Press Release: State aid: Commission opens in-depth inquiry into proposed €2.7 million restructuring aid to Przędzalnia Zawiercie

The European Commission opened an in-depth investigation under EC Treaty state aid rules to establish whether approximately €2.7 million (PLN 10.4 million) of aid, which Poland intends to grant for the restructuring of Przędzalnia Zawiercie, is in line with the EU Guidelines on state aid for rescuing and restructuring firms in difficulty. Przędzalnia Zawiercie produces pure cotton, viscose and technical fabrics yarn. The Commission has doubts whether the company is eligible for new restructuring aid, as it had already received state support in the past. The Commission also needs to verify whether the notified restructuring plan is sufficient to restore the company's long term viability and whether the aid is limited to the minimum necessary. The Commission further has to determine whether the compensatory measures are adequate and ensure that the aid would not create an undue distortion of competition within the EU. The opening of an in-depth investigation allows interested parties to comment on the proposed measures. It does not prejudge the outcome of the procedure.