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Image header Agence Europe
Europe Daily Bulletin No. 10195
Contents Publication in full By article 10 / 23
GENERAL NEWS / (eu) eu/state aid

Commission concludes investigation into State aid for Polish company PZL Hydral

Brussels, 04/08/2010 (Agence Europe) - On Wednesday 4 August, the European Commission closed its formal investigation into State aid in favour of PZL Hydral, a company specialising in hydraulic equipment for civil and military aviation. The Commission was concerned that the initial restructuring plan, which provided for State aid of 150 million zlotys (36 million euros), may have violated EU rules on State aid. Poland then made considerable changes to the plan in question, as a result of the intervention of a private investor, which will acquire the remaining economic activities (PZL Wroclaw) and - once this is done -invest an additional 65 million zlotys (or 16 million euros), to help to ensure the future industrial development of this company. Once the restructuring measures were evaluated and taking account of the changes made to the initial plan, the Commission concluded that the restructuring does not constitute Sate aid, because all funding has been granted in line with market conditions. Joaquín Almunia, the Vice-President of the Commission with responsibility for competition policy, said that “the case of PZL Hydral is an example of state aid free restructuring process. The presence of the strategic investor is a signal that PZL Wroclaw's human capital will be further developed. (O.L./trans.fl)

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