Opinion of the Economic and Social Committee on the "Proposal for a Council Regulation on State aid to the coal industry"
Date: 2001-11-28
Institutions: European Economic and Social Committee
Subjects: ECSC, State aid, coal industry, energy supply, security of supply

21.2.2002

EN

Official Journal of the European Communities

C 48/49

proposed Directive on harmonised driving bans at week-
ends/public holidays (1).

(1) COM(2000) 759 final — OJ C 120 E, 24.4.2001.

3.6.
Clearly it will also be necessary to amend Directive
92/24 in order to permit EC standardisation of speed limiters.
The Commission intends to submit a proposal to this effect as
soon as possible.

Brussels, 28 November 2001.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation on
State aid to the coal industry’

(2002/C 48/10)

On 19 September 2001 the Council decided to consult the Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 6 November 2001. The
rapporteur was Mr Gafo Ferna´ndez.

At its 386th plenary session of 28 and 29 November 2001 (meeting of 28 November), the Economic and
Social Committee adopted the following opinion by 107 votes to one with eight abstentions.

1.

Introduction

2. Comments

1.1.
This is the first time the ESC has been consulted on
this subject, which traditionally fell to the ECSC Consultative
Committee. The expiry of the ECSC Treaty in July 2002
requires both Community bodies to be consulted on this
matter. The ESC therefore wishes to base itself on the opinion
of the ECSC Consultative Committee, which is naturally more
experienced in this area, while making comments to ensure
that the present opinion is in keeping with earlier ESC opinions
on energy policy and individual sources of energy.

This would also allow foundations to be laid for
1.2.
harnessing the rich experience of
the ECSC Consultative
Committee for the purposes of the ESC’s future work. Con-
sideration of how to do this is at an advanced stage in both
committees, and a formal proposal will subsequently be made
to the Commission, the European Parliament and the Council
of Ministers.

The Committee welcomes the draft regulation, which
2.1.
sets out to extend until 2010 the conditions under which,
subject to mandatory authorisation by the European Com-
mission, any state aid which the Member States may grant to
their coal industries will remain compatible with the common
market.

The ESC believes that, as clearly illustrated by current
2.2.
events, security of energy supply is a long-term concern which
must be taken into due and proportionate account when
formulating other policies such as free movement of goods, or
competition.

The ESC supports the existence of

2.3.
three separate
categories of aid to the coal industry, covering (i) exceptional
aid arising from ‘inherited liabilities’
(ii) aid to safeguard
resources and (iii) aid for the ordered reduction of activity.

C 48/50

EN

Official Journal of the European Communities

21.2.2002

2.4.
The ESC also endorses both the general arrangements
for applying such aid and the system for the Member States to
provide the relevant information, as well as the European
Commission’s evaluation and approval system, which must be
applied with maximum transparency.

As it has done for other sources of energy, the ESC
2.5.
supports the idea of a gradual reduction in state aid, and calls
for all sources of energy to be progressively brought into line
with normal market conditions, in order to prevent a situation
to make the
whereby certain energy sources might
necessary efforts to increase productivity or reduce unit
production costs by technological means.

fail

It therefore considers that the 15 % of electricity
2.6.
production which, under the terms of the directive on the
internal market in electricity, may be given ‘non-economic’
priority, represents the maximum amount of
‘indigenous
energy’ which may be considered eligible for aid and consistent
with legislation.

2.7.
The ESC does not however have the same clear
the link
understanding as the European Commission of
between aid to the coal industry and the framework for aid for
renewable energy, or the transfer of public resources between
the two.

2.8. While it is true that both energy sources make a
significant contribution to increasing security of supply, aid to
the coal industry does not take place in all EU countries, and
the situation and outlook regarding renewable energies cannot
be compared with those for the coal industry. The first are
embryonic, geographically dispersed industries, while the coal
industry has been declining for decades and is concentrated in
given regions, or even localities. The social and employment
is therefore completely different, as must be the
impact
solutions.

Brussels, 28 November 2001.

2.9.
Consequently, the ESC wishes to support the proposal
by the ECSC Consultative Committee to the effect that the
framework for aid, which is extended to 2010, should not be
revised in 2008, as provided in the draft regulation. The
Commission justifies this on the grounds that the general
scheme provisionally covering aid to renewable energies will
expire at the same time. The ESC considers this argument to
be unsound, since the directive on renewable energy already
provides a framework for specific aid, possibly distinct from
the current aid, based on the general framework for environ-
mental protection aid. The new framework for renewable
energy could therefore also be made to coincide with the 2010
mark, bringing it into line with the coal industry.

2.10.
The ESC supports the view of the ECSC Consultative
Committee that a regulation which aims to improve energy
supply security and provide a solid primary energy base cannot
at the same time require a ‘continuous reduction’ of all aid for
coal. The ESC is pleased that the Member States are to have
the possibility of maintaining a stable minimum level of
production of indigenous hard coal, which will make access to
substantial deposits possible. This includes maintaining an
operational infrastructure, the professional qualifications of a
nucleus of miners and technological expertise. Consequently,
the continuous reduction of aid can only be required until the
minimum level necessary for security of supply has been
reached.

The ESC proposes continuing the current arrange-
2.11.
ments,
concerning closure of plants,
including those
unchanged until 2010. However, it advocates assessing the
system in force in 2008 and opening discussions on the
scheme to be introduced in 2011, thereby giving the industry,
workers and users sufficient time for preparation.

This would also have a highly beneficial effect on the
2.12.
applicant countries with major coal industries (Poland and the
Czech Republic), which would otherwise have insufficient time
in which to restructure their industries, which are socially and
economically of great importance, and would also be able to
request further transitional periods, further fragmenting the
internal market for electricity.

The President

of the Economic and Social Committee

Göke FRERICHS