ZAGREB, September 7, 2018 – The first unofficial response from the European Commission to the restructuring plan for the Uljanik shipbuilding group is expected on Friday, when Commissioner for Competition Margrethe Vestager is to visit Zagreb, but the EC said on Thursday that any plan regarding the shipbuilding group must respect market competition, save taxpayers’ money and involve contributions by market stakeholders.
Vestager is expected to meet with Prime Minister Andrej Plenković, who will be accompanied by Economy Minister Darko Horvat and Regional Development and EU Funds Minister Gabrijela Žalac.
A spokesman for the EC said ahead of Vestager’s visit that the EC was fully aware of the importance of the Uljanik shipyards for the region of Istria. “We are closely following recent developments and interventions by the Croatian government on the ground to secure the wages of workers and guarantees provided to the company for cancelled orders.”
In January 2018, acting in line with EU rules on state aid, the EC approved the issuing of a state guarantee for a 96 million euro loan for Uljanik. “This kind of state aid is subject to restructuring of the company concerned, in order to ensure the viability of the company and that taxpayer money is used efficiently,” the spokesman said.
“To preserve jobs in Istria on a sustainable basis, the restructuring plan must be credible and reflect market trust in the ability of Uljanik to return to long-term viability without continued public support. This needs to be demonstrated in particular by market stakeholders or the company itself contributing to the planned restructuring costs. Finally, the plan must preserve fair competition on the merits across the European shipbuilding industry,” he said.
The EC has said it has received the restructuring plan for Uljanik and has been in touch with the Croatian government. “The discussions involve complex issues, and we cannot prejudge the outcome of our ongoing assessment or the timing of possible next steps,” the spokesman said.
The restructuring plan for Uljanik was sent to Brussels on July 13.
