ANNOUNCEMENT 30 Nov 2020

On 30 November 2020, the European Commission approved a financial grant measure from Croatia to support Croatian Airlines facing liquidity shortages as a result of travel restrictions due to the COVID-19 outbreak.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 30 Nov 2020 | Removal date: open ended

Financial grant

On 30 November 2020, the European Commission approved a HRK 88.5 million (USD 13.9) million direct grant measure from Croatia. The aid will support Croatia Airlines which experienced a drop of activity of 62.4% in the first five months of 2020. 

The one-off grant will be administered by the Ministry of the Sea, Transport, and Infrastructure.

In this context, the European Commission noted the: 'The measure is liable to distort competition, since it strengthens the competitive position of Croatia Airlines. It also affects trade between Member States, since Croatia Airlines is active in the aviation sector, in which intra-Union trade exists (recital (26)).'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that '[...] it is compatible with the internal market pursuant to Article 107(2)(b) of the Treaty on the Functioning of the European Union.'.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A