2.8.2002 Official Journal of the European Communities L 205/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Commu- nity, in particular Article 87(3)(e) and Article 89 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parliament (), Having regard to the opinion of the Consultative Committee set up in accordance with the Treaty establishing the European Coal and Steel Community (%), Having regard to the opinion of the Economic and Social Committee (%), Whereas: (1) The ECSC Treaty and the rules adopted for its applica- tion, in particular Commission Decision No 3632/93/ ECSC of 28 December 1993 establishing Community rules for State aid to the coal industry (°), expire on 23 July 2002. (2)  The competitive imbalance between Community coal and imported coal has forced the coal industry to embark on substantial restructuring measures involving major cutbacks in activity over the past few decades. (3)  The Community has become increasingly dependent on external supplies of primary energy sources. As stated in the Green Paper on a European strategy for the security of energy supply adopted by the Commission on 29 November 2000, the diversification of energy sources, both by geographical area and in products, will make it possible to create the conditions for greater security of supply. Such a strategy includes the development of indi- genous sources of primary energy, more especially sources of energy used in the production of electricity. (4 In addition, the world political situation brings an entirely new dimension to the assessment of geopolitical risks and security risks in the energy sector and gives a () O] C 304 E, 30.10.2001, p. 202. (*) Opinion delivered on 30 May 2002 (not yet published in the Offi- cial Journal). () 0] C 321, 16.11.2001, p. 2. () O] C 48, 21.2.2002, p. 49. () OJ L 329, 30.12.1993, p. 12. wider meaning to the concept of security of supplies. In this connection a regular assessment must be made of the risks linked to the Union’s energy supply structure. As indicated in the Green Paper on a European strategy for the security of energy supply, it is therefore neces- sary, on the basis of the current energy situation, to take measures which will make it possible to guarantee access to coal reserves and hence a potential availability of Community coal. In this connection, the European Parliament adopted a Resolution on 16 October 2001 on the Commission Green Paper on a European strategy for the security of energy supply which acknowledges the importance of coal as an indigenous source of energy. The European Parliament said that provision should be made for finan- cial support for coal production, whilst recognising the need for more efficiency in this sector and for cutting back subsidies. Strengthening the Union’s energy security, which under- pins the general precautionary principle, therefore justi- fies the maintenance of coal-producing capability supported by State aid. However implementing this objective does not put into question the need to continue the restructuring process of the coal industry given that, in the future, the bulk of Community coal production is likely to remain uncompetitive vis-a-vis imported coal. A minimum level of coal production, together with other measures, in particular to promote renewable energy sources, will help to maintain a proportion of indigenous primary energy sources, which will significantly boost the Union’s energy security. Furthermore, a proportion of indigenous primary energy sources will also serve to promote environmental objectives within the framework of sustainable development.