Brussels, 01/04/2004 (Agence Europe) - The European Commission decided on Tuesday to open a formal investigation procedure into the Spanish proposal to grant aid to several coal-mining companies for the period 2003-2005. It intends to ascertain whether the restructuring plan notified by Madrid is in line with European legislation on State aid to the coal industry. Spain, therefore, is called upon to present its comment and supply all the information the Commission needs to assess the aid regime.
The Commission will see whether the coal restructuring plan for 2003-205, which Spain notified to the Commission, is compatible with the EC Treaty. The aid regime is designed to support Spanish coal-mining companies while the sector is being restructured. Under this plan, these companies will receive aid for the reduction of activity, aid to access to coal reserves and/or aid to cover exceptional expenditure resulting from the restructuring. In total, this aid will be 5 billion EUR for 2003-2005. The Spanish authorities propose reducing production capacity. The corresponding reduction of aid to cover operating deficits would be 4% per year for the years 2003, 2004 and 2005. The authorities must now look into which part is destined for reduction of activity, and which for maintaining access to coal reserves. It will also examine the criteria to be fulfilled by the companies in order to receive the aid, and whether the conditions laid down in previous Commission decisions on aid to coal-mining companies will be respected.