Slovakia and EU settled on USSK problem
As reported by SteelOrbis yesterday, overproduction by
US Steel Kosice (USSK) of
Slovakia has been creating problem between European Union and the Slovak government for a long time depending on the misinterpretation of the accession treaty.
Recent news in the market reports that, EU Commission and Slovak government reached an agreement about the
production levels of USSK. Accordingly, USSK agreed to pay an additional tax of total $32 million to Slovak government, $16 million in 2004 and $16 million in 2005. Tax relief on USSK will be reduced by $70 million to $430 million as compensation for the overproduction of the company. The initial tax relief planned was $500 million by 2009. Moreover, USSK also agreed to comply with the agreed
production limits as of January 1, 2004 till the end of 2004.
With this settlement, the possibility of EU Commission's taking the issue to the European Court after
Slovakia's entry to EU in May is eliminated.