Croatia will join the European Union in July 2013 even if it does not fulfil all of its remaining obligations, most notable privatise its loss-making shipyards, the European Union's envoy to Croatia Paul Vandoren said, Croatian Times reports.
In an interview with Reuters, Vandoren said that shipyard restructuring plans dated back to last spring but remained unimplemented. Privatisation agreements must be signed by the time Croatia enters the European Union because otherwise - if the shipyards remain in state ownership - they will have to return all the state subsidies they received prior to 2006. Five loss-making shipyards are heavily subsidised by the state.
Vandoren said the EU would continue to monitor the country's judiciary reforms, fight against corruption and restructuring of the shipbuilding industry. There exist, however, no punitive mechanisms if Croatia does not comply before joining the Union apart from the European Commission's written warning. Vandoren hopes this will not happen as it gives Croatia a negative image.
"After Croatia becomes a member of the EU and is in a position to violate market principles, other member states can activate numerous protective measures," Vandoren said without elaborating on what those protective measures could be.
Croatia's EU negotiations ended in June of this year, with the signing of the accession agreement scheduled for 9 December. All 27 EU states must then ratify the agreement.
In an interview with Reuters, Vandoren said that shipyard restructuring plans dated back to last spring but remained unimplemented. Privatisation agreements must be signed by the time Croatia enters the European Union because otherwise - if the shipyards remain in state ownership - they will have to return all the state subsidies they received prior to 2006. Five loss-making shipyards are heavily subsidised by the state.
Vandoren said the EU would continue to monitor the country's judiciary reforms, fight against corruption and restructuring of the shipbuilding industry. There exist, however, no punitive mechanisms if Croatia does not comply before joining the Union apart from the European Commission's written warning. Vandoren hopes this will not happen as it gives Croatia a negative image.
"After Croatia becomes a member of the EU and is in a position to violate market principles, other member states can activate numerous protective measures," Vandoren said without elaborating on what those protective measures could be.
Croatia's EU negotiations ended in June of this year, with the signing of the accession agreement scheduled for 9 December. All 27 EU states must then ratify the agreement.