3.10.84 Official Journal of the European Communities No C 264/3 
II 
(Preparatory Acts) 
COMMISSION 
Amendment to the proposal for a Council Regulation concerning financial support by the 
Community in favour of industries producing solid fuels (') 
COM(84) 469 final 
(Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty 
on 10 September 1984) 
(84/C 264/04) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas: 
I 
Under Article 2 of the Treaty, the Community has as 
its task to promote throughout the Community a 
harmonious development of economic activities, a 
continuous and balanced expansion and an increase 
in stability. 
The development of an energy strategy for the 
Community would make an effective contribution to 
the attainment of these objectives. In this context, it is 
imperative for the Community to diversify its sources 
of energy supplies in order to reduce oil consumption. 
Wider use of solid fuel is of great importance in 
reducing oil consumption, and the competitive 
production of solid fuel within the Community could 
play an important role in the diversification of the 
sources of energy supplies. 
The development of a modern solid-fuel industry 
would have a favourable effect on the employment 
situation in the Community. 
(») OJ No C 232, 30. 8. 1983, p. 6. II 
A considerable amount of investment is needed in 
order to improve the productivity and competitiveness 
of pits operating under good geological and technical 
conditions and to create new capacities with high 
productivity levels. 
The solid-fuel industry itself can provide only a 
limited proportion of the funds needed to finance the 
investment in question. 
Support from the Community is therefore needed in 
order to ensure an adequate volume of investment in 
the solid-fuel industry. 
Ill 
In the case of hard-coal mining, this support must 
concentrate on existing or new capacities with a high 
productivity potential which hold out the prospect of 
an improvement in competitiveness. To qualify for 
support, undertakings in the hard-coal mining 
industry must provide the Commission with adequate 
information about their modernization and restruc­
turing measures, covering both planned investment 
and any planned reduction in production capacity. 
Investment projects are eligible for support only if 
they relate to existing hard-coal mines, the under­
ground productivity of which before the investment in 
the period 1980 to 1984 amounted to at least 420 
kilograms per man-hour on average in three 
consecutive years, or to new capacities the expected 
productivity of which is at least 800 kilograms per 
man-hour. 
In addition, in the case of existing pits the projects 
are eligible only if after completion they raise the 
underground productivity of the pit in question by at 
least 5 %. 
No C 264/4 Official Journal of the European Communities 3.10.84 
The aid relates only to investment in installations, 
machines and buildings directly associated with the 
production or preparation of hard coal. 
The Commission will decide whether or not to grant 
aid after consulting an advisory committee composed 
of representatives of the Member States. 
The aid granted by the Commission may be claimed 
back from the recipient if the selection criteria are not 
satisfied, if the investment project is not completed, 
or if the applicant has supplied incorrect particulars. 
IV 
In certain Member States brown coal and peat 
constitute the only available indigenous primary 
energy source and are of considerable importance for 
energy supplies and as alternatives to oil. 
Some Member States have considerable potential in 
terms of hitherto undeveloped deposits or for in­
creasing production of brown coal and peat. A 
considerable amount of investment is needed in order 
to develop this production potential and the under­
takings are unable to finance the investment from 
their own funds. In view of the very long lead times, 
it is very difficult for the undertakings to obtain 
finance from outside sources, especially as they are 
not granted State aid. It is therefore appropriate that 
the Community should grant financial support. 
To qualify for support from the Community, under­
takings which produce brown coal and peat must 
provide the Commission with adequate information 
about their production and investment planning. 
In the case of brown coal and peat, investment 
projects are eligible only if they result in an increase 
in the net production capacity of the undertaking on 
a long-term basis. They must concern the preparation 
of sites, or installations, machines and buildings 
directly associated with the production or briquetting 
of brown coal and peat. 
The Commission will decide whether or not to grant 
aid after consulting an advisory committee composed 
of representatives of the Member States. 
The aid granted by the Commission may be claimed 
back from the recipient if the selection criteria are not 
satisfied, if the investment project is not completed or 
if the applicant has supplied incorrect particulars. V 
A limited, but substantial, contribution is needed in 
order to promote investment in the industries which 
produce solid fuel. It should be granted within the 
limits of the appropriations entered in the budget of 
the European Communities for this purpose, in the 
form of direct aid (which is repayable in certain 
circumstances of up to 20 % of the eligible 
investment (in hard-coal and brown-coal mining and 
in the peat industry). It is estimated that the funds 
which will need to be made available amount to 
1 000 million ECU for the period 1985 to 1989. 
The Commission may pay advances of up to 50 % of 
the investment aid to the undertakings receiving aid. 
VI 
The Community bodies must be given the requisite 
administrative and inspection powers. 
The Commission must ensure that the support 
granted does not affect the conditions of competition 
in a manner incompatible with the principles 
embodied in the EEC and ECSC Treaties. 
Such measures are essentially part of the 
Community's economic and energy policies. 
The Treaty has not provided the necessary powers for 
this purpose, 
HAS ADOPTED THIS REGULATION: 
Article 1 
This Regulation concerns financial incentives for: 
1. the modernization of hard-coal production; 
2. the production of brown coal and peat. 
SECTION I 
MODERNIZATION OF HARD-COAL PRODUCTION 
Article 2 
Under the conditions laid down in this Regulation, 
the Community may grant undertakings producing 
hard coal (hereinafter referred to as 'applicants') aid 
to projects as a financial incentive towards investment 
in hard-coal production. 
3.10.84 Official Journal of the European Communities No C 264/5 
Article 3 
1. To qualify for the aid provided for in Article 2, 
the applicant must make available to the Commission 
the following information for each of the years in the 
period 1985 to 1989 for its undertaking: 
(a) technically-exploitable hard-coal reserves, sub­
divided according to grades of coal and the 
location of deposits; 
(b) deposits being prepared; 
(c) expected coal production; 
(d) estimated sales; 
(e) total investment by the undertaking; 
(f) total production capacity scheduled for closure; 
(g) expected trend in the underground workforce 
and the total workforce. 
2. In addition to the items referred to under 
paragraph 1, the applicant shall provide the 
Commission with particulars concerning: 
— the average productivity of each of its under­
taking's pits (underground output per man-hour 
in kilograms) achieved during three consecutive 
years in the period 1980 to 1984, 
— the financial support granted to the undertaking 
by the Community or the Member State 
concerned in 1984. 
Article 4 
Investment projects shall be eligible for the aid 
provided for in Article 2 only if they satisfy all the 
following conditions: 
(a) they must concern existing pits which on average 
in the period 1980 to 1984 achieved during three 
consecutive years an underground output of at 
least 420 kilograms (kg = kg) per man-hour or 
which, in the case of new capacities, will achieve 
an underground output of at least 800 kilograms 
(kg = kg) per man-hour; 
(b) After completion of the investment in an existing 
pit, the underground productivity of such pit must 
be at least 5 °/o higher than the productivity 
referred to in paragraph (a); 
(c) they must relate to installations, machines and 
buildings directly associated with the production 
or preparation (washing, screening or blending) 
of hard coal. 
Article 5 
The applicant shall supply the following particulars 
for each investment project in respect of which it 
applies for the aid provided for in Article 2: (a) a detailed description of the project; 
(b) the time scale for carrying out the project; 
(c) the expected total cost of the project, the annual 
investment expenditure and the financing 
arrangements including any known Community 
aid over the period for which this Regulation 
applies; 
(d) the average underground productivity for the pit 
in which the investment project is carried out 
which was achieved during three consecutive 
years in the period 1980 to 1984 or which is 
expected, in the case of new capacities, after 
entry into operation; 
(e) the expected increase in underground 
productivity after completion of the investment 
compared with the average achieved in the period 
indicated under (d); 
(f) current and expected production costs for the pit 
in question after the project has been carried out; 
(g) the possible effects on the environment; 
(h) the possibile impact of the project on 
employment; 
(i) any other information which may justify the 
Community support requested. 
Article 6 
1. When selecting and assessing projects, the 
Commission shall take into account the particulars 
submitted pursuant to Articles 3 and 5. 
2. The Commission shall decide whether or not to 
grant the support referred to in Article 2 after 
consulting an Advisory Committee composed of 
representatives of the Member States and chaired by a 
Commission representative. Such Committee shall 
receive all information relating to the investment 
project in question except information covered by 
professional secrecy. 
3. The Commission decision notified to the 
applicant shall also be communicated to the members 
of the Advisory Committee provided for in para­
graph 2. 
Article 7 
1. The aid referred to in Article 2 shall not exceed 
20 % of the eligible investment expenditure over the 
period for which this Regulation applies. 
No C 264/6 Official Journal of the European Communities 3.10. 84 
2. The maximum aid from all Community sources 
shall not exceed 30 % of the eligible investment 
expenditure on the project. 
Article 8 
1. Payments of aid shall be made by the 
Commission on the basis of the undertaking's 
spending for the eligible project and within the limits 
of the cumulative total set out in Article 7 (2). 
2. At the beginning of each year, the undertaking's 
spending as referred to in paragraph 1 and the total 
amount to be paid by the Commission shall be fixed 
by the Commission on an estimated basis. 
3. The undertaking may request the Commission 
to pay it advances of up to 50 % of the total amount 
estimated for each year. 
4. By 31 January of the year following the 
expenditure, the undertaking shall send the 
Commission the supporting documents relating to the 
performance of the project eligible for aid, a progress 
report on the project and particulars of actual 
expenditure during the previous year. 
5. The Commission shall proceed on the basis of 
paragraph 4 to settlement of the amounts of aid still 
due to the undertaking, or to be reimbursed by the 
undertaking should the advances have exceeded the 
expenditure incurred in the year elapsed. 
6. The untertaking shall compile, and send to the 
Commission, a final technical and financial report on 
each project completed, within three months of 
completion. 
Article 9 
The applicant shall repay the aid granted if: 
(a) the condition specified in Article 4 (b) has not 
been satisfied within two years of completion of 
the investment project; 
(b) the particulars supplied pursuant to Articles 3 and 
5 contain substantial inexactitudes, or the 
investment project is abandoned by the under­
taking. 
SECTION II 
PRODUCTION OF BROWN COAL AND PEAT 
Article 10 
Under the conditions laid down in the Regulation, 
the Community may grant undertakings producing 
brown coal and peat (hereinafter referred to as 'applicants') aid to projects as a financial incentive 
towards investment in brown coal and peat 
production. 
Article 11 
1. To qualify for the aid provided for in Article 10, 
the applicant must make available to the Commission 
the following information for each of the years in the 
period 1985 to 1989 for its undertaking: 
(a) technically exploitable reserves of brown coal or 
peat, subdivided according to grades of brown 
coal and peat and the location of deposits; 
(b) deposits being prepared; 
(c) expected production of brown coal and peat 
respectively; 
(d) estimated sales; 
(e) total investment by the undertaking; 
(f) likely developments in employment. 
2. In addition to the items referred to under 
paragraph 1, the applicant shall provide the 
Commission with particulars concerning financial 
support granted to the undertaking by the 
Community or the Member State concerned in 1984. 
Article 12 
Investment projects shall be eligible for the aid 
provided for in Article 10 if they result in an increase 
in the long-term net production capacity of the 
undertaking. They must relate to: 
(a) the preparation of sites for production; 
(b) installations, machines and building directly 
associated with the production of brown coal and 
peat in bulk or briquetted. 
Article 13 
The applicant shall supply the following particulars 
for each investment project in respect of which it 
applies for the aid provided for in Article 10: 
(a) a detailed description of the project, including the 
expected net increase of the undertaking's total 
production capacity; 
(b) the time scale for carrying out the project; 
(c) the expected total cost of the project, the annual 
investment expenditure and financing arrange­
ments including any known Community aid over 
the period for which this Regulation applies; 
(d) expected production costs for the workings in 
question after the project has been carried out; 
(e) the possible effects on the environment; 
3.10.84 Official Journal of the European Communities No C 264/7 
(f) the possible impact of the project on employment; 
(g) any other information which may justify the 
Community support requested. 
Article 14 
1. When selecting and assessing projects, the 
Commission shall take into account the particulars 
submitted pursuant to Article 11 and 13. 
2. The Commission shall decide whether or not to 
grant the support referred to in Article 10 after 
consulting an Advisory Committee composed of 
representatives of the Member States and chaired by a 
Commission representative. This Committee shall 
receive all information relating to the investment 
project in question except information covered by 
professional secrecy. 
3. The Commission decision being notified to the 
applicant shall also be communicated to the members 
of the Advisory Committee provided for in para­
graph 2. 
Article 15 
1. The aid referred to in Article 10 shall not 
exceed 20 % of the eligible investment expenditure 
over the period for which this Regulation applies. 
2. The maximum aid from all Community sources 
shall not exceed 30 % of the eligible investment 
expenditure on the project. 
Article 16 
1. Payment of aid shall be made by the 
Commission on the basis of the undertaking's 
spending for the eligible project and within the limits 
of the cumulative total set out in Article 15 (2). 
2. At the beginning of each year the undertaking's 
spending, as referred to in paragraph 1, and the total 
amount to be paid by the Commission shall be fixed 
by the Commission on an estimated basis. 
3. The undertaking may request the Commission 
to pay it advances of up to 50 % of the total amount 
estimated for each year. 
4. By 31 January of the year following the 
expenditure, the undertaking shall send the 
Commission the supporting documents relating to the 
performance of the project eligible for aid, a progress 
report on the project and particulars of actual 
expenditure during the previous year. 
5. The Commission shall proceed on the basis of 
paragraph 4 to settlement of the amount of aid still due to the undertaking, or to be reimbursed by the 
undertaking should the advances have exceeded the 
expenditure incurred in the year elapsed. 
6. The untertaking shall compile, and send to the 
Commission, a final technical and financial report on 
each project completed, within three months of 
completion. 
Article 17 
The applicant shall repay the aid granted if: 
(a) the conditions specified in Article 12 have not 
been satisfied within two years of completion of 
the investment project; 
(d) particulars supplied pursuant to Articles 11 and 
13 contain substantial inexactitudes, or the invest­
ment project is abandoned by the undertaking. 
SECTION III 
GENERAL AND FINAL PROVISIONS 
Article 18 
The aid granted by the Community must not affect 
the conditions of competition in a manner 
incompatible with the principles embodied in the 
ECSC and EEC Treaties. 
Article 19 
The aid provided for by this Regulation shall be 
granted within the limits of the appropriations 
entered in the general budget of the European 
Communities for this purpose. 
Article 20 
This Regulation shall be supplemented by a 
Commission Regulation specifying the details 
governing the implementation of the scheme and with 
particular regard to Articles 2, 4, 10 and 12. 
Article 21 
The Commission, the Court of Auditors or persons 
empowered by them shall have access during the 
course of the investment project, and for five years 
after its completion, to information relating to each 
investment project for which aid has been granted. 
All documents relating to the investment shall be kept 
for the same period. Checks on documents and, 
No C 264/8 Official Journal of the European Communities 3. 10.84 
where necessary, on-the-spot checks may be carried 
out throughout the whole of that period. 
Article 22 
The Commission shall report regularly to the Council 
and the European Parliament on the application of 
this Regulation. 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, 
Having regard to Council Regulation (EEC) No 
3331/82 ('), and in particular the first, fourth, 
fifth, sixth and seventh indents of Article 4 (1) and 
(2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas, in order to implement Regulation (EEC) 
No 3331/82, it is necessary to determine the total 
quantities of each product to be supplied under the 
food-aid programmes in compliance with the 
Community's international commitments; 
Whereas the Community has entered into certain 
commitments under the Food Aid Convention; 
Whereas the Community also entered into certain 
commitments under a Convention concluded with the 
United Nations Relief and Works Agency for 
Palestine Refugees (UNRWA) (2); 
Whereas a list of the countries and organizations 
eligible for food-aid operations should be drawn up 
without prejudice to emergency operations; 
O OJ No L 352, 14. 12. 1982, p. 1. 
O OJ No L 188, 16. 7. 1984, p. 17. Article 23 
This Regulation shall enter into force on 1 January 
1985. 
It shall apply until 31 December 1989. 
The Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
Whereas provision should also be made for the 
possibility of making food aid available to non­
governmental organizations, whereas the latter must 
meet certain conditions guaranteeing the successful 
execution of food-aid operations; 
Whereas the basic and derived products which may 
be supplied under food-aid operations should be 
determined by taking account, in particular of the 
available stocks of the products in question; 
Whereas general criteria should also be established 
for the transport of food aid beyond the fob stage, 
taking into account the financial and geographical 
situation of the countries concerned and the channels 
and intermediaries via which the aid will be 
dispatched; whereas account should also be taken to 
this end of the need to ensure that the effectiveness of 
the food-aid operations is increased; 
Whereas, in order to ensure that the objectives of 
food-aid operations are attained, it is furthermore 
necessary to stipulate that aid is granted only where 
the recipients undertake to comply with the supply 
terms laid down by the Commission; 
Whereas the methods of mobilizing, transporting and 
delivering the products should be specified; whereas it 
is also necessary to determine the procedure for 
mobilizing the products outside the Community; 
Whereas the Commission must be able to take all the 
measures necessary for the proper execution of 
food-aid programmes and operations; whereas, to 
this end, Member States must provide the 
Commission with all the assistance required and, in 
particular, with all relevant information; Proposal for a Council Regulation laying down implementing rules for Regulation (EEC) 
No 3331/82 on food-aid policy and food-aid management 
COM(84) 481 final 
(Submitted by the Commission to the Council on 13 September 1984) 
(84/C 264/05)