Croatia to Resolve Issue of State-Owned Shipyards Before Joining EU

In the next few months Croatia intends to resolve the issue of state-owned shipyards that are losing money, in order to work out their major obstacles before joining the European Union next year, reports Reuters. Four out of five shipyards in Croatia are loss-makers kept afloat by large state subsidies that are contrary to EU competition rules.

The government decided to sell the biggest shipyard to a local firm and to force another into bankruptcy last week, and are still searching for a solution for the remaining two shipyards.

Foreign Minister Vesna Pusic said: “This is a topic we will clear up by this summer in any event”

The docks will have to repay close to 2 billion euros ($2.66 billion) of state aid received since 2006, unless Zagreb sells them or makes them viable on their own by the time it joins the EU on July 1, 2013.

An EU diplomat, asking not to be named, said: “There is no reason to panic, but no delay in tackling this issue is possible. There is still a lot work ahead and I hope the government will find new buyers.”

The report on how Croatia is meeting their set obligations will be issued next month by the European Commission.

“It will highlight areas where it is important to accelerate progress before the final report in October,” Pusic said about the April report.

[mappress]

Shipbuilding Tribune Staff, April 2, 2012;