No L 181/42 Official Journal of the European Communities 13. 7. 85 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 2 April 1985 on the German Government’s proposal to grant an aid in favour of a producer of polyamide yarn situated in Neumiinster (Only the German text is authentic) (85/343/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 concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, Whereas : I By letter dated 5 November 1984, the Government of the Federal Republic of Germany notified the Commission, pursuant to Article 93 (3) of the EEC Treaty, of its intention to grant financial assistance to a producer of polyamide filament yarn and polyamide staple and carpet yarn situated in Neumiinster. The aid would be granted under the Law relating to investment subsidies (Investitionszulagengesetz) and would amount to DM 4,5 million, that is 10 % of the total investment to be undertaken by the company in question. Following an initial scrutiny, the Commission con- sidered that the proposed aid would not help to restructure the production facility in question within the meaning of the Commission’s synthetic fibre and yarn aid code of 1977 as extended in 1979, 1981 and 1983 as the assistance would neither lead to a decrease in capacity nor a conversion away from synthetic fibres and yarns. ' As the projected investment concerned only the modernization of the production facility and because in the notification of 5 November 1984 the German Government itself referred to the aid as being for the purpose of replacing certain machines which had been installed during the 1960s, the Commission also considered that the aid would equally not meet the conditions set by the 1971 and 1977 Community guidelines for aid to the textile, clothing and man- made fibre industry under which only restructuring efforts qualify for aid. Finally, the Commission considered that in a situation where the other Community synthetic fibre and yarn producers continued to undertake great efforts to adapt to the present market situation by considerably redu- cing capacities, the aid in question would not promote a development which from the Community point of view would be adequate to counteract its trade- distorting effects and that the aid — by favouring the undertaking in question in a sector where there is a high volume of trade and where competition is very keen — would be liable to affect trade between Member States and would, thus, be incompatible with the common market. Therefore, the Commission took the view that the aid did not meet the conditions necessary to benefit from one of the exceptions laid down in Article 92 and initiated the procedure provided for in the first sub- paragraph of Article 93 (2) of the EEC Treaty.