Polish Shipyard Aid Under Scrutiny

Thursday, June 02, 2005
The European Commission has decided to open formal inquiries into public support for three shipyards in Gdynia, Gdañsk and Szczecin. The restructuring aid granted to these yards will be scrutinised in the light of EC Treaty rules on state aid, and in particular the rules on state aid to companies in difficulties, in so far as it has been granted after the accession of Poland to the European Union on May 1 2004. The Commission will not examine several measures granted by the Polish authorities before accession. “The type of aid proposed by the Polish authorities is only compatible with EU rules if accompanied by a detailed restructuring plan involving durable industrial restructuring and not limited to servicing debt and improving liquidity. We need to see a plan which is likely to result in viable companies capable of facing up to competitive pressures within the EU”, the Competition Commissioner Neelie Kroes commented. The formal state aid investigationconcerns financial support given by various Polish authorities both at the central and local level to the restructuring of the three largest Polish shipyards in Gdynia, Gdansk and Szczecin. Stocznia Szczecinska Nowa Sp.z o.o. (New Szczecin Shipyard) as well as Stocznia Gdynia S.A. (Gdynia Shipyard Group) (and its subsidiary Stocznia Gdañska - Grupa Stoczni Gdynia S.A. (Gdansk Shipyard) started their restructuring process already in 2002. New Szczecin Shipyard is owned by the public Agencja Rozwoju Przemys³u S.A. (Industrial Development Agency, ARP), Gdynia Shipyard Group is majority owned by the State Treasury. In all three cases, some aid was granted before accession, and some after accession. The Commission has no competence to assess the compatibility of aid granted before accession. However, the Commission is competent to act with regard to state aid granted after accession even if the state support falls in the context of restructuring launched before accession. The Commission has doubts whether the aid granted is capable of restoring the long-term viability of the yards. It also has doubts whether the companies undertook adequate capacity reductions to compensate for the distortion of competition and whether the beneficiaries’ own contributions are sufficient to demonstrate their commitment to restructuring. The Commission has therefore opened formal investigation procedures to allow Poland and third parties to submit comments in order to verify these points.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Mermaid Maritime Bags Subsea Contracts, Delays Newbuilding

Thailand’s Mermaid Maritime said it has been awarded a number of subsea contracts in the Middle East with a total worth of $11million.   It has also reached

CBP, AMO Unveils New Interceptor Vessel

U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO) and SAFE Boat International celebrated the unveiling of AMO’s newest coastal interceptor vessel (CIV) Thursday.

Seaspan Acquires Eighth 14000 TEU Vessel

Seaspan Corporation (NYSE:SSW) announced today that it accepted delivery of a 14000 TEU containership, the YM Width. The new containership, which was constructed at CSBC Corporation,

Navy

US Navy Updated Zika Virus Infection Guidance

Navy Medicine released updated Zika Virus Infection guidance in NAVADMIN 121/16, May 26, communicating current information, travel precautions, and risk reduction

1,076 Graduate from U.S. Naval Academy

The U.S. Naval Academy graduated 1,076 men and women at the annual graduation and commissioning ceremony May 27 at Navy-Marine Corps Memorial Stadium. U.S. Naval Academy Superintendent Vice Adm.

Phoenix Express 2016 Concludes

Maritime forces from North Africa, Europe, and the United States concluded exercise Phoenix Express 2016 with closing ceremonies in Souda Bay, Greece May 27. Phoenix Express,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0752 sec (13 req/sec)