EC refers Croatia to EU Court over INA law

EU

The European Commission said Thursday it has referred Croatia to the Court of Justice of the EU for failing to amend a law that grants the government special powers in oil and gas company INA, in which Hungarian peer MOL exercises management rights, to bring it into line with EU rules, state news wire MTI reported.

"The fact that the Croatian State can refuse to approve important decisions that would be in the companyʼs interest may negatively impact company shares and reduce INAʼs attractiveness to investors," the EC said.

The EC launched an infringement procedure against Croatia over the law in November 2014, after it failed to act on commitments it made to align it with EU rules before the countryʼs accession. It stepped up the infringement procedure a little more than a year later.

The state of Croatia and MOL each hold a little less than half of INAʼs shares, but MOL has management rights in the company.

Croatian Prime Minister Andrej Plenković said late last year that the state would buy back MOLʼs stake in INA. The announcement followed an international arbitration courtʼs decision dismissing the Croatian governmentʼs claims against MOL relating to bribery, corporate governance and alleged breaches of a shareholdersʼ agreement.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

Operative corps for economic recovery decides on further mea... Government

Operative corps for economic recovery decides on further mea...

Healthcare Roadshow Highlights Innovation, Screening Awarene... Interview

Healthcare Roadshow Highlights Innovation, Screening Awarene...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.