The European Commission struck a deal with Croatia on the restructuring of its ailing shipyards, a reform sought by the EU as part of membership talks with Zagreb, a spokesman said. "There were discussions today on the terms of the restructuring and the privatisation," said Jonathan Todd, spokesman for EU Competition Commissioner Neelie Kroes.
"There is agreement on the overall capacity of the shipyards after restructuring," he added, confirming that the deal allowed the EU executive to successfully close the dossier. The deal centres around the privatisation of the Uljanik shipyard, the only one out of a total of five to remain profitable. Under the deal, 50.1% will end up in private hands.
Also the Kraljevica yard will be allowed to expand under the terms of the agreement.
The Croatian government and trade unions agreed last December on controversial plans to restructure the shipyards. Since then the government has been in talks with the EU. Shipbuilding accounts for around 15% of Croatia's exports.
"There is agreement on the overall capacity of the shipyards after restructuring," he added, confirming that the deal allowed the EU executive to successfully close the dossier. The deal centres around the privatisation of the Uljanik shipyard, the only one out of a total of five to remain profitable. Under the deal, 50.1% will end up in private hands.
Also the Kraljevica yard will be allowed to expand under the terms of the agreement.
The Croatian government and trade unions agreed last December on controversial plans to restructure the shipyards. Since then the government has been in talks with the EU. Shipbuilding accounts for around 15% of Croatia's exports.