The European Commission has approved, under EU State aid rules, Croatia's plans to grant mechanical engineering company Ðuro Ðaković d.d. (‘Đuro Đaković) restructuring aid to the for a total amount of €57.4 million (HRK 430.6 million).

The measure will enable the company to finance its restructuring plan and restore its long-term viability with the support of a private investor, the consortium of Czech companies DD Acquisition.

Đuro Đaković employs 733 people and has a diversified industrial portfolio including defence, transport, industry and energy. The core business of the company at present is the manufacture of freight wagons for special purposes. Đuro Đaković is located in the Eastern part of Continental Croatia, which is an assisted region with high and persistent unemployment and low levels of job creation. Đuro Đaković has been facing difficulties due to internal and external factors, including cutbacks by Croatia of its military spending in the last years.

On 8 May 2020, the Commission approved rescue aid to Đuro Đaković in the form of a Croatian State guarantee on a €40.31 million (HRK 300 million) loan in favour of the company. The State guarantee allowed the company to meet urgent liquidity needs and continue its activities, while limiting distortions to competition until approval of the restructuring plan. At the time, Croatia committed to submit a restructuring plan for Đuro Đaković within six months following the first disbursement of the guaranteed funds.