Poland grants E2bn to coal industry

Published: 5 June 2004 y., Saturday
The Polish government has announced plans to grant its coal industry 9.5 billion zlotys (two billion euros) worth of aid between 2004 and 2010 and said it would press on with a restructuring plan. Deputy Economy Minister Jacek Piechota said the aid was compatible with the rules of the European Union. Poland was the biggest new country to join the EU on May 1. He said that more than half of the aid - or 5.8 billion zlotys (1.2 billion euros) - would be granted in 2004 alone in the forms of debt cancellation and state loans. However, he told a news conference an upturn in the sector's fortunes after years of being heavily in debt would not lead Poland to abandon a restructuring plan Poland agreed in April as part of its preparations to join the European Union. The coal sector, which was a staple industry during communist times, has been forced into a heavy restructuring process to stem overproduction, and the government plans to shed thousands of mining jobs. The price of a tonne of coal, increased on average by 25% over the first four months of the year compared with the same period in 2003.
Šaltinis: bday.co.za
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