WRITTEN QUESTION E-0381/01

by Klaus-Heiner Lehne (PPE-DE) to the Commission

(15 February 2001)

Subject: Coal mining in the Ruhr region, North Rhine-Westphalia

Highly subsidised coal is being mined in North Rhine-Westphalia. The Commission only granted the coal subsidy on condition that there would be an overall decrease in production, leading to further pit closures. However, according to the attached newspaper article, which appeared on 27 January 2001 in the Rheinische Post, Ruhrkohle AG is in fact planning to expand the Walsum pit. In addition, the outline operational plan is to be revised.

1. What is the Commission's view of the expansion to this pit in the light of the expressed political objective and the conditions made with the aim of reducing the production of highly subsidised coal?

2. If necessary, what does the Commission intend to do in order to prevent an increase in coal production?

Answer given by Mrs de Palacio on behalf of the Commission

(20 April 2001)

1. The Commission authorised State aid to the German coal industry for the year 2000 by Decision of 21 December 2000(1). The Decision provides in particular for further reductions of activity which must lead to closures of production sites in addition to the closures already planned by Germany for the years 2000, 2001 and 2002. These additional closures correspond, in the context of aid for 2000, to a reduction in operating aid under Article 3 of Decision 3632/93/ECSC of DM 1 200 million and to an increase in aid for the reduction of activity of the same amount(2).

The reduction in new production capacity was a crucial element in the decision taken by the Commission. The principle of reducing the coal industry's costs and production capacity is necessary in order to achieve degression of aids. Nonetheless, it is not within the Commission's powers to involve itself in decisions taken by the company which owns the mine regarding the operation of any particular pit. The Commission's power of authorisation with regard to State aid to the coal industry must be exercised strictly within the framework of the provisions of Decision No 3632/93/ECSC, and more particularly in the light of the general objectives referred to in Article 2 and the specific criteria laid down for the various types of aid in Article 3 et seq.

It should also be pointed out that the Decision to authorise aid for the year 2000 specifies that Germany undertakes to adopt any general or specific measures necessary to comply with the obligations under the said Decision. Should it emerge that certain measures taken by Ruhrkohle AG were producing a situation other than that required under the terms of the Decision authorising the aid for the year 2000, Germany would be required to ask for the amounts granted but not used in accordance with the Decision to be repaid.

2. On expiry of the ECSC Treaty and Decision No 3632/93/ECSC of 23 July 2002, most of the Community coal industry would be likely to disappear in the very short term if no financial support was given. If we want to guarantee the long-term availability of some Community coal mining capacity to cover any unforeseen events which might affect the energy market, there can be no future for Community coal unless there is a mechanism for intervention by the public authorities. This basic principle has been included in the Green Paper on the security of energy supply adopted by the Commission on 29 November 2000(3). An aid scheme would therefore make it possible to guarantee access to reserves by maintaining a minimum amount of subsidised coal.

The Commission nevertheless believes that such a scheme must not under any circumstances deflect the Member States from the need to rationalise the coal industry. The measures for restructuring and reduction of activity started in the framework of the ECSC Treaty must be continued. Any future Community rules for aid to the coal industry must therefore incorporate the principle of the degression of State aid.

(1) Decision not yet published.

(2) Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community rules for State aid to the coal industry, OJ L 329, 30.12.1993.

(3) COM(2000) 769 final.