IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jun 2010 | Removal date: 31 Dec 2010
Still in force

Production subsidy

On 28 October 2009 Germany notified to the Commission, in accordancewith Article 9 of Council Regulation No 1407/2002 on State aid to thecoal industry, the financial aid which it intends to grant to the hardcoal industry for the year 2010.
 
The beneficiaries of the aid are RAG AG, the largest Germancoalmining company, and Bergwerksgesellschaft Merchweiler mbH. RAG AGhas eight production units which are beneficiaries of the aid;Bergwerksgesellschaft Merchweiler mbH has one single production unit inFischbach.
 
The total amount of notified aid for the year 2010 is 2 018 million EUR. This aid amount is divided as follows:
- Aid for accessing coal reserves amounting to 1 150 million EUR according to Article 5 of the Regulation;
- Aid to cover exceptional costs amounting to 868 million EUR, according to Article 7 of the Regulation.
- The payment of the so-called Bergmannsprämie is no longer foreseen.
 
The aid covers the costs of the coal year 2010.
 
The commission found that the measure constitutes State aid withinthemeaning of Article 107(1) TFEU and gave the followingassessment:
"The subsidy reduces the costs that undertakings should normally bearand therefore favours them. Being granted out of the public budget thepresent subsidy constitutes State resources. Such resources beinggranted to particular undertakings such as RAG AG andBergwerksgesellschaft Merchweiler mbH, the said subsidy favours certainundertakings. By favouring certain undertakings competing on the EU wideopen market the subsidy may distort competition and hamper trade."(par. 45 of the letter form the EC to Germany - Brussels, 18.12.2009 C(2009) 10432)
 
Concerning its decision, the Commission notes that the measurefulfils the Coal Regulation since its conditions are fulfilled and itimplements the restructuring plan which has been approved by theCommission. The Commission considers deviations from the restructuringplan justified.
The Commission has accordingly decided to consider the aid to be compatible with Article 107 (3) (e) of the TFEU.
 
A state measure in the GTA database is assessed solely in terms oftheextent to which its implementation affects the extent ofdiscriminationagainst foreign commercial interests. On this metric,the state aidproposed here is discriminatory.
 
 
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

110 Coal & peat
2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.
270111 Anthracite
270112 Bituminous coal
270119 Other coal
270120 Briquettes, ovoids and similar solid fuels manufactured from coal

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