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20 September, 2010
Coal-mining unions from Germany, Hungary, Poland, and Spain agreed last week in unity to ask the European Commission to extend its deadline for the elimination of state subsidies on the production of coal. Last spring, the Commission moved to eliminate completely any Member State from granting coal subsidies to coal-fired generating plants after 31 December 2010, but that was amended slightly in July to give a very limited extension of certain subsidies until 2014.
German union IGBCE last week conducted a unity tour together with Works Council leaders of the country’s coal producer, RAG, to Hungary, Poland, and Spain. What they found was undivided consensus that the sudden curtailment of state subsidies at year end will create social conflicts, much like what is now occurring in Spain.
Hungarian Mining & Energy Union, BDSZ
The trade unions of the coal-producing countries, IGBCE, NSZZ Solidarność of Poland, the Mining and Energy Workers’ Union BDSZ of Hungary, and mining and energy unions of both Spanish federations, UGT and CC.OO, pledged to work through their respective governments to change the Commission’s current policy.
“The regulation proposal helps neither the coal-producing countries of Germany, Poland, Spain, and Hungary, nor the non coal-producing countries of the European Union,” stated IGBCE President Michael Vassiliadas, who led the travel delegation. “The subsidies do not create unfair competition in the EU. In comparison to the little that is gained in environmental protection, more (social costs) will be lost due to imported coal replaced domestic coal,” said Vassiliadas.
IGBCE President Michael Vassiliadas
Further, the unions claim that revoking the subsidies is counter-production to jobs creation coming out of the financial crisis. Coal accounts for 30% of European electricity generation, and 17% of total energy consumption in the EU.