KGHM to receive state aid despite bumper profits

The Economy Ministry has just signed the agreements with 9 out of 19 companies which will receive aid on the basis of the Act on Financial Support for Investments. KGHM, which posted a net profit of zł.2.4 billion last year, is to obtain almost zł.32 million in aid, one third of which will come from the state budget and the rest will be financed from EU funds. "The choice of KGHM may seem controversial but according to law each company, irrespective of its status, may apply for support," stated Elzbieta Paradowska, director of the Financial Instruments Department at the Economy Ministry. However, experts have many doubts. "It is a paradox that support is granted to companies involved in politics. This programme in fact destroys the competitiveness of Polish enterprises since the government supports several companies with the funds of others," commented Andrzej Sadowski from the Adam Smith Center. (Puls Biznesu, pp. 1, 5) E.B.