Commission Decision of 11 December 2001 on the granting by Spain of aid to the coal industry in 2001 (Text with EEA relevance) (notified under document number C(2001) 3975)
Date: 2001-12-11
Institutions: European Commission
Subjects: Spain, State aid, aid system, coal industry, control of State aid, financial aid

26.3.2002

EN

Official Journal of the European Communities

L 82/11

COMMISSION

COMMISSION DECISION

of 11 December 2001

on the granting by Spain of aid to the coal industry in 2001

(notified under document number C(2001) 3975)

(Only the Spanish text is authentic)

(Text with EEA relevance)

(2002/241/ECSC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

3632/93/ECSC, of
during the 2000 coal production year.

the amount of aid actually paid

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

Having regard to Commission Decision No 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 letters of 21 November 2000 and 19 March 2001, a
further letter of 21 March 2001 and a fax dated 20
September 2001, Spain notified the Commission,
pursuant to Article 9(1) of Decision No 3632/93/ECSC,
of the financial support it intended to grant to the coal
industry in 2001. Following Commission requests in
letters dated 23 November 2000, 24 April and 17 July
2001, Spain sent additional information in letters dated
29 June and 14 August 2001.

On 30 March 2001, the Commission sent Spain a letter
before a letter of formal notice requesting information
about the situation as regards the installations of the
former undertaking Minas de Lieres SA and its operating
results from 1994 to 2000. Spain replied by letters of
14 May and 14 August 2001. The Commission
requested further information on 13 September 2001.

(6)

Spain also notified the Commission, by letter of 6
October 2000, of the production costs per undertaking
for 1999.

In a second letter dated 19 March 2001, Spain notified
the Commission, pursuant to Article 9(2) of Decision No

(1)

(2)

(3)

(4)

(1) OJ L 329, 30.12.1993, p. 12.

(5)

Pursuant to Decision No 3632/93/ECSC, the Commis-
sion must rule on the following financial measures
relating to 2001:

(a) aid of ESP 111 310 million (EUR 668 986 573,39)
to cover operating losses by coal undertakings;

(b) aid of ESP 59 507 million (EUR 357 644 272,96)
to cover exceptional welfare aid paid to workers
who lose their jobs as a result of the measures to
modernise, rationalise, restructure and reduce the
industry;
activity of the coal

(c) aid of ESP 19 664 million (EUR 118 183 020,21)
to cover the technical costs of closing down mining
installations as a result of the measures to moder-
nise, rationalise, restructure and reduce the activity
of the coal

industry.

The financial measures proposed by Spain for the coal
industry fall within the provisions of Article 1 of
Decision No 3632/93/ECSC. The Commission must
therefore take a decision on such measures in accord-
ance with Article 9(4) of the Decision. The Commis-
sion's assessment will depend on the compliance of the
measures with the general criteria and objectives laid
down in Article 2 and the specific criteria established by
Articles 3 and 4 of the Decision, and on their compati-
bility with the proper
the common
market. Additionally, in accordance with Article 9(6) of
the Decision,
the Commission when conducting its
assessment must check whether the measures conform
with the modernisation,
restructuring
and activity-reduction plan which the Commission
approved in its Decision 98/637/ECSC.

functioning of

rationalisation,

(7)

(8)

(9)

L 82/12

EN

Official Journal of the European Communities

26.3.2002

II

By Decision 98/637/ECSC (1), the Commission gave an
opinion as to the conformity of the 1998-2002 phase of
the plan notified by Spain for the modernisation, ratio-
nalisation, restructuring and activity-reduction of
the
coal industry with the general and specific objectives of
Decision 98/637/ECSC.

units in receipt of operating aid in 1999 (Article 3 of
Decision No 3632/93/ECSC) revealed a mean reduction
in the cost of production, at 1992 prices, from ECU
92,62/tce in 1994 to EUR 73,37/tce in 1999. This
mean reduction of 20,8 % between 1994 and 1999
breaks down into a reduction of more than 30 % for
14,7 % of production, between 20 % and 30 % for 36 %
of production, between 10 % and 20 % for 31,6 % of
production and between 0 % and 10 % for 17,7 % of
production.

its request

The Commission finds that
to Spain in
Decision 98/637/ECSC that ‘the mines taken over by
Hunosa from Minas de Lieres SA will have to close
down definitively by 31 December 1999’ has not been
complied with by the date given. By letter dated 30
March 2001, the Commission has started a pre-litigation
procedure before a letter of formal notice in order to
examine whether failure to comply with this closure
date was the reason for paying aid to cover production
costs between 1 January 1998 and the closure date.

(15)

restructure

rationalise,

The Commission has analysed the measures taken to
the
modernise,
activity in other Spanish coal undertakings during 2000
and those notified for 2001 and has found that, except
for the analysis which has to be made of the measure
referred to in recital 8, they correspond to the plans
which it approved in Decision No 98/637/ECSC.

and reduce

(10) At 14 678 000 tonnes (9 261 190 tonnes coal equiva-
lent, (tce)), Spain's coal production in receipt of aid in
2000 is 9,3 % lower than in 1998. The production
figure for 2001 is 13 910 000 tonnes (8 776 615 tce),
i.e. 5,23 % lower than in 2000.

(11)

(12)

(13)

(14)

The number of workers in the undertakings fell from
18 140 at the end of 1998 to 15 687 at the end of
2000. A further reduction of 1 000 workers is forecast
for 2001.

Installations with a total production capacity of 4
million tonnes per year have been stated to be in the
process of closing down or reducing their activity during
the 1998 to 2002 phase of Spain's modernisation, ratio-
nalisation, restructuring and activity-reduction plan.

These reductions, which are larger than those initially
envisaged, are due to the inclusion in the activity-reduc-
tion plans, in conformity with Article 4 of Decision No
3632/93/ECSC, of undertakings which were unable to
meet the conditions which would entitle them to oper-
ating aid under Article 3 of the Decision.

By letter of 6 October 2000, and as requested by the
Commission in Decision 2001/162/ECSC (2), Spain noti-
fied the Commission of the undertakings' production
costs in 1999. The Commission's analysis of the trend in
the production costs of the undertakings or production

(1) OJ L 303, 13.11.1998, p. 57.
(2) OJ L 58, 28.2.2001, p. 24.

The UTE Terrales-Ubeda SA undertaking and the
following production units: the María Group of Minero
Siderúrgica de Ponferrada SA, the Escandal Group of
Coto Minero del Sil SA, the Picardín, Pontedo and Arbas
Groups of UMINSA, and the Tres Amigos mine of
Hunosa closed down in 2000. The Antracitas de Gillón
SA, Coto Minero Jove SA (Jovesa), Industrial y Comercial
Minera SA (Incomisa), Minas de la Camocha SA, Hull-
eras del Norte SA, Minas de Escucha SA, Promotora de
Minas de Carbón SA, Mina Escobal SL, Minas de Valde-
loso SL, and Virgilio Rieso SA undertakings and the
underground production units of Endesa and Encasur
have been included in a closure/activity reduction plan
which provides for the closure, by 2005 at the latest, of
these undertakings' production units
to
2 825 000 tonnes per year out of a total capacity of
3 775 000 tonnes per year. The Commission has
checked that the conditions laid down in Article 3(2) of
Decision No 3632/93/ECSC cannot be achieved by these
undertakings or production units, which do however
qualify for activity reduction aid in accordance with
Article 4 of the Decision.

equivalent

(16) During the period 2001 to 2002, Spain will continue to
monitor production cost trends at all coal undertakings
in receipt of operating aid. Should they prove unable to
achieve the downward trend in production costs stipu-
lated in Article 3(2) of Decision No 3632/93/ECSC,
Spain will propose the requisite corrective measures to
the Commission.

(17)

The aid notified by Spain to cover operating losses in
2001 provides
for a reduction in production aid
compared with 2000, at current currency values, of 4 %.
These reductions will help achieve the objective of
digression of aid. The aid under Articles 3 and 4 of
Decision No 3632/93/ECSC is intended to cover all or
part of the difference between the production costs and
the selling price freely agreed between the contracting
parties in the light of the conditions prevailing on the
world market.

26.3.2002

EN

Official Journal of the European Communities

L 82/13

(18)

(19)

(20)

(21)

(22)

(23)

(24)

In accordance with Decision No 3632/93/ECSC, all the
aid which Spain plans to grant to the coal
industry
under the said Decision in 2001 has been entered in
national, regional or local public budgets. Part of this aid
to Hunosa could be channelled via SEPI (Sociedad Estatal
de Participaciones Industriales), of which the under-
taking is part.

In view of the above, the Commission must examine
whether Hunosa's failure to comply with the special
conditions laid down for the installations it took over
from Minas de Lieres SA constitutes an abuse of aid
which would call into question the compatibility of aid
previously granted under Decision No 3632/93/ECSC.
The other measures notified by Spain for 2001 are
deemed to be in line with the general objectives of the
modernisation, rationalisation, restructuring and activity-
reduction plans
approved by the Commission in
Decision 98/637/ECSC.

III

The aid of ESP 111 310 million (EUR 669 046 674,60)
which Spain plans to grant the coal industry in 2001 is
intended to compensate in full or in part for operating
losses sustained by coal undertakings.

is intended to cover

It
the difference between the
production costs and the selling price freely agreed
between the contracting parties in the light of the condi-
tions prevailing on the world market.

The sum notified subdivides into operating aid of
ESP 46 752 million
under
Article 3 of Decision No 3632/93/ECSC, and activity
reduction
million
(EUR 388 001 394,35).

(EUR 280 985 179,04)

ESP 64 558

aid

of

aid

operating

The
ESP 46 752 million
of
(EUR 280 985 179,04) is intended to cover the oper-
ating losses of 42 undertakings with a combined envis-
aged production of 10 706 900 tonnes in 2001.

The Commission notes, after verifying the production
costs of these undertakings, that the downward trend of
production costs at 1992 prices observed in the period
1994-1999 will continue in 2001. The reduction envis-
aged for 2001, compared with 1994, will be 18,5 % at
1992 prices.

— 29,39 % of production at costs between EUR 80 and

99/tce,

— 13,66 % of production at costs above EUR 100/tce.

(26)

The mean selling price to thermal power stations of the
10 706 900 tonnes
(6 700 951 tce) of production
envisaged in 2001 by the undertakings in receipt of
operating aid (Article 3 of Decision No 3632/93/ECSC)
is ESP 10 482/tce (EUR 63/tce).
the
envisaged mean cost of this production in 2001 of
ESP 17 134,43/tce (EUR 102,98/tce), the Commission
notes that the aid notified corresponds to the difference
between the cost of production and the selling price
freely agreed between the contracting parties in the light
of the conditions prevailing on the world market.

In the light of

(27) According to the notifications

from Spain on aid
actually paid,
the Gonzalez y Díez SA undertaking
received aid of ESP 651 908 560 and ESP 463 592 384
in 1998 and 2000, respectively, to cover exceptional
costs resulting from reduction in activity in accordance
with Article 5 of Decision No 3632/93/ECSC. Following
the acquisition of
that undertaking by Minas de la
Camocha SA, the Commission has analysed the manage-
ment reports of the two undertakings and has found
that the aid could have been used for purposes other
than those for which it was authorised and, in particular,
as operating aid of the type provided for in Article 3 of
Decision No 3632/93/ECSC. The Commission finds that
the aid has been entered in the undertaking's accounts as
‘Other operating revenue’ without further identification
of the costs which it is intended to cover. By letters of
25 October 1999, 17 December 1999, 24 April 2001
and 17 July 2001, the Commission has asked Spain for
information to justify the activity-reduction costs. The
Gonzalez y Díez SA undertaking has not justified these
costs
received from Spain dated 2
December 1999 and 29 June 2001. In this context, the
Commission reserves its opinion in this Decision on an
amount of operating aid equivalent to the amount of aid
which is currently being examined by the Commission
to cover that undertaking's exceptional costs in 1998
and 2000.

in the letters

(25)

The mean production cost in 1999, at 1992 prices, of
the undertakings
receiving aid under Article 3 of
Decision No 3632/93/ECSC is EUR 73,37/tce, broken
down as follows:

— 4,23 % of production at costs below EUR 60/tce,

— 52,72 % of production at costs between EUR 60 and

79/tce,

(28) Aid to reduce activity totalling ESP 64 558 million
(EUR 388 001 394,35) is intended to cover the oper-
ating losses of the following undertakings which have
been included in closure and/or action-reduction plans
in conformity with Article 4 of Decision No 3632/93/
ECSC:
million
Hunosa
la Camocha SA
(EUR 321 619 607,42), Minas de
ESP 4 743 million
Endesa
ESP 635 million (EUR 3 816 426,86), the underground
million
workings

(EUR 28 506 004,11),

ESP 53 513

ESP 328

Encasur

of

L 82/14

EN

Official Journal of the European Communities

26.3.2002

(EUR 1 971 319,70, Antracitas de Guillón ESP 782
million (EUR 4 699 914,66), Coto Minero Jove SA
ESP 667 million (EUR 4 008 750,740),
Industrial y
Comercial Minera SA (Incomisa) ESP 144 million
(EUR 865 457,43), Mina Escobal SL ESP 51 million
(EUR 306 516,7), Minas de Escucha SA ESP 351
million (EUR 2 109 552,49), Minas de Valdeloso SL
ESP 120 million (EUR 721 214,53), Promotora de
Minas
million
(EUR 1 791 016,07) and Virgilio Riesco SA ESP 186
million (EUR 1 117 882,51). The remaining sum of
ESP 2 740 million (EUR 16 467 731,66) is intended for
13 undertakings which are
reducing production
capacity. The total production to be covered by the aid
to reduce activity is 3 200 200 tonnes annual capacity.

ESP 298

Carbón

SA

de

(29) Of

of

aid

the

ESP 53 513

granted via

following the consolidation of

million
(EUR 321 619 607,42) to Hunosa, ESP 36 106 million
(EUR 217 001 430,41) will be
SEPI.
the balance
However,
sheets of the undertakings which form part of SEPI,
Hunosa could be compensated by that group through
any tax credit it might receive as a result of
lower
company tax.
In such a case, the aid authorised for
Hunosa for 2001 under this Decision will be reduced by
any compensation it may receive as a tax credit on
company tax following the consolidation of the balance
sheets of the undertakings which are part of SEPI.

(30)

(31)

By letter of 14 May 2001, Spain sent the Commission
information about the Minas de Lieres SA undertaking
taken over by Hunosa. In its letter, Spain enclosed a
report from Hunosa showing that, in 1998, 1999 and
2000,
and
it produced 33 000 tce, 54 000 tce
52 000 tce, respectively, and that it has not received
State aid to cover the operating losses, as the Commis-
sion had asked in its Decision No 98/637/ECSC of 3
June 1998. The Commission believes that Minas de Lier-
es's operating losses during the period 1998 to 2000 are
higher
than those notified since Hunosa does not
include the cost of labour and capital services in its
notification. The Commission is of the opinion that the
operating losses for 1998, 1999 and 2000 and those
to ESP 6 000
foreseeable for 2001 could amount
million and has asked Spain for additional information.
The Commission must analyse whether Hunosa's failure
to comply with the conditions on the basis of which it
took its decision for Minas de Lieres constitutes an abuse
of aid which calls into question the compatibility of aid
previously granted with Decision 98/637/ECSC.

By letter of 14 August 2001, Spain informed the
Commission that Minas de la Camocha SA had not
repaid ESP 226 million out of the total of ESP 665
million which the Commission did not authorise for that
undertaking in Decision 98/635/ECSC of 3 June 1998 (1)
and which was paid in anticipation of authorisation
In its letter dated 14 August
from the Commission.
2001, Spain informed the Commission that it was still
taking action to obtain repayment of the aid. In accord-
ance with Article 9(5) of Decision No 3632/92/ECSC,
any such payment must be considered to be an unjusti-
fied cash advance and, as such, must be liable to charges
rate payable by the recipient. The
at
to be reim-
Commission considers that
the amount
is
bursed, at interest rates between 1996 and 2001,

the market

ESP 287 million. If that amount is not repaid by Minas
de la Camocha SA, the Commission reserves the right to
take a decision, for 2001, on an amount of activity-
reduction aid to that undertaking of ESP 287 million.

The mean selling price to thermal power stations of the
3 200 000 tonnes (2 056 229 tce) of production envis-
aged in 2001 by undertakings in receipt of aid to reduce
activity is ESP 9 400,80/tce (EUR 56,5/tce). In the light
of the envisaged mean cost of this production in 2001
of ESP 46 052,30/tce (EUR 276,78/tce), the Commis-
sion notes that the aid notified corresponds to the differ-
ence between the cost of production and the selling
price freely agreed between the contracting parties in the
light of the conditions prevailing on the world market.

The aid to cover the operating losses sustained by coal
undertakings has been entered in the general State
budgets for 2001. It is 4 % lower than the aid authorised
by the Commission for 2000. Spain sent notification of
the Spanish Council of Ministers' Resolution on the
company-by-company allocation of this aid. This Reso-
lution has been published in Spain's Boletín Oficial del
Estado español (2).

The inclusion of this measure in the modernisation,
rationalisation, restructuring and activity-reduction plan
notified by Spain, and the reduction in the aid and
quantities envisaged for 2001, are in line with the objec-
tives of the first and second indents of Article 2(1) of
Decision No 3632/93/ECSC, and in particular the objec-
tive to solve the social and regional problems created by
developments in the coal

industry.

Except
for aid of ESP 287 million to Minas de la
Camocha SA, ESP 1 115,5 million to González y Díez
SA, and ESP 6 000 million to Hunosa, on the basis of
the information provided by Spain the aid proposed for
2001 is compatible with Articles 3 and 4 of Decision
No 3632/93/ECSC and the proper functioning of the
common market. The Commission will decide at a later
date on the balance of ESP 7 402,5 million once it has
analysed the information it receives from Spain in reply
to its questions.

(32)

(33)

(34)

(35)

(1) OJ L 303, 13.11.1998, p. 47.

(2) BOE No 83, 6.4.2001, p. 13055.

26.3.2002

EN

Official Journal of the European Communities

L 82/15

IV

V

(36)

(37)

(38)

The aid of ESP 59 507 million (EUR 357 644 272,96)
which Spain is proposing to grant is intended to cover,
with the exception of the costs for the payment of social
welfare benefits borne by the State as a special contribu-
tion pursuant to Article 56 of the Treaty, compensation
paid to workers in Spanish coal undertakings who have
lost their jobs or have had or will have to take early
retirement under
rationalisation,
restructuring and activity-reduction plan for the Spanish
coal

the modernisation,

industry.

(43)

(44)

of

aid,

this

Part
ESP 37 507 million
totalling
(EUR 225 421 609,99), is to be granted to Hunosa to
cover the cost of workers who took early retirement
before 1 January 2001 and about 500 workers who will
retire in 2001. This part of the aid will be granted to
Hunosa via SEPI.

remaining

ESP 22 000

The
million
(EUR 132 222 662,96) is intended to cover compensa-
tion for some 7 200 workers in other undertakings in
early retirement at the end of 2001 as a result of the
modernisation, rationalisation, restructuring and activity
reduction measures.

(39)

This aid, designed to cover exceptional costs that have
arisen or are due to arise from restructuring, has been
entered in the general State budgets for 2001.

(40)

(41)

These financial measures relate to action made necessary
by the modernisation, rationalisation and restructuring
of the Spanish coal
industry and cannot therefore be
considered to be related to current production (inherited
liabilities).

Pursuant to Article 5 of Decision No 3632/93/ECSC, the
aid mentioned explicitly in the Annex to the Decision,
namely the
cost of paying social-welfare benefits
resulting from the pensioning-off of workers before they
reach statutory retirement age and other exceptional
expenditure on workers who lose their jobs as a result of
restructuring and rationalisation, may be considered
compatible with the common market provided that the
amount paid does not exceed the costs.

(42)

In view of the above and on the basis of the information
provided by Spain, this aid is compatible with Article 5
of Decision No 3632/93/ECSC and with the proper
functioning of the common market.

The aid of ESP 19 664 million (EUR 118 183 020,21)
which Spain proposes to grant is intended to cover the
loss of value of the fixed assets of coal undertakings
which have to close down totally or partially, and other
exceptional costs to enable undertakings to cover the
costs that have arisen or are due to arise from the
progressive closures connected with the restructuring of
the coal

industry.

of

aid,

this

ESP 9 988 million
totalling
Part
(EUR 60 029 088,99), will be granted to Hunosa via
SEPI. The remaining sum, totalling ESP 9 676 million
(EUR 58 153 931,22), will be granted to the other
undertakings that are restructuring or reducing their
activity.

(45)

The aid to cover exceptional costs arising or due to arise
from restructuring has been entered in the general State
budgets for 2001.

(46)

(47)

(48)

(49)

These financial measures relate to action made necessary
by the modernisation, rationalisation and restructuring
of the Spanish coal
industry and cannot therefore be
considered to be related to current production (inherited
liabilities).

Pursuant to Article 5 of Decision No 3632/93/ECSC, the
aid mentioned explicitly in the Annex to the Decision,
namely exceptional intrinsic depreciation provided that
it results from the restructuring of the industry (without
taking account of any revaluation which has occurred
since 1 January 1986 and which exceeds the rate of
inflation) and other additional work and residual costs
arising from closures of installations, can be considered
compatible with the common market provided that the
amount paid does not exceed the costs.

Spain must ensure that the aid granted to undertakings
to cover exceptional costs is in line with the categories
of costs specified in the Annex to Decision No 3632/93/
ECSC.

The Commission has asked Spain for information about
part of the ESP 9 988 million which it plans to grant to
Hunosa and which could be intended to cover the cost
of closing down the installations of the former Minas de
Lieres SA undertaking. Spain granted aid in 1993 for the
closure of these installations and may not grant new aid
for that purpose. The Commission will decide at a later
date
ESP 4 795 million
(EUR 28 188 530,41), which it considers could be the
amount proposed by Spain to cover the costs of closing
down Minas de Lieres SA.

amount

the

on

of

L 82/16

EN

Official Journal of the European Communities

26.3.2002

(50)

(51)

(52)

(53)

(54)

(55)

Spain informed the Commission of its intention to grant
ESP 393 971 600 (EUR 2 367 817,00) to González y
Díez SA to cover the cost of reducing annual production
capacity by 34 000 tonnes during 2001. González y
Díez SA has not been able to show that the aid granted
for the same purpose for 1998 and 2000 complied with
Article 5 of Decision No 3632/93/ECSC and the
Commission has asked Spain for information about the
intended purpose of the aid which it plans to grant in
2001.

Except for the sum of ESP 4 795 million to Hunosa and
ESP 394 million to González y Díez SA and on the
basis of the information provided by Spain, the aid is
compatible with Article 5 of Decision No 3632/93/
ECSC and the proper
the common
market. The Commission will decide on the balance of
ESP 5 189 million at a later date once it has analysed
the information it receives from Spain in reply to its
questions.

functioning of

VI

The aid granted by Spain to the coal
industry is
restricted to coal production destined to be used for
electricity production. Spain undertakes to ensure that
coal sold to the industrial and domestic sectors is sold at
prices (exempt from compensation) that cover the costs
of production.

Spain must ensure that
the aid granted to current
production under this Decision does not give rise to any
discrimination
between
purchasers or between users on the Community coal
market.

producers,

between

coal

in accordance with the third
Spain must ensure that,
indent of Article 3(1) of Decision No 3632/93/ECSC, aid
to cover the difference between the cost of production
and the selling price per tonne does not cause selling
prices for Community coal to be lower than those for
coal of a similar quality from non-member countries.

Spain must ensure that, within the framework of the
provisions of Article 86 of the Treaty, the aid is limited
to that which is strictly necessary in the light of the
social and regional considerations which characterise the
decline of the Community's coal industry. The aid may
not give any economic advantage, whether directly or
indirectly, to productions for which no aid is authorised
or to other activities distinct from coal production. In
particular, Spain must ensure that aid granted to under-
takings under Article 5 of Decision No 3632/93/ECSC
to cover the technical costs of closure is not used by the
undertakings as aid for current production (Articles 3

and 4 of the Decision) and that the closure of capacity
for which the aid is intended is definitive and that it is
carried out in optimum conditions of safety and envir-
onmental protection.

(56)

(57)

(58)

In accordance with the second indent of Article 3(1) and
with Article 9(2) and (3) of Decision No 3632/93/ECSC
the Commission must verify that the aid authorised for
current production responds exclusively to the objectives
stated in Articles 3 and 4 of the Decision. Spain must
notify the Commission, no later than 30 June 2002, of
the amount of aid actually paid during 2001, and
declare any corrections made to the amounts originally
notified. When submitting this annual statement of aid
paid, Spain must also supply the Commission with all
the information necessary for verification of the criteria
set out in the Articles in question.

In approving the aid, the Commission has recognised
the need to soften, as far as possible, the social and
regional impact of the restructuring of the coal industry,
given the economic and social situation surrounding the
mines affected.

In view of the above, and on the basis of the informa-
the aid and the measures
tion provided by Spain,
proposed for the coal industry are compatible with the
objectives of Decision No 3632/93/ECSC and with the
proper functioning of the common market,

HAS ADOPTED THIS DECISION:

Article 1

Spain is hereby authorised to pay the following aid in respect
of 2001:

(a) operating

aid

ESP 45 636 499 056
of
(EUR 274 280 883,34) under Article 3 of Decision No
3632/93/ECSC; the Commission will decide at a later date
on the outstanding
amount of ESP 1 115 500 944
(EUR 6 704 295,70) paid to González y Díez SA;

the

outstanding

(b) aid for the reduction of activity of ESP 58 271 000 000
(EUR 350 215 763,35) under Article 4 of Decision No
3632/93/ECSC; the Commission will decide at a later date
on
ESP 6 000 million
sum of
(EUR 36 060 726,26) for Hulleras del Norte SA (Hunosa)
and ESP 287 million (EUR 1 724 904,74) for Minas de la
Camocha SA; the authorised aid of ESP 58 271 000 000
will be deducted from any compensation that Hunosa may
receive as tax credit on company tax following the consoli-
dation of the balance sheets of the undertakings incor-
porated in SEPI.

26.3.2002

EN

Official Journal of the European Communities

L 82/17

(c) aid of ESP 59 507 million (EUR 357 644 272,96) under
Article 5 of Decision No 3632/93/ESSC to cover excep-
tional welfare aid for workers who lose their jobs as a
result of the measures to modernise, rationalise, restructure
and reduce the activity of the Spanish coal

industry;

(d) aid of ESP 14 475 million (EUR 89 996 502,11) under
Article 5 of Decision No 3632/93/ESSC to cover the tech-
nical costs of closing down mining installations as a result
of the measures to modernise, rationalise, restructure and
industry. The
reduce the activity of
Commission will decide at a later date on the outstanding
amount of ESP 4 795 million paid to Hunosa and the
ESP 394 million paid to González y Díez SA.

the Spanish coal

Article 2
In accordance with Article 86 of the ECSC Treaty, Spain shall
adopt all appropriate measures, whether general or particular,
to ensure fulfilment of
the obligations resulting from this
Decision. It shall ensure that the aid authorised is used for the

purposes intended and that any unspent, overestimated or
incorrectly used aid for any item covered by this Decision is
repaid to it.

Article 3

Spain shall notify the Commission, by 30 June 2002 at the
latest, of the amount of aid actually paid in respect of 2001.

This Decision is addressed to the Kingdom of Spain.

Article 4

Done at Brussels, 11 December 2001.

For the Commission

Loyola DE PALACIO

Vice-President