ANNOUNCEMENT 18 May 2009In May 2009, the government of Poland announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
the letter from the European Commission to Poland - Brussels, 21.12.2009 C (2009)10490 final - http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N302_2009
the letter from the European Commission to Poland - Brussels, 05.07.2010C(2010) 4619 final. Available from : < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N262_2010 >
the letter from the European Commission to Poland - Brussels, 16.12.2010 C(2010) 9315 final. Available from: < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N534_2010 >
the letter from the European Commission to Poland - Brussels, 28.6.2011 C(2011) 4647 final. Available from : < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_33007 Y >
Fourth, Fifth and Sixth prolongation
On 18 May 2009 Poland notified the scheme on recapitalization of certain financial institutionsaimed at banks and insurance companies in Poland.
The objective of the scheme is to strengthen financial stability of Poland by underwriting the issue of preference shares or subordinated debt by financial institutions.
The Polish authorities acknowledged that the notified scheme constitutes State aid. They stressed, however, that Poland has sought to make the measure as market-oriented as possible.
The Commission concluded that the measure contains state aid and gave the following assessment:
"The Commission agrees with the position of Poland that the scheme contains State aid measures to the eligible financial institutions pursuant to Article 107(1) TFEU. The recapitalisation will enable beneficiaries to secure the necessary capital on more favourable terms or/and in a larger amount than would otherwise be possible in the light of the prevailing conditions in the financial markets. Since this confers an economic advantage on beneficiaries and strengthens their position vis-ŕ-vis their competitors in Poland and in other Member States, these measures distort competition and affect trade between Member States. The advantage is selective since it benefits only beneficiaries under the scheme and is provided through State resources." (par. 36 of the letter from the European Commission to Poland - Brussels, 21.12.2009 C (2009)10490 final )
Article 107(3)(b) TFEU enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 107 (3)(b) by the Court of First Instance.
The Commission referred to its Communication on the financial crisis (Temporary Framework) and concluded that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 107 (1) TFEU, it is compatible with the internal market according to the Article 107 (3)(b) TFEU. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis. (par. 39-63 of the letter ).
Multiple prolongations of the Polish bank recapitalization scheme - State Aid N262/2010, N534/2010, SA.33007 and SA.34066
Since the notification of the original scheme on 18 May 2009, the scheme was prolonged sixtimes due to the persistance of the ongoing crisis, according to the Polish authorities. First, until 31 December 2010, then until 30 June 2011. It has been later on extended for the third time until 31 December 2011. On 27 February 2012, the schemehas been prolonged until the end of June 2012. On 29 June 2012, a fifth prolongation until 31 December 2012 has been authorised. On 11 February 2013, the EC confirmed the last prolongation until 30 June 2013. The EC decided not to raise objections on any of these cases.
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.