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Parliament adopts new state aid law

ZAGREB, June 5 (Hina) - The Croatian parliament on Wednesday passed a new state aid law aligning the aid system with European Union regulations.

As of July 1, when Croatia joins the EU, the Croatian Competition Agency (AZTN) will no longer approve state aid. This will be done by the European Commission, which will be directly responsible for approving and controlling state aid. The AZTN will have an advisory role towards state aid providers and will communicate with the Commission.

The Finance Ministry will follow the fiscal effects of state aid, while providers will have the obligation to obtain the ministry's opinion when planning state aid.

A total of HRK 57.2 billion was approved in state aid from 2006 to 2011, of which HRK 21.2 billion for agriculture and fisheries. The main problem was the aid's unfavourable structure.

Parliament passed a dozen other laws as well, including on customs, public fund flows, and excise duties on coffee and soft drinks. It also amended the law on the identity card, which will now have an electronic data carrier.

Parliament also approved several reports, including the Croatian Bank for Reconstruction and Development's 2012 annual report.

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