Abstract
Coastal line maritime passenger transport in the Republic of Croatia, as well as in other EU member states, is regulated through various regulations and legislation, which in turn result in numerous national laws and regulations that affect its development, all of which is legally binding for shippers. Scheduled maritime passenger transport is an extremely important form of transport for the Republic of Croatia since it is the only form of connection with the mainland for many islands. This paper analyses economic policy measures that affect the organization and implementation of coastal line maritime passenger transport. The paper also investigates the demand fluctuation for maritime passenger transport services. The aid measures provided by the state to individual sectors is also analysed, as well as aid for the provision of services of general economic interest. The aim of this paper is to assess the amount of aid granted to maritime transport and its importance, especially in coastal line maritime passenger transport. The paper also explains the importance of establishing the Coastal Liner Services Agency as a regulatory body of the Republic of Croatia, and it further analyses the subsidy amounts granted to shippers in the period from 2014 to 2020.
Highlights
The economic policy measures contained in the legal regulations of the European Union, as well as national economic policies contained in the legal framework of Croatia – binding for all who operate within the national economic framework – all of this has great impact on shippers dealing in coastal line maritime passenger transport
In the Treaty on the Accession of the Republic of Croatia to the European Union, in the article related to Transport Policy, a transitional period was agreed for the application of a regulation defining the principles of freedom to provide services in public maritime transport between member states
It can be seen from the Table provided above that the largest share of subsidies, 40.35%, is paid out in the form of compensation for the provision of public service of public coastal line maritime transport – in particular on state ferry lines – during the period from 2018 to 2023, with the option for compensation extension until 2027: this amount accounts for only 3.7% of total aid for the provision of services of general economic interest
Summary
The economic policy measures contained in the legal regulations of the European Union, as well as national economic policies contained in the legal framework of Croatia – binding for all who operate within the national economic framework – all of this has great impact on shippers dealing in coastal line maritime passenger transport. In the Treaty on the Accession of the Republic of Croatia to the European Union, in the article related to Transport Policy, a transitional period was agreed for the application of a regulation defining the principles of freedom to provide services in public maritime transport between member states. Of the total number of passengers transported annually by the observed line, only 10% of those were transported out of season, and about 90% during the season and the pre-season and post-season periods This indicates that the aforementioned line is often given importance with regard to the island population, it is cost-effective only due to the large tourist traffic and because of the importance of tourism for the island economy. These rules arose from the Decision of the European Commission (28 November 2005) on the application of Article 86 (2) of the Treaty Establishing the European Community with regard to state aid granted in the form of compensation to entrepreneurs undertaking services that are of general economic interest
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