Poland set for clash with Brussels over iconic Gdansk shipyard
Poland has refused to cut two-thirds of production capacities in the legendary Gdansk shipyard, putting it on course for a tough confrontation with Brussels.
On Tuesday (21 August), Warsaw submitted to the European Commission a plan for restructuring the Gdansk shipyard, once Europe's leading shipbuilder, that suggests closing one of the yard's three docks.
Join EUobserver today
Become an expert on Europe
Get instant access to all articles — and 20 years of archives. 14-day free trial.
Choose your plan
... or subscribe as a group
Don't miss out on
Our exclusive news stories and investigations. Influential. Investigative. Independent.
Why join?
Watch our founder Lisbeth Kirk explain the reasons in this 30-second video.
Already a member?
-
Gdansk – the cradle of the anti-communist Solidarity movement (Photo: European Commission)
Brussels had asked two docks to be shut down in return for past state aid.
EU investigations launched in June 2005 revealed that Polish shipyards had enjoyed state aid worth at least €1.3 billion since Poland joined the EU in 2004 – something illegal under EU law, unless paired with economic restructuring of the business.
"We stick to the plan of leaving two docks", the country's deputy economy minister Pawel Poncyliusz told the PAP news agency, adding "if we agreed to EU requests and left just one dock, then in the year 2010 Gdansk shipyard would be a tiny business, not a shipyard anymore".
The yard's CEO, Andrzej Jaworski, told the Financial Times that the second slipway could be shut down after the yard is privatised and the new investor builds a floating dock.
According to Mr Jaworski, privatisation could take place in about three months, as two investors – from Italy and Ukraine – have already shown interest.
However, the confrontation with Brussels over the shipyard – a workplace for some 3,000 people – comes at a highly heated political time for Poland, as the country is heading for an early parliamentary election in autumn.
In addition, Gdansk on the Baltic sea coast is a strong political icon in Poland. The Solidarity movement was founded by Lech Walesa and his colleagues at the shipyard in 1980 and it became a central force in communism's downfall in Eastern Europe.
The European Commission, for its part, said on Tuesday it is "perfectly aware of the historical importance of the yard".
"What the commission wants to see is not a closed Gdansk shipyard, but a genuine, far-reaching restructuring of a company that would ensure its long-term viability", its spokesperson added.
According to EU officials cited by the FT, capacity cuts currently required by the EU are not the end of the story for Gdansk.
"They should close capacity and then build back up. Poland wants to do it the other way round [to avoid job losses]", one official said, underlining "we have to ensure a level playing field...for the sake of competitors."
