Press Release: State aid: Commission authorises under conditions restructuring aid to Polish car manufacturer FSO

Following an in-depth investigation, the European Commission has concluded that restructuring aid to Fabryka Samochodow Osobowych ("FSO"), Poland, is compatible with EC Treaty state aid rules provided that certain conditions are respected. The Commission found that the aid is limited to the minimum necessary and that the restructuring plan of FSO is sufficient to restore the firm's long term viability. However, the Commission also considers that, without appropriate safeguards, the aid could lead to undue distortion of competition. The car manufacturing sector has excess capacity and the aid risks shifting the difficulties and the burden of adjustment to other firms and workers in other Member States. In this context, FSO must limit its annual car production to 150,000 units until February 2011.