EC investigation to add to FSO's financial headaches

According to the Commission the plans of financial support are not in accordance with EU regulations concerning competition. The EC said it will examine a sum of EUR 100 million which is planned as public aid, while as until now the government has only, with problems, accepted an amount of zł.53 million. This was a plan which envisaged an increase in capital by this sum, with new shares being acquired by the Industrial Development Agency (ARP). Neither Arkadiusz Krężel, the president of the Agency, nor Dariusz Witkowski of the State Treasury who is responsible for FSO, wanted to comment on the announcement. Janusz Woźniak, the president of the manufacturer, said that, "After we find a strategic investor we plan to ask for a loan guaranteed by the State Treasury - this is the sum that will be the subject of the investigation". (Puls Biznesu, p. 7) A.K.