German Government Leaders Agree on Proposal to End Coal Subsidiesadmin
German Chancellor Angela Merkel’s left-right coalition government agreed on a plan that would end coal subsidies in 2018, politicians from both governing parties said.
The agreement, worked out late Monday night, paves the way for conglomerate RAG AG, which owns the mines, to float on the stock market.
Members of the center-left Social Democrats agreed to the plan after the center-right Christian Democrats conceded to their demand the entire plan be reevaluated in 2012 before any subsidies are phased out. It would have to be approved by parliament at that time to go forward.
The German coal industry, which employs 34,000 in eight mines, receives some euro2.5 billion (US$3.23 billion) in annual subsidies.
More discussions on the plan are scheduled this week with industry groups.