EC threatens Gdynia and Szczecin shipyards

The European Commission announced on Thursday that it's considering telling shipyards in Gdynia and Szczecin to return state aid funds, a decision that could ruin the companies.

In a statement, an EU executive said that the Commission's patience is being worn thin since it's hard to see progress being made with the shipyards. The EC is preparing a negative decision that would declare repayment of state aid that was given to the state-controlled shipyards, Gdynia and Szczecin.

"No decision has been made as of now, just a warning that the commission will have no choice," said Zbigniew Gniatkowski, press officer at the European Commission Representation in Warsaw, to the WBJ.

In regards to a third major shipyard located in Gdańsk, which was purchased by Ukrainian group Industrial Donbass Union, Gniatkowski said the shipyard also received a warning and has one month to respond and send an overhall programme to Brussels, which would allow the EC to confirm the state aid the shipyard has received.

However, there is a chance for the Polish government to submit restructuring plans and save the two companies. "If the Polish authorities produce new, concrete and credible solutions that could be implemented immediately and show long term viability of the two shipyards, the Commission will consider it before a decision will be made," said Gniatkowski.

This Sunday will mark the third anniversary of the EC opening an investigation into state aid being poured into the shipyards. Jonathan Todd, Commission spokesperson  said that in 2005, when the Commission launched the investigation, the state aid for all three shipyards was estimated at zł.5 billion.

He added that the Commission has long delayed its decision regarding the shipyards, giving Poland numerous chances to present restructuring plans.