The European Commission’s approval for state aid to Polish coal mines remains elusive, with positions from the Polish Ministry of Industry and the European Commission indicating no imminent resolution, according to “Rzeczpospolita.”
The newspaper reports that, based on data from the Industrial Development Agency, Polish mining has seen a reduction in debt in the first quarter of 2024 compared to the same period last year. Short- and long-term liabilities have decreased from 15.7 billion PLN to 13.6 billion PLN.
However, “Rzeczpospolita” highlights a structural problem in Polish mining: the disconnect between productivity and rising wages. In the first quarter of 2023, 11.7 million tons of commercial coal were mined with an average salary of 10,200 PLN. A year later, production dropped to 11.2 million tons, while the average salary increased to over 10,600 PLN. The output per employee fell from 160,448 kg last year to 152,011 kg this year.
Despite the lack of formal approval from Brussels, 7 billion PLN in public aid has been allocated this year to companies like PGG, Południowy Koncern Węglowy, and Węglokoks Kraj. “Rzeczpospolita” notes that this aid is flowing to Polish mines even as the official notification process has dragged on for three years.
The Ministry of Industry reassures that, despite the absence of a formal decision, the notification process has accelerated. Three high-level meetings have taken place, including with Margrethe Vestager, the European Commissioner for Competition, and Bernardus Smulders, Deputy Director-General of the EU Directorate-General for Competition.
The latest discussions focused on the technical aspects of submitting the required corrections and explanations and the final stage of the notification procedure. An agreement has also been signed between mining companies and a Brussels-based law firm specializing in state aid, which is making corrections to the application submitted by the previous government.
The European Commission confirmed it is in contact with Polish authorities regarding potential measures to support the transition away from coal but declined to comment further on the discussions or predict their outcome at this stage.