Coal Production Subsidies Extended

The extension of the period in which states are allowed to grant subsidies to their coal industries until December 31st, 2018 is a great stimulus for mining in Valea Jiului, but it should be accompanied by investments aiming at an improvement in coal extraction, trade unions say.

Granting state aid for seven more years became possible after the European Parliament adopted on Tuesday the Rapkay Report regarding the extension of the deadline for subsidies to coal production in state members until December 31st,2018.

According to previous agreements, our country was supposed to put an end to subsidies for the coal industry as of January 1st 2011.

The decision of the European Parliament was received with great relief in Valea Jiului. However, the status of the National Coal Company remains unclear, since its inclusion in Hidroelectrica has not taken place so far.

Moreover, the trade unionists are concerned that several coal mines in Valea Jiului might get shut down and this would bring about social repercussions. They demand investments of at least € 60 million for increasing efficiency in production.

An inter-ministerial commission is expected this week in Petroşani to settle these issues and also, to work together with local authorities in order to find solutions for the high unemployment rate in the region and for the reinsertion of former mine workers into the labour market.

Translated by: Ruxandra Câmpeanu
MA Student, MTTLC, Bucharest University