Brussels, 22/01/2004 (Agence Europe) - On Wednesday the Commission decided to authorise nearly € 1 billion aid which France is proposing to grant to its coal industry for the year 2003. The aid is meant to cover the costs of closure of the two last operating mines and in particular the social and regional implications of the closures and is two-fold: aid for the reduction of activity and aid covering exceptional costs resulting from the restructuring process: the reduction of activity aid is intended to cover the difference between the production costs and the selling price for coal of similar quality from third countries. The reduction in the volume of production has increased production costs. Aid for exceptional costs notably covers social welfare benefits resulting from the pensioning-off of workers before they reach statutory retirement age and social security costs as a result of the drop, following restructuring, in the number of contributors to the French social welfare regime for miners. The Commission concluded that the aid is compatible with rules on state aid in the coal sector and is therefore compatible with the proper functioning of the common market.