State aidState aid for the improvement for the improvement
of regional competitivenessof regional competitiveness
Józef WęgrzynJózef WęgrzynDirector of Departament of Economy and InfrastructureDirector of Departament of Economy and Infrastructure
Marshal’s Office of the Malopolska RegionMarshal’s Office of the Malopolska Region
Plan of the presentation
• Some statistical data• State aid legislative framework in Poland• State aid in Poland and EU-15 in years 2000-
2003• Forms of the state aid in Poland and in the EU• Cases of the regional aid in Malopolska• Conclusions
Where we are...
London – 1650 km
Berlin – 600 km
Brussels – 1300 km
Paris – 1550 km
Madrid – 2850 km
Warsaw – 300 km
Prague – 460 km
Vienna – 460 km
Rome – 1600 km
Some statistical data...
Poland
• Population - 38.2 million
• GDP – 189 billion EUR
• Total average annual state aid (in the period 2000-2003) – 2,41 billion EUR
• State aid as percentage of GDP – 1.3%
• State aid per capita – 63 EUR (or 127 PPS)
State aid in Poland...
State aid is a form of state intervention used to promote a certain economic activity.
Existing aid and the „interim procedure”
Types of the state aid
• Horizontal objectives– R&D; environment; SME; commerce;
employment aid; training aid; heritage conservation; cultural aid; natural disasters; risk capital; regional aid
• Sectoral aid– Manufacturing– Coal– Financial services– Other
Map of the regional aid
State aid in 2003
State aid awarded:
in the EU – € 53 billion, 2003
in Poland – € 6 521.5 milion, 2003 (1 Euro = 4.39 PLN) (28 627.5 mln PLN)
in Malopolska – € 306.06 milion, 2003 (1 Euro = 4.39 PLN) (1343.6 mln PLN)
State aid awarded in the New Member States,
in 2003 (as % of GDP)
0,11 0,24 0,270,51 0,6
1,041,32
2,76 2,85
3,86
1,37
0,57
0
1
2
3
4
5
EE LV LT SK SI HU PL CZ CY MT NewMS
EU-15
Source: State Aid Scoreboard, spring 2005 update, Brussels, 20.04.2005, DG Competition, COM(2005)147 final.
Breakdown of the state aid in Poland and the EU by its assignment
State aid in years 2000-2002
Type of state aid
EU Poland
Horizontal 50% 60%
Sectoral 27% 34.3%
Regional 23% 5.7%
State aid instruments in Poland and EU-15
32%
1%
14% 14%
59%
6%
35%
3%
9%
24%
0%
20%
40%
60%
Grants Tax subsidies Capital subsidies Soft loans Equityparticipation
Poland
EU-15
Source: State Aid Policy Program for 2005-2010 years, Ministry of Economic Affairs & Labour, Warsaw 2005
Breakdown of state aid in Poland and the EU by instruments in period 2000-2002
Form of the state aid EU Poland
Grants 58,6% 35,3%
Tax subsidies 24,0% 31,5%
Equity participation 5,6% 0,7%
Soft loans 8,6% 14,4%
Guarantees 3,2% 13,5%
Existing programmes
Coal sector – 24,9 billion PLN
Metal industry – 2,8 billion PLN
Shipbuilding sector – 0,6 billion PLN
Railways – 5 billion PLN
Regional aid (SEZ) – 1,6 billion (10% of total investments)
Horizontal aid - Phare, Structural Funds – 0,8 billion PLN (for SMEs); - support for R&D sector – 0,34 billion PLN
State aid in Poland, 2000-2003
€ 0
€ 500
€ 1 000
€ 1 500
€ 2 000
€ 2 500
€ 3 000
€ 3 500
€ 4 000
€ 4 500
€ 5 000
2000 2001 2002 2003
Mil
lio
ns
Horizontal Aid
Sectoral Aid
Regional Aid
Agriculture
Other purposes
Data n/a
Source: Report about state aid awarded in Poland in 2003, Office of Competition and Consumer protection, Warsaw, September 2004.
Cases of the state in Malopolska
• The Krakow Technology Park (SEZ)
• Integrated Regional Operational Programme (ERDF)– Measures 2.5 – Promotion of Entrepreneurship – Measure 3.4 – Micro-enterprises
• Guarantee Fund and Loan Fund at the Malopolska Agency for Regional Development
Special Economic Zones(untill 2017)
The Krakow Technology Park (KPT) composed of four subzones: • Jagiellonian University 3rd Campus
(Biotechnology and Software)
•Tadeusz Kosciuszko University of Technology Campus (Industrial Engineering and IT Solutions)
• Industrial Park Sendzimir’s Steel Works (Industrial Area)
•Tarnow Plastic Valley (Chemical Industry Park)
www.sse.krakow.pl
www.europark.com.pl
The Gorlice Industrial Area is part of SEZ EuroPark Mielec The main activity in the Gorlice zone is focused on oil and energy production.
New investments in Krakow Technology Park
• Employment – 3644; New employed person – 2163
• Present investment input – 107 818,5 mln euro (432 352 000 zł.) Planned investment input – 196 926,2 mln euro (789 674 000 zł.)• Main investors: - ComArch S.A.
- RR Donnelley Polska Sp. z o.o. - Motorola Electronics Polska Sp. z o.o. - AZ Soft S.A. - Pfaffenhain PL Sp. z o.o.
Public aid in future
Policy in scope of public aid in years 2005 – 2010(Program adopted by the Council of Ministers on 29th March 2005)
Public aid in Poland shall fully comply with the standards and trens in the European Union
Two particular aims -
Public aid shall be focussed on innovative actions
Granting shall be more efficient and effective
Future priorities and measures
•Supporting actions of horizintal nature, in particular these directed to SMEs
•Supprting economic development of regions
•Phasing-out restructuring processes
Some conclusions and projections
•Necessary to co-ordinate activitities of granting bodies and establishing coherent system (more than 3500 granting bodies now!)
•Social Insurance Institution, Tax Offices shall be involved in programming, monitoring, reporting and evaluation of state aid as major granting bodies
•State aid in Poland shall be limited and targeted to innovative projects
•15,5 billion Euros - projection of state aid expenditure in Poland in years 2005 – 2010
Thank you for your attention
Marshal Office of the Malopolska RegionMarshal Office of the Malopolska RegionDepartment of Economy and InfrastructureDepartment of Economy and Infrastructure
www.malopolskie.pl