31.12. %4 Official Journal of the European Communities No L 386/13 COMMISSION DECISION of 5 December 1994 on the German authorities’ proposal to award aid to Textilwerke Deggendorf GmbH, Thiiringen (Only the German text is authentic) {Text with EEA relevance) (94/1074/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, ’ Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 93 (2) thereof, Having regard to the Agreement establishing the European Economic Area, and in particular subparagraph (a) of Article 62 (1) thereof, Having, in accordance with the abovementioned Articles, given notice to the parties concerned to submit their comments to it, Whereas: By letter dated 4 December 1992, pursuant to Article 93 (3) of the Treaty and the 1991/92 code on aid to the synthetic fibres industry as in force on that date (1), the German Government notified the Commission of a proposal to award aid to Textilwerke Deggendorf GmbH (TDG), in support of investments totalling DM 112 000 000 (ECU 58 million) in buildings at TDG’s newly-acquired plant in Leinefelde, Thiiringen, and equipment for spinning polyamide and polyester staple fibres into single yarn containing at least 85 % by weight of staple fibres of nylon or other polyamides. The single - yarn would then be sold to carpet manufacturers, etc. The proposed aid comprises a grant of DM 23 460 000 {ECU 12,15 million) under the Joint Task Scheme for the improvement of the regional economic structure, an investment tax allowance of DM 6 696 000 (ECU 3,45 million) under the Investment Tax Law and an interest subsidy on a loan of DM 14 652 000 (ECU 7,60 million) from the Kreditanstalt fiir Wiederaufbau. (1) OJ No C 179, 16. 7. 1992, p. 3. The Commission decided on 24 March 1993 to open the procedure provided under Article 93 (2) of the Treaty in respect of this proposed aid. In taking this decision, the Commission considered that on the information provided by the German Government, it was not clear if any aspects of the investment that would be supported by the proposed aid were within the scope of the code on aid to the synthetic fibres industry or the Community framework for aids to the textile industry. Given the uncertainty, the proposed aid to TDG appeared likely to distort competition and to affect trade among Member States and, therefore, to be incompatible with the common market. The Commission also noted that the proposed aid would be likely to be of indirect benefit to TDG, as the owner of the plant at Leinefelde. By Decision 86/509/EEC (2), the Commission decided that aid, comprising a grant of DM 6 120 000 and an interest rate subsidy on a loan of DM 11 000 000, awarded by the German authorities to TDG between 1981 and 1983 was illegal and incompatible with the common market, and required the aid to be recovered by the German Government. Until the aid was recovered, TDG’s competitiveness would continue to be artificially enhanced. For this reason, in Decision 91/391/EEC (3) and Decision 92/330/EEC (4), on - two proposals by the German authorities to award aid to TDG, the Commission decided in each case that the aid was compatible with the common market but required the German authorities to suspend payment of the aid until they had recovered the aid that was the subject of Decision 86/509/EEC. The German Government has appealed to the European Court of Justice for the annulment of Decision 91/391/EEC, and TDG has appealed against that Decision and Decision 92/330/EEC, so that neither is yet final in law. h (2) OJ No L 300, 24. 10. 1986, p. 34. (3) OJ No L 215, 2. 8. 1991, p. 16. (4) O] No L 183, 3. 7. 1992, p. 36.