In 2007 state aid in Poland amounted to over PLN 6.5 billion, states the latest report from the Office of Competition and Consumer Protection. The greatest amounts of money were granted to enterprises as part of horizontal and regional aid.

The President of UOKiK is responsible for monitoring state aid and preparing an annual report. According to the latest report, the total value of financial support granted to enterprises in 2007 was PLN 6.54 billion - the year before it was PLN 5.87 billion. Just as in 2005 and 2006, tax concessions and state grants were the most common forms of aid (98%).

Invariably, for three consecutive years, the President of the National Disabled Persons Rehabilitation Fund (PFRON) has been the largest state aid provider, in 2007 the institution granted financial support in the value of PLN 1.64 billion. The following top aid providers were: tax and customs offices with over PLN 1 billion and the President of the Polish Agency for Enterprise Development (PARP) with over PLN 718.2 million.

As part of horizontal aid, PLN 3.17 billion was allocated - a year earlier the sum was PLN 992.6 million. The greatest amounts of money were allotted to employment (PLN 2.06 billion) and to the development of small and medium sized enterprises (PLN 654.8 million), in line with the upward tendency observed since 2005.

In the case of sectoral aid, the financial support granted was PLN 448.5 million, 90% of which constituted the support for the restructuring of the coal mining industry - PLN 399.6 million. Since 2005 the value of state aid in this sector has been decreasing, which should be seen as a positive tendency as in consequence the negative influence of the aid on competition is consistently falling. The rest of the funds was granted to Stocznia Sczecińska Nowa (Szczecin shipyard) to support contracts for building new ships.

In 2007 the total sum of regional aid was PLN 1.2 billion. Most of the funds (over 80%) was channeled for the support of new investments. The remaining amount, about PLN 201 million, was allotted to companies for creating new workplaces.

Just as in 2004 - 2006, PKP Group was the biggest beneficiary, with PLN 1.06 billion received in state aid. Within the Group, PKP Przewozy Regionalne was given the greatest financial support - PLN 961.2 million, Spółka Restrukturyzacji Kopalń was second, with PLN 198.2 million and Mahle Polska - third, with PLN 139.5 million.

In terms of regional differences, the leading beneficiaries were businesses operating in Śląskie Voivodeship (PLN 977.7 million), Mazowieckie Voivodeship (PLN 515.3 million), Wielkopolskie Voivodeship (PLN 510.5 million) and Dolnośląskie Voivodeship (PLN 506.7 million). The highest dynamics of growth in comparison with 2006 was noted in Lubuskie, Wielkopolskie and Warmińsko-Mazurskie Voivodeships.

The high share of financial support granted to big enterprises, although gradually decreasing, is still a matter of concern for UOKiK. The decrease, as compared to 2003 and 2004, is a consequence of the implementation of the recommendations set out in the Lisbon Strategy, whose aim is a gradual reduction and tighter control of state aid. Supporting entities which hold a strong position on the market constitutes a greater risk than it is the case with small and medium sized enterprises. On the other hand, growing support for private enterprises, which were provided with 87.2% of the total state aid in 2007 (an increase by 8% in comparison with the preceding year and by 18.4% in comparison with 2005), should be seen as a positive sign.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]