1999/270/EC: Commission Decision of 2 December 1998 on German aid to the coal industry for 1998 - (notified under document number C(1998) 4026) - (Only the German text is authentic) - (Text with EEA relevance)
Date: 1998-12-02
Institutions: European Commission
Subjects: Germany, State aid, aid to industry, coal industry, production aid

L 109/14

EN

Official Journal of the European Communities

27.4.1999

COMMISSION DECISION

of 2 December 1998

on German aid to the coal industry for 1998

(notified under document number C(1998) 4026)

(Only the German text is authentic)

(Text with EEA relevance)

(1999/270/EC)

THE
COMMUNITIES,

COMMISSION

OF

THE

EUROPEAN

Secondly, it gives its opinion, in accordance with the
Decision, on the following financial measures for
1998:

Having regard to the Treaty establishing the European
Coal and Steel Community,

regard

to Commission Decision No
Having
3632/93/ECSC of 28 December 1993 establishing
Community rules for State aid to the coal industry (1),
and in particular Article 2(1) and Article 9 thereof,

Whereas:

I

By letter of 28 October 1997, Germany notified the
Commission,
in accordance with Article 9(1) of
Decision No 3632/93/ECSC, of the aid it intended to
grant to the coal industry in 1998. By letters of 26
March 1998, 28 April 1998, 27 August 1998, 23
October 1998 and 4 November 1998, Germany
submitted the additional information requested by the
Commission.

By letter of 26 March 1998, Germany submitted, in
accordance with Article 8(4) of Decision No
3632/93/ECSC, the new guidelines for its coal policy
up to the year 2002, which modify the plan approved
by the Commission by Decision 94/1070/ECSC (2) on
aid to the coal industry in1994 (hereinafter referred to
as (cid:28)the 1994 restructuring plan’).

In accordance with Decision No 3632/93/ECSC, the
Commission first gives an opinion on the compatibility
of the plan for the modernisation, rationalisation and
restructuring of and reduction of activity in the coal
industry with the general and particular objectives of
the Decision.

(1) OJ L 329, 30.12.1993, p. 12.
(2) OJ L 385, 31.12.1994, p. 18.

(a) operating aid within the meaning of Article 3 of

the Decision totalling DEM 5 171 million;

(b) aid for

the reduction of activity within the
the Decision totalling

meaning of Article 4 of
DEM 3 164 million;

(c) aid within the meaning of Article 3 of the Decision
totalling DEM 81 million to maintain an
underground labour force ((cid:28)Bergmannspr(cid:228)mie’);

(d) aid within the meaning of Article 5 of the Decision
totalling DEM 1 011 million to assist
the
undertakings
Aktiengesellschaft,
RAG
Saarbergwerke AG, Preussag Anthrazit GmbH and
Sophia Jacoba GmbH to cover exceptional costs.
This aid includes:

restructuring,

— aid to cover additional drainage costs, as part
of
the undertakings
to assist
RAG Aktiengesellschaft, Saarbergwerke AG
and Preussag Anthrazit GmbH totalling DEM
161 million,

— aid totalling DEM 850 million to assist
undertakings RAG Aktiengesellschaft,
the
Saarbergwerke AG and
Jacoba
GmbH to cover the costs arising from or
the
having arisen from the restructuring of
coal
related to
industry which are not
current production (inherited liabilities).

Sophia

The financial measures proposed by Germany for the
coal
industry comply with the provisions of Article
1(1) of Decision No 3632/93/ECSC. In accordance
therefore
with Article 9(4),

the Commission is

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Official Journal of the European Communities

L 109/15

required to give an opinion on these measures. For
this purpose, it checks whether they conform to the
general objectives and criteria defined in Article 2 and
the specific criteria defined in Articles 3 and 4 of the
Decision and whether they are compatible with the
functioning of the common market. Furthermore, in
accordance with Article 9(6) of
the
the notified
Commission has
measures
for
compatible with
modernisation, rationalisation, restructuring and the
reduction of activity.

to decide whether

the Decision,

plan

are

the

On 20 July 1998, the coal-mining undertaking RJB
Mining Plc, an undertaking within the meaning of
Article 80 of the ECSC Treaty, brought an action
before the Court of First Instance of the European
Communities against the Commission Decision of 10
June 1998 on German aid to the coal
industry in
1997 (1).

Plan for modernisation, rationalisation, restructuring
and the reduction of activity in coal mining for the
period from 1998 to 2002

The planning behind the plans for the modernisation,
rationalisation, restructuring and reduction of activity
in the German coal industry is based on the following
objectives:

— optimum use of the lower financial resources,

— reduction of production and costs,

— according to the current plans, the retention of
access to the main reserves and the option of
moving northwards,

— ensuring supplies

to customers of appropriate

quality and in good time,

II

— a socially acceptable reduction in staff avoiding

laying off for operational reasons,

On 13 March 1997, agreement was reached on the
new guidelines for the German coal industry for the
period from 1998 to 2005 between the Federal
State Governments of
the Federal
Government,
coal
North-Rhine Westphalia and the Saar,
undertakings and the trade union federations
for
mining and electricity production in the framework of
Article 8(4) of Decision No 3632/93/ECSC.

the

This agreement provides for a continuing reduction in
annual production to 37 million tonnes of coal
equivalent (tce) in 2002 and a reduction of 30 000 in
the workforce to a total of 56 000,
including
subsidiary activities. Production will then be provided
by 12 mines. Although the planning is for the period
individual measures agreed in
up to 2005,
November 1997 only apply up to the expiry of
Decision No 3632/93/ECSC. The changes in costs, the
prices of
the sales
imported coal and above all
opportunities
foreseen with sufficient
accuracy to be able to lay down precisely the rate at
which activity in this sector subsequently needs to be
reduced.

cannot be

the

plan

for modernisation,

The
rationalisation,
restructuring and the reduction of mining activity has
been checked by the Commission as
the
individual mines
undertakings RAG
Aktiengesellschaft, Saarbergwerke AG and Preussag
Anthrazit GmbH.

regards

the

of

— consideration of the regional impact of measures.

To implement
the situation with
regard to the mines was assessed by the undertakings
on the basis of the following criteria:

these objectives,

— extent of the deposits,

— coal quality,

— costs.

These standard criteria should make it possible to
current
provide an objective assessment of
situation
the
of
the
the undertakings
production units. On this basis,
concerned have submitted the following information
to the Commission.

the
development

future

and

Restructuring of the production units of RAG
Aktiengesellschaft

A. Closures

— the

Emschermulde

with

the

mines

Hugo/Consolidation and Ewald/Schl(cid:228)gel & Eisen,

(1) Case T-110/98; OJ C 299, 26.9.1998, p. 38.

Leopold/Wulfen and Westerholt,

— the

Lippemulde

with

the mines

F(cid:252)rst

L 109/16

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Official Journal of the European Communities

27.4.1999

— the Bereich Ost (eastern zone) with the mines Haus

The following measures are planned for this area:

Aden/Monopol and Heinrich Robert,

— the Westfalen mine.

1. The

Emschermulde

with

the

mines

Hugo/Consolidation and Ewald/Schl(cid:228)gel & Eisen

The first measure in the abovementioned areas, the
reorganisation of
the Emschermulde with the
creation of the amalgamated mine Ewald/Hugo,
was agreed and implemented as long ago as 1 July
1997.

This is the last of several stages of restructuring
which this mining area has undergone since the
undertaking RAG Aktiengesellschaft was founded.

According to the plan, mining at the Ewald/Hugo
mine will cease before 23 July 2002, by which date
the high-quality coking coal
in this deposit will
have been extracted. The Emschermulde coalfield
will thus be finally closed down.

(a) on

1998,

1 April

the mines Haus
Aden/Monopol and Heinrich Robert were
combined to form the amalgamated mine Ost,
while abandoning the northern pit of Haus
Aden. Up to the year 2000, the production site
Haus Aden will be retained for the Monopol
pit;

(b) in

in

the

2000,

production

Haus
Aden/Monopol and Heinrich Robert pits will
concentrated on the Heinrich Robert
be
the
production
underground
the
abandonment of mine sections and the closure
of pits and open-cast mines.

completion
This

of
involves

link.

site

on

This measure will ensure the production of coking
coal
for the time
in the eastern coalfield and,
being, the option of moving to the north.

In 1997, production amounted to 5 million tce and
the number of employees was 6 857.

In 1997, production amounted to 4,4 million tce,
and the number of employees was 6 832.

4. The Westfalen mine

2. The

Lippemulde with

the mines

F(cid:252)rst

Leopold/Wulfen and Westerholt

The following measures are planned for
Lippemulde:

the

(a) on

1998,

1 April

the mines

F(cid:252)rst
Leopold/Wulfen and Westerholt will be merged
to form the amalgamated mine Lippe. The
F(cid:252)rst Leopold production site
to be
maintained until the amalgamated production
site has been completed in 2001;

is

(b) up to 2001, activity in the mine F(cid:252)rst
Leopold/Wulfen will be gradually reduced by
mining the economically extractable reserves
and allowing pits to be closed. The closure of
pits and the corresponding open-cast sites will
optimise the infrastructure both below and
above the ground. The remaining activity will
be concentrated on the Westerholt production
site.

In 1997, production amounted to 4,9 million tce
and the number of employees was 6 035.

3. The

Bereich Ost with
Aden/Monopol and Heinrich Robert

the mines Haus

The Westfalen mine will be closed down in the
year 2000. Up to that date, optimum economic use
will be made of the site. This process has already
begun and is ensuring low cost.

In 1997, production amounted to 2,5 million tce
and the number of employees was 2 809.

B. Other measures

reduction

In addition to the measures described above for the
capacity,
final
the
modernisation,
rationalisation
process will be continued in all remaining pits. This
will bring about additional costs reductions.

production
and

restructuring

of

The Friedrich Heinrich/Rheinland mine

infrastructure

Following the completion of the amalgamation of the
two pits during the first half of the 90s with the
and
disposal of
redevelopment of the open-cast pits which were no
longer required, substantial progress has been made as
regards
further
rationalisation.

by means

productivity

and the

closure

of

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By concentrating activity on the highest-yield pits and
thereby achieving a progressive increase in the face
output, it has been possible to reduce the number of
faces operated. As
the downstream areas were
optimised at the same time, the mine is today among
those with the lowest deficit.

geological

positive in overall terms, but is temporarily impaired
by
production
amounted to 3,1 million tce and the number of
employees was 4 173.

difficulties.

1997,

In

In 1997, production amounted to 3,7 million tce and
the number of employees was 4 117.

The Blumenthal/Haard mine

The Niederberg mine

Despite the cutback in production, there has been a
positive development in recent years at the Niederberg
mine as regards the reduction of production costs.
Further
the mine’s
situation. In 1997, production was 2,2 million tce and
the number of employees was 2 424.

rationalisation will

stabilise

The Blumenthal/Haard mine is currently also faced
with production difficulties due to geology. The
resulting loss of production is temporarily increasing
costs. The concentration of the pits operated together
with a future plan for the continuing option of moving
northwards should permanently reduce the costs. In
1997, production amounted to 3,3 million tce and the
number of employees was 4 447.

The Walsum mine

C. Impact of the planned measures

The Walsum mine is one of the undertaking’s richest
and most efficient mines. The targeted selection of
seams and certain technical measures should help to
overcome the mine’s temporary operational problems
as regards mining and to guarantee its performance. In
1997, production amounted to 2,9 million tce and the
number of employees was 3 802.

The Lohberg/Osterfeld mine

Although the rationalisation measures are currently a
burden as regards the cost and performance data at
this production site, the Lohberg/Osterfeld mine does
produce high-quality coking coal. It is in the process
of consolidation and will shortly have disposed of the
elaborate underground infrastructure which was the
result of the amalgamation with the former Osterfeld
mine. In 1997, production amounted to 2,9 million tce
and the number of employees was 4 262.

The Prosper/Haniel mine

in

recent

The Prosper/Haniel mine has recorded production
the
years which
costs
among
undertaking’s
operational
rationalisation is expected over the next few years. In
1997, production amounted to 3,7 million tce and the
number of employees was 4 078.

Further

lowest.

are

The result of
the measures described above is to
reduce the number of jobs in the undertaking’s mining
sector as a whole by about 44 500 from an average of
89 500 in 1992 to 45 500 in 2002. This corresponds
to the shedding of about 4 500 jobs per annum.
Compared with the 1994 restructuring plan,
this
means an actual reduction in 14 500 jobs by 2002.
The proposed change to the labour force is based on
an annual productivity increase of 4 %. In 1997, the
number of employees was 60 820.

Expressed at 1992 prices, the reduction in production
costs up to 2002 will be DEM 37 per tce, more than
twice as much as envisaged in the 1994 restructuring
plan (DEM 16 per tce). Up to 31 December 1997, real
costs had fallen by about DEM 21 per tce.

Production is to be reduced from 47,6 million tce in
1992 to 30,1 million tce in 2002. Compared with the
1994 restructuring plan, this means a reduction of a
further 8,2 million tce during this period. In 1997,
production amounted to 38,7 million tce.

The Auguste Victoria mine

Restructuring of the production units of the
undertaking Saarbergwerke AG

The Auguste Victoria mine is one of the undertaking’s
high-deposit efficient mines. Following its sale by the
undertaking BASF in 1992 and its full integration into
the undertaking’s mining sector in 1996, the potential
for rationalisation was exploited. This development is

The agreement on the new guidelines for the German
coal industry of 13 March 1997 will lead to a further
reduction in production and make it necessary to close
one of the company’s mines in the year 2000.

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Official Journal of the European Communities

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A. Closures

The G(cid:246)ttelborn/Reden mine

Despite considerable investment during the period
from 1990 to 1995 to amalgamate the Reden,
G(cid:246)ttelborn and Camphausen mines, the production
site must be closed down in the year 2000 because of
geological difficulties.

In 1997, production amounted to 1,9 million tce and
the number of employees was 2 899.

B. Other measures

The Ensdorf mine

for

thanks

to the programme

It has been possible to maintain a high level of
productivity
the
this production site which was
modernisation of
started in the early 1990s. The Ensdorf mine was
traditionally the most productive German mine and is
expected to maintain its productivity during the period
under review. The conditions for this are in place and
are to be guaranteed in the medium term by means of
continuing
1997,
production amounted to 2,5 million tce and the
number of employees was 2 231.

productivity.

increases

In

in

The Warndt/Luisenthal mine

The mine is expected to increase its performance,
since:

— two pits are to be closed at the end of 1999

and

— new layouts in the future pits and the use of new
technology will result in substantial optimisation.

In 1997, production amounted to 2,2 million tce and
the number of employees was 3 504.

C. Impact of the planned measures

The labour force will be reduced from 18 671 to
8 478 in 2002, a reduction of 10 193 workers.
Compared with the 1994 restructuring plan,
this
means that the labour force will be reduced by an
additional 6 000 up to 2002. In 1997, the number of
employees was 14 220.

Expressed at 1992 prices, the reduction in production
costs will be DEM 100 per tce in 2002, DEM 40 per
tce higher than envisaged in the 1994 restructuring

plan. By 31 December 1997, real costs had fallen by
DEM 44 per tce.

The production capacity will be reduced from about 8
million tce in 1992 to 5,1 million tce up to 2002.
Compared with the 1994 plan, this is a fall of a
further 2,2 million tce. In 1997, production amounted
to 6,7 million tce.

Restructuring of the production units of Preussag
Anthrazit GmbH

The undertaking expects its costs to continue to fall
gradually during the period from 1998 to 2002.
Compared with the last plan submitted for this period
in August 1994, production has, however, been revised
downwards due to a downward trend in sales (from
2,05 million tce per annum to about 1,7 million tce
per annum). Given the situation now achieved with
regard to pit operation, the undertaking believes that
the performance by
significantly
shift
improved, therefore reducing production costs to some
extent. In 1997, production amounted to 1,7 million
tce.

can be

The basis for this improvement is provided by the
implementation of the restructuring plan drawn up in
1990.

This plan provides for the following measures:

— conversion

of

the

process

extraction

from
advancing working to retreating working. The
preliminary work required (preliminary driving of
accompanying roads) was for the most part carried
out in 1991 to 1994 and extended during the
following tow years to the desired degree. This
conversion means that
from
retreating workings can be extracted,

the entire output

— equipping of the workings and headings with more
efficient extraction and driving equipment. The
re-equipping has how largely been completed,

— adaptation of

the infrastructure to the lower
production volume and its consolidation. This
process tends to depend on the layout, but has
already largely been completed and should have an
impact on the level of the fixed costs,

— the labour force of 4 024 in 1992 will be reduced
to 2 667 in 2002. This corresponds to a reduction
of 33 % instead of approximately 25 % as
foreseen in the 1994 restructuring plan. In 1997,
the production unit had a labour force of 2 757.

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III

IV

industry have fallen slightly,

the
According to the plan notified by Germany,
reduction in State aid will
lead to a permanent
reduction in coal production. Production is expected
to fall from 47 million tce in 1997 to 37 million tce in
2002. Even if the average production costs in the
taking
German coal
account of Article 3(3) of Decision No 3632/93/ECSC,
the production costs, expressed at 1992 constant
prices, are still too high as they should be DEM 242
per tce in 2002 as compared with DEM 288 per tce in
1992. Compared with the 1994 plan, which showed a
cost reduction of DEM 28 per tce, the reduction of
DEM 46 per tce now planned is much higher. World
market prices should remain relatively stable at about
DEM 80 per tce, which would allow the unfavourable
relationship between imported coal and German coal
to continue.

Production in 2002 will be reduced to 37 million tce,
as compared with 48 million tce
in the 1994
restructuring plan.

The number of employees will fall to about 56 000 by
2002 instead of the figure of approximately 82 400
envisaged in the 1994 plan.

On the basis of the above, it can be concluded that a
substantial reduction in aid can largely be achieved by
means of measures to reduce mining activity.

When implementing the plan for the period from 1998
to 2002, Germany must therefore keep track of the
changes in the production costs of the undertakings
which receive State aid pursuant to Article 3 of the
Decision. Germany has given its assurance that, if the
objective of a realistic downward trend cannot be
achieved,
it will propose the necessary corrective
measures to the Commission such as a review of the
classification of mines pursuant to Article 3 and 4 of
Decision No 3632/93/ECSC.

In its assessment of the plan, the Commission has
taken account of the need to minimise the social and
regional impact of the reductions in the German coal
industry as far as possible.

The aid pursuant to Article 3 totalling DEM 5 171
million is intended for the operation of the mines
owned by the undertakings RAG Aktiengesellschaft,
Saarbergwerke AG and Preussag Anthrazit GmbH, Dr
Arnold Sch(cid:228)fer GmbH and Merchweiler GmbH.

to

the

Niederberg,
Prosper/Haniel,

the aid is
In the case of RAG Aktiengesellschaft,
Friedrich
intended
mines
assist
Walsum,
Heinrich/Rheinland,
Lohberg/Osterfeld,
Westerholt,
Auguste Victoria, Blumenthal/Haard and Heinrich
Robert. In the case of Saarbergwerke AG, the measure
is
and
Warndt/Luisenthal. In the case of Preussag Anthrazit
GmbH,
site
is
Ibbenb(cid:252)ren.

intended for

the measure

the mines

intended

Ensdorf

the

for

This aid totalling DEM 5 171 million is intended to
cover the difference between production costs and the
sales price freely agreed on the basis of the conditions
prevailing on the world market for coal of similar
quality from third countries.

According to the information supplied by Germany
and taking account of Article 3(3) of Decision No
3632/93/ECSC, the average production costs in the
mines covered by Article 3 should in real terms be
5,4 % lower in 1997 than in 1995 at 1992 prices, i. e.
DEM 253 per tce as compared with DEM 268 per tce.

In its assessment of the operating aid pursuant to
the
Article 3 of Decision No 3632/93/ECSC,
Commission has also taken account of the need to
minimise the social and regional
the
restructuring of coal mining in regions which are
structural
already
unemployment.

above-average

impact of

affected

by

The fact is that unemployment in the coalfields of the
Ruhr stands at about 15 % (district of Duisburg
15,8 %, Recklinghausen
13,7 %, Gelsenkirchen
16,4 %), which is far above the West German average
of 9,7 %. In the Saar too, unemployment is above
average in the coalmining areas (Saarbr(cid:252)cken 13,9 %,
Saarlouis 11 %).

In the light of the above, the Commission takes the
view that
is
compatible with the objectives and criteria of Decision
No 3632/93/ECSC.

the plan submitted by Germany

coalmining areas are also target areas

for
The
Community regional support
(Objective 2, regions
whose industrial development is lagging behind) and
at the same time areas to be developed within the
meaning of Article 92(3)(c) of the EC Treaty.

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On the basis of the information provided by Germany
and the undertakings given (see Section VIII of this
Decision), the aid proposed for 1998 is compatible
with Decision No 3632/93/ECSC,
in particular
Articles 2 and 3 thereof.

V

The aid totalling DEM 3 164 million proposed for the
reduction of activity pursuant to Article 4 of Decision
No 3632/93/ECSC is tended to cover the difference
between production costs and the sales price freely
agreed on the basis of the conditions prevailing on the
world market for coal of similar quality from third
the undertaking RAG
countries.
Aktiengesellschaft,
the mines F(cid:252)rst
it will assist
Leopold/Wulfen, Ewald/Hugo, Haus Aden/Monopol
and Westfalen.
the undertaking
In the context of
Saarbergwerke AG, the measure is intended for the
G(cid:246)ttelborn/Reden mine.

In the context of

This aid is part of a programme for the complete or
partial closure of the abovementioned mines.

abovementioned closures

The
the
Agreement of 13 March 1997 which will reduce
production capacity by 10 million tonnes (21 % of
total production capacity) and lead to the shedding of
30 000 jobs between 1998 and 2002.

are part of

In accordance with the provisions of Article 4 of
Decision No 3632/93/ECSC,
the production sites
G(cid:246)ttelborn/Reden, Ewald/Hugo and Westfalen will be
completely closed down before the Decision expires.
in partial
The amalgamation of mines will result
closures
and
provide
presumably significant reduction in mining activity
before the Decision expires. In accordance with the
second indent of Article 2(1) of Decision No
3632/93/ECSC, this aid will help to solve the social
and regional problems associated with the complete or
partial reduction of activity.

continuous

that will

a

which amount to DEM 10 per underground shift, is
intended to provide an incentive for qualified staff to
work underground and to help rationalise production.
According to the German notification,
this aid to
miners is a pecuniary benefit. Although the extra
payments are not part of the production costs of the
coalmining undertakings, the aid helps to reduce the
undertakings’ wage costs. It is therefore aid which
must be examined on the basis of Article 3 of Decision
No 3632/93/ECSC.

facilitates

restructuring

The proposed aid helps to maximise productivity and
and
the
therefore
rationalisation of mining. It therefore also helps to
achieve the objective referred to in the first indent of
in the light of coal
Article 2(1), namely to make,
prices on international markets,
further progress
towards economic viability with the aim of decreasing
the aids.

In its assessment of the aid, the Commission has taken
account,
in accordance with the second indent of
Article 2(1) of Decision No 3632/93/ECSC, of the
need to minimise the social and regional impact of
restructuring.

The aid helps, in accordance with the provisions of
Article 3 of the abovementioned Decision, to slightly
the
the
improve
undertakings
in
productivity as a result of
the maintenance of a
qualified underground labour force reduces production
costs.

competitiveness of
increase
since

insufficient
concerned

the

Germany gives its assurance that the aid together with
any other aid for current production will not exceed
the difference between production costs and expected
income in any undertaking or production unit.

In the light of the above and on the basis of the
information provided by Germany, the aid proposed
for 1998 is compatible with the objectives of Decision
No 3632/93/ECSC,
in particular Articles 2 and 3
thereof.

According to the information supplied by Germany,
the production decrease between 1992 and 1998 is
expected to be 22 %. The aid proposed for 1998 is
compatible with Decision No 3632/93/ECSC,
in
particular Articles 2 and 4 thereof.

VII

VI

The aid totalling DEM 81 million to cover extra
payments to German miners ((cid:28)Bergmannspr(cid:228)mien’),

to

the

assist

undertakings

Saarbergwerke AG,

RAG
The
aid
Preussag
Aktiengesellschaft,
Anthrazit GmbH and Sophia Jacoba GmbH to cover
exceptional costs in accordance with Article 5 of
Decision No 3632/93/ECSC amounts to DEM 1 011
million.

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This financial measure includes, firstly, aid amounting
to DEM 161 million to cover exceptional costs to
assist
undertakings RAG Aktiengesellschaft,
Saarbergwerke AG and Preussag Anthrazit GmbH.

the

producers during the negotiations ((cid:28)Kohlerunde’) on
11 November 1991.

The aid is intended to cover additional drainage costs
in mines closed down as part of restructuring and near
to working pits. Since little or no water is pumped out
of the closed-down mines, water which has nothing to
do with the existing production flows
into the
working pit nearby, thereby giving rise to additional
costs. This water also has to be purified.

of

II(b)

This aid, which is not related to current production
and is specifically provided for in Section I(i) and
to Decision No
Section
the Annex
3632/93/ECSC, covers expenditure,
resulting from
restructuring, on the supply of water and the removal
of waste water. To meet the requirements of Article 5
of the Decision, the special aid may not exceed the
expenditure.

as

jobs

a
the

restructuring
pensions
of

It is intended to cover the following costs, except the
costs of social benefits which the State has taken on as
a special contribution within the meaning of Article
56 of the ECSC Treaty: the costs of paying social
welfare benefits resulting from the pensioning-off of
workers before they reach statutory retirement age,
other exceptional expenditure on workers who lose
and
result
of
their
rationalisation,
and
payment
allowances outside the statutory system to workers
who lose their jobs as a result of restructuring and
rationalisation and to workers
entitled to such
payments before the restructuring, supply of free coal
jobs as a result of
their
to workers who lost
restructuring and rationalisation and to workers
entitled to such supply before the restructuring. From
a technical and financial viewpoint, it is intended to
cover additional underground safety work resulting
intrinsic
and
from restructuring
depreciation provided that
from the
restructuring of the industry.

exceptional
results
it

examined the

The Commission has
agreements
between the public authorities and the undertakings
concerned and, as part of an audit, the information
given with regard to costs and has ascertained that the
aid does not exceed the earmarked resources.

This aid to cover the costs expressly referred to in
Section I(a), (b), (c), (d), (f) and (k) of the Annex to
Decision No 3632/93/ECSC may not exceed the said
costs if it is to be in conformity with the provisions of
Article 5 of the abovementioned Decision.

This will make it possible to reduce the pressure on
the undertakings concerned, which will reduce their
financial imbalance and enable them to continue their
activities. The aid therefore
complies with the
objectives given in Article 2(1) of Decision No
3632/93/ECSC.

The Commission has
information
regarding the costs as part of an audit and has
ascertained that the aid does not exceed the earmarked
resources.

examined the

abovementioned financial measure

The
includes,
secondly, aid to cover exceptional costs amounting to
DEM 850 million to assist the undertakings RAG
Aktiengesellschaft, Saarbergwerk AG and Sophia
Jacoba GmbH.

This will make it possible to reduce the pressure on
the undertakings concerned, which will reduce their
financial imbalance and enable them to continue their
complies with the
activities. The aid therefore
objectives given in Article 2(1) of Decision No
3632/93/ECSC.

The aid is intended to cover the costs arising from or
having arisen from the restructuring of
the coal
industry which are not related to current production
(inherited liabilities).

VIII

This aid is the result of decisions taken by mining
the Federal
undertakings and electricity producers,
Government,
of North
State Governments
Rhine-Westphalia and the Saar and the trade unions
representing the mining industry and the electricity

the

The aim is to minimise the aid. Pursuing the principle
applied by Germany that aid is only to be paid for
production which is supplied for electricity generation
industry,
and to the Community iron and steel
Germany undertakes to sell the production intended
for use by industry and as domestic coal at prices (net
prices without discounts) which cover the production
costs.

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EN

Official Journal of the European Communities

27.4.1999

The Commission notes that Germany has included in
regulations the measures needed to ensure that the aid
granted under this Decision does not exceed the
difference between production costs and the selling
price for delivery to user undertakings freely agreed
between the contracting parties on the basis of the
conditions prevailing on the world market. The aid
per tonne of current production may not cause prices
for Community coal to be lower than those of coal of
a similar quality from third countries. Germany will
also take care to ensure that the aid does not distort
competition or produce discrimination between coal
producers or between coal buyers and users in the
Community.

Germany gives its assurance pursuant to the provisions
of Article 86 of the ECSC Treaty that the aid will be
limited to what is absolutely essential, taking account
of social and regional considerations relating to the
decline of coalmining in the Community, and that it
will not provide an economic advantage,
either
directly or
for any activity other than
coalmining — for example, for industrial activities
relating to the mining or processing of coal from the
Community.

indirectly,

Furthermore, the Commission would remind Germany
that an essential feature of the aid rules is that the aid
must be in the Community interest and must not
disturb the functioning of the common market.

To enable the Commission to examine whether the
production units which receive operating aid pursuant
to Article 3 of Decision No 3632/93/ECSC actually
generate a trend towards a reduction in production
costs at world prices, Germany undertakes to notify
the Commission no later than 30 September of each
year of the production costs during the previous year
to Article 9 of
and of all
Decision No 3632/93/ECSC.
the conditions laid
down in Article 3(2) of Decision No 3632/93/ECSC
cannot be met, Germany will propose the necessary
corrective action to the Commission such as a review
of the classification of mines pursuant to Articles 3
and 4 of Decision No 3632/93/ECSC.

information pursuant

If

than 30 September 1999 of the level of aid actually
paid in 1998 and of any changes
to the sums
originally notified. In this annual list, Germany will
provide
verifying
all
criteria laid down in the
compliance with the
abovementioned Articles.

information

required

for

In approving the aid,
account of
regional impact of restructuring,

the Commission has taken
the need to minimise the social and

HAS ADOPTED THIS DECISION:

Article 1

Germany is hereby authorised to take the following
measures to assist the coal industry:

(a) operating aid as defined in Article 3 of Decision
No 3632/93/ECSC totalling DEM 5 171 million;

(b) aid for the reduction of activity as defined in
Article 4 of Decision No 3632/93/ECSC totalling
DEM 3 164 million;

(c) aid as defined in Article 3 of Decision No
3632/93/ECSC totalling DEM 81 million to
maintain
force
underground
((cid:28)Bergmannspr(cid:228)mie’);

labour

an

(d) aid as defined in Article 5 of Decision No
3632/93/ECSC totalling DEM 161 million to assist
Aktiengesellschaft,
RAG
the
Saarbergwerke AG and Preussag Anthrazit GmbH
to cover exceptional costs;

undertakings

undertakings

(e) aid as defined in Article 5 of Decision No
3632/93/ECSC totalling DEM 850 million to assist
the
Aktiengesellschaft,
RAG
Saarbergwerke AG and Sophia Jacoba GmbH to
cover exceptional costs to enable the undertakings
to cover the costs arising from or having arisen
from the restructuring of the coal industry which
are not related to current production.

Article 2

The Commission is required, in accordance with the
second indent of Article 3(1) and Article 9(2) and (3)
of Decision No 3632/93/ECSC, to verify whether the
aid granted for current production achieves
the
objective set out in Articles 3 and 4 of the Decision.
Germany must therefore provide notification no later

In accordance with Article 86 of the ECSC Treaty,
Germany undertakes to take all appropriate measures,
whether general or particular, to ensure fulfilment of
the obligations arising from this Decision. Germany
shall ensure that the aid granted is used only for the

27.4.1999

EN

Official Journal of the European Communities

L 109/23

specified purposes and that any unused, over-estimated
or misused expenditure in relation to any items
referred to in this Decision is repaid to Germany.

Article 4

This Decision is addressed to the Federal Republic of
Germany.

Article 3

Done at Brussels, 2 December 1998.

Germany shall provide information no later than 30
September 1999 about payments actually made during
the 1998 financial year and shall
forward the
information pursuant
to Article 9 of Decision No
3632/93/ECSC.

For the Commission

Christos PAPOUTSIS

Member of the Commission