European Commission Sues Croatia Due to Law on INA

By , 13 Jul 2017, 15:10 PM Business
European Commission Sues Croatia Due to Law on INA Source: Pixabay

Share this:

The lawsuit has been filed with the European Court of Justice.

The European Commission decided on Thursday to institute proceedings against Croatia before the European Court of Justice because it did not change the Law on Privatisation of INA, which gives the state the right to veto in the main areas of business operations, reports on 13 July 2017.

INA is the Croatian national oil company.

“The Commission considers that the state's special powers provided for in the INA law unduly restrict the free movement of capital and freedom of establishment. It acknowledges that the objective of protecting the security of energy supply is a legitimate public interest shared by the EU and could justify certain restrictions. However, such restrictions must be proportionate. In the present case, the INA law empowers the Croatian state to oppose important company decisions without needing to justify their veto in terms of potential threats to the security of supply or other public policy, or in the public interest,” says the European Commission in its statement.

Under the Law on INA, the state has been given special powers in the company, including the right to veto the company's decisions regarding the sale of shares or property above a certain threshold. Likewise, the state may oppose important decisions of INA's management, such as a change to company activity, granting of concessions or authorizations, and change of address of its headquarters. “In the Commission's view, these unconditional veto powers go beyond what is necessary to protect the security of energy supply and are therefore disproportionate,” says the European Commission.

The Commission states that before joining the EU, Croatia had assumed the obligation to align the so-called INA law with EU rules. In November 2014, the European Commission decided to take action against Croatia for failure to amend such law. After assessing the observations of the Croatian authorities in December 2016, the European Commission sent a reasoned opinion to Croatia to formally request the amendment of the INA law, on the ground that it violates the rules of the Treaty on the Functioning of the European Union (TFEU) on the freedom of establishment and the free movement of capital. To date, Croatia has not complied with the Commission's reasoned opinion.

The statement ends with a note that, notwithstanding today's decision, the Commission remains open to efforts by the Croatian authorities to find a solution to this case.

Photo of the day

From Croatia with Madness

Croatia Traffic Info

  • Traffic is heavy on the roads towards the coast and the continent, on the roads to tourist centers along the coast and in ferry ports. Drivers are invited to adjust the driving speed to road conditions and also to keep the safety distance. Today (21/22 July from 10pm to 6am) on the Adriatic road (DC8) in Rijeka in the underpass Žabica traffic will be proceeding over one lane in both directions. Traffic ban on freight vehicles exceeding 7.5 t on some roads in Istria and in the coastal area: -Saturday, 22 July from 4 am to 2 am -Sunday, 23 July from noon (12:00) to 11 pm. There is no traffic ban on the motorways and on the state road DC1. Sections of the roads closed due to roadworks: -on the DC1 state road in Lučko (Zagreb) between Gornji Stupnik and Svetonedeljska street -on the state road 29 from Novi Golubovec (crossroad DC29, DC35) -on the DC502 Smilčić-Pridraga state road. Traffic is regulated by traffic signals/one road lane is free only: -on the DC1 state road in Knin until 31st July; -on the DC1 state road at Mostanje and on the section Sučević-Otrić. -on the DC8 Adriatic road on the section Zaton Doli-Bistrina; -on the DC66 Pula-Most Raša state road. With the sunny and dry weather, more and more cyclists and motorists are on the roads. Other vehicles (such as cars or trucks) should look carefully for bicyclists before turning left or right, merging into bicycle lanes and opening doors next to moving traffic. Check your mirrors and be aware of blind spots before turning. While at a stop sign or red light, make a complete stop in order to let bikers pass, and check for unseen riders. Respect the right of way of bicyclists because they are entitled to share the road with you. Cyclists are not immune to traffic violations: pay attention to red lights and practice arm signaling!
    Read more
  • Due to roadworks in Slovenia between Ptuj and the border crossing Gruškovje (Macelj) there are occasionally queues. Expect hold-ups especially during the weekend. Due to traffic density and occasional additional controls, during the day longer waiting times are possible at the border crossings with Slovenia, Bosnia and Herzegovina and Hungary. At Harmica border crossing traffic is allowed for vehicles up to 7,5 tonnes only.
    Read more
  • All ferries and catamarans are operating according to the schedule.
    Read more

Photo galleries and videos