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COMMISSION DECISION
OF 14 OCTOBER 1988
APPROVING AID FROM PORTUGAL TO THE COAL INDUSTRY DURING 1988
( ONLY THE PORTUGUESE TEXT IS AUTHENTIC )
( 88/558/ECSC )
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY,
HAVING REGARD TO COMMISSION DECISION NO 2064/86/ECSC OF 30 JUNE 1986 ESTABLISHING COMMUNITY RULES FOR STATE AID TO THE COAL INDUSTRY ( 1 ),
WHEREAS :
I
BY LETTERS OF 29 APRIL, 16 MAY AND 1 AUGUST 1988 THE PORTUGUESE GOVERNMENT INFORMED THE COMMISSION, PURSUANT TO ARTICLE 9 ( 2 ) OF DECISION NO 2064/86/ECSC, OF THE FINANCIAL MEASURES IT INTENDS TO TAKE DURING 1988 TO GIVE DIRECT OR INDIRECT SUPPORT TO THE COAL INDUSTRY . AID TO COVER OPERATING LOSSES TOTALLING ESC 279 965 000 IS SUBMITTED FOR THE APPROVAL OF THE COMMISSION UNDER THE ABOVE DECISION .
THIS AID WILL COVER THE DIFFERENCE BETWEEN PROJECTED AVERAGE COSTS AND PROJECTED AVERAGE REVENUE FOR EACH TONNE PRODUCED . THE AID WILL NOT EXCEED EXPECTED OPERATING LOSSES AND HENCE COMPLIES WITH THE CONDITIONS OF ARTICLE 3 ( 1 ) OF THE DECISION .
THE PURPOSE OF THE AID IS TO PREVENT PREMATURE PIT CLOSURES AND FORMS PART OF A REGIONAL INDUSTRIAL DIVERSIFICATION POLICY . IT HENCE CONTRIBUTES TO SOLVING THE SOCIAL AND REGIONAL PROBLEMS RELATED TO DEVELOPMENTS IN THE COAL INDUSTRY, IN ACCORDANCE WITH THE THIRD INDENT OF ARTICLE 2 ( 1 ).
II
THE FOLLOWING OBSERVATIONS SHOULD BE MADE ON THE COMPATIBILITY OF THE PROPOSED AID TO CURRENT PRODUCTION IN 1988 WITH THE PROPER FUNCTIONING OF THE COMMON MARKET :
_ THERE ARE UNLIKELY TO BE SUPPLY DIFFICULTIES IN 1988,
_ PORTUGUESE COAL PRICES SHOULD NOT, IN PRINCIPLE, LEAD TO INDIRECT AID TO COAL USERS IN 1988 .
THEREFORE THE AID TO BE GRANTED TO THE CURRENT PRODUCTION OF THE PORTUGUESE COAL INDUSTRY IN 1988 IS COMPATIBLE WITH THE PROPER FUNCTIONING OF THE COMMON MARKET .
III
PURSUANT TO ARTICLE 11 ( 2 ) OF DECISION NO 2064/86/ECSC, THE COMMISSION MUST ENSURE THAT THE DIRECT AID TO CURRENT PRODUCTION WHICH IT AUTHORIZES IS USED EXCLUSIVELY FOR THE PURPOSES SET OUT IN ARTICLES 3 TO 6 THEREOF . THE COMMISSION MUST THEREFORE BE INFORMED OF THE AMOUNTS OF PAYMENTS AND THE MANNER IN WHICH THEY ARE APPORTIONED .
HAS ADOPTED THIS DECISION :
ARTICLE 1
PORTUGAL IS HEREBY AUTHORIZED TO GRANT AID TO COVER OPERATING LOSSES TOTALLING ESC 279 965 000 TO THE COAL INDUSTRY WITH EFFECT FROM 1 JANUARY 1988 FOR THE 1988 CALENDAR YEAR .
ARTICLE 2
THE PORTUGUESE GOVERNMENT SHALL INFORM THE COMMISSION BY 30 JUNE 1989 OF THE ACTUAL AMOUNTS OF AID PAID IN 1988 .
ARTICLE 3
THIS DECISION IS ADDRESSED TO THE PORTUGUESE REPUBLIC .
DONE AT BRUSSELS, 14 OCTOBER 1988 .