Steel mills to cut employment, production capacities and make changes

Yesterday, the European Commission received a document from Polish authorities in which each steel mill undertook to reduce employment and production capacities as well as to invest in a change of production profile. In exchange, the European Commission will set the maximum limit of public subsidies for companies from special economic zones (SSE). The government wants public subsidies for companies which started operation in SSEs in 2000 to reach the upper limit of 75% of the value of the investment, whereas that proposed by the EU is 50%. According to the president of the Office for Competition and Consumer Protection (UOKiK), Cezary Banasinski, in 2002, 60 big companies received permission to operate in SSEs, of which 32 have already commenced activity. Economy Minister Jacek Piechota said Poland should close the competition policy chapter in October. "In my opinion all controversies concerning competition will be cleared up in October and this is really a final date," he said. (Rzeczpospolita, p. B2) A.Z.