Public aid-help needed
The amount of government aid being pumped into Poland's national industries more than doubled last year, rising from 1.3 percent of GDP to 3.3 percent of GDP in 2003.
A document submitted to the cabinet, entitled "Report on Public Aid Donated to Enterprises in 2003," revealed that a total of zł.27 billion was handed out in state subsidies.
According to the European Commission investigation, average public aid for 2002 in the 15 old EU countries amounted to 0.56 percent of GDP. The report highlights how the general trend in those EU countries shows a continuous fall in state aid since 1999.
The lion's share of public aid, 58.9 percent of the total, went to the coal-mining sector. This zł.16 billion sum was a zł.14.2 billion increase on the year before. The aid was largely in the form of tax relief. The second biggest benefactor was the steel and iron works sector, which was given a total of zł.2.1 billion.
The Polish railway group PKP received zł.907 million, mostly in the form of Treasury guarantees. Szczecin Nowa shipyard was granted a total of zł.393.8 million, an increase of zł.198.4 million on 2002.
The Department for Protection of Competition and Consumers (UOKiK) calculated that the aid had been 70 percent effective. In 21 cases, although the subsidy had helped achieve the forecasted result, it was still considered inefficient.
The results put Poland at the opposite end of the spectrum to the general EU trend.
Proposals for state aid in 2004 have to be approved by the European Commission. So far 20 out of 60 applications have been given the go-ahead.
A document submitted to the cabinet, entitled "Report on Public Aid Donated to Enterprises in 2003," revealed that a total of zł.27 billion was handed out in state subsidies.
According to the European Commission investigation, average public aid for 2002 in the 15 old EU countries amounted to 0.56 percent of GDP. The report highlights how the general trend in those EU countries shows a continuous fall in state aid since 1999.
The lion's share of public aid, 58.9 percent of the total, went to the coal-mining sector. This zł.16 billion sum was a zł.14.2 billion increase on the year before. The aid was largely in the form of tax relief. The second biggest benefactor was the steel and iron works sector, which was given a total of zł.2.1 billion.
The Polish railway group PKP received zł.907 million, mostly in the form of Treasury guarantees. Szczecin Nowa shipyard was granted a total of zł.393.8 million, an increase of zł.198.4 million on 2002.
The Department for Protection of Competition and Consumers (UOKiK) calculated that the aid had been 70 percent effective. In 21 cases, although the subsidy had helped achieve the forecasted result, it was still considered inefficient.
The results put Poland at the opposite end of the spectrum to the general EU trend.
Proposals for state aid in 2004 have to be approved by the European Commission. So far 20 out of 60 applications have been given the go-ahead.
