The European Commission decided on Thursday to temporarily suspend proceedings against Croatia before the EU Court regarding the INA privatization law, as the Croatian government has meanwhile published a draft of a new law that could eliminate the reasons for this procedure.
The Commission referred the case against Croatia to the Court on July 13 last year because it had not aligned the 2002 Law on the Privatization of INA-Industrija nafte with EU regulations on the free movement of capital and the freedom of establishment.
Since then, Croatian authorities have discussed with the Commission the amendments necessary to align the INA Law with EU regulations, the Commission states, adding that a draft amendment to the said Law has recently been submitted, which would address the main concerns of the Commission with additional adjustments.
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“Croatian authorities have also submitted a plan for its adoption to find a solution before a possible ruling by the Court. The Commission therefore believes that the referred case should be put on hold until the amendment to the INA Law is adopted,” the Commission announced.
For the Commission, the contentious issue in the INA Law is that special powers have been granted to the state in this company, including the right to veto company decisions regarding the sale of shares or assets above a certain value. Likewise, the state can oppose important decisions of INA’s management, such as changes in the company’s activities, granting concessions or authorizations, and changing the address of its headquarters.
