EC, Croatia agree on privatising shipyards

Croatian officials finally agreed with the European Commission (EC) on privatising all six shipyards in the country, Economy Minister Damir Polancec said Wednesday (June 17th), following a meeting with EU Competition Commissioner Neelie Kroes in Brussels. The restructuring was a main impediment in Croatia's EU accession talks. The agreement clears the way for the competition negotiating chapter of Croatia's acquis to open. The EC requested that restructuring begin before the chapter opens, as it believes state subsidies violate EU rules. The agreement also paves the way for the launch of tender procedures for the six companies, possibly early next month, Polancec said. The plan foresees a separate privatisation model for the Uljanik shipbuilding company, the only profitable one.