European Commissioner for Competition Neelie Kroes met Polish Treasury Minister Aleksander Grad in Brussels to discuss state aid plans for the shipyards in Gdynia, Gdansk and Szczecin. Kroes doubts the plans will comply with EC state aid rules.
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. He also indicated he would formally submit this plan to the Commission by 26 June and would do his utmost to present a plan for Szczecin shipyard within the same deadline.
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.
– Be financed to a large extent from the companies’ own resources.
Kroes Doubtful
Kroes expressed serious doubts that the joint plan for Gdynia and Gdansk presented today complies with these requirements. She made 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.
Similar Approach
The Commission has to apply the same approach to the Polish shipyards as to shipyards in other Member States. The European shipbuilding sector went through a painful process of restructuring in the 1990s. Similar strict conditions were applied, for example, in the restructuring of German shipyards accompanied by a significant reduction of shipbuilding capacity. The German yards are now economically viable.
Picture: Commissioner Kroes
Source: https://www.hme.nl/english/News/State_aid__Competition_Commissioner_Kroes_and_Polish_Treasury_Minister_Grad_discuss_Polish_shipyards/Default.aspx?rId=393[HME]
