Commission refers Croatia to the CJEU for failing to amend the law on the privatisation of the energy company INA-Industrija Nafte, d.d. (INA)

Background and further information:

INA is the main Croatian energy company, partially owned by the Croatian Government. The INA law grants the State special powers in this company, including vetoing INA's decisions relating to the sale of shares or assets above a certain value. The State can also oppose important management decisions, such as a change in the company's activities, the granting of concessions or authorisations and the location of its registered office.

In the Commission's view, these unconditional veto powers go beyond what is necessary to protect security of energy supply and are therefore disproportionate.

Croatia took the commitment to align the so-called INA law with EU rules before its accession to the European Union. In November 2014, the European Commission decided to take action against Croatia for failure to amend such law. After assessing the observations of the Croatian authorities in December 2016, the European Commission sent a reasoned opinion to Croatia to formally request the amendment of the INA law, to no effect to date.

The European Commission decided on 13 July 2017 to refer Croatia to the Court of Justice of the European Union (CJEU) for failing to align the 2002 law on the privatisation of INA-Industrija Nafte, d.d. ('INA law') with EU rules on the free movement of capital and the freedom of establishment.