L 29/28 Official Journal of the European Communities 3.2.1999 COMMISSION COMMISSION DECISION of 14 July 1998 concerning State aid in favour of ‘Porcelanas del Norte SAL (Ponsal)/Comercial Europea de Porcelanas SAL (Comepor) (notified under document number C(1998) 2364) (Only the Spanish text is authentic) (Text with EEA relevance) (1999/88/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having given notice in accordance with Article 93 of the Treaty to interested parties to submit their comments, Whereas: On 30 April 1997 the Commission, having received several complaints since the beginning of 1995 and having sent Spain a letter of formal notice on 30 April 1996, decided to initiate proceedings under Article 93(2) in respect of the aid granted to Porcelanas del Norte SAL (Ponsal). Ponsal, which is a producer of porcelain, tableware and ornamental ceramics, was set up in 1957 in Pamplona (Navarre). In the mid-1980s it encountered financial diffi- culties, which lasted for many years. To remedy this situ- ation, it drew up a restructuring plan in 1994, which provided in particular for the firm to move from the centre to the outskirts of Pamplona and for the modern- isation of its plant through investment in new machinery. Under the restructuring, Ponsal had received from the Government of Navarre considerable amounts of aid which, however, had not been previously notified to the Commission. According to press reports submitted by the complainants, the aid consisted of a bank guarantee (ESP 1200 million), a job-creation grant (ESP 100 million), a 20 % investment subsidy for investment in fixed assets and a waiver of tax and social security contributions by the public authorities (ESP 3 100 million). In March 1995, in response to a preliminary request for information, the Spanish authorities confirmed in writing that the Government of Navarre had indeed granted aid in order to support the restructuring of Ponsal. The aid, however, had been granted under Regional Law (Ley Foral) 1/1985 of March 1985, which introduced a scheme for rescuing and restructuring firms in difficulty and which preceded Spain’s accession to the Community. The scheme had been notified to the Commission as existing aid in March and May 1986. The Commission had not objected to it so far. Since the Commission had serious doubts about whether to accept this reply or not, in particular with regard to the defence that the aid was based on an existing aid scheme, and since further requests for detailed information were answered reluctantly, it decided on 30 April 1996 to require Spain to demonstrate that the aid to Ponsal was part of an existing aid scheme. In their reply of July 1996, the Spanish authorities managed to provide the evidence requested. Among the different aid measures referred to by the complainants, however, only the guarantee of ESP 1200 million was covered by Regional Law 1/1985. For the other aid meas- ures under investigation, no justification could be found within the scheme.