The restructuring and privatisation of the shipyards in Croatia

Abstract

There has been too little analysis in Croatian academic and professional literature of the economic operations of domestic shipyards. The public impression has always been that shipbuilding is a strategic industry from which the country has enormous benefits. But the reality is just the opposite – Croatian shipbuilding is an example of an incinerator of public money. Since 1992, 30bn kuna of taxpayers’ money has been sunk into its rehabilitation and restructuring. In this paper, accordingly, there is an attempt to explain the process and put forward the costs of rehabilitation and restructuring, as record of a time that will have important fiscal consequences for the future development of Croatia. The fundamental objective of the paper is to explain the main characteristics of the processes in which the shipyards have been restructured, of the liabilities that the state has assumed pursuant to restructuring contracts and the sale of their shares and the liabilities and responsibilities that the new owners have taken on. Explained in particular will be the impact of restructuring on employment, wages, orders and the value of jobs contracted and deliveries.