ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)77
Vol.1977/0031

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)77 final.
Brussels .17March1977*
Proposal fora
COUNCIL REGULATION (EEC)
concerning Community aidforfinancing cyclical stocks
ofhardcoal,cokeandpatentfuel
(submitted totheCouncilbytheCommission )
21 fs3«V.jT&
CCM(77)77final.

XVII/20/77e
EXPLANATORY MEMORANDUM
I.Energy and coal policy objectives
Atitsmeeting on17December 1974 onCommunity energy policy objectives
for1985\ "theCouncil decided thattheCommunity 'scoalproduction should
bemaintained atitsthen level (approximately 25Omillion tee)under satis­
factory economio conditions .
Inorder toaohieve this objective ,measures will have tobetaken toensure
continuity ofproduction andtofacilitate thesmooth implementation ofin­
vestment plans which will only payoff inthelong term andofallcorrespon­
ding internal measures byundertakings (manpower policy ,rationalization ,etc).
2InJanuary 1976 theCommission proposed anumber ofmeasures totheCouncil
inrespect ofcoal }these concerned aidforthestockpiling ofcoal andthe
sale ofcoking coal tothesteel industry andofsteam coal topower stations .
Aidforcoal stocks plays amajor role intheCommunity 'senergy policy strategy .
Because ofthestructural conditions ,itisdifficult toadapt coal production
toshort-term market fluctuations .Itisessential tobuild uppithead stocks
toacertain level toenable themines tooffset fluctuations inproduction
caused bytechnical factors .However ,very unfavourable economic circumstances
mayinorease these stocks toanexceptionally high level ,asisthecase at
present }financing such alevel ofstocks involves afinancial burden exceeding
thenormal economic conditions ofcoal production ^Finally ,theburden ofthis
expenditure could lead tothepremature closure ofproduction capacities ifthe
undertakings donothave sufficient financial resources tomaintain stocks
until themarkg picks upagain .
OJNo153 ,9July 1975 »Page4
2Seedocument COM (76)20of16January 1976 ontheimplementation ofthe
energy policy guidelines drawn upbytheEuropean Council atitsmeeting
inRome on1and 2December 1975 «
9

This would however jeopardize theaimofmaintaining Community production
atits1973/74level *Moreover ,only production capacities actually ope­
rating cancontribute tothesecurity ofsupply .
Moreover ,itshould benoted that pithead stocks areauseful buffer en­
suring secure energy supplies toCommunity consumers regardless ofany
fluctuation indemand .Inthe last 25years large coal stocks have played
avery beneficial part insatisfying energy demand infour periods of
prosperous economio activity .
Inview ofthelong andshort-term factors involved insecurity ofsupplies
forallcoal consumers ,theinterests oftheCommunity require that aCommunity
solution befound tothis problem .
The problems involved insetting upanew Community system ofaid tofinance
part ofthe storage costs
Attheendof1974 thestocks held byCommunity producers ofcoal andcoke
totalled some 16million tonnes ,orabout 6.2$ ofnormal production for1974 *
2Inthespace oftwoyears ,i.e. bytheendof1976 ,thecorresponding stocks
hadrisen tosome 55million tonnes ofcoal andcoke or22.3$ ofproduction for
1976 .Inrelative terms ,therefore ,stocks have reached their highest level in
thepostwar period .Capital ofsome 2.5thousand million EUA istied upinthe
stocks .Theannual storage costs amount between seven andeight EUApertonne of
stocks putdown ,which means that undertakings have tospend about 400million EUA
onstocks each year .These charges must beseen inthelight ofthegeneral finan­
cial position ofthecoal undertakings .In1976 theGovernments ofthefour coal-
produoing Member States paid thecoal industry totalling some 600million EUAin
order tokeep theundertakings economically viable .These aids arethebare minimum
because even with thesubsidies theundertakings still make financial losses in
coal production .
Actual production wasbelow normal because ofastrike
2Including about 5million tonnes ofcoal stored byproducers onconsumers'
premises

Forfinancial andpractical reasons ,itwould beneither possible norex­
pedient tofinance these costs completely from Community resources .
Asregards thelevel ofstocks ,itistobeassumed thattheundertakings *
must inanycase keep acertain level of"working "stocks andshould them­
selves solve some ofthecyclical problems ofadjusting supply todemand *
Experience hasshown that therequisite quantity isabout onemonth 'sproduc­
tion .Taking theCommunity total asayardstick ,this would amount toapproxi -
2mately 20million tonnes •Noaidwould therefore begranted forthis volume
ofstocks .
Itisabove the20million tonne level that producers arereally faced with
cyclical adjustment problems .IntheCommission 'sopinion ,theCommunity
system ofaidshould therefore come into play asfrom this level )care should
also betaken ,however ,toensure that thesubsidized stocks donot exceed acertain
limit .Once stocks have reached this upper limit ,theundertakings must decide
whether andtowhat extent production should becutback inline with demand .In
thelight ofthelast twenty years' experience itwould seem appropriate toput
theupper limit -measured against total Community production -ataround 40
million tonnes .Consequently ,only part (max.20million tonnes )ofthetotal
stocks putdown would beinoluded intheCommunity aidsystem .
Theestimated annual cost toundertakings ofkeeping 20million tonnes of
stocks is150million EUA .Thesumof5°million EUA seems appropriate as
Community aid ,i.e. ,one-third ofthecosts would becovered bythesubsidy .
With 20million tonnes and 50million EUAtherate ofaidwould be2.50 EUA
pertonne peryear .Under theCommunity aidsystem proposed inthedraft
Decision ,this average amount would beuniformly applied toallrecipients .
^Reference willbemadeonlytocoalproducers below .Itshould ,however ,
bepointed outthat theDecision also includes independent coke and
briquette producers intheaidsystem inorder totake into account the
question ofsteady andsecure coal supplies .
2Theannual Community production lies between 240and250million tonnes .

TheCommission hascarefully studiedthepossibility ofusingdifferent
subsidyratesvariedaccording tothevalueofthecoalstocked,instead
ofauniformsubsidypertonne.Thevaluepertonneofcoalstoredandthe
resultant costs(e.g.interest,depreciation ,etc.)varyfromoneMember
Statetoanother *
Suchasystemwould,however,notbefeasibleforthefollowing reasons :
(1)Detailedstatistical information wouldhavetobeobtained fromall
thoseeligibleforaidabouttheproduction valuepertonne,therate
ofinterestforbankloansusedtofinancethestocks,rateofdepre­
ciation,thecostsofstockholding andstocklifting etc.
(2)Theinformation thuscollected wouldhavetoberegularly reviewed
sincethevaluespertonne,interestrates,etc.areconstantly
changing.
(3)Thedifferences intheproduction valueofthecoalextracted in
theindividual MemberStatesarepartlyoffsetbythedifferences
ininterestrates)thismeansthatthereareonlyslightdifferen­
cesbetweentheannualstoragecostspertonneinthevarious Member
States.
(4)Theadministrative costswouldbedisportionatelyhighinrelation
totheadvantage tobegainedfromamoreequitable allocation ofaid.
ForthesereasonstheCommission prefersauniformsubsidyof2.50EUA
pertonne.Thecalculations contained intables1-4whichareappended
willserveasexample.TherelevantArticles oftheappendeddraftre­
gulationtowhichtheyreferaregivenatthetopofeachtable.

-5-
A,
Inthelightofthepointsofviewexpressed above:
-thatstocksincrease energysupplysecurityinperiodsofrisingdemand,
-thatthefinancial burdensoflargestocksmustnotendangerthestability
ofCommunity production ,whichfavourssupplysecurity ,
theCommission isproposing afinancial arrangement inlinewiththeinterests
oftheCommunity .Thecorresponding amount wouldhavetobemadeavailable
fromtheCommunity budget,pursuanttoArticle235oftheEECTreaty.Therelevant
entertainments betweentheCommission andtheParliament havealreadybeen
conducted.Atitssittingon16December 1976Parliament allocated atokenentry
toitem322ofthe1977budget.Astheproposed Community aidisamultiannual
operation ,appropriations forcommitment wouldalsobeentailed
III.Generalprinciples oftheCommunity aidsystem
ThedraftRegulation treatsindependent cokeandbriquette producers aseligible
foraidinaddition toCommunity coalproducers .IftheyuseCommunity coalthe
independent cokeandbriquette producers arejustasinvolved intheconversion
ofcoalastheooalproducers withtheircolliery coke-ovens andbriquetting
plants }theyenoounter thesamemarketing difficulties andtheirstockscontribute
towardsasteadyandsecurecokeandbriquette supply.Forthesereasons,andin
ordertoavoiddiscrimination ,theyhavebeenincluded intheaidsystem.
Sincesuchasystemhasneverbeforebeenintroduced atCommunity level,there
isnoexperience inthisfield.Inviewoftheveryhighlevelofstocksat
presentthesystemshouldbeintroduced assoonaspossibleforaperiodofnot
morethanthreeyears.
Theotherprinciples concerning thecalculation ofeligiblequantities ,the
arrangements forpaymentsintoandoutofthecommonFund,etc.arealltobe
foundinthedraftRegulation .

Proposalfora
COUNCILREGULATION H,'.
concerning Communityaidforfinancingcyclicalstocks
ofhardcoal-cokeandpatentfuel
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andparticularArticle235thereof;
» »
HavingregardtotheproposalfromtheCommission;
HavingregardtotheOpinionoftheEuropeanParliament;
HavingregardtotheOpinionoftheEconomicandSocialCommittee;
Whereastheestablishment ofacommonenergypolicyisoneoftheobjectives
whichtheCommunities havesetthemselves andwhereasitisfortheCommission
toproposethemeasurestobetakentothatend;
WhereastheCoucilresolutionof17thDecember1974,decidedthatthepattern
ofenergyconsumption shouldbealteredbyprogressively increasingtheuseof
reliableenergysourcesandthatCommunitycoalproduction shouldbemain­
tainedatalevelof180milliontoeundersatisfactory economicconditions .
WhereastheCouncilresolution of13thFebruary1975,decided,withregard
tothecoalminingindustry,thatmeasureswouldbenecessarytocompensate
theeffectoffluctuations indemandandtoovercomesupplydifficulties .
Whereascoalproductionisnecessarilyinflexible becauseofthegeological
andtechnicalconditions,theCommunitycoalindustryhastobuildupstocks
ofhardcoal,cokeandpatentfuelwhenacyclicalfallindemandoccursand
whereasthisentailsexpenditure andtiesupcapitalsothatcurrentinvestment
programmsforproductioninstallations andrationalization arejeopardized
andthatcompetitivityisreduced.
*

Whereasthesenegative elements influence thedevelopment ofproduction
andsupplyandare,therefore,contrarytothelong-term requirement of
allconsumers intheCommunity andwhereas,intheshort-term view,pithead
stocksareasuitable formofbufferstockstosmoothoutdivergent trends
production anddisposals andhencetohelptoguarantee energysupplies to
allconsumers intheCommunity regardless ofanyfluctuations indemand.
WhereastheTreatydoesnotprovidethepowersnecessary fortheintroducti
ofCommunity financial measures toimprovesupply.
HASADOPTED THISREGULATION
SECTION I
Generalobjectives
Article 1
TheCommission isauthorized ,subjecttotheconditions setoutbelow,to
granttothebeneficiaries listedunderarticle3.1,aidstocoverpartof
thecostsborneintheholdingofstocksofhardcoal,hardcokeand
patentfuel.
»
SECTION II
Criteria forthegrantofaid
Article 2
Aidshallbegrantedsubjecttotheconditions detailed inarticles 3to7.
Article 3
(1)Aidshall .begrantedto;
(a)thefollowing undertakings 1ftheirplaceofproduction isinthe
•* •
Community ;

(1)coalundertakings
(ii)independant cokingpl-ants
(iii)independant producers ofpatentfuel
I
(b)Organizations oftheundertakings coveredunderpointCa)ifthey
havecorporate personality andareresponsible forstockholding ;
(c)theGovernments oftheMemberStates ,iftheybearallorpartof
thecostsofbufferstocksdesignedtoevenoutcyclicalfluctua­
tionsinsupplyanddemand.
(2)Wheretheundertakings withorganizations ofundertakings OPtheGovern­
mentoftheMemberStateinquestionjointlybearthecostsof,or
jointlymanagecertainstocks,theundertaking shallbethebeneficiary .
(3)aidshallonlybegranted uponrequest.
Article 4
(1)AidshallbegrantedforstocksofCommunity hardcoalandofcoke
andpatentfuelproduced fromCommunity hardcoal.
(2)Aidshallbegrantedonlyonthebasisofcoalequivalence ;forthat
reasonstocksofcokeandpatentfuelproduced fromCommunity hard
coalshallbeconverted intocoalequivalent byapplying a,factorof
1.33forcokeand1forpatentfuel.
Article 5
Thefollowing shallrankasstocks:
(1)Hardcoalheld:
(a)Byproducers ofhardcoal:
-Totalproducer'sstocks(including quantities intowers,washeries,
wagonsetc.,andIncluding low-grade coal);

-Stocksheldbyconsumers inexcessofanormalstocklevel;these
shallbeaddedtothehardcoalproducer'sstocksifsuchstocks
belongtothehardcoalproducers oraredirectlyorindirectly
heldorfinanced bythem.
Totalstocksshallbeexpressed intonnefortonne(t/t).
<b)Byindependent cokingplantsandindependent patentfuelproducers :
.stocksofCommunity coal;
(c)BytheGovernments oftheMemberStates;stocksofCommunity coal..
Stocksmanagedjointly byGovernments andundertaking shallbeascribes ,
tothetotalstocksoftheundertakings under(a)or(b)ofthisar­
ticle;
(2)Hardcokeandpatentfuel
Onlystocksofhardcokeandofpatentfuelproduced fromCommunity coal.
Todetermine thesequantities ,aquantity corresponding totheshareof
non-Community coalinthepreceding year'stotalcoalinputshallbededuc­
tedfromtheactualtotalstocksofhardcoalorpatentfuelinthecur­
rentaidyear.
Theprinciples setoutforhardcoalinparagraph 1of
.thisarticleshallapplytocokeandpatentfuelmutatismutandis .
(3)Forthepurposeoftheapplication oftheprovisions ofarticle 6,the
stocksdetermined under 1and2ofthisarticleshallbeconsolidated
intoatotalquantity ofcoalforeachundertaking .

Article 6
(1)Aidshallbegrantedforstockstotalling nomorethan20million
tonnesofcoal<t/t)fortheCommunity asawholebetween alower
andanupperlimit(eligible range).Stocksbelowthelowerorabove
theupperlimitshallnotqualifyforaid.
(2)Theselimitsaredefinedasfollows :
-Thelowerlimitshallbeuniformforallbeneficiaries andsetat
one-twelfth ofannualproduction (coalproducers )orone-twelfth
ofannualinputofCommunity coal(independent cokingplantsand
patentfuelproducers ).
Annualproduction andannualinputofCommunity coalshallbe
measured (t/t)intheyearpreceding thecurrentaidyear.
-Theupperlimitshallbeobtained byadding,fortheCommunity
asawhole20milliontonnesofcoaltothelowerlimit.Thestocks
•calculated inthiswayshallberelatedtothesumofCommunity
production andinputofCommunity coal(independent cokingplants
•andpatentfuelproducers )intheyearpreceding thecurrentaid
year;theresulting percentage fortheCommunity shallbeapplied
uniformly toallundertakings .TheCommission shallmakethecal­
culations atthebeginning ofeachyearandshallcommunicate the
resultstotheMemberStategovernment andtoallthebeneficiaries .
Article 7
(1)Theaidpertonneisuniformforeachbeneficiary andamountsto2,50
EUAperyear(Rateofaidpertonne).

(2)Therateofaidpertonnemaynotexceedtheactualcostof
holdingstocks.Inthisconnection therateofaidpertonnemay
beproportionally reducedshouldtheneedarise.
*
(3)Theamountsofaidactually payabletothebeneficiaries shallbe
obtained byapplyingtheratepertonnelaiddowninparagraph 1
ofthisarticleexclusively totheeligiblequantities ofstocks
defined inarticle 6.
(A)Aidshallbepaidquarterly andinarrearsforone-quarter ofthe
annualamountofaidpertonneineachcaseandshallrelatetothe
eligible stockson31March,30June,30September and31December
respectively (thereference datesforstocks).
IfthelastdayofthequarterfallsonaSundayorapublicholiday
thelastworkingdaybeforethatdayshallrankasthereference date
forstocks.
(5)Thepaymentofaidshallbesubjecttothepresentation ofall
required supporting documents andinformation .

SECTIONIII
Community financing
Article 8
Thefundsnecessary forthegrantofaidshallbeprovided inthe
budgetoftheCommunity .
*
SECTION IV
General andfinalprovisions
Article 9
Ifthesumofnational aidsforstockholding -grantedonaper-ton
basisunderarticle 9ofDecision 528/76/ECSC-andaidspertonne
grantedunderthepresentregulation shouldexceedtheactualper-tonne
costsofstockholding ,thentheaidonthebaseofthepresentregulation
shallbeproportionally reduced.
Article 10
«
(1)Inanemergency,andotherwise attheendofeachcalendar year,the
Commission isauthorized tomodifythefollowing bymeansofaregulation
-theratepertonneofaidforstocks,
-theupperorlowerlimitsforthequantities ofstocks,
(2)TheCommission shallrevokeaidundulygrantedor,particularly ,
wheregrantedasaresultofinaccurate declarations onthepartof
theapplicants .

•-8•-
Article 11
IfattherequestofaMemberStateoronitsowninitiative theCommission
findsthat:
(1)theapplication ofthisregulation islikelytogiverisetoserious
disturbances inthecommonmarketforcoalordifficulties whichmay
resultinthedeterioration ofthegeneralcoalsupplysituation,or
that
(2)appreciable changesaretakingplaceintheconditions orvolumeof
intra-Community tradeonthemarketforcoalbecausetheeconomic condi­
tionswhichprompted theadoption ofthisresolution havechanged,
theCommission maysuspendapplication ofthisregulation whollyorpartial'.
TheCommission shallreportthemattertotheEuropean Parliament andthe
Councilforthwith .
Article 12
TheCommission shallreporttotheEuropean Parliament andtheCouncilregu­
larlyontheapplication ofthisregulation .
Article 13
theCouncil,theCommission cantakeallthemeasures
application ofthisregulation .
Article 14
Thisregulation shallenterintoforceon1January1978.Itshallcease
tobeoperative after31December 1980.
*
* *
Thisregulation shallbebindinginitsentirely anddirectlyapplicable
inallMemberStates. '
DoneatBrusselsAfterconsulting
requiredforthe

XVi:/20/77
Estimatedstocksen31Karoh1977 Table1
(totalstookaunder
Article5) ('000t)
I 1FederalRep.
ofCornanyFranco BelgiuaBetheiv.
landaUnited
RinrdomIrelandLuxem­
bourgDenaarkCoaau–
nity
(A)Totalatcckcheldbycoalprodacera
1.Hardcoal(t/t) 12.200 5.300 1.300 12.900 7 ji.eor
IPlus I£Excessively largeatookaboldbyoonauaare
Government atocka4.500 4.500
ITotalCOŒjnuni"tjcoal 12.300 5.300 1.300 17.400 7 36.307
I2.Hard-coal cokaIl(a)Tctalcoït»stock*(t/t),lb)Ofwhich ■cokefronCoonunlty coal11.000
11.C001.500
1.500 L::1.800
1.800::lL_14.300
14.ÎCO
|(c)Conversionintocoalequivaleat(x1*33)TotalCcnmunitr coal(l♦?(o))(irtiolos(i)}14.630 1.993r= - I2.394 '■ ■
26.930 7.295 ]1.300rr–10.794 7 - -
I(l)Tctalctcckoheldbyindependentcokingplanta
I1»Totalhard-coalstocka(t/t)
ιBO 260 ι100 400 840
I2.Totalcokaatocka(t/t) 50 900 25 500 1.475
I1.Conversion oftotalcokeatookaintoooaleauivalent <6I1.197 32 665 L_= ι.ΐίΐ I
(*1.33)i
i
I4.Totalcoal(l♦3) 146 I1.457 133 I1-065 != 2.eoi 1
I5.OfwhichIComnunitTcoal' Γ3τ~ 363 291.065r: I
(C)Totalstcckaheldbyindependent briguotte producers
1.Totalbard-coal stocks(t/t) 40 0 20 60
I2.Totalhricraattastocka(t/t) 50 0 15 «2_J
3.Totalcoal(1+2) 90 0 IΓ^ΊΓΊ rn m 1
I4.OfwhichtCosuaunitycoal^ 55 0 16n:rn .-JnJ
I(D)Governmentstocks 1
(Tckenentry)
(E)Totalforeachcountry(A«3♦♦C«4♦9)>·. ι ii_l
26.930 7.350 1.337 399 2920.859 T 56.911
*IthasbeenacsuaedthatonlyCommunitycoalwaausedInthomanufacture ofooke*
?Proportioncalculated byreferencetothopercentages inTable2,b4»#
*Proportion ealoulated byreferenoetothepercentage *i»Table19©4#

Tabla2
Calculation ofqyintltles underArticle 6
(Estiaates,llluotratlve calculation ) (*000t|t/t)
Fed.Rop.
ofGenaa-
-J5JCFronçaBolgiua iItalyKothor-
landsUr.itcd
KinrUoo IrelandLuxem­
bourg DcrunarkIConynu–1
nity
(A)Basisquantities
(a)Produotion 1976(t/t)
(b)Hard-coal inputoftheindepen­
dentcokingplant*1976(t/t)
b.Community coal
fegKonCoaaunltyeoal
bjTotal
b,Proportion «fCoaaunlty4oo»l(*)
(o)Hard-coal inputoftheindepen­
dentbriquette producers 1976(tv
0^Coaaunltyeoal
0jHon-Coaaunity eoal
Total
o.Proportion ofCommunity4eoal(*)
(d)Totalbasisquantity (A♦97.000 22.5007.200 125.000 50 251.750
150
450750
2.100170
6001.200 2.270
3.150
~ΞΔ6002.£50 770 1.200lz_5.420
25,0 !26,3 22,1 100,0 41,9
I
t)
m 400
25001
40
50440
300
I650I°I90 740
61,5 44,4 59,5
)97.000 22.9CO 7.350 .790 170 126.200 50 254.460
(B)Calculatlon ofctockafortha
Community finxncir ;;
arrancgnonts in1977
1.Hard-coal producers
(a)Loverliait
(b)Maximumeligiblestocks
(o-a)
(0)Opparliait2
2.Indépendant coklnrplanta
(a)lowarliait^
(b)Maximumeligiblestocks
(c-a)
(o)Upperliait
3*Indépendant briquette producer»
(a)Loverliait^
(b)Kaxiauaeligiblestooks
(o-a)
(e)Upperliait
4«Totalcalculation (14243)
(a)Loverliait
(b)Kaxiauaeligiblestoeks
(e)UpperlimitΒ.0Θ3
7.«4
15.7071.875
1.769
3.644£00
566'
1.16610.416
9.825
20.2414
4
Im20.978
19.788
40.766
12
12
24©3
58
12114
13
27I
100
95
195m169
178
367
m
m33
33
<60 4
1
537
34
71
6.06}
7.624
15.7071.908
1.802
3.710612
578
1.19067
59
12614
13
27IO.516
9-920
20.4364
4
8I")
21.204
20.000
41.204
(toe-twelfth of1976production (seeA.a«)«
*Ifceupperlimitforallbeneficiaries is16*19336ofthebasisquantity(forcalculation seefootnote4)*
^One-twelfthoftheInputofCommunitycoalin1976(seeA*b^andA«e^).
^Ttaelowerliaitof21204000tonnesisincreasedbytheaaziauaeligiblequantityof20ailliontonnesyieldingatotal
quantityof41204000tonnesastheupperlimitforthefinanoing arrangements ,Relatingtheupperliaittothebasis
quantity (412040001254460000)yieldearateof16.1935&-

Tafc>\.es
Calculation ofthemaximumaidpayments
underArticle6and7
(Estimates,illustrative calculation )
Fed.Rep.
ofGerm.FranceBelgiumItalyNether­
lands^United
KingdomIrelandLuxem-
burqDenmarkCommu-
nity
A.Maximumeligiblestocks
underTable2in1977
('000t;t/t)
1.Hard-coalproducers
"2.Independent cokingplants
3.Independent briquette
producers
4.MemberGovernments
5.Total7.6241.769
33566
1258
*1139.825
954
I
I
Imm19.788
178
34
7.6241.802 578 59 13
i9.920I
4 i 20.000
B.Rateofaidpertonne
(u.a.)
1.Hard-coalproducers
2.Independent cokingplants
3.Independent briquette
producers
4.MemberGovernments2,502,50
.2,502,50
2,50
I
_I2,50
2,502,502,50
2,502,50
*
ι2,50
2,50
2,50
C.Maximumaidpayments1977
to:('000u.a.AxB)
1.Hard-coalproducers
2.Independent cokingplants
3.Independent briquette
producers
4.MemberGovernments
5.Total19.060 4.422
831.415
30145
33224.562
2381
10*
49.469
445
86
19.060 4.5051.445 148 3224.800 10_lJ50.000I

Table4
Actualaidpayments underArticle 7(3)
(UnliketheTableforArtlele 7(4)thisTable
depictsnotquarterly payments,byundertaking ,
butyearlypayments,bycountry)
red.Rep.
ofGern.lFrance Belgium ItalyNether­
landsUnited I
Kingdom IIrelandCommu­
nity
A.Hard-coal producers I Ί
1,Upperlimitofstocks('000t)
(Table?.b.1.c.) 15.707 3.644 1.166 20.241 B40.766 I
2.Actualstocks('000tHTable 1.4.5) 26.930 7.295 1.300 19.794 ?55.326
5,eligiblequantity ('COOt> 7.624 1.769 566 9.378 319.340
4.lut»ofaïspertonneofcoat(u.a.) 2,502,50 2,50 L-2,50I2'5°I2,50L5.ActualyaerlyAidpayments ('000u.a.)
(3x4)19.060 4.422 1.415 23.445 848.350
Independent cokingplants
1.UpperUnitofstocks <'000t)
(Table22.B.2.C.) 24 121 27 195 367
2.Actualstocks('000tHTable 1.B.5) 57 383 29 1.065 1.514
Eligiblequantities ('000t) I 12 58 13 95 178
4.Rateofaidpertonne(u.a.) I 2,50 2,50 2,50 2,50
5*Actualyearlyaidpayments ('000u.a.)
(3x4)30 145 32 238 445
h7Independent briquetteproducers I
1.Upperliaitofstocks('000t) I
(Table2.B.3.C. ) 66 S M
12*Actualstocks(9000tHTable1.C.4)I m $5 » 16 .71
3.Eligiblequantity('000t) I 22 1 23
4,Kateofaidpertonne(u.a.) I:2,50* 2,5°* 2,50
L5*Actualyearlyaidpayments ('000u.a.)
(3xA) •55 3 58
ΚRenberGovernments IL(tokenentry) I
ΕTotalactualyearlyaidpayments
('000u.a.)(A.5♦8.5♦C.5)19.060 4.477 1.445 148 3223.683 848.853
rForcomparison : I
Nulaiumpossiblepayaient*('000u.a.)I
(Table3.C.) I19.0604.505I1.445 148 3224.800 1050.000
Wheretheactualstocksareabovetheupperlimitthenas1.uaeligiblequantities ofstocksunderTable2.B,l.b,2.b,and
3.bapply.Wheretheactualstocksarebelowthelowerllaitonlythestocksabovethelowerlimitqualifyforaid(see
Table2.B,l.a,2.a,and3.a>;
»

FINANCIAL RECORD SHEETCOM(77)77
PartOne:Assistance appropriations
(1)Budgetline:322•
(2)WordingofBudgetline:"MeasuresforCommunity financing of
stocksofcoal,cokeandcoalbriquettes duetomarketcircumstances ."
(3)Legalbasis:Article235EEC
(4)4*1Description .Non-repayable aidstoreduceheavyexpenseto
collieries inconsequence ofproducer stocksofcoal,coke
andbriquettes .Aidaccorded onlyinrespectoftonnages
ofproducer stocksbetweenalowerandanupperlimit:costs
oftonnages outsidethoselimitspayablebycollieries .
4*2Purp6ses.Toreduceexpensetocollieries ,covering roughly
33$ofit,asameansofenablingthemtoattainobjective
ofstabilizing production by1985Iinaccordance withlong-term
guidelines .
4.3Justification .Willmakeforsecureenergysupply,particularly
important asconcerns supplyofpowerstations andsteelindustry.
(5)Financial implications ofscheme
5.0.1Expenditure .Annualamountofaidiscalculated at50million
EUA:couldworkoutloweraccording toactualmovement of
producer stocks.
Aidpayablequarterly ,atendofquarter,tocollieries
qualifying forit.

5.0.2 Mode ofcalculation .Total cost tocollieries ofholding
stocks isapproximately 7«5EUApertonne p.a.onCommunity
average :cost actually varies from colliery tocolliery .
Aid is2.5EUApertonne p.a.
Aidpertonne ispayable foramaximum of20million tonnes
ofstocks forCommunity overall .Tonnages aidable arebetween
alower andanupper limit ,tonnages outside these limits not
qualifying .When producer stocks reach upper limit ,50million
EUAwould have tobepaid outinrespect ofthe20million tonnes .
Thestocks being due tomarket circumstances andthetonnages
aidable being between alower andanupper limit ,itishard
toestimate theamount ofaidtobepaid annually ,which should
notexceed 50million EUA .
(6)Monitoring arrangements .Usual checks byCommission inaccordance with
Financial Regulation inforce .
Part Two :Further particulars fornewscheme
(7)Total cost calculated at150million EUA :probable duration three
years at50million EUA p.a.
(8)Chargeable toCommission Budget .Ifproposed Regulation isdefinitively
made operative byCouncil in1977 9payments would start from 1January 197
(9)Management offund byCommission departments requires engagement ofanew
Grade Bofficial .