Overproduction by USSK creates dispute
On the eve of
Slovakia's accession to the European Union on May 1, 2004, the steel
production levels of
US Steel Kosice of
Slovakia is continuing to stand as a problem between
Slovakia and the EU.
The European Commission insists on warning the Slovak government regarding the overproduction by USSK. The Slovak Finance Ministry is involved in settling the overcapacity problem of USSK and defends that the claims by the European Commission do not reflect the steps taken to solve this problematic issue.
The Finance Ministry commits itself to the solution of overcapacity problem at the USSK mill prior to
Slovakia's accession to the EU in May this year. However, there is a dispute of interpretation of accession treaty between the EU and
Slovakia. The commission claims the
production levels should comply with the treaty as from the date of signature i.e., year 2002 while Slovak authorities defend they need to fit in the
production limits as of the accession date. It is commented that the commission could implement three-year sanctions to
Slovakia unless a settlement is reached soon.