Poland to Overhaul Shipyard Strategy After EU Subsidy Rebuff

The Polish government said it will revise plans for restructuring its shipyards, seeking to save 16,000 jobs in the home of the Solidarity movement.

Under pressure from the European Commission, Poland said it will come up with a new strategy to rescue the three Baltic coast shipyards that doesn't violate European rules on government subsidies.

The Brussels-based commission, the European Union's executive agency, estimates that the yards received 1.6 billion euros ($2.1 billion) in unlawful government aid since 2003.

``The government has promised a change in its strategy for the shipyards,'' said Treasury Ministry spokeswoman Agnieszka Dluska in a phone interview. ``The final version will be sent to Brussels today.''

The commission will take several weeks to analyze Poland's plans, spokesman Jonathan Todd told a Brussels press conference. The commission could order the repayment of the aid if it determines that Poland broke EU subsidy rules.

Poland had faced a deadline of today to defend its shipyard policy.

Source:By Katya Andrusz , bloomberg.com