NoL46/12 OfficialJournaloftheEuropeanCommunities 21.2.76
COMMISSION
COMMISSION DECISION
of17December1975
approvingaidstobegrantedbytheFederalRepublicofGermanyforthebenefitof
untertakingsinthecoalindustryinrespectof1975
(OnlytheGermantextisauthentic)
76/212/ECSC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheprovisionsoftheTreaty
establishing theEuropeanCoalandSteel
Community ,andinparticularArticles2,3,4and5
thereof,
HavingregardtoCommissionDecision3/71/ECSCof
22December1970onCommunity rulesfor
interventionbyMemberStatesforthebenefitofthe
coalindustry(*),
HavingregardtoDecision73/287/ECSCof25July
1973oncokingcoalandcoke(2),andinparticular
Article9(1)thereof,
HavingconsultedtheCouncil,
WhereastheGovernmentoftheFederalRepublicof
GermanyhasinformedtheCommission ,pursuantto
Article2ofDecision3/71/ECSC,ofthefinancial
measureswhichitproposestoimplementdirectlyor
indirectlyforthebenefitofthecoalindutryfor1975;
whereas,amongthesemeasures,thefollowingaids
shouldbeauthorizedpursuanttotheaforementioneci
Decision:Aidtowatersupplyundertakingsinrespect
ofexpenditureincurredinremovingunder­
groundwaterfromclosedpits
Subsidiesinrespectofexpenditureresulting
fromconcentration inthecoal-mining
industry
Subsidiesinrespectoftheresidualdebtsof
thecoal-miningindustry
SumdischargingtheRuhrkohleAGfrom
theliabilitytopaypartsumstowardsthe
specialitemfordepreciation following
closures
Investmentaidstoindividualprojectsunder
anoverallinvestmentprogramme
Premiumstoshiftworkersandpiece
workersinrespectofeachshiftworked
underground
Aidfordevelopmentandtestingnewly­
developedequipmentinthecoal-mining
industry
PaymentoftheinstalmentsowedbyRAG
inrespectofState-guaranted compensation
totheformermine-owningcompanies
MeasuresforthebenefitofthePreussagAG60-0
72-0
157-5
48-0
422-5
123-0
28-0
63-4
30-0 millionDM
Aidsasfollowstobepaidthroughthe
'Aktionsgemeinschaft DeutscheSteinkohle­
reviereGmbH'inrespectofpitclosures:
—aidinrespectofequalizationofburdens
(Lastenausgleich )payments 15-0
—closurepremiums 112-5
Total127-5Whereastheaforementioned aidsareinaccordance
withthecriterialaiddowninArticles6to9of
Decision3/71/ECSCfortheadmissibilityofsucha
Stateassistance;
Whereastheaidtobepaidthroughthe
'Aktionsgemeinschaft DeutscheSteinkohlenreviere '
maybegrantedonlyonconditionthatitisusedin
connectionwith'atotalorparticalclosureofpits'
(Article6(1)ofDecision3/71/ECSC);(*)OJNoL3,5.1.1971,p.7.
(2)OJNoL259,15.9.1973,p.36.

21.2.76 OfficialJournaloftheEuropeanCommunities NoL46/13
Whereastheamountsofsuchaidsdonotexceedthe
permissiblelevel;
Whereasasregardstheaidinrespectof'equalization'
paymentsthegovernmenthastakenintoaccountthe
factthattheclosureofapitleadstothedestruction
toaconsiderabledegreeoftheoriginalfixedassets;
whereastheaidwhichconsistsintheremissionof
two-thirdsofthelevyonassetsand'creditgains'
(Vermogens-undKreditgewinnabgabe )tothe
EqualizationFund(Lastenausgleichsfonds )isinany
caseconsiderablylowerthantheamountofcapital
lostasaresultoftheclosureofthepitsandis
thereforewithinthelimitslaiddowninArticle6of
Decision3/71/ECSC;
Whereastheclosurepremiumpaidtothe
undertakings inthecoalindustrybythe
'Aktionsgemeinschaft DeutscheSteinkohlenreviere 'in
respectoftheclosuresamounttoalumpsumofDM
20permetrictonproduced;whereasthisamountis
farfromsufficienttocovertheactualcostsof
closures;whereas,aftertheclosure,thecontinuing
obligationsoftheundertakingsinrespectofmining
damageandsocialchargescanbeestimatedatDM
30toDM35permetrictonproducedfor1975;
Whereasthelumpsumaidgranteddoesnottherefore
exceedtheexpenditureontheclosureofpitsandis
thereforecompatiblewithArticle6(2)ofDecision
3/71/ECSC;
WhereasthepaymentofaidamountingtoDM60
millionfortheremovalofundergroundwaterfrom
closedpitsislikewisecompatiblewithArticle6(1)of
Decision3/71/ECSC;
WhereastheGermancoal-miningundertakings—
which,aspartoftheirprogrammetoadapt
productiontothemarketconditions,areundertaking
pitclosuresleadingtoalastingreductionofcoal
productionafter1January1973—receiveaids
towardstheburdensresultingfromthereduced
production ;whereasaidtakestheformofalump
sumofDM30foreachmetrictonofreductionin
annualcapacity—spreadoverfiveyears—without
inanycaseexceedingtheburdensactuallyincurredby
theundertakings ;
Whereasthepurposeandamountofaidappliedfor
showthatthismeasureiscompatiblewithArticle6
(1)(1)ofDecision3/71/ECSC;
Whereasthesubsidiestowardstheresidualburdens
ofthecoal-miningindustrycomplementtheclosurepremium;whereastheresidualburdenscomprise
costsforminingdamage,pensionobligationsand
concessionary coalobligationsresultingfrompit
closurespreviousto1January1972;whereasaidis
grantedfortheseburdensactuallyincurredbythe
undertakings ;
Whereasthepurposeandamountofaidappliedfor
showthatthismeasureiscompatiblewithArticle6
(1)(1)ofDecision3/71/ECSC;
WhereasdischargingtheRuhrkohleAGfromthe
liabilitytopaypartsumstowardsthespecialitemfor
coveringdepreciationfollowingclosuresisaspecial
measureofbehalfoftheRAG;
WhereastheRAGhashadtomakespecial
depreciationforthefixedassetslostduringpit
closuresinpastyears;whereastheRAGhastheright
underArticle8(2)ofthe1969taxamendmentlawto
placeaspecialitemforthespecialdeprecationonthe
assetssideoftheirbalancewhichcanbepaidoffby
instalmentsinthefollowingyears;
Whereasitwasassumedin1969thatthe
undertaking'sprofit-and-loss positioninthe
followingyearswouldbesofavourablethatthe
step-by-stepdepreciationcouldactuallybeincluded
intheproductioncostsorprofits;whereas,inviewof
theunfavourable developmentwhichactuallytook
placeinthefollowingyears,theRAGisnolonger
abletobearinadditionthecostsofthisdepreciation
fromearlieryears;
WhereastheRAGistoreceiveaidfromthepublic
authoritiesofDM48millionayearoveraperiodof
10yearstoenableittowriteoffpartofthespecial
item;
Whereasspecialwrite-offsintheeventofpitclosures
arepartofclosurecosts;whereastheaidservesto
reducecostsanditspurposeandamountistherefore
compatiblewithArticle6(1)ofDecision3/71/ECSC;
WhereastheinvestmentaidofDM422-5million
consistsofnormalaid(DM197-5million)and
specialinvestmentaid(DM225-0million)grantedas
partofthemeasurestorevivetheeconomyasa
whole;
Whereasthepurposeoftheinvestmentaidsisto
increasetheeconomicviabilityoftheGermancoal
industry;whereastheundertakingsmayusetheaid
forinvestmentsinpits,auxiliaryinstallationsand
processingplant;

NoL46/14 OfficialJournaloftheEuropeanCommunities 21.2.76
Whereasitisnotyetpossibletoindicatehowtheaid
for1975willbeapportionedamongtheindividual
projects;whereasthiswillnotbepossiblebeforethe
endof1975;WhereaspaymentbytheFederalGovernmentof
theinstalmentsinrespectofState-guaranteed
compensation isthereforecompatiblewiththefirst
paragraphofArticle9(1)ofDecision3/71/ECSC;
Whereasthepurposeandamountoftheaidapplied
forshowthatthismeasureiscompatiblewithArticle
7(2)ofDecision3/71/ECSC;whereastheFederal
GovernmentisboundtonotifytheCommissionat
leastonceayearinthecaseofeachprojectofthe
objectivespursued,theamountsinvestedandthe
amountofaidgranted;Whereasasregardsthecalculationofthe
appropriations foraidfromthedifferencebetween
productioncostsandrevenueitisfoundthattheaid
willnotcoveralltheoperatinglosseswhichcanbe
expectedduring1975;
WhereassuchaidisthereforecompatiblewithArticle
9(2)ofDecision3/71/ECSC;
WhereastheFederalGovernmentgrantsaidto
PreussagAG'sIbbenbiirenmine,whichhasworked
atalossforyears,inordertoavoidtemporary
supplydifficultiesandbecauseofthepit'simportance
fortheIbbenbxirenareaasregardsregionaland
socialpolicy;whereastheundertakingisitselfunable
tofinancethenecessaryinvestmentssothatithasto
begrantedapartiallyrepayablesubsidytocoverpart
ofthelosses;Whereastheaidtowardsthepaymentofthe
coal-winningpremiumhelpsthecoalindustryto
achieveastablesituationasregardsqualified
workers,whichisabsolutelyimperativeifits
productivityistoincrease;whereastheundertakings
aremoreoverinvolvedinexpenditureonthe
recruitment ,training,retrainingandretentionof
workerswhichgreatlyexceedstheamountofthe
contributiontothispremium;
Whereasthepurposeandamountofthepremiumto
coal-minersshowthatthismeasureiscompatible
withArticle7(3)ofDecision3/71/ECSC;whereasa
rapidandlastingrecoverybythecoal-mining
industrydemandsthatresearchresultsshouldbe
usedintheproductionprocessassoonaspossible
afterdevelopmentandinitialtrials;whereastheaidis
grantedforindividualprojectswhichpromisetobe
oftangibleeconomicbenefittothecoal-mining
industryinthemediumterm;Whereasthepurposeoftheaidandtheamountof
DM30millionpaidshowthatthismeasureis
compatiblewithArticle9(1)and(2);
Whereastheexaminationofthecompatibilityofthe
Germanaidwiththeproperfunctioningofthe
commonmarketmustincludealldirectandindirect
measurestobetakenforthebenefitofthecoal
industryin1975(Article3(2)ofDecision
3/71/ECSC);WhereasthetotalaidofDM28millionfor1975
representsasubsidytowardsthefinancialburdens
actuallyarising;
Whereasthepurposeandamountoftheaidallow
thatthismeasureiscompatiblewithArticle7(1)of
Decision3/71/ECSC;Whereasonthatbasisofcalculation,thetotalcostof
theproposeddirectandindirectmeasuresamountsto
360-8millionunitsofaccount,i.e.3-52unitsof
accountpermetrictonproduced;whereasthismeans
an11-3%reductioninthetotalamountofaid
comparedto1974;whereastheamountofaidper
metrictonwilldropfrom4-02unitsofaccountto
3-52unitsofaccount,i.e.by12-4%;
Whereasthefollowingremarkscanbemadeonthe
compatibilityofthetotalamountoftheGermanaids
withtheproperfunctioningofthecommonmarket:
—noadverseeffectontradeincoalbetweenthe
FederalRepublicofGermanyandtheother
MemberStatesisexpectedin1975;
—nopricealignmentagreementsareexpectedin
1975;Whereasprovisionhasbeenmadefor1975forthe
publicauthorities (inlieuofRAG)topayan
instalmentofcompensation ofDM63-4millionto
theformerpitowners,whohaveaState-guaranteed
claimtocompensationagainstRAG;
Whereasin1974RAGstillsufferredlosses;whereas
thepaymentoftheinstalmentsbythepublic
authoritiesistoberegardedasameasureaimedat
avoidingfinancialdifficultiesatRAGaswellas
temporarysupplydifficultiesonthecoalmarket;

21.2.76 OfficialJournaloftheEuropeanCommunities NoL46/15
—thepricesofGermancokingcoalandboilercoal
in1975donotamounttoindirectaidto
industrialconsumersofcoal;
—theclosureoftwoorthreeunprofitablepitswill
leadtorationalization andtheconcentration of
productioninpitswhereproductivityishighest;
Whereasitmaythereforebeconcludedthatthe
Germanaidsforthebenefitofthecoalindustryare
compatiblewiththeproperfunctioningofthe
commonmarket;
Whereasthisappliesevenwhenaccountistakenof
thoseaidspaidtothecoalminesunderDecision
73/287/EEC;
Whereas,pursuanttoArticle11(1)ofDecision
3/71/ECSC,theCommissionmustensurethatthe
aidsauthorizedareusedforthepurposessetoutin
Articles6to9ofthatDecision;whereasthe
Commissionmustbeinformedinparticularofthe
amountoftheaidsandofthemannerinwhichthey
areapportioned ,5.subsidiestowardstheresidualburdensofthe
coalindustry,uptoamaximumofDM157-5
million;
6.dischargingtheRuhrkohleAGfromtheliability
topayinstalmentstowardsthespecialitemto
coverdepreciationasaresultofclosure,uptoa
maximumofDM48million;
7.grantofinvestmentaidinanamountnot
exceedingDM422-5milliontoundertakings in
thecoalindustryinordertoencourage
investment ;
8.provisionofpremiumstoshiftworkersandpiece
workersinrespectofsuchshiftworked
underground ,uptoamaximumofDM123
million;
9.backingfordevelopmentandtrialsatafigure
notexceedingDM28million;
10.paymentofinstalmentsowedbyRAGinrespect
oftheformermine-owningcompanies,uptoa
maximumofDM63-4million;
11.measuresforthebenefitofthePreussagAG's
Ibbenbiirenpit,uptoamaximumofDM30
million.
Article2HASADOPTEDTHISDECISION :
Article1TheFederalGovernmentshallnotifytheCommission
by30April1976ofdetailsoftheaidsgranted
pursuanttothisDecision,inparticularasregardsthe
amountspaidandthemannerinwhichtheyare
apportioned .
Article3
ThisDecisionisaddressedtotheFederalRepublicof
Germany.TheGovernmentoftheFederalRepublicofGermany
isherebyauthorizedtograntthefollowingaidsfor
1975forthebenefitoftheGermancoalindustry:
1.remissionoftwo-thirdsoftheobligationsofpits
duetobeclosedinrespectofthelevyonassets
and'creditsgains'(Vermogens-undKredit­
gewinnabgabe );
2.paymentofaclosurepremium,atDM20per
metrictonproduced,throughthe'Aktionsge­
meinschaftDeutscheSteinkohlenreviere ';
3.reimbursement ofthecostofpumpingout
undergroundwaterfromclosedpits,uptoa
maximumofDM60million;
4.subsidiestowardsthecostofconcentrating the
coalindustry,uptoamaximumofDM72
million;DoneatBrussels,17December1975.
FortheCommission
HenriSIMONET
Vice-President