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Polish shipyards face bankruptcy if EU decides state aid rules were broken

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Polish shipyards face bankruptcy if EU decides state aid rules were broken

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The iconic Polish shipyards of Gdansk, Gdynia and Szczecin will find out on Wednesday if they must repay more than 1 billion euros in state aid to the country’s government.

The European Commission is to rule on whether the subsidies by successive Polish governments broke state aid rules.

If the shipyards are ordered to repay the money they will be forced into bankruptcy.

It is a sensitive issue, the shipyards were the cradle of the Solidarity movement that helped bring down the communist regime in 1989.

Analysts say bankrupting the yards will bolster Euro- sceptic parties in the newcomer Poland, laying open the pro-EU government to charges that it failed to protect the heart of the anti-communist movement.

Prime Minister Donald Tusk said Poland will be ready with a restructuring plan for the shipyards by September the 12th.