Subsidised Coal Mining

The existing EU Coal Regulation allowing for subsidies in the coal-mining sector will expire on 31 December. The follow-up Regulation proposed by the EU Commission would provide for closure aid only until 1 October 2014. As a consequence, the German closure aid in the amount of EUR 2.35 billion, which has already been approved for the period of 2014 to 2018, would not be paid, but only those aids serving to cover extraordinary costs up to the amount of EUR 3.03 billion.

From an ordoliberal standpoint an as early as possible exit from subsidised coal mining is to be welcomed. Thus the privileging of workers and capital owners in this sector would stop. However, the Commission does not substantiate its decision to set a time limit to subsidies by 2014. On the contrary, concluding from a comprehensive impact assessment, the Commission believes that subsidies will cease not until 2020.