EC probes Spain

EC probes Spain's $6-bil state aid plan for coal industry

Brussels (Platts)--31Mar2004


The European Commission has opened a formal investigation into the Spanish
government's proposal to grant aid to its coal industry, the EC said Tuesday.
Spain is restructuring its coal industry over 2003-2005 to reduce output
capacity, and has budgeted aid for the companies affected totaling Eur5-bil
($6-bil) over the three years. 

It plans to give aid for reducing activity, aid for accessing coal reserves
and/or aid to cover exceptional costs arising from the restructuring. The
planned aid to cover operating deficits for reducing capacity would reduce by
4%/year for each of the three years. The EC is to examine how the aid will be
divided, the criteria for mines to qualify for it, and if the plan's
conditions respect the EC's previous decisions on aid to the coal industry.