EU aid coming to Polish coal industry

The European Commission announced on Friday that it would grant nearly PLN 8 billion, through 2018, to support Poland’s closing of uncompetitive coal mines, according to a press release. Out of the grant’s total sum of PLN 7.95 billion, 92 percent of the money will go to support severance pay and pensions resulting from job losses due to the closures. The remainder is expected to be used to secure mine shafts, mitigate environmental damage, assist in land restoration and facilitate the liquidation of infrastructure. Addressing concerns that the gift provides Poland with an unfair advantage over other EU countries, the Commission said, “It does not distort competition. EU state aid rules allow Member States to provide support aimed to facilitate the process of closing of uncompetitive coal mines to alleviate the social and environmental consequences.” The coal industry continues to be a major source of energy for Poland, with black and brown coal providing 83 percent of the country’s electrical energy needs, according to the website Mining.com. However, in recent years the industry has suffered from very low productivity in comparison with other countries, aging infrastructure, and job losses, the website said.