NoL46/18 OfficialJournaloftheEuropeanCommunities 21.2.76
COMMISSION DECISION
of17December1975
approvingaidstobegrantedbytheFrenchRepublicforthebenefitofundertakings
inthecoalindustryinrespectof1975
(OnlytheFrenchtextisauthentic)
(76/214/ESCS)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanCoalandSteelCommunity ,andin
particularArticles2,3,4and5thereof,
HavingregardtoCommissionDecision3/71/ECSC
of22December1970onCommunityrulesfor
interventionsbyMemberStatesforthebenefitofthe
coalindustry(*),
HavingregardtoDecision73/287/ECSCof25July
1973oncokingcoalandcoke(2),andinparticular
Article9(1)thereof,
HavingconsultedtheCouncil,
WhereastheFrenchGovernment hasinformedthe
Commission ,pursuanttoArticle2ofDecision
3/71/ECSC,ofthefinancialmeasureswhichit
proposestoimplementdirectlyorindirectlyforthe
benefitofthecoalindustryinrespectof1975;
whereasthefollowingmeasuresshouldbeauthorized
pursuanttotheaforementioned Decision;
WhereastheFrenchGovernmentproposestogrant
toCharbonnages deFranceinrespectoftheyear
1975aidamountingtoFF278milliontocover
exceptionalcostsofreconversion ;whereastheaid
representsareimbursement ofthecostofsocial
measuresimplemented byCharbonnages deFrance
forthebenefitofredundantorprematurelyretired
miners;
WhereastheFrenchGovernmentalsoproposesto
granttoCharbonnages deFranceinrespectof1975
aidamountingtoFF682400000whichshould,inits
opinion,permittheeconomicrestructuring ofthe
coalfieldstobecarridoutatanappropriaterate;
WhereastheFrenchGovernmentalsoproposesto
granttoCharbonnages deFranceadditionalaidinrespectof1975amountingtoFF123milliontocover
outstandingornewly-arisingfinanciallosses;whereas
thisaidispaidnottothecoalfieldsbutonlytothe
centraladministration ofCharbonnages deFranceto
coveroutstandinglossesincurredbythecentral
administration and/ortopreventsuchlosses
increasingasaresultofexpenditureonintereston
newloans;whereasthecentraladministration of
Charbonnages deFrancehasbeenobligedtotakeout
loansasitsfinancialmeanswereinsufficienttomeet
itscurrentobligations,evenafterthegrantofaid;
Whereastheaforementioned aidsareinaccordance
withthecriterialaiddowninArticles6and9of
Decision3/71/ECSCfortheadmissibilityofsuch
Stateassistance;
Whereastheaidtocoverexceptionalcostof
conversion represents areimbursement of
non-operating expenditurebornebyCharbonnages
deFranceonbehalfoftheFrenchGovernment to
enablesocialmeasuresforthebenefitofreductionor
prematurelyretiredminerstobeimplemented in
amorerationalway;whereasthefollowing
expenditure isproposedfor1970inrespectof
minersmaderedundantbecauseofpitclosures:FF
43million;inrespectofprematurelyretiredminers:
FF169million;inrespectofcompensationtoretired
minersundertheCANscheme:FF60million;andin
respectofthereimbursement ofheatingcostsof
prematurelyretiredminers:FF6million;
Whereasthesesocialmeasuresrelatetopersonsno
longerengagedinmining;whereastheaidisdesigned
tocoverexpenditurenotdirectlyconnectedwiththe
productionandmarketingofcoal;whereastheaidis
thereforeinaccordancewiththeprovisionsofArticle
6(1)(1)ofDecision3/71/ECSC;
Whereastheaid,amountingtoFF805400000,
proposedbytheFrenchGovernmentfor1975to
coverlosses(ofwhichFF682400000istocoverthe
coalfields'operatinglossesandFF123millionto
coverthelossessustainedbythecentral
administration ofCharbonnages deFrance)willbe
lowerthantheoperatinglossesthatareexpectedto
beincurredbyCharbonnages deFrance;whereasthe0)OJNoL3,5.1.1971,p.7.
(2)OJNoL259,15.9.1973,p.36.

21.2.76 OfficialJournaloftheEuropeanCommunities NoL46/19
Whereas,pursuanttoArticle11(1)ofDecision
3/71/ECSC,theCommissionmustsatisfyitselfthat
theapprovedaidsareemployedforthepurposesset
outinArticles6and9ofthatDecision;whereasin
ordertodosotheCommissionmustbenotifiedin
particularoftheamountoftheaidandofthe
mannerinwhichitisapportioned,
HASADOPTEDTHISDECISION :
Article1
TheGovernmentoftheFrenchRepublicishereby
authorizedtogranttothecoalindustryinrespectof
thecalendaryear1975,thefollowingaids:
(a)FF278milliontocoverexceptionalcostsof
reconversion ;
(b)FF682400000tocoveroperatinglosses;
(c)FF123milliontocoverthelossessustainedby
thecentraladministration ofCharbonnages de
France.
Theaidsmentionedunder(b)and(c)shouldnot
begreaterthantheeffectiveproductionlosses.aidshouldbecorrespondingly reducedifthe
operatinglossesdecreasein1975asaresultof
furtherpriceincreasesforFrenchcoal;whereas,
accordingtothesecriteria,theaidcomplieswiththe
provisionsofArticle9(2)ofDecision3/71/ECSC;
Whereasnobasicimprovements areexpectedto
occurintheeconomicandsocialconditionsofthe
Frenchcoalfieldsbetween1974and1975;whereasa
temporarymaintenanceofproductionwillalsohelp
toavoidtransitorysupplybottlenecksinviewofthe
generalenergysupplyproblems;whereastheaidto
coveroperatinglossesisthereforealsoinaccordance
withArticle9(1)ofDecision3/71/ECSC;
WhereastheaidproposedbytheFrenchGovernment
for1975isnotsuchastoimpairtheproper
functioningofthecommonmarket,althoughthe
totalamountofaidtobecalculatedinaccordance
withArticles6and9ofDecision3/71/ECSCyieldsa
figureofFF46-69(7-75u.a.)permetrictonproduced
andisthusrelativelyhighincomparisonwiththe
aidsfortheGermanandBritishcoalindustries;
Whereastheseconclusionsarebasedonthefollowing
findings:
—noadverseeffectontradeincoalbetweenFrance
andtheotherMemberStatesisexpected;
—nopricealignmentagreementsareexpectedfor
Frenchcoalin1975;
—industrialconsumersofcoalwillreceiveno
indirectaidin1975asaresultofthepricesof
Frenchcokingcoalandboilercoal;
—theclosureoftwounprofitablepitswillleadto
rationalization andtheconcentration of
productiononpitswhereproductivityishighest;
Whereasitmaybeconcludedfromthetrends
describedabovethatthecompetitivepositionofthe
Frenchcoalindustrywillnotchangein1975,either
asregardstherelativepositionsoftheindividual
Frenchcoalfieldsorasregardstheirpositionvis-a-vis
theotherCommunitycoalfields;
Whereasthisappliesevenwhenaccountistakenof
thoseaidspaidtothecoalminesunderDecision
73/287/ECSC;Article2
TheFrenchRepublicshallnotifytheCommissionby
30April1976ofdetailsoftheaidsgrantedpursuant
tothisDecision,inparticularasregardstheamounts
paidandthemannerinwhichsuchamountsare
apportioned .
Article3
ThisDecisionisaddressedtotheFrenchRepublic.
DoneatBrussels,17December1975.
FortheCommission
HenriSIMONET
Vice-President