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Hungary intends to grant total aid for the years 2004-2010 of HUF 64.3 billion (EUR 255 million). The yearly aid amounts are digressive, falling from HUF 12 billion (EUR 47 million) in 2004 to HUF 6.9 billion (EUR 27.4 billion) in 2010. The Commission considers that the proposed aid is compatible with the common market.
Hungary has closed down most of its coal mines since 1989. Today, there remain one big open-cast mine serving RWE's Matra power plant, one important underground mine serving the state-owned Vertes power plant, and six minor open cast mines serving local markets. Open cast production in Hungary is economically viable; the underground mine serving the Vertes power plant, however, is in need of state aid for current production.
Currently, eight of the 25 member states of the EU produce coal: Poland, Germany, Hungary, the UK, Spain, the Czech Republic, Slovakia and Greece. Only countries granting aid under Article 5 of the Coal Regulation need to notify restructuring plans to the EC - besides Poland, Germany and Hungary, Spain is the only other country granting aid under Article 5. The Coal Regulation expires at the end of 2010; the EC will present a mid-term review of the Regulation and its application by end-2006.
