Potential buyers of the shipyards must stick to the restructuring programmes that have been approved by the European Commission and Croatia's Competition Agency for the Brodosplit, Brodotrogir, 3. Maj and Kraljevica yards, which have to be privatised within five years, Dragicevic told reporters, adding that within that time, the new owners had to reassign 670 workers in Brodosplit, about 270 in Brodotrogir and about 600 in 3. Maj.

The SMH wants the government to adopt a final decision by the end of the month on the privatisation of the shipyards and to bind buyers to strictly adhere to the restructuring programmes, otherwise they would have to return the yards to the state.

Dragicevic said that if the shipyards were not sold, the restructuring programmes could be carried out by the state, adding that Brussels did not demand that the yards be sold, only that the state no longer subsidised them.

For the SMH, the only thing out of the question is receivership, as it can only end in liquidation.

Dragicevic asked that the government, before launching a HRK 8 billion investment programme, dealt with the issue of tenders to prevent foreigners from being favoured over domestic companies.

He said foreign companies should be hired only as subcontractors, as was the practice in Germany or France, adding that the government had unofficially announced the possibility of issuing certificates to interested companies for that purpose.

Dragicevic also said the US company CMC received two offers for the steel mill in Sisak but that it was not satisfied with them and was still looking for a buyer. He said the SMH expected the company to find a buyer by June 1, otherwise it would propose that the government rented the mill or launched production in order to save 500-600 jobs.