"My opinion that Danko Koncar has right from the start been an irresponsible partner to the government in restructuring the shipyards is turning out to be true. He used his power and money to send out PR messages through the media without seriously preparing for the takeover of the shipyards. In that way he put both the previous government and us as the new government in huge trouble," Linic said in Brussels where he was attending a meeting of EU finance ministers as an observer.

"We have only a year and a few months left to meet the requirements and commitments we have signed with the European Commission, which means either restructuring the shipyards through privatisation or their bankruptcy. There is little time left, and talks with the existing investors and buyers will be difficult because they are making impossible conditions. The main question now is whether there is anyone else out there or the shipyards will be in big trouble," he said.

The Samobor-based screw factory DIV is interested in privatising the Brodosplit shipyard, while Danko Koncar's Jadranska Ulaganja is interested in Rijeka's 3rd May shipyard, Trogir and Kraljevica.

Linic said there was no need for a new tender and that it was important "to find someone who will be willing, in cooperation with the government, to restructure and keep the shipyards on the European and global market."

Linic said that the prospective investors "are scared of shipbuilding, they were not present in the shipbuilding industry and are incapable of carrying that burden." "It is an unpleasant situation for the government and we will have to do something about it," he added.

EU finance ministers discussed a possibility of imposing taxes on financial transactions, and decided to freeze funds from the Cohesion Fund for Hungary unless Budapest adopted measures for the reduction of the budget deficit by June.