Sunday

4th Jun 2023

Poland sells shipyards after EU ruling

Poland announced Thursday that it has sold two of its historic shipyards to an offshore-registered company.

The move came after the European commission ruled that the state aid flowing for years to the three shipyards, the birthplace of the Solidarity anti-communist movement, was in breach of EU competition rules.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • The fate of Gdansk shipyard is still depending on a verdict by the EU commission (Photo: Wikipedia)

United International Trust, a company registered in the Netherlands Antilles, paid a total of €82 million for the yards at Gdynia and Szczecin on Poland's northern Baltic coast.

While the government reassured angry trade unions and the roughly 9,000 employees that UIT has pledged to continue producing ships at the yards, it could give little details about the buyer and its intentions, adding just that the company was also planning "other forms of economic activity" in parallel to shipbuilding.

The move was required by the EU commission who ruled in November that Poland had been artificially keeping the three historic shipyards at Gdansk, Gdynia and Szeczin alive by handing out illegal state aid.

The sum acquired through the sale will be used to pay off the yards' creditors and the state subsidies which were faulted by the commission.

A verdict on the restructuring plans for the third and most famous shipyard, Gdansk, is still pending in Brussels. After years of mismanagement, the Gdansk yard was sold in 2007 to ISD, a Ukrainian investor, but still received some state aid, prompting a probe by the EU commission.

Gdansk has a particular symbolism for Poles, as it was the place where the trade union Solidarity was created by Lech Walesa in 1980. The anti-Communist movement grew nationwide and triggered the first real elections behind the Iron Curtain on 4 June 1989.

A trade union representing shipyard workers still carries the name Solidarity. Prime Minister Donald Tusk recently announced he would shift the 20 anniversary of the first elections from Gdansk to Krakow, after Solidarity refused to give a pledge of non-violence.

Born in Gdansk and an activist under Communism, Mr Tusk said that Solidarity of today was a "medium sized trade union" and he would not allow the festivities to be "hijacked by any political movement."

During a party congress of the centre-right European People's Party hosted by Mr Tusk in April, Solidarity protesters threw firecrackers and burning wheels at riot police, who responded with teargas and batons, injuring some 50 people.

ECB: eurozone home prices could see 'disorderly' fall

The European Central Bank in its Financial Stability Review warned EU home prices could see a 'disorderly' fall as high mortgage rates are making houses unaffordable for households and unattractive for investors.

Adapting to Southern Europe's 'new normal' — from droughts to floods

Extreme weather events in recent months have worsened agricultural production in southern Europe, prompting concerns for authorities in Portugal, Spain, France and Italy. As countries will likely face dryer conditions, experts urge adaptation measures for the 'new normal'.

PFAS 'forever chemicals' cost society €16 trillion a year

Researchers found that global societal costs of the so-called forever chemicals or PFAS amount to €16 trillion per year. Meanwhile, the bigger producers of these chemicals are also among the ones spending the most to lobby EU policies.

EU: national energy price-spike measures should end this year

"If energy prices increase again and support cannot be fully discontinued, targeted policies to support vulnerable households and companies — rather than wide and less effective support policies — will remain crucial," the commission said in its assessment.

Double rejection for EU flagship nature restoration plan

MEPs from the agriculture and fisheries committees have voted to reject the nature restoration proposal — a key proposal that aims to halt biodiversity loss and reverse the degradation of ecosystems in the bloc.

EU: national energy price-spike measures should end this year

"If energy prices increase again and support cannot be fully discontinued, targeted policies to support vulnerable households and companies — rather than wide and less effective support policies — will remain crucial," the commission said in its assessment.

Opinion

EU export credits insure decades of fossil-fuel in Mozambique

European governments are phasing out fossil fuels at home, but continuing their financial support for fossil mega-projects abroad. This is despite the EU agreeing last year to decarbonise export credits — insurance on risky non-EU projects provided with public money.

Latest News

  1. Spanish PM to delay EU presidency speech due to snap election
  2. EU data protection chief launches Frontex investigation
  3. Madrid steps up bid to host EU anti-money laundering hub
  4. How EU leaders should deal with Chinese government repression
  5. MEPs pile on pressure for EU to delay Hungary's presidency
  6. IEA: World 'comfortably' on track for renewables target
  7. Europe's TV union wooing Lavrov for splashy interview
  8. ECB: eurozone home prices could see 'disorderly' fall

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Join EUobserver

Support quality EU news

Join us