The EC allocates 250 million kuna to Croatia for the ‘regularity’ of five ferry lines

The European Commission (EC) has approved 250 million kuna (34 million EUR) to ensure regular ferry connections on five lines between Croatian islands and the mainland, emphasizing that public funds will contribute to connectivity and the development of the islands without unjustly distorting competition in the single market, it was announced on Thursday by the EC.

The Commission has approved the Croatian plan for the compensation for the provision of public service for the management and operation of five ferry lines for the transport of passengers and vehicles between the town of Preko on the island of Ugljan, the island of Ošljak and Zadar/Gaženica on the mainland, Tkona on the island of Pašman and Biograd on the mainland, Sućuraj on the island of Hvar and Drvenik on the mainland, and Stari Grad on the island of Hvar and Split on the mainland, in accordance with EU state aid rules.

Public support will be granted to maritime companies selected through public tenders organized by the Agency for Coastal Line Maritime Transport. The total budget for the public service compensation amounts to 249.2 million kuna (33.8 million EUR).

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Commissioner for Competition Policy Margrethe Vestager stated that “for citizens living on Croatian islands, the connection to the mainland is essential. Therefore, I am pleased to say that we approve public support for ferry lines that ensure the connectivity of five Croatian islands with the rest of Croatia not only during the peak tourist season in summer but throughout the entire year,” she emphasized.

Public support will cover the difference between ferry ticket revenues and the costs of managing and operating the ferries to enable residents of these islands to commute to work or study daily and to transport vehicles and goods to and from the islands.

The Commission also concluded that this state aid will contribute to connectivity and the social and economic development of these islands. Support is necessary to ensure that traffic on these lines is provided with sufficient frequency throughout the year, as ticket revenues exceed ferry operating costs only at the peak of the summer season, the European Commission announced.