31. 12. 82 Official Journal of the European Communities No L 386/29 COMMISSION DECISION of 24 November 1982 on aid granted by the French Government to the equalization funds in the pigmeat (Only the French text is authentic) (82/952/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the Euro- pean Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having regard to Council Regulation (EEC) No 2759/75 of 29 October 1975 on the common organization of the market in pigmeat (1), as last amended by Regulation (EEC) No 2966/80 (2), and in particular Article 21 thereof, Having given notice to the parties concerned to submit their comments in accordance with the first - subparagraph of Article 93 (2), and having regard to those comments (3), I Whereas, having been informed of a plan to grant aid to the equalization funds in the pigmeat sector, the Commission, on 8 May and 12 June 1981, requested the French Government, in accordance with Article 93 (3) of the Treaty, to notify it of the aid measure in question; Whereas the planned aid consisted in the payment of FF 146 million to the equalization funds in order to improve their cash-flow situation; Whereas, the abovementioned aid falls within the scope of Articles 92 to 94 of the Treaty by virtue of Article 21 of Regulation (EEC) No 2759/75; Whereas the Commission received no reply from the French authorities and, having concluded a preliminary examination on the basis of the docu- ments at its disposal and having been unable to find the aid measure in question compatible with Article 92 of the Treaty, it initiated the procedure (") OJ No L 282, 1.11.1975, p. 1. () OJ No L 307, 18. 11. 1980, p. 5. (®) OJ No C 187, 28.7. 1981, p. 2. provided for in Article 93 (2) of the Treaty in respect of that aid measure and, under the same procedure, gave notice to the parties concerned to submit their comments; II Whereas the French Government, in its reply dated 7 August 1981 in response to the letter of notice, stated that the payment was an exceptional mea- sure and that it was intended to help the funds overcome the major cash-flow problems they were experiencing as a result of the fall in market prices; Whereas several Member States and other parties concerned forwarded their comments to the Com- mission; whereas they all took the view that the French measure was such as to distort competition and affect trade between Member States to an extent contrary to the common interest and that it contravened the rules of the common market organizations; I Whereas, although advances to equalization funds have been allowed in the past, the payment of a non-returnable aid constitutes a novation and pro- duces, indirectly, the same result as a subsidy which ensures a guaranteed price only for farmers who are members of those funds; Whereas, accordingly, the measure is likely to improve production and marketing facilities for the producers concerned as compared with producers in the other Member States who do not receive such aids; Whereas, accordingly, the measure in question affects Community trade; whereas it therefore meets the criteria for the application of Article 92 (1) of the Treaty; Whereas, moreover, there is a common organiza- tion of the market in the sector in question and