The European Commission (EC) has approved Croatian funding for five ferry routes to its islands.
It said financing awards of HRK 250m ($40m) to ensure regular connections with the mainland are within state aid rules.
The public funding will contribute to the connectivity and development of the islands without unduly distorting competition in the single market, the EC said.
The cash will go to shipping companies selected through public tenders organised by the state.
It will also cover the difference between revenues from ferry tickets and the cost of operating the vessels regularly.
EC commissioner Margrethe Vestager, in charge of competition policy, said: "For citizens living on Croatian islands, a connection to the mainland is essential.
"So I'm happy that we are approving public support for ferry connections ensuring the link between five Croatian islands and the rest of Croatia not only during the peak tourist season in the summer, but throughout the year."
