Steel privatization plan gets green light from Brussels

The European Commission has finally presented its opinion on the restructuring of the steel industry. According to the Commission, the restructuring program presented by the government is capable of making the steel industry profitable by 2006. This positive appraisal allows the government to grant aid of zl 3.39 billion to the sector and the program is expected to finally be approved in March 2003. The program will bring about a cut in employment from 23,000 to 16,000 workers in the country's eight top steel mills. The mills' production capacity as a whole will increase by a third, while output will decrease by 10% as the result of a new production profile. The EU decision followed the European giant Arcelor's expression of interest in the plants. US Steel and international group LNM are also said to be preparing for the privatization. (Rzeczpospolita, p. B1) P.W.