Peak tourist season hasn’t begun yet in Istria, the largest of Croatia’s idyllic peninsulas. Still, this is Tihomir Ilić’s busiest time. He designs electric signs, installs lighting and lays cables in restaurants, clubs and shops, whose owners want to embellish their establishments before the tourists flood in. He tells me he’s gazing at the deserted docks of Uljanik shipyard, which was declared bankrupt a couple of weeks ago, as the country geared up for its second ever EU election.
It’s difficult to overstate the importance of shipbuilding to the Croatian economy. Up to 5% of the working population is employed by the industry, which generates up to 1.8% of the nation’s GDP.
The image of a shipyard worker – standing in overalls before a raft of giant, powerful machines, a hint of azure sea in the background – touches every generation of Croats. It’s a triumphant symbol of the Socialist Republic of Croatia, which, though it ended in 1991 during the breakup of Yugoslavia, is still idealised by many.
Historically, the shipyard and the state have mutually supported one another, but Croatia’s entry into the EU in 2013 changed that: one of the terms demanded by Brussels was that the government stop subsidising the nation’s shipbuilding industry. When Uljanik began to tank, the government in Zagreb did spend exorbitant sums of money issuing state guarantees for unbuilt ships on order, as well as on the salaries of those who work – worked – at the shipyard. But ultimately, the couldn’t intervene to save Uljanik without violating the EU’s principle of free competition.
Uljanik’s bankruptcy will affect more than 1000 workers. Collectively, they hold almost 50% of shares in the shipyard. But Tihomir tells me they never bothered to take an active role in supervising the work of the management board. They’ve assumed that it’s the EU’s responsibility to deal with their problems while, says Tihomir, “I’m breaking my back trying to contribute to the national budget”.
Tihomir is an entrepreneur, and every kuna of profit he’s earned in the last couple of months will be spent paying this year’s taxes. Cynical about Croatia’s huge public sector, Tihomir declares himself a pro-European liberal. In the impending EU elections, his options are few: the only parties that clearly present themselves as pro-European are the ruling, Right-wing HDZ and two minor Left-wing parties. The other 13 are, more or less, flirting with Euroscepticism.
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