Press Release: European Commission authorises Czech Republic to grant EUR74 million aid to its coal industry

The European Commission on 20 October 2005 decided not to raise any objections to the €74 million aid which the Czech Republic was proposing to grant its coal industry. The aid was compatible with the proper functioning of the common market. The money was exclusively intended to cover so-called inherited liabilities, which arise in the context of the close down of coal mines. The Czech coal industry did not receive any subsidies for current coal production. The European Commission also decided that the state funding of the public body PKU (Palivovy kombinat Usti) did not constitute state aid, as PKU was not carrying out an economic activity.