The EC has published the 12.8.2008 the COM(2008) 511 final related to the first monitoring report on steel restructuring in Bulgaria and Romania which describes the progress in restructuring made by Bulgarian and Romanian steel companies that are subject to the requirements set out in the specific chapters of the Europe Agreement and the Treaty of Accession respectively.

In general terms existing plants in Romania and Bulgaria are being modernised so as to adapt production to the quality of steel required by the EU and export markets. Changes in management structures took place in parallel with the ongoing concentration processes, especially in Romania but there are some delays, sometimes significant, in the implementation of the obligations and requirements as specified in the respective Decisions and Protocols.

Results in Bulgaria

The only company to undergo the restructuring process with the help of public funding was Kremikovtzi AD. Two other companies included in the NRP managed to successfully complete the restructuring process in 2006 without recourse to state aid.
In 2006 Bulgaria indicated that Kremikovtzi AD, although it did not need more aid than previously authorised, would not be in a position to complete its restructuring plan before 31 December 2006. It therefore submitted a modified restructuring programme and business plan to the Commission, in which it proposed the extension of their implementation until the end of 2008. The assessment prepared by the Commission indicated that the implementation of the plan would allow the company concerned to reach viability and meet the requirements of Protocols.

Results in Romania

The Accession Treaty identifies the maximum state aid allowed for each of the following six steel producing companies: Mittal Steel Galati, accounting for about 60% of crude steel production in Romania, Mittal Steel Hunedoara, Mechel Targoviste, Mechel Campia Turzi, TMK Resita and Tenaris Donasid Calarasi.
According to the information at the Commission’s disposal, Romania granted a total amount of ROL 49 985 billion (€ 1 270 million ) of restructuring aid in the period 1993-2004. These amounts of total state aid granted are in line with the ceiling specified in Annex VII of the Accession Treaty.