Shipyards

EC: Gov't grants for shipyards not allowed at any level

28.10.2010 u 20:04

Bionic
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The European Commission has received a draft plan for the restructuring of the 3. Maj shipyard from Rijeka, it is familiar with the possibility of government support to the shipyard in the form of guarantees, and it will request from the Croatian government additional information so that it can make a complete assessment, however, it recalls that government grants are not allowed at any level, EC spokeswoman Angela Filote said on Thursday.

Filote made the statement in response to an inquiry from Hina regarding the EC's stand on plans by the authorities of the northern Croatian Adriatic port city of Rijeka to give guarantees to the 3. Maj shipyard so it could start building two of four asphalt tankers for a Swedish client, if the central government does not do it.

The Commission has received a draft plan for the restructuring of the 3. Maj shipyard and is now studying it. The plan is yet to be formally approved by the Croatian Competition Agency. The EC is aware of the possibility that the shipyard could receive state support in the form of guarantees and it will request from the Croatian government additional information so that it could make a complete assessment, said Filote.

She recalled that under its Stabilisation and Association Agreement with the EU, Croatia had the obligation to respect EU rules on government grants which apply to all levels of government support, as well as the EU's Joint Negotiating Position on the policy area Competition Policy, under which ailing shipyards must not take new orders until plans for their restructuring are approved.