EC Authorizes State Aid for Spanish Coal
July 21, 2009 // Published as a news service by IHS
The European Commission (EC) decided on July 14 not to raise any objections to the Spanish government's plan for accessing coal reserves for 2008-2010 nor to the annual state aid for the corresponding coal production.
The overall support granted by Spain as current production aid amounts to €1.247 billion.
On the basis of the information provided by Spanish authorities, the EC established that the aid to the coal sector only covered the difference between the production costs and revenues of the mining units.
In addition, Spain continues to reduce the mining capacity of its coal industry and relevant state subsidies.
The EC came to the conclusion that the proposed aid measure respects the provisions of the European Council's regulation on state aid to the coal industry1 and is therefore compatible with the proper functioning of the common market.
Council Regulation (EC) No 1407/2002 of July 23, 2002 on state aid to the coal industry, OJ L.205, p.1, 2.8.2002.
Source: European Commission (EC).