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EU opens new Polish state aid probe

10 September 2008, 18:20 CET

(BRUSSELS) - The European Commission opened a probe on Wednesday to determine if planned public support for a Polish company making parts for airplane engines meets EU state aid rules.

The state aid probe comes amid a standoff between Brussels and Warsaw over rescue aid for three historic Polish shipyards, which the commission has deemed as failing to meet EU rules.

Opening the new investigation, the European Union's top competition watchdog said it had "doubts" that PZL Hydral was eligible for a state bailout because it had received aid in the past.

It also said that it had to check if the aid would ensure the long-term viability of the company and whether it mounted to the minimum support necessary to keep it in business.

"We have to make sure that public resources used to support restructuring will enable the company to stand on its own feet in the long-term and are not simply used to keep a company afloat artificially," EU Competition Commissioner Neelie Kroes said.

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