EU delays decision on Polish shipyard restructuring

The European Commission said there will be no decision before the summer vacation on whether Poland will face penalties over shipyard restructuring. “We are in regular contact with the Polish authorities and they give every impression of taking the matter very seriously,” said EU competition spokesman Jonathan Todd. “There will not be a decision before the summer break. We are now in the process of reflecting on the current state of play and have not yet reached any conclusions,” he added.

The commission expects Polish authorities to clarify their restructuring plans for the struggling Baltic coast shipyards of Gdansk, Gdynia and Szczecin, which are the country’s biggest and which employ around 16,000 people.

In June 2005, the commission opened a formal inquiry into the state aid and said at the time that it would only be legal if it was accompanied by ‘meaningful restructuring plans’ for the three yards, which the government has been seeking to privatise. If the commission decides that Warsaw’s support has contravened EU rules, Poland could face penalties equivalent to the subsidies paid.