ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77)127
V ol.1977/0049

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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(77)127 final .
Brussels .12April' 1977 *
/
MEMORANDUM
i *
on.οn ν
•thefinancial aid awarded "by -the Member States tothe
coal industry in
1976
COM(77 )127final .
\
\
//'

CO'MISSJON
OFTHE
EUROPEAN COii'ilJMITIES
MEMORANDUM
on
thefinancial aidawardedbytheMemberStatestothe
coatindustry in1976

LIST OF CONTENTS
iare
C'fATT"I
Introduction
CHAPTER II
General trends inthe coal market and the situation inthe
Community 'scoal-mining undertakings in1^76
CHAPTER III
Financial aid nolj related tocurrent production
A*Description and assessment offinancial measures inthe
social security sector
A^)Germany ,Belgium ,Prance
A0)United Kingdom
ApSummary offinancial measures inthesooial security seotor
B.Description and assessment offinancial measures tocover
inherited liabilities
B^)Federal Republik ofGermany
B^)Belgium ,France ,United Kingdom
B,)Summary ofmeasures tocover inherited liabilities
CHAPTER IV •
Financial aidrelating tocurrent productiony
11
12
12
12
14
16
17
A*Indirect financial aid tocurrent production inthe coal-mining
industry 17
A^)Description ofGerman ,Belgian andFrench measures 17
Ap)Assessment ofindirect finanoial aidtothecoal-mining
industry , 18
A,)Summary ofindirect measureB 18
B.Direct financial aid tocurrent production inthe coal-mining
industry
B.)Federal Republio ofGermany
Bp)Belgium
B,)France
B^)United Kingdom
CHAPTER V
Summary and conclusion
Statistical Annex18
19
23
28
31
34

CHAPTER I
INTRODUCTION ANDSUMMARY
„_..lfl,,-,.1empowered theCommission toauthorize suchfinancial1.Décision N°3/71
aidsbytheMemberStatesfortheCommunity'scoalindustry aswouldfa-
i
cilitate :
-rationalization ofproduction anditsconcentration onthepitsbest
fittedtosupplytheCommunity withenergy;and
-thecontinued adjustment ofproduction tothestateoftheenergymarket
insofarasthisdidnotleadtoseriousdisturbances ineconomic and
socialconditions inregionswherethedevelopment potential isasyet
insufficient .
2.Thepursuitoftheseaimsoveraperiodoffiveyears(1971-75)furthered
rationalization anddecreased production tomeetmarketconditions .There
wasvirtually noinvestment innewproduction capacity .
3.Since1973eventsontheworldenergymarket,particularly theoilmarket,
havecreated anewsituation fortheCommunity .Thepriceofenergyhas
shotup,andconsiderable problems ofsecurity ofsupplyhavearisen.The
Commission andCouncil havedrawnattention totheneedformeasures to
reducedependence onenergyimports asfaraspossible,i.e.toincrease
domestic supplies.
WheretheCommunity'scoal-mining industryisconcerned,theCommission
therefore considersitappropriate tostabilize production whiletaking
intoaccountthenatural andtechnical situation intheindividual fields
2undersatisfactory economic conditions •
OJof5.1.1971,page7
Medium-term guidelines forcoal1975to1985,OJNo.C22of30.1.1975

-2-
'–.1 1Atthe sessions of17December 1974 and 13February 1975 ,the Council
also resolved that the Community 'scoal production should bemairtained
atitscurrent level under satisfactory economic conditions .
4.Inview ofthese new energy policy directives ,anew basis hadtobe
created inorder tohalt the present contraction ofthe coal-mining in­
dustry and achieve the aims detailed above .Inautumn 1975 the Commission
submitted tothe Council adraft decision inorder toobtain the Council 's
approval .Aftefr approval bythe Council the Commission pi-blished in
the Official Journal of 11 March 1976,Decision N° 528/76/ECSC
regarding the'Community system ofmeasures taken bythe Member States
.toassist the coal-mihing industry .
5.On23October 1976,inaddition toDecision N°528/76,andafter con-
2suiting the Council ,the Commission published Decision N°2514 /76/ECSC .
The aim ofthis implementing decision istoachieve greater comparability
between the annual communications from the Member States tothe Commis­
sion and make iteasier forthe Member States tocalculate what sums they
may grant 1naid.
6.The new system ofaidtoapply for aperiod often years ,came into force
on 1January 1976 .Inbasis and structure itdiffers entirely from De­
cision N°3/71.There istherefoife nocommon denominator for comparing
the sums inaidset out inthis memorandum for 1976 andthose granted
for 1975 .
Inaccordance with Decision N°528/76ttje following text distinguishes
between aidnotrelating tocurrent production (Chapter III)andaid
relating tocurrent production (Chapter IV). • n
"oJN°C'153of?.7.1975
20JV olume 19N°L292of23.10.1976 *page 1

The aids dealt with inChapter III are social security measures to
cover inherited liabilities arising from the closure ofpits inprevious
years .
«
The fact that the previous statistical treatment ofaids was discontinued
bythe new 1976 decision does not mean that all the Member States have
proceeded tointroduce entirely new measures .Onthe contrary ,almost all
the measures taken in1976 are acontinuation ofmeasures already applied
in1975,the only difference being the aim and the larger sums involved .
Thetotal sum ofaidtocurrent production for the Community asawhole
1sgiven inthefollowing table .

-A-
A.LegaL basis pursuant toDécision N°528/76 Million EUA EUA/t
1.Infringements ofArticle A , 30.5 !0.12
2.Infringements ofArticle 5 - -
3.Indirect measures 37.0 0.15
A.Direct measures 661.7 2.67
thereof ,:Article 7(Investment aid) 110.8 0.45
Article 3(Aid tofinance training ) A3.8 0.18
Article 9(Aid for producers *stocks 36.0 0.15
tocover fluctuations in
demand )
Article 10(Aid tosecurity stocks ) 27.6 0.11
Article' 11 (Aid tosteamcoal for 2.5 0.01
power stations )
Article 12(Aidtocover losses ) 441.0 1.77
Total (A) 729.2 2.94
B.Aid tocoking coal pursuant toDecision N°73/287 A9.7 0.20
Total (A+B) 778.9 3.14
The aid referred toinpoints 1and 2ofthe table concerns measures in
respect ofsocial security systems (Article 3)and the covering ofinherited
liabilities (Article 5).Aidtocurrent production includes only those sums
which actually exceed the undertakings' liabilities .

-5-
8-Under Article 2(1)dDecision N°528/76the Member States must inform the
Commission not Later than 1November each year ofthe measures they intend
tointroduce inthe following year,including forecasts ofavailabilities
anddispositions ofcoal.' Inview ofthe new decision ,N°528/76,thedeadline
setfor communicating the said measures is30June 1976 (Article 2(2).
The Commission notes with regret that none ofthe Member States metthis
deadline .Submission ofthis memorandum tothe Council has been greatly delayed
inconsequence .The Comrtission draws theattention ofthe Member States to
thefact that adelay inthenotification could lead tothe consequence that
theaids might not beapproved .According toArticle 6,§3ofDecision N°
528/76,theaids cannot bepaid without the Commission 'sagreement .Inthe
contrary case there would beaviolation ofCommunity law.Itisconsequently
inthe Member States' owninterest tomake apoint ofmeeting the deadline
laid down inDecision N°528/76.
9.Pursuant toArticle 2(2 )ofDecision N°528/76the Commission has received
communications onmeasures due tobeadopted 1n1976 from the Governments
ofthe following Member States
•from the Government ofthe Federal Republic ofGermany
communications of 28June 1976 and
19October 1976
-from the French Government
communications of26September 1976
14February 1977
~from the Belgian Government .
communication of17November 1976 . .
-from the Government ofthe Netherlands
communication of5October 1976
-from the Luxembourg Government
communication of18August 1976
-from the United Kingdom Government
communications of16June 1976,
25October 1976 and
4November 1976
-from the Irish Government
communication of15July 1976
-from the Danish Government
communication of31October 1976
The Commission hasreceived nocommunication from theItalian Government .

-6-
10.Anyinformation comingundertheheadingofprofessional secrecy
ascovered byArticle 47oftheECSCTreaty,andincluded inthe
economic datasubmitted inthecommunications oftheMemberState
Governments ,wasnotincorporated inthisreport.
11.Forthepurposeofcalculating sumsinaidpertonneofoutput,the
estimated 1976outputassupplied bytheMemberStates'Governments
9
wasusedasabasis(SeeAnnex,Table4).
12.Thefollowing ratesofexchange wereusedforconverting sumsgranted
inaidexpressed innational currencyintoEuropeanunitsofaccount
1EUA =Bfrs44.3
« DM2.90
* FF5.21
•£0.59
13.Theconclusions oftheCommission aresetoutinChapterV.

-7-
CHAPTERII
Generaltrendsinthecoalmarketandthesituation inthe
Community 'scoalmining undertakings in1976
Thismemorandum doesnotgointothedetailsoftrendsinthecoalmarket;
onlythemostimportant factorsaredealtwithandonlyinsofarasthey
affectthegranting ofaidandthesituation asregardscompetition .
Comparedwith1975,demandforcoal,roseslightlyin1976.Thisispartly
duetoatemporary improvement intheeconomicsituation inthesteelin­
dustryandpartlytothefactthatpowerstations increased theircoalburn
asaresultofincreased electricity consumption andbecauseofthesummer
drought.Theriseindemand,wasrelatively smallhowever sothatitproved
possibletoreduce,butnotuseup,the1975surplusin1976.Asaresult,
coalandcokestocksheldbyCommunity producers rosetotheunusually high
levelofcover50milliontin1976.IntheFederalRepublic ofGermany
alonestocksattheendof1976wereashighas12milliontcoaland12
1milliontcoke.
Inviewofthelimited scopeforfurtherstocking ofcurrentproduction
theCommunity 'sproduction hadtobecutfrom256milliont(1975)to247
milliont(1976)-seeAnnexTableA).Bycontrast (andtakingthe
Community asawhole),importsofcoalfromnon-member countries rose
slightlyin1976compared with1975(+1milliont).Trendsincoal
importsdiffered fromMemberStatetoMemberState-intheFederalRepublic,
theUnitedKingdom andItalycoalimportsdecreased,whilstimportsofcoal'
fromnon-member countries intoFranceandBelgiumincreased .
Expressed intermsofcoalthisisequivalent toapproximately 16milliontcoal.

-β-
Totals for intra-Community trade incoal and coke will belower in1976
than in1975 <see Annex ,Table 3forfigures onintra-Community trade in
coal ).
Financially ,undertakings were ingreater difficulties than in1975 .
There were heavy cost increases asaresult of:
(i)wage 'sincreasing disproportionately faster than productivity ;
(ii)prices ofmining material and equipment rising ;
(iii)high cost ofholding pithead stocks .
Cost increases were only partly beabsorbed byprice increases sothat
undertakings had lower revenue in1976 than in1975 .
Particular attention isdrawn tothefact that everything points tothe
difficulties inthe coal market in1975/76having been due chiefly to
short-term economic causes .Through grants inaid in1976 the Member
States'Governments contributed towards maintaining productive capacity
inthe Community 'sgood coalfields .Only marginal collieries were closed
down .Decreases inthe output ofundertakings in1976 was duetointernal
measures introduced with the aim ofachieving abetter balance inthe market
andpreventing asfar aspossiblle anincrease inpithead stocks .

CHAPTERIII
Financial aidnotrelated tocurrent
production
«
Theseaidsconcernsocialsecurity measures andthecovering ofinherited
liabilities arisingfrompitclosures inprevious years.
A.Description andassessment ofthefinancial measures inthesocial
security sector
UnderArticle 4ofDecision N°528/76,Stateinterventions inthefinan­
cingofsocialbenefits areconsidered compatible withthecommonmarket
wheretheireffectistobringtheratiobetweenthechargeperactively
employed mineworker andthebenefits peprecipient downtothelevelof
theratioobtaining inotherindustries .
Thefollowing textrefersonlytofinancial measures inthesocialbe­
nefitssectorand,wheretheyarise,toinfringements ofthelimitsset
inArticle 4ofDecision N°528/76.
.A^)GERMANY,BELGIUM,FRANCE
Germany hassetaside DM6387millionfor1976tocoverthedeficit
intheinsurance ofsurviving dependants forthewholeminingsector
approximately 80%(DM5110million)Isallocated tothecoalin­
dustry.
Stateexpenditure onwelfarebenefits in'theBelgiancoalindustry
canbeestimated atBfrs20310.4millionfor1976.Thefollowing
tablecontains thedetails ." '

-10-
Source Amount ofState
subsidies
(million Bfrs )Purpose
State 8448.0 1 Old-age pension and insurance ofsurviving
dependants
» . ·1Regular statutory contribution
State 1150.8 Old-age pension and insurance ofsurviving
dependants
Contribution tocover the deficit
State 4550.0 Disability pensions insurance
Disability pensions
State 6161.6 Occupational diseases
50% ofthe expenditure arising from
miner's pneumoconiosis
Total 20310.4
1Commission estimate
According toinformation provided bythe French government ,State expenditure
onwelfare benefits inthe French coal-mining industry will amount toFF
4420.6 million in1976 .The following table contains thedetails
Source Expenditure
(inmillion FF)Purpose
State
General
system
General
system
General
system
State
General
system
Total2132.0
275.0
735.0
471.0
448.6
359.0
4420.6Disability and old-age pensions insurance
Regular contribution amounting to227.of
wages subject tocontribution ,and addi­
tional State adjustment
Disability and old age pensions insurance
Regular contribution tocover part of
"exceptional expenditure "(amount fixed
bylaw)
Insurance against industrial accidents
andoccupational diseases
Regular repayment ofinherited liabilities
Sickness insurance
Treatment benefits
Pisabi lity and old-age pensions insurance
"Exceptional expenditure "incoal-mining
industry within the meaning ofArticle 4
ofDecision N°528/76
Supplementary scheme :workers' retirement
pensions

11-
Calculations bytheCoranission ortho f.ovcjrr.ments reveal .T-'T.vtr.e
Federal Republic ,Belgium iir,t'France bavo r.ol o.<cc.G;?ed ibolimits
setinArticle CofDecision No528/76:
1 1
(i)IntheFeaora.1 Republic +,heundertaking *actual welfare expen­
diture isDI'640 million (16*3',' )higher then thenormal oxrier.^i -
ture defined inthe Artiole 4.
(ii)InBelgium theundertakings 1actual social expenditure ,isPfrs
million higher than thenormal expenditure defined inAr­
ticle 4.
(iii)InFrance theState subsidy toChaxbonnages deFranco (FF4<',S.6
million )means that actual social expenditure and normal expen­
diture coinoide .
A2)UNITED KINGDOM
Apart from thegeneral social security system into which the coal
industry is .integrated ,theUnited Kingdom possesses aspecial fund
forpaying additional benefits toformer miners .TheBritish govcrn -
•ment will pay &18.0 million into thefund inthe 1976/7?coal mar­
keting year .This isthe amount bywhich pensions payments toformer
miners arehigher than the expenditure incurred bytheNational Coal
Board andthelimits setinArtiole 4ofDecision No528/76are con­
sequently exceeded .
oJ
Article 60ofthe EGSC Treaty states that the methods used forfixing
welfare benefits shall not beaffected bythe Treaty ifachange inthe
arrangements forthefinancing ofsocial security does not produce eny
oftheeffects mentioned inArticle 67(2 )or67(3 )si*e.ifthechange
inthe arrangements offinanoe does not provoke aserious disecjuiliVirium .
Inthese ciroumstances ,theeffects oftho 18.0 million onthe compe­
titive position ofBritish coal inthe Community must besubjected to

-13-
anexamination embracing allaide .Theexamination conducted inChapter
IIIrevealed that th«British aids donot disturb the proper fur.clioriir.f :
ofthe common mar^.
A^)Summary offinancial measures inthesocial security sector •.
AsTable 1intheAnnex reveals ,State intervention inthe social secu­
rity sector ofthemining industry will amount toapproximately 3099.6
million EUAfortheCommunity in1976 (notincludinpthe United Kin^om ).
B.Description and assessment ofthe financial measures tocover inherited
liabilities
Pursuant toArticle 5ofDecision No528/76measures taken byMember States
toassist undertakings tocover thecosts arising from pitclosures which are
notrelated tocurrent production andthesale ofcoal shall becompatible
with the common market provided that theamounts ofsuch measures donot ex­
ceed theamount ofsuch costs ,i.e. theinherited liabilities .Anysums in
excess oftheabove represent direct aidtocurrent production andaretobe
regarded asaid .pursuant toArtioles 7-12 ofDecision No528/76.
B^)Federal Republic ofCermany
For1976 "theFederal Government hasplanned thefollowing measures to
cover inherited liabilities t
'million W
i ii • •'
Aktionsgemeinschaft scheme J
Closure premiums :> n 37#5
Dispensation from obligations arising under the
Equalization ofBurdens Law 2?.5
. Sub-total . . 60.0
Aidforwater-control costs 67.5
Aidtocover expenditure resulting from contraction 71.2
Aidtocover inherited liabilities 187.0
Aidtocover theRAG *eclosure write-offs 48.0
Total 4^3.7
(«149»6million 0)A)

-13-
Alltheabove liabilities represent liabilities inherited bytheunder­
takings ,i.e. those resulting from theclocure ofpits inprevious yenrr ,
andtherefore donetrelate tocurrent output .
1
These measures constitute aids also granted inprevious years .
Through theAktionspjemeinFcliaf tDeutnchcr Stein)'.onlen'.:crpbau (association
ofGerman coal-mining undertakings ),theFederal Government pays theunder­
takings concerned apremium ofDM20/tofannual capacity forallclosures
undertaken in1976 .These closures areundertaken torationalise production .
Theaidcovers only asmall fraction oftheactual costs that have toV.e
borne byundertakings inconnection with closures .
Thepublic authorities will payDM22.5 million totheequalization of
burdens fund asaidtocover the equalization ofburdens payments ,and
thereby release closed pits from their obligations .Thelevel oftheaid
isequivalent tothecosts charged .
ThesumofDM67.5 million forwater control costs will bepaid tothe
Ruhr-mining industry specifically tocover thefinancial burden arising
from closures sinoe 31December 1966 .Asaresult ofpitclosures ,the
Ruhr coal-mining industry bore aheavy burden intheform ofconstantly
rising contributions towater control associations andthePumpgcmeinschaft .
Ruhr (Ruhr pumping association ).Theaiddoes notexceed theactual addi­
tional oosts tobeborne byundertakings .
ThesumofDM71.2 million tocover expenditure resulting from contraction
isadditional totheclosure premiums which (asmentioned above )donot
cover actuali 6osts ofclosures .This measure concerns liabilities arising
outofpitclosures since 31December 1972 .Theaid iBspread over aperiod
offive years inthe form' ofaflat-rate payment ofDM30forevery tor.ne
bywhich annual capacity iereduced ,butnotexoeeding actual oosts borne
byundertakings asaresult Oftheolosures * '
II!.' .·■.■· I
Μ: ;I
X

-14-
The Bum of DM107.0 million asaid for covering inherited liabilities
oonooms thbEO inhoritcd liabilities arising from pit closures beTore
1January 1V73 .Ine relevant German laws ensure that the aid doeG not
exceed actual liabilities borne byundertakings .
The sum of DM48.0 million asaid towards closure write-off «o;..^
concerns Ruhrkohle AG.Inprevious years the Ruhrkohle AGhas had to
inolude depreciation for assets lost asaresult ofpit closures which
could not ,however ,beincluded intheprofit andloss account since
this would have bankrupted theundertaking .Aspecial item wasthere­
fore introduced onthe assets side ofthe balance sheet and on31
December 1975 this amounted toDK731 million .
Because ofthe unfavourable economic situation ,theundertaking isnot
inaposition towrite offthis special item inannual' instalments ar.d
thepublic authorities have therefore agreed totake over DK480million
ofthetotal sum-payable in10equal annual instalments of DM48million .
Allthe above measures show that therequirements ofArticle 5(1)of
Deoision :Ko528/76aremet.Thetotal suminvolved in ithese measures
in1976 |is149*6 million EUA andisinoluded inTable 1ofthe Annex .
B)BELGIUM .FRANCE ,UNITED KINGDOM
n I
For 1976 ,;theBelgian Government hassetaside asum ofBfrs 33r.illion
(0.9million EUA)as ;&idtowards covering inherited liabilities inits
Southern coalfield .Ofthis sum Bfrs 12r&illion isto .beused tocover
damage from subsidence andBfrs 26million tocover water control charges .
The Commission >;estimates that the costs arising out ofsubGidc.-.ce
andwater control following pitclosures ,for which undertakings inthe
Southern :coalfield areresponsible ,arethe same asthe sum granted in
aid. .■;i r. ■•1;- i".
■··1 ' ''ΐ:λ .·'' > ·
i.; ■i *.
r ' •1 . 1 f '
>■, • I- 'I
.1; :i ' f ■ ;i
; ■ il . I :! <:
'' '!l 1: . i"
; i :: ! >1 ::

For 1976 ,theFrench Covcrr .rr.cnt har-:allocated asumofF7 ir;5IIion
(51.3 million SUA)asaid .toward3 covering inherited liabilities borr.o
Charbonnages doPrance .This suminaidisintended tocover ti-.c foilowin
inherited liabilities : 1
Million FF
Contribution toearly retirement pensions 3.0
Premiums ,lump sums forretained personnel ,cost
ofhoue tgforthose retiring early 'i'i.6
Financial liabilities inrespect ofthoBQ retiring
early 211.7
Concessionary allowances forthose retiring early 7.3
Total 267.43tîs:::r.r.sr!=e
Broken down between coalfields asfollows :
Nord/Pas -de-Calais 171.>
Lorraine 2%4
Centre-Midi 70*5
t'h«Commission estimates that the actual liabilities borne bythe
Charbonnages deFranoe are the same asthe sum granted inaid.
In1976 theBritish Government planned tointroduce thefollowing
measures under Article 5ofDecision No528/76:
Killion 1»
Redundancy payments tominers affected bypit
olosures 4.9
Early retirement payments 1.4
Aid inrespect ofconcessionary coal for
pensioners 3.3
Total 9.6
(16#3million EUA)
TheUnited Kingdom measures cover inherited liabilities arising outof
pitclosures )these liabilities arethe same asthe sumgranted inaid

-16-
Tosummarize ,itcanbesaid that theBelgian ,French andUnited Kin t~
dommeasures listed above meet theoritera ofArticle 5(l)of'Decision
No528/76.
B^)Summary ofthemeasures tocover inherited liabilities
Ascanbeseen from Table 1oftheAnnex ,theplanned state aids tocover
inherited liabilities in197 <>will total 218.1 million EUAforthoCox­
/
munity asawhole .

-17- XVII/X7/T7-
Cîî/.Fi'H' IV
Financial aid relating tocurrent nronut:t\oi'
All aids that are .rot cocial mffisures within the meaning ofArticle <*cfTecisioj .
No528/76,oraids tocover inherited liabilities within themeaning ofArticle 5.
are aicb tocurrent production .Aids tocurrer.t production are i.'.<r:.ui.iu :Vr --.thie­
ving theaims eetoutinArticle 1ofDecision No523/76andforassessing the
relative competitive position ofCommunity coal producers .
Aid tocurrent production may begranted directly orindirectly toundertaking .
A.Indirect financial aid tocurrent production inthe coal r.inin /-:ir.dnrtry
Indirect finei.cial aid covers all measures which Member governments announce
inaccordance with thefirst paragraph ofArticle 2(l)ofTecision I'o^0/76
but whioh donot come into the category ofthedirect .measures defined in
Articles 7to12ofthe Decision ,Indirect measures are reported tothe
Commission under Decision No528/76andassessed according totheprovi­
sions ofthe ECSO Treaty .
Only Germany ,Belgium and Prance have announced indirect aid tothe coal
industry for 1976 .Nonew measures have been taken .
A^)Description oftheGerman ,Belgian andFrench measures
Germany proposes thefollowing measure in1976 :
Lawtopromote theutilization ofcoal inpower stations
(1stElectricity Generating Law).Frobable reduction in
taxrevenue : ,DM55.0million
«LUI ,

-la- XVII/1T/77-F
Theindirect finr.nc-.iol measures planned "bytheEel /rian f^verncrr.c.nt
in1976involve thofollowing sectors :
Expenditure onseason 1.ickets orcheap holiday tickets :
for miners ,pneumoconiosis sufferers Bfrs 10.0million
Subsidies tothe Miners' National Pensions Fund tocom­
pensate fornewexpenditure onwelfare arising from
)the increase intheminers' annual holiday allowance ,
theintroduction ofnew tickness benefits and longer
annual holiday (Article 32.12 ,Article 32.14 aridAr­
ticle 0104 intheiiconomic Affaire Ministry 'sBudget ) i'fri'"l»3 million
Total ?fra5Ê9.3 millionlits aa- i^se *.x*rassi
TheFrench government plans aState subsidy ofFF26.0 million forthe
research programme ofthe "Centre d'Etudes etdeRecherche6 desChar-
bonnages deFrance (CERCHAR )"in1976 .
Ag)Assessment ofindirect financial aidtothecoalindustry
The Commission has examined the aboverr.entioried measures which have
already been inforce forseveral years anddoes notconsider that
they violate thebanonsubsidies setoutinArticle 4oftheFCEC
Treaty .
A^)Summary ofindirect measures '
Table 2ofthestatistical annex gives therelevant figures under
A/lI.Asumof37*00 million EUAhasbeen setaside in1976 forin­
direct aidtotheCommunity 'scoal-mining industry
B.Direct financial aid tocurrent production inthecoal-mining industry
Inaccordance with theprovisions ofDecision No528/76,direct aidto
current production includes allmeasures based onArticles 7**12.
..J
m

-19- XVn/17/77-E
Uj)Federal Kopnblic ofGermany
a)T'n?extent towhich direct fir.r-ncial aidtocurrent ;vro:l-;o tior .Lr.tnn
.Ccrman coal –relnirir industry iecompatible with the provisions of
Articles 7-1?ofDecision No526/76
In1976 the Federal Government will retain thedirect aid ir.esurcs that
were inforce 1974/75and &dclanew one.Thefollowing measures are
involved :
I.egal basis
under Dec.
No526/76KeasureArr.ount ofaid
Total Fer toine ofrroí :.?i.
Million
r:'λiIlion
FUADK FUA
Art.7(1)
Art.7(3)
obs ,3Investment aid
Promotion ofinnovation273.0
32.894.1
11.32.SC
0.2 el.CO
C.12
Art.8 Kineworkers' bonuses 115.0 39-7 1.22 . 0.¿2
Art.10 Aid tosecurity stocks 80.0 27.6 0.6: 0.29
Art.12 Cover for RAG's amortization
instalments 67.2 23.2 0.71 O.25
Total Articles 7-12 568.0 155.9 6.02 2.CS
The .investment aid of94*1 million EUAisintended for investment projects
inpits ,coking plants ,briquetting plants andpithead power stations .In
1976 ,total investment inthe .German coal-mining industry will come to
over 300million EUA.Investment aidwill represent 25-30£ oftotal in­
vestments *
Inrelation tothe Community 'snewpolicy for coal ,this investment aid
istoberegarded asbeneficial since itwill promote the long-term
stabilization ofproduction inthe German coalfields .The aid complies
with theprovisions ofArticle 7(l)ofDeoision No328/76.

-20-
The sum of11.3 million lUA topromote innovation j,.;i i;.o
ensure that res**..uuresults art applied toproduction asquickly
aspossible .The aid covers just under half ofthecosts borne by
undertakings andisgranted inrespect ofindividual projects which ,
when completed ,are likely toprove their eoonomio worth c;oox-
mining inthe medium -term .The purpose and amount ofthis aid show that
itiscompatible with sub-section 3ofArticle 7(3)ofDecision
No528/76.'
Mneworkers *bonuses ,amounting to39»7 million EUA ,have been in
application since 1956 .Abonus of DM5ispaid for every shift
worked underground ,thus ensuring that the qualified personnel
required ifGerman coal-mining istoincrease its output isre­
tained .The measure therefore corresponds with the provisions of
Article 8ofDecision No528/76.
The sumofDK27,6 million asaid towards building uplong-term
seourity stocks isanew measure introduced bythe Federal Govern­
ment ,which has decided that areserve of10million tofcoal ar.c
coke istobelaid down inorder toincrease the lor.p-term security
ofenergy supplies .The intention istherefore for the Kotgemein -
schaft Deutacher Steinkohlenbergbau (emergency association ofGerman
coal mining industry undertakings )tobuyup10million tofcoal
and coke and the Federal Government tocover actual running costu
formaintaining these stocks bygranting asuminaidofDM60
million ,i.e. ,amaximum 30$ofcosts .The aim and suminvolved
show that the measure meets therequirements ofArticle 10of
Decision No528/76.

-21-
Itwas intended that in1976 thepublic authorities should take
over thePAS' 3(Ruhrkohle AC)compensation payments totheforner
owners ofitspits and pay asumofL\"6"[.2 million .Tne foTtt.nr
owners ofthepits possess state-guaranteed claims against the
RAGdating back totheyear thelatter wasfounded (1969).Since
thefinancial position ofthe RAG means that itcanr.ot ;>a,yi.i.c
suminvolved (67.2 million DJ>*)aclaim based onthis guarantee has
been made onthe publio authorities .The documentation onthe ccst
andprofit position ofthe RAGcollieries during thefirst six
months of1976 shows that costs were slightly higher than profits
(depreciation andinterest onits owncapital being inoluded in
thecalculation ).Theresulting operating losses aregreater than
the sum granted inaid.
OnaCommunity basis the Ruhr coalfield isregarded asanefficient
area .The aim ofthe aidistoprevent losses increasing tosuch an
extent astoendanger the existence ofthe undertaking and there­
fore shpws that this measure meets thecriteria ofArticle 12(l),
sub-section 2,andArticle 12(2),sub-section 2.
b)Theextent towhich direct measures infavour ofcurrent production -,
inthe German coal-mining industry are compatible with the proper
functioning ofthe Common Market
Anassessment ofthe extent towhich Cerman aids are compatible with
the proper functioning ofthe Common Market requires consideration
ofalldirect andindirect aids forcurrent production in1976
(Artiole 3(2)ofDeoision No528/76).
Therelevant figures are given inasummary table (seeStatistical
^ Annex ,Table 2).
Bythis method ofcalculation »thetotal proposed aid under the
German measures amounts to223«5 million EUA,i.e. ,2,38 EUA/t.

-77-I
Compared with other Member T-tatoc ofthe Community ,current :>roriuc -
tion 1Brooro heavily subsidized (pertonne )intheFederal f-\; -vlic
ofGermany thajr )intheUnited Kingdom andvery much less heavily
subsidized than inFrance and Be]p.um . 1
The following points must beestablished when considering U.eextent
towhich thetotal amount ofGerman aid ia compatible with the proper
functioning ofthe common market t
(i)Thelarge pithead ptocks ofcoal andcoke make supply
problems unlikely .
(ii)Deliveries ofGerman coal toother Community countries will
drop slightly compared with 1975 as "theupturn inthesteel
industry isinsignificant . ■' ;
(iii)Prices for German steam coal andcoking coal were asfollows
(valid without change in1976)t(DW/t)
Steam coal
RAG 157.50
Saarbergwerke •173.00
Coking coal
RAG 165.5C
Saarbergwerke 180.00
Aachen 167*50
^Bituminous coal nuts 5
Steam-coal prices are much higher than the equivalent prices of
heavy heating oilbut arestill paid bythe power stations asthey
canuse thethird electrioity -from-coal law tooover their
extra costs due totheir using coal byraising electricity tariffs .
Prices ofcoking coal are equivalent tothose ofimported coking
coal under long-term supply contracts * '

-23-
German aidtocurrent production therefore does not lead toindirect aid i
toinduGtrial users ofcoal .
In1976 ,rationalisation ofproduotion will continue ,with major in­
vestments andthe olosure oftwo marginal pits .
The above details show that theaids tocurrent production inthe j
German coal-mining industry in1976 arecompatible with theproper ;
functioning ofthe common market (Article 3(X)ofDecision No5*8/76) I
Bg)Belgium
(a)Theextent towhich direct financial aidtocurrent production inthe
Eelrian cos.l-aining industry iscompatible with the provicions of
Articles 1–12 ofDecision No528/76
In1976 theBelgian Government plans tomaintain direct aids granted
inprevious years andtointroduce anew one.The following direct aids
are tobegranted t
Lcfral basis under
Decision ÌJo528/76MeasureA*aou::t ofaid
Jot ,ai !'cr tor.r.e of
I-'illion
EfrsMillion
EliΛBfrs EUA
Art.7(1) Investment aid 24I.3 5.4 32 0.72
Article 9 Aid toproducers' stocke 467.5 10.6 62 1.41
Article 12 Aid tocover losses
Coal field :Campine
Southern
Total225O.2
2729.250.8
61.6360
194?P.33
¿4.0
4979.4 112.4 664 14.99
Total 5688.2 128.4 758 17.12

«
•»24 "•
Inaddition totheabove aide ,acoking-coal aid (Decision No73/287)
ofBfrs 1606.0 million (36.3 million 1*JA)istobegranted tocurrent
production intheCampine coalfield .Taken together ,Belgian direct
aidamounts toatotal ofBfre 7294.2 million ,allocated asfollows
between the two coalfields :
Campme :
Bfrs 4553.7 million <=Bfrs 747/t
Southern :
Bfrs 2740.5 million =Bfrs 1958/t
^Potal :
Bfrs 7294.2 million =Bfrs 973/t
OftheBfrs 241.3 million investment aid ,Bfrs 230.0 million went on
theCampine coalfield andBfrs 11.3 million ontheSouthern coalfield .
The aid totheCampine coalfield hasbeen sodetermined astocover
depreciation ,toenable this field tomaintain itscoking coal produc­
tion which isessential fortheBelgian steel industry .Theinvestment
aidtotheSouthern coalfield permits thecarrying outofonly themost essen­
tial repairs required toavoid jtap'ordizing thetechnioal safety ofthe
pits .
Hence Belgian investment aidoomplies with theprovisions ofArticle 7/l)
ofDecision No528/76.
Only theCampine coalfield istoreceive aidtoproducers' stocks ,the
suminvolved being Bfrs 467*5 million .Stooks held inthis coalfield ,
whose sales were affeoted bytheslump inthesteel industry ,will be
approximately 1.3million tin1976 .Ofthis ,0.8million tcanbore­
garded asqualifying fortheaidreferred toinArticle 9(2)ofDecioion
No528/76^".Therateatwhich aidispaidwilltherefore beBfrs584/t.
Monthly production intheCampine coalfield isabout 0.5million t.
With total stocks at1.3million t,this means that 0.8million t
qualify foraid.

-25-
Costs canbeestimated atDfrs 640/t(inoluding dopreoiatiori and
interest ).Theaidforproducers' stocks ,therefore ,alco complies
with therequirements ofArticle 9(3)ofDecision No528/76.
Aidtotalling Bfrs 4979.4 million tocover losses ispaid toboth
Eelgian coalficldn fordifferent reasons .The amount ofaidpaid to
cover losses inthe Campine coalfield will make upthedifference
between costs andrevenue ,with ooking-coal aid ("Bfrc 1606.0 million )
included .The difference between costs and revenue has tobealmost
totally covered because itisintended that this coalfields should
provide coking coal supplies fortheBelgian steel industry and must
therefore maintain its output .The purpose and amount ofaid granted
tocover losses inrespect ofthe Campine coalfield therefore comply
with theconditions ofArticle 12(l),sub-cection 2,andArticle 12(3 )
ofDecision No528/76.
The Southern coalfield ,however ,receives aid covering only approxi­
mately 80c/oofthedifference between costs andrevenue .Here the
intention istoensure that only essentials are maintained and the
pits remain viable inthe short term only ,sothat the coalfield can
beclosed down asplanned within aperiod (byabout 1980 )which will
ensure that serious economic and social disturbances over the re­
employment ofredundant minors are avoided .Twopits inthe Southen ;
coalfield are dueforolosure in1976 ,affecting approximately 1500
miners .From allthis itcan beseen that the aid tocover losses jn
theSouthern coalfield iscompatible with Article 12(l),subsection 1,
andArticle 12(2).
Article 12(5 )ofDécision No528/76

-?,(>-
(t)Theextent towhich direct measures xnavour ofcurrent ,production ir.
the Belgian coal-minin /?industry are compatible with the proper fVnr-
tionang .ofthe common market
When alldirect andindirect aids tocurrent production inthe Belgian
coal-mining industry are added together ,theresult isasum oi177.6
million EUAfor 1976 (23.68 EUA/t;seeAnnex ,Table 2).Compared with
other Memba -States ,this aidisexceptionally high .
Asregards thecompatibility oftheaids with theproper functioning of
the common market (Artiole 3(l)ofDecision No528/76)thefollowing
should benoted : ,
(i)Asaresult oflarge producers' stocks ,there have been nosupply
problems .
(ii)Compared with 1975 »deliveries ofBelgian coal toother C01rrr.ur.ity
countries dropped slightly in1976 whilst deliveries ofcoal from
other Community countries increased .
(iii)Rationalization ofproduction continued in1976 ,with investment
inthe Campine coalfield and the closure oftwo uneconomic pits
inthe Southern coalfield .Social measures toassist 1500 employees
were made necessary bythe closures inthe Southern coalfield .Seri­
ous economic andsocial problems there were avoided in1976 .
(iv)Prices ofBelgian steam coal (Bfrs 2450/tin1976 )arealigned on
those ofheavy heating oil.
(v)Where Belgian coking -coal prices areconcerned ,thetrend after
July 1976 diverged from theprioe trends ofimported United States
coking coal bought under lon^-term contracts .The discount onprices
ofBelgian coking ooal allowed tothe Belgian steel industry were

increased insummer 1976 >whilst prices ofLScoking ccal imported
under long-term contracts have hardly changed .Of1976itcanbesaid that ,
inthefirst six months of1976 ,Belgian and UScoking-coal prices were
equivalent ,USprices being fixed under long-term contracts .
However ,thehigher discounts introduced inthe summer meant that
theBelgian steel industry paid only Bfrs 2150/tinthececond half
oftheyear,whilst theindicative price ofUKcoking coal supplied
c.i.f .under long-term contracts wasapproximately Bfrs 2335A*The
situation thus arising isthe .subject ofdiscussions between the Commission
and the Belgian Government ..
Inview ofthefact that ,onthebasis ofDecision No528/76,the
following aids were granted in1976 totheCampine coalfield (coking
coal supplier ):
million Bfrs
-investment aid 230.0
-aidtoproducers' stock 467*5
-aid tocover losses 2250*2
(giving atotal ofBfrs 2947*7 million ),
and asacoking coal aidofBfrs 1606.0 million was applied for
under Decision No73/287ttheCommission considers that only the
aids applied forunder Decision No528/76maybegranted andonly
oncondition that the current examination ofprice -.problems in
respect ofcoking coal onthe basis ofthe provisions ofDecision
No73/287arenotinany wayprejudiced .The Commission reserves ,if
necessary ,the right toreconsider the authorisation ofthe aid for
the Campine coalfield tocover losses .230.0
467*5
2250.2

-28-
(BJFrance
(a)Theexter.t toKliich direct fin.-mripl aid tocurrent production int.-.c
French coal-mining industry i6compatible with the provicions cf
Articles 7–IPofDecision No528/76
TheFrench Government did not provide for any new measures in1^76
but continued with aid6 instituted inprevious yearn ;this involves
only aid +ocover losses :
Le^al basis under
Decision No528/76MeasureTo 4,ilo ncr ;o:.nr οΓrred·
million
FFmillion
rjf .VF Π)A
Article 12 Ca)Cover forthelosses ofthe
central administration of
the Charbonnages deFrançe
'b)Cover forthecoalfields'
operating losses185.5
1405 .G35.6
Π69.88.43 1.62
12.26
Total 1591.3 >2·s 7?.331· ÎÎ;Ai·Ou
Inaddition tothe abovementioned aids ,acokinp-coal aid ofFF0.8
million istobegranted tothoLorraine coalfield inly76-
Part ofthe French aid tocover losses ispaid tothe head office
ofCharbonnages deFiance ,since their cost accounting iskept sepa­
rate from that ofthecoalfields ,andpart ispaid tothecoalfields ,
butthereasons forgranting aidvary since thesituation varies from
coalfield tocoalfield .
For the purpose ofassessing aid tohead offico ,Chorbonnagc6 de
France has toberegarded asatotal company ;i.e. aids tohead office
andforthecoalfields are consolidated .According toestimated interim
results sofaravailable for 1976 ,itisprobable that thetotal sum
inaid,namely FF1.591.3 millioivill remain considerably below the
anticipated total losses ofCharbonnages deFrance *

-2'J-
Thefollowing points arerelevant inconnection with aidtothe
individual coalfields :
(i)In1976theNord/Pas -de-Calais andCentre-Midi coalfieldc are
toreceive asumofFF743.1 million and410*5 million respec­
tively asaidtocover losses .This aidwill notnearly cover
thelosnos ofthecoalfields }even after theaid ,substantial
real-asset losses tothecoalfield will remain .These real-
asset losses aretheresult ofpitolosures .Inthese coal­
fields ,four pits arelikely tobeclosed in1976 thus affec­
ting approximately 2000e.mj&oyees .Further contraction is
included inthefuture production plans forthese coalfields
andthis isto "becoordinated with measures tore-enpLoy redundant
miners andthus avoid serious economic andsocial problems in
regions where re-employment opportunities arestill inadequate .
This means that theaid tothese coalfields fulfills therequire­
ments ofArticle 12(l),subsection 1and12(2 )ofDecision Ko
528/76.
(ii)ThesumofFF252.2 million inaidtocover losseB intheLorraine
coalfield will notcover allanticipated operating losses inthe
coalfield butwill goalong waytowards it.Nopits are tobe
closed inthis coalfield in1976 .Abfaraspossible ,production
there istobemaintained since thecoking coal isessential for
supplies tothesteel industry .Thepurpose andamount ofaid
therefore comply with Article 12(l),Bubsection 2,andArticle
12(3 )ofDecision No528/76.
The extent towhich direct measures infavour ofcurrent product jo:1
intheFrench coal-mining industry are compatible with the proper
functioning ofthe common market
Total direct and indirect aid toourrent production intheFrench
coal-mining industry amounts to312.2 million EUAfor1976 (14.19 FJA
seeAnnex ,Table 2)«Theaidishigher than theequivalent German and
British aidB ,butlower than theamount granted inBelgium .

30
Attention should bedrawn tothe following inconnection with the
extent towhich the aids are compatible with the proper functioning
ofthe common market (Article 3(1)ofDecision No528/76)t
(i)In1976 there were nosupply problems ontheFrench coal market .
(ii)Deliveries ofFrench coal toother Community countries will drop
from 50O OCX/1(1975 )toapproximately 500 000t(1976 )*Deli­
veries ofFrench coal tothe German market alone will decrease
byapproximately 100 000t«Hardly anyprice alignmento are
being operated .
(iii)List prices ofooking ooal inFrance were asfollows on1Sep­
tember 1976 :
FF/t
Nord/Pas -de-Calais 320.00
Lorraine 338*00
These prioes are comparable with the equivalent prices ofim­
ported United States ooking coal and consequently require no
further comment .
Prioes for French steam coal were &sfollows on1September 1976 :
FF/t
Lorraine
Bituminous coal Nuts 2 • 235*00'
Nuts 5 209.00
Following special agreements thequantities supplied byChnr-
bonnages deFrance tothe EdF (Electricity deFrance )are de­
livered atprices aligned ontheequivalent prices forheating
oil.Ontheother hand ,French steam-coal prices forindustry
ingeneral (1.6million texpected tobesold in1976 )arestill

-31-
lower than comparable heating-oil prices .Butitmust beborne
inmind that thereal competitor ofFrench steam coal ontnir .
restricted market isnotBOmuch heating oilassteam coal im­
ported from Australia andtheUnited Stateu ofAmerica which
according -toinformation provided bytheFrench Governement ,
ispriced lower than French steam coal *
Onthebasis oftneforegoing ,theCommission concludes that French
aids tocurrent production in1976 donotdisturb theproper functioning
ofthe common market . .
B^)United Kingdom
(a)Theextent towhich direct financial aidtocurrent product jon
intheBritish coal-mlninp industry iscompatible with the pro-
viciono ofArticles 7-12 ofT)nr?ision Ko5?0/76
Forthecoal marketing year 1976/77theBritish Government plane
thefollowing direct aids tocurrent poductions
Lepal basis underKeaoure'lYii^■»
.. r. .
Decision No528/76 million
4,million
r.vA "1
«3
Article 8 Aid toattract qualified
personnel 2.4 4.1 o.c?rs β
/· ··
Article 9 Aid toproducers 1stocks I5.O 25.4 C..12
Articl'é 11 Aid tosteam coal I.? 2.5 C.C1 c.o?
«λι Total , 18.9 32.0 0.1^«■»Λ'
<.·«·.υ
Particular attention isdrawn tothefact that thefigures forthe
above aids oreprovisional )when this memorandum waswritten nego­
tiations between theBritish Government and the KCB had not been
completed *

-32-
Theaidtocoking coal isestimated atIs1.8million for197o «
The aidforattracting andmaintaining qualified personnel
(i.2.4million )isintended tocover theNCB'bcosts arising
from rationalization andthetransferring of .production tothe
best pits .This results inoutgoings onremovals ,transport ,
etc .Theaid iscompatible with Article 8ofDecision No
520/76.
When assessing theaidtocover costs forproducers' stocks of
coking coal (i>25«4 million )itmust beremembered that stocks
held byproducers andadditional stocks held byconsumers but
directly orindirectly financed byproducers total about 17
million t.Given amonthly production ofapproximately 10.5
miltLon t,thevolume ofproducers' stocks qualifying foraid
is6.5million t.This means that theper-tonne grant inaid is
3*9Actual costs ofmaintaining producers' stocks (including
depreciation andinterest )areconsiderably higher than thesum
granted .Theaidtherefore complied with theprovisions ofAr­
ticle 9ofDecision No528/76.
Theaidgranted tosteam coal (t2t>5million )isasmall sumpaid
tothe NCB for additional deliveries of6team coal over and above
acertain reference volume .From theinformation provided bythe
British Government ,theamount andpurpose oftheaidgranted can
beregarded ascompatible with Article 11ofDecision No528/76.
;,! 1 '
b)Theextent towhich direot measures infavour ofcurrent production
intheBritish coal-mining industry are compatible with therrcpcr
functioning ofthe common market i
: 1.
Inthecoal marketing year 1976/77taidtocurrent production in
theUnited Kingdom will total 35»1 million EUA (0.29 EUA/t)or,
' '!*■' il ' ' >; ■ 1
Α

33
if -thesurpluses referred 'SoinArticle 4areincluded ,6.56
million EUA (0.53 EUA/t;seeAnnex ,Table 2).This means that
theBritish coal-mining industry receivec the lowest aide ofany
oftheCommunity 'scoal-producing countries .
Nodetailed comments oranalyses arerequired forassessing
thecompatibility ofthese aids with theproper functioning
ofthecommon market .Itmaygenerally beassumed that supplies to
consumers are ensured .The Commission isaware that rationali­
zation continues andnewinvestment projects areunder way .to
lower production costs andmaintain production .Distortion of
competition inthecommon market asaresult ofBritish aids
isunlikely ;
Î' ..
c.Theabove conclusions apply only totheaids that form thesubject
ofthis memorandum .Incases where larger sums might berequested ,
anewexamination would benecessary .
■' ' • •... .1. , ■ M .
I• ' - .; .
• t ' ■ ' ;
I 'I M
"l 1 '.. . ........
.•; il ''■• ' 11
' I ■ -1 I
'i\ •• • ji' . •'" ".'V- 'n '
''Ι' ' · '. 1 I.
.y :
; '! ' i: . 'i
■

-34- XVII/17/77-E
CHATTER V
Conclusions' •
1.Theforegoing details refer tothefinancial measures which theKember
States oftheenlarged Community have planned forthecoal-mining industry
in1976 orthecoal marketing year 1976/77»asappropriate .Thecompatibi­
lity ofthemeasures with theprovisions ofDecision No528/76wasassessed
1separately foreach country .Theanalyses showed -with theexception ofthe
problems ofBelgian coking coal prices -that theaids provided for1976 by
theGovernments donotimpair theproper functioning ofthecommon market incoal .
2.Asregards quantitative trends onthecoal market ,itcanbeseen that
Community coal produotion will beabout 9million tlower in1976 than
itwas in1975 *ThiB ispartly because ,inlow-revenue coalfields ,pro­
duction hasdropped asaresult ofclosures whilst themore economic coal-
jfields have cutback production because ofthepressure ofhigh stooks *
.1
1 η· 'ΐ
)Producers' coal andcoke stocks reached theunusually high level of$0
.million tattheendofI976 . .i
, 1 ■t; 0
Itislikely that Community .imports ofooal frojn non-member countries will
;be1-2million thigher in1975 than in1976 .r ^
f
In1976 thecoal-mining indfistry 'srevenue situation worsened .Asaresult
5ofhigher wages andprice rises inmining equipment ,production costs rose
more than revenue .Inspite'of this theGerman todBritish coalfields will
still beable flore orless %ooover their ourrent dperating costs in1976 .
U A ,TheFrench and'Belgian coal 'fields show operatirtg losses sothat aids have
tobegranted tocover them J
A•1 fi !t '!
hr i
4*Asconoerns thefinancial measures tocover the .deficits ofthose responsible
forsocial security pursuant toArticle 4ofDecision No528/76,thetota^l
n•», Î1 '■ . •
HI, li ■' q ' H
n:' a fi
ηλ ' : . 'ΐ. η
y, h . J ''' a

»35- XVÏI/17/77-E
for1976 will be3.100 mill .EUA.This ishigh andisindicative ofthe
constantly growing gap "between employed contributors andthose receiving
0
benefit .
Aids tocover inherited liabilities pursuant toArticle 5ofDecision No
528/76will amount to218.1 million EUAfortheCommunity asawhole .
Aidtocurrent production inthecoal-mining industry will come to748.4
million EUAfortheCommunity asawhole in1976 (3.02 EUA/t).
Total direct and indirect aid tocurrent production
■■
1.Measures under Deoision No528/76
(a)Indirect
(b)Direct
Λ
2.Coking coal aid
Per tonne ofproductionTotal
Crand total(million EUA ;
Community
37.0
661.7
698.7
49.7
748.4
stslssassss
3.02 EUA
Ofthetotal direot aids planned in1976 (661*7 million EUA -),asumof <541.0
million EUA (66.6$ !)isallocated toaidunder Article 12ofDecision No528/76
andasumof220.7 million EUA (33.4$ )toaidforrationalization ,investment
andproducers' stocks (Articles 7-11 ofDecision No528/76 '
! 1
(million EUA)
Aids h
•Total
! Arts .7-11 Art .12
P.R. ofGermany I72.7 23.2 I95.9
Belgium
H ■1 ''16.0:i112·4. 128.4
'1·1
Prance - ~3Ο5.4 3Ο5.4
United Kingdom
Tot'àl r"32.0 - 32.Ο
»1 . ;
220.7 144I.O 661.7

XVI1/17/77
STATISTICAL ANNEX
f* - H

A Vir/17/77-E
Table It Aids riotrelating tocurrent production
Table 2: Aids relating tocurrent production
Table 3: Trends inintra-Community trade incoal
Table 4i Trends incoal production

X7Il/17/77-E
Aids not relating tocurrent production 1 ne \t\j uui J.Ç111 /pxuuu^viun m.-L i -1(1976)
(Million EUA;
-Social security treasures pursuant to Aids tocover innerited liabilitiesArticle 4ofDecision No528/76 pursuant toArticle 5ofDecision bo
- - 528'-r
Total Infringements Art .4 Total Infringements -jri·S
Fed »Rep »ofGermany 1762.1 - 149.6
Belgium 45S.5 - 0.9
France 848.5 •5I-3
United Kingdom 30.51* 3O.5 16.3 -
Total forthe Community 3099.6 3O.5 218.1 -
TheUnited Kingdom hasanintegrated social security system .Thefigure shown inthis
column covers only thespecial miners' pension fund which exist sside-by-side with the
vgeneral social security system .

Aids tocurrent production in1976 (Million SUA)XVII/I7/77-E
Table 2
' Unit Germany Belgium Prance U.K. Community
A.Aidunder decision No528/76
1·Infringements of
Article .4
Article 5
Total infringements
Per tonne ofproductionMillion EUA
Million EL7A«M • \ (30.5) (3C.5)
Million EUA
EUA– - - (30.5)
(0.26 )(30.5 }
(0.12 )
2·Indirect measures
Per tonne ofproductionKillion EUA
EUAI9.O
0.20I2.9
1.72S.I2
0.2337.0
0.15
3·Direct aid
Article 7
Article 8
Article 9
Article 10
Article 11
Article 12
Total
Per tonne ofproductionKillion EUA
Killion EUA
Killion EUA
Hillion EUA
Killion EUA
Killion EUAIO5.4
39.7
27.6
23.25.4
10.6
112.4 WS./!4.1
25.4
2.5110.8
43.8
36.0
27.6
2.5
¿41.0
Hillion EUA
EUA195.9
2.08128.4
17.12305.4
13.8832.O
0.26661.7
2.67
3.Coking coal aid (Decision No73/287)
Per· ,tonne ofproductionMillion EUA
EUA8.63
0.0936.3
4.841.7
0.083.1
O.0349.7
0.20
Total eurrs inaid (A+3Ì
Total sums
Per tonne ofproductionMillion EUA
EUA223.5
2.38177.6
23.68312.2
14.1935.1 A
(65.6 )
0.29 ,(C.53 )4748.4 ,
(778.9 /
3.02 ,^.1¿>4
figures entered inplar.s
Including interest rate subsidy toCharbonnages deFrance (0.1Million EuA)
Sstircates
Including infringements ofArticle 4

Trends inintra-Community trade incoal1oco t
Prom
mo'Fed .Hep.ofGermany' Belgium France I·einer land s United η,:A~.~ 'X :r.'jnitjr
1975 19761CTC¿yi y 1976 1975 19761^7 i .Λ
1~ 1975 197c 1?"· -
FedjPap.of Cermany 300 210 450 350 75- 670 90" 149' 1460
Belgium ' 3700.. 4050- - 100 100 5 - - 450 JOλpre
•cyν 4Í75
France 5950 5030 149 173- - 50- 8C0 500 7coo 5700
Netherlands 7C0 770- - - 5- 350ΛΛΛ 1oso 1coo
Italy 3200 3435- - 25 40 25 25 3250 3500
Luxembourg - - •515 - 545 : 5- 5 5- - - - 525 550
Denmark 10 10 30 25■- - - - - - IC 10
Ireland 5 0 – .- - - - - 95 80 ICO So
United Kingdom 50 50- - - - .- - - - 50 50
Cotfiomity 14130 13890 535 405 580 5C0 130 - 2390 2030 17765 16825
Provisional for 1976

xv11/17/77-E
Table t\
Trends inproduction
(inMillion t(T=T))
1973 1974 1975 19762Changes usbetween i?~¡0
nnrt 1"·' Γ
»li.;.:ιι;υ1ΐ·1υ
terrr.B
Fed .Rep .ofGermany IO3.4 101.2 98.8 94.0 -4.8 - Λ.:
France 25.7 22.9 22.4 22.0 -0.4 -1.5
Belgium 6.8 8.1 7-5 7.5 'i04
– C
Netherlands 1.8 0.8 - - '- *
Coxmunity oftheSix ;· I39.7 133.0 128.7 I23.5 -5.2 ·· £«·
United Kingdom I28.9 IO9.2 127.8 124· .0 -3.6 – '·Λ
Fiilarpcd Community 268.6 242.2 256.5 247.5 -9.0 – ^ 
Figures taken from offioial statistics )notincluding Italy andIreland oremail pits
>
"Estimates