EU support for Croatian railway
The European Commission has approved Croatia's decision to aid HZ Cargo to the tune of EUR 129.5 million. The state-owned railfreight operator was in financial difficulties due to its over-indebtedness.
In May 2015, Croatia decided to cancel HZ Cargo's debt held by the state, and such a debt cancellation constitutes state aid because it relieved HZ Cargo from the repayment obligation, something the company would not have obtained on the market.
The Commission found, however, that the aid complies with the EU state aid rules because the cancelled debt was incurred prior to Croatia's accession to the EU in July 2013. (ben)