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COM (84) 116 
 
 
 
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 116 final.  
Brussels, 9 March 1984.
MEMORANDUM
on the financial aids granted by the M em b er States 
to the coal industry in  
1  9 8 3
and on the additional financial aids granted by the Member States
to the coal industry in
1  9 8 2
(Communication from the Commission to the Council)
COM(84) 116 final.

CONTENTS
Page
PART ONE
Memorandum on the financial aids granted by the Member States to the 
coal industry in 1983
CHAPTER I
Introduction 1/1
CHAPTER II
The situation in the common market for coal in 1983 and the trends
in financial aids to the r.oal industrv
1. The situation in the common market for coal
2. The financial situation of the coal industry in the Community
3. The financial aids granted by the Member States to the coal1/3
1/3
1/5
industry in 1983 1/7
4. Compatibility of the financial aids planned for 1983 with the
proper functioning of the common market 1/10
CHAPTER III
Conclusions 1/14
Annex
Survey of financial aids planned for 1983 and examination of their 
compatibility with the provisions of Decision 528/76
I. Aids not related to current production A/1
II. Financial aids relating to current production A/6
Tables 
PART TWO
Additional aids granted to the French coal industry in 1982 
Introduction II n
I. Additional aids granted to the French coal industry in 1982 II/2
II. Summary II/6
Tables

P A R T  O N E
Memorandum 
on the
financial aids granted by the Member States 
to the coal industry in 
1 9  8 3

-  1/1  -
CHAPTER I
INTRODUCTION
1. This Memorandum examines the Member States' planned financial aids to coal­
mining for 1983 to see whether they are compatible with Commission Decision 
No. 528/76/ECSC and with the proper functioning of the common market.
2. The 1983 Memorandum follows the same pattern as that of the previous year.
The main section is devoted to the economic and financial problems of under­
takings and to the competitive situation in the coal market. In the light
of these data, the compatibility of the aids to current production with 
the proper functioning of the common market is examined in accordance with 
Article 3(1) of Decision No. 528/76. The annex lists the individual measures 
and examines their compatibility with the other provisions of the Decision.
3. Pursuant to Article 2 of Decision No. 528/76, the Commission received informa­
tion regarding aid measures for 1983 from the following Governments :
- the German Government,
in a letter dated 2 December 1982;
- the French Government,
in a letter dated 10 January 1984;
- the United Kingdom Government,
in a letter dated 25 February 1983/
- the Belgian Government,
in a letter dated 27 June 1983.
4. As the above dates show, the Member States were late in sending information 
for 1983, for under Article 2 of the Decision the Commission should hâve 
been notified by 1 November 1982. The delay was due to the fact that the
1)OJ No. L 63 of 11 March 1976, p. 1.

-  1/2  -
French Government, which had difficulties in calculating the aid both 
for 1982 and 1983, submitted its information very late. As indicated 
in Part Two of this report, the estimated aids for 1982 were insufficient 
to cover the losses of Charbonnages de France. Additional aid had to 
be granted, and in 1983 basic decisions were needed concerning future 
aid policy vis-à-vis the French coal industry, as the losses of Char­
bonnages de France had risen considerably in 1982. As a result, the French 
Government has decided to limit the aids to the level reached in 1982/1983.
5. The Commission draws the attention for the Member States to the late 
approval of the governmental notifications. The result is that the Com­
mission has not been able to consider a priori which of the aids proposed 
by Governments were in conformity with the criteria of Decision No. 
528/76/ECSC. It is very regrettable that the procedure for approval can 
be executed only a posteriori. The Commission trusts that in future when 
granting aid the Member; States will comply with the rules of this Decision.
6. Where the Commission obtained knowledge from the reports of Member State 
Governments of economic facts which are covered by the obligation of 
professional secrecy under Article 47 of the ECSC Treaty, these have 
not been included in the Memorandum.
7. In calculating the amount of aid per tonne for 1983, the following estimate 
of output was used as a basis (million tonnes, t = t):
Federal Republic of Germany 89,0
France 17.0
United Kingdom 122.5
Belgium 6.4
Total 234^9
8. To convert the aid amounts expressed in national currencies into ECU, 
the following exchange rates were used : (average for first half of 1983)
1 ECU = 2.27 DM
= 6.67 FF
= 0.60 £
= 45.0 Bfrs
./.

- 1/3 - 
CHAPTER II
THE SITUATION IN THE COMMON MARKET FOR COAL IN 1983 AND THE TRENDS IN FINANCIAL 
AIDS TO THE COAL INDUSTRY
1 - The situation in the common market for coat
The Memorandum describes only the most significant features of energy and 
coal market developments in 1983 which have a bearing on the granting of 
and on the competitiveness of Community coal. The figures refer to estimates 
available at the time of writing (November 1983).
According to provisional information, the general economic situation improved 
slightly in the Community in 1983 (compared with 1982). The Community's 
real gross domestic product rose by 0.5%. As a result of this compara­
tively low increase, total primary energy consumption in 1983 will be 1.6% 
less than in 1982. As regards the individual energy sources, the signs 
are that oil consumption will continue to fall, while the consumption of 
nuclear energy should increase; a reduction from 312.6 million tonnes to 
291.7 million tonnes (6.7%) in inland deliveries of hard coal is on the 
cards in 1983.
The pattern of coal consumption sector by sector changed to some extent 
in 1983. Power station demand for coal fell by some 10 million tonnes and 
household demand for coal fell by 2 million tonnes. "Other industry" con­
sumed more (1.0 million tonnes) than in 1982. Coal use in coke ovens fell 
by over 10 million tonnes because coke sales are suffering from the crisis 
in the steel industry.
Coal supplies in the Community fell in 1983. Production fell by 8 million 
tonnes and imports by some 10 million tonnes compared with 1982.

- 1/4 -
Although consumption and supply are falling, the imbalance in the market 
since 1982, caused by a glut, did not disappear in 1983. Pithead stocks 
of Community coal therefore rose again in 1983 by some 6 million tonnes 
to some 55 million tonnes . If coke stocks - which rose only slightly 
in 1983 (by 0.5 million tonnes) - are included, total coal and coke stocks 
held by Community producers had risen to 71 million tonnes by the end of 
the year.
This shows that there is an unfavourable trend in consumption on the market 
for coal in the Community and that the Community coal industry has not 
adjusted its production in line with the market in time to prevent a further 
increase in pithead stocks.
In the second half of 1982 a downward trend in the price of coal on the 
world market began, and this trend became stronger in 1983.
Table A
Imported coal prices US $ per tonne
Quarterly Power-station coal As at Coking coal
average (free-at-frontier (ARA c.i.f. prices)
c.i.f. prices)
I 1982 62.00 2.1.1982 82.45
II 1982 63.10 1.4.1982 82.20
III 1982 62.10 1.7.1982 81.20
IV 1982 59.00 1.10.1982 79.70
I 1983 54.60 2.1.1983 76.25
II 1983 51.30 1.4.1983 68.95
1.7.1983 67.05
1.10.1983 65.95■*
1)Includes strategic stocks in the Federal Republic of Germany

- 1/5 -
In addition to the trend in the price of coal on the world market, on which 
Community firms have to align in the case of many sales contracts, it is 
the exchange rate of the US dollar which determines the undertaking's revenue 
(expressed in national currencies). In general, the value of the dollar 
went up slightly in 1982/83, thus favourably affecting the revenue per 
tonne of undertakings in the Community. Taking into account the development 
of production costs, there will be a further slight deterioration in the 
revenue situation in 1983 (except in the case of Belgium), and this has 
also been reflected in the trend in aids. Consequently, coalmining under­
takings were unable to withstand competition from imported coal by them­
selves in 1983. Aids were required in order to enable them to ensure their 
economic survival.
2■ The financial situation of the coal industry in the Community
Complete calculations for costs and revenue in 1982 have been obtained 
from undertakings, thus making it possible to compare trends with the pre­
vious year.
Tbble B
Financial situation of the undertakings
Production costs (1) Revenue Difference (3)ECU/t Increase ECU/t Increase ECU/t19811982 %1981 1982 %1981 1982Fed. Rep. of 
Germany 85.092.0+ 8.2 73.0 81.0+11.0- 12.0 - 11.0
Belgium 108.0 98.0- 9.3 60.0 70.0+16.7- 48.0- 28.0
France 81.0.97.0+ 19.8 65.0 67.0+3.1- 16.0 - 30.0
United ^ 
Kingdom^1
i78.084.0+ 7.7 65.0 68.0+4.6- 13.0 - 16.0
1)
2)
3)Total costs including capital service and depreciation.
Includes open-cast mining.
The losses per tonne are not fully comparable with the subsidies per tonne 
shown in Table 2 in the Annex, which were calculated in accordance with 
the method laid down in Decision No. 528/76, because of the way in which 
subsidies are entered in company accounts.
./.

-  1/6  -
It can be seen from the figures in Table B that production costs in the Community 
coal industry rose everywhere except in Belgium in 1982. In Belgium, prime 
costs were 9.3% lower in 1982 than they were in 1981. This is mainly attributable 
to a 6.3% increase in productivity and to the devaluation of the Belgian franc.
In general, inflation and varying trends in productivity (a rise of 1.1% on 
average for the Community as a whole) and wages were the main factors deter­
mining the cost trend. In France there has been a particularly large increase 
in costs as a result of a 6.1% decline in productivity. This has had a very 
unfavourable effect on the revenue situation and has necessitated additional 
aids.
The pattern of revenue from Community coal varied from one country to another. 
Comparatively large increases in revenue were achieved in Belgium. The lowest 
rates of increase were in the United Kingdom and France. On average for the 
Community as a whole, the movements in world market prices in 1982 scarcely 
improved the revenue for Community coal.
Only in Belgium and the Federal Republic of Germany did the differing trend 
as between costs and revenue in 1982 lead to an improvement in earnings; in 
France in particular the losses made by the coal industry increased considerably 
in 1982.
At the time of writing, figures for production costs and returns in 1983 are 
available only for the first six months of the year. A further increase in 
production costs on the same scale as in previous years can be expected, as 
the factors which cause production costs to rise (increase in materials costs, 
wages and interest) continued unchanged in 1983. One special factor - inadequate 
capacity utilization as a result of idle shifts or other measures - even resulted 
in an additional increase in costs in 1983.

- 1/7 -
It is difficult to estimate the revenue from Community coal in 1983, since 
coal prices on the world market are falling and it is not yet clear to 
what extent the pricing policy of Community undertakings will take into 
account the trend of world market prices. The undertakings require a certain 
amount of time in order to adjust their prices, since the latter cannot 
be changed every day or every week.
It may be assumed that there was no substantial change in the revenue situa­
tion in 1983 compared with 1982.
3. Financial aids granted by Member States to the coal industry in 1983
Aids granted under Article 4 and 5 of Decision No. 528/76 are compatible 
with the common market, provided they do not exceed certain limits. Aids 
under Article 4 are for social security benefits and those under Article 5 
to help to cover inherited liabilities. The explanations - to be found in 
the Annex, pp. A1 to A6 - show that in this sphere the permissible aid 
limits were not exceeded in the countries considered.
As explained in Page A1 of the Annex, it has not yet been possible to carry 
out the calculations for France. As a result, it was impossible to give 
figures for the Community as a whole in Table 1. The calculations for France 
will be carried out at a later date.
Where the other countries are concerned, the figures set out in Table 1 
in the Annex indicate increases in 1983 compared with 1982. As regards 
social security benefits within the meaning of Article 4, the increases 
are the result of the constantly deteriorating ratio between the total 
number of men employed and those receiving unemployment benefits, and of 
increases in pensions.
The rise in the cost of covering inherited liabilities within the meaning 
of Article 5 is the result partly of further pit closures and rationali­
zation measures and partly of increased costs in some categories of inherited 
liability (costs for closure, drainage, pensions, concessionary coal, etc.).

-  1/8  -
Aids to current production are those direct and indirect measures which 
are defined in Articles 7 to 12 of Decision No. 528/76 and which provide 
the criteria for judging the proper functioning of the common market. Details 
of these measures and of the amounts involved are available in the Annex 
Cpp. A/6 et seq.) and Table 2.
Table C below provides an overall view of the trends in aids envisaged 
in 1983 vis-à-vis 1982 :
Table C
Breakdown of aids
;
‘Total sum Amounts per tonne
million ECU ECU
1982 1983 1982 1983
[Federal Republic of Germany 
Belgium r  
France
United Kingdom
Community754.8
199.4
574.4 
723.2953.7 
162.5
565.7 
719.97.97
31.68
33.99
5.8110.72
25.37
33.26
5.88
2,251.8 2,401.8 9.29 10.22
Of the total sums the fol-
lowing were allocated to:
- direct measures 47.9 55.4 0.20 0.27
- aids to coking coal 432.2 659.3 1.78 2.81
- indirect measures 1,771.7 1,687.1 7.31 7.18
breakdown
Art. 7 (Investment) 236.3 149.6 0.97 0.64
Art. 8 (Personnel) 111.0 121.9 0.46 0.52
Art. 9 (Stocks) 13.4 3.3 0.06 0.01
Art. 10 (Strategic reserves) 59.1 63.7 0.24 0.27
Art. 11 (Power station coal) 6.8- 0.03-
Art. 12 (Loss coverage) 1,345.1 1,348.6 5.55 5.74
While the sums per tonne for the Federal Republic of Germany are correct
statistically, in the context of an international comparison under the 
provisions of Decision 528/76, they are only partly valid for comparison 
with the other Community countries. This is due to the Third Electricity- 
from-Coal Law, whereby power stations buy steam coal from the coal industry 
at break-even prices. The additional cost incurred by using Community coal 
is offset by increasing electricity prices. In 1982, this offset levy amounted 
to some DM 1,900 m (7.40 ECU per tonne). A figure of DM 2,000 m (9.90 ECU 
per tonne) is estimated for 1983. This sum is not, however, included in 
the list of aids- It is juridically not considered as a State aid, however 
the economic effect of this parafiscal tax canalized to the coal fired 
power stations can be classified as a subsidization.
• / n .

- 1/9 -
The table shows, for the Community as a whole/ that the aid plenned for 
1983 is somewhat greater than in 1982. Total aid for 1983 (approximately 
2,400 million ECU) amounts to 6.4% more than in 1982. The increase per 
tonne amounts to 10%.
The country-by-country comparison shows that there have been slight reduc­
tions in aids in Belgium, France and the United Kingdom, while in the Federal 
Republic of Germany there has been an increase, mainly as a result of the 
coking coal aid.
Federal Republic of Germany
Aids to German coal mining industry in 1983 will be some 26% higher than 
in 1982 (953.7 million ECU compared with 754.8 million ECU). The increase 
is mainly attributable to the coking coal aid. The figures relating to 
this aid are provisional.
Belgium
The aids planned for 1983 are considerably lower than in the previous year 
(162.5 million as against 199.4 million ECU, i.e. a drop of 18.5%). The 
main areas where the reductions have been made are aids to cover losses 
and aids for coking coal. By increasing the Belgian coal prices, it was 
possible to raise revenue, with the result that the earnings situation 
has improved. It has not yet been possible, however, to halt production 
completely in the Southern coalfield - where the revenue situation is parti­
cularly unfavourable - for reasons of social and regional policy. The closure 
of the last remaining colliery in this coalfield is planned for 30 September 
1984- The funding of the aid is guaranteed by loans from a finance company 
(Société Nationale pour la Restructuration des secteurs nationaux), in order 
to reduce the burden on public funds.
France
The aids proposed in France for 1983 are of a similar magnitude to those 
for 1982 (565.7 million ECU compared with 574.4 million ECU).

-  1/10  -
United Kingdom
There was Little change in the aids granted to the UK coal industry in 
the 1983/84 coal marketing year compared with 1982/83 (719.9 million ECU 
compared with 723.2 million ECU).
<
the reasons for and circumstances surrounding the aid measures in each 
country in 1983 have been explained above. The measures are discussed from 
the viewpoint of their compatibility with the various criteria laid down 
in Decision No. 528/76 in the Annex (see Chapter II, pp. A/6 et seq.).
At this point, however, they must also be examined for compatibility with 
the proper functioning of the common market, in accordance with Article 
3(1) of the Decision.
4. Compatibility of the financial aids planned for 1983 with the proper functioning 
of the common market
a) General aspects
a^) The amounts of aid per tonne for 1983 indicated in Table C on page 
1/8 show that in the United Kingdom the amount is fairly small, 
and that there is a large gap particularly between it and the amounts 
granted by Belgium and France; the amount for Germany lies roughly 
in the middle. This difference in amounts is not to be regarded 
as indicating a distortion of competition between coal producers. 
Although intra-Community trade in coal amounted to 16 million tonnes 
in 1983, the common market in coal consists essentially of national 
markets which rarely give rise to competition from several Community 
producers. There are only a few "contested" areas in which several 
producers offer their products at the same time, but the quantities 
of coal sold in these areas are relatively small. Alignments by 
Community producers on the offers of other Community producers only 
involved 0.5 million tonnes in 1982. In view of this, it may generally 
be assumed that competition has not been disrupted in 1983 because 
of the differences in the amounts of aid granted.
./.

-  1/11  -
a2) Supplies of coal and coke to the Community in 1983 were assured
at all times. Pit closures in 1983 as part of rationalization measures 
will have no effect on supplies.
Pithead stocks, current production and imports enabled the demand 
for coal to be met. It is therefore clear that aids will not jeo­
pardize supplies in 1983.
a-j) According to the estimates available, there was little change in 
intra-Community coal trading in 1983. The total for 1983 was 15.7 
million tonnes.
Table D
Coal deliveries to other Community countries
1,000 tonnes
Federal Republic 
of GermanyBelgium FranceUnited
KingdomTotal
19828.675 551 620 5.877 15.723
19839.110 500 535 5.510 15.655
The table shows that deliveries from Belgium and France to other 
Community countries are extremely low and consequently have little 
impact on competition between Community producers.
Deliveries of German coal, which account for 60% of total deliveries 
in intra-Community trade, mainly concern coking coal for coke-ovens 
in other Community countries. In the past few years these deliveries 
have steadily declined, having been affected by the crisis in the 
steel industry; the real competitive problems are hence not between 
Community producers but in relation to coking coal imported from 
non-member countries.

-  1/12  -
Deliveries of UK coal in intra-Community trade compete almost exclu­
sively with imported steam coal from non-Community countries. The 
NCB is making particular efforts again in 1983 to maintain or expand
its sales.
It can be concluded from the foregoing that aid measures will have 
little influence on intra-Community trade in view of the lack of 
competition between producers.
a^) Output was further rationalized in 1983. Five operational installations 
in the French coat fields of Nord/Pas-de-Calais and Centre-Midi 
and one colliery in Germany were closed, the closures being phased 
in such a way as to avoid regional and social problems. For reasons 
of rationalization, ten collieries were also closed in the United 
Kingdom.
The aim of investment aid and subsidies granted under Article 5 
of Decision No. 528/76 is to rationalize Community coal production, 
remove the burden resulting from pit closures and maintain the compe­
titiveness of those pits selected to ensure future supplies.
b) Particular aspects affecting the trends in coal prices
Changes in prices of some grades of coal in a number of selected Community 
coalfields can be seen in the following table.

- 1/13 -
Table E
Trend in national coal list prices
(in national currency per tonne)
1
\ Date
jFed. Rep. of 
Germany
RAG DM 
Saar DM 
Aachen DMSteamcoal Coking coal !
1.7.1982 H5.1.1983 1.7.1983 1.7.1982 15.1.1983 1.7.1983;
257 — ^  269 — ^  
294,— f  300,-- ; 
— «  —269,--”
300,— "244.50 
274,-
271.50253.50 
280,—
271.50?
t
253.50 
280,—
271.50
(Belgium Bfrs3.975,— 1 )| 3.975,— 1 ) 3.975,-1)1 3.655,— 3.850,— 3.850,—
^France
Lorraine FF542,--1)j  603,— 1)i  603,— 15 565,— 565,- 565,—
(United Kingdom 
i  Scotland £ 
!  South Yorkshire £54,40??: 59,90]?! 59,90?] 
52,50 i 56,80 ; -  56,80U 
-------- i--------- i ---------“ 
;
i______________Lj_____________ ~-
1) High-volatile, nuts 5
2) High-volatile, nuts 2
As can be seen from the above table, list prices for Community coal rose 
in the second half of 1982, but have since remain stable in generaU
In practice, the actual prices calculated by Community producers are lower 
than the list prices. Only on this realistic basis can the proper functioning 
of the common market for coal be assessed.
The Commission keeps a watch on the trends in the prices of steam coal 
and coking coal both on the world market and on the common market for coal.
As stated above (page 1/4), world market prices have been falling since 
autumn 1982. The Commission assumes that it will take a certain amount 
of time for the prices of Community coal to be adjusted in line with the 
new price conditions on the world market, but that this will not give rise 
to indirect aids to industrial users of coal, which would not be permitted 
under the provisions of Article 3(1) of Decision No. 528/76.
./.

- 1/14 -
ç) Conclusions about the proper functioning of the common market
On the basis of the above considerations, the Commission comes to the 
conclusion that in 1983 no disturbance of the proper functioning of 
the common market occurred as a result of the aids granted by the 
Member States.
CHAPTER III 
Conclusions
1. The Commission has examined whether the measures proposed by each Member
1 )State for 1983 comply with the provisions of Decision No. 528/76, and 
concludes that the aids proposed by the Member States relating to current 
production in 1983 do so comply.
2. In its analysis of coal market trends, the Commission has established that 
there was a comparatively large decrease in the quantity of coal consumed 
in the Community in 1983. The competitive position of Community coal has 
worsened as a result of falling coal prices on the world market.
For the Community as a whole, aid has increased from 2,251.8 million ECU 
in 1982 to 2,40T.8 million ECU in 1983; the average amount of aid per tonne 
in the Community has risen by 10% from 9.29 ECU to 10.22 ECU.
The assessment of the method of calculating the aids granted to the French 
coal industry pursuant to Articles 4 and 5 of Decision No. 528/76 will 
be carried out at a later date.

/
A N N E X
Survey of financial aids to the coal industry 
planned by the Member States in 1983
Examination of the compatibility of the measures envisaged with
Decision No. 528/76/ECSC
Tables

- A/1 -
I. Aids not related to current production
These aids are related to social measures and the covering of inherited 
liabilities deriving from earlier pit closures.
A. Description and assessment of financial measures in the social security 
field
Article 4 of Decision No. 528/76/ECSC states that contributions by Member 
States to the financing of social security benefits shall be considered 
compatible with the common market, provided that, for undertakings in 
the coal mining industry, they bring the ratio between the burden per 
miner in employment and the benefits per person in receipt of benefit 
into line with the corresponding ratio in other sectors.
This section is concerned solely with the amount of financial aid given 
in the social sector and, where appropriate, with cases where the limits 
set in Article 4 of Decision No. 528/76/ECSC have been exceeded.
A.j) GERMANY, FRANCE, BELGIUM
In Germany DM 8,665 million are earmarked in 1983 to cover the deficit 
in the surviving dependents pension scheme of the mining industry 
as a whole, some 80% - DM 6,932 million - of which goes to the coal 
industry.
At the moment no details can be given of the contribution made to 
the social security system in France. The Commission has not yet 
had an opportunity to assess the reformed method of calculation 
introduced by the French Government in 1982 (see page II/2) and 
therefore reserves the right to comment on it in the 1984 Memorandum, 
by which time it will have completed its appraisal.

- A/2 -
The Belgian State authorities will contribute an estimated Bfrs.
41,971.2 million to financing social security benefits for the Belgian 
mining industry in 1983. Full details are set out in the Table below:
Source.  Amount of State 
!  subsidies 
!  (Bfrs. million)Purpose
State 27,407.61)Old-age pension and insurance of surviving 
dependents
Regular contribution called for by the 
law
State
State5,797.9
8,765.7Disability pensions insurance·
Disability pensions
Occupational diseases
50% of the expenditure arising from miners' 
pneumoconiosis
ITotal
1)41,971.2
Commission estimate
Calculations by the Commission confirm that Germany and Belgium 
have not exceeded the limits set in Article 4 of Decision No. 528/76.
- In Germany the undertakings' actual welfare expenditure is DM 
336 million (5.4%) higher than the normal expenditure defined 
in Article 4.
- In Belgium the undertakings' actual social expenditure is Bfr
255.2 million higher than the normal expenditure defined in Ar­
ticle 4.
) UNITED KINGDOM
Apart from the general social security system - which also extends 
to the coal industry - almost all branches of industry in Britain 
have insurance systems of their own from which pensions are paid

- A/3 -
to retired workers. The British coal industry also has such a supple­
mentary system in the form of a pension fund, into which the British 
Government will pay £ 63.8 million in the 1983/84 coal marketing 
year. However, since this sum is only to balance out the ratio 
between working and retired miners, the limits set in Article 4 
of Decision No. 528/76 are not exceeded.
Aj) Summary of financial measures in the social security sector
As Table 1 in the Annex shows, in 1983 the State authorities in 
the countries concerned will contribute more to the social security 
side of the coal industry than they did in 1982. No total can be 
calculated for the Community, as a whole until the appraisal of 
France's new method of calculation has been completed.
B. Description and assessment of the financial measures to cover inherited 
liabilities
Pursuant to Article 5 of Decision No. 528/76 measures taken by Member 
States to assist the undertakings to cover the costs arising from pit 
closures which are not related to current production and the sale of 
coal shall be compatible with the common market provided that the amounts 
involved in such measures do not exceed the amount of such costs, i.e. 
the inherited liabilities. Sums in excess thereof represent direct 
aid to current production and are to be regarded as aids under Ar­
ticles 7 to 12 of Decision No. 528/76.
B^) GERMANY
For 1983 the Federal Government has planned to following measures 
to cover inherited liabilities :

- A/4 -
- closure premiums 10.6 DM million
- aid for water-control costs 143.3 " "
- aid to cover expenditure resulting from
contraction 40.5 " "
- aid to cover inherited liabilities 2.3 " "
- aid to cover Ruhrkohle AG's closure write- 48.0 " "
offs
Total 244.7 DM million
(= 107.8 m illion ECU)
All the above items represent liabilities inherited by the under­
takings, i.e. those resulting from the closure of pits in previous 
years, and therefore do not relate to current production.
These measures are aids already granted in previous years.
Through the German Coal Mining Association (Aktionsgemeinschaft 
Deutscher Steinkohlenbergbau) the Federal Government pays the under­
takings concerned a premium of 20 DM/t of annual capacity for the 
closures carried out to rationalize production. The aid covers 
only a small fraction of the undertakings' actual closure costs.
The DM 143.3 million for water control costs will be paid to the 
Ruhr mining industry specifically to cover the financial burden 
rising from closures since 31 December 1966. As a result of pit 
closures, the Ruhr coal mining industry bears the heavy burden 
of constantly rising contributions to water control associations 
and the Ruhr Pumping Association (Pumpgemeinschaft Ruhr). The aid 
does not exceed the actual additional costs to be borne by the 
undertakings.
The DM 40.5 million to cover expenditure resulting from contrac­
tion is additional to the closure premiums which (as mentioned 
above) do not cover the actual costs of the closures. This measure

- A / 5 -
concerns Liabilities arising out of pit closures since 31 December 1972.  
The aid is spread over a period of five years in the form of a flat- 
rate payment of DM 30 for every tonne by which annual capacity 
is reduced, but not exceeding the actual costs borne by the under­
takings as a result of the closures.
The DM 2.3 million is aid for covering inherited liabilities arising 
from pit closures before 1 January 1973. The relevant German laws 
ensure that the aid does not exceed the actual liabilities borne 
by the undertakings.
The DM 48.0 million aid towards closure write-offs only concerns 
Ruhrkohle AG. In previous years Ruhrkohle AG has had to include 
write-offs of assets resulting from pit closures which could not 
be brought into the profit and loss account because this would 
have bankrupted the undertaking. A special item was therefore intro­
duced on the assets side of the balance to write off a total of 
DM 480 million in ten equal annual instalments.
Taking into consideration the financial position of the undertakings, 
the public authorities agreed to take over the annual payments of 
DM 48 million.
All the above measures clearly satisfy the requirements of Article 
5(1) of Decision No. 528/76. The total sum involved in the measures 
is 107.8 million ECU in 1983 and is included in Table 1 of the 
Annex.
B2) FRANCE, UNITED KINGDOM
At the moment no details can be given of the measures taken to 
cover inherited liabilities in France. The Commission has not yet 
had an opportunity to assess the reformed method of calculation 
introduced by the French Government in 1982 (see page II/2) and 
therefore reserves the right to comment on it in the 1984 Memorandum, 
by which time it will have completed its appraisal.

- A/6 -
In 1983 the British Government plans to introduce the following 
measures under Article 5 of Decision No. 528/76:
- redundancy payments to miners affected by pit 
closures 21.1 £ million
- early retirement payments 12.6II I I
- aid in respect of concessionary coal for 
pensioners 17.8•  I II
Total 51.5 £ million
(= 85.8 million ECU)
The United Kingdom measures cover inherited liabilities arising out 
of pit closures; these liabilities are the same as the sum granted 
in aid.
To summarize, the United Kingdom measures listed above satisfy 
the criteria of Article 5(1) of Decision No. 528/76.
Bj) Summary of the measures to cover inherited liabilities
As can be seen from Table 1 in the Annex, the planned state aids 
to cover inherited liabilities in 1983 are little different from 
those granted in 1982. No total can be calculated for the Community 
as a whole until the appraisal of France's new method of calculation 
has been completed.
II. Financial aids relating to current production
All aids that are not social measures within the meaning of Article 4 
of Decision No. 528/76, or aids to cover inherited liabilities within 
the meaning of Article 5, are aids to current production.

- A/7 -
Aid to current production may be granted directly or indirectly to under­
takings.
A. Indirect financial aid to current production in the coal mining industry
Indirect financial aid covers all measures which Member Governments 
announce in accordance with the first paragraph of Article 2(1) of 
Decision No. 528/76 but which do not come into the category of the 
direct measures defined in Articles 7 to 12 of the Decision. Indirect 
measures are reported to the Commission under Decision No. 528/76 and 
assessed according to the provisions of the ECSC Treaty.
Only Germany, France and Belgium have announced indirect measures to 
aid current production in the coal industry for 1983. All the measures 
described below were taken in previous years as well.
A^) Description of the German, Belgian and French measures
For 1983 the Federal Government has provided for special depreciation 
facilities in respect of expansion and rationalization measures 
in the underground sector of the coal industry. These special depre­
ciation allowances total DM 80.0 million (35.2 million ECU). The 
measure is based on paragraph 51 of the Income Tax Law and on paragraph 
81 of the Income Tax Regulation and will give the German coal industry 
no competitive advantages vis-à-vis other Community coal producers, 
since the balance sheets of German coal mining undertakings in 
any case show losses which are partially reduced by direct aids.
In 1983 the Belgian Government plans indirect financial measures 
in the following sectors :

- A/8 -
- expenditure on season tickets or cheap holiday 14.7 BFR million
tickets for miners
- subsidies to the Miners' National Pensions Fund 
to compensate for new expenditure on welfare 
arising from the increase in the miners' annual 
holiday allowance, the introduction of new sick­
ness benefits and longer annual holiday (Ar­
ticles 32.12 and 32.14 in the budget of the
Economic Affairs Ministry) 518.4 BFR million
Total 533.1 BFR million
(= 11.8 million ECU)
The French Government plans a state subsidy of FF 56.0 million (8.4 
million ECU) for the research programme of the Centre d'Etudes 
et Recherches des Charbonnages de France (CERCHAR) in 1983.
Assessment of indirect financial aid to the coal industry
The Commission has examined the abovementioned measures, which 
have been in force for several years, and does not consider that 
they violate the ban imposed on subsidies by Article 4(c) of the 
ECSC Treaty.
Aj) Summary of indirect measures
Table 2 at the end of this Annex gives the relevant figures for 
A/2. In 1983 direct aid to the coal industry rose to 55.4 million 
ECU from 47.9 million ECU in 1982.
B. Direct financial aid to current production in the coal-mining industry 
B^) FEDERAL REPUBLIC OF GERMANY
a) The extent to which direct financial aid to current production 
in the German coal-mining industry is compatible with the provi­
sions of Articles 7 to 12 of Decision No. 528/76
The Federal Government proposes to continue in 1983 the direct 
aids already granted in 1982.

- A/9 -
Legal basis 
Lnder DecisionMeasuresAmount of aid
Total Per t production
lio. 528/76 Million DM Million ECU DM ECU
'Art. 7(1) and (2)1)Investment aid 261.0 115.0 2.93 1.29
’ Art. 7 (3) (3) Promotion of inno­
vation 50.0 22.0 0.56 0.25
Art. 8 Mineworkers' bonuses 212.0 93.4 2.38 1.05
Urt. 10fiAid to security 
stocks 144.5 63.7 1.62 0.71
f(iTotal 667.5 294.1 7.49 3.30
Including the DM 109.0 million subsidy granted to the Eschweiler Bergwerks- 
verein to finance restructuring investments.
In addition to the aids mentioned above, the Federal and LSndei—  
Governments are to grant coking coal aid to the value of DM 
1,417.5 million (624.4 million ECU) an aid to production pur­
suant to Decision No. 73/287 (DM 56.70 a tonne on 25 million 
tonnes).
The investment aid of 115.0 million ECU is intended for investment 
projects in pits, coking plants, briquetting plants and pithead 
power stations. In 1983, total investment in the German coal 
industry will come to some 400 million EUC. Investment aid will 
represent just under 30% of total investments.
From the point of view of the Community's coal policy, the invest­
ment aid is to be regarded as beneficial since it wilt promote 
the long-term stabilization of production in the German coalfields. 
The aid conforms to the provisions of Article 7(1) of Decision 
No. 528/76.
Provisional figure.

- A /10 -
The 22.0 million ECU to promote innovation is intended to ensure 
that research results are applied to production as quickly as 
possible. The aid is lower than the costs borne by the under­
takings and is granted in respect of individual projects which, 
when completed, are likely to prove their economic worth to 
coal-mining in the medium term. The purpose and amount of this 
aid show that it is compatible with Article 7(3) (3) of Decision 
No. 528/76.
Minerworkers' bonuses, amounting in 1983 to 93.4 million EUC, 
have been paid since 1956. A bonus of DM 10 is paid for every 
shift worked underground. This bonus ensures that the qualified 
mineworkers which the German coal industry needs if it is to 
increase its output stay in coal-mining. The measurer therefore 
satisfies Article 8 of Decision No. 528/76.
The 63.7 million ECU aid towards maintaining long-term security 
stocks is a measure introduced by the Federal Government in 
order to increase the security of energy supplies. For this 
purpose, the German Coal Mining Emergency Association (Notgemein­
schaft Deutscher Steinkohlenbergbau) bought up 10 million tonnes 
of coal and coke. The Federal Government covers only part of 
the actual current cost of maintaining these stocks in 1983, 
by granting an aid of DM 144.5 million. The purpose and amount 
of the aid show that it satisfies Article 10 of Decision No. 
528/76.
The foregoing remarks show that the financial measures planned 
by the Federal Government for 1983 in favour of the German coal­
mining industry satisfy Articles 7, 8 and 10 of Decision No. 
528/76.
./.

- A/11 -
b) The extent to which direct financial aids to current production 
in the German coal-mining industry are compatible with the proper 
functioning of the common market
Any assessment of the extent to which German aids are compatible 
with the proper functioning of the common market must consider 
all the direct and indirect aids for current production in 1983 
(Article 3(2) of Decision No. 528/76).
The relevant figures are given in Table 2 at the end of this 
Annex.
By this method of calculation, the total proposed aid under 
the German measures amounts to 953.7 million ECU, or 10.72 ECU/t. 
In comparison with 1982, aids per tonne have risen by roughly 
35%.
As regards the compatibility of German aids with the proper 
functioning of the common market, reference is made to the com­
ments in the main body of this document (see pp. 1/10 and seq.).
B2) FRANCE
a) The extent to which direct financial aids to current production 
in the French coal-mining industry are compatible with the provi­
sions of Articles 7 to 12 of Decision No. 528/76
The French Government plans no new aids in 1983, but is to conti­
nue with the aids instituted in previous years; this involves 
only loss-covering aid:

- A /12 -
Legal basis 
under Decision 
No. 528/76MeasuresAmount of aid
Total Per t production
FF million million ECU FF ECU
Art. 12 A) Cover for the
losses by the cen-
tral administra-
tion of Charoon-
nages de France 495.0 74.2 29.12 4.36
B) Cover for the coal-i
Ï
fields' operating
;  lossesD !  3,216.0 1 r482.2 189.18 28.36
i  Total 
—j
!  3/711.0
i556.4 218.30 32.72
1)Including a portion of the coking coal aid.
In addition to the abovementioned aids, an aid for coking 
coal of FF 6.0 million (0.9 million ECU) is to be granted 
in 1983. This figure is low, since part of the coking coat 
aid is covered by Article 12.
As regards the assessment of the aid granted in 1983 in accor­
dance with Decision No. 528/76, the amount of aid of FF 3,711.0 
million is expected to be less than the total losses of the 
Charbonnages de France. The amount of the aid therefore conforms 
to the provisions of Article 12 of the Decision.
The following points are relevant in connection with aid 
to the individual coalfields :
- in 1983, aid to the Nord/Pas-de-Calais and Centre-Midi
coalfields will be calculated on the basis that the closure 
of further pits will bring a reduction in production with 
some 700 jobs lost in the coal industry. The aids will 
prevent severe economic and social disruption in areas 
where there are not yet adequate opportunities for re-employ­
ment. The aids to these coalfields therefore satisfy Article 
12(1) (1) and Article 12(2) of the Decision.

- A/13 -
- The output plan of Charbonnages de France for the Lorraine 
coalfield aims at long-term stabilization, since this coal­
field is an important source of supply for coking coal 
for the steel industry. The aid granted for this purpose 
conforms with Article 12(1) (2) and Article 12(3) of the 
Decision.
b) The extent to which direct aids to current production in
the French coal-mining industry are compatible with the proper 
functioning of the common market
Total direct and indirect.aid to current production amounts 
to 565.7 million ECU (33.26 ECU/t; see Annex, Table 2), 2.1% 
down on the 1982 level of 33.99 ECU/t.
As regards the compatibility of French aids with the proper 
functioning of the common market (Article 3(1) of Decision 
No. 528/76, reference is made to the comments in the main 
body of this document (see pp. 1/10 and seq.).
B3) BELGIUM
a) The extent to which direc.t financial aids to current production 
in the Belgian coal-mining industry are compatible with the 
provisions of Articles 7 to 12 of Decision No. 528/76
In 1983, the Belgian Government intends to provide the following 
direct aid :
Legal basis 
under Decision 
No. 528/76MeasuresAmount of aid
Total Per t production
BFr million mi llion ECU BFr ECU
Art. 7(2) Investment aid 566.7 12.6 891.97
Art. 8 Recruitment of 
skilled workers 12.0 0.3 20.05
Art. 9 Aid for producers' 
stocks 146.3 3.3 230.52
Art. 12 Meeting operational 
losses :
Coalfield: Campine 
Southern 
Sub-Total 
Total3,890.6
627.886.5
14.0630
2,85414.00
63.42
4,518.4 100.5 70615.69
5,243.4 116.7 82018.22
./.

- A /14 -
In addition to the above aids, the Belgian Government intends 
to grant a coking coal aid (Decision No. 73/287) of BF 1,530.0 
million (34.0 million ECU) for the current production from 
the Campine coalfield. Total direct Belgian aid amounts to 
BF 6,773.4 million divided between the two coalfields as 
follows :
Campine : BF 6,139.9 = 994 BF/t
Southern : BF 633.5 = 2,880 BF/t
Total : BF 6,773.4 = 1,058 BF/t
Almost all the BFr 566.7 million investment aid will go to 
the Campine coalfield. Investment in this field plays a parti­
cularly important part in Belgium's energy strategy since 
the Campine coalfield has to maintain the supply of coal 
which Belgian industry needs. Belgian investment aid is there­
fore compatible with Article 7(2) of Decision No. 528/76.
Aid for recruiting and training skilled workers (BFr 12.0 
million) has proved necessary in order to attract into Belgian 
coal-mining suitably qualified labour which can operate modern 
plant and machinery property. The aid therefore complies 
with Article 8 of the Decision.
The assessment of the aid required to cover the costs of 
producers' stocks of coke and coal (BFr 146.3 million is 
planned) was based on the assumption that producers' stocks 
will total over 1.1 million tonnes by the end of 1983. Given 
a monthly production figure of some 0.5 million tonnes, the 
volume of pithead stocks qualifying for aid under Article 9 
of Decision No. 528/76 would be 0.6 million tonnes. This 
means that the per-tonne grant in aid is BFr 244. The actual 
costs of maintaining producers' stocks (including depreciation 
and interest) are considerably higher than the sum granted.
The aid therefore conforms with the provisions of Article 9 
of Decision No. 528/76.
./.

- A /15 -
Aid totalling BFr 4,518.4 million to cover operating losses 
is paid to the two Belgian coalfields albeit for different reasons. 
The aid paid to the Campine coalfield will almost make up the 
difference between costs and returns. This almost complete covering 
of the difference is necessary because the coalfield is meant 
to supply Belgian industry with coal and must therefore maintain 
its output. The purpose and amount of aid granted to cover losses 
in respect of the Campine coalfield therefore, satisfy the tests 
of Article 12(1) (2) and Article 12(3).
The Southern coalfield, however, receives aid covering only
part of the difference between costs and revenue. Here the intention
is to ensure that only essentials are maintained and that the
one pit still in operation remains viable, so that serious economic
and social upheaval is avoided. The final closure date for the
last pit has now been fixed for 30 September 1984. From alt
this it can be seen that the aid to cover losses in the Southern
coalfield is compatible with Article 12(1) (1) and Article 12(2).
b) The extent to which direct aids to current production in the 
Belgian coal-mining industry are compatible with the proper 
functioning of the common market
In the Belgian coal-mining industry, aids to current production 
total 162.5 million ECU (25.37 ECU/t) for 1983 (see Annex, Table 2). 
Comparison with the 1982 figure (31.68 ECU/t) shows a reduction 
of almost 20% in 1983.
As regards the compatibility of Belgian aids to current production 
with the proper functioning of the common market, reference 
is made to the comments in the main body of this document (see 
pp. 1/10 and seq.).
./.

- A/16 -
B,) UNITED KINGDOM 4 ------------
a)
 The extent to which direct financial aid to current production 
in the British coal-mining industry is compatible with the provi­
sions of Articles 7 to 12 of Decision No. 528/76
For the 1983/84 coa' marketing year the British Government plans 
the following direct aids to current production :
Legal basis j
lunder Decisionl MeasuresAmount of aid ;
Total Per t production!
No. 528/76 ! £ million million ECU ECU j
Art. 8 !  Aid to attract 
i skilled workers 16.9 28.2 0.14 0.23 i
Art. 12 j Aid to cover 
losses
j  Total415.0 691.7 3.39 5.65 !
431.9 719.9 3.53 5.88 I 
______!
The aid for attracting and keeping skilled workers (£ 16.9 million) 
is intended to offset in part the NCB's costs arising from ratio­
nalization and the transfer of production to the best pits.
This results in outgoings on removals, transport, etc. The aid 
is compatible with Article 8 of Decision No. 528/76.
The aid given to cover losses (£ 415.0 million) will largely 
cover the losses sustained by NCB pits in 1983/84. The aid is 
given to avoid serious economic and social disturbances in those 
coalfields where - in the event of pit closure - there are not 
yet adequate re-employment opportunities for redundant miners 
and to maintain existing production capacity so as to safeguard 
energy supplies. The aid is therefore compatible with Article 12 
of the Decision.

- A/17 -
b) The extent to which aids to current production in the British 
coal-mining industry are compatible with the proper functioning 
of the common market
In the 1983/84 coal marketing year aids to current production 
in the United Kingdom will total 719.9 million ECU (5.88 ECU/t) 
(see Annex, Table 2). In 1983 there will therefore be hardly 
any change from the 1982 planned figures (5.81 ECU/t).
As regards the compatibility of British aids to current production 
with the proper functioning of the common market, reference 
is made to the comments in the main body of this document (see 
pp. 1/10 and seq.).

Table 1
Aid not relating to current production
(million ECU)
Social security measures pursuant to Art. 4 
of Decision No. 528/76Aids tocover
Art.inherited liabilities pursuant to 
5 of Decision No. 528/76
Total Infringements Total Infringements
1982 1983 òf Art. 4 (1983) 1982 1983 of Art. 5 (1983)
Federal Republic of Germany 2,821.4 3,053.7 — 133.1 107.8
\
Belgium 745.3 932.7— — — —
France ■ ■ - ■ ■ - . · • · • ■
United Kingdom 105.11) 106.31) — 60.5 85.8 —
Total for the Community • ■ • ■ - ·' • - • · ■ ■
The United Kingdom has an integrated social security system. The figure shown in this column covers only the 
special miners' pension fund, which exists side-by-side with the general social security system.

Table 2
.  .  .  ,  ...........Ai
d for current production in 1983
A. Aids under Decision 528/76 
1. Infringement of Art. 4 
of Art. 5 
Total
per tonne of productionUnit Fed. Rep. of Germany France United Kingdom Belgium Community
m ECU 
m ECU— ··— — ■·
m ECU 
ECU■ ·
2. Indirect measures
per tonne of productionm ECU 
ECU35.2
0.408.4
0.49 _ _11.8
1.8455.4
0.27
3- Direct measures
Art. 7 
Art. 8 
Art. 9 
Art. 10 
Art. 11 
Art. 12I
[m ECU |  137.0 
ECU !  93.4 
m ECU j  
L i ECU I 63.7 
L i ECU j 
im ECU !!
:
556.4I  12.6
28.2 i  0.3 
| ' ! ; 3
691.7 100.5149.6
121.9
3.3
1,348.6
Total
per tonne of production!m ECU ·  
I  ECU294.1 !  556.4 j 719.9 !  116.7 
3.30 32.72 !  5.88 18.221,687.1
7.18
B. Coking coal aid (Decision !
No. 528/76) L i  ECU 
per tonne of production j ECU624.4
7.02i  II 0.9 I -- 34.0 
i 0.05 I -- i 5.31659.3
2.81
C. Total (A + B) |
Totals ECU 
per tonne of production j  ECU------------------ > ;
95
3.7 !  565.7 j  719.9 162.5 
10.722) j  33.26 j 5.88 j  25.372,401.8 
10.22
1)Planned figures
^  Excluding aid granted under the Third Electricity-from-coal Law (- DM 2,000 million or 9.90 ECU per tonne, see page 1/8).

part t w o
Additional aids granted to the French 
coal industry in 1 9 8 2

- II/1 -
INTRODUCTION
1. The Memorandum on the financial aids granted by the Member States to the 
coal industry in 1982 (C0MC82) 817 final of 10 December 1982) gives details 
of the aid granted by the Belgian/ French, German and United Kingdom Govern­
ments to the coal industry in 1982 notified to the Commission and examines 
these measures to see whether they are compatible with Commission Decision 
No. 528/76/ECSC.
2. As the French Government informed the Commission by letter dated 8 February 
and 8 September 1983, the measures planned for 1982 were not sufficient
to solve the present problems in the French coal industry. The subsidies 
provided for in Article 12 of Decision No. 528/76/ECSC had to be increased.
3. This increase is described and examined below. It is based on the figures 
given in the Memorandum on the aid granted by the Member States to the 
coal industry in 1982.
4. The following exchange rate was used to covert the amounts of aid expressed 
in national currencies into ECU :
1 ECU = FF 6.43
5. Tables 1 and 2 in the Annex to this section contain the revised figures 
for aid granted to the Community coal industry in 1982.
./.

- II/2 -
I. Additional aids granted to the French coal industry in 1982
A. Subsidies which are not related to current production
The French Government has informed the Commission that the figures 
for subsidies within the meaning of Articles 4 and 5 of Decision No. 
528/76/ECSC have been revised as from 1982 and that, consequently, 
the figures for 1982 differ not only in value but also structurally 
from those for 1981 and previous years. The Commission has however 
only received figures for 1982/83 but not details of the new method 
of calculation, so it is not yet able to check whether this new method 
is compatible with the criteria of Articles 4 and 5 of Decision No. 
528/76/ECSC.
This examination is expected to take some time. The subsidies notified 
by the French Government have not been included in this report since 
the 1982/1983 Memorandum is already late and the Commission's authoriza­
tion is not required for subsidies within the meaning of Articles 4 
and 5 of Decision No. 528/76/ECSC (this is required solely for aid 
which exceeds certain limits). The Commission may give its views on 
the new method of calculation, after it has examined it, in the 1984 
Memorandum.
B. Aids to current production
a) Compatibility of the direct aid to current production granted to
the French coal industry with Articles 7 to 12 of Decision No. 528/76/ECSC
As was explained on page A/12 of the 1982 Memorandum (C0MC82) 817 
final of 10 December 1982), the French Government had reported aid
./.

- 11 / 3 -
of FF 3,377.2 million to cover losses under Article 12 of Decision 
No. 528/76/ECSC.
By letter dated 8 September 1983 the French Government requested 
that the amounts of aid be increased as follows :
Cover for the losses 
of the central admi­
nistration of Char­
bonnages de France
Cover for the coal- 
field operating 
losses ______Or
iginal amount 
in million FF __
44
1.0
2,936.2Change in New amount in
million FF million FF
+ 56
+ 197.5497
3,133,7
Total 3,377.2 + 253.5 3,630.7
Coking coal aid 
Total10
3,387.2 + 253.510
3,640.7
The increase in the amount of aid is some FF 250 million, i.e. 7.5% 
of the original figure.
It can be seen from the profit and loss account in the 1982 report 
of Charbonnages de France that total aid is less than total losses, 
i.e. after the aid has been paid Charbonnages de France still has 
a loss of FF 85.2 million in respect of coal production.
Aid to cover the pit operating losses can be broken down as follows 
for the individual coalfields :
1)See page 22 of the financial Annex to the 1982 Report.

- II/4 -
million FF
Nord/Pas de Lorraine Centre-Midi TotalCalais________ __________ ■  ______________________
Or
iginal amount 1,156.9 1,076.2 703.1 2,936.2
Additional amount + 200.3 - 1.1 -1.7 + 197.5
Total 1,357.2 1,075.1 701.4 3,133.7
Aid to cover the interest costs of the central administration 
of Charbonnages de France 497.0
Total aid to cover operating losses 3,630.7
per tonne of production in FF 214.90
The increase in the French aids to cover the pit operating losses 
apply only to the Nord/Pas-de-Calais coalfield. This became necessary 
because the losses in this coalfield rose more steeply during 1982 
than had originally been assumed. According to the information 
available to the Commission in the 1982 report of the Charbonnages 
de France on the actual costs and earnings position, the loss per 
ton in the Nord/Pas-de-Calais coalfield rose considerably more than 
had been estimated. The increase in the aids almost completely covers 
the pit operating losses incurred in 1982; this measure is compatible 
with the provisions of Article 12(1) (1) of the Decision.
b) Compatibility of the direct aid to current production granted to 
the French Coal Industry with the smooth functioning of the common 
market
The summarized figures given in Table 2 of the appendix show that 
for 1982 total aid of 574.4 million ECU (= 33.99 ECU/t), were granted 
to the French coal industry in respect of its current production.
The rate of aid originally envisaged for 1982 was some 30 EUA/t; 
i.e. the revised rate of aid per ton is some 10% higher.

- II/5 -
The revised rate for 1982 is 47.1% higher than the 1981 figure.
The following remarks are called for regarding the compatibility of 
the total French aid for current production with the proper functioning 
of the common market:
1. The trade in coal between France and the other Community countries 
during 1982 did not show any signs of distortion of competition 
between the French coal industry and the coal industries of other 
Member States. France's total purchases of coal from other Community 
countries in 1982 were 1.4 million tonnes less than in the previous 
year; this is primarily attributable to the crisis conditions ob­
taining in the coal industry. French deliveries of coal to other 
Community countries in 1982 were much the same as in 1981.
2. The trend in the list prices for French coal was as follows : (in 
FF/t) :
Steam coal Coking coal
1.10.1981 1.7.1982 1.10.1981 1.7.1982
Lorraine : Nuts 2 503.- 553.- - ”
Nuts 5 486.- 542.- 436.- 565.-
French steam coal was sold at prices which are aligned on a mixed 
Drice obtained from the relatively low prices for steam coal from 
non-member countries and the price for heating oil; this does not 
provide any indirect aid to industrial consumers of coal. The same 
remark applies to the coking coal prices which correspond to the 
guide price for imported coking coal.

- I 1/6 -
3. The observations under Points 1 and 2 Lead to the concLusion that 
the increase in French aid for 1982 is compatible with the smooth 
functioning of the common market.
II. Summary
The following table shows the aids to the French coal industry for 
1982 under Decision 528/76/ECSC in respect of current production:
Legal basis 
under Decision 
No. 528/76Amount of aid
Measure Total amounts per ton of output
million FF million ECU FF ECU
Article 12 Cover for the losses 
of the central ad­
ministration of 
Charbonnages de 
France 497.0 77.3 29.42 4.57
i  Cover for the pit 
;  operating losses 
;  of the coalfields
;  Total3.133.7 487.4 185.48 28.85
3,630.7 564.7 214.90 33.42
In addition to the aid referred to above, coking coal aid of 10 million 
FF (= 1.6 million ECU) and a State subsidy for the research programme 
of Centre d'Etudes et de Recherche des Charbonnages de France (CERCHAR) 
of 52 million FF (= 8.1 million ECU) were paid.

Table 1
Aid not relating to current production
(mi l lion ECU)
‘Social security measures pursuant to Art. 4 
of Decision No. 528/76Aids to cover inherited liabilities pursuant to: 
Article 5 of Decision No. 528/76
Total !Infringements of Total |Infringements of
1981 1982 Art. 4 (1982) 1981 1982 Art. 5 (1982)
Federal Republic of Germany 2,682.4 2,821.4 188.0 133.11 :  1
Belgium 704.3 745.3}- 1 -
France 1,417.82)97.02)
\
United Kingdom 103.51) 105.0 ^ 58.9 60.5 -
Total for the Community 4,908.0•  [ 1  ■ • i  • • j343.9 !!  i
1)The United Kingdom has an integrated social security system. The figure shown in this column covers only the special 
miner's pension fund, which exists side-by-side with the general social security system.
2)The Commission will check later.

Table 2
Aid for current production in 1982
I- - - - - - - - - - - - - - - - - - - - Un
it|Fed. Rep. of Germany France United Kingdom Belgium Community
A. Aids under Decision 528/76 
;  1. Infringement of Article 4
of Article 5m ECU 
m ECUj
. ·_-
Total
per tonne of productionm ECU 
ECU•M• ·:• m
2. Indirect measures
per tonne of productionm ECU 
ECUi  28.8 |  0.308.1
0.4811.0
1.7547.9
0.20
3. Direct measures
Article 7i  Article 8 j  Article 9
Article 10 
Article 11 
Article 12m ECU 
m ECU 
m ECU 
m ECU 
m ECU 
m ECU|
|  224.5 ;  90.5
;  59.1
»-
564.720.0 !  
13.4
6.8
683.011.8
0.5
97.4236.3
111.0
13.4
59.1
6.8
____
To
tal
per tonne of productionm ECU 
ECU1  37471 1 3.95564.7
33.42723.2
5.81109.7
17.441,771.7
7.31
B. Coking coal aid (Decision 73/278) 
per tonne of productionm ECU 
ECU— i- - - - - -- - - - !- -J 3
51.9 '
!  3.72 !~ 6 '  
0.09_  i78.7
12.49432.2
1.78
C. Total (A +  B)
Totals
per tonne of productionm ECU 
ECU_j- - - - -—- - - -1 — -! i
 
|  754.8 2) j| 7.97i> !J_ _ _ _ ___ _ _ _l- -57
4.4
33.99}
723.2 j 
5.81 i199.4
31.68.
■
2,251.8
9.29
Planned figures for the Federal Republic of Germany; effective figures for the United Kingdom and France
Excluding aid granted under the Third Electricity-from-coal Law (= DM 1,700 million respectively 7.40 ECU per tonne).