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Image header Agence Europe
Europe Daily Bulletin No. 10275
Contents Publication in full By article 11 / 29
GENERAL NEWS / (eu) eu/state aid

Coalmine aid extended to 2018

Brussels, 10/12/2010 (Agence Europe) - As expected, on Friday 10 December the EU Council of Ministers unanimously adopted (bar two abstentions - Sweden and Denmark) a decision for an easier transition between the current special aid scheme for the coal-mining industry in the EU and the general rules that will cover the industry in the future.

The decision extends until December 2018 (rather than 2014, as suggested by the Commission, see EUROPE 10185), the option of member states providing state aid under certain conditions to the coal industry to help close uncompetitive coalmines.

The decision lays down rules for the reduction and phasing out of the aid to avoid any unfair competition in the single market. Member states granting such aid will have to submit a plan of measures to reduce damage to the environment caused by coal-mining.

The decision includes the option of granting subsidies until December 2027 to cover exceptional expenditure relating to the closure of coalmines that is not directly related to mining (welfare spending or rehabilitation of coalmines).

The current rules have been in force since 2002 and expire on 31 December 2010. If they were not extended, then member states would have to immediately shut down un-competitive mines, with severe social, technical and regional consequences. (F.G./transl.fl)

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