ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)370
Vol.1975/0149

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COMMISSION OFTHEEUROPEÀN COMMUMUES
COM(75)370final
Brussels ,10September 1975
REPORT PROMTHECOMMISSION TOTHECOUNCIL
AidstotheCommunity 'scoalindustry
(Experience andprospects )
COM(75)370final

XVII . XVll/35/2/75
CQTTJPTS
Page
Introduction
Chapter I
Past experience oftheapplication ofDecision ITo3/71 1
A.Introduction 1
B. .Theworkability ofDecision No3/71 2
(Bx)Assessment oftheworking ofDecision Fo3/71 2
(Bp)Practical difficulties inapplying theDeci- 5
Bion onaida tocoal indus try
(B^)Conclusion 10
Chapter II
Thedevelopment ofafuture Community system ofaidto
the coal industry
A.Therole ofcoal intheCommunity 'senergy policy 11
B.Theneed forjoint ,coordinated measures 12
C.Theneed for subsidies 14
D.Provisions ofthenew decision onaid 17
E.Conclusions 22
Chapter III
Conclusion andguidelines 24
A.Pindings 24
B.Guidelines 25
Annez
\
/

."Decision ITo3/71onaidstctheCommunity coalindustryis
validonlyuntil31December 1975*TheCommission musttakesteps
tosecuretheadoptionofanewDecision unanimously agreedtoby
theCouncil.
Theaccompanying documenthasbeenprepared bytheDirectorate-
GeneralforEnergytoprovidetheCouncilwithaclearaccountof
theproblems ofthesubsidization arrangements operated uptonow
ajidpavethewayforittoagreeonanewDecision.
Itdescribes theworkingoftheaidsinthepastfrom19^5to
1974?a-specialchapterisdevotedtopastpractical experience of
theapplication ofDecision ITo3/71»whichisofimportance forthe
planning ofanewaidsystem.
ChapterIIdiscusses theCommunity'snewenergysituation and
theimplementations forthedevising offutureCommunity arrangement
foraidingthecoalindustry .ItisproposedthattheCommunity par­
ticipates atthefinancing ofcertainaids.
Intheconclusions itisindicated thataCommunity aidsystem
willbeessential inthefuture,andthatitmustbeaflexible
onewherebytheaidscanalwaysbeadaptedtothevariouseconomic
situations inwhichthoindustry mayfinditself.

XVI1/35/2/75
IîTTRODUCTIOîT
Inview oftheseriouB structural problems facing theCommunity 'scoal
industry duotoafundamental change intheconditions ofcompetition
onthewcrld enar^market since 1953 ,theECSC found itnecessary in
1964 toadopt moasures toenable aidtobegranted tcthecoal industry .
Such aidhasmade iteasier "orundertakings toadapt their production
tothechanged market conditions andtodirect itrationally inorder
toprevent serious regional andsocial problems from arising inthe
Community 1scoalfields .
TheHigh Authority hadtocreate thenecessary legal bases toensure
that thenational aids would becoordinated according toCommunity cri­
teria andthat competition between coal producers wasdistorted aslittle
asnecessary .
Thalegal bases created bytheHigh Authority entered into force in1965.
TheCommission extended them ,inamended form ,in1971 <^idthey arevalid
until 31December 1975 » -
Chapter Icontains anaccount ofthemost significant past practical
ezperienca oftheapplication ofDecision Ho3/71*Although such expe­
rience accrued under earlier conditions onthecoal andenergy market ,.
i.e. before theoilcrises broke intheautumn of1973 ,itisalso of
importance forthefuture .
Chapter IIdescribes theproblems involved inanddetails cfaCommu­
nity system ofsubsidies designed fortherequirements andconditions
ofthesituation relating toenergy supply andenergy policy which has
emerged since 1974 *

Xvn/35/2/75
ChapterIIIcontains aconclusion andguidelines .
IntheAnnextotliisdocument :
-thecausesandconsequences cfthecoalmarketing crisisare
described ;
-themostimportant pointsinthedecisions onsubsidies adopted
bytheHighAuthority andCommission areindicated ;
-thetrendofaidsfrom19^5 "to1974isdescribed .
Thedocumentisprimarily forinformation andtoprovideaninsight
intoseriousproblems inthepast.Itshouldalsoserveasabasis
fordiscussion ofthefutureofaCommunity systemofaid,thequestion
being:whatproblems aretobesolvedgivonthenewenergysupply
situation ?

-1- XVI1/35/2/75
CHAPTERI
Pastpractical experience of"theapplication ofDecision ITc3/71
INTRODUCTION
1.Whenassessingtheapplication ofDecision No3/71itmustberemem­
beredthatinthepastthesubsidies referred tointheDecision con­
stituted onlyoneofthemeasuresofaidtothecoalindustry.Inad­
ditiontosubsidies ,protective measures werealsoimplemented ,e.g.
-importquotasforcoalfromnon-member countries (Germany)j
-importdutiesoncoalfromnon-member countries (Germany):
-taxesonfueloil
-variousauninietrative controls applicable toimported coal
(France).
Itisnotnecessary togointodetailhereontheprotective measures
implemented bytheGovernments oftheMemberStates.
2.TheGovernments ofthevarious MemberStateshaddifferent reasons
forintroducing protective measuresforthebenefitofthecoal
industry.Protection wasregarded asaformofaidwhichwascompa­
tiblewiththerequirements ofthemarket.Fiscalaspectsalsoente­
redintothepolitical considerations ,as,unlikesubsidies ,which
areaburdenonpublicbudgets,protective measures costnothing
(«*£.importquotas)crevenprovideasourceofpublicrevenue
(e.g.taxesonfueloil).
3.Alltheprotective measuresforthebenefitofthecoalindustry
wereintroduced before1965.Theywerenotabolished whenDecision
H63/65wasadopted,butwereonlyamendedduringtheperiodfrom
1965to1974.
EveiyCommunity countryleviesexcisedutiesonlightfueloil.
ExcisedutiesonheavyfueloilareleviedinGermany,Italy,
Luxembourg andtheNetherlands .

-2~ XVII/35/2/75
NoriWmeamtrcfl jrsvcboonintroduced .•--**
4«Protective measuresarenetaveryimportant component oftheaids
tothe"coalindustry.Consequently theydonethaveaverymarked
effectonthesubsidies grantedbytheMemberStatesforthebenefit
ofthecoalindustry.Themajorpartoftheaidgrantedtakesthe
formofsubsidies .
B.Theworkability ofDecision No3/71 ■
<vAssessmentoftheworkingofDecisionWo3/71
5.Thissectioncontains abriefaccountoftheapplication ofDecision
No3/71»"thefollovringaspectsarediscussed :
-Adaptation ofproduction tothemarket;
-Rationalisation andconcentration ofproduction onthebestpits;
-Prevention ofregional andsocialproblemsinthecoalfields ;
''-Prevention ofanydistortion opcompetition betweencoalproducers
intheCommunity . ::
Thesefourpointsconstitute themostimportant objectives of
Decision No3/65and3/71.
Adaptation ofproduction tothemarket
6,Asindicated inTable1intheAnnex,coalproduction intheCommu­
nityoftheSixfellbyapproximately 100milliontonnesfrom1965
(224.2milliontonnes)to1974(133milliontonnes).Itwas,of
course,notpossibleineveryyear,tomatchproduction precisely to
tholoyalichl fluctuations indemand,asthegreatvariations inthe
sizeofpitheadstocksshowquiteclearly(seeTable3ill"theAnnexe).
Theresulting mismatchings tsoHtihowever,bttribtttslaled tofailure
ofDecision No3/71tooperatecorrectly buttothewell-known ,in
flexibility ,fortechnical reasons,ofcoalproduction .

-3- mi/35/2/75
Thusitcanbe--*sconthatinthelongrun,subsidypolicyhashelped
tomatohproduction tothemarket.
Rationalization andconcentration ofproduction onthebestpits
7.Outputperman-shift underground –asanindicatorr ofthesuccess
cfrationlization measuresinthecoalindustry-rosefrom1634kg
in1958to2395KGin1964,i.G.byanaverageof125KGperyear
(=6.6'%seeTable5intheAnnex),intheCommunity 0.3originally
constituted (theSix).From1965"&01970,outputperman-shift in
theSixrosebyatotalcfapproximately 1000kg,anaverageof
200kg(-7.3;>)peryear:therateofincrease washigherinboth
absolute andpercentage terms.Aslowdown thenoccurred from1970
to1974;inabsolute termsoutputperman-shift intheSix-rose by
anaverageofbarely90kgineachofthoseyears,i.e.by2.5&
However,theslackening intherateofproductivity increase from
1970wasduetotechnical neteconomiccauses.Theaidsgranted
therefore hadafavourable effectontthetrendofproductivity .
8.Theconcentration ofproduction ongoodpits,takingintoaccount
regional andsocialfactors,hasalsoprovedsuccessful .Inthe
relatively high-output coalfields inGermanyproduction declined
mereslowlyfrom1964to1974(–327"),thanintheFrench(–57^)»
Belgian(-62,C)andNetherlands (-93/)coalfields .
Prevention ofregional andsocialproblems intheCommunity'scoalfields
9.From1958to1964thenumberofpersonsfullyemployedincoalmining
intheSixfellfrom1035800to736100i.e.anaveragecfapproxi­
mately50000personsorperyear,(seeTable6intheAnnex).From
<1965to1974thetotalworkforce declined from695800to325000i.e.
approximately 41000or8.8:>peryear.

XVI1/35/2/75
10.TheaimoftheGovernments oftheMember States wastoremodel
theeconomics ofthecoal-producing areas .Bearing this aimin
mind ,thereduction ofthework force from some 700000persons
in1965 to325000persons in1974 hastoheconsidered asuccess .
Itwasthemaximum possible under thecircumstances .Thefact that
thelimit wasreached interms ofwhat wassooially acceptable was
evident inBelgium in1965/66andinGermany in1967when there
was social unrest among theminers whowere concerned about their
livelihood .
Prevention ofdistortion cfcompetition between theCommunity 'scoal
producers
11.Asindicated intheAnnex varying amounts ofaidpertonne produced
were granted tothe cor.l industries intheMember States .The re­
sulting danger ofdistortion cfcompetition between coal producers
intheCommunity cannot beoverlooked .
12.AHighly reliable ,ifincomplete ,guide totheintensity cf
competition between coal producers intheCommunity isprovided
bythenumber ofprice alignment agreements concluded .In1964 ,
before subsidies were granted totheCommunity 'scoal industry ,
7«9million tonnes ofcoal (=3.4^ total output )were sold at
aligned prices bycoal producers incompetition with each other .
In1974there werevirtually nofurther price alignments *for
Community coal -. ..
13.Itshould notbeforgotten -inthis connection that in1972 some
local problems connected with competition arcse between producers
with pits infrontier areas ,i.e. between Netherlands ,German and
French producers .However ,ithasbeen found that ,onthewhole ,
noserious problems arose with regard tocompetition asaresult
I.e .price alingment agreements concluded between Community
producers .

5- xra/35/2/75
ofdisparities insubsidies .Aperfectsystemofsubsidies
quarantsed tojjrovanteventheslightest distortion ofcompeti­
tionispractically unattainable .
14»Itmaybeconcluded fromtheapplication ofDecision Fo3/71
asdescribed intheforegoing thatitsobjectives havebeen
achieved .Thedifferent factorsmakinguptheDecision haverarely
ledtoanyincompatibility oftheobjectives .
)Practice.!difficulties inapplyingtheDecision onaidstothecoal
:induetry
(a)Generalproblemswiththeauthorization ,ofaidsappliedfor
15.Theoperation ofDecisions Nos3/65and3/71isbasedonaproce­
durewherebytheGovernments oftheMemberStatesapplytothe
Commission by1IJcvember ofeachyearforauthorization ofthe
■estimated amountofaidwhichtheyplantograntforthecoming
year. '
Experience hasshownthattheCommission oftenreceivesapplica-
1 ■tionsfromtheGovernments oftheMemberStateslongafter1Novem <
berandthatconsequently authorization cannotbegranteduntil
;morethcjioneyearlater.-
......Therearebothpractical andpolitical reasonsfortheUember
States'delayinsupplying theirnotifications .
Thepractical problemsarecausedbythefactthateveryautumn
,.afprecastmustbomadeofthefuturefinancial position ofthe
coalindustry,whichdependsinacomplexmEMiner,V®5i]thelevfelof
output,revenue,wages,productivity ,costofmaterials and
equipment etc.
GeneralpoliticrJ reasonsalsoplayapart.Pastexperience has
shownthattheGovernments oftheMemberStatesdelayforecasts
orpremisescfeubeidies tothecoalmining industry becauseof

rr6– rm/35/2/75
thedifficult political commitment involved.
16.Howevervalidtheabovereasonsmaybe,itmU3t "bemadequiteclear
thatthesubsequent authorization ofsubsidies alreadypaidshould,
ongroundsofprinciple ,notbecomethegeneralrule.Priorauthori­
zationisessentialifforexampleanattemptistobemadeinad­
vancetorecognize andsolveanyproblems whichmi.^htarisewith
regardtocompetition ,asitisdifficult tosolvesuchproblems
oncetheyhavetalcenahold.
Delaysmusttherefore beavoidedasfaraspossibleinfuture.
(b)Specificproblems anddifficulties "connected withthev?,rious
fcrmgofaid ..
17•Certainproblemsarediscussed belowtomaketheGovernments ofthe
IiemberState?awareofthepractical consequences ofspecialmeasures
'•talceninthepast.Themainaimistomakeclearthedifficulties and
complications whicharisewhendifferent formaofaidco-exist .It
isclearthatalthoughDecision 3/71laysdownaCommunity proco-
•duref£vr'-~authorizing thegrantofaid,theGovernments oftho
"MemberStateshaveavailed themselves ofthevarious formsofaid
todiffering degrees(seepara^aph 23oftheAnnex).Although
thesystemisstandard.,themeasures (forms)ofaidarenot.
I
(b^)Statesubsidiesforsocialsecurityinstitutions
18.Thedifferent Traysinwhichthesocialsecurity schemesinthe
variousCommunity countries havedeveloped hasmeantthatthey
differnowfromcountrytocountry.Germrxy,France,Belgiumand
theNetherlands havespecialsocialsecurity schemesformining.
1

-7- XTîl/35/2/75
IntheUnitedKinfdcmtheminersarenetcovered Toyaspecial
schemebutoythenational socialsecurity scheme.
Thesocialsecuritycoststo"bebornebythecoalundertakings
arelowerinanintegrated schemethaninaspecialminers'scheme.
Associalsecurityispartofproduction costs,thiscouldleadin­
directlytodistortion ofcompetition .Itis,however,notpossible
toquantifythis.
IS.Ithc-snetbeenpossible tochangethisunsatisfactory situation
inthepast,norwillitbeinthefutura,Itcannotbeassumed
eitherthataspecialschemeforminewcrlcers willbehivedoff
fromintegrated schemesincertainCommunity countries ,orthat
inothercountries specialschemesforminerswillbemergedwith
thegeneralindustrial schemes.
(brt)Indirectsubsidies '
20.Indirect subsidies donotcomeunderanyspecificArticlein
Decision ?To3/71?butmustbenotifiedtotheCommission (onthe
basinofArticle2(l)(l)oftheDecision)whichcheckstheir
compliance withtheprinciple ofnon-discrimination enshrined in
Article 4cftheECSCTreaty.Ifindirect subsidies areintroduced
inthefcrmofsubsidies tocoalconsumers ,theCommission checks
tilemforcompliance -ndtfctorfljfciiwitll "Sib
S£Jet«rëeq,v.:a£i ifra.ECiSC.TireatÂy*
21.Indirect subsidies tothecoalindustryintheenlarged Community
in1974totalled 150.3millionu.a.ofwhich137»9millionu.a.
(92/v)wuii--paidoutinGermany(seeTables7and8intheAnnex).
Theindirectsubsidies grantedinBelgiumandFrance(8%ofthe
abovetotal),involveonlysmallamountsandareinconnected
.withsocialmeasures inforceforover20years.

-■s- mi/35/2/75
Theindirect subsidies granted inGermany in1974 involve only aid
fcrcoal burned inpower strtiora .Thoearlier system ofaidtopower
station coal inGermany wasoperative forthelast time in1974 ,being
replaced in1975 'byanewsystem under which electricity consumers
,theAselvtJcTmustob6ar -'thBsa0Bt; -.of';ansarizLg -thQ:'seSurityr fcf*■cleotrioi'ty
supplies .This eliminated aidpayments .
22.This newGerman system -itfell-conceived initself -creates fresh
problems asregards thecomparability ofsubsidies inthe ''ember
States.' Ifpower-station coal issubsidized bymeans ofdirect aids
tocoal producers inother Community countries ,this counts asaid ;
theGerman measure does not ,although itbenefits theccal industry .
(b,)Direct subsidies '
The scope ofdirect subsidies
23»Forthepurposes ofDocicion Ho3/71direct aids include allmeasures
included under Articles 6–9paid tocoal producers .
Theexperience ofthe par-t tenyears has sho'.m that theGovernments
ofsome Member States have applied aform ofdirect aids which ,al­
though .beneficial totheundertakings concerned from theeconomic
point ofview ,either didnot ccsne within thescope cfDecision
•.No3/71o*,?irthoy f?i "'ccnswithin itf»rcopscould not ■ftetqur.ntifi^.'' ,
:01 1 .
/
24»Such aidhasincluded thefollowing measures mtho past :
-Grant ofruarantees ,liquidity assistance andreduced interest
rates (Germany );
-Increase innon-interest -bearing capital andwriting-off of
long-term debts totheState (France ). .

-9-
-Revaluation offixed assets ,writing-off ofextraordinary
losses anddebts totheState (United Kingdom ).
25.Itmust bestressed quite clearly that such measures lead toa
reduction inproduction costs .Nobody ,noteven theCommission ,
isinaposition towork out their effect oncosts .What is •
certain ,however ,isthat such measures canaffect competition
between the coal producers .
Demarcation ofthepits and costing problems with direct subsidies
26.Themeasures ofaidreferred toinDecision No3/71relate only
topits .Therestriction ofthese aids topits ,and thefact that
the coal undertakings intheCommunity not only mine coal but also
process it (toproduce coke ,electricity ,etc.)andcarry out
other economic activities ,means that separate cost andrevenue
accounts must bedrawn upfor thepits inorder tofind outtheir
earnings position orneed for subsidies .
Aspecial Working Party ofCEPCEO (Working Party onCosts and
Revenue )hasdrawn upalist ofcriteria forworking outcosts
andprofits inthepits ,and this isthestandard used inalmost
1all theMember States oftheCommunity .However ,itmust be
pointed out that thesettreatment ofsubsidies forcosting
purposes has
1British cost accounting hasnot yetbeen aligned onthis
Community system .

•-1°- ■.XV1I/35/2/75
notyet"beenplacedona-scientific footingorstandardised inthe
^Community .Consequently ,costcomparisons iretwoanMemberStatesare
ofonlylimitedsignificance ,Ibcr-orrence hasshown ■thatonlyappro­
ximatecalculations arepossible.
TheCommission'sannualMemorandum onaidstothecoalindustry -
27.Finally,itmustbepointedoutthattheCommission hasexamined
theaidsproposed bytheGovernments oftheMemberStatesfortheir
legalcompatibility withthoprovisions oftheTree-ties andDecision
'No3/71*Theproperfunctioning efthecommonmarketincoal,i.e.
theproblems connected withcompetition arisingfromsubsidies,aleo
hadtobe.examined.Theresultsoftheexaminations weregivenannually
inMemoranda submitted totheCouncil onaconsultative basis.All
1.themearures ,withoutexception described inthoLenoranda during
.thelasttenyearshavebeenapproved bytheCommission ,.but,cnly
becauseinmanycasesproblems anddifficulties woreovercome through
directcontacts ,beforemeasures weretaken"which*wanlcThnoi havebeen
authorised .ThisshowsthatDecision Kb3/71»aaA,thesupervisory
activities carriedoutbytheCommission ,havehadgreatbearing
■onthemeasurestakenbytheTfemberSites'Governments .--.\
)Conclusion '" •::
28.Thepractical application ofDecision Fo3/71has,asindicated
above,givenrisetonotafewproblems anddifficulties ,which
areinevitable .Theycanbeattributed nottotheDecisionitself
buttothenatureofaid,i.e.theyarisewheneveraidsaregranted.
Thiswillgenerally applytoallfutureaidsystems.

11 mi/35/275
CHAPPERII •
Thedevelcmcnt ofafutureCommunity systemofaidtothecoal
industry
TheroleofcoalintheCommunity'senergypolicy
29.TheDecisions recentlyadopted "bytheCouncilwithregardtoenergy
policygiveprioritytocoalandlaydownguidelines ,thedetailsof
which,suchase.g.thoseconcerning aidstothecoalindustry,must
betakenintoaccount.^"
Thetargetsreducing thedegreeofdependsiceonimported energy
to5ff,o,or,ifpossible ,to40>*,by1985»and.ofmaintaining pro­
ductionofCommunity coalatitscurrentlevel(250mtce)undereco­
nomically satisfactory conditions placethequestion ofaidstothe,
coal "industryinanewlight. ,.
Theguidelines adoptedbytheCoiaiilforthepractical implementation
ofapolicyonbothanational andaCommunity basisprovidespeci­
ficallyinthecaseofcoalforthedevelopment andintroduction of
asolidfuelspolicydesignedtofulfiltherequirement ofdeveloping
/secure/sourcesourcesofenergyundereconomically satisfactory conditions .Inthis
connection theCouncilalsomentioned thepossibility ofintroducing
Community me&strres ofaidandalsomeasures designedtofacilitate
therequisite financing ofinvestments .Furthermore ,theCouncil
statedthattheprecondition formakingsuchinvestments inthesolid
fuelssectorwassteady&ndconstantsalesundereconomically satis-
2 -factoryconditions . .
CouncilDocioion of17December 1974on"Community energypolicy
objectives for1985"(Doc.E/3649/74»ENER79)of13February
*"1975en"Measurestoboimplemented toachievetheobjectives "
(Doc.R/505/75;EHSR24).
2Boc.R/305/75(3!ER24,§3,I,A).

12 XVII/35/2/75
30.ThequestionofaidstothoCommunity'sooalindustrywithintheframe­
workoftheCommunity'snewenergypolicyisinfluenced bythenowrole
playedbycoalonthe(energymarkbt. •
Sincetheimplementation ofDecision No3/7Itwoimportant eventshave
•;.occurred :-
-Developments ontheworldoilmarketsince1973havebroughtabout
fundamental changesinthepositionofcoal,whichhasbecomea
highlycompetitive sourceofenergyintheCommunity andhasin­
creasedinimportance .
'-Theacoession oftheUnitedKingdomtotheCommonMarketin1973
'-raisedthopotential oftheCommunity'scoalindustrytoalmost
doubleandmeansthat ,thomeasures alreadyinforcehadtobere-
examinedinviewofthenewstructure ofproduction .
'31»Asfarasthecompetitive position ofooalisconcerned ,itcanbe
saidthatthesharpincreaseinthepricesofimported UScokingcoal
and.fueloilenabledthepricesforCommunity coaltoboincreased
correspondingly ,thushelpingtobringabout .aconsiderable improvment
inthecoalindustry'sfinancial position .Ifthe"inherited "debts
(seepoint37below),whichareholongerconnected withcurrentpro­
'duction,aredisregarded ,some$Op.ofthe.Community'scoalproduction
wasprofitable ,onthebasisofthecostandpricerelationships on
theCommunity'senergymarketatthebeginriagof1975*
B.Theneedforjoint,coordinated measures ■■
32.Asindicated inChapterIabove,infuturethenr/tionrleconomic and
socialproblems whichusedtoarisebecauseofpitclosureinthecoal­
fieldswillriolongerbeintheforefront .Theproblem >
willinfutureconsistfarmoreindetermining therole

-13- XVIl/35/2/75
whichcoaloouldplaywithe,viowtosolvingtheproblemofenergy
supplies andthejointactionto"betakenbytheMemberStatesin
ordertoattainthatobjective .Thosolidarity requiredforthe
pursuitofcommonobjectives inthefieldofenergypolicymust
alsobecreatedintheindividual sectors,suchasthecoalsector.
33.Theprinciple oftheseparate examination andauthorization ofeach
aidbytheCommission mustcertainly beretained,asthemeasures
proposed bytheGovernments oftheMemberStatesareconsistent in
themselves andcompatible withtheshort-andlong-term objectives which
theCommunity hassetitselfwithregardtoenergypolicyandonthe
basisoftheCouncilResolutions of17December 1974and13February
1975.
Theprinciples contained intheResolution of17December 1974
necessarily implyhoweverforacertaindegreeofCommunity partici­
pationwheroappropriate inthefinancing ofaids.Thisappliespar­
ticularly inthecaseofthefollowing typesofaid:
-Investment aidsdesignedtohelptostabilize production (improve­
mentofprofitability oroperational safety)
-Aidtomaintain exceptional sensonal pitheadstocksofcoaland
cokeandlong-term security stocks
-Covering oipossiblelossesintherelatively bettercoalfields
andsecuring ofmarkets.
S"chCommunity participation wouldbyitsnaturegobeyondthe
philisophy ofthecurrentapproach andwouldbeanessential feature
ofanovorallCommunity Energypolicy.
Community participation inthegrantofinvestment wouldhelpto
stabilize production (rationalisation andthecreationofnew,profi­
tableproduction capacities )andwouldclearlybeintheGeneralinterest
oftheCommunity and
3oc.H/3649/74(EH3R79)PartII,§5,2.A.

-14- XVIl/35/2/75
Suchameasurewouldalsoboinlinowiththefinancial provisions
oftheECSCTreaty(Article49ff,andinparticularArticle54,
whichprovidesforthegrantofloansbytheHighAuthority tofaci­
litatethecarryingoutofinvestment programmes ).'
Recentdevelopments ontheenergymarkethaveshownveryclearly
thatthemaintenance ofpitheadstockscanreducetension ontho
marketwhenshortages occur.Thisappliesbothinthosecountries
whichconsumeCommunity coalandinthosewhichobtainmostof
theirsupplies fromthewcrldmarket .andwhichbenefitindirectly
fromthefactthatcountries whichmaintain pitheadstocksdonot
havetoobtainsupplies fromtheworldcoalmarkettoo.
Finally,ifaidsweretobegrantedtocoverlossesarisingasa
resultoftheeconomicsituation andsustained bytherelatively
bettercoalfield thiswouldguaranteee consumers intheCommunity
e.g.powerstationsstability ofsuppliesintermsofbothquanti­
tiesandprices.
Theneedforsubsidies
35.Theproblemsresulting fromtheg'rantofaidscannotallbesolved
inauniform way.Certain .Community coalproduction capacities will
infutureeitherrequirenoaidorwillrequireitonlytemporarily ,
whileotherswillremaindependent onaid.Ontheotherhand,it
isclearthatonlyroughestimates canbemadeofthefuturetrend
ofdemandforthevarioussourcesofenergy,therelationships be­
tweencostsandpricesofthevarioussourcesofenergyctfidthe
quantities ofCommunity andimportedsourcesofenergywhichwill
beavailable duringthenexttenyears.Itisparticularly difficult
todetermine thelong-orshort-torm trendofthecostandprice
relationships betweenCommunity coalandimportedsubstitute sources
ofenergyresulting fromthemultiplicity Cfmonetary problems .

-15- XVIl/35/2/75
Consequently ,nodefiniteanswercanbegiventothefundamental
questionofwhetherandtowhatoxtentaidswillberequiredin
future.
Inviewofthissituationitisimportant thatlegalbasisshouldbe
createdasfrom1976foranewsystemofaidtothecoalindustry,
ba.sedonCommunitycriteria.Thesystemofaidwouldtherebybecome
r,sortofsafetynetcreatedasaprecautionary measureandtobe
usedonlywhentheeconomicsituation seemedtorequireitandit
appearedtobecompatible withtheobjectives oftheenergypolicy.
Nevertheless itisstillnecessary topreventseriouseconomicor
socialproblems fromarisingasaresultofpitclosures.
However,whenmakingsuchageneralstatement abouttheneedfora
decision 011aid,itmustberemembered thattheeconomicsituation
intheCommunity'scoalindustrydiffersfromundertaking tounder­
takingandwillcontinue todoso.Acertain amountofdifferentiation
isnecessary toenableaclearideatobegainedoftheaidswhich
arerequired andtheconditions underwhichtheyshouldbegranted.
Withthisinview,aneffortmustbemadefirstandforemostto
ensurethatthe"inherited "debtsarenotincluded incurrentpro­
ductioncosts,despitethefactthatitisdifficult tocalculate
"inherited "debt3andsepraxethemfromcurrentproduction costs .
intheundertakings' accounts ,andthattheycannotbocalculated
accurately insomecanes."Inherited "debtsmainlyincludestate
subsidies tothenational socialsecurity systems,ontheonehand,
anddebt3inherited byundertakings asaresultofpitolosuresin
pastyears,ontheother.InthecoalindustryoftheCommunity of
thefJixthenumberofproductive pitsfellby288from389(1958)
to101attheendof1974.Evenafterapithasbeencloseddown
manyofthecosts(obligation topaypensions,paymentsinrespect
ofminingdnmago,drainagecosts,exceptional losses,etc.)are
stillincurredforseveralyearsaftertheclosure("inherited "
debts).Thepaymentofsocialsecuritybenefitstopensioners no
longeremployedinthecoalindustryalsocausescoststorise
moreandmoreeachye'r.

16 XYII/33/2/75
Suchcostsarenotconnected ,withcurrentproduction costsandcan
therefore notberegardedassubsidies inthetruesenseoftheword.
However,thenewdecision onaidmustincludesuchaidinorderto
facilitate monitoring althoughthecorresponding amountswouldnot
heregardedassubsidies tothecoalindustry .
Whetheradditional aidswillberequired oncethe"inherited "debts
havebeenpaidoff,andwhattypeofridsmightbesuitable,canbe
assessed onlybytalcingintoaccountfutureprospects whichdiffer
fromcoalfield tocoalfield andfrompittopit.
Despitethegeneralimprovement intheprofitandloss_position ,
therearestillpitsincertaincoalfields intheCommunity which
willnot.beabletocovertheircostsinfutureorwherethecoal
reservesareabouttobeexhausted .Suchpitswillprobably beclosed
wherever possibleaspartoftherationalization measures ,depending
onthecoalandenergysupplysituation .Aidsmustbegrantedtoco­
veroperating losses,topreventregional andsocialproblems from
arisinginthosecoalfields intheCommunity inwhichnoadequate
solution hasyetbeenfoundtotheproblemoffinding newemployment
forminers whohavebeenmaderedundant .Aidtosolvesuchuroblems
'i• . .-wouldhavetobegrantedonashort-term basis
!' '' '
-couldbegrantedonlyinconnection withtheplannedclosure
ofpits
-couldinvolveverylargeamountsatfirst*
In.thecaseofthecoalfields wheroproductivity ic'highest(inclu­
dingthosewhichplayanimportantpartinsupplyingtheCommunity),
itmaybethatinthefuture,sincethelong-term trendofcosts
andpricescannotbedetermined ,cyclical andexternalinfluences
couldleadtosuchlargeoperating lossesthattheundertakings
couldfindthemselves temporarily inseriousdifficulties .Then
aidsdesignedtodealwiththisspecificsituation willhaveTObe
grantedtemporarily .Furthermore ,itmustberemenbered that,if

-17- XVI1/33/5/75
"thosecoalfields aretobea"blo"toincreasetheircapacities and,
ifpossible ,theirproduction ,theywillrequirespecialaids,
grantedonr,temporary "basis,toenablethemtomakeinvestments ,
recruitsuitablestaff,buildupexceptional seasonalstories,etc.
(seepoints49-50below).
However,irrespective ofwhetherthecoalfields whereproductivity
isltighostwillorwillnotrequireanyaid,itisimportantthat •
inthelongtermtheamountofaidsgrantedtosuchcoalfields should
belimited.Tiereisaninterrelationship betweentherequirements
relatingtothosecurityofenergysupplies andtheacceptable costs
thereof.Opinions onthisinterrelationship willalwaysdiffer,and
itcannotboquantified inadvance;however,itisobviousthatthe
question ofthesecurity ofsupplies cannotbodealtwith,incomplete
iaiation fromeconomicconsiderations .Furthermore along-term aid
policyimistnotserveasa"carteblanche"enablingthebranchof
economicactivityinquestiontocoverallitsexpenses,however
large,outofpublicmoneywhenever therevenuefrcmitsproduction
isinadequate .
Itwouldscornadvisable tolaydoraionlytheprinciples inthiscon-
~nectionandnottodrawup.^1^rmumamountsofaid.Itisnotpos­
sibletolaydownlong-term limitsformeasures ofaid;decisions will
havetobeta'ceninindividual casesdepending 011theoverallenergy
supplysituation andontheparticular economicsituation inthein­
dividualcoalfields ;suchdecisions shouldbebasedontheoutcome
ofjointdiscussions . '
Provisions ofthenewdécision onaid
40.Thefollowing pointsclonotdealxiththedetailsandwordingofa
newdecision 011aid.Theyaredesignedtoindicate onlythepossible
skeleton ofthenewdecision .

xra/35/2/75
Generalprovisions
41.Tzieintroduction ofjointdiscussions enddecision-making withre­
gardtothegrantoftheaidswhichmightberetired doesnotimply -
thattheMemberStateswillbeobligedtoadoptmeasures underthe
newsystemofaid.TheMemberS"tetcswillbeempov/ered,andnot
obliged,bytheCommission tograntaidoncertainconditions .
42.Anannualjointdiscussion wouldbeheldtodealwithquestions of
principal andthesuitability ofaid,andcouMalso involvedis­
cussionofthemeasures proposed bythegovernments oftheproducing

-19- XVI1/35/2/75
countries forthecomingyear,bearinginmindtheenergysupply
situation inthe'Community .Suchadiscussion shouldincludeevery
aspectofenergysupplies ,1i.e*: ;";
–anexchangeofinformation onexperience gainedduringthecurrent
calendar year5
–theoutlookforthefollowing calendaryearandfor--the.long-term '
trendsj
–"bothexisting measures andnewmeasures tobeintroduced .
43.Thenewsystemofaidmustbeflexible andmustenabletheaidsto
beadaptedatanytimetovariouseconomicsituations inwhichthe
Community 1s,coalindustry mightinfuturefinditself..
,44.LikeDecision No,3/71»"t-ienew.decisionmustalsoensurethatthe
measurqs adoptedarelimitedtothosewhicharestricHynecessary .
:.Consequently theaidsshouldbegrantedonlytopits.andnotto
,theplantsengagedintheupgrading ofcoalandotheractivities .
Thedifficulties involved indetermining thecostsincurred bythe
varioussections ofanundertaking mustbetakenintoaccount.
Spécialprovisions ^
■45*Thefollowing elements areimportant andshouldbeborneinmind
.whendrawingupthenewaidarrangements :
-coverageofaten-yearperiodupto1985
-therationalization ofworkandtheconcentration ofproduction
onthecoalfields orpitswheretheeconomicreturnsarehighest
■-■'investment andemployment policy •'
"-•-coalstockingpolicy ■" -''
■énsuring guaranteed markets
Theneedforthereorganization oftheSystemofaidonthebasis
'ofthepointslistedabovewitheffectfrom1976willbediscussed
brieflybelow.

y
20 ,.- X7ii/35/?>5
46.Thenewsystem ofaidshould beregarded ascomplementing theob­
jectives oftheCommunity' scoal policy «,Astheenergy policy covers
theperiod uPto1985 »"thenewdecision onaidmust also relate to
that period ,otherwise thepolitical basis would belacking inmany
important respects .Asthenewdecision will underlie theadoption ;
andabolition ofmeasures ,andasitrepresents aseries of"enabling
provisions "thefact that itwill beapplicable foraperiod often
years ,innowayimplies that anymeasures will have tobeapplied
throughout that period ,
47*Asfarasrationalization isconcerned itmust bepossible toimplement
measures enabling theundertakings tomaintain oreven increase their
production ingood coalfields inorder tocompensate fortheloss of
'production caused bypitclosure incoalfields where profitibility is
^ low.Even those coalfields where profitability isrelatively low ,
theneed tosupply specific markets with special types of'coal may
make itneoessary tomaintain production ortocut itback only
gradually . •
48.Increased investment activity isofvital importance ifproduction is
tobestabilized .Pursuant toArticle ^(l).pf Decision No . in­
vestment aids maybegranted onlji -forrationalization measures ,i.e.
■"toincrease profitability ortoimprove mine safety ".Thehewdeci­
sion should expand onthat principle bystating that investment aids
maybegranted tocreate newproduction capacities intherelatively
good coalfields *
Inorder toprevent investment aids from leading toexceptionally large
profits intheundertakings *balance sheets ,provision ,must bemade for
such aids toberecorded insuch away :that they donot .affect "profits .
Itmust also ,bepointed out .that infuture investment aids might cease
tobegranted ormight bereduced substantially ifcoal undertakings
make profits themselves byselling their products .This does notdepend
o.nly ontheprices ofrival sources ofenergy ,butalso onthepricing

-21- XVIl/35/2/75
policyadoptedforCommunity coal#Itshouldalsobepointedoutin
thisconnection thatitwouldbekdvisible toexempttheself–gene­
ratedearningsofthecoal"industry fromtaxationtotheextendthat
thecoalindustryundertakes tofinanceinvestment withthatmoney5
thiswouldincreasethedegreeofself-financing ofinvestments .
49•Themaintenance ofpitheadstocksofcoalandcokehasin'thepast
provedtobeaveryusefulwayofdealingwithcyclicalfluctuations
inthedemandforcoal.PursuanttoArticle8ofDecision No3/71»aid-
maybegrantedforpitheadstocks.Toensuretheshort-term continuity
ofsupplies and..thecontinuity ofproduction ,itisimportant thatin
;futuretheprovisions ofArticle8ofDecision No3/71shouldnot
onlyberetained butthattheyshouldalsobeexpanded inthenew
decision . "
In-ordertoexempttheundertakings fromtheneedtobeattheseexcep­
tionalcosts,onepossibility whichcouldbeConsidered 'wouldbeto
'fixtheminimumlevelatwhichaidsforpitheadstocksmaybegranted
notatone^twelfth oftheannualproduction (Article8(2)),butat
one-twenty-fourth.Furthermore ,thestock-holding costs(Article8(3))
couldincludeallowance fordepreciation (butnotfordownward
adjustments invalue).
Theprinciple contained inArticle 8i.e.thatonlythe-storagecosts
assuchshouldbereimbursed shouldberetained !i.e.noaidsorloans
maybegrantedfortheinvestment instocks.Thecyclicalfluctuations
ofpitheadstocksmakeitverydifficult tomonitormovements ofcapi­
tal?furthermore ,theyleadtouncertainties andtotheabilitytomani­
pulatethepricingpolicywhensellingpitheadstocks.
50.Quiteapartfromtheaidarrangements forexceptional seasonalstocks ■
"described above,thequestionofthelong-term securitystockstobe
builtupmustbediscussed .Suchstockscouldbeusedincaseof
interruption ofenergysupplies.Suchameasurewouldbeconnected

..\ -22 XVTl/15/2/15
,purelywithsupply .policyandwould .beinthegeneraleconomicin­
terest,Ifthepartial;securitystockswereheld.entirelyorinpart
bytheproducers ,thepublicauthorities .wouldhavetorepaythemthe
investedcapitalaswellastheircurrentcosts,
51.Asfarastheensuringofguaranteed marketsisconcerned ,itmustbe
pointedoutthatthecoking-coal sectorisgoverned byDecision No
73/2875however,long-term arrangements forpowerstationcoalmust
stillbedrawnupinsomecountries ,
Aspecialtypeofaidshouldbeselectedforpowerstationcoal(should
aidforsecuringmarketsberequiredatall);thataidshouldbeinte­
gratedinthenewgeneralsystemanditsapplication shouldnotbe
hindered ,
/*""Asregards ,thenationalmeasuresofaidtosecuremarketsforsteam
coal,itisnecessary toanswerthequestionofwhetherandhowany
oostsincurred bytheproducing countries couldbedistributed evenly
betweenalltheMemberStatesoftheCommunity ,.Thisquestionis
.currently beingexamined.InanycasesuchaCommunity systemof
financing wouldbesetupoutsidetheframework ofthenewsystemof
aid£7
E,Conclusions
52,Thenewdecision onaidoutlined aboveconstitutes alegalbasiswhich
mustbeadoptedasaprecautionary measureincaseanydifficulties
■Shouldarise.
Thegovernments of'theMemberStatesshouldmakeuseofthevarious
.possibilities ofgrantingaidsofferedbythenewsystemofaidOnly^if3it
,absolutely necessary inordertosolveproblems whichcannotbesolved
inany.otherway.

-23 XVI1/35/2/75
Shouldproblemsrelating tocompetition ariseinfutureinsituations
ofeconomic surplus,theymightprovedifficult tosolve.Thediffi­
cultiesar-iseinthesolution -ofproblems connected withthecal­
culation ofcosts,buttheycanbeacceptedif,theyenableproduction
tobestabilized andrationalized andtheamountofenergyproduced
bytheCommunity foritsownusetobeincreased.

-r24r XVIJ.
<r
ÇK-1PTSRIII .
Conclusion andgui.lelines
Thefindings ofandproblems discussed inthisdocument can"be
summarized asfollows :
A.Findings
1.AidstotheCommunity'scoalindustryduringthepastten
yearshaverisenveryconsiderably .Thegrowing -needfor
subsidies resulted fromthedeclining competitiveness ofthe
coalindustry.
2.Theobjectives ofDecisicjs ITos3/65and3/71havebeen
achieved duringthepasttenyears}
-production hasbeenadaptedtomarketconditions ;.
-production hasbeenconcentrated onthebestpita,thus
promoting rationalization ;
-regional andsocialproblemsinthecoalfields havelargely
,beerr'avoided ;;lv
-therehasbeenveiylittledistortion ofcompetition
between Community coalproducers .
3.Thepractical application ofdecisions tograntaidhas
givenrisetoanumberofdifficulties ,e.g.s
-Belaysinnotifying theCommission ofaidshavemeant
delaysbeforetheCommission canauthorize suchaid;
-Theeffects onproduction costsofguarantees ,liquidity
aids,reducedinterestrates,debtwrite-offs ,writing
lossesoffcapital,andincreases incapitalcannotbe
assessed .,buttheyaffecttheconditions ofcompetition ;

-25- XVII/35/2/75
-Demarcation ofpits ,(tcwhich aids anddecisions onsubsidies
alone relate )from undertakings 1other operations hasgiven rise to
costing problems .
4»Thepractical application ofDecision Fo3/71hasgiven rise to
problems anddifficulties .These areinevitable ,however ,andtheir
effects must "beminimized .They areattributable not totheDecision
itself "buttotheinherent nature ofaids ,i.e ,they arise whenever
aids aregranted .
E.Guideline s
Thefollowing suspects must beborne inmind asaguideline forthe
future :
1.ACommunity aidsystem will beessential mfuture .Thesystem
must constitute animportant element inanactive ,Community coal
policy through participation bytheCommission inthe -financing
ofsubsidies .
2.Thefuture system ofaidmust provide conti^^y with theaid
structure which grew tipinthepast andmust take into aocount
thenew ,post-1974energy-supply position andtheguidelines rela­
ting toenergy andcoal policies ,
V.3.Itisimportant that aflexible system should beintroduced sothat
itwill always be.possible toadapt theaidstovarious economic
:situations inwhich thorcoal industry might find itself infuture ,
4.Ifcontinuity withtheaidstructure which grawupinthepastisto
bemaintained ,itisessential that :

-undertakings shouldcontinueinthefuturetoenjoyfreedomfrom
theinherited "burdensofthepast;
-regional andsocialproblems shouldbetakenintoaccount when
uneconomic pitsarebeingclosed.
Ifthe.newDecisionistocomplywiththenewenergyanacoalpolicy
guidelines,itisessential that:
-theDecisionshouldbovalidforaperiodoftenyears,i.e.
until1985?
-TheCommunity'scoalproduction shouldbekeptstableinthe
longterm,inordertoincreasethesecurityofenergysupplies.
Tothisfenditisimportant that:
-anyoperating lossescausedbycyclicalfactorsshouldbemadegood
byaideveninefficient .pits;
-moasuresforrationalizing undertakings andshifting production
frombadtogocdpitsbymeansofridsshouldbesteppedup;
-thelevelofinvestment byundertakings tocreatenewproduction
capacity shouldbesupported bymeansofaids;.
-anactiveemployment policy,particularly asregardstherecruitment
ofnewemployees shouldbeencouraged byaids;
-aidetostocksshouldbeusedtokeepproduction unaffected by
theshort-term economicsituation ;
-thesaleofsteamcoaltopowerstations shouldbe.safeguarded
inordertodetainanimportant marketforCommunity coal.Power
stations mustbemadeindifferent intheirchoicebetween Commu­
nitycoalandotherformsofenergyasaresultofaidsorother
.measures ..

-27- X7II/35/2/75
6.TheGovernments oftheMemberStatesshouldavc.ilthemselves
cfthevariouspossibilities ofgranting ■aidunderthenewsystem
onlyifabsolutely essential andnoothersolution canbefound,
7.Theamountsoftheaidsmustbesuchthatconsumers ofCommunity
coaldonotreceiveanyindirectaid.
8.UnderthenewDecision onaidtheGovernments oftheMember
Statesareauthorized ,although notcompelled ,bytheCommission ,
tograntaid.

XV
ίΐΗΕΧ

XVIl/35/2/75
Trend ofaidtotheCommunity 'sccal industry from 19&5 "to1974
A.Onset ofthe ooal salos crisis and its effects onthe revenue and
employment situation cftheCommunity 'scoal industry
1.There wasgrowing demand onthecommon market incoal during the
five years from theestablishment cftheECSC (1952 )to1957 *
Production andimports from non-member countries increased con­
stantly (seeTables 1and2).
2.1958 sawareversal ofthetrend ,which lasted tntil 1973 ,with
alternating periods ofeasing andaggravation ,
Adecisive change intheprice relativities ofthevarious
sources ofenergy occurred in1958 ,with Community ooal onthe
losing end .Energy consumers began tosubstitute oilforCommu­
nity coal .
>
3.Thesymptoms ofthecoal crisis canbeseen quite clearly in
thefollowing figures fortheperiod 1957 -1959 (seetherele­
vant tables ):
-imports cfooal into theCommunity foil from 44 "to19.3 million
tonnes ,which involved heavy expenditure tooancQl import con­
tracts ;
-stocks ofcoal andcoke intheCommunity rose from 9 "to39*8
million tonnes ; ,
-coal production intheCommunity fell from 254*3 to240,6
million tonn.es ,
4.Thedecline indemand hadboth financial andsocial consequences
forthe coal industry .

-2- XVII/35/2/75
AlthoughthoCommunity producers couldnotprevontthedropinre­
venueduetothedeclineinsales,theynevertheless hadsomasuccess
inkeepingpricessteady*".
Theundertakings tookstepstoreducetheircosts "byextensive
rationalization inordernottolosetheirfinancial equilibrium .
Thesuccess ofrationalization canbeseenfromtheincrease in
outputperman-shift underground (seeTable5)»Before1957output
perman-shift wasalmoststatic,butitshotupin1958»1959and
subsequent years.
f
Thedecline xnproduction andrapidrationalization ledtoa
dropinmanpower (seeTable6).Theresulting socialproblems
weresoseriousthattheGovernments oftheMemberStateswere
obligedtointervene .TheHighAuthority hadtriedtoactonthe
basisofArticle 58oftheECSCTreaty*but thenecessary unanimous
assentoftheCouncil wasnotobtained .Allthatwasachieved was
thattheBelgianmarketwasisolated fromthecommonmarketin
coalforalimitedperiod.
Thefinancialimplications ofthe1958/1959coalsalescrisis
werenotseriousenoughtojeopardize theexistence oftheundertaking
2EvenfromI960to19&3theundertakings weretoalargeextent 'able
tcsolve manyoftheirproblems ontheirown.
Table4showsthattheundertakings wereunabletocovertheircostsevenbeforethecoalcrisis.Upto1956/57thiscanbe
attributed tothefactthatcoalpriceswerefixedbythepublic
authorities .
2Inthestatistical basisforthepointswhichfollowinthis A
section,seeTable1-6

-3- mi/35/2/75
J*searly as1964 "there wasafurther decline incoal sales anda
further deterioration intheprofit andloss position ,which threate­
nedtheexistence fotheundertakings .Negotiations were therefore
"begun "between theGovernments oftheMember States andtheHigh
1
Authority ,aimed atintroducing aCommunity system ofaidtoensure
that anyfurther Bharp dGcline inproduction could "bowarded offinsuch
a wayastokeep theresulting regional andsocial problems within
reasonable limits .On17February 1965theHigh Authority therefore
adopted Decision ITo3/65onCommunity rules forinterventions by
Member States forthebenefit oftheooal industry ,Thr.t Decision was
toremain inforce fortwoyears ;in1967*itwasextended forthree
tyears until 1970 ,andreplaced in1971 byDecision Uq3/71»which is
valid until 31December 1975 *
6.Thefact that asystem ofaidtotheCommunity 'scoal industry has
been inforce foreleven years canbeunderstood only iftheconcrete
economic developments inthecoal industry from 19^5 to1973 are
considered .
'.C , ' '■ "
Asforecast in1964 jatrend setinin1965/66,andwasoven more
marked in1967 ,which showed alltheearly signs ofasecond coal
crisis .Thecoal industry 'sprofit andloss position deteriorated
rapidly .Asindicated inTable 4»thepercentage ofcosts which the
undertakings could cover fell ,particularly inBelgium ,Prance and
theNetherlands ,to60and8C0respectively .
Inadequate reve uecould have prevented theundertakings from
continuing operations in1965/66;theGovernments oftheMember
States concerned therefore hadtogive them financial assistance
intha form ofsubsidies ,
7,TheCommunity 'scoal industry recovered somewhat from 1968 ,mainly
During that year especial system ofaidtocoking coal came into .
force inaddition tothegeneral system ofaids .

-4- XVI1/35/2/75
onaccountofthestocl "boom#However ^oventhisimprovement in
salesdidnotsolvetheundertakings *financial probloms.Onthe
contrary :theproblems becameevenmoreacute.Production costs
rosesharply,butrevenuecouldnotkeeppacebecauseofcompetition
fromimported sourcesofenergy.By1973thepercentage ofcosts
whichcouldbecoveredfellto48/5inBelgium,60/t-inFrancoand
63/jintheNetherlands (seeTable4).
Theeventsoutlined aboveaffectedthecoalindustry oftheCommu­
nityasoriginally constituted (theSix).HieUnitedKingdomjoined
theCommonmarketatthebeginning of1973.Itcanbeseenfrom
Tables1-6onthedevelopments intheUnitedKingdom'scoalin­
dustry,thatalthoughthelatterhasshownthesametendency since
1958asthecoalindustry ontheContinent ,therehavebeencertain
differences :
-Production declinedatarelatively constant paceintheUnited
Kingdomfrom1958to1974»whereasintheCommunity thepaceat
whichitdeclinedfluctuated .Anyfluctuations inproduction in
theUnitedKingdomresulted fromstrikes *
-^iinpl&yment fellatarelatively constant pace,inlinewiththe
trendofproduction ;
...Forvariousreasonsproduction costswerelowerintheUnited
KingdomthanintheCommunity .Britishcoalcouldtherefore be
soldrelatively cheaply.Theextenttowhichcostsoouldbecove­
redbyrevenuewasalwaysgreaterthan"intheotherCommunity
countries ;
-TheBritish Government hasoftenhadtointervene toprovide
assistance inthepast(e.g.in1965/66/67)inordertobring
theUCB'sfinancesbackintobalance.In1973/74thesubsidies
required wererelatively largeonaccountofthemineworkers 1
strike.

-5- XVII/35/2/75
y,Thedevelopments inthoCommunity'scoalindustrydescribed above
indicateaconstantdeclineinproduction a,saresultofsevere
competition fromimportedsourcesofenergy.Itmustbepointedout
thattheCommunity'scoalindustry wasbadlyintheredwhentheoil
crisisbrokeintheautumnof1973andneededlargeamountsofaid
fromthepublicauthorities inordertosurvive.
10.Theoutbreakoftheoilcrisisattheendof1973ledtogreat
■changesintheconditions ontheworldenergymarketwhichproved
advantageous totheCommunity'scoalindustry.Thesharplyrising
pricesofimportedcoalandofoilhaveplacedCommunity coalina
completely newcompetitive position.Thisisnotyetreflected in
theamountofaidpaid,which,althcu^lowerin1974thanin1973»
stillaveraged3*85u.a./tonne(seeTablela)intheenlarged Com­
munity(theNine).Thereasonforthiswasthatin1974theunder­
takingswereslowtofollowthesharpincreases inthepricesof
fueloilandimported cokingcoalwithincreases inthepricesof
Community ccal.Acomparison betweenthecostofproducing 1Community
-coalatthebeginning of1975 "thepricesoffuelcilreveals
thatsome85^90^ofCommunity production waseconomically viable.
Theprovisional measures ofaidproposedfor1975indicatethat
theamountofaidtobograntedwillbominimalandthatitis
designed mainlytosupportinherited burdenswhichaireunrelated
tocurrentproduction .
B.Subrtmce andobjectives ofthedecisions onsubsidies
•i-c 'u ' *v' '"
11.WhentheCommunity systemofsubsidies wasintroduced in1965,legal
problems connected withtheECSCTreatyhadtobesolved.Pursuant
toArticle4(c)oftheECSCTreaty,theGovernments oftheMember
Statesareprohibited fromdistorting theconditions ofcompetition
withinthecommonmarket.Thispreludes subsidies orotheraid.
AsindicatedinthepreambletoDecision Mo3/65.thisprohibition

-6- XVII/35/2/75
doesnot,however,applytoaCommunity systemofaidsdesigned
.tohelp".'achievetheobjectives oftheTreaty,However,theL'CSC
Treatydoesnotstipulate howsuchasystemshouldbeimplemented .
Intheabsenceofanyspecificprovision ,itwas'•
neoessary tohaverecourstoArticle95»firstparagraph ,ofthe
Treaty.
12.TheDecisiononsubsidies,No3/65*,adoptedbytheHighAuthority,
afterobtaining thoapprovaloftheCouncil,onthebasisofArticle
95,firstparagraph ,contained thefollowing provisions ,broadly
speaking :. ..
■-Aidsmustrecoivethepriorapproval oftheHighAuthority ;
-Aidsmaybeauthorized bytheHighAuthority onlyiftheyarc
compatible withtheproperfunctioning ofthecommonmarket;
-Aidsmaybegrantedtoassistrationalization inordertom'&e
iteasierforundertakings toreducetheircosts;
-Aidsmaybegrantedtoenablerationalization measures (pit
closures),tobe-implemented atasuitablepace.
13»Decision No3/65wasdesignedtobeapplicable foronlyashort
time;itwastoremaininforceforthreeyears,i.e.until31De­
cember1967.
However,by1967theeconomicpositionofthecoalindustryas
described abovedidnotshowanysignsofimprovement .Decision
No3/65wastherefore extendedunchangeduntil31December1970
byDecisionNo27/67of25October19672.
OJNo31»P»480,'25Februaryi965
2OJNo261,p.1'28October1967;

-7- XVII/35/2/75
14*Inviewofthecontinuing deterioration ofthecoalindustry's
revenueposition,afurtherdecision hadtobatakenin1970to
retainasystemcfaid. •,■
Consequently ,on22December 1970theCommission adoptedDecision
No3/71onCommunityrulesforinterventions byMemberStatesfor
thebenefitofthecoalindustry.TheDecision wastoremainin
forcefrom1January .1970until31December1975^*
...InordertomakeiteasierfortheGovernments oftheMemberStates
torespecttheobligation togiveparticulars ,andinordertostan­
dardizetheforminwhichsuchparticulars arefurnished ,theCom­
missionissuedDecision Uo65/72/ECSCof10December1971implemen­
tingDecision Ho3/7–.•
15.Themainobjective ofDecision No3/?lwas"toretaintheprinciple
ofcuttingbackproduction containedinDecision No3/65»while
atthesametimemakingimportant additions toit.Consequently :
-thescopecfthevariousformsofaiddescribedinDecision No3/65
wasextended .
Freshaidscouldbegrantedfor:■
-pitheadstocksofcoalandcoke;
-investments
-recruitment ,training,adaptation andstability (i.e.retention)
ofstaff| ' -
-subsidies weretoberelatedtoforeseeable quantitative coal-
supplyproblems ;
-problemsrelatingtocompetition betweentheCommunity'scoal
producers wererendered moretransparent bytheadoptionof
guifelines cnpricing.
16.ThecriteriasetoutaboveshowthatevenDecision No3/71is
basedontheprinciple thataidsaredesignedtonr.itigc.te tempo­
raryproblems.Aidsshouldfacilitate afurthercut-backof
OJNoL3,P.7etseq.,5January1971
2OJNoL13,P.1otseq.t17Januai-y1972

-8- XVII/35/2/75
production ,takingintoaccountregional andsocialfactors.
Theaimwastophaseoutproduction ,exceptforeconomically
soundpits,andthendiscontinue thesubsidies .
17•Theprinciples underlying thesystemofaidstocokingcoalare
quitedifferent .Thisspecialsystemofaid,whichwasintrodu­
cedin1967?J1<1tookitsplacealongside theDecisions ongeneral
formsofaid(Nos3/65and3/71)embodiedtheconcept,interalia,c
aidsforatransitional periodtoenablethesteelindustrytoreach
adecision onitscohlandcokesupplies.Thestoelindustry
shouldeitherafteracertainperiodoftimehaselapsed,buy
Community coalateconomicprices,toensureobtaining supplies
fromwithinthoCommunity ,orshouldturntoothersourcesof
supplyontheworldmarket.
Decisions Eos3/67and10/loncokingcoalreferredtobelowwere
applicable foronlyashorttime.
'; I
Decision Ho73/287willremaininforceuntil31December 1978
andisdesignedtofacilitate theproduction andmarketing of
.cokingcoalintheCommunity .TheDecision hassofarbeen
implemented withhodifficulties worthmentioning .
18.Thefollowing Decisions onaidforcokingcoalhavebeenadopted
bytheHighAuthority orCommission :, .,
-Decision Ho3/67of21February 1967concerning ooalandcoke
fortheironandsteelindustryintheCommunity (OJHo36,
p.562,28February 1967)*
-Decision He70/l/ECSCof19February 1973relatingtocoking
coalandcolce(OJNoL2,p.10,6January1970)•
-Decision No73/287/ECSCof25July1973concerning coaland
cokefortheironandsteelindustryintheCommunity (OJ
NoL259.P.36,15September 1973). -

-9- XVIl/35/2/75
Thetrendcfaidfron1965to1574
19*AidstotheCommunity'scoalindustry haveincreasedrelati­
velysharplyduringthepasttenyears.Acomparison between
thetrendsinthevariousooalfields intheCommunity andalso
betweenthevarioustypesofsubsidy,revealedcertaindifferen­
ces.Intheverybroad,analysis givenbelow,adistinction is
madebetweenthefollowing typesofsubsidy;
,-Government subsidies tothesocialsecurity schemes :
-directaids;
-indirect aids;
-aidstocokingcoal;
-gêneraiaids.
Thisoreakdown isalsousedforthefiguresinTables7to12.
(Cx)The_trendofGovernmentsubsidiestothesocialsecurity
schemes ..
20.Government subsidies tothesocialsecurity schmesarepaid
totheinsurance institutions tocovertheirdeficits .These
areburdensinherited fromthepast,whichcannotbeborneby
employers oremployees inthecoalindustry endarenolonger
relatedtocurrentproduction . .
21.Becauseoftheincreasing pensions paidtosuperannuated
mineworlcers ,'andonaccountofthedeclineinmanpower and
therisingnumberofpensioners ,Government subsidies have
increased sharplyduringthepasttenyears.InGermany
therewere1.3pensioners toeveryemployeeinthecoal
industryin1965;by1973thefigurehadrisento2.5»
thecorresponding figuresforPranceare1.3and2.7«
TheNetherlands docsnothavethecontribution basedprocedure
generalinGermany,PranceandBelgium,butafundedscheme,so
thatGovernment subsidies roseconsiderably lessfrom19^5 "to
1974.SimilarfigurescannotbeproducedfortheUnitedKing­
domasthereisnospecialsocialsecurity schemeforBritish

-10- XVII/35/2/75
minewcrkers ,whoare'instead,coveredby-thenational scheme.
(Cg)trendofdirectaids ■
22.Directaidsarepaidoutbythepublicauthorities directlytothe
undertakings :'
-tospeedup"positive"rationalization (investment aids)}
-tofacilitate "negative"rationalization (costcfpitclosures);
.-toreimburse partofthecostofmaintaining pitheadstocks;
-tocoveroperating lossespartially orfully.
1Totaldirectaids,andamountspertonne,increased fivetotenfold
between1965and1973(seeTables7-12).
Whenconsidering thesharpincrease ,itmustberemenbered thatthe
levelofdirectaidswasverylowin19&5.®1Gdifferences inthe
–amountsofaidper.tonneinthevariouscountries inthofirstyear
1965,alsoaffectthotrend.
Thesharpincreaseindirectaidupto1973refleots theconstantly
deteriorating revenueposition mentioned above.
/
23.InBelgium,FranceandtheNetherlands directaidsconsistpredomi­
nantlycrexclusively ofaidstocoveroperating losses.InGermany
andtheUnitedKingdom,ontheotherhand,relatively largeamounts
ofaidaregrantedforrationalization measures .Thelargeamountof
aidtocovertheKCB'soperating lossesin1974cannotbeconsidered
normal,asheavylossesresulted fromastrikein-thatyear.

-11- XVII/35/2/75
The composition andtrend ofdirect aids arc shown inthe following'
table . '
in :o
"Positive "
rational izatim
L_,"Eegative "
!rationalizaticriAid to
pithead
stocksCovermg ofj
opérât ing j
losses Ji
Total S
»
»
1965 i1974 '11965 i^1974 J[1965 ]L1974J 1965 l_Î974J 119651i1974 ■
IGermany: i
i|31,8 62,9 i!55,o 37,1 Ii13,2 !100.0 !!100,0 j
i
IBelgium 3,3 1,0 100,0 95,7 '!100,0 100,0 i
I i
IFranco 17,2 . 100,0 i1 ],82,91100 ,01Iîoo,c;
i t
IÎTetherlands ii .- I
il
100,0 !, i
i ' 1!-îoo.o !
i 7 ;
United Kingdcm 5,6! I
I" 1î18.6! i
«■»
iI2,4 |
i.i
!73,4ii ■ !j-100,0 ;
(C)Thetrend of "indiroct aids
24•Indirect aids tothecoal industry include allmeasures involving
thepayment ofsubsidies nottotheundertakings inthecoal indus­
trybuttothird parties .Although inDecision No3/71such measures
areincluded among theether forms ofaid ,they areexamined and
authorized bytheCommission inaccordance with therelevant provi­
sions ofthe EEC OTSCSC Treaties ,
In1974 indirect aidamounting to150,3 .mu*a .wasgranted inthe
-(enlarged )Community (seeTable 7&)• .
25.Germany isvirtually theonly country which grants indirect aids to
thecoal industry .Only one .measure isinvolved ,i.e. aids granted
within theframework oftheelectricity -frcm-coal laws anddesigned
touphold theconsumption ofCommunity coal inGerman power stations .
(C)Thetrond ofaids .tecoking coal
26.Asindicated above ,aids tocoking coal come under aspecial system ,
introduced in1967 ?ndnotin1965 .

12- XVII/35/2/75
ThecokingcoalRegulation providesthatwhen ,aids'-rantedunder
Decision ITo3/71areexaminedforcompatibility x\riththeproper
functioning ofthecommonmarket,aidstocokingcoalmustalso
beincluded sothatanyeffectsontherelativecompetitive posi­
tionsofcoalproducers canbeinvestigated onthebasisoftotal
figures.Thetrendofaidstocokingcoalisindicated inTables
7and7a."'. •
(Cj.\Thetrendofgénéralaids >: '
27.Acombination ofdirectandindirectaidsandaidstocokingcoal
produces thefollowing trend
ITotali
i pertonne
million ;u.a.IncreaseJ u.a?lIncrease
1963 1974 bya
factor
of1965 1974 oya
factor
of
IGermany 53,9395,8 7*.<»-0.38 3,99io,5
|Belgium 22,9128,5 5,6 1,1514,77 12,8
France 50,2257,9 5,1 0,9810,99 11,2
IKetherlands 18,2 18,24 |
II..
TheSix 127,0800,4 6,3 0,57 6,0610,6
. , ,
UnitedKingdomli ;
I..I 1
[150,1 |l !•• I
If !
i ii1,31 ••
- ]
TheÎTinei
î
i••'950,5 |•• j
■i ii••3,85 ]
28.Itmustbepointedoutherethatthefiguresmtheabovecomparison
between .countries donotindicate whataidsthecoalindustry inthe
various MemberStatesactuallyreceived.Comprehensive' socialmeasures
forthebenefitofmineworlcere ,adoptedbytheCommission andthe
Governments oftheMemberStatesconcerned ,especially onthebasis
ofArticle56oftheEC3CTreaty,arenotincludedintheabovetable,
whichonlycontainssubsidies inthetruesen^oftheword.Protec­
tivemeasures,e.g.taxesonfueloil,importquotasforcoalor

-13- XVI1/35/2/75
specific importdutiescnccal,whichhavebeneficial effectsont
thecoalindustry,likewise donotemergefromthetable.However,
itmustberemembered thatanyMemberStatewhichadoptsprotective
measures hastopayoutlowersubsidies thanonewhichgrantsaid
tothecoalindustry purelyintheformofsubsidies .
Thefactthatin1974totalaidwas3.85u.a./tonne(theWine,see
Table7a)canbeattributed tothereasonsgiveninparagraph 10.
Itisonlyin1975»whenthepricesofCommunity coalwerealigned
toalargeextentontheincreased pricesoffueloilandimported
cokingccal,thatareduction inthesubsidies requiredtythers.?-~-
CpTrantmily' scoalirrdxictryjwthe corollary ofincreased earningpower,
hasbecomeevident.Provisional figuresfor1975indicatethataid
tocoveroperating lossesoncurrentproduction isnowrequired
onlyinBelgiumandFrance^wheretheSouthern (Belgium)andWord/
Pas-de-CalaisandCentre-Midicoalfields (Prance)areeconomically
weakowingtotheirveryhighproduction costs.Coalproduction
intheNetherlands ceasedattheendof1974*InGermanyandthe
UnitedKingdomtheonlyaidsstill normally grantedrelate'
topitclosures andinvestments .Theaidstocoverpitclosures
arebasically inherited burdensnolongerrelatedtocurrent
production .Inbothcountries theamountofinvestment aidsgranted
in1975ishigherthanin1974 "toenableundertakings torationali-
seandestablish newcapacity .
Overallitcanbeassumedthataidwillfallfrom3*85u.a./tonne
in1974"toapproximately 2u.a./tonnein1975{theHine).Alittle
over1.0u.a./tonnecfthataidwillprobablyrelatetoinherited
burdens(costcfpitclosures).Currentproduction willtherefore
requirejustunder1u.a./tonneofsubsidies .Thisisaverysmall
amountinviewcfthemajorproblems ofsecurityofenergysupplies
andincreasing theCommunity'sself-suffiency inenergy,whichis
boundupwiththemaintenance ofasatisfactory levelcfcoal
production .

Table 1
4"» .'*'''f"JN'.'
Cos.lproduction intheCommunity -
..«r»-*2£..'iS'J-I^lsiiôTi "t&unes
."A.,•Jï- ' -.
jYear|Germany Belrium IFrance Uetherlands ŒheSix-•:United
Fins-dornj^e
■i7!ine
1954 150,3r29,2•54,4 247,4 '227,7i
I
1955 153,9 30,0 ;55,3 •12,2!,V252,5 >••••:*225,1
1956 157,5 29,6 i55,1 12,1' ;r255»4• 225,6
1957 155,6 29,1 56,8 11,7 254,3 227,2
1958 .154,5 ■27,1 57,7 12,3 •252,3 219,3i;
1959 147,1 I22,8 57,6 12,4 240,6 2C9.4
i960 |148,0 22,5 56,0 12,8 !240,0 196,7
1961 148,3 21,5 52,4 12,9 235,8 -193,5
1962 147,1 21,2 52,4 11,8 233,2- 200,6
1963 148,2 21,4 47,8Lu.8;.229,8 .198,9
1964 148,4 21,3 53,0 11,8 235,0 196,7
19651141,0. :19,8 5i,3 n,7 224,2 190,5 :
1966 131,6 17,5 50,3 10,3 210,2 177,4
1967 116,8 16,4!-■47,6 ;8,3 189,5 174,9
1968 117,2 14,8 41,9 6,9 181,2 166,7
1969 117,0 13,2 40,6 5*8 176,9 153,0 j
1
1970|H7,0 11,4 37,4 4,5 170,5 144,6
1971 117,1 11.0 33,0 3,8 165,2 • 147,1
1972 108,7 10,5 29,8 2,9 152,0
1119,5
1973 103,7- .8,8 25,7 1,8 140,0 130,2270,2
1974 101,5 8,1 22,9 0,8 133,3 109,2242,5
•.
Source:Statistical OfficeoftheEuropean Communities

Table'2
Coalimportsfromnon-mernber countnes
Million tonnes
YearGermany Belgium' France -•Italy -Netherl .TheSixUnited
Kingdom
1954 3.9-..i
i•2,2 4,8 I'2,1 13,9
1955 9,3 , '^ 2,9 6,8 !2,6 23,0
1956|13,7 2,8' 8,8 7,6 5,1 38,0
1957 i.17,2 2,8 9,7 8,8.5,4.i44,C
1958 !12,9 2,4 1.4,9 17,7 3,9;31,8
1959 '6,0 1,4..2,2'6,3 3,3.19,3'JI•
i960 5,6 0,9'1.9 '6,2 3,3 17,9,.
1961!,5,7 .0,8 2,4'6,8 3,2 13,9
1962 l7,1
L1.3,3,0 8,1 4,2 23,7...I'_
1963 7,3 3,8 7,5 I^9,9 5,5 34,0
1964 7,5 :3,2 5,8 9,4 5,2 31,1 ;
19657,6:!2,7 .5,0'.Ί10,2 ■' 29,0 I-
1966 iJ,0 ! 4,6 10,0 ;2,5'.' !26,2 .
1967 7.1:!1.7 i.'4,9 9,1 1,5 •i24,3
1968 5,9.:1,6 4,2'M 2,0 22,0
1969 6,5 ■1,8 4,9 8,3 2,5 24,0
1970 8,6 3,0 7,0 9,6 .3,0 31,2 0,0 i
1971 7,1 1,7 7,2 :8,6. .1,8 26,4..4,0 }
i
1972 6,3 ,2,8 •5,3 .8.9 -2,6 25,9 •4,4
1973H 4,5 ;3,4 5,4 8,6 2,9 ;24,8 .1,4
1974 6,0 4,8 9.,410,0 3,4.
• •133,6 5,0 |
j
Hewseriesfrom1973asaresultoftheassession oftheUnitedKingdom
Estimated ...
Source:Statistical OfficeoftheEuropean Communities ".

t,i Ta"ble3
Coalstocksheldatpits^andcokestocksatcokingplaints
(Totalstocks,including low-grade coal) milliontonnes
Year'Germany Belgium FranceINether-
tlandsTheSix UnitedKingdora
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1565
1966
1967
1968
1969
1970
"1971
1972
.1973
197423.5
,1.0
1.0
1.6
14,9
18,9
12.6
13.3
11,2
5,5
9.7
17.4
22.5
20,8
.12,8
5.1
3,7
.12,4
-18,4
16.7
4,02,9
0,5
0,3
1.6
7,2
7.8
6.9
4.7
1.6
0,6
1.7
2,5
3,2
2.7
1.8
0,7
0,4
0,6
0,7
0,4"
0,4BtZ.
6.2
4,7
5.1
8,1
11.7
13.8
12,3
9.4
6.5
9,3'
7,8:
11,0
12,3
11,0 .
8.3
6,9
5.4
5,9
4,0
3.50,4
0,4
0,4
:0,5
1.1
1.2
0,9
0,8
0,6
0,5*
1,2
1,5
2.1
1.2
0,6
0,3
0,2
0,7
0,7
0,4
P,115,0
8,1
6,4
9,0
31,5
39.8
34,5
■31,4
22.9
:13,3
'19,6.
29.8
39,4'
••37,7
27.5;
15,4'
11.6;
19.9'
26,3
22,2
8,034,9
27,4
30.8
23,1
22.7
23.9
20.8
25.9
30,0
19.4
7,4
11.5
13,0
13,1..
8,0
Including Italy
Estimated
Source :Statistical OfficeoftheEuropean Communities

Table4
CostaverageintheCommunity coalindustry
(Revenuepartonneofhardcoalas$oftotalproduction cost)
(excludingdirectaids)
Year Germany -Belgium iFrance •ïïetherlands -UnitedKingdom
1954 |89,8'89,6 |<86,4. 97,3 100,1
1955 90,9 I90,7 85,1 ■97,5 98,3
1956 95,0 87,5 83,4 93,6 100,8
1957 .91,9 88,9 83,3 90,6 • .98,1
i.•-
1958 •92,4 81,0 81,8-...93,9 98,1
1959 93,6 73,4 87,2 93,1 ; 97,7
i960 94,8 82,4 83,9 . 93,4 97,5
1961 '90,7 83,1 79,7 93,2 • 98,2
1962 91,6,84,3 78,3 85,4
i100,4
1963 95,1 86,5 72,6 •87,0 100,2
1964 93,6 81,9 !77,2. 86,1i>..*99,4
1965 91,4 ' 77,6 71,5 .83,8 ! j96,3-M
1966 j'90,8 71,1 69,3 .80,9; -'99,4'
1967 93,2 62,9 .64,7 81,7 i
1968 -95,5 61,2 58,2 ,80,7: ■97,5 ,
1969 .93,7 60,1 59,1 76,6 94,4
1970 91,4 ■63,0 70,5 79,4 :97,0
1971 95,5 65,8 :'74,9 • 80,3 1...80,3
1972 i.92,6 56,1 i65,2 70,8. I87,8
1973 •89,0 48,0;60,1
l <63,2 84,2

Table5
Output "perman-ehift nnderf^otaid
(kg)
YearI
Gennarv .Eelgium FranceEetherlandsTheSix 'UnitedKingdom :
s
1954 IH1.563 I1.198-1.504 *1.533 1.490 "1.761
1955 1.621 I1.252 1.583 1.519 1.551 ••
1956|
i1.652 1.266 1.645 1.533 1.584 •é
1957 1.658 1.253 1.682 1.544 1.594 ••
1958 1.708 1.261 1.680 1.572 1.634 1.804
1959 !1.904 1.388 1.717 1.668 1.788 ••
i960 !2.126 1.577 1.798 •1.833 -1.958 1.994
1961 !2.279 1.714 1.878 2.103 2.100 2.084
1962 I2.459 1.818 1.922 2.117 2.229 ^ 2.245
11963j2.618 1.820 1.958 2.137 2.331 .2.406
1964 !2.717-1.763 2.046 2.208 2.395 : 2.505
"1965 !2.815 1.874 2.039 2.253 2.416 2.621
[^9663.050 ;1.996 2.104 2.305 ,2.611 2.741
!JL967 3.393 2.102 2.241 2.428 :2.827 2.993
:.19683.685;2.232 2.347 2.574 3.065 3.278
19693.837-, 2.408 2.522 2.927 3.265 3*384
11970 3.941 s2.630 >2.643 3.260' 3.442 3.469
-1971 I-4.038 .2.623 2.626' 3.348 3.514 3.453
.19724.249 i2.638 2.709-3.276'*•3.663 3.460
.1973
1 >4.321 2.555 2.767 3.809 .3.758 3.583 .
x1974]41198 :•2*590 2,799 4.200 !3.74? 3.260
1
J,.Estimaied • *;
1.
t Source:Statistical OfficeoftheEuropean Communities
1. -'

Table6
Employment (wageandsalaryearners)intheCommunity coalindustry
(situationattheendofeachyear)
*•.*••• (3ooo)
Year|Germari.y |Belgium .France ïïetherlands TheSix-1
UnitedK-ingdom
I
1954I
i588,4155,8:]236,2 59,7 I1·°47,2Ίi699,9 ;
1955 •585,3 157,6 •241,7 60,8 1.053,1 694,5
1956598,4 149,8 238,2 61,3 1.054,6 696,7
1957607,4 159,9 239,6 62,9 1.076,0 7C3.Y
1958585,6 146,9 !235,7 63,5 1.035,8 685,8
1959 i531,8 127,8 228,6 .61,2 953,5 645,1
i960490,2 .108,9 213,3 58,6 874,9 ■583,5
1961465,0 95,0 204,5 ,56,9 825,1 i562,9
1962433,6 91,0 199,7 |57,3' .:785,0 544,4
1963412,0 90,6 .193,6 •55,9 755,3 .516,7
1964398,5 90,6 .188,1 55,7 736,1 484,5
1965377,0 80,7 .181,4 53,9 695,8 466,8
1966333,9 67,9 172,5 47,0 623,1 414,4 ■
1967287,3 60,6 159,6 |38,7' 543,0 382,4
1968264,0 53,9 141,7 32,7 ■ 494,0 324,5
1969 .254,1 43,5128,0 j27,7' 454,9 299,6
1970 I250,1 39,8 117,0 24,9 433,2 283,1
1971 •244,4 '37,2 109,3 22,3' .414,6 ,,278,8
1972220,6 34,9 99,5 19,7 375,7 i.266,0
1973^]19744}.203,0 30,0 90.0 16,0 339,0 254,0
200,0 28,0 85.O -12,0 •'325,0 ••:.v
Including Italy _'
.
o ... :Onlywage-earnersoncolliery "books,notincluding salaryearners
3Changetocoalmarketingyear 1:: 1' -
Estimâted
3ource:Statistical OfficeoftheEuropean Communities

è
Table7
Thetrendof,aidtothecoe.lindustry
(EUR-6) Millionu.a.
I–f-T"U_~~X_-
I
1Government subsi-
diestosocialct.
"Negative ""Postivg' "ïTegative "rTostive1uL<k/
jfAiàstoritCovenng ofITr+ftlIIndirect fAidstoJTotal(direct,!
Lseauritv snhsims ration?LizaTlcn i[i'.eadctcckn Ioperatinç» UAAIaids coKing
1nnq1maireot , I
IAAlft ___*1A
1965 898,6 12,9 ! mm 68,8 81,7 45,3n– 127,0 I
1966I970,4 17,63,6 142,5 163,7 .73,1 236.8
1967 1.094,8 37,7 5,3 «» 272,0 315,0 75,3 .77,9 468.2
1968 1.156,4 '29,326,1- tm 370,0 425,4 84,6 84,7 •594.7 •
1969 1.219,8 11,658,3362,6 j432,5 98,4 •i79,4 610.3
1970 i1.318,6 9,968,0 261,7 339,6 84,3 '87,4 5U.3
1971 ..1.400,7 46,169,5 298,7 414*3 91,9 45,5 551.7
1972 1.558,8 60,966,0 429,6 556,5 lob,o-...\L71,4 727.9
1973 1.897,7 75,888,5 351,2••515,5 "75,4 249,1"-'-'AdA.o'i
J1974 2.126,6 183,2 -85,1.!I.-'I337,0 T605,3 •15ô,3 44.8 800,4
1 ■■■■■■■■ j j,•I
• " :'"'* " ' .;u.a./tonne
1965 ,0,06mm:0,31..0,37..0,20 - -./.0,57...I
•1966 0,080,02 0,68 0,78 0,35 - • 1,13
.1967 0,20 ;0,03 1,44 1,67 0,40 0,41 12,48
1968 0,160,14 2,05 '2,35 0,47 0,47 3,29
1969 0,070,33 2,05 2,45 0,56 0,45 3,46
1970 0,060,40 1,54 2,00 0,50 0,51 3,01
1971 .10,280,42 1,56 2,26 0,56 0,28 3,10
1972 0,400,44 2,83 3,67 0,66 0,47 4,80
1973 I
I0,540,63 2,52 3,69 0,57 1,78 6,04
IimI1,.V»IIn.fdI
!s.»... 1hVLJ 0,34 6,06

'Table7a
Aidstothecoal
(iphg ' Millionu.a.
Goverment
subsidies to
socialseourity
cnnomfi.c?DirectaidsIndirect
aidsjAidsto
icoking
IcoalTotal
(direct,indi­
rectcokingC£âl_)1"îTee;ative"i Positive "Aidsto
pitheadstocksCovering of
operating los-sesiTotal
i
irationalization
1973
19741.897,7
2.126,6105,6
207,1j95,9
I92,39,4
3,0793,4 !
431,3 j
II
1004,3 |
733,7
II
■.79,4
150,3279,1
66,51.362,8
950,5
u.a./tonne
1973
19740,39
0,840,36
0,370,04
:0,022,95
1,743',74 0,30 1,04 5,08|
2,97 0,61 0,27 3,85 j
t
»

Table8
Aidstothecoalmaustr,v-
Germany Millionu.a.
iGovernmentsubsidies tosocialsecu-
irityschemesIndirect
aids iAidsto
ookingcoalTotal(direct,indirect
cokingcoal)r-
L_r
ilNegative' mPo5Ìtive"jratiòna1izailcn"1[AidsÎ5 ;pithead !stocks iCoveÊinglossesTotal
1965 529,4 12.9r- 7,6 20,5 33,4
1966568.1 17,6 17,9 35,5 62,6 98,1
1967 642,5 37,7 65,7 103,4 65,4 58,8 227,6
11968683,6 29,3 21,5 63,9 "114,7 70,1 66.2 251,0
1969 691,2 11.2 53,6 9,6 74,4 85,0 61,3 220,7
1970805,5 9,3 64,9 74,2 76,3 .70,4 220,9
1971816,4 26,8 66,1 135,2 83,2 34,0 252,4.1 ;
1972918,3 33,4 61,6 179,9|244,9 90,7 •""61,3 396,9
19731.132,6 39,1 83,9 17,7...149»7-65,2 188,8 :394,7
USHJ1.298.8 141.8 ■82.0 II- 34,1 257.9 ,^ît9II i395»8
, * _ _ .. ,.u.a.^tonne .
1965 0,09. •I 0,05 0,14 0,24 0,38
1966 0,13 0,14 0,27 0,48 0,75
1967 M0,32 - .0,57 0,89 0,56 0,50 1,95
I1968 0,25 0,18 0,55 0,98 0,60 0,57
1969 0,10 0,46 0,08 0,64 0,73 0,52 1,89
1970 0,08 0,56 0,64 0,65 0,60 1,89
1971 0,23 0,57 0,36 1,16 0,71 0,29 2,16
1972 0,31 0,57 1,38 2,26 0,84 0,56 3,66
1973 -0,38' 0,81J 0,17 •1,36 .0,63 1,83 3,82 .
L12K I1,43 0.83 IIr I0,34 1I•'2,60]'..Ai32J

Table-9 --
Aidstothecoalindustry
France Millionu.a.-'
! I|Government Ducaa±_aJ Ida ;_ !TnrH *rpf>+.IAidsto.-oo-
king :coalTotal(direct,
indirect ,cokingcoal • 'subsidies tosocialsecu-vitvRnhpmpg"Négative ("Positive ^Aj.dstopitheadstocksCoverins -ofTotal !Iaids
Irationalization ] I■i
i
!^v
24512 43,5 43,5 6,7 ; 50,2Ί
1966 270,G 06,8 66,8 5,7
-. i72,5
1967 309,9i_
ι121,3 121.3 4,9; 9,1. 135,3
1968 326,31
I 214,6 .214,6 10,0 9,0 233,6
1969 372,8 !259,0'259,0 "9,1 9,4 277,5
1970 338,0 175,6 175,6 4,4 • 9,0 189,0
1971 380,8 118,7 176,1 194,8 4,1 -5,0 203,9'
1972 423,1 -26,2 - .160,5...186,7 --5,4 3,2 195,3 .
1973 <97,4 |34,6 ,I
- 1I219,0 253,6 9,1 20,0_ 282,7
1974'1551.7 ii-40,4 1 •193,9 ■!234,3 !!■7,0 16,6 - !257,9
r' ■*" ■' ■■'u.a./tonne
19651
111 "i
i'- ;°,85 |0,85 0.13 0,98
.1 1966 1,33 .1,33 .0,11 1,44-
i1967 1 2,55 2,55 0,10 0,19 2,84
1968 5,12 5,12 0,24 0,21 5,57
1969 - 6,38 6,38 0.22 0,23 v6,83-
1970 -I4*70 4,70. .0,12 0.24 ■ 5,06
1971 .0,57 •.5,33 .5,90 0,12 0,15' 6,17
1972
19730.88 ... •5,39 ■6,27 -0,18 0,11" 6,56
I
1,35 8,52 •9,87 .0,35 0,78 ..■11,00
1974'■i^72 1=- 8.26 9.98 0,30 ' 0.71 io.qq-i

Aidstothecog,lindustry
Belgium
Government
subsidies tosocialinsu­ranceschemes
110.2
117.4
128.3
131,1
142,6
162.5
192.1
206,9
256.2
276,1Directaids
^Ijegative"'TositiyeT(Aidstopix"jCoverationalization |neadstocks! ■ITotal–,l^.i«p.,VVw-
0,4
0,6
0,7
0,6
1,0
1,03,6
5.3
4.6
4.7
3.4
3,4
4,4
4,6
3,117.7
50,9
66,9
72,9
71,5
61,9
64,5
106,1
105,3
90.817,7
54,5
72,2
77.5
..76,6
65,9
68.6
-111,-1
110,9
I1965n~n i-~OJ39 ~M9
19661
I0,21
I2.91 3,12
1967 0,32 4,08 4,40
19680,31 4,93 5,24
1969 0,03 0,35 5,42 5,80
1970 o»05J0.30 5,43 5,78
1971 0.06 0,31 5,86 6,23
1972 0,05 0,12 . 10,11 10,58
1973 0.11I0,52 11,97 12,60
iim 0,11 !0,36 -10*91Table lO
Millionu.a.
Indirect
aids
5.2
4.8
5,0.
4.5
4.3
3.6
4,6
3.9
5,1
5lLAidsto
cokingcoal
8,9
8,9
8,6
8,0
6,5
6,9
40,3
28,2"Total(direct,
indirect ,cokingcoal
22,9
59,3
86,1
90,9
89,5
77,5
79,7
121,9
156,3
12^5
u.abonne
0,26
0,27
0,31
0,30
0,33
0,32
0,42
-0,37
0,58
0,620,54
0,60
0,65
0,70
0,59
0,66
4,58
3,241,15
.3,39
5,25
6,14
6,78
6,80
7,24
11,61
17,76
MtZL

AidstothecoalindustryTable11
r–.■' ■-–T–:– -*– :– – -A'IO.J.J.O.WiiU.#Ctf
Ί 1 I ,·- «
IuuV«xIXiiltJXIl»
jsubsidies to
IROrîisIvirecT aias
I"Négative "■"Positive 1']AidstoCovering ofope­ratinglosses TotalIndirect
aids...Aids .to
cokingcoaljïotal(direct,in-I
.ritvschemes |•rationalizati on Jdirect,cokingcoal)I
i;65 9,8-r-
1966
1967
1968
1969
1970
1971
1972
1973 •14,1
14.1
15,4
13.2
12,6
11.4
10.5
11,5*»
0,7
1,115,9
•18,1;
18.6
22,5
23,9
15.7
13»1
9,26,9
18,1
18,6
!22,5'
23,9
.!5»7 i
-13,8j
10,3'"""j1
1:1,1
0,6
0,1
I6,9
19,2
19.2
22.6
23,9
15.7 .
;13,8
10.3 :•
ji?74 ,!■■_ ■11--!. ■II18.2 !I18.2 •-•18.2 '1
._ .__. tu.a./tonne
:•1905 ,"ΙI
' I
,19060,67 r0,61M jf0,67..I
1967
!'2,18 2,18i■0,13 -2,31 |
19682,70 .2,70 0.09 2,79
119691" I 3,88V3,88 0,02 3,90
:19705,31 5,31 5,31 ;
1971[4,13 4,13 4,13
1972 0,31 4,45 4,76 I ;4,76 -'
1973 .0.61.5,11 5,72 5,72 :1
■...I1974 1 I-- - !18,24 18,24 18,24 •-î

Table 12
Million u.a .
Government subsi­
dies tosocial se­
curity schemes-vDirect aids Indirect
aids
vAids toco-
king coalTotal (di­
rect ,indi­
rect ,coking
'coal )"Négative ""Positive "jAits to
pithead
stocksoperatmg
lossesTotal
rationalization
1973
1974
i29.8
23.97'4
;7,2
.J9,4
3,0442,2
94,3488,8
128,430,0
21,7518,8
150,1
v
-,«*
ί»i ;
ù."a/tonn «–>
1973
19740,23 j
0,21 !0,06
0,060,08
0,03.3,43
0,823,80
1,120,23
0,194,03
1,31
' – ' I- Aids tothe coal industry
i '
United Kingdom
TIntergrated system