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Merkel Rejects EU Call to Cap Aid for Unprofitable Coal Mines
2010-07-21 11:53:43.620 GMT
By Brian Parkin
July 21 (Bloomberg) -- German Chancellor Angela Merkel
rejected a call by the European Union to speed an end to aid to
otherwise-unviable coal mines.
Merkel said today in Berlin that she aims to pay subsidies
to German mines through to 2018, four years longer than set out
in a plan by the trade bloc. The EU proposal, aired yesterday,
would limit aid to miners of hard coal from 2014, forcing aid to
be spent on social and ecological problems linked to closures
and not on keeping mines in business.
"That's quite a spontaneous change," Merkel told reporters.
"I think it wouldn't have been a mistake if they had spoken to
member states first. I'm not thrilled."
Germany brokered a national plan in 2007 to pay subsidies
to RAG Deutsche Steinkohle AG, the country's mine operator,
until 2018 and "rescinding the contracts is not on the
agenda," Merkel said.
The proposal by the European Commission would replace
rules due to expire this year. The goal is to allow nations
including Germany, Poland and Spain some leeway over operating
aid for unviable mines after the recession. Investment aid,
which is currently allowed, would be barred.
Germany is the second-biggest hard-coal producer in the EU
after Poland, according to data from industry group Euracoal.
RAG operates six mines and a coking plant in North Rhine-
Westphalia and Saarland states. The industry supports 27,000
jobs, according to RAG's website.
For Related News and Information:
Top Commodities: CTOP <GO>
Coal Markets: COAL <GO>
Top Power: PTOP <GO>
--With assistance from Ewa Krukowska in Warsaw and Patrick
Donahue in Berlin. Editors: James Hertling, Eddie Buckle
To contact the reporter on this story:
Brian Parkin in Berlin at +49-30-70010-6229 or
bparkin@bloomberg.net
To contact the editor responsible for this story:
James Hertling at +33-1-5365-5075 or jhertling@bloomberg.net
