17.12.73 OfficialJournaloftheEuropeanCommunities NoL346/11
COMMISSION DECISION
of14November1973
approvingadditionalaidfromtheKingdomofBelgium,forthebenefitofundertakings
inthecoalindustry
(OnlytheFrenchandDutchtextsareauthentic)
(73/395/ECSC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanCoalandSteelCommunity,andin
particularArticles2,3,4and5thereof;
HavingregardtoCommissionDecisionNo3/71/
ECSC(x)of22December1970onCommunityrules
forinterventionbyMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo70/1/ECSCof19
December1969oncokingcoalandcoke,andin
particularArticle9(1)(2)thereof;
HavingconsultedtheCouncil;
Havingconsideredthefollowinggrounds;
WhereastheCommission oftheEuropean
CommunitiesadoptedDecisionNo72/373/ECSC(8)
on19October1972;whereasthisDecision
approvedtheaidintendedbytheBelgian
Governmenttobegrantedforthebenefitofthe
CoalIndustryinrespectof1972totheextentthat
inhadbeenincludedandexaminedbythe
Commission inthe'Memorandum onfinancial
interventionsbyMemberStatesforthebenefitof
theCoalIndustry1972'(4);
Whereasduringthepreparationsforconsultations
withtheCouncilon6September1972concerning
thememorandum onfinancialinterventions in
respectof1972byMemberStatesforthebenefitof
thecoalindustry,therepresentative ofthe
Commission wasinformedbytheBelgian
governmentoftheintentiontoeffectanincreasefor
1972intheoriginallyplannedaid,inordertocover
theremainingoperatinglosses;whereasallotheraid
originallyplannedfor1972andapprovedbythe
Commissionremainsunchanged;Whereas,inaccordancewithArticle2ofDecision
No3/71/ECSC,theBelgiangovernment
communicated totheCommission theadditional
amountsitintendedtopayinrespectof1972for
thebenefitofthecoalindustry;whereasitis
plannedtoincreasefor1972theaidintendedto
coveroperatinglossesoftheminingindustrybyBfrs
2198700000,makinganincreaseofBfrs211per
tonofcoalextractedcomparedwiththeamounts
alreadyapproved;
Whereastheaforementioned aidisinaccordance
withthecriterialaiddowninArticle9ofDecision
No3/71/ECSCfortheadmissibilityofsuchstate
aid;
Whereasthereasonforsuchadrasticincreaseinaid
wastheresultoftheveryunfavourabledevelopment
ofthefinancialpositionoftheBelgianmining
industry;whereastheBelgiangovernmentstatesthat
somefactorsthathadservedasabasisforthe
estimatesmadebyitintheautumnof1971in
respectofoperatinglossesliabletobeincurredby
theminingindustryhavenotdevelopedashad
beenpresumed;
Whereasattheendof1971itwasassumedthatthe
outputpermanshiftintheBelgiancoalindustry
wouldriseby8to9%in1972incomparisonwith
1971,theactualtrendtodateindicatesthatan
increaseintheoutputpermanshiftfor1972ishardly
tobeexpected;
Whereasthebasiccosts,inparticularwagesand
otherlabourcosts,haverisenconsiderablythrough
theapplicationofthesocialprogrammesinthe
miningindustryandinlinewiththeriseinthe
consumerpriceindex;whereasinitiallyariseof
14%inwageswasexpected,thetrendtodate
indicatesariseof18%(includinga5-pointrisein
consumerpriceindex);
Whereasinsteadoftheestimatedstabilityofrevenue
inthecollieries,adeclineisdiscernibleinviewof
developments in1972;intheMidicoalfieldthiswill
amounttoapproximately 10to15%andinthe
Kempencoalfieldtoapproximately 2to3%;
whereasthesteam-raising coal(lowgrade)ofthe
Midicoalfieldmusthenceforthbesoldatpricesin
linewiththoseofheavyfueloil,thepriceofwhich
droppedby15to20%in1972incomparisonwith
1971;HOJNoL3,5.1.1971,p.7.
(2)OJNoL2,6.1.1970,p.10.
(3)OJNoL256,14.11.1972,p.16etseq.
(*)Doc.NoXVII/52/2/72.

NoL346/12 OfficialJournaloftheEuropeanCommunities 17.12.73
—anadverseeffectoncoaltradebetweenBelgium
andtheotherMemberStatesin1972isnot
discernible;
—industrialconsumersreceivenoindirectaidasa
resultofartificallylowpriceformationfor
Belgiancoal;
Whereasitcanbeassumed,inviewofthesefindings
thattheincreaseplannedbytheBelgian
Government inaidfor1972inordertocover
operatinglosseswillnotimpairtheproper
functioningofthecommonmarket(points1and2,
Article3(1)ofDecisionNo3/71(ECSC));
WhereasinaccordancewithArticle11(1)of
DecisionNo3/71/ECSCtheCommission must
satisfyitselfthattheapprovedaidisusedforthe
purposestatedinArticle9ofthisDecision;whereas
tothisenditmustbeinformedinparticularofthe
amountanddistributionoftherelevantpayments,
HASADOPTEDTHISDECISION :
Article1Whereasthefundamental factorinthedeclinein
revenuewasthedevaluationoftheUSdollarin
December1971,afactorwhichcouldnotbe
foreseenintheautumnof1971;
Whereasthediscontinuance ofaidpaymentswould
resultintheimmediateclosureofallpitsandthe
redundancyofapproximately 30000employees;
whereastheBelgianminingindustrywillableto
coverfromitsrevenuefor1972only64%ofthe
fullcostofproductioninthecaseoftheKempen
coalfieldandonly43°/ointhecaseoftheMidi
coalfield;
WhereastheCommission acknowledges thatthe
BelgianGovernment musttakeaccountof
compellingeconomicandsocialcircumstances of
regionalorderintheareasinwhichthetwoBelgian
coalfieldsaresituated,andthatforthisreasonthe
additionalaidappliedforinrespectof1972to
coveroperatinglossesiscompatiblewiththe
provisionsofpoint1,Article9(1)ofDecisionNo
3/71(ECSC),sinceitisintendedtopreventsevere
socialandeconomicdisturbancesinregionswhere
therearenotasyetsufficientopportunitiesforre­
employment ;
Whereas,furthermore ,itmustbepointedoutthatthe
increaseinaidtocoveroperatinglossesinthe
miningindustrymustnotexceedtheestimated
operatinglossesfortheminingindustry;whereas
theincreaseisthusalsoinaccordancewiththe
provisionsofArticle9(2)ofDecisionNo3/71
(ECSC);
WhereastheincreaseinaidplannedbytheBelgian
Governmentfor1972isnotsuchastoimpairthe
properfunctioningoftheCommonMarket,
althoughthetotalamountofaidtobecalculatedin
accordancewithArticles6to9ofDecisionNo3/
71/ECSCnowyieldsafigureof499Bfrs/t(10u.a./t)
producedandisthusthehighestincomparisonwith
theotherCommunitycoalproducers;
Whereasthesefindingsarebasedonthefollowing
resultsofinvestigations :
—theconsistencyofthequantitative ,estimates
determinedfor1972bytheindividualBelgian
coalfieldsorundertakingswithintheframework
ofthetotaloverallsupplypositioninrespectof
coalandcokeisnotimpairedbytheincreasein
aid;TheGovernmentoftheKingdomofBelgiumis
herebyempoweredtopayinrespectof1972an
additionalaidtothetotalamountofBfrs
2198700000totheBelgiancoalminingindustryto
coveroperatinglosses.
Article2
TheGovernmentoftheKingdomofBelgiumshall
communicate totheCommissionnotlaterthan31
December1973fullparticularsofaidgranted
pursuanttothisDecision,andinparticularofthe
amountanddistributionoftherelevantpayments.
Article3
ThisDecisionisaddressedtotheKingdomof
Belgium.
DoneatBrussels,14November1973.
FortheCommission
ThePresident
Francois-Xavier ORTOLI