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.