EC gives initial support for idea of steel holding but asks for more details

The European Commission (EC) believes the plan to merge the Katowice, Sendzi mira, Florian and Cedler steel mills to form Polskie Huty Stali (PHS) is a r ational one, but estimates the company will need between euro 500 million an d euro 1 billion in order to stay afloat on the market without state aid. In a statement the EC described the general outline of the plan as realistic, b ut said it would like to know more details. Approval from the EC for the ste el restructuring plan would mean the final obstacle had been overcome to clo sing the competition policy chapter of Poland's EU accession negotiations. T he government is also keen to get EC approval quickly for another reason; th e Katowice mill is on the brink of bankruptcy. (Rzeczpospolita, p. B2) T.J.