88/558/ECSC: Commission Decision of 14 October 1988 approving aid from Portugal to the coal industry during 1988 (Only the Portuguese text is authentic)
Date: 1988-10-14
Institutions: European Commission
Subjects: Portugal, State aid













EUR-Lex - 31988D0558 - EN






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31988D0558

88/558/ECSC: Commission Decision of 14 October 1988 approving aid from Portugal to the coal industry during 1988 (Only the Portuguese text is authentic)  


Official Journal L 307 , 12/11/1988 P. 0049 - 0049 





*****COMMISSION  DECISION  OF 14 OCTOBER 1988  APPROVING AID FROM PORTUGAL TO THE COAL INDUSTRY DURING 1988  ( ONLY THE PORTUGUESE TEXT IS AUTHENTIC )  ( 88/558/ECSC )  THE COMMISSION OF THE EUROPEAN COMMUNITIES,  HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY,  HAVING REGARD TO COMMISSION DECISION NO 2064/86/ECSC OF 30 JUNE 1986 ESTABLISHING COMMUNITY RULES FOR STATE AID TO THE COAL INDUSTRY ( 1 ),  WHEREAS :  I  BY LETTERS OF 29 APRIL, 16 MAY AND 1 AUGUST 1988 THE PORTUGUESE GOVERNMENT INFORMED THE COMMISSION, PURSUANT TO ARTICLE 9 ( 2 ) OF DECISION NO 2064/86/ECSC, OF THE FINANCIAL MEASURES IT INTENDS TO TAKE DURING 1988 TO GIVE DIRECT OR INDIRECT SUPPORT TO THE COAL INDUSTRY . AID TO COVER OPERATING LOSSES TOTALLING ESC 279 965 000 IS SUBMITTED FOR THE APPROVAL OF THE COMMISSION UNDER THE ABOVE DECISION .  THIS AID WILL COVER THE DIFFERENCE BETWEEN PROJECTED AVERAGE COSTS AND PROJECTED AVERAGE REVENUE FOR EACH TONNE PRODUCED . THE AID WILL NOT EXCEED EXPECTED OPERATING LOSSES AND HENCE COMPLIES WITH THE CONDITIONS OF ARTICLE 3 ( 1 ) OF THE DECISION .  THE PURPOSE OF THE AID IS TO PREVENT PREMATURE PIT CLOSURES AND FORMS PART OF A REGIONAL INDUSTRIAL DIVERSIFICATION POLICY . IT HENCE CONTRIBUTES TO SOLVING THE SOCIAL AND REGIONAL PROBLEMS RELATED TO DEVELOPMENTS IN THE COAL INDUSTRY, IN ACCORDANCE WITH THE THIRD INDENT OF ARTICLE 2 ( 1 ).  II  THE FOLLOWING OBSERVATIONS SHOULD BE MADE ON THE COMPATIBILITY OF THE PROPOSED AID TO CURRENT PRODUCTION IN 1988 WITH THE PROPER FUNCTIONING OF THE COMMON MARKET :  _ THERE ARE UNLIKELY TO BE SUPPLY DIFFICULTIES IN 1988,  _ PORTUGUESE COAL PRICES SHOULD NOT, IN PRINCIPLE, LEAD TO INDIRECT AID TO COAL USERS IN 1988 .  THEREFORE THE AID TO BE GRANTED TO THE CURRENT PRODUCTION OF THE PORTUGUESE COAL INDUSTRY IN 1988 IS COMPATIBLE WITH THE PROPER FUNCTIONING OF THE COMMON MARKET .  III  PURSUANT TO ARTICLE 11 ( 2 ) OF DECISION NO 2064/86/ECSC, THE COMMISSION MUST ENSURE THAT THE DIRECT AID TO CURRENT PRODUCTION WHICH IT AUTHORIZES IS USED EXCLUSIVELY FOR THE PURPOSES SET OUT IN ARTICLES 3 TO 6 THEREOF . THE COMMISSION MUST THEREFORE BE INFORMED OF THE AMOUNTS OF PAYMENTS AND THE MANNER IN WHICH THEY ARE APPORTIONED .  HAS ADOPTED THIS DECISION :  ARTICLE 1  PORTUGAL IS HEREBY AUTHORIZED TO GRANT AID TO COVER OPERATING LOSSES TOTALLING ESC 279 965 000 TO THE COAL INDUSTRY WITH EFFECT FROM 1 JANUARY 1988 FOR THE 1988 CALENDAR YEAR .  ARTICLE 2  THE PORTUGUESE GOVERNMENT SHALL INFORM THE COMMISSION BY 30 JUNE 1989 OF THE ACTUAL AMOUNTS OF AID PAID IN 1988 .  ARTICLE 3  THIS DECISION IS ADDRESSED TO THE PORTUGUESE REPUBLIC .  DONE AT BRUSSELS, 14 OCTOBER 1988 .  FOR THE COMMISSION  NICOLAS MOSAR  MEMBER OF THE COMMISSION  ( 1 ) OJ NO L 177, 1 . 7 . 1986, P . 1 .