Press Release: State aid: Commission opens in-depth inquiry into proposed €37.5 million restructuring aid to PZL Hydral in Poland

The European Commission launched an in-depth investigation to establish whether €37.5 million aid (PLN 130.5 million), which Poland intends to grant for the restructuring of PZL Hydral, is in line with the EU Guidelines on state aid for rescuing and restructuring firms in difficulty. The Commission had doubts whether the company is eligible for new restructuring aid, as it seems that it has already received state support in the past. The Commission also needed to verify that the notified restructuring plan is sufficient to restore the company's long term viability and whether the envisaged aid is limited to the minimum necessary to enable the restructuring to be undertaken. The Commission had to also verify if the compensatory measures proposed are sufficient and ensure that the aid would not create an undue distortion of competition within the EU. The opening of an in-depth investigation allowed interested parties to comment on the proposed measures. It will not prejudge the outcome of the procedure.