2003/588/EC: Council Decision of 21 July 2003 on the fulfilment of the conditions laid down in Article 3 of Decision No 3/2002 of the EU-Poland Association Council of 23 October 2002 extending the period set in Article 8(4) of Protocol 2 on European Coal and Steel Community (ECSC) products to the Europe Agreement
Date: 2003-07-21
Institutions: Council of the European Union
Subjects: Poland, State aid, aid for restructuring, association agreement (EU), iron and steel industry, renewal of an agreement

7.8.2003

EN

Official Journal of the European Union

L 199/17

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 21 July 2003

on the fulfilment of the conditions laid down in Article 3 of Decision No 3/2002 of the EU-Poland
Association Council of 23 October 2002 extending the period set in Article 8(4) of Protocol 2 on
European Coal and Steel Community (ECSC) products to the Europe Agreement

(2003/588/EC)

THE COUNCIL OF THE EUROPEAN UNION,

(3)

The initial period of five years expired on 31 December
1996.

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 87(3)(e) thereof,

Having regard to EU–Poland Association Council Decision No
3/2002 extending the period set in Article 8(4) of Protocol 2
on European Coal and Steel Community (ECSC) products to the
Europe Agreement, and in particular Article 3 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

A Europe Agreement
an Association
between the European Communities and their Member
States, of the one part, and the Republic of Poland, of
the other part (1), was signed on 16 December 1991.

establishing

Article 8(4) of Protocol 2 to the above Europe Agree-
ment lays down that during the first five years after
entry into force of the Agreement, and by derogation
from paragraph 1(iii) of the same Article, Poland may
exceptionally, as regards steel products, grant public aid
for restructuring purposes, provided that this leads to
the viability of the benefiting firms under normal market
conditions at the end of the restructuring period, that
the amount and intensity of such aid are strictly limited
to what is absolutely necessary in order to restore viabi-
lity and that the aid is progressively reduced, and that
the restructuring programme is linked to a global ratio-
nalisation and reduction of overall production capacity
in Poland.

(1) OJ L 348, 31.12.1993, p. 2.

(4)

Poland requested an extension of the abovementioned
period in April 1997.

(5)

(6)

(7)

(8)

It is appropriate to grant an extension of this period for
an additional period of eight years starting on 1 January
the date of Poland's accession to the
1997 or until
European Union, whichever comes first.

To this effect, on 23 October 2002, the EU–Poland
Association Council adopted Decision No 3/2002 and it
is provisionally applied from that date.

Article 1 of EU–Poland Association Council Decision No
3/2002 granted an extension of the abovementioned
period, subject to the fulfilment of conditions laid out in
Articles 2 and 3.

Under Article 2 of EU–Poland Association Council Deci-
sion No 3/2002 the extension of the abovementioned
period is made conditional on the submission by Poland
to the Commission of a restructuring programme and
business plans for all companies included in the restruc-
turing process which meet the requirements of Article
8(4) of Protocol 2 to the Europe Agreement and have
been assessed and agreed by its national State aid moni-
for Competition and
toring authority (the Office
Consumer Protection).

L 199/18

EN

Official Journal of the European Union

7.8.2003

(9)

the Republic of Latvia,

the Republic of Hungary,

the Polish steel
Protocol 8 on the restructuring of
industry, annexed to the Treaty of Accession of the
Czech Republic, the Republic of Estonia, the Republic of
the Republic of
Cyprus,
Lithuania,
the Republic of
Malta, the Republic of Poland, the Republic of Slovenia
and the Slovak Republic provides that State aid granted
by Poland for restructuring purposes to specified parts
of the Polish steel industry shall, under certain condi-
tions, be deemed to be compatible with the common
market; the first of those conditions is that the period
provided for in Article 8(4) of Protocol 2 on ECSC
products to the Europe Agreement has been extended
until the date of accession. Paragraph 5 of the said
Protocol 8 provides that any subsequent privatisation of
any of the benefiting companies is to take place under
the same conditions. Paragraph 6 of the said Protocol 8
provides that the restructuring aid granted to the bene-
fiting companies is to be determined by the justifications
set out in the approved Polish steel restructuring plan
and individual plans as approved by the Council and is
not to exceed PLN 3 387 070 000. Paragraph 7 of the
said Protocol sets out the minimum net capacity reduc-
tions to be achieved. Paragraphs 8 and 9 of the said
Protocol provide for the implementation of business
plans by the benefiting companies.

(10)

(11)

(12)

In April 2003, Poland submitted to the Commission a
restructuring programme and business plans which have
been assessed and agreed by the Office for Competition
and Consumer Protection. Under Article 3 of EU–Poland
Association Council Decision No 3/2002, the extension
of the abovementioned period is made conditional on a
final assessment of the restructuring programme and
business plans by the Commission.

The Commission has made a final assessment of the
restructuring programme and business plans submitted
by Poland.

The assessment indicates that restructuring aid is neces-
sary to return certain companies in the Polish steel
industry to viability.

(13)

implementation of

the
The assessment confirms that
restructuring programme and business plans will lead to
the viability of
the companies under normal market
conditions by the end of the restructuring period, that
the amount and intensity of aid should be strictly limited
to what is absolutely necessary in order to reach this
objective,
restructuring aid to the Polish steel
industry should cease by the end of 2003, that the
restructuring programme should be linked to a global
rationalisation and reduction of overall production capa-
city in Poland and that the programme respects all the
commitments agreed to in the Accession negotiations.

that

(14)

therefore concludes that

The assessment
the restruc-
turing programme and business plans submitted by
Poland meet the requirements of Article 8(4) of Protocol
2 to the Europe Agreement and, at this stage, the condi-
tions laid down in Protocol 8 to the Treaty of Accession.

(15)

The conditions laid down in Articles 2 and 3 of EU–
Poland Association Council Decision No 3/2002 are
accordingly met,

HAS DECIDED AS FOLLOWS:

Sole Article

The restructuring programme and business plans submitted to
the Commission by Poland on 4 April 2003 pursuant to Article
2 of EU–Poland Association Council Decision No 3/2002, with
regard to an extension of the period laid down in Article 8(4)
of Protocol 2 to the Europe Agreement are in compliance with
the requirements of Article 8(4) of the said Protocol 2.

Done at Brussels, 21 July 2003.

For the Council

The President

F. FRATTINI