ANNOUNCEMENT 15 Mar 2016In March 2016, the government of Poland announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 15 March 2016, three Polish state-owned energy companies PGE, Energa and PGNiG agreed to provide 1.5 billion PLN (ca. 350 million EUR) to the Polish Mining Company (henceforth: PGG).
The PGG was presented by the newly elected Polish government as a to-be-formed company that would take over all mines currently listed under the loss-making Coal Company ("Kompania Weglowa"). The transfer would likely take place on 1 May 2016, given that the Coal Company is predicted to remain liquid only until the end of April 2016.
PGE, Energa and a subsidiary of PGNiG shall contribute 500, 600 and 400 million PLN, respectively. In a joint press release, the three companies agreed to provide the funds to PGG under the following conditions:
According to reports in the media, the provided capital would not suffice for a recapitalisation of PGG, as 2.2 billion PLN are needed.
The decision is part of an ongoing debate in Polish politics to save the loss-making mining sector. A similar recapitalisation effort was introduced (and later cancelled) by the previous government in September 2015 (cf. Related Measures).
The list of affected trading partners is based on 2014 trade volumes.
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.