ZAGREB, Oct 11 (Reuters) - Croatia will next month publish tenders for privatisation of all six shipyards which is a key requirement for completion of its European Union accession talks, state radio reported on Saturday.
Before that, drafts of the tenders have to be confirmed by the European Commission, state radio reported after the talks Deputy Prime Minister Damir Polancec had with managements and unions in the shipyards.
'From those who will compete in tenders we will require to offer an adequate capital boost which would help further production, bring necessary investments into the shipyards and secure funds for payments in case of possible layoffs,' Polancec was quoted as saying.
Restructuring of the heavily subsidised loss-making shipyards is a major requirement for Croatia to keep its European Union accession negotiations on track. If wrapped up by the end of 2009, it would probably see Croatia a member in 2011.
Only one shipyard, Uljanik, which is located in the northern Adriatic town of Pula, is profitable.
The restructuring of shipyards is one of the most sensitive social issues in Croatia's talks about joining the EU as the industry employs tens of thousands of people and many small businesses dependent on it.
Earlier this month, some unions threatened to call a strike if the privatisation plans involved major job losses.
Earlier this year Croatia made restructuring plans for all six docks which did not include immediate privatisation, but the European Commission assessed them not viable enough to guarantee that shipyards will run profitably upon EU entry.
The bloc insists on overhaul of shipyards before Croatia's accession to avoid the experience with Poland which pledged to restructure the shipyards after the EU entry, but failed to do so.
(Reporting by Igor Ilic, editing by Mike Peacock) Keywords: CROATIA SHIPBUILDING/EU tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Before that, drafts of the tenders have to be confirmed by the European Commission, state radio reported after the talks Deputy Prime Minister Damir Polancec had with managements and unions in the shipyards.
'From those who will compete in tenders we will require to offer an adequate capital boost which would help further production, bring necessary investments into the shipyards and secure funds for payments in case of possible layoffs,' Polancec was quoted as saying.
Restructuring of the heavily subsidised loss-making shipyards is a major requirement for Croatia to keep its European Union accession negotiations on track. If wrapped up by the end of 2009, it would probably see Croatia a member in 2011.
Only one shipyard, Uljanik, which is located in the northern Adriatic town of Pula, is profitable.
The restructuring of shipyards is one of the most sensitive social issues in Croatia's talks about joining the EU as the industry employs tens of thousands of people and many small businesses dependent on it.
Earlier this month, some unions threatened to call a strike if the privatisation plans involved major job losses.
Earlier this year Croatia made restructuring plans for all six docks which did not include immediate privatisation, but the European Commission assessed them not viable enough to guarantee that shipyards will run profitably upon EU entry.
The bloc insists on overhaul of shipyards before Croatia's accession to avoid the experience with Poland which pledged to restructure the shipyards after the EU entry, but failed to do so.
(Reporting by Igor Ilic, editing by Mike Peacock) Keywords: CROATIA SHIPBUILDING/EU tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
