’ 31,12, 94 No L 379/3 Official Journal of the European Communities COMMISSION COMMISSION DECISION of 3 November 1994 authorizing the granting of aid by Portugal to the coal industry in 1994 {Only the Portuguese text is authentic) (Text with EEA relevance) (94/994/ECSC) 'THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, . Having regard to Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community rules for State aid to the coal industry (1), and in particular Articles 2,(1) and 9 thereof, Whereas: By letter of 5 August 1994 Portugal submitted to the Commission, in accordance with Article 8 (1) of Decision No 3632/93/ECSC, an activity-reduction plan for the Portuguese coal industry. - By the same letter Portugal informed the Commission, in accordance with Article 9 (1) of Decision No 3632/93/ECSC, of the financial measures it intended to take to support the coal industry in 1994, : Pursuant to Decision No 3632/93/ECSC the Commission is to: S — deliver an opinion as .to whether the activity-reduction plan is in conformity with the general and specific objectives of the Decision, (!) OJ No L 329, 30. 12. 1993, p. 12. — give its decision on the following financial measures: — aid to the Carbonifera do Douro company totalling Esc 358 651000 for 1994 to cover operating losses, — aid to the Carbonifera do Douro company of up to Esc 700 000 000 for 1994, to cover exceptional social-welfare expenditure to compensate workers who lose their jobs as a result of measures taken to restructure the Portuguese coal industry. The support measures for the coal industry proposed by Portugal meet the requirements of Article 1 (1) of Decision No 3632/93/ECSC. The Commission must therefore give a decision on those measures pursuant to Article 9 (4) of the Decision as regards their conformity with the aims and criteria set out in the Decision and their compatibility with the proper functioning of the common market. I The activity-reduction plan notified by Portugal must be examined in the light of the general objectives set out in Article 2 (1) of Decision No 3632/93/ECSC and the specific criteria and objectives set out in. Article 4 thereof. Coal production in Portugal is concentrated almost exclusively in the hands of the Carbonifera do Douro company, which is responsible for operations in the Pejao and San Pedro da Cova coalfields. Since the late 1980s, the company has suffered operating losses which have been covered by State aid. The losses are due mainly to