On Monday 22 January, the European Commission approved a Croatian state guarantee for a €96 million loan for shipbuilder Uljanik.
Uljanik employs around 1,800 personnel and has been experiencing financial difficulties for several years, especially due to the crisis hitting the shipbuilding sector.
The European Commission has analysed the measure with regard to the revised guidelines on support for companies in trouble. These authorise member states to bring help to such companies, particularly if the measure is limited in time and scope and contributes to an objective of common interest.
The Commission found the aid was necessary to avoid bankruptcy and heavy job losses. Uljanik's liquidity needs in the coming months will furthermore be supervised by an independent authority. The Croatian authorities have committed to notifying the Commission within six months of a restructuring plan for the company.
Given these conditions, the Commission considered the potential competition distortion would not be very significant and thus approved the Croatian measure. (Original version in French by Lucas Tripoteau)