COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93)116 final 
Brussels, 29 March 1993 
COMMISSION RPPnoT 
P" ^e Application of tho Community p,fi^T for st^ A,- tn fh 
Coal inm,fttrY fr |gjk -^-^ «JM. 
<*A-
COMMISSION REPORT 
on the Application of the Community Rules for State Aid to the 
Coal Industry In 1991 
1• Introduct ion 
Article 14 of Commission Decision No 2064/86/ECSC of 30 June 19861 
requires the Commission to report each year to the Council, the 
European Parliament and the ECSC Consultative Committee on the 
application of the Community rules for State aid to the coal industry. 
This report examines the financial aid granted by Belgium, France, 
Germany, Portugal and Spain to their coal industries in 1991 and by the 
United Kingdom during the financial year running from 1 April 1991 to 
31 March 1992. 
All Member States intending to grant aid to coal undertakings in 1991 
were obliged to present to the Commission by 1 October 1990 
(1 January 1991 for the United Kingdom) information on all the measures 
they intended to take to support the coal industry directly or 
indirectly in 1991. 
Such measures may be considered to be compatible with the proper 
functioning of the common market only if they help to achieve at least 
one of the fol'owing objectives: 
improved competitiveness in the coal industry, helping to ensure 
greater security of supply; 
creation of new capacities as long as they are economically viable; 
solution of social and regional problems related to changes in the 
coal industry. 
1 OJ No L 177, 1.7.1986, page 1 and following. 
- 2 -
In accordance with Article 9 of the Decision, the Commission was 
notified of the measures planned for 1991 by: 
- the German Government in letters dated 4 December 1990 and 
16 May 1991; 
- the Belgian Government in a letter dated 2 October 1990; 
- the Spanish Government in letters dated 8 October 1990 and 
16 November 1992; 
- the French Government In a letter dated 4 January 1991. 
- the Portuguese Government in a letter dated 10 September 1991. 
The Commission gave a ruling on these measures in Decisions adopted on 
17 July 19912 and 25 November 19923 for Germany, 17 December 1990 for 
Belgium,4 29 April 1991 for France,5 17 December 19906 and 
23 December 1992 for Spain,7 and 11 December 1991 for Portugal.8 
The financial aid referred to in this document is the aid for 1991 
authorized by the Commission by 31 December 1992. The final figures 
for 1991 will be included in the 1992 Report. 
2. Coal Industry and Market 
2.1. Production 
In 1991 coal production in the Community amounted to 193 million 
tonnes, i.e. a reduction of 1.7% compared with 1990. This drop is due 
to reductions in Germany (3.8 million tonnes or 5%), Spain (1.2 million 
tonnes or 6.2%), Belgium (0.4 million tonnes or 38.6%) and France 
(0.4 million tonnes or 3.4%). However, production increased slightly 
in the United Kingdom (by 2 million tonnes or 2.3%), despite the 
closure of several pits, reflecting productivity improvements. 
In 1992 falling production levels in almost all countries should lead 
to a Community production level of around 186.4 million tonnes, i.e. 
6.9 million tonnes less than in 1991. The largest reductions are 
likely to be in the United Kingdom (6.8 million tonnes), France 
(0.4 million tonnes), Belgium (0.3 million tonnes) and Germany 
(0.1 million tonnes). Production is expected to increase in Spain (by 
0.8 million tonnes), however. 
2 0J No L 278, 5.10.1991. 
3 0J No L 21, 29.1.1993. 
4 OJ No L 226, 14.8.1991. 
5 0J No L 193, 17.7.1991. 
6 OJ No L 324, 16.11.1991 
7 0J No L 57, 10.3.1993. 
8 OJ No L 92, 31.1.1992. 
- 3 -
1988 1989 Table 1 
Coal Production 
1990 1991 1992 2 ('000 tonnes) 
(t - t) 
Variation between 
1992/1991 (X) 
Germany 
France 
Belgium 
UK 
Ireland 
Spain 1 
Portugal 
Italy 79 319 
12 142 
2 487 
101 379 
52 
19 001 
237 
49 77 451 
11 470 
1 893 
98 286 
43 
19 176 
258 
74 76 553 
10 487 
1 036 
89 301 
45 
19 440 
251 
58 72 744 
10 127 
636 
91 340 
6 
18 244 
232 
20 72 600 
9 700 
370 
84 500 
6 
19 000 
270 0.2 
4.2 
41.8 
7.5 
4. 
16. 
Community 214 666 208 651 197 201 193 349 186 446 - 3.6 
1 Including "black lignite". 
2 Estimate. 
2.2. Employment 
The continuation of the measures to rationalize and reduce activity in 
the coal industry in most coal-producing countries led to a further 
drop in employment figures. At the end of 1991, 166 000 underground 
workers, i.e. 16 200 fewer than in 1990, were employed in the coal 
industry. The largest drop in absolute terms was in the United Kingdom 
(8 000), followed by Germany (4 800), Spain (2 000), France (1 200) and 
Belgium (300). 
Table 2 
Underground staff employed at the End of the Year ('000) 
Variation 
1988 1989 1990 19911 1991/1990 (X) 
Germany 
France 
Belgium 
UK 
Spain 
Portugal 
Community 
1 Provisional 96.8 
12.9 
5.3 
72.0 
36.1 
0.8 
224.2 92.1 
10.7 
3.4 
56.0 
35.0 
0.6 
198.1 85.5 
8.9 
1.9 
50.0 
35.0 
0.6 
182.2 80.7 
7.8 
1.6 
42.0 
33.0 
0.6 
166.0 - 5.6 
- 12.3 
- 15.8 
- 16.0 
- 5.7 
- 8.9 
- 4 -
2.3. Coal Demand and Trade 
Internal deliveries of coal increased slightly (by 0.8 million tonnes 
or 0.3%) in 1991 compared with 1990. 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
PortugaI 
UK 1988 
14.0 
11.0 
81.1 
1.4 
27.8 
26.7 
3.2 
20.3 
0.2 
13.1 
3.2 
113.3 Table 3 
Internal Deliveries of Coal 
1989 
14.3 
10.6 
78.4 
1.3 
30.2 
29.3 
3.4 
20.8 
0.2 
12.9 
3.7 
108.0 1990 
14. 
10. 
80. 
1 
30. 
30.4 
3.2 
21.1 
0.2 
14.9 
5.0 
107.9 1991' 
14.9 
13.2 
79.6 
1.5 
30.5 
30.4 
3.1 
18.9 
0.3 
14.0 
4.6 
109.5 (million tonnes) 
(t » t) 
19922 1992/91 (X) 
15.0 
13.5 
79.2 
1.6 
30.7 
29.9 
2.9 
21.2 
0.3 
13.7 
4.5 
106.4 0.6 
2.3 
• 0.4 
6.7 
0.6 
• 1.8 
• 4.6 
12.1 
2.2 
2.0 
2.8 
Community 315.3 313.2 319.5 320.3 318.8 - 0.5 
1 Provisional. 
2 Forecast. 
Deliveries to public utilities and mine power stations increased by 
8.0 million tonnes or 3.9%, while deliveries to coking plants fell by 
6.6 million tonnes or 9.8% as a result of the slowdown in steelmaking. 
The same applies to deliveries to most other main sectors, except those 
to "other industries" which increased slightly (by 0.2 million tonnes). 
In 1992 coal deliveries are expected to fall by 1.5 million tonnes or 
0.5% for the Community as a whole. Deliveries to the main sectors will 
fall slightly, but deliveries to the steel industry are expected to 
increase by 1.2 million tonnes or 21.5%. 
Unlike Community coal production, coal imports from third countries 
increased (by 13.1 million tonnes) in 1991 compared with 1990 to reach 
a new record level of 129 million tonnes. This increase is mainly 
attributable to greater demand from power stations. Imports are 
expected to increase less spectacularly (by 2.0 million tonnes) in 
1992, to reach a level of 131 million tonnes. 
- 5 
1989 Imports of Coal from Third Countries 
(mi 11 ion tonnes) 
(t - t) 
19922 1992/91 (X) 1990 1991 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
UK 10.9 
10.2 
5.7 
1.2 13.2 
9.3 12.6 
10. 
14, 
2. 
0. 
13. 
3. 
11. 19.4 8 
1 
9 
17 
2.8 
19.5 
0.2 
16.5 
4.5 
12.7 13. 
9. 
1 
10. 
20. 
2. 
18.9 
0.2 
15.7 
4.1 
19.5 12.9 
13.3 
10.5 
1.6 
10.5 
19.0 
2.5 
20.9 
0.2 
15.4 
4.2 
20.1 2.8 
1.5 
10.5 
6.7 
0.9 
6.1 
5.4 
10.2 
2.2 
1.1 
3.1 
Community 102.6 115.9 129.0 131.0 1.5 
1 Provislona 
2 Forecast. 
Intra-Community Trade In Coal 
Year Germany Belgium France United Kingdom Spain ('000 tonnes) 
(t - t) 
Netherlands Other Total 
1989 
1990 
19911 
19922 5 276 
4 906 
3 600 
3 400 728 
668 
785 
760 566 
460 
468 
546 1 395 
1 559 
1 400 
600 1 041 
2 335 
2 350 
2 350 50 
37 
20 
15 9 063 
9 967 
8 623 
7 671 
1 Provisional. 
2 Forecast. 
Intra-Community trade in coal, including internal movements of coal of 
third-country origin in free circulation fell by 1.3 million tonnes in 
1991; a further reduction of around 1.0 million tonnes is expected in 
1992. This trend is attributable to a reduction in production in the 
main coal-exporting Member States, and the considerable competition 
from third-country coal and other substitutable energy resources. 
2.4. Financial Situation of Community Coal Undertakings 
For the Community as a whole, average production costs remained 
virtually unchanged throughout 1991 at ECU 108/tce. 
- 6 -
Nevertheless, reductions were recorded in France (5%) and the United 
Kingdom (1.9%). In ;he other countries, on the other hand, production 
costs Increased, especially in Belgium, Portugal and Germany. 
In the case of the United Kingdom, if the influence of the variations 
in the calorific value of the coal produced and exchange-rate 
fluctuations are disregarded, the reduction in costs may amount to 
5.1%. In France virtually the entire reduction in costs was the result 
of factors specific to the coal industry. 
Table 4 
Financial Situation of the Coal Industry 
Production Costs1 
ECU/tce 
1989 1990 1991 91-90 
(X) 1989 Returns 
ECU/tce 
1990 1991 91-90 
(X) (ECU/tce) 
Difference 
ECU/tce 
1989 1990 1991 
Germany 
Belgium 
Spain 
France 
Portugal 
UK 131 
175 
142 
97 
103 
84 134 
198 
149 
97 
95 
75 137 
228 
1503 
92 
1093 
74 + 2.1 
+ 15.6 
+ 0.7 
- 5.0 
+ 14.6 
- 1.9 119 
52 
1112 
60 
68 
71 123 
55 
1072 
61 
65 
692 125 
47 
1143 
61 
743 
73 + 2.0 
-14.2 
+ 6.0 
- 0.6 
+ 13.6 
+ 6.7 • 12 
•123 
• 31 
• 37 
• 35 
13 - 12 
-142 
- 42 
- 36 
- 30 
- 6 - 12 
-181 
- 37 
- 31 
- 35 
- 0 
TOTAL 109 108 108 •0.2 92 94 97.2 + 3.4 -17 - 14 - 10 
1 Overall costs. Including capital and depreciation costs. 
2 Including aid for coking coal. 
3 Estimate. 
There was an increase in returns of 3.4% for the Community as a whole 
in 1991, mainly because of price increases in the United Kingdom (6.7%) 
and Spain (6%) and to a lesser extent in Germany (2%). In the United 
Kindgom about 4.8% was due to price increases and about 1.9% to 
exchange-rate fluctuations. In the case of Spain all but 0.7% of the 
increase was due to price increases. 
Mention should be made of the considerable differences in returns 
between the different producer countries. To a great extent these are 
due to indirect consumption-aid mechanisms in certain countries. 
There were (often marked) improvements in productivity in all coal-
producing Member States, largely due to the restructuring and 
rationalization of the Industry. The least productive pits are the 
first to be closed, and when the decision to close a pit in the 
relatively near future is taken, underground preparation work is 
reduced to a strict minimum, releasing workers for production or 
reducing the number of underground workers. Productivity increases 
both cases. The considerable increases recorded in France and the 
United Kingdom should once again be stressed. in 
- 7 -
Table 5 
Underground Output per Manhour 
1988 
630 
534 
320 
633 
333 
578 1989 
645 
589 
328 
680 
329 
603 1990 
673 
634 
361 
704 
341 
628 19911 
695 
728 
355 
794 
350 
680 (kg) 
19922 
710 
800 
365 
855 
355 
715 1992/91 
(%) 
2.1 
9.9 
2.8 
7.7 
1.4 
5.2 Germany 
France 
Be I g i urn 
UK 
Spain 
Community 
1 Provisional 
2 Forecast. 
3. Financial Aid scheduled for the Coal Industry in 1991 
Any economic and financial assessment of aid to the coal industry must 
take account of the specific features of the industry. 
Short-term changes on the international coal market are not necessarily 
representative of long-term trends. It should be pointed out that the 
world price of coal in terms of Member States' currencies was 
influenced very considerably by the volatility of the American dollar 
and the slump in oil prices in 1991 after the Gulf War ended. It 
should be noted that the current world market prices are causing 
financial difficulty in certain coal-exporting third countries. A 
study carried out in 1991 for the Commission suggests that the price of 
imported coal in 2010 (based on constant prices) could be between $57 
and $76 per tee for steam coal and $68 for coking coal. 
The present situation is aggravating the difficulties of the European 
coal industry where, as a result of the inflexibility of the production 
system (attributable to technical, geological and geographical 
factors), it is impossible to respond to short-term market fluctuations 
in terms of quantities or costs. 
The financial flow of aid thus contains an element that is difficult 
quantify, covering the difference between the short-term cost of 
imported coal - often serving as a reference price to determine the 
purchase price of Community coal - and the long-term marginal cost of 
new production capacity in coal-exporting third countries offering 
guarantees of security of supply. to 
- 8 -
It is against this long-term backcloth that coal producers and large 
consumers are legitimately concerned with minimizing the risks of a 
volatile market through long-term contracts, although the terms of 
these contracts must reflect economic realities and not hamper efforts 
to deploy the instruments provided for In the Treaties to make balanced 
and determined progress towards greater integration and optimization of 
energy markets. 
This document is concerned with the measures set out in Article 1 of 
the abovementioned Decision, namely all aid granted by central, 
regional or local authorities (which, even if it is not always a direct 
burden on public budgets, is nevertheless financed by charges rendered 
compulsory by the fact of State intervention) and any aid elements 
contained in the financing measures taken by Member States in respect 
of the coal undertakings which they directly or indirectly control and 
which cannot be regarded as the provision of risk capital according to 
standard company practice in a market economy. 
This report makes various distinctions. It distinguishes between aid 
related to current production and aid not related to current 
production, which, in certain cases such as inherited liabilities, 
cannot be interrupted even if coalmining were to stop. Research, 
development and demonstration activities are also regarded as not 
related to current production provided they are not for the exclusive 
benefit of the company undertaking the research. Where such measures 
help to promote innovations in the undertaking itself they are 
considered to be related to current production. 
Where current production is concerned, it is also essential to 
distinguish between direct aid and indirect aid. Under Decision 
No 2064/86/ECSC any financial aid granted directly to coal undertakings 
is regarded as direct aid. Indirect aid is any aid which, although 
often granted to an economic operator not producing coal, is of 
indirect benefit to coal undertakings.9 
3.1. Financial Aid related to Current Production 
In 1991 aid to current production authorized by the Commission amounted 
to ECU 5 401.1 million, compared with ECU 5 322.7 million in 1990. 
This definition differs from the economic approach, where supply-
side aid is regarded as direct aid and demand-side aid is regarded 
as indirect aid, since the party receiving the aid is not 
necessarily the same as the party benefiting from the economic 
effect. 
- 9 -
As emerges from Annex 1, this increase is mainly due to a significant 
rise in the level of aid in Spain as a result of the financial 
restructuring of the coal industry under the restructuring, 
rationalization and modernization plan. 
The amount of aid in the other Member States felI, particularly in 
Belgium and France as a result of restructuring plans, in Portugal 
where restructuring began following the adoption of a strategic plan, 
while in the United Kingdom no aid to current production was granted 
for 1991. 
Table 6 
Financial Aid related to Current Production 
ECU ml 11 ion ECU/tonne 
1991 1990 1991 1990 
Direct 
Article 3 
Article 4 
Article 5 
Article 6 
Other Deficit grant aid 
Sales aid 
Investment aid 
Aid for underground staff 822.8 
1 656.7 
11.3 
66.8 
217.6 848.9 
1 740.9 
74.1 
9.7 4.26 4.24 
8.57 8.70 
0.06 
0.35 0.37 
1.13 0.05 
Subtotal 2 775.2 2.673.6 14.37 13.36 
Indirect 2 625.9 2 649.1 13.58 13.25 
Total 5 401.1 5 322.7 27.95 26.61 
3.1.1. Direct Aid 
Direct aid for current production under Decision No 2064/86/ECSC10 
includes deficit grant aid (Article 3), investment aid (Article 5), aid 
for underground staff (Article 6), and sales aid for coking coal and 
coke (Article 4). The latter is regarded as direct aid since it is 
granted to the producer and not to the consumer. 
3.1.1.1. Germany 
In 1991 direct aid authorized by the Commission amounted to 
DM 3 964.9 million (ECU 1 933.1 million), i.e. DM 54.46 (ECU 26.55) per 
tonne. 
10 For more details, the reader is referred to the text of the 
Decision: OJ No L 177, 1.7.1986, pp. 1-9. 
- 10 -
DM million ECU million 
Article 3 Aid to cover operating losses /^ 429.2 209.6 
Article 4 Aid for sales of coal and coke 3 398 1 656.7 
to the Community steel Industry 
Article 6 Miners' bonuses per underground 137 66.8 
shift worked ("Bergmannspràmle") 
Total 3 964.9 1 933.1 
The aid to cover operating losses (DM 429.9 million) is granted to 
undertakings in certain mining areas in order to cover part of a 
revenue shortfall resulting from certain sales of coal by the 
undertakings in question to thermal power stations. The aid is granted 
in the form of financial compensation based on the differences in 
production costs between mining areas and on the use of coal with a low 
volatile matter content. 
Since the measure is to be gradually phased out and is part of a 
restructuring and rationalization plan, the aid in question meets the 
objectives and criteria set out in Article 2 of the Decision. 
Pursuant to Article 12 of Decision No 2064/86/ECSC, coal undertakings 
are authorized, where necessary, to grant rebates on their list prices 
or production costs for deliveries of coal and coke to Community 
steel-industry blast furnaces under long-term contracts. These rebates 
must not cause prices to work out lower than those which would be 
charged for coal from third countries and coke made from third-country 
cok i ng coaI. 
According to the notification from the German Government, this sales 
aid is to be granted in line with the principles underlying a new 
system of aid for the delivery of coal and coke to the Community steel 
industry. The system is designed to place a ceiling on aid in the 
period 1989-91. The aid to be granted in 1991 (DM 3 398 million) 
covers the difference between the world market price and the production 
costs for a maximum production level of 21.5 million tonnes. The aid 
is therefore compatible with Articles 4 and 12 of the Decision. It 
serves to reinforce the restructuring of the coal industry and thus 
helps to improve competitiveness in accordance with the first indent of 
Article 2(1) of the Decision. 
The aid of DM 137 million to finance miners' bonuses (DM 10 per 
underground shift worked) enables the coal industry to keep on a 
skilled workforce. The aid is a specific measure which has been in 
existence for several years (miners' income tax allowance) and must be 
notified separately from the aid referred to in Articles 3-5 of the 
Decision. The aid is thus compatible with Article 6 of the Decision, 
and will help to improve the competitiveness of the coal industry, in 
line with the first indent of Article 2(1). 
- 11 -
3.1.1.2. Be I g i urn 
In 1991 direct aid authorized by the Commission amounted to 
BF 2 257.6 million (ECU 53.4 million), i.e. BF 3 566 (ECU 84.36) per 
tonne. 
BF million ECU million 
Article 3 Aid to cover operating losses 2 257.6 53.4 
Total 2 257.6 53~4 
Aid to cover operating losses amounting to FB 2 257.6 million was 
granted to the CampIne coalfield, in order to make up, for each tonne 
produced, some of the difference between foreseeable average costs and 
returns. This mainly involves coal delivered to thermal power 
stations, the sales price of which is closely linked to the price of 
imported coal. The aid covers 83% of the foreseeable operating losses 
and thus meets the conditions of Article 3(1) of the Decision. 
The aid to cover operating losses helps to facilitate the last phase of 
the restructuring of the coal industry, leading to the closure of the 
last remaining pit by the end of 1992. It thus helps to solve social 
and regional problems connected with the decline in coal production, in 
line with the third indent of Article 2(1). 
3.1.1.3. France 
In 1991 the amount of direct aid authorized by the Commission totalled 
FF 1 153 million (ECU 165.3 million), i.e. FF 114.2 (ECU 16.36) per 
tonne. 
FF million ECU million 
Article 3 Aid to cover operating losses 1 153 165.3 
Total 1 153 165.3 
The aid to cover operating losses makes up only 52% of the difference, 
for each tonne produced and for each region, between foreseeable 
average costs and returns and thus complies with Article 3(1) of the 
Decision. As in the case of Belgium, these average returns are closely 
linked with developments in the price of imported coal. 
Since this is a degressive measure and forms part of a restructuring 
and rationalization plan, the aid fulfils the objectives and criteria 
defined in Article 2 of the Decision. 
- 12 -
3.1.1.4. Spain 
Direct aid authorized by the Commission for 1991 amounted to 
PTA 79 391 million (ECU 618.9 million), i.e. PTA 4 362 (ECU 34) per 
tonne. 
PTA million ECU million 
Article 3 Aid to cover operating losses 50 034.0 390.0 
Article 5 Investment aid 1 440.0 11.3 
Other Aid to defray part of the 27 917.0 217.6 
measures specific depreciation costs and 
other exceptional costs arising 
from restructuring measures 
Total 79 391.0 618.9 
The aid to cover operating losses (PTA 50 034 mi 11 ion) is granted to the undertakings Hunosa, 
Figaredo and Minero Siderurgica Ponferrada (for the operation by the latter of Mina de la 
Camocha). It is intended to offset part of the difference between average foreseeable costs and 
average foreseeable revenue for each tome produced. The aid does not exceed the foreseeable 
operating losses and therefore meets the conditions of the Article 3(2) of the Decision. 
The aid to cover operating losses facilitates the process of restructuring the undertakings 
receiving the aid, in particular by staggering the closure of certain pits with no prospects of 
economic liability, in the context of regional industrial redevelopment policy. The aid thus 
helps to resolve social and regional problems related to developments in the coal industry, in 
accordance with the third indent of Article 2(1) of Decision No 2064/86/ECSC. 
The investment aid (PTA 1 440 million) is intended for Investment projects by various 
undertakings, the aim being to facilitate the implementation of the plan for the restructuring, 
rationalization and modernization of the Spanish coal industry notified to the Connission 
pursuant to Decision 90/198/ECSC (see point 3.1.2.2.4). This aid helps to improve the 
competitiveness of the Comunity coal industry, in accordance with the first indent of 
Article 2(1) of the Decision. 
In order to facilitate the implementation of the plan for the restructuring, rationalization and 
modernization of the coal industry, the Spanish Government has established a provision to defray 
(by means of a financial measure total I ing PTA 27 917 mi 11 ion) part of the specific depreciation 
costs and other exceptional costs arising from the strategic plans of undertakings not covered by 
contracts. This measure faci I itates the process of restructuring the coal industry and also 
helps improve the competitiveness of the Comunity coal industry as a result of the closure of 
- 13 -
production capacity with no long-term prospect of economic viability, 
in accordance with the criteria and objectives of Article 2 of 
Decision 2064/86/ECSC. As a provision is involved, the Spanish 
Government is to notify the Commission each year of the amounts of aid 
actually paid, the mines receiving the payments and the capacity 
reductions involved. 
3.1.1.5 Portugal 
In 1991 the Commission authorized the granting of aid totalling 
ESC 803.8 million (ECU 4.5 mi I I ion) to cover operating loses, i.e. 
ESC 2 871 (ECU 19.40) per tonne. 
ESC mi I I ion ECU mi I I ion 
Art icle 3 Aid to cover 
operating losses 803.8 4.5 
This aid is to cover the difference between the foreseeable average 
costs and returns for a total of 0.232 million tonnes. The aid does 
not exceed foreseeable operating loses and hence meets with the 
conditions laid down in Article 3(1) of the Decision. 
This measure is designed to help implement the strategic plan of the 
undertaking in question in the period from 1990 to 1994 when its total 
closure is planned. It is intended to help resolve the social and 
regional problems related to developments in the coal industry, in 
accordance with the third indent of Article 2(1) of 
Decision No 2064/86/ECSC. 
3.1.1.6. United Kingdom 
According to information received from the United Kingdom Government, 
no aid to current production will be granted in respect of 1991. This 
is in line with UK policy which, following the restructuring of the 
British Coal Corporation, provides for no further aid for current 
production before the expiry of Decision 2064/86/ECSC. 
3.1.2 Indirect Aid 
In this report, financial measures which, although generally granted to 
an economic activity other than coal production, are of benefit to coal 
undertakings, are regarded as indirect aid. Such measures are included 
in the definition set out in Annex 2 to Decision No 2064/86/ECSC, 
namely, "any other measures linked to the production or marketing of, 
and external trade in, coal even if they do not directly impose a 
burden on public budgets, which give an economic advantage to coal 
undertakings". 
- 14 -
In this context, the Commission takes the view that several financial 
mechanisms and types of aid must be regarded as indirect aid for 
current production. 
This is the case with the aid to finance systems of social welfare 
contributions specific to the coal industry in force in some 
Member States where the aid makes the effective social security burden 
of the coal undertakings lower than the costs that the undertakings 
would normally have to bear in comparison with other industries. 
Research, development and demonstration activities are also regarded as 
indirect aid where they help to promote innovations in the undertaking 
receiving the aid. 
In most coal-producing Member States, coal producers and electricity 
producers have concluded coal-supply agreements or contracts. Some 
agreements or contracts in force in 1991 include pricing methods which 
do not necessarily reflect market realities. The Commission has 
undertaken as complete a study as possible of these agreements and 
contracts, to highlight any financial-aid element detected. The 
agreements and contracts proper are currently being examined in detail 
by the Commission departments, to assess their compatibility with the 
rules of the Treaties. 
Where it has a direct influence on the level of domestic prices, a 
quantitative import restriction can also be regarded as indirect aid. 
In the absence of accurate information on the impact of such measures, 
however, they are not listed here. 
3.1.2.1. Indirect Aid to Production 
3.1.2.1.1. Germany 
The notification submitted to the Commission indicates that the State 
aid for social security systems in the mining industry as a whole makes 
the effective social security burden of coal undertakings lower than 
the normal burden that undertakings would have to bear under Article 7 
of the Decision, as indicated at 3.2.1.1 below. The difference for the 
mining industry as a whole amounts to DM 338 million, of which about 
80% (i.e. DM 270.4 million) is for the coal industry. 
As a result, the limits laid down in Article 7 of the Decision are 
exceeded by that amount, which must therefore be regarded as indirect 
aid to current production. In effect, the production costs of 
undertakings are reduced by DM 3.70 per tonne, i.e. 1.4% of total 
product ion costs. 
- 15 -
State aid for social security systems in the mining industry as a whole 
applies to all forms of mine (coal, ore, salt, etc.). The 1.4% 
reduction in production costs does not constitute a significant 
competitive advantage for the German coal industry compared with other 
Community coal producers, since the returns do not cover the production 
costs. 
Since this measure helps to alleviate the social problems mentioned in 
the third indent of Article 2(1) of the Decision, it was authorized by 
the Commission. 
3.1.2.1.2. BeIgiurn 
The Commission authorized aid amounting to BF 37.7 million to cover 
expenditure on the additional leave scheme for underground miners. The 
effect of this measure is to reduce slightly the cost price per tonne 
(by less than 1%); in view of the accelerated decline in the level of 
production, this does not confer a competitive advantage. In view of 
the low level and temporary nature of this aid and the fact that it 
forms part of a restructuring plan, it fulfils the objectives and 
conditions set out in Article 2 of the Decision. 
The notification sent to the Commission regarding the financing of 
social benefits in the coal industry, detailed at 3.2.1.3 below, shows 
that the aid which the Belgian Government planned to grant in this 
connection made the ratio between the charges per active miner and the 
benefits per recipient lower than the corresponding ratio in other 
industries. The difference amounts to BF 292.7 million. 
The limits laid down in Article 7 of the Decision are accordingly 
exceeded by this amount, which must be considered as indirect aid for 
current production. The resulting reduction in production costs (some 
6%) does not constitute a significant competitive advantage for the 
coal industry compared with other Community coal producers, given the 
abnormally high level of charges in the Belgian coal industry as a 
result of the major cutback in production. The link between this 
measure and the restructuring programme contributes to the solution of 
social and regional problems related to changes in the coal industry in 
accordance with the third indent of Article 2(1) of the Decision. 
3.1.2.2. Indirect Aid to Consumption 
This section describes the pricing methods in contracts and agreements 
between coal producers and electricity producers. Where appropriate, 
the extent of the financial aid is also highlighted where it can be 
quantified. 
- 16 -
3.1.2.2.1. Germany 
In Germany, the financial compensation and price mechanism for sales of 
both German and Community coal to the electricity industry, including 
sales provided for in the "Jahrhundertvertrag", are governed by the 
third Electricity-from-coal Law.11 
The German Government has provided the Commission with information 
suggesting that by 1997 production of coal for thermal power stations 
will be reduced by 5.9 million tonnes of coal equivalent; the 
reduction in production will be achieved by closing down the production 
units making the biggest losses. 
After examining this information, on 25 November 1992 the Commission 
authorized compensatory payments totalling DM 5 000 million to cover 
current expenditure in respect of the compensation fund under the third 
German Electricity-from-coal Law for 1991 and 1992 and additional 
compensatory payments under that Law for 1989 and 1990. 
In authorizing the payments, the Commission made it clear that the 
authorizations would cease to have legal effect beyond the date on 
which Decision No 2064/86/ECSC expires. 
3.1.2.2.2. France 
In France, EDF's purchases of coal and electricity from Charbonnages de 
France are governed by a protocol dating back to the end of 1987 and 
covering the period 1989-1993. 
The quantities of national coal and electricity covered by the protocol 
are on a dec Iining sea le, as follows: 
Coal Electricity 
1989 - 2.30 million tonnes 7.92 TWh 
1990 - 2.19 million tonnes 7.24 TWh 
1991 - 2.09 million tonnes 6.68 TWh 
1992 - 1.81 million tonnes 6.13 TWh 
1993 - 1.81 million tonnes 5.97 TWh 
The minimum ex mine price is set some 10% higher than the cost of 
imported coal. 
11 C0M(88) 541, 20.10.1988, point 4.1.2.2.1. 
- 17 -
The quantities of electricity covered by the contract equate to 3 500 
hours of utilization of CdF coal-fired power stations a year. The 
electricity supplied on these terms is subject to the same tariffs as 
EDF applies to private generation. The price charged for any 
additional quantities purchased corresponds to the accounting cost of 
nuclear power stations in operation. 
The guaranteed supply provided for by the contract and the fact that 
collieries stock coal in order to be able to satisfy EdF demand at very 
short notice are quid pro quos for the 10% surcharge. It does not 
appear, therefore, from the information at the Commission's disposal, 
that this mechanism contains direct or indirect financial aid to the 
coal industry. 
3.1.2.2.3. United Kingdom 
Since the 1990/91 financial year, deliveries of national coal are 
covered by a new three-year agreement signed at the end of 1989. The 
contracting parties are the British Coal Corporation, National Power 
and PowerGen. 
Deliveries of coal to the electricity-generating industry covered by 
the contract amounted to 70 million tonnes in 1990/91 and 1991/92 and 
65 million tonnes in 1992/93. The price is staggered as follows: 
- UKL 45.40/tonne ex-mine for the first 40 million tonnes in each of 
the three years; 
- UKL 36.80/tonne ex-mine for the next 30 million tonnes in the first 
two years and the next 25 million tonnes in the third year. 
A similar agreement has been concluded between Scottish Power and the 
British Coal Corporation, the deliveries being made from the Scottish 
coalfield. This agreement covers the period from 1990 to March 1995. 
Deliveries of coal to the Longannet power complex amounted to 
2.5 million tonnes for the 1990/91, 1991/92 and 1992/93 financial 
years, and may vary between a minimum of 2 million tonnes and a maximum 
of 2.5 million tonnes in 1993/94 and 1994/95. These deliveries thus 
correspond to about 60% of the needs of the power stations in question. 
For the 1991/92 financial year, the average price paid by electricity 
generators was UKL 43.36/tonne, compared with UKL 43.77/tonne for 
1990/91. 
3.1.2.2.4. Spain 
A system of awarding contracts for the supply of coal to thermal power 
stations (NSCCT) was concluded in 1986 between CARBUNION, the 
association of coal producers, and UNESA, the electricity producers' 
association. This agreement stipulates that all producers or groups of 
producers with underground production in excess of 50 000 tonnes a year 
may conclude long-term contracts with the electricity producers at a 
reference pr ice. 
- 18 -
Mining companies with production costs in excess of the reference price 
may charge the electricity producers a supplement covering the 
difference between their production costs (excluding depreciation) and 
the reference price. The surcharge paid by the electricity producers 
is reimbursed through the OF ICO compensation fund set up by the 
electricity producers. This price supplement only covers coal produced 
in underground mines. 
As requested by the Commission in Decision 90/198/ECSC,12 in 1991 the 
Spanish Government submitted a plan to reduce the compensatory payments 
made under the OFICO scheme and an outline plan for the restructuring, 
rationalization and modernization of undertakings in the part of the 
Spanish coal industry covered by the OFICO scheme. 
The outline plan provides for a reduction in production capacity of 
around 1.9 mi 11 ion tonnes by 1993. 
After examining the plans, the Commission authorized a compensatory 
payment to electricity producers through the OFICO compensation fund 
totalling PTA 6 208 million for 1991. Authorization does not prejudge 
the compatibility of the new system of awarding contracts for the 
supply of coal to thermal power stations with the provisions of the EEC 
and the ECSC Treaties; the system is at present being examined in 
detail by the Commission departments in the light of the completion of 
the internal energy market. 
3.2. Financial Aid not related to Current Production 
Under Decision No 2064/86/ECSC, aid granted on the basis of Articles 7 
and 8 is regarded as aid not related to current production. Research, 
development and demonstration activities are also included in this 
category, provided they do not affect the production costs of the 
industry in the country in question, in 1991 aid amounted to 
ECU 9 123.0 million, compared with ECU 8 894.8 million in 1990. 
Table 7 
Financial Aid not related to Current Production 
mi H ion ECU 
1991 1990 
Article 7 Social benefits 7 810.4 7 797.3 
Article 8 Inherited liabilities 1 312.6 1 097.5 
Total 9 123.0 8 894.8 
12 OJ L 105, 25.4.1990. 
19 -
3.2.1. Financial Aid for Social Benefits 
Under Article 7 of the Decision, State aid to finance social benefit 
schemes specific to the coal industry may be considered compatible with 
the common market provided that, for coal undertakings, it brings the 
ratio between the burden per mineworker in employment and benefits per 
person In receipt of benefit into line with the corresponding ratio in 
other industries. The excess levels noted in Germany and Belgium were 
considered to be indirect aid for current production in sections 
3.1.2.1.1 and 3.1.2.1.2. 
3.2.1.1. Germany 
In 1991 DM 10 800 million was allocated to cover the deficit of the 
disability and old-age pension scheme in the mining industry as a 
whole. Some 80% of this amount, i.e. DM 8 640 million, went to the coal 
industry. The Commission's examination showed, as mentioned in 
section 3.1.2.1.1., that the limits laid down in Article 7 of the 
Decision were exceeded, since the financing of sickness insurance for 
those entitled to a pension under the miners' insurance schemes was 
changed by the Finance Laws of 1983 and 1984. Contributions to the 
miners' sickness insurance fund are now covered in part by the sickness 
insurance scheme by way of equalization of burdens. 
3.2.1.2. France 
According to the French Government's notification, social benefit 
payments amounted to FF 13 574.7 million in 1991. Details of this aid 
are given below. 
Or igin Amount of Aid Purpose 
(in FF mill ion) 
State 3 621.0 Disability and old-age pension insurance 
Regular contribution amounting to 22% 
of the total wage-bill plus additional 
State adjustment 
General 
system 3 933.0 Disability and old-age pension insurance 
Regular statutory contribution to cover 
part of the "exceptional expenditure" 
General 
system 1 751.0 Insurance against industrial accidents 
and occupâtionaI diseases 
Coverage of inherited liabilities 
- 20 -
General 
system 
General 
system 2 081.0 
2 188.7 Sickness insurance 
Treatment benefits 
Disability and old-age pension insurance 
"Exceptional expenditure" in the coal 
industry within the meaning of 
Article 7 of Decision No 2064/86/ECSC 
Total 13 574.7 
The abovementioned aid complies with the provisions of Article 7(1) of 
the Decision. 
3.2.1.3. BeIgiurn 
As can be seen from the table below, the financial aid granted to the 
Belgian coal industry for social benefits amounts to 
BF 29 503.3 mi I I ion. 
Or loin Amount of Aid Purpose 
(In BF mi 11 ion) 
State 24 803.8 
State 4 699.5 Old-age pension and survivor's pension 
insurance 
Regular statutory contribution 
DIsab 111ty Insurance 
DisabiIity pension 
Total 29 503.3 
As mentioned in section 3.1.2.1.2., examination by the Commission 
showed that the limits laid down in Article 7 of the Decision had been 
exceeded by BF 292.7 million. This is explained by the constant fall 
in the ratio between active workers and benefit recipients as a result 
of the measures to cut the workforce connected with implementation of 
the restructuring plan. 
3.2.1.4. United Kingdom 
In the United Kingdom nearly all branches of industry have their own 
insurance system (in addition to the general social insurance scheme, 
which also applies to the coal industry) from which pensions are paid 
to retired workers. A supplementary system of this kind also exists 
for the coal industry in the form of a retirement fund. The British 
Government notified the Commission that the system whereby the State 
made a contribution covering the deficit of the miners' retirement fund 
had been discontinued from the 1990/91 financial year. 
- 21 -
3.2.1.5. Spain 
Notified public financial aid to the Spanish coal industry for social 
benefit payments amounted to PTA 105 366 million in 1991. 
OrIgin Amount of Aid Purpose 
(in PTA mi 11 ion) 
State 87 553 Old-age pension 
State 3 486 Temporary disability 
State 1 056 Temporary invalidity and 
rehabilitation insurance 
State 11 621 Health service 
State 242 Miscellaneous (family benefits, 
social services, social welfare, 
one-off payments, prostheses, 
wheelchairs) 
State 1 408 Administrative costs 
Total 105 366 
The above financial aid complies with Article 7(1) of the Decision. 
3.2.2. Financial Aid to cover Inherited Liabilities 
In accordance with Article 8 of the Decision, State aid to undertakings 
to cover the costs arising from restructuring which are not related to 
current production may be considered compatible with the common market 
provided that it does not exceed such costs. The categories of costs 
regarded as inherited liabilities are set out in Annex 1 to 
Decision No 2064/86/ECSC. 
3.2.2.1. Germany 
For 1991 Germany notified the following measures: 
- Aid to cover water control DM 232.6 million 
- Aid in the form of allocations DM 275.1 million 
covering the costs of early 
retirement and exceptional 
intrinsic depreciation 
resulting from restructuring 
Total DM 507.7 million (-ECU 247.5 
mi 11 ion) 
- 22 -
All the above costs constitute inherited liabilities since they are the 
result of production capacity closures in previous years and are thus 
not related to current production. 
The aid for water control costs, amounting to DM 232.6 million, is paid 
to coal undertakings to enable them to cover the inherited liabilities 
arising from closures since 31 December 1966. As a result of pit 
closures, the undertakings were forced to pay constantly increasing 
amounts to the water-management associations. The aid does not exceed 
the real extra costs borne by the undertakings. 
The above measures therefore comply with Article 8(1) of the Decision. 
3.2.2.2. BeIgIurn 
The Belgian Government notified the Commission of aid totalling 
BF 51.5 million (ECU 1.2 million) to cover mining damage arising from 
the closure of the workings of the Kempense SteenkolenmiJnen (Campine 
coalfield). The aid does not exceed actual costs and therefore meets 
the criteria of Article 8(1) of the Decision. 
3.2.2.3. France 
In 1991 the French Government granted aid totalling FF 5 415 million 
(ECU 783.2 million) to cover the inherited liabilities of Charbonnages 
de France. This sum is intended to allow the following costs to be 
covered: 
- excess cost of early retirement FF 2 350.0 million 
- conversion costs FF 725.0 million 
- early retirement, interim pensions 
and housing allowances FF 1 015.0 million 
- costs of pit closures or dismantling 
-of installations FF 225.0 million 
- residual charges/depreciation and 
servicing of loans transferred 
to the Central Office FF 1 085.0 million 
- general research FF 15.0 million 
Total FF 5 415.0 mi I I ion 
This aid breaks down between the coalfields and Central Office as 
fol lows: 
- Nord-Pas de Calais FF 1 008.0 mi 
- Lorraine FF 358.0 mi 
- Centre Midi FF 327.0 mi 
- Central Office FF 842.0 mi 
- ANGR (responsible for administration of FF 2 880.0 mi 
retired miners on behalf of the employer) I ion 
I ion 
I ion 
I ion 
I ion 
- 23 -
The actual costs to Charbonnages de France tally with the amount of aid 
and are thus consistent with Article 8(1) of Decision No 2064/86/ECSC. 
3.2.2.4. Spain 
Spain notified the Commission of the following measure for 1991: 
establishment of a provision totalling PTA 34 258 million to cover 
exceptional social expenditure in the form of payments to workers made 
redundant before 31 December 1993 following measures to restructure, 
rationalize and modernize the industry. 
The Commission concluded that the provision should be regarded as an 
inherited liability, in accordance with Article 8 of 
Decision No 2064/86/ECSC. As the establishment of a provision is 
concerned, the Spanish Government is to inform the Commission each year 
of the allowances actually paid, the volume of aid involved and the 
number of recipients, in order to ensure that the conditions of 
Art icle 8 are met. 
3.2.2.3. United Kingdom 
The United Kingdom notified the following measure for 1991: 
- aid for miners losing their Jobs 
following restructuring UKL 9.6 million 
This is a social measure arising out of pit closures. The aid does not 
exceed the actual costs and therefore meets the criteria of 
Article 8(1) of the Decision. 
4. Conclusions 
The panorama of the Community coal industry portrayed in this document 
follows on from the conclusions reached in the 1990 Report. The 1991 
Report stresses once again the differences in the economic performance 
of the various Community undertakings, the variety of mechanisms 
established by the Member States to support the coal industry, and the 
differences of approach to restructuring in the various coal-producing 
Member States. 
Similarly, although the statistics available do not make it possible, 
for the abovementioned reasons, to make a detailed comparative 
analysis, the broad trends observed in recent years would seem to be 
borne out, namely a reduction in the aid granted in certain Member 
States, compared with a slight level Iing-off in aid in other Member 
States. 
However, we should not underestimate the significant progress made with 
the implementation of Community policy concerning State aid to the coal 
industry. In this respect, satisfaction can be drawn from the decisive 
course that the restructuring process seems to be taking in Spain. 
- 24 -
Discussions are also under way between the Commission and the German 
Government to phase out aid more quickly. 
The restructuring of the coal industry is therefore proceeding, to 
varying extents, in all Member States, but it nevertheless seems 
certain that the process will not be completed by the time 
Decision 2064/86/ECSC expires, and that new Community rules for State 
aid will have to be introduced. The experience acquired with the 
implementation of Decision 2064/86/ECSC indicates that it would be 
desirable, not only because of the differences between and the lack of 
transparency of certain aid systems in force, but also in view of the 
disturbing trend in the amount of aid granted in certain Member states, 
that the new rules should tighten up the Community arrangements. 
In its Mid-term Report on the Application of Decision 2064/86/ECSC,13 
the Commission therefore proposed certain priority objectives for the 
new aid rules, namely greater transparency for the systems in force, in 
particular by charging the aid to public budgets, gradually reducing 
the amounts of aid granted in order to make the industry more 
competitive, and placing a ceiling on subsidizable costs by 
establishing a reference price or cost for Community coal. This would 
make it possible to reduce the excessively large gap between the 
production costs of the various Community undertakings and thus create 
the necessary conditions for healthy Intra-Community competition. 
This change, which is in line with the basic objectives of the 
ECSC Treaty, is now also essential as part of the completion of the 
internal energy market, since opening up the electricity market cannot 
produce all the beneficial effects anticipated if power stations cannot 
be supplied in acceptable conditions of competition. 
However, the Commission maintains that Community coal has a role to 
play as part of Community policy in relation to security of supply, and 
that it is therefore logical that this contribution should be 
remunerated. However, it has serious reservations about measures 
which, in the name of the principle of national security of supply, 
seek to keep alive artificially production capacities whose costs are 
more than twice the price of imported coal. The future of the 
Community coal industry will inevitably entail the closure of such 
extremely loss making capacity since, ultimately, an improvement in 
Community production's external competitiveness will be the best 
guarantee of security of supply. 
This necessary change in the coal industry should not, however, be 
achieved at the expense of other Community objectives, e.g. economic 
and social cohesion. The Commission will pay attention to this factor, 
and to this end intends to continue to encourage efforts to achieve 
industrial diversification and social adjustment in the declining coal 
regions. 
13 SEC(91)1983 final, 11.11.1991 
- 25 
Financial aid linked to current production in the coal industry 
Country: Belgium. 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL ECU mi 11 i on 
1991 
53.4 
53.4 
7.8 
61.2 1990 
70.31 
70.3 
10.3 
80.6 ECU/tonne 
1991 
84.36 
84.36 
12.32 
96.68 1990 
68.59 
68.59 
10.04 
78.63 
Including the additional aid authorized under Decision 92/115/BCSC of 27 November 1991 (OJ L 43, 19.2.1992) 
- 26 -
Financial aid linked to current production in the coal industry 
Country: Germany 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL ECU mi 11 i on 
1991 
209.6 
1 656.7 
66.8 
1 933.1 
2 569.6 
4 502.7 1990 
221.2 
1 730.1 
74.1 
9.7 
2 035.1 
2 537.0 
4 572.1 BCU/tonne 
1991 
2.88 
22.76 
0.92 
26.55 
35.30 
61.85 1990 
2.89 
22.59 
0.97 
0.13 
26.58 
33.12 
59.70 
- 27 -
Financial aid linked to current production in the coal industry 
Country: Spain 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL ECU million 
1991 
390.0 
11.3 
217.6 
618.9 
48.5 
667.4 1990 
386.6 
10.8 
397.4 
101.8 
499.2 BCU/tonne 
1991 
21.43 
0.62 
11.95 
34.00 
2.66 
36.66 1990 
20.42 
0.57 
20.99 
5.38 
26.37 
- 28 -
Financial aid linked to current production in the coal industry 
Country: France 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL BCU mi 11 i on 
1991 
165.3 
165.3 
-
165.3 1990 
166.2 
166.2 
-
166.2 BCU/ tonne 
1991 
16.36 
16.36 
-
16.36 ino 
15.39 
15.39 
-
15.39 
- 29 -
Financial aid linked to current production in the coal industry 
Country: United Kingdom 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL BCU mi 11 i on 
1991 
-
-
-
-1990 
-
-
-
-BOU/tohne 
1991 
-
-
-
-1990 
-
-
-
-
- 30 -
Financial aid linked to current production in the coal industry 
Country: Portugal 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL ECU million 
1991 
4.5 
4.5 
-
4.5 1990 
4.6 
4.6 
-
4.6 BCU/tonne 
1991 
19.40 
19.40 
-
19.40 1990 
20.24 
20.24 
-
20.24 
- 31 -
Financial aid linked to current production in the coal industry 
Conmunity 
Direct 
Article 3 : Deficit grant aid 
Article 4 : Sales aid 
Article 5 : Investment aid 
Article 6 : Aid for underground staff 
Other 
Subtotal 
Indirect 
TOTAL BCU mi 11 i on 
1991 
822.8 
1 656.7 
11.3 
66.8 
217.6 
2 775.2 
2 625.9 
5 401.1 1990 
848.9 
1 740.9 
74.1 
9.7 
2 673.6 
2 649.1 
5 322.7 BCU/tonne 
1991 
4.26 
8.57 
0.06 
0.35 
1.13 
14.37 
13.58 
27.95 1990 
4.24 
8.70 
0.37 
0.05 
13.36 
13.25 
26.61 
32 -
Financial aid not linked to current production 
(BCU million) 
Belgium 
Germany 
Spain 
France 
Portugal 
United Kingdom* 
i 
i 
Coramn i ty Financing of social benefits in the 
coal industry 
Total 
1991 
698.7 
4 344.1 
821.0 
1 946.6 
7 810.4 1990 
968.3 
4 084.0 
758.2 
1 986.8 
7 797.3 Excess aid 
1991 
6.9 
131.8 
138.7 1990 
7.7 
150.7 
158.4 Inherited liabilities 
Total 
1991 
1.2 
247.5 
267.0 
783.2 
13.7 
1 312.6 1990 
1,2 
200,6 
792.2 
103.5 
1 097.5 Excess aid 
1991 
-
-1990 
-
-
1 The United Kingdom has an integrated social security system. The figures shown above cover only the special 
miners' pension fund, ^râiich exists alongside the general social security system. 

- 2>^ -
ISSN 0254-1475 
COM(93)116 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-143-EN-C 
ISBN 92-77-53907-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg