Are Polish shipyards doomed? European Union Commissioner for Competition Neelie Kroes recommends that the restructuring plans of Polish shipyard submitted by Polish government are rejected...

Joanna Najfeld reports

Polish shipyards' problems at EU level started when the European Commission questioned whether the shipyards were entitled to the state aid they received. The Commission warned that if the Polish government does not submit viable restructuring plans for Polish shipyards, the Commission will demand the return of subsidies granted to the companies since Poland joined the Union in 2004.

Poland did meet the September 12th deadline, submitting the plans to the European Commission. All the way rallies have been held in Brussels, with shipyard workers asking the commission not to sentence their workplaces to bankruptcy.

However, the most recent news from Brussels is that the EU Commissioner for Competition Neelie Kroes says she will recommend rejecting the plans and thus refusing Poland a chance to save the shipyard industry.

Asger Petersen, who advises the Polish government on the issue was present when Neelie Kroes brought the bad news to the Polish Treasury Minister Aleksander Grad: 'She announced that she will propose a negative decision to her colleagues. She doesn't decide alone, she makes proposals to the commission. It's the first case when shipyards of a member of European Union have not been given a second chance.'

Polish Treasury Minister Aleksander Grad confirms that Neelie Kroes gives a negative evaluation of the plans, questioning most of all the extent of aid the government wants to grant to the shipyards. He suspects lack of good will. 'With some degree of good will, these programs could be accepted. But frankly, I haven't seen good will on the part of Commissioner Kroes today. I asked for a written analysis, explaining the charges, so we could reply to particular issues,' said Minister Grad.

Lack of good will on the part of the European Commission was also noted by the advisor for Polish government, Asger Petersen, himself a former high official of the European Commission. In his opinion, the investors' contribution in restructuring the shipyards should have been accepted: 'And that was where the disagreement was. We couldn't understand why the Commission didn't regard these elements of contribution as sufficient. It was very significant, and that was why this discussion, in my opinion, should have been exercised in a positive way but  it was exercised in a negative way.'

Poland might ask for a re-evaluation of the plans by independent experts, said Polish Treasury Minister Aleksander Grad: 'In my opinion, when different specialists' evaluation of the program vary as much as in this case, maybe some third party should look at it and judge who's right here.'

Of all three Gdynia, Gdansk and Szczecin shipyards, Gdansk is in the best situation, as it has already been privatized. It could also be saved because of its historical involvement in the fall of communism in Poland. Trade Unionists at the Szczecin shipyard are more worried. They have not expected such a turn of events.

'We are waiting for detailed explanation from Brussels. Our investors were very optimistic after the meeting at the European Commission. It is a shock for us that following those talks and the meeting of Minister Grad with Commissioner Neelie Kroes, we are receiving this kind of information,' said Zbigniew Żmijewski.

Politicians of major parties are concerned, too.

'There is a shadow of hope. But realistically, we have prepare to defend our shipyard industry following a negative decision of the Commission,' said Tadeusz Aziewicz of the ruling Civic Platform, head of the Treasury Committee.

Paweł Poncyliusz of major opposition Law and Justice says the opinion of Commissioner Kroes is unfair. 'I understand Commissioner Kroes is very busy helping private Belgian banks. Why would she care about some distant Polish shipyards with major problems?' Poncyliusz said.

It remains unknown when exactly the commission will issue the final decision on the fate of Polish shipyards. If it is negative, and the companies are ordered to return state aid, Polish shipyard face bankruptcy.

Theoretically, they could still appeal the decision at the European Court of Justice. Treasury Minister Aleksander Grad said the government would consider that option.