No L 55/64 Official Journal of the European Communities 6. 3.93 COMMISSION DECISION of 23 December 1992 approving the grant of aid by Portugal to the coal industry in 1992 (Only the Portuguese text is authentic) (93/135/ECSC) THE COMMISSION OF 'I'[;lE 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 ('), Whereas : By letter of 13 October 1992 the Portuguese Government informed the Commission, in accordance with Article 9 (2) of Decision No 2064/86/ECSC, of the financial measure it intends to take to support the coal industry in 1992, Under Decision No 2064/86/ECSC, the Commission is taking action on the following financial measures : — aid to cover operating losses by the Carbonifera- do Douro company, totalling Esc 871 200 000 during 1992, — aid in building up a resetve intended to cover compensation for mining damage, for 1992, totalling Esc 50 000 000, — aid to cancel a debt of Esc 94029 000 owed to the Portuguese Department of Social Security for 1992. The support measures for the coal industry proposed by Portugal meet the requirements of Article 1 (1) of the Decision. The Commission must therefore ensure that those measures meet the aims and criteria set out in that Decision and are compatible with the proper functioning of the common market in pursuance of Article 10 thereof. II For 1992 the Carbonifera do Douro company has provided for an operating loss of Esc 871 200 000 for that () OJ No L 177, 1. 7. 1986, p. 1. part of its activities associated with the production of 200 000 tonnes of coal. " The aid intended to cover operating losses must be viewed in the light of the objectives of Decision No 2064/86/ECSC, and in particular those of Article 2 (1) thereof as part of the implementation of the business stra- tegy of the Carbonifera do Douro company notified to the Commission by the Portuguese Government in its letter of 16 April 1991. The aim of the ‘Catbonifera do Douro’ business strategy is progressively to reduce the output and workforce of the Carbonifera do Douro company between 1990 and 1994, when total closure of the undertaking is planned. The trend recorded in 1992 is consistent with the aim of the business strategy, namely a reduction of 11,5 %. This fall in output has not been sufficient to reverse the trend towards increased operating losses. The matching of that level of aid to falling coal output, its transient nature and the implementation of a clearly- defined restructuring programme facilitating the imple- mentation of regional development programmes are in line with the implementation conditions set out in Deci- sion No 2064/86/ECSC. The aid to cover operating losses facilitates the business strategy of Carbonifera do Douro, as adopted by the Portuguese Council of Ministers in its discussions on 4 October 1990. The aid proposed will cover the difference between the projected coverage costs and projected average revenue for each tonne produced. The aid will not exceed expected operating losses and hence complies with the conditions laid down in Article 3 (1) of the Decision. This aid will contribute to solving the social and regional problems related to the reduction in coal production in accordance with the third indent of Article 2 (1) of the Decision. In view of the foregoing, and the information supplied by the Portuguese authorities, the aid to be granted to the current production of the Portuguese coal industry in 1992 is compatible with the objectives of Decision No 2064/86/ECSC and with the proper functioning of the common market.