EU urges Warsaw, Prague to accelerate steel sector restructuring
When Poland and the Czech Republic joined the European Union (EU) in May 2004, steel producers in those countries were given an exemption until December 2006 to come into line with the strict European Commission (EC) rules on restructuring. The EC warned Polish and Czech steel producers not to delay their restructuring since doing so may end with some mills being unable to achieve viability. In that case, those producers would have to pay back state aids. Having noticed that some mills in these countries are still underperforming despite the favorable conditions of the steel market, the EC felt the need to warn these producers. The EC recommended that Polish and Czech steelmakers continue implementing cost-cutting measures and improve investment projects that aim to increase revenues through high value-added products.