Brussels, 11/12/2008 (Agence Europe) - On Wednesday 10 December, the European Commission opened an in-depth investigation to establish whether aid of approximately €2.7 million (10.4 million zlotys), which Poland intends to grant for the restructuring of Przêdzalnia Zawiercie, is in line with the EU Guidelines on state aid for rescuing and restructuring firms in difficulty. Przêdzalnia Zawiercie produces pure cotton, viscose and technical fabrics yarn. The Commission has doubts whether the company is eligible for new restructuring aid, as it had already received state support in the past. The Commission also needs to verify whether the notified restructuring plan is sufficient to restore the company's long term viability and whether the aid is limited to the minimum necessary. It further has to determine whether the compensatory measures are adequate and ensure that the aid would not create an undue distortion of competition within the EU. Given that Przêdzalnia Zawiercie faces persistent difficulties and this is its third restructuring plan, Competition Commissioner Neelie Kroes wants to be sure that “taxpayers' money is spent on a project capable of leading to long-term viability and not merely to cover ongoing losses”. (O.L./transl.rt)