Thursday 12 February 2015

EU approves state aid for Czech coal mine closure

EU approves state aid for Czech coal mine closure

The European Commission has approved public funding to help towards closing an “uncompetitive” coal mine in the Czech Republic.

Mining company OKD decided to close the Paskov mine after "several unsuccessful attempts at returning it to economic viability", the Commission said.

Czech authorities proposed to fund one-off payments to workers who have lost or will lose their jobs due to the closure as well as provide bonuses to those who have been exposed to health risks since working in the mine.

The Commission said the plan is “in line with EU state aid rules”.

Commissioner Margrethe Vestager, in charge of competition policy added: "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."

The coal mine is located in the Moravian-Silesian region.

Written by

Bruna Pinhoni

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