Last year in Poland there was a rather bizarre situation. Well, the representatives of the Zabierzów municipality, located in the Małopolskie Voivodeship, lodged a complaint with the European Commission, in which they accused the violation of the law... Polish authorities.

The case quickly became quite well known, especially in the region, where it was publicized by the most important local media. Where did this conflict start? As usual in such cases, from ambiguities in the regulations. In 2003, a law came into force in Poland which provided for exemptions from property tax for buildings and facilities belonging to public airports. When Poland entered the structures of the European Union, it was necessary to adapt the previously binding regulations to new realities, including aid programmes, which provided for the transfer of funds to local governments for the development of infrastructure. However, in 2007, this provision was found to be compatible with aid schemes. However, this assessment concerned only the three-year transitional period that has prevailed in our country since its accession to the Union. In the same year this period finished - simultaneously various legal problems started. In a complaint to the European Commission prepared by the representatives of the Zabierzów municipality, they present numerous doubts as to the proper functioning of such tax exemptions.

In addition, the obligation to notify this provision in Brussels was neglected in 2007. As the municipality argues, such tax exemptions have a very negative impact on the efficient functioning of the local market. They do not promote favourable trade for private entrepreneurs, they are granted in a very selective manner and are not transparent enough. The complainants allege that this provision is incompatible with Article 107 of the Treaty on the Functioning of the European Union. Indeed, many tax law experts agree, after careful examination, that aid granted to airports is granted illegally. However, if it was suddenly liquidated, it could have very serious consequences for the state budget and some local governments in Poland. Airports would not only have to start paying tax on their property, but would also have to pay all their previous debts, which they had not paid for the whole of the previous years.

It is interesting that in the Zabierzów commune there is the Kraków-Balice airport, one of the most important airports in our country. As estimated by the municipal authorities, the local airport gains savings of PLN 6 million per year from such exemptions. Repayment of all such debts would therefore be very costly. Interestingly enough, the complaint did not attract much interest from the European Commission. The Zabierzów Commune in its postulates did not find too many allies in other cities and communes, where large airports are located. In Brussels alone, the application was rejected. According to her position, the Zabierzów commune is not competent to submit such postulates. It is true that EU rules allow complaints to be lodged when aid is granted that seriously threatens the interests of private entrepreneurs and adversely affects the functioning of the market in a given region. However, only states, entrepreneurs or business associations and private individuals have the right to do so. Individual administrative units do not have such rights, so the complaint of the Zabierzów municipality could not be considered.

Piotr Madej, a specialist in tax law and the author of a complaint prepared by the municipality, does not support this decision. It recognises itself, however, that the municipality cannot necessarily be a competitor of any economic operator and that, therefore, the rules in force do not directly affect its interests. In his opinion, however, the law in force in the European Union is too complex and inaccurate, as evidenced by such situations. He stated that the municipality could set up a company under commercial law to represent him in this case, in which case his complaint would at least have been upheld. The municipality was prepared for such a decision by Brussels and had already prepared a request to initiate an appropriate procedure to clarify the rejection of its complaint. The author points out that the same document would have been considered if it had been submitted by any other entity falling within the definitions of applicable EU law. In his opinion, the whole matter should be dealt with by the Polish government. It is not just about this one case, but about all transparency in the provision of public aid to individual entities. Such problems are intended to show the shortcomings in its proper monitoring of the process and in the allocation of aid in a rather selective way. Despite the first failures, the Zabierzów commune announces that it will not lay down its arms in this matter. So far, further activities are planned, both in Brussels and in Poland itself. The representatives of the commune are looking for other local governments that share their opinion on this matter and are ready to join the battle.