firm manufacturing ceramic sanitary ware (Only the Dutch and French texts are authentic) (83/130/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing he European Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice to the parties concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, Whereas : The Belgian Government, through one of its regional agencies has decided to assist a ceramic sanitary ware firm located in La Louviere. The aid is in the form of the acquisition of a Bfrs 475 million holding in the firm’s capital by a public regional holding company. The Commission, having learned that the aid was being granted, reminded the Belgian Government by telexes dated 8 April and 17 June 1982 of its obliga- tions under Article 93 (3) of the EEC Treaty, which requires prior notification of aid measures. No answer was received. On 14 September 1982 the Commission, finding the Belgian Government had granted the aid without complying with the procedure laid down in Article 93 (3) of the EEC Treaty, decided to initiate the procedure provided for in Article 93 (2). The Commission gave the Belgian Government notice to submit its comments by 23 October 1982. By letter dated 19 November 1982, the Belgian Government confirmed that the aid decision had been taken on 3 August 1981. It also stressed that the purpose of the aid was to help reconstitute the firm’s capital and reserves, so that it could continue its activi- ties while a restructuring plan for the industry was being formulated. Pending the implementation of this plan, measures had already been taken to rationalize the firm’s production, with a consequent loss of 200 jobs. In the course of the consultations of the other parties concerned, the Governments of our Member States and three trade associations in the ceramic sanitary ware industry told the Commission that they shared its concern over the proposed aid. A Dutch firm also stressed the serious distortions of competition which would result from the aid granted by the Belgian Government. The aid in this case is such as to affect trade between Member States and to distort or threaten to distort competition within the meaning of Article 92 (1) of the EEC Treaty by favouring the undertaking concerned and the production of ceramic sanitary ware and tableware. A substantial proportion of the firm’s output is exported to other Member States and consequently trade between Member States is affected by the aid granted by the Belgian Government. The prohibition on State aid laid down in Article 92 (1) of the EEC Treaty applies to injections of capital both by the central government itself and by other public agencies under the central government’s autho- rity. In this instance, the firm’s financial situation and the over-capacity in the ceramic industry, in particular the branch producing sanitary ware, constituted handicaps indicating that the firm would probably have been unable to raise on the private capital markets the funds essential to its survival.