Polish shipyards given final deadline

The European Commission has announced on Thursday the state aid granted to the Szczecin and Gdynia shipyards as illegal and must be repaid, but it also gave Poland until the end of May 2009 to sell-off the yards in a move to save jobs and production.

The EC has agreed to Poland's commitment to sell the Szczecin and Gdynia shipyard's assets "through a series of open, transparent, non-discriminatory and unconditional tenders," said Neelie Kroes, European Commissioner for competition policy in a statement. This move would allow for sustainable economic activities at the yards, whether shipbuilding will continue or another industry will be developed.

"The proceeds from the asset sales will be used to repay the yards' creditors, and [used] to repay the unlawful aid to the state," said Kroes. "Companies acquiring the assets will not be liable to repay the illegal subsidies, even if they choose to continue shipbuilding."

Treasury Minister Aleksander Grad said that he's happy with the EC's decision and ready to lead it to success. "I would like to thank everyone who has supported and worked on this decision because today thanks to this work, we don't have a negative decision, but rather a decision during which we can peacefully continue through with privatization," he told journalists.

Meanwhile, a final decision regarding the Gdańsk shipyard has not been made, due to the yards situation as it has been privatized, level of subsidies was lower and the investor has made subsequent investments. Kroes said that the Commission would study any restructuring plans, once they were submitted.

Warsaw and Brussels have been going back and forth over the €2.3 (zł.8.3) billion of state aid granted to the Gdynia and Szczecin shipyards and the privatized Gdańsk yard. (AO)