No L 41/18 Official Journal of the European Communities 12. 2. 94 COUNCIL REGULATION (EC) No 317/%4 of 20 December 1993 withdrawing tariff concessions in accordance with Article 23 (2) and Article 27 (3) (a) of the Free Trade Agreement between the Community and Austria (Grundig Austria GmbH) : THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas a Free Trade Agreement between the European -Economic Community and the Republic of Austria, hereinafter referred to as ‘the Agreement’, was signed at Brussels on 22 July 1972(); Whereas the Agreement eliminated customs duties in trade between the Community and Austria in respect of industrial products originating in the Contracting Parties within the meaning of Protocol 3 to the Agreement; Whereas the Agreement requires the Contracting Parties to provide fair conditions of competition for trade; Whereas Article 23 (1) (iii) of the said Agreement stipu- lates that any public aid affecting trade between the Community and Austria which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods is incompatible with the proper functioning of the Agreement; Whereas, in a declaration published at the same time as the Agreement, the Community stated that it would assess any practices contrary to the abovementioned Article on the basis of criteria arising from the application of Article 92 of the Treaty; Whereas in January 1993 the Commission learned that in May 1991 and June 1992 the City Council of Vienna had granted a subsidy of a maximum of 100 million Austrian schillings to Grundig Austria GmbH towards the costs of carrying out an investment programme of 1 000 million schillings at the Vienna plant of the Grundig group ; Whereas the aided investment programme was intended to rationalize production and expand output in the Vienna plant; Whereas Council Regulation (EEC) No 2837/72 of 19 December 1972 on safeguard measures provided for in the Agreement between the European Economic () OJ No L 300, 31. 12. 1972, p. 2. Community and the Republic of Austria(?) provides that in such cases the Commission must assess the case, either on its own initiative or at the request of a Member State, and give its opinion on whether or not the practices in question are compatible with the Agreement; Whereas the initial information requested by the Commission was sent by the Austrian authorities in February 1993; Whereas after assessment of the case and further contacts with the Austrian authorities which took place in February 1993, the Grundig-Vienna case was officially referred to the Joint Committee on 25 February 1993, in accordance with Article 27 (2) and (3) (a) of the Agree- ment ; Whereas the Commission informed the Austrian author- ities at the Joint Committee meeting that, on the basis of the information initially submitted, it considered the State aid in question to be incompatible with Article 23 of the Agreement, and that, in the light of the criteria incorp- orated in the method adopted by the Commission for the application of Article 92 (3) (a) and (c) of the EEC Treaty to regional aid, the investment programme by Grundig Austria GmbH at Vienna would not be eligible for regional aid; Whereas at the Joint Committee meeting, both parties agreed to hold a meeting of experts with a view to clari- fying certain elements of the case and to seeking a mutually acceptable solution ; Whereas further information requested by the Commis- sion was sent by the Austrian authorities in March 1993 ; Whereas on 23 April 1993 the Commission transmitted to the Austrian authorities an official note dated 16 April 1993 reiterating the view that the State aid in question was incompatible with Article 23 of the Agreement; Whereas on 13 May 1993 a meeﬁng of experts took place but no mutually acceptable solution was arrived at; Whereas the further information subsequently sent by the Austrian authorities in May 1993 does not make it possible for the Commission to change its view that the aid in question is incompatible with Article 23 of the Agreement ; () OJ No L 300, 31. 12. 1972, p. 94. Regulation as last amended by Regulation (EEC) No 638/90 (O] No L 74, 20. 3. 1990, 1). : p-