$1bn incentives for steel and iron companies

The fiscal incentives granted by the State to the seven steel and iron plants will exceed one billion dollars throughout 2003-2010, and will come chiefly in form of budgetary debt cancellation, lower taxes and cancellation of debts to utility suppliers. Economy Ministry sources stated the aid for the steel and iron industry allocated for the time being was worth $1,068.3 million. Nearly half of these incentives will come in form of cancellation of debts to the state budget, while tax exemptions and cancelled debts to the utility suppliers will amount to 18% and 16% of the total state-granted aids respectively. The quoted sources added that more than 10,000 employees, i.e. one quarter of the total work force in the seven steel and iron plants would be laid off by 2010, with the heaviest personnel cutbacks slated for this year. Estimates show the total number of employees will go down from approximately 40,000 in 2003 to 29,000 in 2010; the decline in the number of staff will be largely due to people retiring. This year’s total number of sector employees is estimated at 37,288 compared with 39,910 in 2003. ZF