Subsidised coal mines to be closed in 2014

"Companies need to be viable without subsidies. This is a question of fairness vis à vis competitors that operate without state aid. This is also in the interest of taxpayers and of government finances that are considerably constrained," said EU competition commissioner Joaquin Almunia.

The member states concerned - the move predominantly affects Germany's Ruhr region, north-west Spain and Poland - will be able to monitor the implementation of the closure plans. The subsidies will decrease over time, with a reduction of at least 33 percent per fifteen-month period, the commission said.

If loss-making mines are not closed by 15 October 2014, the aid will have to be paid back.

Instead of subsidising the companies, states should focus on the social and environmental consequences of the closure and training of the mines workers for other jobs, the commission says.

Spanish commissioner Joaquin Almunia had originally proposed that the aid could continue to be paid until 2023, but in the end, the decision on the proposal was taken "unanimously," a commission spokesperson said.

The original 2023 date was opposed by Connie Hedegaard and Janez Potocnik, the commissioners for climate action and environment.

Poland accounts for more than half of the EU's hard-coal production. The other half is produced by Germany, the UK, the Czech Republic and Spain. Around 100,000 people in Europe work in the sector - 42,000 in the coal sector itself and over 55,000 in related industries.

Total aid to the hard coal sector in the EU was €2.9 billion in 2008.

The proposal will now be discussed by member states and the European Parliament.