L 20/30 Official Journal of the European Communities 27. 1. 98 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 21 October 1997 concerning aid granted by the Region of Sardinia (Italy) to shipping companies in Sardinia (Only the Italian text is authentic) (Text with EEA relevance) (98/95/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 93(2) thereof, Having regard to the Agreement establishing the Euro- pean Economic Area, and in particular point (a) of Article 62(1) thereof, Having given the parties concerned the opportunity to submit their comments, in accordance with the above- mentioned Articles ('), Whereas: By letter of 24 June 1996 (3, the Commission informed the Italian authorities of its decision to initiate the proce- dure provided for in Article 93(2) of the EC Treaty in respect of an unlawful aid scheme set up by the region of Sardinia, in favour of shipping companies. In opening the procedure, the Commission, on the basis of the information at its disposal, has expressed serious doubts as to the compatibility of the aid, for the following reasons: — the aid scheme contains provisions which involved discrimination on the grounds of nationality in that () OJ C 368, 6. 12. 1996, p. 2. (®) See footnote 1. ship operators were obliged, inter alia, as an effective condition of aid, to employ Sardinian seafarers on board their vessels, — the scheme conflicts with the principle of freedom of establishment since aid was conditional, inter alia, on operators having their head office in Sardinia, — the scheme involves aid to encourage investment in ships in a way which is liable to infringe Community rules. II Following the opening of the procedure, the Italian Government submitted comments to the Commission by letter of 31 October 1996. The Sardinian authorities submitted comments by letters of 11 October 1996 and 22 January 1997. No comments were submitted by other Member States or third parties within the time limit of one month from publication of the decision to open the procedure. It may be noted, however, that a number of third parties submitted comments outside this deadline. In their comments, the Italian and Sardinian authorities did not contest the objections of the Commission. They also informed the Commission of amendments to the aid scheme which, according to them, would meet the objec- tions of the Commission. The main amendment is made by Regional Law No 9 of 15 February 1996 of the Region of Sardinia. It is to be noted that these amendments, including Law No 9/1996, are not the subject of this Decision and will be dealt with separately.