BRUSSELS, July 21: The European Commission gave Poland's Gdansk shipyard a month from Friday to either cut capacity or return subsidy money, a move which threatens to push the home of anti-Communist movement Solidarity to bankruptcy.

Under EU rules, governments can give financial help to ailing companies only if the cash is accompanied by plans that would make the firms viable in the long term. The Commission said it accepted capacity cuts at two other Polish shipyards, Gdynia and Szczecin, in return for clearing past state aid. The three yards have had a total of 1.3 billion euros ($1.8 billion) in subsidies since Poland joined the European Union in May 2004.

“Unless Poland manages to provide information on adequate capacity reductions at the Gdansk yard within one month, the Commission will consider a negative decision ... which could require the aid to be reimbursed,” the EU executive said in a statement.—Reuters