20. 7. 84 Official Journal of the European Communities No L 192/35 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 16 May 1984 concerning the proposal by the Italian Government to award aid to an engine and tractor manufacturer (Only the Italian text is authentic) (84/364/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice to the parties to submit their comments as required by the above provision, and having regard to those comments, Whereas : By letter dated 6 September 1983 the Italian Govern- ment notified the Commission of its intention of awarding aid under Law No 675/77 to an engine and tractor manufacturer. The firm in question planned to install a flexible manufacturing system which would be used initially to produce a new range of engines. The project costs involved building work and the purchase of numeri- cally controlled machine tools and other equipment. The new flexible production line, together with exist- ing plant, would lead to a net increase in the firm’s engine production capacity. The flexibility the invest- ment would give the firm in adoptimg to market re- quirements would enable it to lower its overall profit- ability threshold and so improve its competitive posi- tion on the market. The new engine, which embodied numerous user improvements, had been developed amid considerable R & D competition between differ- ent firms and would give an advantage to the firm putting the new product on the market. The project was estimated to cost a total of Lit 46 344 million and it was proposed to grant an 8,4 % interest subsidy on a five-year loan covering half that amount. On a preliminary scrutiny the Commission considered that the award did not fulfil the eligibility conditions for aid under Law No 675/77, which the Commission had approved on 18 January 1983. It therefore opened the procedure provided for in Article 93 (2) of the EEC Treaty and by letter dated 23 December 1983 gave the Italian Government notice to submit its comments. I The Italian Government replied to the Commission’s letter opening the Article 93 (2) procedure by letter dated 9 February 1984. It argued that the project accorded with the objectives of the programme adopted by the Interministerial Industry Policy Committee (CIPI). The flexibility the investment would give to the production process held distinct