NoL335/36 OfficialJournaloftheEuropeanCommunities 14.12.74
COMMISSION DECISION
of16October 1974
approving additional aidtobegrantedbytheKingdomofBelgiumforthebenefitof
undertakings inthecoalindustryinrespectofthecalendaryear1972andaidtobe
grantedbytheKingdomofBelgiumtothatindustryinrespectofthecalendaryear1973
(OnlytheFrenchandDutchtextsareauthentic )
(74/614/ECSC)
amountofaidtocoveroperating lossesuptoBfrs
5237-2million;whereasthetotalamountcanbe
brokendownasfollowsbetweenthecoalfields :
(inBfrs1000000)
CampineSouthern
coalfieldsTotal
Originalamounts
Additional amounts1731-5
401-53077-0
27-24808-5
428-7
Total 2133-0 3104-2 5237-2
Increase +23-2%+0-9%+8-9%THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishing tshe
European CoalandSteelCommunity ,andin
particularArticles2,3,4and5thereof;
HavingregardtoCommission DecisionNo3/71/
ECSC(1)of22December 1970onCommunity rules
forinterventions byMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo73/287/ECSC(2)of
25July1973oncokingcoalandcoke,andinpar­
ticularArticle9(1)thereof;
HavingconsultedtheCouncil;
Whereason14November 1973theCommission of
theEuropeanCommunities adoptedDecisionNo73/
395/ECSC(3);whereasthisDecisionapproved the
aidproposed bytheBelgianGovernment forthe
benefitofthecoalindustryinrespectof1972to
theextentthatithadbeenincluded ,andexamined
bytheCommission ,inthe'supplementary reporton
financialintervention byMemberStatesin1972for
thebenefitofthecoalindustry'(4);,
Whereas,asexplained inthatreport(5),theBelgian
Government hadaskedtheCommission toapprove
aidsamounting toBfrs4808-5milliontocover
operating losses,tobegrantedwithintheframework
ofArticle9ofDecisionNo3/71/ECSC;
Whereasinaletterof11July1973theBelgian
Government askedtheCommission toapprovethe
grantofanadditional Bfrs428-7million,i.e.an
increaseofapproximately 9%tobringthetotalWhereastheBelgianGovernment alsoinformedthe
Commission thattheaidtowardsthecostofpumping
underground wateroutofpitshadbeenreducedby
Bfrs17-6millionfromBfrs50milliontoBfrs32-4
million,andtheaidforvocational trainingbyBfrs
8-1millionfromBfrs12-9milliontoBfrs4-8million;
Whereas ,considering thetotalamountofaidforthe
benefitoftheBelgiancoalindustry,thenetincrease
for1972thereforeamounts toBfrs403million;
whereas theadditional Belgianaidisalmost
exclusively forthebenefitoftheCampinecoalfield
asopposedtothesoutherncoalfields ;whereasthe
increaseinaidforthesouthern coalfields amounts
toonly0-9%;
Whereas inthecaseoftheCampine coalfielda
further23%increase intheamount ofaidwas
requiredbecausetheoriginalestimates oftheaid
tobegrantedwouldhavebeensufficienttocover
only55%oiftheoperating losses;whereasthe
increaseintheamountofaidtobegrantedmeans
that66%oftheoperatinglossescannowbecovered,
sothattheonlyproductive undertaking intheCam­
pinecoalfield (Kempense Steenkolenmijnen )isina
positiontomeetitscurrentfinancialcommitments ;OOJNoL3,5.1.1971,pp.7etseq.
(2)OJNoL259,15.9.1973,p.41.
(3)OJNoL346,17.12.1973,pp.11etseq.
il)Doc.SEC(73)2272fin.,pp.13etseq.
(5)Doc.SEC(73)2272fin.,p.16.

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/37
WhereastheCommission isthereforeoftheopinion
thattheproposedincreaseinaidsforthebenefitof
theBelgiancoalindustrytocoverlossesinrespect
of1972canberegarded ascompatible withthe
properfunctioning ofthecommonmarket;
Whereas,furthermore ,theBelgianGovernment has
informedtheCommission ,pursuanttoArticle2of
DecisionNo3/71/ECSC,ofthedirectandindirect
aidwhichitproposestograntforthebenefitofthe
coalindustryfor1973;whereastheaidslistedbelow
requireauthorization pursuanttotheaforementioned
Decision ;
WhereastheBelgianGovernment proposestogrant
aidamounting toBfrs218-1milliontowardsthe
financing ofinvestments for1973;whereasthis
amountshouldenablethoseundertakings notdue
forclosurein1973tomakethenecessaryinvestments ;Whereas,althoughprovision wasoriginally made
foratotalofBfrs323permetricton(=6-46u.a.)
indirectaidtobepaidinrespectoftheCampine
coalfield(*),theamounthasnowbeenincreasedto
Bfrs369permetricton(=7-38u.a.);
Whereasthisincreaseofapproximately oneunitof
accountpermetrictondoesnotrequirefurtherpoints
tobeexamined inadditiontothosealreadyexamined
inDocument SEC(73)2272final;whereasthe
regionalandsocialproblemsinthatcoalfieldremain
unchanged ;whereastheaidoffsetsonlypartofthe
difference betweencostsandrevenue;
Whereasthesefindingsindicatethattheincreasein
aidtocoveroperatinglossesproposedbytheBelgian
Government inrespectof1972isnotcontrarytothe
provisions ofArticle9ofDecisionNo3/71/ECSC;
Whereastheadditional increaseinaidprovidedfor
bytheBelgianGovernment for1972isnotsuchas
toimpairtheproperfunctioning ofthecommon
market,althoughthetotalamounttobecalculated
inaccordance withArticles 6to9ofDecision
No3/71/ECSCnowyieldsafigureofBfrs533
(10-68u.a.)permetrictonproducedandisthusthe
highestincomparison withtheotherCommunity
coalproducers ;
Whereastheseconclusions arebasedonthefollowing
findings :
Whereas aninvestigation carriedoutbythe
Commission revealedthatthelevelofpricesfor
Belgiancoalfordomesticuseisdetermined primarily
bythepricesofRussiananthracite ,andforBelgian
cokingcoalbytheequivalent USprices;whereas
lightheatingoilplaysnosignificant roleinthe
formation ofpricesofdomesticcoal;whereasRussian
anthracite playsanimportant partintheformation
ofpricesinnorthernFrance,BelgiumandtheNether­
lands;whereastheannualquantities soldinthose
areasarebasedonthecoalimportpoliciesim­
plemented bythegovernments concerned ;whereas
theproblems inthisconnection thereforefallwithin
thescopeofthegeneralenergyandcoalpolicyand
canbedealtwithonlywithinthatframework ;
whereasonaccountoftheimportofcheapRussian
anthracite andlow-price Australian andAmerican
cokingcoal,Belgianproducers areobligedtoadjust
theirprices;whereastheCommission hasnotob­
servedanycasesofBelgianproducers undercutting
thepricesofimportedproducts ;WhereastheBelgianGovernment alsoproposesto
granttheundertaking Esperance etBonneFortune
aidamounting toBfrs50million;whereasthat
undertaking hasbeeninvolvedinadditional expen­
diturefortheremovalofunderground waterwhich
enteredtheirmineasaresultoftheclosureofshaft2
oftheGosson-Kessales miningcompany in
Montegnee andoftheBure-aux-Femmes shaftofthe
PatienceatBeaujoneundertaking ;
WhereastheBelgianGovernment hasalsomade
provisionforpaymentsamounting toBfrs7-6million
toenabletheundertakings inthecoalindustrytobe
reimbursed inrespectoftheirexpenditure onthe
vocational trainingofminers;whereasthisaidwill
enableapproximately 19%oftheexpenditure bythe
Belgiancoalindustryinthisconnection in1973to
becovered ;
WhereastheBelgianGovernment hasalsomade
provision forpayments amounting toBfrs5158-7
millioninordertoensurethattheclosureprogramme
isexecutedatwhattheBelgianGovernment considers
tobeasuitablerate;whereasthatamountisdesigned
tocovertheoperating lossessetoutinastandard
bookofchargesrelatingtoallsubsidized pits;
Whereastheaforementioned aidsareinaccordance
withthecriterialaiddowninArticles6,7and9of
DecisionNo3/71/ECSCfortheadmissibility ofsuch
stateaid; i1)Doc.SEC(73)2272fin.,p.24.

NoL335/38 OfficialJournaloftheEuropeanCommunities 14.12.74
Whereasthepurposeoftheaidtofinanceinvestment
projectsintheundertakings benefiting fromtheaid
isinaccordance withtheprovisions ofArticle7(2)
ofDecisionNo3/71/ECSC;whereassuchaidistobe
usedtocoverpartoftheexpenditure onconcen­
tration,mechanization andautomation ofmine
workings ,inordertoenablethecoaltobemore
intensively upgradedandbettercleaned;whereasthe
information giventotheCommission alsoreveals
thattheundertakings benefiting fromtheaidwill
notbeapplyingforloansatareducedrateofinterest
underArticle54oftheECSCTreaty;
Whereasthereimbursement ofthecostofpumping
underground wateroutoftheclosedpitsisameasure
ofthetypedescribed inArticle6(1)(2)ofDecision
No3/71/ECSC;whereastheremovaloftheunder­
groundwaterwasnecessitated bytheclosureofthe
Gosson-Kessales andBure-aux-Femmes pits;whereas
theamountoftheaiddoesnotexceedtheactual
pumpingcostsincurredbytheadditional operations
toremoveunderground water;
Whereastheaidstoundertakings inthecoalindustry
forthevocational trainingofminersareinaccord­
ancewiththecriterialaiddowninArticle7(3)of
DecisionNo3/71/ECSC;whereasthataidisdesigned
tocontribute towardscoveringexpenditure onthe
trainingofminers;Whereas ,inthecaseoftheCampinecoalfield,the
BelgianGovernment haspointedoutthatfivelarge
undertakings arestilloperating inthatcoalfield ;
whereas,sincethoseundertakings cannotbeclosed
downgradually ,largenumbersofemployees will
havetobemaderedundant atonetime;whereas
production wasreducedbyonemillionmetrictons
in1973,sothatapproximately 2000underground
workersweremaderedundant ;whereas,according
totheBelgianGovernment ,suitableconditions do
notyetexisttocopewithlargernumbersofredun­
dancies;whereasregionalandsocialdifficulties must
beavoidedatallcosts;
Whereas ,inviewofthesesocialconditions inthe
regionsofBelgium inwhichthecoalfields are
situated,theaidtobegrantedinrespectof1973to
coveroperating costscanbeconsidered ,froma
purelyformalpointofview,asbeinginaccordance
withtheprovisions ofArticle9(1)(1)ofDecision
No3/71/ECSC;
Whereasitmustbepointedout,furthermore ,that
theamountsofaidtocoverlossesonmineoperation
donotexceedtheestimated actualoperating losses;
whereastheyaretherefore inaccordance withthe
provisions ofArticle9(2)ofDecisionNo3/71/ECSC;
WhereastheaidproposedbytheBelgianGovernment
for1973isnotsuchastoimpairtheproper
functioning ofthecommonmarket,although the
totalamountofaidascalculated inaccordance with
Articles6,7and9ofDecisionNo3/71/ECSCyields
afigureofBfrs615(12-54u.a.)permetricton
producedandisthusthehighestincomparison with
theotherCommunity coalproducers ;
Whereastheseconclusions arebasedonthefollowing
findings :
—theamountoftheaidisconsistent withthe
tonnageforecastsdrawnupfor1973foreach
Belgiancoalfieldorundertaking ,havingregard
totheCommunity 'soverallsupplypositionin
respectofcokeandcoal,sothattherequirements
ofthefirstsubparagraph ofArticle3(1)of
DecisionNo3/71/ECSCaresatisfied ;
—noadverseeffectontradeincoalbetween
Belgium andtheotherMember Stateswas
observedin1973;
—intheformation ofpricesforBelgiancoal,no
priceswerealignedtoequalthoseofcheapercoal
produced intheCommunity in1972andnosuch
priceadjustments areexpectedtohavebeenmade
in1973;
—industrial consumers ofboilercoalreceiveno
indirectaidasaresultofartificially lowpricesfor
Belgiancoal;Whereastheotheraidsamounting toBfrs5158-7
millionforwhichprovision hasbeenmadebythe
BelgianGovernment for1973canberegarded as
beinginaccordance withtheprovisions ofArticle9
ofDecisionNo3/71/ECSC;whereastheBelgiancoal
industry'sfinancialsituationdeteriorated in1972
compared to1971;whereasin1972revenuecovered
63-7%ofthepits'totalcosts;whereas afurther
deterioration oftherevenuesituationcanbeexpected
in1973;
WhereastheBelgianGovernment hasdecidedtoclose
fourpitsinthesoutherncoalfieldsothatonly12pits
wouldstillbeinoperation bytheendof1973;
whereasapproximately 4000personshavebeen
affectedbythoseclosures ;whereas ,compared to
previousyearsinwhichanannualreduction of2000
to3000inthenumberofstaffhadbeenachieved ,
theclosuresmadeinthesouthern coalfieldfor1973
involvealargernumberofredundancies ,whichseems
bothexpedient andnecessary inviewofthevery
highamountofaidrequiredbythatcoalfield ;

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/39
—theclosureofunprofitable pitswillleadtoration­
alizationandtheconcentration ofproduction on
pitswhereproductivity ishighest;
Whereasitmaythereforebeconcluded thattheaid
proposed bytheBelgianGovernment for1973will
notimpairtheproperfunctioning ofthecommon
market;
Whereasthisalsoappliesifaccountistakenofthe
aidsgrantedtothecoalminespursuanttoDecision
No72./287/ECSC;•
Whereas,pursuanttoArticle11(1)ofDecisionNo
3/71/ECSC,theCommission mustsatisfyitselfthat
theapprovedaidisusedforthepurposessetoutin
Articles6to9ofthatDecision ;whereasinorder
todosotheCommission mustbeinformedinpar­
ticularoftheamountoftheaidofthemannerin
whichitisapportioned ,TheamountofBfrs428-7millionprovidedfor1972
shallbeforthepurposeofcoveringlossesonmine
operation .
TheamountofBfrs5434-4millionprovidedfor1973
shallincludeBfrs218-1milliontofinanceinvestment
projects,Bfrs7-6millionforthevocational training
ofminesandBfrs50millionfortheremovalof
underground waterwhichhasenteredtheEsperance ,
BonneFortunepit.
Article2
TheGovernment oftheKingdomofBelgiumshall
notifytheCommission by30November 1974of
detailsoftheaidsgrantedpursuanttothisDecision,
inparticular asregardstheamountspaidandthe
mannerinwhichsuchamountsareapportioned .
Article3
ThisDecision isaddressed totheKingdom of
Belgium .
DoneatBrussels,16October1974.
FortheCommission
ThePresident
Francois-Xavier ORTOLIHASADOPTED THISDECISION :
Article 1
TheGovernment oftheKingdom ofBelgiumis
herebyauthorized togranttotheBelgiancoal
industryadditional aidinrespectofthecalendar
year1972inanamountofBfrs428-7million.