8. 1.9 Official Journal of the European Communities No L §/27 COMMISSION DECISION of 25 July 1990 ruling on financial measures by Spain in respect of the coal industry in 1988, 1989 and 1990 (Only the Spanish text is authentic) (91/3/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 (), and in particular Articles 2 (1) and 10 thereof, Whereas : By letter of 26 September 1989, the Spanish Government informed the Commission, pursuant to Article 9 (2) of Decision No 2064/86/ECSC, of the financial measures it intended to take during 1990 in order to give direct or indirect support to the coal industries. By letter of 15 June 1990, in answer to the Commission’s requests of 1 December 1989 and 127 January 1990, the Spanish Government communicated further information. In its letter of 15 June 1990, pursuant to the provisions of Article 9 (2) of Decision No 2064/86/ECSC, the Spanish Government also notified the Commission of new finan- cial measures it intended to take in respect of 1989 and 1988. The following aid is submitted for the approval of the Commission pursuant to the abovementioned Decision : — aid to cover operating losses in 1990 : Pta 50 830 million, — additional aid to cover operating losses in 1989 and 1988 : Pta 20269 million and Pta 369,1 million respectively, — aid to sales of coal and coke to the Community iron and steel industry in 1990 : Pta 1 400 million, — aid to the mining environment for 1990 : Pta 268 million, () OJ No L 177, 1. 7. 1986, p. 1. — aid to promote innovation in 1990 : Pta 280 million. I The aid of Pta 50 830 million to cover operating losses aims at compensating the difference between average esti- mated costs and average estimated revenue in respect of _production of 4262000 tonnes for each tonne of coal produced by the undertakings Hunosa, Figaredo and Minero Siderurgica de Ponferrada (as regards those of its activities concerned with the Camocha mine). By Decisions 89/102/ECSC (), 88/50S/ECSC(}) and 87/454/ECSC (%), the Commission authorized aid to cover operating losses for 1989, 1988 and 1987 the grounds that it would help the process of restructuring the coal industry, particularly by staggering the dates of closure of certain pits with no prospects of economic viability in the context of regional industrial redevelopment policy. The aid would thus help to solve the social and regional problems related to developments in the coal industry, pursuant to the third subparagraph of Article 2 (1) of Decision No 2064/86/ECSC. Contrary to this restructuration objective, the Commission notes that aid to cover operating losses has increased by more than 70 % compared with 1986. Developments over the last few years should therefore be judged in accordance with the objectives of Decision No 2064/86/ECSC, particularly those mentioned in Article 2 (1) thereof. In this connection, it is clear that the procedures for gran- ting the undertakings concerned aid to cover operating losses do not encourage the coal industry to become competitive again by means of restructuring, moderniza- tion and rationalization measures. The fact that the amount of aid is related to the quantity of coal produced encourages the maintenance of produc- tion capacity which in the long term has no prospect of becoming profitable. Moreover, this policy is not designed primarily to help solve the social and regional problems related to develop- ments in the Spanish coal industry in accordance with the criteria and objectives in Decision No 2064/86/ECSC. () OJ No L 38, 10. 2. 1989, p. 39. () OJ No L 274, 6. 10. 1988, p. 41. () OF No L 241, 25. 8. 1987, p. 16.