Press Release: State aid: Commission takes note of abolition of unlimited state guarantee for Polish Post Office

The European Commission has formally taken note of the agreement by Poland to put an end by 30 June 2008 to the unlimited state guarantee currently enjoyed by the Polish Post Office (Poczta Polska). As part of its monitoring of the compatibility of existing state aid schemes with the EC Treaty's state aid rules, the Commission examined the guarantee under which the state has responsibility for liabilities entered into by Poczta Polska. The fact that the guarantee is unlimited in duration, in amount and covers all Poczta Polska liabilities, allows Poczta Polska to obtain finance on more favourable terms, giving it an advantage over its competitors and thus distorting competition in the Single Market.