WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.19 
23 November 2007 
 (07-5177) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Poland .   
 
_______________ 
 
 G/SCM/N/155/EEC/Add.19 
Page 2  
 
  POLAND 
 
TABLE OF CONTENTS 
 
 
Page  
 
I. LOAN FROM EFSAL FUNDS................................................................................................3  
II. GUARANTEES AND W ARRANTIES OF THE STATE TREASURY..............................4  
III. CREDIT GUARANTEES FROM THE NATIONAL FUND OF THE CREDIT 
GUARANTEES ESTABLISHED IN THE BANK GOSPODARSTWA KRAJOWEGO (BGK) .............................................................................................................7
 
IV. INCOME TAX ALLOWANCES FOR JO INT VENTURE ENTERPRISES.....................9  
V. SECTORIAL OPERATIONAL PROGRAMME:  FISHERY AND FISH 
PROCESSING 2004-2006 ......................................................................................................10  
VI. THE PROGRAM OF DEVELOPMENT OF  THE FISHERIES SECTOR IN 
POLAND......................................................................................................................... .........12  
VII. MULTIANNUAL PROGRAMMES FOR DIRECT INVESTMENT 
FINANCIAL SUPPORT ........................................................................................................13  
VIII.  SPECIAL ECONOMIC ZONES...........................................................................................15  
IX. RESTRUCTURING PROGRAMME FOR THE SECTOR OF THE HARD COAL........................................................................................................................... ............18
 
 
  G/SCM/N/155/EEC/Add.19 
 Page 3 
 
 
  I. LOAN FROM EFSAL FUNDS 
1. Description of the programme  
 
Support of enterprise restructuring and provision of "hedging" in case of the liquidation, when 
it is impossible to obtain resources for these purposes from other sources.  The entities eligible for the 
assistance, which can be granted only once, are stat e owned enterprises and companies whose stock is 
owned by the State Treasury.    
The agreement between the International Ba nk for Reconstruction and Development (IBRD) 
and the government of Poland (GoP) assumed extend ing of adaptation loans for the enterprises and 
financial sector in three tranches:   
  1
st Tranche – USD 125 million (PLN 282 356 805) – granted in 1994.   
  2
nd Tranche – USD 100 million (PLN 261 920 000) – granted in April 1995.   
 
 3rd Tranche – USD 125 million - the Polish  side has resigned from applying.   
 
The total amounts is:  USD 225 million (PLN 544 276 805).   
 2. Duration of the programme and period covered by the notification 
 
 
The programme is ceased to exist at the moment of exaustion of the loan.  The programme 
expired in 1 December 2005.  Following  notification covers 2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy  
 
 Support of enterprise restructuring and provision of "hedging" in case of the liquidation.    4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The Minister of Finance empowered by the C ouncil of Ministers and Industrial Development 
Agency (IDA).   
 
The Ministry of Treasury and voivodes (governors) were legal authorities directly responsible 
for lending assistance.  The Industrial Developmen t Agency (IDA) transferre d loans to enterprises, 
after signing appropriate contracts established on the b asis approved by the Ministry of Finance or the 
Council of Ministers.   
 
The EFSAL fund (Enterprise and Financial Sector  Adjustment Loan) was implemented on the 
basis of the Council's of Ministers Regulation of  23 November 1993 concerning the guidelines for the 
state budget implementation regard ing the expenditures for support enterprise restructuring and 
"hedging" in case of the liquidation (Journal of La ws No 119, item 531, of 1995 as last amended).   
 
From 1 January 1999, legal basis for the su pport represents the Council's of Ministers 
act No 29/99 of 13 April 1999 on granting the state financial assistance from 3599/POL loan, granted to the Republic of Poland by the International Bank for Reconstruction and Development due to the 
credit agreement from 11 October 1993.   
 
Due to the accesion of Poland to the European Un ion new rules for state aid apply.  The aid 
from EFSAL funds can be granted pursuant to the provisions of the Regulation of 30 April 2004 on 
state aid (Journal of Laws No 123, item 1291).   G/SCM/N/155/EEC/Add.19 
Page 4  
 
  The state aid granted on the basis of  announcement of the Council of Ministers No 29/99 can 
be de minimis  assistance or individual aid on restructuring (the assistance going beyond de minimis  
has to be approved by European Commission).   
 
5. Form of the subsidy 
 
 
- grant - exclusively for the "hedging" purposes.   
- grant for allowances for personnel di smissed due to group reductions.   
- loan - for restructuring investments.   
 
6. Amount of subsidy granted  
 
Total amount granted in 2005:  PLN 16 198 343 included grants PLN 192 654 and loans:  
PLN 16 005 689   
In 2006, total amount granted:  PLN 7 218 000 (comprising loans only, no grants has been 
transferred)  7. Beneficiaries
 
 
In 2005 and 2006, no contracts on loans have been signed.  However, due to contracts signed 
in 2004 the funds has been transfe rred to the enterprises as follows.   
in per cent 
Year Total assistance 
granted in  
2005-2006 Loans Grants Global 
assistance 
structure 
Loans/Grants
2005 16 198 343 16 005 689 192 654 98% / 2% 
2006 7 218 000 7 218 000 0 100% LP 
Total 2005-2006 23 416 343 22 423 689 192 654 96% / 4% 
 
8. Trade effects of the subsidy  
 
The programme does not directly impact the foreign trade.   
  
II. GUARANTEES AND WARRANTIES OF THE STATE TREASURY 
1. Description of the programme
 
 
According to the provisions of the Law dated 8 May 1997 on guarantees and warranties 
granted by the State Treasury and by certain legal persons (Journal of  Laws of 2003 No 174, 
item 1689 as last amended) the Minister of Financ e or the Council of the Ministers may grant on 
behalf of the State Treasury the gua rantee and warranty if it covers:   
 A) The repayment of investment loans or resources from the issue of bonds for the financing of 
the following investments goals:   
 
- maintenance or development of the infrastructure, 
  G/SCM/N/155/EEC/Add.19 
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  - environmental protection, 
- creating new jobs connected with the rele vant investment with in the framework of 
regional aid, 
 
- introduction of new technical or t echnological solutions from research and 
development activities, 
 
- restructuring of enterprises. 
 B) The repayment of investment loans or resources from the issue of bonds for the financing of 
the following:   
 
- the purchase of materials or finished pr oducts destined for the realization of the 
undertakings being the production of investment goods, 
 
- the reinforcement of the funds establis hed pursuant to other acts in the Bank 
Gospodarstwa Krajowego (BGK) if funds fo r repayment of loans come from other 
sources than state budget except for budget f unds which were expended to support a 
loan at the preferential rate, 
 - creation of the credit lines by the banks in order to: 
 
• finance investment undertakings of local government units and small and 
medium- sized entrepreneurs, 
 
• co-finance of programmes or projects within the framework of EU aid 
programmes, 
 
- repayment of the loan covered already by  the State Treasury guarantee or warranty 
including interests and other costs directly relating to this loan.   
 
The above mentioned guarantees and warranties of  the State Treasury are granted pursuant to 
the following rules:   
 
- entities may apply for the guarantee or warra nty regardless of their legal form and 
structure of ownership, 
 
- requested amount of guarantee or warranty must exceed EUR 5 million, 
 - decision on granting or refusal of a guarantee or warranty is taken on the basis of the 
financial analysis of undertaking as well as analysis of the economic and financial 
situation of entity requesting to be granted a guarantee or warranty,  
 
- the aim of this analysis is to verify the capacity of the entity to repay the loan secured 
with the guarantee or warranty, 
 - guarantee or warranty may be granted if the analysis of the request confirms that the 
entity is capable to fulfill obligations covered by the guarantee or warranty, 
 
- warranty is granted for a fixed period of time and up to the amount determined 
beforehand, 
 G/SCM/N/155/EEC/Add.19 
Page 6  
 
  - the Council of Ministers on request of the minister responsible for public finance may 
depart from this requirement when guarantee or warranty is granted for an international financial institution of whic h Poland is a member or has signed an 
agreement on cooperation, 
 
- the effectiveness of a granted guarantee or  warranty is subject to payment of a 
commission fee depending on amount covered by warranty, 
 - the condition of granted guarantee or warranty is securing claims of the State 
Treasury that might arise out of and in connection with the liabilities of the guarantor.   
 
With regard to risk of the parties the following rule applies:   
 
- guarantee or warranty may be granted to the 60 per cent of the amount of the loan 
remaining to repay (including interest and othe r costs directly relating to this loan) or 
60 per cent of obligation incurred and resulting from the issue of bonds, 
 
- exceptionally, in case of undertaking of special significance for the national economy 
the Council of Ministers may grant a guar antee or warranty exceeding 60 per cent. 
 
2. Duration of the programme and period covered by the notification
 
 
The duration of the programme is not limite d.  The value of granted guarantees and 
warranties is set in the state budget every year.  Present notification covers period 2005 - 2006.   
 3. Policy objective and /or purpose of the subsidy
 
 
Support for economic undertakings due to a loan facilitation scheme.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The Minister of Finance and the Council of Mi nisters are the authoriti es responsible for the 
programme implementation.   
 
The subsidy is granted under the Law dated 8 May 1997 on guarantees and warranties granted 
by the State Treasury and by certain legal pers ons (Journal of Laws of  2003, No 174, item 1689, 
of 2004 No 123, item 1291, No 145, item 1537 and No 281, item 2785 and of 2005 No 78, item 684).   
 
5. Form of the subsidy  
 
- guarantees and warranties to the creditors to  repay the loans completely or partially 
with interests and costs directly related to the loan, 
 
- guarantees and warranties for the fulfilment of the bond issuer's provision of 
monetary consideration with respect to issued bonds, 
 
- guarantees and warranties for the performance of obligations arising from a 
transaction securing against the interest rate change risk or against the currency risk 
associated with the loan or the issue of bonds covered by a State Treasury warranty, 
 
- guarantees and warranties to the foreign ba nks or foreign financ ial institutions to 
repay loans if these institutions gran ted warranty to the borrower.   
  G/SCM/N/155/EEC/Add.19 
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  6. Amount of subsidy granted  
 
In 2005, five bails for foreign entities were  granted at value of PLN 6 758 000.   
 
In 2006, three guarantees for foreign entities were granted at value of PLN 1 907 000.  
Additionally one guarantee for national entities wa s granted at value of PLN 97 million and one 
guarantee for performance of obligations arising from bonds was granted at value of PLN 1 031 000.  
Total amount granted in 2006 was PLN 3 035 000.    
Total expenses in 2005 resulting from guarantees gr anted by the State Treasury under the 
provisions of the Law of 8 May 1997 e qualled PLN 279 300 000 including PLN 258 800 000 
resulting from the principal employed payments  and PLN 22 500 000 covering interests and other 
related costs.    
Total expenses in 2006 resulting from guarantees gr anted by the State Treasury under the 
provisions of the Law of 8 May 1997 equalled PLN 110 300 000 including PLN 73 million resulting 
from the principal employed payments and PLN 37 300 000 covering interests and other related costs.   
 7. Beneficiaries
 
  Guarantees and warranties granted by the Stat e Treasury covered the bank loans financing the 
following undertakings (within the total amount of guarantees and warranties granted by the 
Treasury):   
 
In 2005:   
Projects concerning regional development 2,6% 
Projects concerning transport sector 97,4% 
 
In 2006: 
Projects concerning regional development 6,05% 
Projects concerning shipbuilding sector 3,19% Projects concerning transport sector 90,76% 
 
8. Trade effects of the subsidy
 
 
The programme does not directly impact the foreign trade.   
 
 
III. CREDIT GUARANTEES FROM THE NATIONAL FUND OF THE 
CREDIT GUARANTEES ESTABLISHED IN THE BANK GOSPODARSTWA KRAJOWEGO (BGK) 
1. Description of the programme
 
 
The terms and procedure of granting credit guarantees from the National Fund of Credit 
Guarantees (the Fund) are stipulated by the agre ement between the State Treasury represented by the 
Minister of Finance and the Bank Gospodarstwa Krajowego (BGK) concluded on 12 September 2005 
as last amended.  The contract was signed on th e basis of the Law dated 8 May 1997 on guarantees 
and warranties granted by the State Treasury and by certain legal persons.   
 
The BGK grants guarantees and warranties in coope ration with 25 banks – signatories of the 
cooperation agreement – which have at disposal ov er four thousands of representative offices.  It 
assures nationwide availability of guarantees gr anted from the resources of the Fund.   G/SCM/N/155/EEC/Add.19 
Page 8  
 
  The guarantee or warranty is being granted after securing claims of the BGK by the loan-taker 
in a form of blank bill of exchange or additionally in another form indicated by the BGK.    
A granted warranty is the subject to a payment of a commission charged from 1 per cent 
to 2 per cent depending on period covered by th e warranty.  Guarantees granted are commissioned 
twice as much as warranties.   
 
Guarantees and warranties may be granted bot h in regular and extended procedure.  
Guarantee or warranty may be granted in the regula r procedure after standard legal analysis of a 
petition and after verification of the economic and fina ncial analysis provided by the bank - creditor.   
 
Guarantee or warranty may be granted in the ex tended procedure after the complete legal, 
economic and financial analysis of a petition provided by the BGK.    
Guarantee or warranty may cover up to 80 per cen t of the credit (not including interests).   
 
The BGK may also grant to banks guarantee fo r the credit portfolios from which the credits 
are to be given to micro, small and medium si zed enterprises.  The amount of a single guarantee 
within one portfolio may not exceed EUR 100 000 and then may not constitute more than 80 per cent 
of a credit.    
The BGK may also take up or acquire shares in  local and regional guarantee funds which act 
towards business development, granting guarantees fo r liabilities or micro, small and medium sized 
enterprises resulting from repayment of loans and credits.    2. Duration of the programme and period covered by the notification
 
 
The Law does not define the duration of the programme.  Present notification covers 
period 2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
Support of micro, small and medium sized enterprises.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The authority responsible for the programme is th e Minister of Finance.  The legal basis of 
the programme is the Law dated 8 May 1997 on guarantees and warranties granted by the State 
Treasury and by certain legal persons (Journal of  Laws of 2003, No 174, item 1689, of 2004 No 123, 
item 1291, No 145, item 1537 and No 281, item 2785 and of 2005 No 78, item 684).    5. Form of the subsidy
 
 
- guarantees and warranties of loan repa yment and guarantees and warranties of 
execution of liabilities resulting from the issue of bonds, 
 
- guarantees for obligations incurred and resulting from supporting of small and 
medium enterprises' activity by the guarant ees of loan repayment granted with the 
participation of public resources or credits, 
 
- taking up or acquisition shares or stocks  of local and regional guarantee funds.   
  G/SCM/N/155/EEC/Add.19 
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  6. Amount of subsidy granted  
 
In 2005 - 2006, the BGK bailed repayment of business credits amounted at PLN 512 million 
from resources of the Fund.    
Up to 31 December 2006 there were shares and stocks in 9 local and 11 regional guarantee 
funds taken up with the resources of the F und.  The total amount PLN 39 700 000.   
 7. Beneficiaries
 
 
Each Polish enterprise may apply for the guarant ee from the Fund.  However, considering the 
fact that the BGK within this Fund may grant guarantees and warranties to the amount not exceeding 
5 million EUR, it is clear that the Fund is an instru ment of supporting small and medium enterprises.   
 8. Evaluation of the effect s of the subsidy on trade
 
 
The programme does not have direct impact on foreign trade or it is negligible.   
  
IV. INCOME TAX ALLOWANCES FOR JOINT VENTURE ENTERPRISES 
1. Description of the programme
 
 
Income tax allowances are established for jo int venture enterprises and granted by the 
Minister of Finance, taking individual decisions in this respect.  In case of positive decision of the 
Minister of Finance, the enterpri se has the possibility of exercising th e right to the tax allowance in 
the first year when it gains profit.   
 
2. Duration of the programme and period covered by the notification  
 
Such income tax allowances are in force since 1993 until the quota is used up.  This 
notification covers period 2005 - 2006.    
3. Policy objective and/or purpose of the subsidy
 
 
The creation of incentives for foreign investments.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The authority responsible for the programme is th e Minister of Finance.  The legal basis for 
implementation of the programme is art. 93 of the act of 19 November 1999 on business activities (Journal of Laws No 101, item 1178 as last amended).  The positive decision of the Minister of 
Finance is preceded by the opinion of the Minister  responsible for the privatization process.   
 
5. Form of the subsidy 
 
 
Income tax allowances for the jo int venture enterprises.   
 6. Amount of the subsidy granted 
 
 
In 2005, the assistance granted amounted at PLN  215 615 000.  No data available for 2006.   
 G/SCM/N/155/EEC/Add.19 
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  7. Beneficiaries 
 
 
In 2005, income tax allowances were  granted to 17 legal entities.   
 8. Trade effects of the subsidy
 
 
The programme does not directly impact the foreign trade.   
  
V. SECTORIAL OPERATIONAL PROGRAMME:  FISHERY AND FISH 
PROCESSING 2004-2006 
1. Description of the programme
 
 
The aim of the sectorial operational programme  "Fishery and Fish Processing 2004-2006" is 
to support the development of fishery sector in Po land.  Implementation of the programme, to the 
great extend, implies the realization of the Europ ean Union Common Fisheries Policy.  The financial 
support is provided by the Financial Instrument fo r Fisheries Guidance, national budget and private 
sources.  The principles of the programme are based on the co-financing or full reimbursement of the qualified expenditures.  The financial aid is provided for:  
A) Adjustment of fishing effort to resources 
 
- scrapping of fishing vessels (closed), - transfer of vessels to third countries or reassi gnment of vessels to uses other than fishing 
(closed), 
- joint enterprises (closed).   
 
B) Fleet renewal and modernization 
 
- construction of new fishing vessels (the measure was not implemented), - modernization of existing fishing vessels, - withdrawal, without public aid, related to mode rnization (the measure was not implemented).   
 
C) Protection and development of aquatic resour ces, aquaculture and fish farming, fishing 
port facilities, fish processing  and marketing, inland fishery 
 
- protection and developmen t of aquatic resources,  
- aquaculture and fish farming,  
- fishing port facilities,  
- fish processing and marketing, - inland fishery.    
D) Other measures 
 
- coastal fishery, - socio-economic measures, - measures to find and promote new market outlets for fishery products, - operations by members of the trade, 
- temporary cessation of activities and other financial compensations, 
- innovative measures and other measures.    G/SCM/N/155/EEC/Add.19 
 Page 11 
 
 
  E) Technical help 
 
- technical help 
 2. Duration of the programme and period covered by the notification
 
 
 Receiving of applications for aid from sector ial operational programme "Fishery and Fish 
Processing 2004 - 2006" started in A ugust 2004.  Beneficiaries' app lications are still collected under 
condition that after realization of the project app lication for reimbursement should be presented so as 
to allow the full settling of accounts (till the end of 2008) .  This notification cove rs period 2005-2006.   
 
3. Purpose of the subsidy  
 
Rational management of the living aquatic res ources and improvement of the effectiveness of 
the fishery sector as well as increase of compe titiveness of inland fishery and fish processing.   
 
4. Authority responsible for the subsidy and legislation under which it is granted  
 
The managing authority for the programme is  the Minister of Agriculture and Rural 
Development.  The implementing institution is th e Agency for Restructuring and Modernisation of 
Agriculture.   
 
The legal basis for the programme is  the act on the National Development Programme 
(Journal of Laws of 2004 No 116 item 1206 as last amended).   
 
The basic documents on the programme are as follows:   
 
- Minister of Agriculture and Rural Development Regulation on the sectorial 
operational programme "Fishery and Fish Processing 2004 – 2006" (Journal of Laws 
of 2004 No 197, item 2027).   
 - Minister of Agriculture and Rural Development Regulation on the complement to 
sectorial operational programme "Fishery an d Fish Processing 2004 – 2006" (Journal 
of Laws of 2004 No 207 item 2116).   
 - Minister of Agriculture and Rural Deve lopment Regulation on the conditions of 
implementation of sectorial operational pr ogramme "Fishery and Fish Processing 
2004 – 2006" (Journal of Laws of 2004 No 213 item 2163 as last amended).   
 5. Form of subsidy
 
 
Reimbursement of expenses made by investors for project implementation or compensation 
for lost income.   
 
6. Amount of subsidy granted  
 
The amount of subsidy granted from national budget:   
 
In 2005:  PLN 68 165 781 and in 2006:  PLN 40 599 899.   
 
The total amount of subsidy granted from nati onal budget in 2005-2006:  PLN 108 765 680.   G/SCM/N/155/EEC/Add.19 
Page 12  
 
  7. Beneficiaries
 
 
Legal entities, natural persons a nd organizational unit without lega l status that are engaged in 
fishery. 
 
8. Trade effects of the subsidy  
 
Balance of trade in import of raw material a nd volume of fish and fish products exported 
indicates current positive developments  and good perspectives for fish processing industry in Poland.  
Moreover, scrapping of fishing vessels resulted in dimi nishing the fisheries potential of the fleet and, 
consequently, achieving balance between the possibi lity of self-recovery of the living sea resources 
and the level of exploitation of these resources.  Support for fisheries and aquaculture enabled the 
adjustment of the equipment and organization of fi sheries to the requirements of limited resources and 
of the market.  Financial aid helped also to or ganize of the common market that would enable the 
balance of supply and demand, w ith account taken of the interests of producers and consumers. 
 
 
VI. THE PROGRAM OF DEVELOPMENT OF THE FISHERIES SECTOR IN POLAND 
1. Description of the program  
 
The program depends on direct surcharges to inter est rates of bank's credits for subjects acting 
in the fisheries sector.  Credits could be designed to:   
 
• Buying of the machines and installations ma de of stainless steel and Teflon used in 
processing of fish crustaceans and shellfishes;   
 
• Buying equipped buildings which could be u sed in fishes, crustaceans and shellfishes 
processing or buying plots under buildings;   
 
• Modernization of buildings and other structures;   
 
• Building of water treatment systems and water filtration systems;   
 
• Building of deep freezing chambers or  cooling, refrigerating and defreezing 
machines;   
 
• Buying of new smoking chambers;   
 
• Buying of factorial ice machines; 
 
• Buying of installations used to intr oducing quality control systems;   
 
• Renewal and modernization of fleet (fishing vessels and boats);   
 
• Realization of investments in inland fisheries sector.    G/SCM/N/155/EEC/Add.19 
 Page 13 
 
 
  2. Duration of the programme and period covered by the notification  
 
The program was foreseen for the years 2000 – 2006.  In the fact it was terminated by the 
30 April 2004.  In 2005 and 2006, only surcharges to the interests rates of bank's credits granted by 
the and of April 2004 were paid.   
 
3. Policy objective and/or purpose of the subsidy  
 
Development of the fisheries sector incl uding as well quality improvement of produced 
goods, sanitary and veterinary arrangements on fishing vessels, as restructuring of plants involved in 
inland fisheries branch.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The managing authority for the program is the Minister of Agriculture and Rural 
Development.  The implementing institution is th e Agency for Restructuring and Modernisation of 
Agriculture.    5. Form of the subsidy
 
 
Surcharges to the interest rates of bank's credits.   
 
6. Amount of subsidy granted  
 
In the period of 2005-2006, there was no new credits  granted.  Only surcharges to the interest 
rates of bank's credits granted before May 2004 were paid.  In 2005, payments reached 
2 343,5 thousands of PLN and in 2006 1 133,3 thousands of PLN.   
 7. Beneficiaries
 
 
The plants involved in fisheries, inland fisheries and fish processing.   
 
8. Trade effects of the subsidy.  
 
The programme does not directly impact the foreign trade.   
 
 
VII. MULTIANNUAL PROGRAMMES FOR DIRECT INVESTMENT FINANCIAL 
SUPPORT 
1. Description of the programme.  
 
The scheme provides for ad hoc  regional investment aid awarded in the form of multiannual 
programmes, adopted according to art. 80 of the Law of 26 November 1998 on public finance 
(Journal of Laws no 15/2003, item 148 as last amended;  in force till 31 December 2005), as well as to 
art. 117 of the Law of 30 June 2005 on public fi nance (Journal of Laws No 249 item 2104 as last 
amended;  in force from 1 January 2006).    
Aid granted under a multiannual programme scheme constitutes a regional state aid.  The aid 
takes the form of a direct grant and is accorded  basing on a framework agreement signed between a 
beneficiary and the Minister of Economy.  This ad hoc  state aid is subject to individual notification to 
the European Commission.    G/SCM/N/155/EEC/Add.19 
Page 14  
 
  Regional investment aid is awarded for an initial investment project.  Initial investment – 
according to the Guidelines on national regional aid, Official Journal of the European Union 
C 074, 10/03/1998 P. 0009-0018  (in force in the period covered by the notification) - means an 
investment in fixed capital relating to the setting- up of a new establishment, the extension of an 
existing establishment, or the starting-up of an activ ity involving a fundamental change in the product 
or production process of an existing establishment (through rationalization, diversification or 
modernization).   
2. Duration of the programme and th e period covered by the notification
 
 
Due to the ad hoc  nature of multiannual programmes ther e are no determined time limits for 
the scheme's implementation.  The implementation of the scheme is limited only by availability of aid 
funds.  The notified multiannual programmes, adopted  by the Council of Ministers in the calendar 
years 2005 and 2006, cover the following periods:    
2005-2006 – 1 programme 
2005-2007 – 1 programme 
2005-2008 – 1 programme 2006-2008 – 1 programme 2006-2010 – 2 programmes 2006-2011 – 8 programmes 2007-2011 – 1 programme 
 
 This notification covers the period 2005-2006.    3. Purpose of the subsidy
 
 
Supporting initial investment or creating new jobs related to initial investment with the aim to 
assist the development of the most disadvantaged regions.    
Creation of incentives for direct investment.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The authority responsible is the Minister of Economy.   
 
Legislation under which the subsidy was granted:   
 
- Act of 26 November 1998 on public finan ce (Journal of Laws no 15/2003, item 148 
as last amended;  in force till 31 December 2005),  
 
- Act of 30 June 2005 on public finan ce (Journal of Laws no 249, item 2104 as last 
amended;  in force from 1 January 2006), 
 
- Guidelines on national regional aid, Official Journal of the European Union C 074, 
10/03/1998 P. 0009-0018 .   
 5. Form of subsidy
 
 
The subsidy is granted in the form of a direct grant.    G/SCM/N/155/EEC/Add.19 
 Page 15 
 
 
  6. Amount of subsidy granted  
 
There are two criteria of granting the regional investment aid:   
 
- investment costs resulting from the initial investment project exceeding 
EUR 40 million, or 
 
- number of jobs directly created by th e investment project exceeding 250.   
 
The maximum amount of aid granted cannot exceed the maximum regional aid intensity.   
 
Support is not granted automatically to all i nvestors fulfilling the abovementioned criteria.  
All applications are subject to the decision of th e Interministerial Committee for Foreign Investment 
and, subsequently, of the Council of Ministers, which adopts multiannual programmes in the form of 
a resolution.   
 
In 2005, the total of 13 multiannual investment support programmes (rela ted to the production 
of goods) were adopted by the Council of Ministers.   The total value of the programmes amounts to 
PLN 213 200 000, of which the 2005 aid payments amounted to PLN 2 200 000, and the 2006 aid payments amounted to PLN 40 700 000.    
In 2006, the Council of Ministers adopted 2 multiannual investment support programmes 
(related to the production of goods).  The total valu e of the programmes amounts to PLN 99 million of 
which the 2006 payments amounted to PLN 17 400 000.    7. Beneficiaries
 
 
Entrepreneurs implementing initial investment projects of investment costs exceeding 
EUR 40 million or providing for creation of at least 250 new jobs.  In 2005, there were the total of 
13 beneficiaries, in 2006 – 2.  8. Trade effect of the subsidy
 
 
There are no direct trade effects of the subsidy.   
  
VIII.  SPECIAL ECONOMIC ZONES 
- Regional Aid Scheme for the enterprises conducting business activity in Special Economic 
Zones under a permit issued after 31 December 2000.   
 
- Regional Aid Scheme in form of exemption from real estate tax granted to entrepreneurs 
other than small and medium ones conducting business activity in Special Economic Zones 
under a permit issued before 1 January 2001.   
 
- Regional Aid Scheme in form of remission of the real estate tax arrears for the 
entrepreneurs other than small and medium  ones conducting business activity in Special 
Economic Zones under a permit issued before 1 January 2001.   
 
1. Description of the programme
 
 
There are fourteen Special Economic Zones (SEZ) in Poland on the area of 8164,3095 ha. 
(data for December 2006).  The aid is granted to entrepreneurs (who might conduct business activity G/SCM/N/155/EEC/Add.19 
Page 16  
 
  as legal or natural persons;  the legal persons are th e corporate income tax payers whereas the natural 
persons are the personal income tax payers) who obtain the permit to conduct business in the SEZ.   
 2. Duration of the programme and period covered by the notification
 
 
The aid scheme, submitted to Eu ropean Commission are binding for 2001 – 2006.  The aid 
scheme for the following years is drawn up altogether  with the new legal acts in accordance with the 
new rules of granting the aid.    
This notification covers subsidies granted in the year 2005.   
 
3. Policy objective and/or purpose of the subsidy
 
 
Supporting initial investment or creating new jobs related to an initial investment by 
entrepreneurs conducting econom ic activity in the special economic zones.   
 
4. Authority responsible for the subsidy and legislation under which it is granted  
 
 Authority responsible for the programme is  the Minister of Economy and Labour.   
  The subsidy was granted on the basis of the following legal acts:   
 
A) The act on Special Economic Zones of 20 October 1994 (of 2007 no 42, item 274), 
 
B) The act of 2 October 2003 on amendment of the act on Special Economic Zones and 
other acts (Journal of Laws no 188, it em 1840 and of 2004 no 123, item 1291 and 
no 273, item 2703 and of 2006 no 141, item 997), 
 
C) 14 Regulations of the Council of Ministers:  
– act of 23 November 2006 on the Kamie nna Góra special economic zone 
(Journal of Laws no 211, item 1555), 
– act of 14 September 2006 on the Cracow special economic zone (Journal of 
Laws no 220, item 2232 and of 2005 no 32, item 270, no 129, item 1079 and 
no 182, item 1529 and of 2006 no 118, item 803), 
– act of 8 November 2006 on the Katowice special economic zone  (Journal of 
Laws no 202, item 1485), 
– act of 19 December 2006 on the Kostrzy ńsko - Słubicka special economic zone 
(Journal of Laws no 236, item 1704), 
– act of 20 October 2006 on the Legnicka special economic zone  (Journal of 
Laws no 191, item 1416), 
– act of 7 November 2006 on the Łódzka special economic zone (Journal of 
Laws no 200, item 1473), 
– act of 14 September 2004 on the Mielec special economic zone (Journal of 
Laws no 218, item 2209, and of 2005 no 32, item 273 and no 129, item 1080),  G/SCM/N/155/EEC/Add.19 
 Page 17 
 
 
  – act of 12 December 2006 on the Pomorska  special economic zone (Journal of 
Laws no 228, item 1667), 
– act of 14 September 2004 on the S łupska special economic zone  (Journal of 
Laws no 218, item 2210 and of 2005 no 32, item 275, no 189, item 1593 and of 
2006 no 118, item 804), 
– act of 14 September 2004 on the "Sta rachowice" special economic zone  
(Journal of Laws no 222, item 2253, a nd of 2005 no 56, item 489, no 181 
item 1502 and of 2006 no 128, item 893), 
– act of 14 September 2004 on the Suwalska  special economic zone (Journal of 
Laws no 224, item 2271 and of 2005 no 32, item 276, no 131, item 1093 and no 214, item 1789), 
– act of 28 November 2006 on the Tarnobrzeska special economic zone (Journal 
of Laws no 215, item 1581), 
– act of 19 December 2006 on the Wa łbrzyska special economic zone  (Journal of 
Laws no 236, item 1705), 
– act of 7 September 2004 the Warmi ńsko-Mazurska special economic zone 
(Journal of Laws no 215, item 2184 and of 2005 no 8, item 59, no 33, item 292 
and no 214, item 1782).   
5. Form of the subsidy  
 
Tax exemption from the legal persons' or natu ral persons' income tax as well as the tax 
exemption from real estate tax.  6. Amount of subsidy granted
 
 
In 2005, the total aid amounted to PLN 459 milli on.  The data for the year 2006 is still not 
available due to its form (tax exemption) – it w ill be submitted in the second half of this year.   
 7. Beneficiaries
 
  The aid is granted to the following groups of the entrepreneurs:   
 
 A) Entrepreneurs who obtained th e permit before 31 December 2000:   
 
- the small and the medium ones are entitled to total tax exemption for the first ten 
years of conducting business activity in th e special economic zones and to 50 per cent 
of tax exemption for the following years – the small ones up till 31 December 2011, 
the medium ones till 31 December 2010, 
 
- the large entrepreneurs who obtained the permit before 31 December 1999 are 
entitled to tax exemption that amounts to 75 per cent of the investment costs borne till the end of 2006 whereas those who obtained the permit in year 2000 – 50 per cent of 
the said costs.  Entrepreneurs from the mo tor vehicle are entitled to tax exemption 
that amounts to 30 per cent of the investment costs.   
 G/SCM/N/155/EEC/Add.19 
Page 18  
 
  B) Entrepreneurs who obtained the permit after 1 January 2001 are entitled to tax 
exemptions that amount to: 
 
- for the large entrepreneurs – 50 per cent of  the investment costs or 2 year costs of 
creating new jobs, 
 
- for the small and medium entrepreneurs – 65 per cent of the abovementioned costs. 
 
In Cracow, Gda ńsk and Wroc ław, these indexes amount accordingly to 40 per cent and 55 per 
cent and in Pozna ń and Warsaw these indexes amount accordingly to 30 per cent and 45 per cent.   
 
8. Trade effect of the subsidy
 
 
There are no trade effects of the subsidies granted in the SEZ.   
 
 
IX. RESTRUCTURING PROGRAMME FOR THE SECTOR OF THE HARD COAL 
1. Description of the programme  
 
Restructuring of mining industry of hard coal in 2004-2006 and the strategy for 2007 - 2010. 
 
Hitherto existing effects of reforms (2005 – 2006):   
 
- Due to the concentration process carried out  in 2005 the number of effective mines 
decreased from 38 to 33, 
 
- The productive abilities were diminished by 4 100 000 tones, 
 
- The number of  employees was reduced by 7 783.   
 
In 2006, the mining industry of hard coal gained net financial surplus result amounting at 
PLN 404 600 000.  However, the result was lower by PLN 766 million in comparison to that achieved 
in 2005.   
 2. Duration of the programme and period covered by the notification
 
 
The programme has been completed in 2006.  Th is notification covers period 2005 – 2006.   
 
3. Policy objective and /or purpose of the subsidy  
 
- Adapting of economic entities in mining in dustry of hard coal to the effective 
functioning in market economies, the maintenance of competitiveness of Polish hard coal on domestic market, 
 
- Alleviating of national demand for hard coal and economically substantiated export 
till 2010 in line with requirements of envir onmental protection and industrial safety.   
 4. Authority responsible for the subsidy and legislation under which it is granted
 
 
The authority responsible for the realization of  the programme is Minister of Economy.   
  G/SCM/N/155/EEC/Add.19 
 Page 19 
 
 
  The legal basis for granting the subsidy is th e act of 28 November 2003 on restructuring of 
mining industry of hard coal in 2003 – 2006 (J ournal of Law No 210, item 2037 as last amended) 
together with executive acts binding at that time:    
- Announcement of the Minister of Economy, Labour and Social Policy of 
16 January 2004 on list of  mining communes (Polish Monitor No 5, item 97 as last 
amended);   
 - Regulation of the Minister of Economy, Labour and Social Policy of 28 January 2004 
on grants for financing of liquidation of mines (Journal of Law No 18, item 171);   
 
- Regulation of  the Minister of Economy, Labour and Social Policy of 
1l February 2004 on loans for employees of mining industry employed on the area assigned to the start up of business activities (Journal of Law No 25, item 222);   
 
- Regulation of  the Minister of Economy, Labour and Social Policy of 
1l February 2004 on restructuring of em ployment in mining enterprises, detailed 
principles of granting and payment of equiva lent in money subsequent with the legal 
title to the free of charge hard coal and the refund of the costs of carbon allowance paid in kind and leveling annuity (Journal of Law No 25, item 223);   
 
- Regulation of the Minister of Finance of 9 April 2004 on conceding of credit on 
preferential conditions for mining comm unes accounted to the financing of 
investments supporting the leaning of new work-places (Journal of Law No 84 item 778). 
 
The basis for 2004 - 2006 operations are included in the document:  "Restructuring of mining 
industry of hard coal in 2004 - 2006 and the strategy for 2007 - 2010".  The basis for notification of public assistance for the mining sector are:  "The plan  of the access to the stocks of hard coal" and 
"Plan of the closure of mines of hard coal in 2004 - 2007" that were in line with the European Commission's Regulations.    
5. Form of the subsidy
 
 
Grants, postponements and discontinuing of due tax amounts.   
 6. Amount of subsidy granted
 
 
Total subsidy granted in 2005 amounted at PLN 1 660 406.  In 2006, the subsidy amounted at 
PLN 738 761.  7. Beneficiaries
 
 
Mining enterprises.   
 8. Trade effect of the subsidy
 
 
The programme does not directly impact the foreign trade.   
 
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