EC agrees Polish rescue plan

The European Commission has concluded, following four years of investigation, that state aid granted to Gdynia shipyard and Szczecin shipyard gives rise to disproportionate distortions of competition within the Single Market, in breach of EC Treaty state aid rules, and must be repaid.

The Commission has simultaneously agreed to accept commitments from Poland for the implementation of the decisions in a way that will quickly create opportunities for viable and sustainable economic activities at the Gdynia and Szczecin sites and so maximise the number of sustainable jobs there. In particular, the Polish authorities have committed to sell the yards’ assets through open, transparent, non-discriminatory and unconditional tenders and subsequently liquidate the Gdynia and Szczecin shipyard companies, claiming the state aid back through this process. As a result, companies acquiring the assets will not be liable to repay the illegal subsidies, even if they choose to continue shipbuilding. To help any workers that are made redundant, the Commission has offered assistance in devising flanking measures under existing EU programmes (European Social Fund or European Globalisation Adjustment Fund).

Commission President José Manuel Barroso said “We have worked long and hard to find a solution that is fair and sustainable. For the workers and businesses in Poland, but also for people working and doing business elsewhere. The solution that we have agreed with the Polish authorities offers the best possible prospects for future jobs and viable activities at these historic sites”.

Competition Commissioner Neelie Kroes commented: “I am confident that this solution will maximise opportunities for viable economic activity to continue at these historic sites, with good prospects for sustainable jobs there, while putting an end to the disproportionate distortion of competition caused by the huge subsidies received by these shipyards in recent years. This solution has been made possible by the very positive cooperation we have enjoyed with the Polish Government in recent weeks. I can well imagine that the buyers of certain assets would want to engage in shipbuilding at the sites, and that would not be a problem for the Commission because there would be no new subsidies and they would buy the assets at a market price. And if those acquiring the assets want to pursue other economic activities than shipbuilding, they must be allowed to. What matters most is the break with the past, viable economic activity at these sites and sustainable jobs.”