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Commission opens formal investigation State aid procedure into Croatian support for wood industry – Clayton & Segura

24 February 2025
Press Releases

Commission opens formal investigation State aid procedure into Croatian support for wood industry

Today, the European Commission (Commission) has opened an in-depth investigation procedure to determine whether Croatia’s alleged public support to Hrvatske Šume d.o.o. (‘HŠ’) and certain Croatian wood processing companies complies with EU State aid rules.

Allegedly, the support to Hrvatske Šume (HŠ) and certain wood processing companies has been granted through (i) HŠ’s exclusive rights to exploit public forests without remuneration and (ii) below-market wood prices offered to selected companies.

The Commission questions whether these measures gave HŠ an unfair advantage over private competitors and whether the non-market conform prices offered to certain companies were independent or influenced by the Croatian State.

The Commission will now conduct a detailed investigation to verify its initial concerns. This process allows Croatia, stakeholders, and the complainant to submit comments, without predetermining the outcome.

For more information, see the Commission’s PR .

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