Antitrust Law Daily Wrap Up, ANTITRUST NEWS: European Commission approves funding for closure of coal mine in the Czech Republic, (Feb 12, 2015)

By Dan Selcke, J.D.

The European Commission has approved a plan to use public funding to aid in the closure of an uncompetitive coal mine in the Czech Republic.

The mine in question, the Paskov mine, is operated by Czech mining company OKD. Despite several attempts to return it to economic viability, OKD decided to shut the mine down, and Czech authorities notified the Commission of their plans to support the company through the closure.

EU member states can spend money to facilitate the closure of uncompetitive coal mines and to cover any exceptional costs that may follow. The plan to fund the closure of the Paskov mine was in line with this decision and other EU state aid rules. Under the plan, money will go toward funding one-off severance payments to workers who have lost or will lose their jobs due to the closure. It will also provide special bonuses to miners exposed to occupational health risks while on the job.

The European Commissioner in charge of competition policy, Margrethe Vestager, made a statement on the plan’s approval. "Uncompetitive coal mines cannot be kept in the market indefinitely on state support - but the Commission and Member States can find solutions to help coal miners through this difficult transition. I am glad that today's decision will allow the Czech authorities to support the workers that will lose their jobs due to the unavoidable closure of the Paskov coal mine."

News: Antitrust