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5 Eur. St. Aid L.Q. 669 (2006)
Monitoring State Aid in Poland

handle is hein.journals/estal5 and id is 685 raw text is: MONITORING STATE AID IN POLAND - EStAL 412OO6  669

Monitoring State Aid in Poland
Aleksandra Paczkowska 7bmtaszewska, Krzysztof Jaros and Krzysztof Winiarski

I. Introduction
Poland, the largest of the ten New Member States
which joined the EU on i May 2004, still has to cope
with various State aid problems in the overall process
of transforming the country into a modern European
economy with a globally competitive industry. This
task is obviously not limited to the lengthy process of
restructuring and privatising formerly state owned
undertakings such as shipyards, steel plants and car
producers, though these cases have thus far definitely
received most attention at Community level. Beyond
this, whilst competing         not only     with   other   EU
Member States, Poland faces the challenge of becom
ing more attractive for modern investments; in this
context, the granting of State aid has always been a
powerful tool.
A large number of measures implemented at dif
ferent levels, ranging from the necessary building and
modernisation of public infrastructure to direct subsi
dies to undertakings, continue to give rise to concerns
about State aid. In the past years, this has allowed the
Polish State aid monitoring authority to gain signifi-
cant experience when assessing numerous contested
cases, and this fresh experience might now be of value
for the enforcement of the State Aid Action Plan.
Furthermore, taxation issues continue to be a highly
problematic topic in State aid terms, and they need to
be looked at, particularly regarding the decisions of
the fiscal authorities and relevant case law            of the
courts. The latter is particularly interesting, as it is the
only field in which the Polish administrative courts
have slowly begun to consider EC State aid rules.
Taking all this into account, the aim of this article is to
 Aleksande Paczkcowsk-Tmaszewska is Deputy Director of the Department of
State Aid vonii at the Office of Competition and Con smer Protection
(OCCP), Warsaw Krzvsztof jaros is Resident Twinning Adviser (RTA) at the
OCCP, Warsaw, Dr. Krzyszof Winiarski i a Judge at the Voivods-ip
Administrative Court, Gliwice. All views expressed, as we!! as any errors and
oTissions, are strictly those of the authoIs.
1 A first overview of the iole of the national authorities of the new Member
States, including Po and, was given in this journal two yeals ago, see Jagod c-
LeKoevi/Pe-ka/Vdsu, EStAL 2004, page 375.
2 Europe Agreement Establhing an Association between the European
Communities and their Member States on the one par and the Republic of
Poland on the other part, signed in Brussels on 16.12.1991, O 1993 L 348/I.
3 Law o' 30.6.2000 on the conditions for admissibility and supervision of State
aid for entrepreneurs, Official Journal of Poland No. 60, item 704, as later
amended. he Law of 2000 was subsecuently ieplaced by the Law of
277.2002 on the conditions for admis biity and supervision of State aid for
entrepreneurs, Official journal of Poland No. 141, item 11/7, as later amended.

give an overview of the adopted model of State aid
control in Poland after accession. The tasks and prac
tices of the national monitoring authority are consid
ered and subsequently some of the currently most
contested State aid issues in the field of taxation are
II. State aid monitoring in Poland
An overview of the Polish legislation on State aid and
the role of the national State aid monitoring authori-
tyl would obviously not be complete, nor would the
newly introduced amendments be fully understand
able to the reader still unfamiliar with the particulari
ties of the Polish State aid control system, without first
making brief review of the beginnings of State aid
control in Poland.
i. The situation before accession
It is worth recalling that, until the beginning of the
199os, public assistance to the then state-owned
undertakings never gave rise to any concerns in terms
of having a distortive effect on competition, because at
that time the latter simply did not exist. Accordingly
'State aid' as a legal term was unknown in Poland until
the conclusion of the European Agreement in 1991,
which required the implementation of the acquis com-
munautaire in the State aid field. The necessary imple-
mentation of the EC State aid rules very soon proved
to be quite a difficult task. As in all candidate coun
tries from Central and Eastern Europe with former
centrally planned economies, a common method of
solving problems was to uphold a strong tradition of
State intervention and provision of support from pub-
lic funds. In Poland, the situation was made even more
complicated by the rather slow process of economic
transformation which had still not been accomplished
by the end of the 199os. Therefore in 2000, on the
basis of the law on the conditions for admissibility
and supervision of State aid for entrepreneurs, the
President of the Office of Competition and Consumer
Protection (from now on referred to as the OCCP) was
appointed as the State aid monitoring authority and
was assigned the task of implementing the EC rules on
State aid in Polish law. This appointment was, of
course, based on the President's existing functions in


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