Kroes Discusses Aid For Polish Shipyards

by Ulrika Lomas, for LawAndTax-News.com, Brussels

16 June 2008

European Commissioner for Competition Neelie Kroes met Polish Treasury Minister Aleksander Grad in Brussels on Friday to discuss state aid to the shipyards in Gdynia, Gdansk and Szczecin.

Minister Grad presented the proposed sale of the Gdynia shipyard to the company ISD Polska (which controls the Gdansk shipyard) and a joint restructuring plan for the two yards.

Moreover, the Minister indicated that he would formally submit this plan to the Commission by 26th June, and would do his utmost to present a plan for Szczecin shipyard by the same deadline.

Commissioner Kroes underlined that, under EC state aid rules, the restructuring plans must:

• Ensure the long-term profitability of the shipyards;
• Include adequate compensatory measures to limit the distortion of competition caused by the aid; and
• Be financed to a large extent from the companies' own resources.

Commissioner Kroes expressed serious doubts that the joint plan for Gdynia and Gdansk presented last week complied with these requirements.

She made it clear that unless the plans presented on 26th June comply in full with the above requirements, she would have no option but to propose to the Commission to adopt negative decisions concerning the aid granted to the yards, and to require the repayment of the state aid received.

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