EC welcomes Polish yard cuts

The European Commission has welcomed the proposal by Poland to reduce capacity in the country?s shipyards at Szczecin and Gdynia, as a necessary step forward in the restructuring process financed by state aid. But it has warned that it needs more information on Gdansk or it may require subsidies to be repaid.

Referring to the capacity cuts at Szczecin and Gdynia, an EC statement says: “This positive signal will provide clarity for potential investors in the on-going privatisation process and so enable them to come forward with restructuring plans to restore the long-term viability of the yards and secure jobs for the yard workers.” But it cautions: “As for Gdansk shipyard, Poland has so far not proposed adequate capacity reductions. The commission has therefore sent Poland an information injunction warning that unless Poland manages to provide information on adequate capacity reductions at the Gdansk yard within one month, the Commission will consider a negative decision on the state subsidies already received by the yard, which could require the aid to be reimbursed.”

The EC says its action is within the framework of the investigation opened in June 2005 into state aid worth at least euros1.3bn to Polish shipyards, which aims to ensure that the aid is used to restore the long-term viability of the yards without undue distortion of competition.