By Law of September 25, 1941, the National Institute of Industry (INI) was created, as an entity governed by public law, whose objective was to " propel and finance, in the service of the Nation, the creation and re-emergence of our industries ... ". The INI was configured as an instrument to support the economic autarky policy imposed by an authoritarian state. The Institute was to act in those sectors where the private employer was absent. A model of public initiative based on the principle of subsidiarity was therefore adopted which, combined, subsequently, with the nationalisation of non-profitable private companies, contributed to the growth, indiscriminate and heterogeneous, of the sector. public in Spain.

Years later, and still maintaining the basic principles of this conception of the public enterprise, the economic and social development experienced by Spain and the consequent opening to the outside forced to modify, progressively, the the legal regime of the INI to adapt it to the new situation. To this, the Decree-Law 24/1970, dated December 24, responded.

The promulgation of the Constitution and, consequently, the establishment of a social and democratic rule of law determines the overcoming of the previous model. To this end, the constitutional text recognises, in Article 128, the public initiative in economic activity. This is a recognition that brings as an inevitable consequence a reformulation of the role of the public enterprise. This new concept of public intervention in the economy is also driven by the entry of Spain into the European Communities in 1986. From this moment on, the public sector begins a progressive adaptation to Community law, the axes of which are the improvement of management and adaptation to a more competitive environment.

As a result of this new legal framework, an amendment of the rules applicable to the National Institute of Industry is made necessary: it is established in Article 123 of Law 37/1988 of December 28, of the State generals for 1989.

However, the diversity of situations in which the public companies of the INI were located and, consequently, the different strategies that required their action, together with the need to improve the management, determined the the need to rationalise the shareholding of the Institute to be the holder, differentiating those companies which were liable to be managed with business criteria of those other subject action to special schemes, arising from their particular situation. To this end, it was decided to separate from the set of industrial units of the INI those relating to companies which, in the future, due to the requirements of the single European market, had to develop their activities under free competition, in an anonymous company, participated by the INI, disengaged from the General Budget of the State: "Teneo, Sociedad Anonima". Instead, the direct participation of the INI was maintained in those companies subject to restructuring or conversion plans, operating in activities specifically regulated by the European Community.

Prior to this reordering of industrial public participations, the energy crisis of the late 1970s, as well as the need to coordinate the management of a major economic sector, imposed a diversification of activities that, for its uniqueness, advised the segregation of the INI of those commercial entities whose activity was developed in the hydrocarbon sector. To this end, and pursuant to Law 45/1981, of December 28, the National Hydrocarbons Institute (INH) was created as an entity governed by public law, which subject its activities to private law. The INH was entrusted with the management of public business activities in the field of hydrocarbons.

Also in this sector has been a reordering of activities, mainly motivated by the end of the public monopoly derived from the entry into Spain in the European Community. This has resulted in the formation of a business group: "Repsol, Sociedad Anonima". The INH has therefore fulfilled the objectives for which it was created.

The rationalisation of the public sector is, therefore, a continuous process whose ultimate aim is no other than to obtain greater efficiency, and therefore the survival of two institutes which, at present, have ended, is not justifiable. (a) taking as an essential function the holding of equity shares. This objective of efficiency also requires a distinction, functionally, of activities subject to specific Community rules for those operating in free competition markets. Far, therefore, to return to concepts that have already been overcome, it is intended to set up a less diversified public sector, which will concentrate its efforts on powerful industrial groups of national ownership and, above all, more competitive. Because an economically profitable public sector is also socially profitable. And the social profitability of the public enterprise requires the adoption of a number of measures to promote increased efficiency and competitiveness.

The achievement of these objectives makes it necessary, therefore, to definitively complete the reordering of industrial shares in both the INI and the INH. In view of the sectoral approach which has guided the performance of both entities to date, a criterion based, rather than on the sector of activity, is now imposed on the legal framework applicable to public undertakings as the most natural determinant of their legal form of action.

It is therefore a question of establishing a new institutional system which will make it possible to rationalise, overall, the management of industrial holdings of public ownership, consistent with the changes that have taken place. driven to the configuration of the INI/TENEO group. To this end, two public law entities are created: the State Industrial Agency and the State Society of Industrial Participations.

The State Industrial Agency shall group public holdings in commercial entities subject to industrial restructuring or conversion plans, as well as special arrangements arising from their particular situation. It is a public Ente of those provided for in article 6.5 of the recast text of the General Budget Law, with which it is intended that the management of these entities will be carried out in a framework of greater autonomy and agility.

For their part, the shares of public ownership in the remaining commercial entities will be transferred to a public right entity as provided for in Article 6.1.b) of the recast text of the General Law. Budget, which adopts the name 'State Society of Industrial Participations'. This State Company has as its object the holding of public participations in the companies that are attached to it.

This new institutional arrangement has a special budgetary significance. Thus, to the untying of the General Budget of the State, already produced, of important business groups that will be transferred to the State Society, it must be added that the creation of the Agency and the State Society will release public funds, since, on the one hand, the allocation of the resources obtained by the Company is envisaged for the depreciation of the debt generated by the National Institute of Industry; and, on the other hand, the Agency is prevented from being able to borrow in the performance of its functions.

The philosophy that inspires the creation of both entities is complete by allowing companies attached to the State Industrial Agency to be transferred to the State Society of Industrial Participations when to ensure their viability is stable. It would not, however, be consistent with this philosophy to transfer companies from the State Company to the Agency, since this would call into question the basic principles of an open and flexible organisational model, which is necessary the basis of policies that will consolidate the profitability of the public enterprise.

The urgency of the measure is given by the creation of this new institutional framework, which will have a positive effect on the reduction of the public deficit, one of the priority objectives of the government's policy, when it pays off in the Temporary horizon planned a debt generated by the INI and valued approximately, at 700 billion pesetas. This operation must be approved in good time to allow the General Budget of the State for 1996 to assume it, as well as to the new management of public participations which is established. The process of establishing the new entities should also be initiated as soon as possible, with the consequent transfers of assets, social interests and the appropriate means.

Furthermore, it is appropriate to remove any uncertainty that the adoption of this measure could raise in the markets, affecting the confidence of financial institutions and investors in important business groups with public participation.

At last, this provision affects the companies that are members of these groups in matters relating to their business future and their lines of action in the field of the European Community's rules for what is required. an urgent action to ensure and confirm the consistency of business approaches with Community legislation.

In its virtue, in use of the authorization granted in article 86 of the Spanish Constitution and after deliberation of the Council of Ministers, at its meeting of June 16, 1995,

D I S P O N G O:

TITLE I

From the deletion of certain public law entities

Article 1. Abolition of the National Institute of Industry and the National Hydrocarbons Institute.

The entities governed by public law, the National Institute of Industry and the National Hydrocarbons Institute, have been abolished in the form and with the effects prevented by the first transitional provision of this Royal Decree-Law.

TITLE II

From the State Industrial Agency

Article 2. Creation and objectives.

1. A body of public law with its own legal personality and full capacity, which shall be governed by the provisions of this Royal Decree-Law and other provisions resulting from it, shall be created with the name "Industrial Agency of the State". Article 2 of Law 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure, and Article 6.5 of the recast of the General Law Budget, adopted by Royal Legislative Decree 1091/1988 of 23 September.

The Industrial Agency of the State will submit its activity to private law, except in the cases established in this Royal Decree-Law or in other legal provisions.

The State Industrial Agency will be attached to the Ministry of Industry and Energy, which will exercise control over its activity.

2. It is up to the Industrial Agency of the State, as a general objective, under the Ministry of Industry and Energy, to implement the Government's guidelines on industrial restructuring and restructuring, special schemes and partial derogations from the Community rules on competition, in accordance with the provisions of Chapter I of Title V of the Treaty establishing the European Community, all in the field of the undertakings of which it is a holder.

In the fulfilment of these objectives, the Agency will act in accordance with the principles of profitability and efficiency in the allocation of resources.

3. The Agency is transferred to all shareholding, rights and obligations which are of public ownership to the date of entry into force of this Royal Decree-Law, included in Annex I thereto, in the terms provided for in the Article 4.3 and in the first transitional provision of this Royal Decree-Law.

Article 3. Tasks of the Agency.

To the Agency, for the fulfillment of its objectives, it corresponds:

(a) Driving, directing, coordinating and controlling the activities of the companies from which it is a holder, including in Annex I to this Royal Decree-Law.

(b) In addition, and in relation to companies in whose share capital, the majority of them participate directly or indirectly:

Set the strategy and monitor the planning of its performance, as well as carry out the monitoring of its implementation, ensuring compliance with the objectives that they have identified.

Evaluate the achievement of the assigned objectives and control their functioning by exercising, in particular and without prejudice to other competences, the effectiveness control.

Article 4. Patrimonial regime.

1. The Agency shall have, for the purposes of its purposes, a property of its own distinct from that of the State, consisting of all the assets, rights and obligations of its ownership. In its heritage relations, the Agency shall be subject to private law.

In the area of recruitment, the Law 13/1995, of 18 May, of Contracts of Public Administrations will apply.

2. The Agency may constitute or participate in the social capital of all kinds of entities which adopt the form of a commercial company and whose social object is linked to the purposes and objectives of that company, subject to the authorization of the Government.

It will also require the approval of the government to increase or transmit equity shares or other securities or securities that may be directly or indirectly entitled to the acquisition of such shares.

3. The share holdings transferred, pursuant to Article 2.3 above, shall be recorded in the Agency's accounts, for their value in books of the entities transferring to the date of transmission of the same, calculated in accordance with the criteria of the General Accounting Plan, based on the balance sheet of the companies transferred to 31 December 1994, incorporating the accumulated results up to the date of the transfer, as well as the property movements until that same date. This value may not be less than a pesetas per company.

Article 5. Companies participating in the Agency.

1. The Agency shall submit to the Ministry of Industry and Energy, for its referral to the Ministry of Economy and Finance, the Programme for Action, Investments and Financing (PAIF), its own and the State Societies of which it is dependent, in the provided for in the recast text of the General Budget Law.

The evaluation of the aforementioned Action, Investments and Financing Programs will serve as a basis for the Ministry of Economy and Finance to raise the proposal of the program-contracts to the government. have to hold their activities.

Regardless of this, the Agency will assess the achievement of the objectives assigned to them, and will forward, on an annual basis, a report on its compliance with the Ministry of Industry and Energy for elevation to the Agency. Government.

2. The Administration of such companies may, for reasons of efficiency and profitability, organize in any of the forms provided for in the recast of the Law of Companies, approved by Royal Decree 1564/1989, of 22 of December.

3. The plans for conversion or restructuring to which these companies were subject were finalised, or where the objectives laid down in the special schemes affecting them had been achieved, or where they had been abolished. Partial derogations from the common rules on competition, as set out in Chapter I of Title V of the Treaty establishing the European Community, the shares of the State Industrial Agency in those companies may be transferred the State Society of Industrial Participations referred to in Title III of the present Royal Decree-law.

In order for such a transfer to take place, it will be necessary for the companies concerned to have obtained profits in the last three financial years prior to the date of their transfer, provided that, in addition, their net worth is equal to or greater than the number of its share capital.

Article 6. Budgetary regime.

1. The Agency shall draw up, annually, the preliminary draft budget and capital budgets which, once agreed by the Management Board, shall be processed in accordance with the provisions of the recast text of the General Budget Law, State Societies. Similarly, the approval of variations in the operating and capital budgets will be in line with the provisions of the State Societies in this recast text.

Without prejudice to the functions of the Court of Auditors, the financial control of the Agency shall be carried out by the General Intervention of the State Administration. The Minister for Economic Affairs and Finance, acting on a proposal from the Executive Board, may establish that the control be exercised on a permanent basis.

The Agency shall also adjust its accounts to the provisions applicable to it, in accordance with the nature conferred on it by Article 2.1 of this Royal Decree-Law. In particular, the General Public Accounting Plan will apply to it.

The Minister of Economy and Finance, on the proposal of the General Intervention of the State Administration, will determine the documentation referred to in Article 138 of the Recast Text of the General Budget Law.

2. The Agency's resources shall be integrated by:

(a) Goods and securities which constitute their assets and the products and income thereof.

(b) Transfers made from the General Budget of the State for its annual operation.

(c) Any other resource not provided for in the preceding paragraphs and which may legitimately correspond to it.

3. The Agency shall not be indebted by financial operations, nor shall it endorse or grant loans to its undertakings. The Budget Law for each financial year shall establish, within the maximum limit of the State's guarantees, the amount that may be allocated for this concept to the companies participating in the Agency.

Article 7. Taxation.

1. All capital transfers, corporate operations and acts resulting directly or indirectly from the establishment of the Agency shall be exempt from any state or local tax without, in the latter case, the (a) compensation referred to in Article 9 (2) of Law No 39/88 of 28 December 1988 on the rules governing local farms.

2. Fees and charges for public fees applicable to the operations of the establishment, processing, merger or dissolution of companies participating in the Agency, extensions or reductions in capital and acquisition and sale by the Agency equity shares, shall be settled in the normal measure laid down in the provisions in force, where the value of the transaction does not exceed 500 000 pesetas. For those exceeding 500 000 pesetas, they shall be reduced by 50 per 100 by the part exceeding that quantity, without reaching 25,000,000 pesetas, to 30 per 100 for those exceeding 25,000,000 pesetas, without exceeding 100,000,000 pesetas, and 20 per 100 to those who exceed this figure.

3. The State Industrial Agency shall be exempt from corporation tax.

Article 8. Organization and personnel.

1. The governing bodies of the Agency shall be the President and the Board of Directors.

2. The President will be appointed by the Government, through Royal Decree, on a proposal from the Minister of Industry and Energy. Its remuneration, for all the concepts, will be fixed annually by the Minister of Economy and Finance, on a proposal from the Minister of Industry and Energy.

3. The Management Board shall be composed of the President of the Agency and eight members appointed by the Minister for Industry and Energy.

Reglamentarily or, where appropriate, by agreement of the Board of Directors, the structure and operating system of the Agency shall be determined.

4. The staff of the Agency shall be bound by a relationship subject to the relevant private law rules.

TITLE III

From the State Society of Industrial Participations

Article 9. Creation and objectives.

1. The name 'State Society of Industrial Participations', a State-owned Society, is hereby established in accordance with Article 6.1 (b) of the recast text of the General Budget Law, approved by the Royal Decree of Law No 1091/1988, September 23.

The State Society of Industrial Participations will be attached to the Ministry of Industry and Energy, which will exercise effective control over its activity.

This State Company will have its own legal personality and full capacity and will be governed by the provisions of this Royal Decree-Law and the provisions that will develop it.

2. The following general objectives under the Ministry of Industry and Energy's dependency and supervision are the following general objectives:

(a) The setting of criteria for the management of shares and units that are awarded to them in accordance with the public interest.

(b) The acquisition of a higher return on the shares and units that are awarded to it, in accordance with the industrial strategies of the companies involved in the State Company,

c) The write-down of the debt generated by the National Institute of Industry.

3. The State Company is transferred to all equity shares that are publicly owned by the date of entry into force of this Royal Decree-Law, included in Annex II thereto, in accordance with the terms of Article 11.2 and the first transitional arrangement of this Royal Decree-Law.

Article 10. Functions of the State Society.

Correspond to the State Society of Industrial Participations the following functions:

(a) The holding, administration, acquisition and disposal of shares and social interests in the commercial entities, included in Annex II to this Royal Decree-Law, managed with business criteria, according to the rules of the market economy. The ordinary management of the participating companies shall correspond to their own administrative bodies and shall be controlled in accordance with the provisions of the recast text of the General Budget Law and other applicable provisions.

b) The performance of all types of passive financial transactions, whatever the way they are implemented, including the issuance of convertible or non-convertible bonds, notes, notes and other similar securities, as well as other Treasury and debt management instruments. It may also guarantee financial transactions by undertakings directly or indirectly involved.

(c) The performance in respect of the companies involved, directly or indirectly, of all types of active and passive financial transactions.

The State Company of Industrial Participations shall perform the operations referred to in paragraphs (b) and (c) above, without including those for which the applicable law requires a special rating.

Article 11. Legal regime and heritage.

1. The State Society of Industrial Participations shall be governed by the private legal system, that is, by civil, commercial or labor law that is applicable, without prejudice to the matters in which the text applies recast of the General Budget Law.

2. The State-owned Company shall have its own assets other than that of the State, consisting of all the assets, rights, obligations which are of its ownership and the equity shares listed in Annex II thereto, as well as (a) to be acquired or incorporated in the future.

The State Company shall record in its accounts such a set of assets, rights, obligations and interests, by its value in books of the entities transferring to the date of transmission of the same, calculated in accordance with the with the criteria of the General Accounting Plan, based on the case of the holdings in the balance sheet of the companies transferred to 31 December 1994, incorporating the accumulated results up to the date of the transfer, as well as the property movements to that same date.

3. The resources of the State Society will be integrated by:

(a) Goods and securities which constitute their assets and the products and income thereof.

b) The revenue generated by the exercise of its activities.

(c) Those arising from loans, loans and other financial operations which may be concluded.

d) Any other that is attributed to it or acquired in the legitimate exercise of its activity.

4. The State Company of Industrial Participations and the companies participating in it may not receive grants or any other equivalent contributions from the General Budget of the State of the Communities. Autonomous or local corporate bodies, unless they come from the concepts of grants and general aid.

5. It will require the prior authorization of the Government, on a proposal from the Ministry of Industry and Energy, prior to the report of the Ministry of Economy and Finance, the realization by the State Society of Industrial Participations of the following businesses legal:

(a) The acquisition or sale of shares or shares in which it is a holder in the share capital of the participating companies, as well as the financing of the shares, which do not consist of short-term loans or treasury, where the operation exceeds 1 billion pesetas.

(b) The acquisition or disposal of shares, preferential subscription rights or other securities incorporating a right to participate in the capital of companies whose shares are traded on Stock Exchanges when, in the case of of previously non-participating companies, the State Company and its participating entities acquire, within twelve months of the first purchase, representative units of more than 10 per 100 of the capital of the company.

(c) The acts of acquisition and loss of the majority position of the State Company in the companies directly or indirectly involved. 6. The resources obtained by the State Company in the exercise of its tasks may be used, preferably, to meet the maturities of the principal and the interest, commissions and other expenses of formalized financial transactions. until 31 July 1995, by the National Institutes of Industry and Hydrocarbons, as well as that which may be generated by virtue of the provisions of the second transitional provision of this Royal Decree-Law.

Article 12. Debt capacity.

1. The State-owned company may carry out any financial operations in the form referred to in Article 11, for which the debt is used in securities issues shall be admitted ex officio to the trading in the securities. Stock exchanges and other organized markets.

It will not apply to the emissions of the State Society of Industrial Participations the regime established in Law 211/1964, of December 24, on the regulation of the issuance of bonds by companies that have not adopted the form of anonymous persons, associations or other legal persons.

In the representation of securities of the State Society of Industrial Participations, by means of annotations in mind, the publication of the characteristics of the issue in the "Official Gazette of the State" will replace the (a) public deed, in accordance with the provisions of the fourth paragraph of Article 6 of Law 24/1988 of 28 July 1988 on the Securities Market, in conjunction with Article 101 of Law 31/1990 of 27 December 1990.

2. In its indebtedness, the State Company shall be subject to the limits which it may establish for each financial year the General Budget Law of the State, having such a limit the net character, and being effective at the end of the financial year, without charge, the changes in circulating liabilities arising from the concerted cash-flow operations with the subsidiaries and undertakings in which it participates, directly or indirectly, in the majority form are taken into account.

3. Short-term, cash-and-cash transactions with subsidiaries and companies in which the State Company is directly or indirectly involved in a majority of transactions shall comply with the limit set in its annual budget.

Article 13. Accounting, budgetary and fiscal arrangements.

1. The budgetary regime, the accounting and the financial control of the State Society of Industrial Participations shall be the ones that correspond according to the nature attributed to it in Article 9 of this Royal Decree-Law, with the exception of what is established in this precept and in the provisions that develop it.

In particular, and as far as accounting is concerned, the General Accounting Plan will apply to the State Society.

2. The State Society of Industrial Participations and their majority-owned companies will be taxed in the Corporate Tax according to the consolidated tax system. The group's inclusions and exclusions will occur in the same exercise in which the State Company acquires or loses, as the case may be, the status of a majority partner.

The calculation of tax benefits and incentives will be made with exclusive reference to the companies belonging to the aforementioned consolidated group.

Likewise, the exception to the general obligation of withholding on income from capital, provided for in Article 8.1.e) of Law 14/1985, will apply to the State Society of Industrial Participations. Tax on Certain Financial Assets.

3. All capital transfers, corporate operations and acts resulting from the creation of the State Company shall be governed by the provisions of Article 7.1 and 2 of this Royal Decree-Law.

Article 14. Decision-making bodies and staff.

1. The governing bodies of the Company shall be the President and the Board of Directors.

2. The President of the Company will be appointed by the Government, through Royal Decree, on a proposal from the Minister of Industry and Energy. His remuneration, for all the concepts, will be fixed by the Minister of Economy and Finance, on a proposal from the Minister of Industry and Energy.

3. The Board of Directors shall be composed of the President of the State Society and six Directors appointed by the Minister of Industry and Energy.

The functions of the President and the Board of Directors of the State Society will be determined.

4. The staff of the State Society shall be bound by a relationship subject to the corresponding private law rules.

Single additional disposition. Continuity of legal situations.

1. The Industrial Agency of the State shall, from 1 August 1995, be subrogated in the ownership of the goods, obligations and rights of the National Institute of Industry for the companies listed in Annex I of the present Royal Decree-Law, without prejudice to the provisions of paragraph 3 of this provision.

2. The State Company of Industrial Participations shall be subrogated, from 1 August 1995, in the ownership of the goods, obligations and rights, even if they are not due, or are liquid or enforceable, that the Institutes are entitled to National of Industry and Hydrocarbons, in respect of the companies listed in Annex II to this Royal Decree-Law.

3. The State Company of Industrial Participations shall be subrogated, from that date, in the legal position of the National Institute of Industry with respect to the obligations of the companies listed in Annex I thereto. Royal Decree-Law, of which that was the holder and also in all the financial operations formalized until 31 July 1995 by the aforementioned Institute, as well as in the endorsements granted to this date by any of the entities.

4. The State Society of Industrial Participations will maintain the rights acquired by the National Institute of Industry, especially the derivatives of the system of taxation consolidated in the Tax on Societies.

5. The Treasury will be subrogated in the pending endorsements to 31 July 1995 and awarded by the extinct National Institute of Industry in favor of the companies whose actions are awarded to the State Industrial Agency.

6. The State Company of Industrial Participations shall be subrogated in the ownership of the goods, rights and obligations not mentioned in the preceding paragraphs corresponding to the National Institute of Industry and the National Institute of Hydrocarbons, respectively, as at 31 July 1995.

First transient disposition. Legal regime applicable to the National Institute of Industry and the National Hydrocarbons Institute until 31 July 1995.

1. The National Institute of Industry and the National Institute of Hydrocarbons will continue in the exercise of the functions that legally correspond to them until July 31, 1995, being extinguished on that date, according to the provisions of the Article 1 of this Royal Decree-Law.

2. Before 1 August 1995, the following actions will have to be taken:

(a) Constitution of the governing bodies and administration of public law entities created by this Royal Decree-Law, that is, of the State Industrial Agency and the State Society of Industrial Participations.

(b) formalisation of the transfer of shareholdings and of the rights and obligations which have been awarded respectively to the State Industrial Agency and the State Company for Participation Industrial.

(c) Realization of the social, financial and budgetary operations that are necessary for the effective suppression of the National Institute of Industrial and the National Hydrocarbons Institute.

Second transient disposition. Legal regime applicable to the State Industrial Agency and the State Society of Industrial Participations.

1. For the purposes laid down by Law 41/1994 of 30 December 1994 on the General Budget of the State for 1995, the capacity of the National Institute of Industry to be approved for a maximum of 300 000 million pesetas, to which the Article 49 of that provision, in the part which would not have been used by the National Institute of Industry until 31 July 1995, shall be taken over by the Treasury, which shall, within the same limit, be allocated to the needs of the integrated enterprises in the State Industrial Agency.

2. For the purposes laid down by Law 41/1994 of 30 December 1994 of the General Budget of the State for 1995, the guarantee capacity of the National Hydrocarbons Institute, for a ceiling of 150 000 million pesetas, to which it refers Article 49 of that provision, in the part that would not have been used by the National Hydrocarbons Institute until 31 July 1995, will be transferred to the State Society of Industrial Participations to meet the needs of the the companies incorporated in that Company. These guarantees will have the same guarantee conditions as those of the National Institute of Industry.

3. Similarly and during the 1995 financial year, the State Society of Industrial Participations may be indebted, within the limits of the credit operations authorized in Article 44 of Law 41/1994, in respect of its Annex III, by a quantity equivalent to that which was not used by the National Institute of Industry at 31 July 1995. Such operations shall have the same guarantee conditions as those for the said Institute.

4. The staff who, at the entry into force of this Royal Decree-law, shall be providing their services in "Teneo, Sociedad Anonima", in the areas affecting the competence and functions of the Agency, may be integrated into the Agency within the maximum period of 90 days after the establishment of the Agency.

Single repeal provision. Regulatory repeal.

In the form, period and with the effects resulting from Article 1 and the first transitional provision of this Royal Decree-Law and, in any case, by 31 July 1995, all provisions will be repealed. provided for in the same and, in particular, the following:

Law of September 25, 1941, of creation of the National Institute of Industry.

Decree-Law 24/1970, dated December 24.

Law 45/1981, of December 28, of the creation of the National Institute of Hydrocarbons.

Article 123 of Law 37/1988, of December 28, of General Budget of the State for 1989.

Final disposition first. Operating and Capital Budgets.

The Operating and Capital Budgets of the Industrial Agency of the State and the State Society of Industrial Participations are approved for the period from 31 July to 31 December 1995. are listed in Annex III to this Royal Decree-Law.

Likewise, the Ministry of Economy and Finance is authorized to carry out the necessary credit transfers in order to apply the proportional portion of the appropriations to the State Industrial Agency. The budget for 1995 is for the National Institute of Industry.

Final disposition second. Regulatory development.

The Government, on the proposal of the Minister of Industry and Energy, will dictate the necessary provisions for the development and implementation of this Royal Decree-Law.

Final disposition third. Entry into force.

This Royal Decree-law shall enter into force on the day following that of its publication in the "Official State Gazette".

Given in Madrid to June 16, 1995.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ

ANNEX I

Equity shares, rights and obligations of public ownership transferred to the Agency

State Industrial

Companies/Percent/Entitlement/Number of Actions

Naval Construction Division, integrated by the following companies:

Spanish Shipyards, S. A. (AESA)/100.99/INI/2,000,000

Northwest Shipyards and Workshops, S. A. (ASTANO)/100.99/INI/100,000

Children of J. Barreras, S. A. (BARRIERS)/99.99/INI/10.191.589

E. Nacional sta. Barbara Intrust. Milit., S. A. (ENSB)/100.99/INI/1,000,000

E. Nacional Bazan Construcc. Naval. Milit., S. A. (BAZAN)/100.99/INI/50,648

2.531,600

North Hulleras, S. A. (HUNOSA)/100.99/INI/150,000

750,000

Minas de Figaredo, S. A. (FIGAREDO)/100.99/INI/100,000

Tubular Products, S. A./100.99/INI/100,000

Integrr. Southwest Spain, S. A. (PRESUR)/99.59/INI/3.831,000

Sidenor, S. A./50.99/INI/3.450.002

CSI Corporación Siderúrgica, S. A./50.99/INI/5,000,000

AHV-Ensidesa Capital, S. A./50.99/INI/26,803,000

Tall Mediterranean ovens, S. A. (AHM)/100.99/INI/2,188,000

Potasas de Navarra, S. A. (partnership in liquidation)/

Obligations and rights referred to in the additional 30th of Law 42/1944, agreement of the Council of Ministers of 24 March 1995 and contract of 24 April 1995 between the National Institute of Industry and "Altos Ovens de Vizcaya, Sociedad Anonima", and "Empresa Nacional Siderúrgica, Sociedad Anonymous".

Obligations and Rights referred to in the Law of 11 May 1942, which created the "National BAZAN Company of Military Shipbuilding, Anonymous Company", as amended by Law 45/1966 of July 23, and provisions complementary.

Obligations and rights referred to in Law 44/1959 of 30 July on the reorganization of the military industry and supplementary provisions.

ANNEX II

Shares of public ownership that are transferred to the State Society of Industrial Participations

Companies/Percent/Entitlement/Number of Actions

Repsol, S. A./21.00/INH/63.002.859

Enagas, S. A./9.00/INH/1.893.162

Sagane, S. A./91.00/INH/273,000

Natural Gas, Sdg., S. A./3.81/INH/1.423.520

Newcomar, S. L./10.00/INH/22

Euroforum-Escorial/0.22/INH/4,546

Teneo/100.00/INI/81.304.100

INI Finance BV/100.00/INI/4,200

Newcomar, S. L./10.00/INI/22

Atlantic Dikes, S. A. (DIATLSANSA)/45.00/INI/153,000

INI/0.00/INI/INI Assistant Services Job Foundation

ANNEX III

Capital and exploitation budgets of the State Industrial Agency and the State Society

of Industrial Participations

AGENCY OPERATING BUDGET

STATE INDUSTRIAL

(Million pesetas)

Must:

Staff Expenses/275

Other operating expenses/125

Total Must/400

Have:

Loss of ordinary activities/400

Total/400

AGENCY CAPITAL BUDGET

STATE INDUSTRIAL

(Million pesetas)

Source:

Resources generated by operations/(400)

Total Funds Source/(400)

Application:

Material investment/50

Circulating capital change/(450)

Total Funds Application/(400)

OPERATING BUDGET OF THE STATE COMPANY OF INDUSTRIAL UNITS

(Million pesetas)

Interest/9.176

Total Revenue/9,176

Staff Expenses/55

Other operating expenses/350

Financial Expenses/33,312

Total Expenses/33,717

Operating Result/(24,541)

Extraordinary Results/41.154

Result/16,613

STATE SOCIETY CAPITAL BUDGET

OF INDUSTRIAL HOLDINGS

(Million pesetas)

Repayment of Business Loans/6,906

Indebtedness/209,500

Self-financing/16.613

Total Source/Application/233,019

Debt Repayment/68,374

Contributions to uninvested companies/2,747

Investment in depreciable expenses/633

Maneuver background variation/161,265