10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/27
COMMISSION DECISION
of10July1975
authorizingtheFederalRepublicofGermanytograntaidstocoalminingunder­
takingsin1974
(OnlytheGermantextisauthentic)
(75/546/ECSC)
94-0
1601
50-0
990
690
10.0THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity ,andinparticularArticles
2,3,4and5thereof;
HavingregardtoCommissionDecisionNo3/71/
ECSC(')of22December1970onCommunityrules
forinterventions byMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo73/287/ECSC(2)of25
July1973concerningcokingcoalandcokeforthe
ironandsteelindustryintheCommunity ,andin
particularArticle9(1)thereof;
HavingconsultedtheCouncil;
WhereastheGovernmentoftheFederalRepublicof
GermanyhasinformedtheCommissionunderArticle
2ofDecisionNo3/71/ECSCoffinancialmeasures,
bothdirectandindirect,whichitintendstotakein
1974forthebenefitofthecoalindustry;whereasof
thosemeasurestheaidslistedbelowrequireauthoriza­
tionundertheabovementioned Decisions ;Coal-mining premiumsfor
shiftworkersandpiece­
workersforeveryshiftworked
underground
Investment aidstoindividual
projectsunderanoverallinvest­
mentprogramme
Paymentoftheinstalments
owedbyRAGinrespectof
state-guaranteed compensation
totheformermine-owning
companies
(b)Newmeasuresproposedfor
1974:
Subsidiestowardsthecoal
industry'scontractioncosts
Subsidiestowardsrepaymentof
thecoalindustry'solddebts
Aidfordevelopmentandtrials
(testingofnewlydeveloped
machinery)inthecoalindustry
Paymentofinstalmentsowed
byRuhrkohleAGinrespectof
thespecialitemtooffsetdepre­
ciationinconnectionwithpit
closures
MeasurestoassistPreussagAG48-0
60-0
(a)Measuresalreadyinforceinpreviousyearswhich
aretobecontinuedin1974:
inDMmillion
Whereastheabovementioned aidsmeetthecriteria
laiddowninArticles6to9ofDecisionNo3/71/
ECSCinrespectoftheadmissibility ofsuchState
assistance ;FortheAktionsgemeinschaft
Deutsche Steinkohlenreviere
GmbHinrespectofpit
closures :
—aidsinrespectofequaliza­
tionofburdenspayments
—closurepremiums
Total
Aidtowatersupplyundertak­
ingsinrespectofexpenditure
incurredinremovingunder­
groundwaterfromclosedpits21-8
180-0
201-8WhereastheaidstobepaidthroughtheAktions­
gemeinschaft DeutscheSteinkohlenreviere aretobe
grantedonlyonconditionthattheyareusedin
connectionwith'atotalorpartialclosureofpits'
(Article6(1)ofDecisionNo3/71/ECSC);
39-0
(')O)NoL3,5.1.1971,p.7.
(')O)NoL259,15.9.1973,p.41.Whereastheamountsofsuchaidsdonotexceedthe
permissiblelevel;

NoL238/28 OfficialJournaloftheEuropeanCommunities 10.9.75
Whereas,asregardstheaidinrespectofequalization
ofburdenspayments,accountistakenofthefactthat
theclosureofapitleadstothedestructionoftheorig­
inalfixedassetstoaconsiderabledegree;whereasthe
aid,whichconsistsintheremissionoftwothirdsof
thepropertylevyandthelevyonprofitsfromcredits
payabletotheEqualization ofBurdensFundin
respectoftheclosedpits,isinanycaseconsiderably
lowerthanthecapitallossresultingfromtheclosures
andisthereforewithinthelimitslaiddowninArticle
6ofDecisionNo3/71/ECSC;
Whereastheclosurepremiumspaidtocoalmining
undertakings bytheAktionsgemeinschaft Deutsche
Steinkohlenreviere inrespectofclosuresarepaidata
flatrateofDM20permetrictonproduced ;whereas
thisamountisfarbelowthatrequiredtocoveractual
closurecosts;whereasfollowingclosuretheundertak­
ings'continuingobligationsinrespectofdamage
causedbyminingandsocialchargesalonemaybeesti­
matedatbetweenDM30and35permetrictonfor
1974;
Whereastheaidpaidataflatratethusdoesnot
exceedtheexpenditureincurredasaresultofpit
closuresandisthereforeinaccordancewiththeprovi­
sionsofArticle6(2)ofDecisionNo3/71/ECSC;
WhereasthepaymentofaidamountingtoDM39
millionfortheremovalofunderground waterfrom
closedpitslikewisemeetsthecriterialaiddownin
Article6(1)ofDecisionNo3/71/ECSC;
Whereastheaidtowardspaymentofthecoal-mining
premiumhelpsthecoalindustrytoretainskilled
workers,whichisabsolutelyessentialifitsproduc­
tivityistoincrease;whereas,moreover,theundertak­
ingsincurexpenditure inrespectofthenecessary
recruitment ,training,adaptationandretentionofstaff
whichisseveraltimesgreaterthantheamountofthe
aidtowardspaymentofthecoal-winning ;
Whereasthepurposeandamountofthecoal-winning
premiumshowthatthemeasureisinaccordancewith
Article7(3)ofDecisionNo3/71/ECSC;
Whereasthepurposeoftheinvestmentaidisto
increasetheeconomicviabilityoftheGermancoal
industry;whereassuchaidsaretobegrantedonlyto
undertakingswhichareofoptimumsizewithinthe
meaningofSection18oftheLawof15May1968on
theadaptationandrecoveryoftheGermancoal
industryandtheGermancoalminingregions;
whereastheundertakings mayusetheaidsonlyfor
investmentinpitsandtheirauxiliaryinstallationsami
inprocessingplant;whereasamaximumof30%of
theprocurement costsand/ormanufacturing costsincurredinrespectOfaninvestmentprojectmaybe
coveredbytheaid;
Whereasitisnotyetpossibletoindicatehowtheaid
for1974willbeapportionedamongtheindividual
projects;whereasthiswillnotbepossiblebeforethe
endof1974;
Whereasthepurposeandamountoftheproposed
aidsshowthatthemeasureisinaccordancewiththe
provisionsofArticle7(2)ofDecisionNo3/71/ECSC;
whereastheFederalGovernment isrequiredtonotify
theCommissionatleastonceayearinrespectofeach
projectoftheobjectivepursued,theamountsinvested
andtheamountsofaidgranted;
Whereasprovisionhasbeenmadefor1974forthe
publicauthoritiestopay(inlieuofRAG)aninstal­
mentofDM50milliontotheformerpitowners,who
haveastate-guaranteed claimtocompensation from
RAG;
WhereasRAGsufferedlossesin1973;whereas
paymentoftheinstalmentsbythepublicauthorities
istoberegardedasameasureaimedatpreventing
financialdifficultiesforRAGandavoidingtemporary
supplydifficultiesonthecoalmarket;
WhereaspaymentbytheFederalGovernmentofthe
instalmentsinrespectofstate-guaranteed compensa­
tionisthereforeinaccordancewiththeprovisionsof
Article9(1)(1)ofDecisionNo3/71/ECSC;
Whereas,asregardsdeterminingtheamountofthe
aidbyreferencetothedifferencebetweenproduction
costsandincome,itcanbeseenthattheaidwill
coveronlyafractionoftheRAG'sexpectedoperating
lossesin1974;whereasitisthereforeinaccordance
withtheprovisionsofArticle9(2)ofDecisionNo
3/71/ECSC;
Whereas,inordertoprovideguidelinesforcoaland
energypolicy,theFederalGovernmentadoptedthe
Lawof15May1969ontheadaptationandrecovery
oftheGermancoalindustry(CoalLaw:Bundesgesetz­
hlatt1,p.365)andintroducedintheBundestaga
ProgrammefortheFederalGovernment'sEnergy
Policy(EnergyProgramme :BundestagpaperNo
7/1057,?October1975);
Whereasinthelightofthesituationontheworld
energymarket,whichhaschangedfundamentally
sinceAutumn1973,theEnergyProgramme was
broughtuptodateinAutumn1974;whereasthe
FederalGovernment hasbasedsomeofthenew
measuresproposedfor1974eitherontheCoalLawor
ontheEnergyProgramme ;

10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/29
WhereasundertakingsintheGermancoalindustry
which,undertheirprogrammesfortheadaptationof
productiontomarketconditions,carryoutpitclosures
whichafter1January1973leadtoalastingreduction
incoalproductionaretoreceiveaidstowardsthecosts
arisingfromreducedproduction (contractingcosts);
whereasoveraperiodof5yearsaidattherateofDM
30permetrictonofreductioninannualproduction
capacityistobepaid,providedthisdoesnotexceed
thecontractioncostsactuallyincurredbytheunder­
taking;
Whereasthepurposeandamountoftheproposedaid
showthatthemeasureisinaccordancewiththeprovi­
sionsofArticle6(1)(1)ofDecisionNo3/71/ECSC;
Whereasthesubsidiestowardspaymentof.thecoal
industrysolddebtsareintendedtosupplementthe
closurepremiums;whereastheseolddebtsinclude
costsincurredinrespectofdamagecausedbymining,
pensionsandconcessionary coalasaresultofpit
closureseffectedbefore1January1972;whereasaid
isgrantedtowardssuchcosts,whichwereactually
incurredbytheundertakings ;
Whereasthepurposeandamountoftheproposedaid
showthatthemeasureisinaccordancewiththeprovi­
sionsofArticle6(1)(1)ofDecisionNo3/71/ECSC;
Whereasitisnecessaryforthespeedyandlasting
recoveryofthecoalindustrythattheresultsof
researchshouldpassasrapidlyaspossiblethroughthe
developmentandtrialstagesandbeputtopractical
useintheproductionprocess;whereasaidisgranted
forindividualprojectswhichpromisetoproducetang­
ibleeconomicresultsforthecoalindustryinthe
mediumterm;
Whereastheaid,amountingtoDM10million,
proposedfor1974representsasubsidytowardsthe
costsactuallyincurred;
Whereasthepurposeandamountoftheaidshowthat
themeasureiscompatiblewithArticle7(1)ofDeci­
sionNo3/71/ECSC;
WhereaspaymentonbehalfofRuhrkohleAGof
instalmentsinrespectofthespecialitemtooffset
depreciation inconnectionwithpitclosuresisa
specialmeasureforthebenefitofRAG;
WhereasinpreviousyearsRAGhashadtowriteoff
separatelyitsassetslostontheoccasionofpit
closures;whereasunderArticle8(2)oftheTax
Amendment Lawof1969RAGisentitledtoinclude
inrespectofsuchdepreciationontheassetssideof
thebalancesheetsaspecialitemwhichmaybe
writtenoffininstalmentsinsubsequentyears;Whereasin1969itwasassumedthattheresultsofthe
undertakinginsubsequentyearswouldbesogood
thatsuchdepreciationbyinstalmentscouldinfactbe
includedinthecalculationofproductioncostsor
incomeasappropriate ;
Whereasinviewoftheunfavourable trendswhich
haveactuallydevelopedinsubsequentyearsRAGis
nownolongerabletobeartheadditionalburdenof
theseamountsofdepreciationfrompreviousyears;
WhereasinRAG'sbalancesheetason31December
1973thespecialitemforoffsettingdepreciationin
respectofpitclosuresamountedtosomeDM700
million;
WhereasinordertoenableRAGtocancelpartofthis
specialitem,thepublicauthoritiesarctopayaidof
DM48millionannuallytoitoveraten-yearperiod;
Whereasspecialdepreciation intheeventofpit
closuresconstitutesclosurecosts;whereastheaidis
designedtoreducethesecostsandistherefore,having
regardtoitspurposeandamount,compatiblewith
Article6(1)ofDecisionNo3/71/ECSC;
Whereas,inordertoavoidtemporarysupplydiffi­
cultiesandbecauseoftheregionalandsocialimpor­
tancefortheIbbenbiiren areaoftheIbbenbiiren
minesofPreussagAG,theFederalGovernmenthas
decidedtograntaidtothisminingcompany,which
hasbeenoperatingatalossforyears;whereasthe
undertaking isunabletofinancethenecessaryinvest­
mentitselfandisthereforetobegrantedacondition­
allyrepayablesubsidytocoverpartofitslosses;
Whereasthepurposeoftheaidanditsamount(DM
60million)showthatthemeasureisinaccordance
withtheprovisionsofArticle9(1)and(2);
Whereasanyexaminationofthecompatibility ofthe
Germanaidswiththeproperfunctioningofthe
commonmarketmustincludealldirectandindirect
measurestobetakenforthebenefitofthecoal
industryin1974(Article3(2)ofDecisionNo3/71/
ECSC);
Whereasonthatbasisofcalculationthetotalcostof
theproposeddirectandindirectmeasuresamountsto
39.5-8millionunitsofaccount,i.e.3-99unitsof
accountpermetrictonproduced ;
Whereasthisrepresentsa0-3%increaseinthetotal
amountofaidcomparedwith1973;whereasthe
amountofaidpermetrictonhasrisenfrom3-82
unitsofaccountto3-99unitsofaccount,i.e.by
4-5%;

NoL238/30 OfficialJournaloftheEuropeanCommunities10.9.75
4.Partialremissionofthewagestaxduefromcoal
miningundertakings ,uptoamaximumofDM
94million;
5.GrantofinvestmentaidnotexceedingDM160-1
milliontocoalminingundertakings inorderto
encourageinvestment ;
6.PaymentofinstalmentsowedbyRAGinrespect
ofthepaymentofstate-guaranteed compensation
totheformermine-owning companies,uptoa
maximumofDM50million;
7.Subsidiestowardsthecoalindustry'scontraction
costs,uptoamaximumofDM99million;
8.Subsidiestowardspaymentofthecoalindustry's
olddebts,uptoamaximumofDM69million;
9.Aidfordevelopmentandtrials,uptoamaximum
ofDM10million;
10.PaymentonbehalfofRuhrkohleAG,ofinstal­
mentsinrespectofth<;specialitemtooffset
depreciationinconnectionwithpitclosures,up
toamaximumofDM48million;
11.MeasuresforthebenefitoftheIbbenbiirenmines
ofPreussagAG,uptoamaximumofDM60
million.
Article2
TheFederalGovernmentshallsupplytheCommis­
sionwithparticularsby15November1975regarding
theaidsgrantedpursuanttothisDecision,inparti­
culartheamountspaidandthemannerinwhichthey
wereapportioned .
Article3
ThisDecisionisaddressedtotheFederalRepublicof
Germany .Whereasthefollowingremarksmustbemadein
respectofthecompatibility ofthetotalamountof
Germanaidswiththeproperfunctioningofthe
commonmarket; «
—therehasbeennonoticeabledeclineintradein
coalbetweentheFederalRepublicofGermany
andtheotherCommunitycountriesin1974,
—thequantitiesofGermancoalsoldataligned
pricesin1973werenegligible;nopricealign­
mentagreementswereconcludedin1974,
—thepricesofcokingcoalandboilercoalin
Germanydidnotleadtoindirectaidsforindus­
trial-usersofcoalin1974,
—theclosureofunprofitablepitsleadstorationaliza­
tionandtheconcentration ofproductioninpits
whereproductivityishighest;
WhereasitcanthereforebesaidthattheGermanaids
tothecoalindustryarecompatiblewiththeproper
functioningofthecommonmarket;
Whereasthisappliesevenifaccountistakenofthe
aidsgrantedtothecoalindustryunderDecisionNo
73/287/ECSC;
WhereasunderArticle11(1)ofDecisionNo3/71/
ECSCtheCommission mustensurethattheaidsauth­
orizedareusedforthepurposesetoutinArticles6to
9ofthatDecision ;whereastothisenditmustbe
informedinparticularoftheamountandapportion­
mentofsuchaids,
HASADOPTED THISDECISION :
Article1
TheGovernmentoftheFederalRepublicofGermany
isherebyauthorizedtogranttotheGermancoal
industryinthecalendaryear1974thefollowingaids:
1.Remissionoftwothirdsofthepropertylevyand
thelevyonprofitsfromcreditsonpitsduetobe
closed;
2.PaymentthroughtheAktionsgemeinschaft
DeutscheSteinkohlenreviere ofclosurepremiums
amountingtoDM20permetrictonofdisconti­
nuedproduction ;
3.Reimbursement ofthecostsofpumpingout
underground waterfromclosedpits,uptoa
maximumofDM39million;DoneatBrussels,10July1975.
FortheCommission
ThePresident
Francois-Xavier ORTOLI