Three important Polish state aid cases have been decided
recently by the European Commission, while UOKIK has also been
active in this area.
Extension of support schemes
The Commission has approved a 6-month extension (until 30 June
2011) for two support schemes, ruling that they were appropriate
measures for remedying a serious disturbance in the Polish
economy.
It ruled that extending Poland's recapitalisation scheme was
compatible with the requirements set out in its 2010 Communication
on support measures for banks during the financial crisis, and that
Poland's guarantee scheme was compatible with its guidance on
state aid to financial institutions during the crisis.
Aid for Wieliczka and Bochnia salt mines
The Commission also approved €240 million in public
funding granted by Poland between 2004 and 2013 for protection and
security works in the heritage salt mines of Wieliczka (registered
on UNESCO list of the World Heritage) and Bochnia, both located in
the south of Poland. It ruled that the works were technically
indispensable to preserve the salt mines, the aid was limited to
the minimum necessary to carry out these works, and that it would
not adversely affect trade between member states.
Flood assistance
The Commission has approved over €182 million financing
from the EU Solidarity Fund for assistance relating to the floods
in May and June 2010 in Poland and five other countries. Over
€105 million in aid has been authorised for Poland but
still needs to be confirmed by the European Parliament and Council
in early 2011. It is therefore likely to be paid out in March
2011.
Zakłady Chemiczne Police
UOKIK, the Polish Competition Authority, has also notified the
Commission of an aid plan for restructuring the chemical company
Zakłady Chemiczne Police. In June 2010 the Commission
approved an aid package of PLN 150 million for rescuing the
company. On the basis of the decision the company had to either pay
back within 6 months the loan given by the Industrial Development
Agency or prepare a restructuring plan guaranteeing its
profitability. The company decided to prepare a restructuring plan,
which envisages a loan from the Industrial Development Agency
amounting to PLN 150 million from the Fund for Entrepreneurs'
Restructuring, and amortisation of PLN 10 million in environmental
fees and repayment in monthly instalments until the end of 2011 of
c. PLN 17 million due to the Marshal of the Westpomeranian
Region.
2009 Report on State Aid
UOKIK's report which was published a week ago shows that state aid of over PLN 19 billion (c. €5 billion) was provided in 2009, including PLN 3 million for transport. The most common forms were tax allowances and grants, which comprised 85.4% of all aid excluding transport aid.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 23/12/2010.