IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 09 Feb 2011 | Removal date: 08 Jan 2015
Still in force

Financial grant

On 28 January 2010, the Polish authorities notified the European Commission on their intention to grant regional aid of EUR 39.34 million to the Fiat Powertrain Technologies Poland Sp. z o.o.
 
The company concerned is a subsidiary of Fiat Powertrain Technologies S.p.A., which in turn is part of the Fiat Group.
 
Poland intended to support the firm by providing direct grants between the years 2011 and 2013, as well as a tax allowance in the years 2010-2014. These funds would be used for the production of a new generation of engines (Small Gasoline Engines) in Bielsko-Biala, Poland. The production capacity of the SGEs is planned to reach 450'000 by 2013 (para.57, letter from the EC to Poland, Brussels 9.2.2011).
 
According to the EC, the regional aid from the state 'will relieve the company from costs which it normally would have had to bear itself in setting up the new production unit and therefore the company benefits from an economic advantage over its competitors' (para. 49). Furthermore, the Commission points out that 'since motor vehicles are subject to intensive trade between Member States, the support given is likely to affect trade between Member States' (para. 50).
 
However, the Commission decided to "close the formal investigation procedure '...' recording that Poland has withdrawn its notification on 16 September 2011 and will reduce the aid amount, in order to respect the limits and fulfill the coniditons of Commission Regulation No 800/2008" (Official Journal of the European Union, C12/2012, 08).
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc

Please report this page in case you detect an inaccuracy in its content.