Conflict between Slovakia and EU over steel production continues
In previous negotiations with the European Commission (EC),
Slovakia, which will access to the EU in 2004, agreed to limit growth rate of steel
production to 3% over the
production figure in 2001, which was 4.05 million tons. Besides, USSK was promised to benefit from tax exemptions. However, as
production in 2002 increased by 8% and is expected to rise by 13.8% in 2003, the EC requested the steel producer to reduce its
production. Furthermore, the EC offered deduction in tax exemption and financial compensation, but the offer is rejected by
Slovakia as level of compensation was found to be too tough.
Negotiations with the EC will continue during January. In case, parties fail to settle an agreement, the issue will be taken to court.
The issue arose due to the misconceiving of the EU accession agreement by Slovakian government, which thought that limitations regarding USSK's steel
production would be in effect once the country enters the EU on May 1, 2004.