NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009

Publisher Republic of Croatia Ministry of Foreign Affairs and European Integration

Print run 100 copies

Press Denona d.o.o.

Zagreb, April 2009

A CIP catalogue record for this book is available from the National and University Library in Zagreb under 668021 ISBN 978-953-7010-88-1

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

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INTRODUCTORY NOTE INTRODUCTION

INTRODUCTORY NOTE

The Government of the Republic of Croatia enters 2009 with the aim of finalising accession negotiations with the European Union, meaning that we are determined to fulfil the remaining criteria related to the acquis communautaire. We are thus entering the final phase of a process which officially began in 2005, but which had been set as a foreign policy priority two decades ago, at the time the sovereign and independent Republic of Croatia was formed. Croatia’s great progress achieved in the past few years enabled the European Commission to include a road map for completing the accession negotiations with Croatia in 2009 in its Enlargement Strategy of November 2008. The European Commission also proposed the formation of an ad-hoc working group for the drawing up of a Accession Treaty with Croatia and announced the presentation of a financial package for Croatia’s accession to the European Union. The said measures, welcomed by the European Council in its conclusions of December 2008, are a clear indication of Croatia’s progress in transposing the acquis communautaire. They are also an incentive to continue the reforms needed for full membership. From the opening of negotiations on membership of the European Union, Croatia has achieved significant results. In the course of 2008, extensive progress was made in all segments of the negotiations, especially in terms of meeting the benchmarks for opening and closing negotiating chapters. Key decisions were taken in the demanding reforms, which are necessary for joining the European Union, but also primarily in order to strengthen the Croatian economy and society as a whole. The Government of the Republic of Croatia foresees that the new National Programme will provide the basis for continued activities within the framework of all criteria for membership of the European Union. This year, it is planned to adopt 57 laws and a quantity of subordinate legislation and implementation measures to ensure effective implementation of the acquis communautaire. In addition, the National Programme foresees a number of strategic documents for the development of individual sectors, such as agriculture, public procurement, and competition. By adopting this National Programme for 2009, the Republic of Croatia confirms its credibility in the negotiating process, its full commitment to meeting European standards and accepting European values, and in particular its respect for the principles of the rule of law, solidarity and co-operation, on which the European Union rests. Croatia has developed its preparations for membership precisely along the lines of the said values, and it is in line with the said values that Croatia intends to become the 28th member of the European Union.

Ivo Sanader, PhD Prime Minister of the Republic of Croatia

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

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TABLE OF CONTENTS

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

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TABLE OF CONTENTS

TABLE OF CONTENTS

INTRODUCTORY NOTE TABLE OF CONTENTS LIST OF ABBREVIATIONS INTRODUCTION I. POLITICAL CRITERIA
1.1. INTRODUCTION 1.2. DEMOCRACY AND THE RULE OF LAW 1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1.4. OMBUDSMAN 1.5. RETURN OF REFUGEES 1.6. CO-OPERATION WITH THE INTERNATIONAL CRIMINAL TRIBUNAL FOR FORMER YUGOSLAVIA 1.7. REGIONAL CO-OPERATION

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19

24

31 31 32 49 64 65 71 74

II. ECONOMIC CRITERIA
2.1. INTRODUCTION 2.2. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA 2.3. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 2.4 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU 2.5. MAASTRICHT CRITERIA

91 91 92 93 104 113

III. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP
3.1. FREE MOVEMENT OF GOODS 3.1.1. Horizontal issues 3.1.2. Old Approach Directives 3.1.3. New Approach Directives 3.1.4. Procedural matters 3.2. FREEDOM OF MOVEMENT FOR WORKERS 3.2.2. Co-ordination of social security systems 3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 3.3.1. The Right of Establishment 3.3.2. Freedom to Provide Cross-Border Services 3.3.3. Postal services 3.3.4. Mutual Recognition of Qualifications

116 116 116 137 144 160 166 168 171 171 173 176 178

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

3.4.

FREE MOVEMENT OF CAPITAL 3.4.1. Movement of capital and current payments 3.4.2. Payments and collections 3.4.3. Prevention of money laundering

181 181 182 182 187 187 190 192 194 194 196 197 199 199 200 203 209 209 210 215 215 221 225 227 227 231 233 236 236 239 240 241 243 244 244 246 246 248 252

3.5.

PUBLIC PROCUREMENT 3.5.1. Public Procurement 3.5.2. Concessions 3.5.3. Public Private Partnerships

3.6.

COMPANY LAW 3.6.1 Company Law 3.6.2 Accounting 3.6.3 Audit

3.7.

INTELLECTUAL PROPERTY RIGHTS 3.7.1. Copyright and Related Rights 3.7.2. Industrial Property 3.7.3. Enforcement of Intellectual Property Rights

3.8.

COMPETITION POLICY 3.8.1. Anti-trust and merger control 3.8.2. State Aid

3.9.

FINANCIAL SERVICES 3.9.1. Banking 3.9.2. Insurance 3.9.3. Capital market

3.10. INFORMATION SOCIETY AND MEDIA 3.10.1. Electronic communications 3.10.2. Information society services 3.10.3. Audiovisual policy 3.11. AGRICULTURE AND RURAL DEVELOPMENT 3.11.1. Agricultural policy and horizontal measures 3.11.2. Rural development policy 3.11.3. Livestock breeding 3.11.4. Plant production 3.11.5. Quality policy 3.11.6. Organic production 3.11.7. Vertical legislation 3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 3.12.1. Food safety 3.12.2. Veterinary policy 3.12.3. Zootechnics

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TABLE OF CONTENTS

3.12.4. Phytosanitary policy 3.12.5. Plant production 3.13. FISHERIES 3.14. TRANSPORT POLICY 3.14.1. Road transport 3.14.2. Railway transport 3.14.3. Combined transport 3.14.4. Inland navigation 3.14.5. Air transport 3.14.6. Maritime transport 3.14.7. State aid 3.15. ENERGY 3.15.1. Energy product market and security of supply 3.15.2. Energy efficiency and renewable energy sources 3.15.3. Nuclear safety and radiation protection 3.16. TAXATION 3.17. ECONOMIC AND MONETARY POLICY 3.17.1. Priorities in legislative alignment 3.17.2. Co-ordination of economic and fiscal policies 3.17.3. Monetary and exchange rate policy 3.18. STATISTICS 3.18.1. Support to statistical data, technical infrastructure 3.18.2. Demographics and social statistics 3.18.4. Agriculture, forestry and fisheries 3.18.5. Multi-sector statistics 3.18.6. Sources and management 3.19. SOCIAL POLICY AND EMPLOYMENT 3.19.1. Labour legislation 3.19.2. Health and safety at work 3.19.3. Social dialogue 3.19.4. Employment and the European Social Fund 3.19.5. Social inclusion 3.19.6. Social security 3.19.7. Anti-discrimination and equal opportunities 3.20. ENTERPRISE AND INDUSTRIAL POLICY 3.20.1. Enterprise 3.20.2. Industrial policy 3.20.3. Industrial sectors 3.20.4. Tourism

252 259 261 264 264 267 269 269 270 272 276 278 278 280 282 285 294 294 294 295 296 296 297 305 306 307 308 308 311 313 315 329 331 333 335 335 340 340 343

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

3.21. TRANS-EUROPEAN NETWORKS 3.21.1. Transport networks 3.21.2 Energy networks 3.22. REGIONAL POLICY AND CO-ORDINATION OF STRUCTURAL INSTRUMENTS 3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 3.23.1. Judicial reform 3.23.2. Anti-corruption Measures 3.23.3. Fundamental rights 3.24. JUSTICE, FREEDOM AND SECURITY 3.24.1. Asylum 3.24.2. Migration 3.24.3. Visas 3.24.4. Border Management and Schengen 3.24.5 Police Co-operation and the Fight against Organised Crime 3.24.6. Terrorism 3.24.7 Co-operation in the Area of Drugs 3.24.8 Judicial Co-operation in Criminal and Civil Matters 3.24.9. Customs Co-operation 3.25. SCIENCE AND RESEARCH 3.26. EDUCATION AND CULTURE 3.26.1. Education and training 3.26.2. Culture 3.27. ENVIRONMENT 3.27.1. Horizontal legislation 3.27.2. Air quality 3.27.3. Waste management 3.27.4. Water quality 3.27.5. Quality of the sea and marine environment 3.27.6. Nature protection 3.27.7. Industrial pollution control and risk management 3.27.8. Chemicals and GMOs 3.27.9. Noise protection 3.27.10. Forestry 3.28. CONSUMER AND HEALTH PROTECTION 3.28.1. Consumer protection 3.28.2. Health Protection 3.29. CUSTOMS UNION 3.30. EXTERNAL RELATIONS 3.31. FOREIGN, SECURITY AND DEFENCE POLICY

346 346 347 348 354 354 365 370 374 374 376 379 383 387 399 400 402 405 407 414 414 425 427 427 435 438 440 443 444 449 452 455 455 456 456 461 465 468 473

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TABLE OF CONTENTS

3.31.1. Introduction 3.31.2. Co-operation with international organisations 3.31.3. Arms control 3.31.4. Implementation of restrictive measures and economic sanctions 3.31.5. Croatia’s contribution to anti-terrorism efforts 3.31.6. European Security and Defence Policy 3.31.7. Peace missions and operations 3.31.8. Visa regime 3.32. FINANCIAL CONTROL 3.32.1 Public Internal Financial Control System 3.32.2 External Audits − State Audit Office 3.32.3. Protection of EU financial interests 3.33. FINANCIAL AND BUDGETARY PROVISIONS

473 474 483 491 492 493 493 496 498 498 501 502 506

ANNEX A
I. 1.1. 1.3. POLITICAL CRITERIA DEMOCRACY AND THE RULE OF LAW HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1.3.1. Civil, political, economic and social rights 1.6. 3.1. CO-OPERATION WITH THE ICTY FREE MOVEMENT OF GOODS 3.1.1. Horizontal issues 3.1.2. Old Approach Directives 3.1.3. New Approach Directives 3.1.4. Procedural matters 3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 3.3.2. Freedom to provide cross-border services 3.3.3. Postal services 3.4. FREE MOVEMENT OF CAPITAL 3.4.2. Payments and collections 3.5. 3.6. 3.7. 3.8. PUBLIC PROCUREMENT COMPANY LAW INTELLECTUAL PROPERTY RIGHTS COMPETITION POLICY 3.8.1. Competition law 3.8.2. State aid 3.9. FINANCIAL SERVICES 3.9.3. Securities market and investment services 511 511 514 514 515 516 516 521 528 536 538 538 540 541 541 542 543 544 546 546 548 549 549

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

3.10. INFORMATION SOCIETY AND MEDIA 3.10.1. Electronic communications 3.10.2. Information society 3.10.3. Audiovisual policy 3.11. AGRICULTURE AND RURAL DEVELOPMENT 3.11.1. Agricultural policy and horizontal measures 3.11.2. Rural development policy 3.11.3. Livestock breeding 3.11.4. Plant production 3.11.5. Quality policy 3.11.6. Organic production 3.11.7. Vertical legislation 3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 3.12.1. Food safety 3.12.2. Veterinary medicine 3.12.3. Zootechnics 3.12.4. Phytosanitary policy 3.12.5. Plant production 3.13. FISHERIES 3.14. TRANSPORT POLICY 3.14.1. Road transport 3.14.2. Railway transport 3.14.3. Combined transport 3.14.4. Inland navigation 3.14.5. Air transport 3.14.6. Maritime transport 3.15. ENERGY 3.16. TAXATION 3.18. STATISTICS 3.19. SOCIAL POLICY AND EMPLOYMENT 3.19.1. Labour legislation 3.19.2. Health and safety at work 3.19.3. Social dialogue 3.20. ENTERPRISE AND INDUSTRIAL POLICY 3.20.2. Industrial policy 3.21. TRANS-EUROPEAN NETWORKS 3.21.1. Transport networks 3.22. REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS

552 552 554 555 556 556 557 558 559 561 563 564 566 566 567 575 576 583 585 588 588 589 590 591 592 594 596 598 600 602 602 604 604 605 605 606 606 607

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Industrial pollution control and risk management 3. FINANCIAL AND BUDGETARY PROVISIONS 609 609 611 612 612 613 614 617 620 621 623 624 624 625 625 626 627 628 630 631 632 634 635 636 636 638 640 641 642 642 643 644 ANNEX B TABLE OF PLANNED BUDGET FUNDS PLANNED FOREIGN ASSISTANCE FUNDS 647 673 15 . JUSTICE.25. Water management 3.1.27.10.6.2.3.9. Border management and Schengen 3.32.26. Education and training 3. Migration 3. Noise protection 3.5. EXTERNAL RELATIONS 3.30.23.28.27.31. FINANCIAL SUPERVISION 3.2.27.24. Horizontal legislation 3. EDUCATION AND CULTURE 3. Judicial reform 3.28. Consumer protection 3.1.27. SECURITY AND DEFENCE POLICY 3.3.28. FREEDOM AND SECURITY 3.8.4.33. Judicial co-operation in criminal and civil matters 3.27.27. Anti-corruption measures 3. SCIENCE AND RESEARCH 3.24.27.26.24.7.1.23. JUDICIARY AND FUNDAMENTAL RIGHTS 3. Air quality 3. Forestry 3. FOREIGN. CUSTOMS UNION 3. Chemicals and GMO 3.24.29. Co-operation in the area of drugs 3.27.4. Arms control 3. Nature protection 3.27. CONSUMER AND HEALTH PROTECTION 3.27.2. ENVIRONMENT 3. Health protection 3. Visas 3.23.24.3. Police co-operation and the fight against organised crime 3. Waste management 3.1.24.TABLE OF CONTENTS 3.31.24.7.2.8.

2009 16 .NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .

LIST OF ABBREVIATIONS .

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 18 .

Fisheries and Rural Development Ministry of the Interior Ministry of Foreign Affairs and European Integration Ministry of Environmental Protection.LIST OF ABBREVIATIONS LIST OF ABBREVIATIONS MINISTRIES MF MF − TA MF − CA MF − FEI MF − FP MELE MC MSTI MT MFVAIS MD MJ MRDFWM MAFRD MI MFAEI MEPPPC MSES MHSW Ministry of Finance Ministry of Finance − Tax Administration Ministry of Finance − Customs Administration Ministry of Finance − Foreign Exchange Inspectorate Ministry of Finance − Financial Police Ministry of the Economy. Labour and Entrepreneurship Ministry of Culture Ministry of the Sea. Physical Planning and Construction Ministry of Science. Forestry and Water Management Ministry of Agriculture. Education and Sports Ministry of Health and Social Welfare STATE ADMINISTRATION ORGANISATIONS SGD NPRD MHSC SI - State Geodetic Directorate National Protection and Rescue Directorate Meteorological and Hydrographic Service of Croatia State Inspectorate 19 . Veterans’ Affairs and Intergenerational Solidarity Ministry of Defence Ministry of Justice Ministry of Regional Development. Transport and Infrastructure Ministry of Tourism Ministry of the Family.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 SIPO DZM SONS CBS SIRP - State Intellectual Property Office State Office for Metrology State Office for Nuclear Safety Central Bureau of Statistics State Institute for Radiation Protection CENTRAL STATE OFFICES CSOPA CSAOeC CSAOSPM CODEF - Central State Office for Public Administration Central State Office for e-Croatia Central State Office for State Property Management Central Office for Development Strategy and Co-ordination of EU Funds AGENCIES CGREA CCA PDPA AEIP HAGENA HAMAG HANFA HZMO SAO CARNet HAA HZN CEA CDA CERA - Croatian Government Real Estate Agency Croatian Competition Agency Personal Data Protection Agency Agency for Export and Investment Promotion Croatian Agency for the Supervision of Pension Funds Croatian Agency for Small Business Croatian Financial Services Supervisory Agency Croatian Pension Insurance Institute State Audit Office Croatian Academic and Research Network Croatian Accreditation Agency Croatian Standards Institute Croatian Environment Agency Central Depository Agency Croatian Energy Regulatory Agency 20 .

LIST OF ABBREVIATIONS SOA FINA HAKOM APPP - Central Intelligence Agency Financial Agency Croatian Post and Electronic Communications Agency Agency for Public Private Partnerships GENERAL CBA CCE CEA CPF HROK TAIEX ICTY CP GRC SAO USKOK SCSPPP HBOR CRS CSA OHR OCNDA EC EMU EP EU EC EC CNB SSC - Croatian Bar Association Croatian Chamber of Economy Croatian Employers’ Association Croatian Privatisation Fund Croatian Registry of Credit Obligations Technical Assistance Information Exchange Office International Criminal Tribunal for the Former Yugoslavia Croatian Parliament Government of the Republic of Croatia State Attorney’s Office Office for the Suppression of Corruption and Organised Crime State Commission for the Supervision of Public Procurement Procedures Croatian Bank for Reconstruction and Development Croatian Register of Shipping Croatian State Archives Office for Human Rights Office for Combating Narcotic Drugs Abuse European Commission Economic and Monetary Union European Parliament European Union European Council European Community Croatian National Bank Stabilisation and Association Committee 21 .

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 SAP SAA UN COE SAC CFSP ESDP WTO CB - Stabilisation and Association Process Stabilisation and Association Agreement United Nations Council of Europe Stabilisation and Association Council Common Foreign and Security Policy of the EU European Security and Defence Policy World Trade Organisation Closing benchmark 22 .

INTRODUCTION .

negotiations were opened on four chapters. the Republic of Croatia officially submitted to the EU five negotiating positions. in the period between 1 January and 30 June 2008. is working intensively to swiftly and efficiently meet all the additional benchmarks that have been set. the Republic of Croatia submitted to EU bodies the documents relevant to meeting the benchmarks for closing negotiations on two chapters. the Republic of Croatia has submitted negotiating positions for 31 chapters. of which four have been provisionally closed. in 2008 the Republic of Croatia drew up and submitted 12 negotiating positions. In the case of all other chapters for which benchmarks had been set. from 1 July to 31 December 2008. The Government of the Republic of Croatia. 24 . opened negotiations on 21. as did the political dialogue conducted through the institutional framework established by the SAA.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . of a total of 33 chapters on which negotiations are conducted with EU representatives. including significant steps towards further alignment with EU standards in all areas. The second meeting of the Stabilisation and Association Council was held in Luxembourg on 28 April. negotiations were opened on one chapter. During the reporting period. with the goal of closing the negotiating chapters as soon as possible.2009 INTRODUCTION RELATIONS BETWEEN THE REPUBLIC OF CROATIA AND THE EU During the Slovenian Presidency of the Council of the European Union (EU). Meetings were also held by all seven Subcommittees of the SAA. The achievements of the Republic of Croatia in meeting the benchmarks were also confirmed through an intensive verification procedure by EU bodies. In all. From the beginning of negotiations in October 2005. as far as Croatia was concerned. In the second half of 2008. During the first half of 2008. The Republic of Croatia officially submitted seven negotiating positions to the EU. was the announcement by the EC of an indicative and conditional timetable for the technical conclusion of the negotiations between the Republic of Croatia and the EU in 2009. further progress was made in the accession negotiations which led to an intensification of the entire accession process. Negotiations were opened on five chapters. The main feature of France’s Presidency. and provisionally closed on two. The Republic of Croatia submitted to EU bodies the relevant documents to enable all the remaining benchmarks to be met for the opening of negotiating chapters. Diplomatic activities directed towards EU institutions and Member States have been intensified to more thoroughly and promptly communicate the expectations of Croatia concerning negotiations and the progress achieved during this process. Relevant documents were officially submitted to the EU in order to meet the benchmarks required for closing negotiations on an additional six chapters. while the Stabilisation and Association Committee met in Zagreb on 10 December. A high degree of political consensus still exists in the Republic of Croatia on achieving the common strategic goal of the Republic of Croatia − full membership of the EU. results were achieved and progress made in meeting these benchmarks. while two chapters were provisionally closed. in close co-operation with expert bodies of the EU. In addition. Activities related to meeting the obligations laid down by the Stabilisation and Association Agreement continued in 2008.

It should be able to cope with market pressures within the EU in the medium term. with an emphasis on the year 2009. Along with its regular Progress Report. this year’s Progress Report recognises the efforts made by the Republic of Croatia and emphasises how the preparations for the fulfilment of the obligations arising from membership are decidedly entering their final phase. following the decision of the European Council of 17 and 18 June 2004 by which the Republic of Croatia was granted the status of candidate country for EU accession. the assessment of Croatia’s achievements contained in the European Commission’s Progress Report. the EC has noted Croatia’s progress in all areas. assessments of its co-operation with the EC Delegation to the Republic of Croatia. it should be emphasised that the National Programme reflects all the results of the negotiation process and encompasses all activities which must be undertaken in order to meet the benchmarks set for closing the chapters. the European Commission judged that. and refugee return. competition. including the Croatian Government Programme for the Term of Office 2008-2011. This is the fourth such report on Croatia. In terms of economic criteria. Concerning the ability to assume obligations arising from membership. Concerning the ability to assume other obligations arising from membership. although continued and further efforts are needed in areas such as the reform of the justice system and public administration. the results of negotiations with the EU so far. the fight against corruption. the SAA. Considering that success in meeting the obligations arising from the SAA is extremely important for Croatia’s progress in negotiations with the EU and that all obligations must be fully met before the negotiations on individual chapters are provisionally closed. the European Commission published the Croatia 2008 Progress Report. efforts are needed to further align legislation and to strengthen administrative capacity. the environment. provided that it continues with determination to implement its comprehensive reform programme. agriculture and rural development. etc. the Republic of Croatia had made improvements. In November 2008. as well as its capacity to assume the obligations arising from membership. the European Commission also adopted a strategic document entitled “Enlargement Strategy and Main Challenges 2008-2009”. As far as political criteria are concerned. The Report includes the progress achieved by the Republic of Croatia in meeting political and economic membership criteria. Finally. in general. the EC noted that Croatia is a functioning market economy. The EC also points out the need to invest further efforts in the areas of the justice system and fundamental human rights. the National Programme reflects Croatia’s readiness to reach its priority goals in the process of approaching the EU by implementing concrete measures. The Commission concluded that the Republic of Croatia would be in a position to assume the remaining obligations of membership in the medium term. Thus. provided that significant efforts are made to align its legislation with the acquis. concerning the criteria of adopting the acquis. thus demonstrating to the region of SE Europe as a whole that the perspective of EU membership is a reality. and to ensure its application and implementation. the protection of minorities. whereas it identified as the main challenges in 2009 the upgrading of the progress achieved and the speeding up of reforms in specific areas. which includes an indicative timetable (the so-called road map) for the technical conclusion of accession negotiations with the Republic of Croatia in 2009. in general. The European Commission assessed that the Republic of Croatia in 2008 continued to progress in terms of political and economic criteria. while. Croatia welcomes this statement included in the strategic enlargement document that Croatia’s accession negotiations have entered their decisive phase. and noted that the dynamics and continuity had been maintained throughout the year. measures for the implementation of the SAA are a component part of this document and are one of the key priorities in implementing the National Programme for the Accession of the Republic of Croatia to the European Union in the coming year. 25 . and regarding the implementation of the SAA. the Accession Partnership of November 2007.INTRODUCTION SETTING KEY PRIORITIES FOR 2009 The key priorities set out in the National Programme are defined on the basis of a number of sources.

Special attention has been given to analysing the implementation of priorities arising from the Accession Partnership. They concern the drafting and adoption of strategies. Economic criteria Once again this year. and regional co-operation. adopted on 3 August 2006. among other things.) related to the accession process. plans and programmes and their implementation. training.2009 STRUCTURE OF THE NATIONAL PROGRAMME The NPAEU 2009 consists of the following chapters: Political criteria The Political Criteria chapter defines the priorities based on the conclusions of the Copenhagen European Council and encompasses. the protection of human rights and minority rights. and budget allocations for its efficient implementation. and in the Strategic Development Framework 2006-2013.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .. and a review of planned institutional measures (establishment of new institutions and working bodies). procurement of technical equipment. Ability to assume the obligations of EU membership This chapter. Legislative measures include all primary and subordinate legislation whose adoption is planned for 2009. in accordance with the acquis. At the same time. democracy and the rule of law. They also include measures aimed at strengthening administrative capacities (recruitment of new employees. the legal and institutional framework of individual chapters of the acquis. 26 . The description of activities includes legislative and implementing measures related to the process of the accession of the Republic of Croatia to the EU in specific chapters.. the reform of the justice system and the fight against corruption. it gives an overview of the progress achieved in the relations between the Republic of Croatia and the European Union. Implementing measures include all non-legislative measures related to the process of adjustment to the EU system. All the stated activities aimed at implementing the economic criteria for EU accession have been aligned with the priorities contained in the Pre-Accession Economic Programme 2008-2010. the implementation of the Copenhagen and Maastricht Criteria with reference to the Lisbon Strategy is again dealt with in Chapter II. to which Annex A directly refers. describes. and which are directed towards alignment with the acquis. the key priorities in aligning the legislation.

is planned in 2009 on the basis of previously adopted laws. these will be listed in Table b) Subordinate legislation adopted pursuant to previously adopted laws. etc. Annex B gives the financial perspective of all activities. Annex B consists of two tables: the Table of planned budget funds and the Table of planned foreign assistance funds. The Table of planned foreign assistance funds provides a systematic overview of current and planned foreign technical assistance. the strengthening of existing institutions. The Table of planned budget funds shows funds allocated in line with the 33 subchapters within Chapter 3 of the National Programme: “Ability to assume the obligations of membership”.. Annex A includes all obligations arising from the closing benchmarks. in other words those related to the meeting of accession criteria. needed to meet the criteria for Croatia’s membership of the EU. projects. and loans granted by international financial institutions (assistance. If the adoption of certain subordinate legislation. The table of implementation measures defines their basic categories. strengthening administrative capacities. programmes. other multilateral sources of assistance. Implementation measures As last year. is marked as BCC (Benchmark for Closing the Chapter). which are described in more detail in Chapter 3 .INTRODUCTION ANNEXES TO THE 2009 NATIONAL PROGRAMME Annex A − Plan of alignment of Croatian legislation with the acquis communautaire and an overview of implementation measures for 2009 Annex A presents the measures foreseen for 2009. Concerning the overview of activities which the Republic of Croatia must perform in the course of the negotiating process. Annex A consists of two main parts: Legislative measures The tables show the legislative measures foreseen for 2009. recruitment of new staff. to achieve alignment with the acquis. etc. 27 . subordinate legislation or implementation measure. programmes. Only budget items designating activities and projects that concern the process of EU rapprochement are listed. which are elaborated in detail in Chapter 3 “Ability to assume the obligations of EU membership“. regardless of whether it is a law.“Ability to assume the obligations of EU membership“. bilateral assistance programmes received by the Republic of Croatia. Annex A contains a summary overview in the form of a table of all the implementation measures for 2009 (related to the process of Croatia’s accession to the EU). This includes programmes of assistance and co-operation with the European Union. Each individual obligation. grants and loans). such as strategies. plans. Annex B − Planned budget funds NPAEU 2009 again places major emphasis on determining the budget funds necessary for the implementation of all the planned activities needed to meet the criteria for Croatia’s membership of the EU. the establishment of new institutions. the establishment of new institutions. Table a) Laws and related subordinate legislation lists the laws and subordinate regulations whose adoption is planned for 2009 to achieve alignment with the acquis. training. investment projects and programmes in the Republic of Croatia which support the implementation of the National Programme for the Accession of the Republic of Croatia to the European Union.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

MONITORING AND IMPLEMENTATION OF THE NATIONAL PROGRAMME
The implementation of the National Programme is based on day-to-day co-ordination in the ministries and other state administration bodies involved in this process. The Ministry of Foreign Affairs and European Integration co-ordinates the process of Croatia’s accession to the EU not only in terms of foreign policy, but also in terms of home affairs, where it has the task of monitoring the implementation of the National Programme for the Accession of the Republic of Croatia to the European Union with a view to intensifying the activities of all institutions involved in the process of Croatia’s rapprochement to the EU, while the status of the implementation of laws and subordinate legislation encompassed by the National Programme is discussed on a weekly basis as the first item on the agenda of all the working bodies of the Government of the Republic of Croatia. In 2008, human resources in the sector of the ministry in charge of activities connected with the process of Croatia’s rapprochement to the EU were strengthened, as the scope of work on the alignment of the legislation and fulfilment of the obligations arising from the negotiating process intensified significantly. A system is now in place to monitor implementation through day-to-day contacts with the line ministries in order to avoid administrative obstacles which might jeopardise the pace of the process of the Republic of Croatia’s accession to the EU.

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I. POLITICAL CRITERIA

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I. POLITICAL CRITERIA

I. POLITICAL CRITERIA

1.1. INTRODUCTION
Alongside the negotiation process, the Government of the Republic of Croatia has continued to work intensively towards fulfilling the political criteria. The progress achieved was recognised in the Progress Report for 2008, published by the European Commission (EC) at the beginning of November. In line with the recommendations made by the EC, additional efforts will be invested in the course of 2009 in improving all areas covered by the political criteria, taking into particular account the speed and quality of the processes involved in reforming the state administration, the judiciary, and the effective fight against corruption. In addition, 2009 will be devoted to the completion of the Programme of providing housing care to former tenancy right holders. The given areas, along with continued work on the fulfilment of all other political criteria, will represent a priority for the Republic of Croatia in 2009.

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

1.2. DEMOCRACY AND THE RULE OF LAW
Electoral legislation reform Activities pertaining to the electoral legislation were completed in the course of 2007.

1.2.1. Judicial Reform
A) ACHIEVEMENTS IN 2008

Legislative activities With a view to further improvements in the implementation of the judicial reform, on 25 June 2008 the revised Action Plan of the Judicial Reform Strategy was adopted. The Action Plan is seen as a living document which is revised once a year, thus ensuring high quality supervision of the implementation of and adjustments to the measures needed for the judicial reform. The Action Plan includes specific measures, competent authorities, deadlines, and the funds required for their implementation. The measures focus on strengthening impartiality, independence, efficiency and professionalism in the judiciary. The Act on Amendments to the Civil Procedure Act (OG 84/08) was passed on 2 July 2008, introducing numerous procedural innovations and thus contributing to the prevention of the stalling of civil proceedings and to the further unburdening of the workload of the courts. The most significant amendments relate to the practice of summons delivery, and raising the limit of the value of the claim in small claims procedures. In addition, the amendments to the Act provide for a wider range of actions of the second-instance court in appeal proceedings and introduce measures to avoid the unnecessary annulment of court judgments. The amendments also expand the grounds for review and regulate the possibility of pronouncing an extraordinary review. The Act on Amendments to the Execution Act (OG 67/08) further accelerates the execution procedure and facilitates the operation of execution courts in such proceedings. A working group for drawing up a Strategic Study for More Effective Execution on Movables and the Introduction of Bailiffs in Execution Proceedings has been formed. It will work on improvements to the institute of execution in the Republic of Croatia in co-operation with legal experts in the field of enforcement law from the Republic of France. The Act on Amendments to the Courts Act was passed on 19 September 2008 (OG 113/08) with a view to further improving the procedure of appointing judges and to ensuring the uniform work of judicial councils. The Act prescribes the obligation of adopting rules of procedure for judicial councils in the procedure for appointing judges, which are to be drawn up on the basis of the Guidelines for the Appointment and Advancement of Judges (Guidelines to be completed by the end of 2008). As part of the project of modernising and strengthening the efficiency of the work of the Administrative Court of the Republic of Croatia, conducted in co-operation with German, Austrian and Croatian experts, it was decided in September 2008 to set up a working group for the preparation of a Proposal of the new Administrative Disputes Act. The Free Legal Aid Act (OG 62/08), which was passed on 16 May 2008, upgrades the current system of legal aid by aligning it with the acquis communautaire. The Act prescribes the forms of legal aid and the conditions that the beneficiary must meet to have it approved; it defines the providers of such legal aid and the methods of its operation and financing. In accordance with the Act, on 17 July 2008 the Ordinance on the method of maintaining the register of associations authorised to provide free legal aid was adopted. On 26 September 2008, the Act on Amendments to the Act on the Legal Profession (OG 117/08) was passed. In accordance with the amended Act, attorneys from EU Member States will be able to practise in the Republic of Croatia. The provisions of the Act relating to the status of foreign attorneys in the Republic of Croatia will apply only after the Republic of Croatia becomes a full

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member of the European Union. The amendments to the Act prescribe that remuneration for the work of attorneys and the related tariff is adopted by the Croatian Bar Association, subject to the approval of the Minister of Justice. Court Network Rationalisation The Act on the Jurisdictions and Seats of Courts (OG 85/08) was passed on 9 July 2008. With this Act, the number of municipal courts is reduced from 108 to 67. The rationalisation of the court network will proceed in several phases, with 31 December 2019 as the final deadline for its full implementation. The Ordinance on setting the deadlines for providing working conditions, premises, technical and other conditions in the seats of the courts created as a result of mergers entered into force on 9 October 2008. Within the Sector for Judicial Administration (operating within the Directorate for the Organisation and Human Resources of the Ministry of Justice), the Department for the Rationalisation of the Network of Courts and State Attorney Offices has been set up to co-ordinate the process of the rationalisation of the court network. As the new network of municipal courts is linked to the network of state attorney offices, a Proposal of the Act on the Jurisdictions and Seats of State Attorney Offices was submitted for parliamentary procedure in September 2008, and should be passed by the end of 2008. By the end of 2008, the Act on the Jurisdictions and Seats of Misdemeanour Courts will also be submitted for parliamentary procedure. Progress in reducing the total number of unresolved cases at courts On 30 September 2008, the total number of unresolved cases was 941,827, where 129,163 were cases “older than three years” (123,528 civil and 5,635 criminal cases). Measures of the Supreme Court to reduce the backlog of cases The Supreme Court systematically monitors the resolving of claims for the protection of the right to a trial within a reasonable time at all county courts and regularly draws up statistical reports. In 2008, a total of 5,031 new lawsuits were filed following claims for the protection of the right to a trial within a reasonable time (of that number, 3,566 were civil cases). From the beginning of the year until 30 September 2008, a total of 3,787 such cases were resolved (910 were dismissed, 399 were rejected, and 2,487 were found to be well-founded). Compensation awarded for these well-founded claims for the protection of the right to a trial within a reasonable time amounted to EUR 3,673,012. Until 30 September 2008, the Supreme Court delegated 7,794 cases to courts with a lighter workload (of that number, 6,182 civil cases and 674 criminal cases). From the beginning of the year until 30 September 2008, 40% of civil and 23% of criminal cases assigned to such courts with a lighter workload were resolved. By 30 June 2008, 53.9% of civil and 34.9% of the assigned criminal cases had been resolved. Courts from which the largest number of cases were delegated to other courts are the Municipal Civil Court in Zagreb (3,023 cases delegated to other courts), the County Court in Split (1,550 cases delegated), the Commercial Court in Zagreb (847 cases delegated), and the Municipal Criminal Court in Zagreb (550 cases delegated). Efficiency of the High Misdemeanour Court In the period from January to July 2008, there was an 18% decline in the number of cases received (35,277) in comparison to the period from January to July 2007, when 41,736 cases were received. In the same period of 2008, a total of 32,616 cases were resolved, while the same period in 2007 saw the resolution of 24,498 cases. The reason for this decrease is the passing of the new Misdemeanours Act, which entered into force on 1 January 2008.

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On 1 September 2008, the High Misdemeanour Court began to implement further measures in the Action Plan for Resolving Old Misdemeanour Cases. It is expected that through the consistent implementation of the said measures, by the end of 2011 there will be a satisfactory level of promptness in the work of the High Misdemeanour Court of the Republic of Croatia. Development of a system of alternative dispute resolution The Act on Amendments to the Civil Procedure Act, which was passed in July 2008, allows for disputes to be resolved by mediation for the entire duration of a civil procedure. The PHARE 2005 project entitled “Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement” began in February 2008. The Agreement on Co-operation between the Ministry of Justice of the Republic of Croatia and the Croatian Conciliation Association was signed in July 2008. A great stride forward in the development of alternative dispute resolution methods was taken through the establishment of regional mediation centres with the Commercial Courts in Osijek, Varaždin, Bjelovar, Rijeka and Pazin and through the implementation of pilot projects at the said courts during May and June 2008. In May 2008, a pilot project of mediation began at the Municipal Court in Karlovac. Strengthening institutional and administrative capacities Following the adoption of the Regulation on the internal organisation of the Ministry of Justice (OG 77/08) on 30 June 2008, the Directorate for Strategic Development was formed. Its task is to monitor and further direct the process of judicial reform and the fight against corruption. In the said Directorate, the Sector for the Development of the Judiciary was also formed with the task of strengthening the capacity necessary to supervise and implement the judicial reform. In addition, the new Directorate for the European Union and Human Rights was formed with the task of ensuring the best and most professional co-ordination possible with respect to all activities connected to negotiations with the EU in the area of the judiciary and home affairs. Currently, the process of strengthening the human resources of other organisational units of the Ministry of Justice is underway. Within the Sector for Judicial Administration (which is active within the Directorate for Organisation and Human Resources of the Ministry of Justice), there is the Department for the Rationalisation of the Network of Courts and State Attorney Offices, whose task will be to perform the job of rationalising the court network. Currently, the Judicial Inspection Service is in the process of recruiting further staff, which should be completed in the course of 2009. Introduction of modern information technologies in the judiciary system − development and introduction of the Integrated Case Management System − ICMS (e-FILE)

Changing the organisational conditions for the functioning of the IT system On the basis of the Regulation on the internal organisation of the Ministry of Justice of 30 June 2008, with a view to improving efficiency, the Sector for IT was transformed into the Directorate for IT. Along with its unit in the Ministry itself, the Directorate has regional units in Osijek, Varaždin, Rijeka, Split, Slavonski Brod and Zadar. This will ensure better utilisation of IT staff, since they will deal only with IT affairs and, regardless of the court to which they are assigned, act as support for all courts within the area of responsibility of the regional unit concerned. Pilot online registration of companies through notaries public and hitro.hr offices The development of the pilot project for the online registration of companies through public notaries and hitro.hr offices in the jurisdiction of the Commercial Court in Varaždin has now been completed, and by the end of 2008 online registration should include the

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areas of Osijek, Split and Zadar. In the course of 2009, online registration of companies through public notaries and hitro.hr offices will also spread to other commercial courts in the Republic of Croatia. e-FILE The Commercial Court in Split and the Municipal Court in Pula have been producing e-Files since May 2007. The Commercial Court in Zagreb has been producing them from July 2008, and the Municipal Criminal Court in Zagreb as of November 2008. The Municipal Civil Court in Zagreb is still being tested and will begin producing eFiles by the end of 2008. Functional adjustments to ICMS (through the e-FILE system) in the County Court in Pula, the County Court in Zagreb, the High Commercial Court in Zagreb and the Supreme Court of the Republic of Croatia were concluded in 2008. Donations made by the Kingdom of Norway and the USA were used to develop a module entitled ICMS for State Attorney Offices − “case tracking system” for the criminal and civil department. At the end of 2008, testing in the selected two pilot municipal and two pilot county state attorney offices will begin. The application for the monitoring of court statistics in the Ministry of Justice (e-Statistics) was upgraded through the central record of judicial staff (personal data) for all courts and state attorney offices. This tool will ensure IT support in the implementation of the rationalisation of the court network in the Republic of Croatia and will enable access to case data for courts which are to be merged. All data and experience are used to develop the statistical component of ICMS. The CARDS 2004 project entitled “Improving Court and Case Management at the High Misdemeanour Court and Selected Misdemeanour Courts” is underway with a view to modernising the operation of misdemeanour courts. One of the project activities is the proposed adoption of appropriate legislation to facilitate such modernisation. In November 2008, the Project produced functional specifications for the ICMS module for misdemeanour courts. The project promoting mediation in dispute resolution is underway, financed through the PHARE 2005 programme in places where mediation centres − the municipal courts in Zagreb, Osijek and Zadar, the Chamber of Economy, the Chamber of Trades and Crafts, the Croatian Conciliation Association, and the Croatian Employers’ Association − are equipped with the necessary IT equipment. Requests for funding from the PHARE 2006 programme have been filed for two projects: expansion/implementation of the ICMS system at 60 selected courts (Support for Court Administration and Case Management Improvement), and extending the case law system into the national document and record management system, for the purpose of publishing judicial decisions from all levels of the court system and linking them to the ICMS system (Harmonisation and Publication of Case Law). Contracts are expected to be signed by the end of November 2008. Computerisation of land registers 98.95% of land registry files were digitised at all municipal courts in the Republic of Croatia; 48.10% of digital land registry files in the area of all courts in the Republic of Croatia were verified; land registry data are transparent, that is, accessible to all users over the Internet, as is the e-registry of land registry departments; the time needed for entry in the land register dropped from an average of 800 days to 73 days (in the period from 2004 to 2008); the time needed for mortgage registration dropped from an average of 23 days to 7 days in the Republic of Croatia; land registry certificates are issued on the same day as requested.

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Judicial Academy

Institutional development of the Judicial Academy

The Advisory Council and the Programme Council At the meeting of the Judicial Academy Advisory Council of 11 September 2008, which was the third to be held in 2008, the Council adopted the Multi-annual Strategy of Professional Training of the Judicial Academy (JA). Measures foreseen in the Strategy are mostly already being implemented. The JA has prepared proposals of the rules of procedure for the Advisory and Programme Council, and has proposed members of the working group responsible for the further development of the curriculum for professional development in the field of human rights and EU law. By the end of 2009, the JA will also prepare a Proposal of the Ordinance on access to professional training programmes. The Judicial Academy Programme Council meets at least four times a year. During the two working meetings held in June and September 2008, preparations were made for the drawing-up of the curriculum of the Academy for 2009. Regional centres The work of regional centres and their independent participation in the process of professional development has been strengthened. The framework rules of the Academy pertaining to the position of co-ordinators and their competence in the regional centres will soon be adopted. Human resources and the budget In 2008, a director of the Judicial Academy was appointed and the administrative capacities of the JA were further strengthened. With a view to further strengthening the Judicial Academy, the 2008 JA budget was increased to EUR 721,126, while the proposed 2009 JA budget is EUR 1,136,197. Reform of the system of traineeship and initial training On 9 July 2008, the new Act on Trainees in Judicial Bodies and the Judicial Exam (OG 84/08) was passed, and will enter into force on 1 January 2009. The new act introduces uniform, transparent and objective criteria for the selection of trainees. The main role in the new system of initial training will be played by the Judicial Academy, which will conduct two-month theoretical training. Implementation of the PHARE 2005 project entitled “Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys”, which provides for expert and organisational support to the reform of the system of traineeship and initial training, began in February 2008. Co-operation with the faculties of law, the Croatian Bar Association and the Academy of Public Notaries The Judicial Academy has made arrangements to sign agreements on co-operation with all the faculties of law in the Republic of Croatia, although informal co-operation is already in place and is being developed through the participation of university research staff in the design of educational materials, as well as in conferences organised by the Judicial Academy. In October, the Academy received proposals for framework agreements of co-operation with the Croatian Bar Association and the Academy of Public Notaries.

International co-operation European Judicial Training Network (EJTN)

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In 2008, for the second year in a row, the JA participated in the Exchange Programme for Judicial Officials organised by this Network. The JA’s Director takes an active part in the meetings of the General Assembly of the EJTN. Academy of European Law (ERA) The JA regularly informs members of its target groups about ERA activities and provides financial support so that they may attend ERA seminars and conferences. The Judicial Academy is interested in signing the Official Agreement of Accession to the Academy of European Law, and has included the respective expenses (EUR 50,000 in three annual instalments) in its budget proposal for the next three years. Budget of the Ministry of Justice The budget of the Ministry of Justice in 2008 amounted to EUR 370,579,525. For 2009, the proposed budget of the Ministry is EUR 377,934,983.

B) KEY PRIORITIES

Legislative activities In 2009, the Proposal of the Act on Administrative Disputes will be submitted for parliamentary procedure. By the end of the second quarter of 2009, amendments to the following will have been passed: the Courts Act; the Act on the State Judiciary Council; the Act on the State Attorney’s Office; the Act on Trainees in Judicial Bodies and the Judicial Exam; the Public Notaries Act; the Act on the Legal Profession.

Rationalisation of the network of courts and state attorney offices With a view to implementing the Act on the Jurisdictions and Seats of Misdemeanour Courts, the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of misdemeanour courts. Pursuant to the Proposal of the Act on the Jurisdictions and Seats of State Attorney Offices, in 2009 the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of municipal state attorney offices and establish conditions for their work. Drawing up a strategic study for more effective execution on movables and the introduction of bailiffs In 2009, based on the strategic study for more effective execution on movables and the introduction of bailiffs, which will be adopted by the Ministry of Justice by the end of 2008 (in co-operation with legal experts in the field of enforcement law from the Republic of France), work will be conducted on thoroughly improving the institute of execution proceedings in the Republic of Croatia.

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Development of a system of alternative dispute resolution The Action Plan of the Judicial Reform Strategy foresees measures to further develop mediation as an important segment in the modernisation and improvement of the efficiency of the Croatian judicial system. The measures to be conducted through the PHARE 2005 project entitled “Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement” are the following: to draw up draft amendments to the Mediation Act, to draft a Proposal of the Code of Ethics for Mediators, to establish standard provisions on mediation for commercial and civil contracts, and the like, to be used by mediation centres and the Croatian Conciliation Association contracting parties and professional organisations; to set up a structure and system for mediation both inside and outside the court, and to put into operation pilot mediation centres in courts, achieving the full operability of the regional centres for mediation outside the court with a register of mediators; to develop and implement a plan and programme of training for mediators and trainers, to conduct basic, advanced and informative seminars, to compile folders with all materials for training and with other relevant materials and to make them available to all participants; to prepare and share information and publications on mediation with the public.

The eFILE Project It is planned that by the end of December 2008, all courts mentioned in relation to eFILE will be running in this regard. Thus, on 1 January 2009, 9 courts from all levels will function in the eFILE system. In 2009 and 2010, as part of the PHARE 2006 project entitled “Support to Court Administration and Case Management Improvement − ICMS”, the e-FILE system will be introduced at 60 additional courts (all commercial, all county, and larger municipal courts). The project, amongst other things, covers the training of all users, the drawing up of a matrix for each court and the installation of the application. The schedule of connecting courts in 2009 will depend on the contractual obligations of the consultant with whom the project is agreed, but it can be presumed that 15 courts on the list will be connected to the system. In the course of 2009, the Ministry of Justice plans to use its own funds and efforts to connect an additional 5 municipal courts which are not on the list of the PHARE project. In 2009, 20 courts will be in the e-FILE system. Regarding the plan for 2010, according to the PHARE 2006 project, it is foreseen that e-FILE will be introduced at 45 more courts, and the Ministry of Justice will ensure the introduction of e-FILE at 5 more municipal courts, so that the total number of courts to join the e-FILE system in 2010 will be 50. Thus, at the end of 2010, there will be 79 courts connected to e-FILE: the Supreme Court, the High Commercial Court, all county courts (22), all 13 commercial courts, and 42 municipal courts. Plan of work of the Judicial Academy for 2009 To provide for the urgent recruitment of new staff for the Academy according to the systematisation of planned work posts. To make all regional centres of the Judicial Academy fully functional: to acquire IT equipment and literature for the Varaždin Regional Centre; to buy new books for the library fund in the Judicial Academy and for the regional centres; to intensify the work of libraries in the centres and the development of infrastructure to enable access to the Internet in the centres; and to ensure the availability of data concerning the library fund and publications in electronic format. To determine the duties and tasks of the co-ordinator for professional training in the regional centres, and for judges and state attorneys, and the manner of providing remuneration. To create conditions by the end of 2009 for the drawing up of a framework three-year programme of work of the Judicial Academy.

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To set up a system of initial training for trainee judges and state attorneys, and advisors: training of mentors for trainee judges and state attorneys, implementation of a pilot project within PHARE 2005 “Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys” and completion of this project.

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To improve the plan of professional training by setting out modules targeted specifically at judges and state attorneys with up to 5 years of service (standard programmes).

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To intensify the activities of professional training in the field of EU law and international human rights law. To develop and implement training programmes for court administration and for the management of state attorney offices. To intensify co-operation with the faculties of law, the Croatian Bar Association and the Academy of Public Notaries under the agreements on co-operation signed in 2008.

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To proceed with foreign language courses for judges and state attorneys. To continue to train workshop leaders in the field of teaching and communication through workshops and individual expert counselling, with special emphasis on the more intensive involvement of state attorneys and judges of the Supreme Court of the Republic of Croatia.

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To continue to participate in the work of the Lisbon Network and the European Judicial Training Network. To develop bilateral co-operation with partner institutions in the European Union and the region To further improve the website of the Judicial Academy and the visual concept of the training materials of the Judicial Academy by introducing a standard form for training packages for workshop leaders and participants.

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To develop the information-documentation activity. To introduce electronic case management in the Judicial Academy.

School for judges and state attorneys Pursuant to the Strategy setting out its structure, the School for Judges and State Attorneys will be established so that the best and the most appropriate candidates for judicial and state attorney duty may be selected based on objective and transparent criteria for admission to the profession.

1.2.2. Anti-corruption measures
With a view to achieving further progress in the suppression of corruption, in June 2008 the Republic of Croatia established a new strategic framework for anti-corruption activities. On 19 June 2008, the Croatian Parliament adopted the Anti-corruption Strategy, after which the Government of the Republic of Croatia, on 25 June 2008, adopted the Action Plan of the Strategy. Within each of the areas of action, the Action Plan defines in detail anti-corruption measures, competent authorities, deadlines, and funds required for implementation. The goals of the anti-corruption policy, pursuant to the Strategy, will be implemented through active measures aimed at: 1) strengthening the legal and institutional framework; 2) preventing corruption; 3) criminal prosecution and sanctioning of corruption; 4) international co-operation; 5) raising public awareness of the harmfulness of corruption. Through concerted action in all areas, the intention is to fully affirm the principle of a zero-tolerance approach to corruption. Representatives of civil society were actively involved in drawing up proposals for strategic documents by participating in a round table conference on the topic “Co-operating towards an Efficient Action Plan of the Anti-Corruption Strategy” held on 13 May

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2008, organised by the Government Office for Co-operation with NGOs, the Ministry of Justice and the Council for Civil Society Development. A) ACHIEVEMENTS IN 2008

Legal framework Amendments have been initiated with the goal of strengthening the legal framework of the so-called anti-mafia action. The Final Proposal of the Criminal Procedure Act was submitted for parliamentary procedure in November 2008. In relation to anticorruption, reform of the preliminary procedure, the introduction of new forms of swifter procedure and the improvement of procedural rules governing measures for efficient action should be highlighted. In addition, the system of special investigation activities which are of particular significance in detecting and prosecuting crimes of corruption will be improved. The successive application of particular sections of the new Criminal Procedure Act is envisaged, and provisions relating to criminal offences within the jurisdiction of USKOK will enter into force six months after the passing of the Act. Amendments to the Criminal Code are underway, through which the existing system of seizure of proceeds of crime will be extended to cover, along with the criminal offences of organised crime, the criminal offences of corruption. At the same time, amendments to the Criminal Code will strengthen the protection of injured parties and those who in good faith report corruption (whistleblowers). To this end, it has been proposed that the protection of witnesses in criminal proceedings be extended to include potential witnesses. In addition, plans are being made to further strengthen, in terms of criminal law, the position of persons with the status of protected or vulnerable witness, and the criminal-law protection would be extended to include all proceedings which are declared confidential. Institutional framework In order to strengthen the co-ordination of all bodies responsible for the implementation of anti-corruption measures, the Government of the Republic of Croatia adopted a Decision on 10 April 2008 establishing a Co-ordinating Committee for the Monitoring of the Implementation of Anti-Corruption Measures. The Co-ordinating Committee’s work is chaired by the Minister of Justice, as the national co-ordinator, with other high-ranking representatives of the implementing bodies among its members. The Co-ordinating Committee meets on a monthly basis, thus keeping abreast of the actual status of implementation, and taking the appropriate steps to ensure its effectiveness. Pursuant to the decision of the Government of the Republic of Croatia establishing the Committee, state bodies involved in the work of the Committee have designated an internal organisational unit to work on the activities of suppressing corruption, and have nominated a contact person for reporting on their implementation. Administrative and expert support for the work of the Co-ordinating Committee has been assured (June 2008) by organising and staffing the Anti-Corruption Sector within the Ministry of Justice. Supervision of the implementation process is ensured through the operation of the National Council for Monitoring the Implementation of the National Programme for the Suppression of Corruption, which was constituted at the Croatian Parliament in May 2008. With the aim of affirming pro-active approaches, the National Council has prepared draft amendments to the Decision on the National Council and the Ordinance on the work of the National Council, which should be adopted in the fourth quarter of 2008. With the aim of strengthening expert and technical support for the work of the Council, office space has been found and funds assured, while four new employees have been recruited in the expert service of the Council. Following the parliamentary elections, in July 2008 new members of the Commission for Conflict of Interest in the Exercise of Public Office at the Croatian Parliament were appointed. Following the resignation of the chairperson of the Commission, a new chairper-

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son was appointed in October 2008 from the ranks of distinguished public figures in order to ensure the uninterrupted continuation of the Commission’s work. The prevention of corruption In May 2008, the Act on Amendments to the Act on the Prevention of Conflict of Interest in Performing Public Functions was passed with a view to strengthening the supervisory role of the Commission for Conflict of Interest in the Exercise of Public Office, defining more precisely the obligations of public officials, increasing and improving the implementation of sanctions, and restricting the membership of public officials in supervisory boards. The Commission for Conflict of Interest in the Exercise of Public Office has collected from public officials new declarations of assets and the duties they carry out, and published the details on the website www.sukobinteresa.hr. In order to increase the Commission’s effectiveness, it has been strengthened in terms of expertise and administrative capacity by ensuring the necessary funds, office space and the recruitment of four new employees in its expert service. The regulatory rules concerning conflicts of interest were completed in July 2008 with the passing of the Act on Local and Regional Self-Government Officers and Employees which defines the duties of employees at local and regional levels for the purpose of preventing conflicts of interest. Pursuant to the Act on Financing Political Parties, Independent Lists and Candidates, all parliamentary parties and independent candidates submitted final accounts and financial reports for 2007 to the State Audit Office and the Ministry of Finance’s Tax Administration. Following auditing, the State Audit Office presented its Report on Supervising the Finances of Parties for 2007 to the Croatian Parliament. Following a parliamentary debate, the Report was made public. In September 2008, a Multidisciplinary Working Group was formed, with the aim of preparing a full analysis of the Act on Financing Political Parties, Independent Lists and Candidates, which will include recommendations for improving the system of financing political parties. In terms of realising the right of access to information, in April 2008 the Croatian Parliament accepted the Report on the Implementation of the Access to Information Act, which contains statistical data on requests for access to information, an analysis of requests submitted to institutions, an analysis of the supervision of the implementation of the Act, and of the activities of the Central State Office for Public Administration (CSOPA) in implementing the Act, as well as an assessment of the current status. In the area of integrity and the Civil Service Code of Conduct, amendments to the Civil Service Act (February 2008) strengthened the system of sanctions applicable for violations of official duty exhibiting characteristics of corruption. Compulsory dismissal was introduced for serious violations of official duty exhibiting characteristics of corruption. The institutional framework has been upgraded with the introduction of ethics commissioners in state administration bodies and with the appointment of co-ordinators responsible for anti-corruption policy issues in county state administration offices. Seven of the envisaged 10 civil servants in the Ethics Department have been recruited in line with the Regulation on the internal organisation of the Central State Office for Public Administration, and the recruitment procedure for a further expert assistant is currently underway. The Ethics Department of the CSOPA and various individual bodies of state administration have introduced open telephone lines and email addresses for reporting unethical or potentially corrupt conduct by civil servants, and the bodies which are to act on such reports have been designated. During 2008, the Ethics Department received 84 reports of unethical conduct by officials, of which 41 were received over the open telephone. Investigations were launched in 70 cases. In addition, continual training of civil servants has been conducted, especially in terms of modules significant for the suppression of corruption (ethical conduct, right of access to information, public procurement). During 2008, training seminars on ethics also continued as part of a basic course entitled “Suppressing Corruption”, and as part of a seminar entitled “Public Procurement” in the Centre for Professional Development and Training of Civil Servants. During 2007 and 2008, 13 seminars on ethical training were held for 233 civil servants. The legal framework for public finances has been improved with the passing of the Act on the Personal Identification Number in May 2008. This Act will enable changes in the assets of citizens and legal persons to be monitored more easily and efficiently, allowing

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In the area of public procurement. which increases transparency in the system of concessions. Within the system of legal protection in public procurement. which. passed in July 2008. In the area of the judiciary. At the same time. which lays down new powers and the manner of work of administrative inspection. a series of measures has been implemented. The Concessions Act was also passed in October 2008. This Act ensures a higher degree of independence and responsibility of the administrative inspector in the implementation of supervision. there will be further recruitment of staff for administrative inspection. which has taken over the tasks of the Office for Public Procurement of the Croatian Government. USKOK and court departments specialising exclusively in organised crime and corruption. guarantees effective legal protection. The new Administrative Inspection Act. Amendments to the Civil Procedure Act were also passed with the aim of speeding up civil proceedings. protecting them from unfair dismissal. including the National Police Office for the Suppression of Corruption and Organised Crime. Transparency in the appointment of judges was also achieved through the Act on Amendments to the Act on Courts. the Office will also enable more complex criminal investigations to be conducted in a multidisciplinary manner in co-operation with USKOK when dealing with 42 . amendments to the Public Procurement Act were passed in October 2008. the introduction of the personal identification number will facilitate the verification of data in implementing the system of declaration of assets. In this context. as envisaged in the Action Plan of the Judicial Reform Strategy for 2008. the Act on Trainees in Judicial Bodies and the Judicial Exam was passed. and improves the supervision and collection of revenues from concessions. and in taking the judicial exam. Within the institutional framework for public procurement. and by publishing brochures on legal protection in the public procurement system.2009 comparisons to be made with the declared receipts and income. on the basis on the results of analysis. contains a series of measures aimed at suppressing corruption. significantly increases the transparency of public procurement for defence purposes and strengthens anti-corruption protection in the process of entering into contracts on public procurement. depending on the needs for further recruitment. at the same time preventing corruption and nepotism when they are selected for courts or state attorney offices. amongst other things. The system for monitoring the use of budget funds has been improved with the adoption of the Ordinance on budget supervision in July 2008. was passed in May 2008. With a view to strengthening the staff of administrative inspection. and the mechanisms for performing measures ordered by the administrative inspector. The transparency of the work of the State Commission has been increased by facilitating web access to decisions passed by the State Commission. and the amount of tax paid. and. The system for protecting injured parties and those who in good faith report corruption (whistleblowers) was extended through amendments to the Act on Civil Servants (February 2008) by a number of measures for protecting civil servants who in good faith report corruption − guaranteeing them anonymity. the promptness and efficiency of proceedings have been additionally enhanced by reducing the average length of proceedings before the State Commission for Supervision of Public Procurement Procedures. Criminal prosecution and the sanctioning of corruption Measures have been taken to establish a vertical institutional line of so-called anti-mafia action. the Action Plan of the Anti-Corruption Strategy plans the recruitment of 4 new administrative inspectors in the Central State Office for Public Administration (within the current organisation). the Directorate for the Public Procurement System has been set up.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The legal framework for public-private partnerships was laid with the passing of the Act on Public-Private Partnerships in October 2008. The task of the Police Office is to monitor and study occurrences of corruption and organised crime. In order to improve the present training system for judicial trainees. The Budget Act imposed on the Republic of Croatia the obligation to guarantee the protection of the financial interests of the European Union and established the implementing institutional framework. The Act on the Prevention of Money Laundering and Financing of Terrorism. At the same time. so that the Office’s police teams can act preventively in particularly sensitive areas. The staffing of the Directorate has been completed. amendments to the Criminal Code will improve the protection of witnesses and people who in good faith report corruption (whistleblowers). and sanctioning the withdrawal or restriction of the rights of civil servants who report acts of corruption.

statistical monitoring of corruption cases. and others). POLITICAL CRITERIA high-level corruption cases. The Office is structured so as to have four branches for suppressing corruption and organised crime. Between 1 November 2007 and 1 November 2008. etc. representatives of the Republic of Croatia have been involved in international exchanges of experiences. In addition. confidentiality of files. USKOK. the Ministry of Justice and the Council for Civil Society Development. organised by the Government Office for Co-operation with NGOs. the Agreement between the Republic of Croatia and the Republic of Austria on Supplements to the European Convention on Mutual Assistance in Criminal Matters was ratified. Appeals were filed in cases which were rejected or that ended with an acquittal. 75 persons were indicted. the Court Rulebook was amended in September 2008 and a database on the status of corruption cases before the courts was set up within the Supreme Court of the Republic of Croatia. Osijek and Rijeka to deal exclusively with cases falling within the competence of USKOK. on whose orders other state bodies will act. similar agreements are being implemented between the Ministry of the Interior and USKOK. Altogether. which. a round table conference was held in May 2008 on the topic “Co-operating Towards an Efficient Action Plan for the Anti-Corruption Strategy”. GRUNTOVEC. of which 53 were convictions. changes to the Court Rulebook adopted in October 2008 provide for the formation of special court departments at county and municipal courts in Zagreb. further conditions are envisaged to guarantee the promptness and impartiality of court procedure − obligatory security checks on judges in USKOK departments. MAESTRO. The co-operation of state bodies will also be ensured through the provisions of the new Criminal Procedure Act. located in Zagreb. International co-operation The Republic of Croatia has ratified the Agreement with Eurojust (OG IT 07/08). Split. GRUNTOVEC.). which assigns the main role in carrying out investigations to the prosecutor. in the commencement of main hearings. i. With the aim of strengthening judicial co-operation with other countries in the region. precisely defined deadlines for carrying out certain actions within proceedings. etc. that is. In addition. and in the implementation of anti-corruption measures. DIJAGNOZA I and II.I. USKOK received reports on 855 persons in relation to corruption offences.e. A Department for General Programming and Strategies was formed within the Government Office for Co-operation with NGOs. Sixty-three judgments were delivered. which will help advance judicial co-operation between the Republic of Croatia and EU Member States in the fight against serious forms of international crime. With the aim of giving priority to criminal cases involving corruption offences. Raising public awareness of the harmfulness of corruption In order to involve civil society organisations in the drafting of strategic documents. or to the extension of investigations in existing cases (MAESTRO. is responsible for the implementation of the measures from the Action Plan which fall within its competence. and the Convention has been supplemented with an Additional Protocol. among other things. 43 . In order to achieve the desired speed of action at all levels. ZAGREBA»KE CESTE. The amendments to the Court Rulebook have ensured accelerated action in corruption cases. and between the Tax Administration and USKOK. Requests for investigation were filed against 226 persons. Rijeka and Osijek. leading to the detection and processing of new cases of corruption. Split. USKOK’s pro-active approach has been strengthened. Interdepartmental co-operation has been strengthened with the signing of an agreement between the General Police Directorate and USKOK on mutual exchange of information. USKOK’s activities focus on acting in a series of medium or high-level criminal corruption cases (INDEKS. PET ZVJEDICA. With their participation in regional activities (Regional Anti-Corruption Initiative) and conferences. DOZVOLA. in the creation of methods of supervision.

to establish electronic registries in land registry courts. public administration and private enterprise − an anti-corruption campaign” (Centre for the Development of Democracy. and to put into operation the Land Database and the EOP Land Book. B) KEY PRIORITIES In the course of 2009. Zagreb). and 3) “Against corruption” (Association for Democratic Society. it is planned to advance the said co-operation within IPA 2007. The process of introducing the e-FILE system in courts and the training of judges and state attorneys will continue. On the basis of an implementation analysis of the Act on Financing Political Parties that will be made by a multidisciplinary working group. the competence) concerning appeals against a decision rejecting a request for access to information. Split). the application of the Act to date will be assessed and potential amendments suggested with a view to achieving greater efficiency in its implementation. promotional leaflets will be made. in line with the set deadlines. In 2009. A brochure will also be prepared to inform the public about unacceptable forms of conduct in the performance of public office. so that the following projects were funded: 1) “An unholy alliance of political power. 2) “We want information − the public has the right to know” (Transparency International Croatia). With a view to strengthening transparency.2009 In the area of financing civil society organisation projects and programmes.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Ministry of Justice will continue to establish an effective institutional mechanism of inter-agency co-operation in the fight against corruption. With a view to raising public awareness and encouraging potential “whistleblowers” to co-operate and report corruption. an interdepartmental working group will be formed to analyse the justifiability or non-justifiability of the legal options to withhold information. and in order to strengthen the integrity of all those involved in public procurement. Training programmes will also be conducted to inform police officers about measures for the protection of “whistleblowers”. guidelines on prohibitions for public officials and the relation between the prohibitions and the criminal offences of corruption will be drafted and published. public campaigns will be organised to raise awareness of the right of access to information. a number of training programmes and projects will be conducted. In order to facilitate implementation of the system for resolving conflicts of interest. it is planned: to adopt the Act on Primary Education and the Act on Secondary Education. the website of the State Commission for Supervision of Public Procurement Procedures will be improved. it is planned to proceed with the implementation of measures set out in the Action Plan of the Anti-corruption Strategy. Passing the new Administrative Procedure Act and the Administrative Disputes Act with a view to modernising the entire system and improving both its efficiency and transparency will enable citizens to exercise their rights more easily and thus reduce the risk of corruptive conduct in the state administration In the area of public procurement. extra attention has been paid to projects topically linked with corruption. to introduce objective criteria for testing and evaluating students’ achievements through national examinations and the national matura examination. It is also planned to complete the process of verifying land registry data. 44 . The following steps will be taken to improve the right of access to information: further amendments to the Access to Information Act will regulate more precisely the procedure (and. With a view to creating conditions for the prevention of corruption at all levels of science. in particular. education and sports.

Regular annual research will focus on the way the public perceives corruption and on its actual contact with corruption. POLITICAL CRITERIA - to prevent corruption in the procedure of approving. and deputies and assistant directors in state administrative organisations). there will be continued implementation of training in ethics for civil.2. issuing a review and recommendations to the Government. and drawing up a new Strategy (two years from the date of adoption). Croatia will send its liaison officer and state attorney to the headquarters of Eurojust. In addition. directors in the ministries. in the last quarter of 2009 the Government Office for Co-operation with NGOs will organised round tables with all competent authorities for anti-corruption measures on monitoring the implementation of the Anti-corruption Strategy and the accompanying Action Plan. In the area of suppressing corruption in the healthcare system. selecting and distributing free primary and secondary school textbooks through amendments to the Act on Primary and Secondary School Textbooks and other relevant legislation. an analysis will be made of the public procurement system of hospitals with a view to strengthening transparency. - to establish and prescribe the competence of the Sports Inspectorate through the adoption of the Sports Inspection Act. deputy state secretaries in central state offices. Depolitisation of state administration The Regulation on amendments to the Regulation on job classification in the civil service. evaluating the results of the reform. the procedure for the appointment of senior civil servants based on competitive recruitment (that is. State Administration Reform A) ACHIEVEMENTS IN 2008 The Strategic framework of the State Administration Reform The State Administration Reform Strategy for the Period 2008-2011 was adopted in March 2008. In 2009. heads of Government offices. prescribes conditions for the appointment of senior civil servants (secretaries in the ministries. In accordance with the ratified agreement with Eurojust. the procedure of removing the former politically appointed civil 45 . the legal and institutional framework will be improved with the adoption of new regulations. By November 2008.I.3. whereby the Inspectorate will be expected to work on the prevention of abuse and corruption in sports and to ensure transparent financing of sports. with a view to supervising the implementation of the Strategy. A competitive recruitment process for senior civil servants began in February 2008. regional and local officials and employees. International co-operation will be improved through the further conclusion of co-operation agreements between the Republic of Croatia and other countries. ensuring political and professional support for the reform. In order to ensure the continued involvement of civil society in monitoring the implementation of anti-corruption measures. - to ensure the opening of examinations at higher education institutions to the public and to improve the system of evaluating universities and their study programmes through the adoption of relevant legislation in the higher education system. adopted in February 2008. Implementation of the measures foreseen in the Strategy is underway and in September 2008 the Government established the National Council for the Evaluation of the Modernisation of State Administration. deputy secretaries of the Government. The training of journalists on corruption-related issues will also continue. 1. Implementation of the legal provisions on depolitisation and professionalisation of the civil service will soon be completed.

so that the Final Proposal of the Act may be drawn up. and with the Zagreb Institute of Public Administratiton. proposals and opinions are currently being sent to the sponsor of the proposal with a view to drawing up the Final Proposal of the Act. with a view to advancing ethical standards in the state administration. In November 2008. and in June 2008 amendments were adopted to the Plan of Admission. international experts and representatives of NGOs. Modernising the general administrative procedure and office transactions On 24 October 2008. Comments. an assessment of training needs in all state bodies for 2009 was completed. a representative of the Central State Office for Public Administration must be one of the members of the recruitment commission. which foresee the formation of an Ethics Committee and lay down the duties of ethics commissioners in the procedure of receiving and acting further to reported unethical conduct. In order to ensure that the procedure of competitive recruitment is objective. Professional Services and Offices of the Government of the Republic of Croatia for 2008 was adopted. with a view to strengthening administrative capacity in the bodies of state administration. in the Secretariat of the Government and in all offices of the Government of the Republic of Croatia. As part of the process of nominating projects for the IPA 2008 programme. After the conducted analysis of job descriptions in all bodies of state administration. the Programme of Training for Leading Civil Servants was developed. proposals and opinions are currently being forwarded to the sponsor of the proposal. forms for the description of work posts are currently being drawn up in accordance with the Regulation on job classification in the civil service. in certain bodies the total number of work posts for senior civil servants was increased. Zagreb hosted the 3rd Regional Workshop on Civil Service Reform in the Western Balkans in the Field of Human Resources Management entitled “How to Attract and Retain the Best People in the Civil Service”. This workshop was organised by the Central State Office for Public Administration. the Community of Practitioners in State Administration Human Resources Management in the Western Balkans. At the same time. which drew together representatives of state administration human resources management from the countries in the region. the topic covered problems and challenges in attracting and retaining the best people in the civil service. the UNDP offices in Croatia and Bosnia and Herzegovina. the drawing up of a new Regulation on office transactions is currently underway. In November 2008. The procedure still has to be conducted for 28 work posts. the Government of the Republic of Croatia adopted Amendments to the Code of Ethics. faculties of law and central state administration bodies.2009 servants) was fully completed in 19 central bodies of state administration. Act on the Election of Members to the European Parliament In July 2008. The Proposal of the Regulation was forwarded to central state administration bodies and the City Office for General Administration of the City of Zagreb for their opinion in December 2008. 46 .NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . With a view to modernising the ways of running office transactions in the bodies of state administration. SIGMA’s comments will be taken into account in drawing up the Final Proposal. In June 2008. As part of the project of Danish bilateral assistance. the Plan of Admission to State Administration Bodies. the Proposal of the General Administrative Procedure Act passed its first reading in the Croatian Parliament. in July 2008 Terms of Reference were drawn up for a project entitled “Support to the Implementation of the General Administrative Procedure Act”. the Croatian Parliament adopted a Conclusion accepting the Proposal of the Act on the Election of Members to the European Parliament. Comments. At the two-day workshop. Human resources management In March 2008. The Draft Proposal of the General Administrative Procedure Act was drawn up as part of the CARDS 2003 Project “Support for the Public Administration and Civil Service Reform”. in partnership with the UNDP Regional Office from Bratislava. and was later improved in co-operation with experts from the Administrative Court. The programme is held regularly in the Centre for Professional Education and Training of Civil Servants and so far has been attended by 60 leading civil servants.

000 inhabitants. The project includes ten central state administration bodies and five offices of state administration in the counties. the Norwegian consultant. which was conducted by the International Relations Institute. Germany. and the heads of municipalities and mayors in municipalities and towns with up to 10. one deputy.000 inhabitants. two deputy mayors and two deputy county prefects are elected). and the final report is currently being reviewed by members of the Project Management Committee. a mayor and a county prefect. instead of the current one. Public agencies As part of the bilateral assistance programme by the Kingdom of Norway to the Republic of Croatia in the area of the alignment of public agencies and European integration processes entitled “Support to Croatia in the Field of European Integration and Public Administration Reform”.I.000 inhabitants. and in municipalities and towns with more than 10. The final report was sent to the Central State Office for Public Administration in December 2008. The project is being conducted under the Deed of Donation by the Swedish International Development Co-operation Agency concluded between the Republic of Croatia and the International Bank for Reconstruction and Development. Local self-government In October 2008. Hungary. In relation to the manner of performing the duties of a head of a municipality. the organisation of a round table. It places foreign natural and legal persons on an equal footing with domestic natural and legal persons in terms of the right to establish institutions (in accordance with the Negotiating Position of the Republic of Croatia for the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union for Chapter 3 . the Act on Amendments to the Institutions Act was passed. within the same project. To continue this co-operation. has now been fully implemented. The procedure for establishing institutions was also simplified. the Agency for Public Management and eGovernment (DIFI). Norway. Slovenia and Sweden). and the implementation of further training. The plan should be submitted for adoption procedure by the end of 2008. the Croatian Parliament passed the Act on Amendments to the Act on Local and Regional Self-government. two deputy heads of municipalities. while their deputies. The Act also regulates the issue of electing representatives of national minorities concerning the direct election of the head of a municipality. DIFI will provide assistance in drawing up the Proposal of the Act on Agencies. and in counties. in line with the recommendations of the special unit of HITROREZ. Functional review of state administration bodies The project entitled “Functional Reviews and Assistance in the Restructuring of State Administration Bodies and their Subordinate Agencies in Croatia”. implemented as a co-ordinated effort of the MFAEI and CSOPA. in large towns.000 inhabitants.The Right of Establishment and Freedom to Provide Services. The results of the project were presented at the CSOPA in May 2008 and will be used to draft a Proposal of the Act on Agencies. may decide on their own whether to perform the duty on a professional basis or not. a mayor and a county prefect (either on a professional basis or without contracting employment). which the Government of the Republic of Croatia adopted in October 2006). Act on the Salaries of Civil Servants The analysis of the Draft Act drawn up by SIGMA was forwarded to the Commission in September with a view to drawing up the Act on Salaries of Civil Servants. Restructuring of the bodies of state administration based on the results of the functional review is planned in 2009. it is established that their duties are performed on a profession basis in all local self-government units with more than 10. and in counties. towns which are the seats of counties. POLITICAL CRITERIA Amendments to the Institutions Act In March 2008. by which the number of deputy heads of municipalities. in towns which are the seats of counties. 47 . deputy mayors and deputy county prefects is determined depending on the number of inhabitants in a particular unit (in municipalities and towns with up to 10. based on the experiences of public agencies in six European countries (Austria. drew up a comparative study entitled “Independent Public Agencies − Legal Framework and Institutional Challenges”.

the Government of the Republic of Croatia adopted the Training Plan for Civil Servants for 2008 whose implementation is being conducted by the Centre for Professional Education and Training of Civil Servants. In respect of the issues of the direct election of the competent holder of the executive branch. obligations and responsibilities of officers and employees in the administrative bodies of local and regional self-government. It elaborates on the issue of the number of voters’ signatures necessary for party and independent candidacies for heads of municipalities. in the Centre there were 576 activities and training programmes for a total of 5. the Act on the Election of Heads of Municipalities. was drawn up as part of the CARDS 2003 project entitled “Capacity Strengthening for Administrative Decentralisation”. Decentralisation Strategy and Local Self-government Training Strategy In September 2008. a total of 53 civil servants have enrolled for postgraduate specialist study. Programme of Management Skills for the State Administration.2009 In October 2008. So far. with a view to institutionalising ReSPA. county prefects and their deputies to be valid. this Act is aligned with the Act on the Election of Heads of Municipalities. mayors. B) KEY PRIORITIES To pass the Act on the Right of Nationals of EU Member States who Reside in the Republic of Croatia to Vote and Run for Office in Elections for Local and Regional Self-government. In June 2008. In 2008. The project was conducted by the International Relations Institute under the Deed of Donation of the Swedish International Development Co-operation Agency concluded between the Republic of Croatia and the International Bank for Reconstruction and Development. undertaking to conclude an International Agreement on ReSPA. County Prefects and the Mayor of the City of Zagreb was also passed. Mayors. The programmes included: Introduction to the Civil Service. etc.245 civil servants. Labour relations in local and regional self-government In April 2008. the Central State Office for Public Administration continued to grant scholarships for civil servants attending the Postgraduate Specialist Study of Public Administration. Based on the said Training Plan for Civil Servants for 2008. and in May the 2008 Curriculum Catalogue was also prepared. the Act on Local and Regional Self-government Officers and Employees was passed. The Act regulates the rights. the Croatian Parliament passed the Act on the City of Zagreb. The said National Strategy. like the Decentralisation Strategy. the General Annual Training Implementation Plan was drawn up. Mayors. Assessment of Work and Efficiency. the Government of the Republic of Croatia adopted the “Letter of Intent”. the project entitled “Assessment of the System of Salaries and Remuneration in Local and Regional Self-government and Recommendations for the Reform of the System” was completed. In 2008. the National Strategy of Training for Civil Servants in Local and Regional Self-government 2009-2013 was adopted.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Public Procurement. the Central State Office for Public Administration continued to actively participate in the development of activities of the Regional School of Public Administration (ReSPA). 48 . The results of the project will be used to determine the basic elements to regulate the system of salaries of local government officers and employees. County Prefects and the Mayor of the City of Zagreb and the Act on Local and Regional Self-government. The representative of the Republic of Croatia in the Management Board of the Regional School of Public Administration is the head of the Centre for Professional Development and Training of Civil Servants with the Central State Office for Public Administration. In July 2008. Also in October 2008. In 2008. Training of civil servants In April 2008.

One of the activities foreseen in the project is to train representatives of the bodies in charge of suppressing discrimination (such as the employees of the Office of the Ombudsman as the central body in charge of antidiscrimination. 1. The project should commence at the end of 2008. The plan includes the following areas: family and social welfare. and Council Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation. Economic and Social Rights A) ACHIEVEMENTS IN 2008 In the field of suppressing discrimination. The project was approved by the European Commission. the Government of the Republic of Croatia adopted the National Anti-Discrimination Plan and the Action Plan for the Implementation of the National Plan (2008-2009). On 17 September 2008. labour and employment. submitted a project under the Community Programme for Employment and Social Solidarity − PROGRESS. and its implementation should be concluded at the end of 2009. 49 .3. the deadlines for their implementation and the amount and sources of funds. - To adopt the Strategy for the Development of Human Resources in the State Administration. which also approved its co-financing by the European Commission to the amount of 80% of the overall cost of the project. the suppression of and sanctions against discrimination. To organise training on the new General Administrative Procedure Act. education. health and social welfare.1. elderly persons.3. statistical monitoring of discriminatory acts. there will be an awareness raising campaign in the project to inform citizens about their rights arising from the Anti-Discrimination Act. lawyers. The main goal of the project is to train bodies competent for the suppression of discrimination with a view to achieving effective implementation of the Anti-Discrimination Act. Political. which will enter into force on 1 January 2009. The Action Plan includes a list of competent authorities for specific measures. the Anti-Discrimination Act was passed on 9 July 2009. To establish a register of civil servants. Consequently. To adopt the Regulation on job classification and the salaries of employees. entitled “Supporting the implementation of the Anti-Discrimination Act”. One of the goals of the project is to raise public awareness of the problem of discrimination. judges. national minorities. To implement the new electoral model for local self-government. police officers and local and regional self-government officers and employees. The Act is in line with Council Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin. in co-operation with the Office of the Ombudsman and the Centre for Peace Studies. Civil. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1. The Plan is in line with the Anti-Discrimination Act. and the suppression of discrimination in the media and civil society.I. POLITICAL CRITERIA - To implement the Administrative Inspection Act and conduct thorough inspection supervision in all bodies of state administration. To organise training related to the application of regulations on employee relations in the state administration. the Office for Human Rights of the Government of the Republic of Croatia. and representatives of the media. the status of aliens. With a view to achieving the best possible implementation of the Anti-Discrimination Act. The Act foresees further strengthening of the Office of the Ombudsman as the central body in charge of anti-discrimination. state attorneys. civil society organisations and employers). as well as a schedule and the deadlines for the performance of each of the proposed measures. To establish a record of employment of national minorities in local and regional self-government.

In 2008. and conditions for. and it completes the system of free legal aid in the Republic of Croatia. In the course of 2008. and about the methods of. that is. The Department for Free Legal Aid has been established within the Ministry of Justice (OG 77/08) to perform second instance activities and monitoring. In addition. a publicity campaign will be conducted to inform citizens about the opportunity to obtain free legal aid. the protection of victims of criminal acts. 50 . For that purpose. Recruitment procedures are also underway to recruit employees to work on the activities of approving free legal aid. on raising awareness of the importance of being acquainted with and exercising human rights. Pursuant to the National Programme for the Roma. such as statutory rights. The National Programme focuses on the protection.600. adopted in November 2007. The setting-up of a computer system for free legal aid is expected by the end of December 2008. The Act will apply to the citizens of the Republic of Croatia as of 1 February 2009. HRK 1. the Regulation on amendments to the Regulation on the internal organisation of state administration offices in counties has been adopted (OG 70/08). its approval. the Ordinance on the method of maintaining the register of associations authorised to provide free legal aid (OG 93/08) and the Ordinance on the form of application for the approval of free legal aid. Of the subordinate legislation envisaged for adoption. until the commencement of the application of the Act on Free Legal Aid. B) KEY PRIORITIES To implement the measures and activities contained in the National Programme for the Protection and Promotion of Human Rights (2008-2011). judicial and international bodies in relation to issues of fundamental significance to the citizen. issues related to labour law. thus creating the conditions for hiring civil servants to work on the first instance procedure of approving free legal aid.000 was disbursed from the State Budget in 2008. and to EU citizens from the day of the accession of the Republic of Croatia to the EU. In 2008.2009 The Act on Free Legal Aid (OG 62/08) was passed in May 2008. the Ministry of Justice is implementing a programme of free legal aid for the Roma in matters of statutory rights. and victims of domestic violence. By the end of 2008. the measures and goals for improving the position of vulnerable groups were implemented. rights under pension or disability insurance and other forms of assistance. the Office for Human Rights invited applications for the award of funds for projects undertaken by civil society organisations working on the protection and promotion of human rights. To strengthen the administrative capacity and human resources of the Office for Human Rights of the Government of the Republic of Croatia. the protection of children and young adults.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . victims of trafficking. Free legal aid may be approved for exercising rights and meeting obligations in proceedings before administrative. as envisaged in the National Programme for the Protection and Promotion of Human Rights (2008-2011). and on the creation of the conditions necessary for co-operation with civil society organisations in the area of human rights. rights relating to the social welfare system. promotion and improvement of human rights in the Republic of Croatia. the form of referral and the record of issued referrals (OG 128/08) have already been adopted. on improving co-operation between the bodies of the Republic of Croatia responsible for the protection and promotion of human rights. and will continue implementing the programme until 1 February 2009. Preparations are underway for the training of civil servants who will work on the approval of applications for free legal aid. hardware and software to support the implementation of the Act on Free Legal Aid were procured. The Act regulates the criteria to be met by citizens of lower economic status in order to qualify for free legal aid and the approval procedure for free legal aid. The Act establishes the basic forms of free legal aid and the system of monitoring both the approval of legal assistance and the quality and professionalism of the free legal aid provided. on the establishment of a human rights education system.

“Strategic Programme Fund” − Support to the Development of the Probation System in the Republic of Croatia. With the objective of increasing the level of professional qualifications for work in the prison system. The conversion and adaptation of the existing premises of Varaždin Prison continues. 51 . involving: the new facility of the Prison Hospital in Zagreb. together with auxiliary facilities. MATRA PRE-ACCESSION. in 2008 a seminar entitled “Collective Work with Inmates and Juveniles in the Prison System” was organised and held at the Training Centre. In addition. if necessary. drawing-up a Draft Proposal of the Probation Act. and. funded by the Government of Great Britain and Northern Ireland. funded by the Government of Great Britain and Northern Ireland. In February 2008.1. and thus January 2008 saw the start of the implementation of the project of bilateral aid and co-operation with the Kingdom of the Netherlands. 23 healthcare staff. 33 security officers (judicial police). the recruitment of 50 security officers (judicial police). including: work on the SPF project “Development of the Probation System”.1. and the basement will be converted to inmates’ workshops. MATRA −”Treatment of Violent Offenders in Croatian Prisons and Penitentiaries”. In 2009. Special programmes are regularly implemented by official staff who receive additional professional training in targeted courses. in the area of the city of Šibenik (Dalmatia). in accordance with the stipulated legislative procedure. the implementation of the UNDP project “Violence Prevention and Treatment in Turopolje Juvenile Correction Institution” is currently underway. POLITICAL CRITERIA 1. 23 vocational teachers. From April 2008 to March 2009.3. Special treatment programmes have been prepared for certain inmates with problems in the abuse of narcotic drugs. 36 other officers and 6 employees. entitled “Management of the Organisational Climate and Development of Human Resources of the Directorate for the Prison System of the Ministry of Justice”. it is planned to admit to the civil service 200 security officers (judicial police). the new facility at Zagreb Prison with a capacity of 376 persons temporarily deprived of liberty. the new facility of the Glina Penitentiary. sex offenders. for persons temporarily deprived of liberty.I. inmates suffering from post-traumatic stress disorder (PTSD). work began on a bilateral project with the Kingdom of the Netherlands. with the support and supervision of experts outside the prison system who are employed in centres for the prevention and suppression of addiction. the recruitment of 6 employees at the Central Office and their training for activities concerning probation. participation in the training of judges and state attorneys related to probation. Work continues on the project “The Emotional Well-being and Professional Burnout of Prison Staff” in co-operation with the Faculty of Education and Rehabilitation Sciences in Zagreb. Certain types of individual treatment programmes are being developed through projects of bilateral aid. the bilateral programme. Special programmes are a constituent part of individual programmes in the enforcement of prison sentences in accordance with inmates’ individual needs. for 2011. 14 officers for the deposit of inmates’ possessions. The planned duration of the project is 30 months. equipped for the treatment and accommodation of 106 patients (the existing buildings will also be reconstructed and adapted). Activities for the establishment of the probation system are to continue. for 2010. The Act on the Enforcement of Sanctions Imposed on Juveniles in Criminal or Misdemeanour Proceedings has been submitted to the competent authorities for preliminary opinion. Improvement of the prison system A) ACHIEVEMENTS IN 2008 Accommodation capacities and special treatment programmes Four projects related to the construction of new accommodation capacities of the prison system have started. whereby the accommodation capacity will be increased by 37. in psychiatric hospitals and/or in addiction treatment clinics. has also been running. etc. with a capacity of 400 inmates together with auxiliary facilities. together with auxiliary facilities. a new penitentiary and prison complex with a capacity of 400 inmates and 200 persons temporarily deprived of liberty. 19 prison care officers and 8 employees for the Register of Prisoners.

all persons temporarily deprived of liberty in the prison system who enjoy the right to health insurance are to be treated by a general practitioner who has a contract with the Croatian Health Insurance Institute. while four prison system employees have been assigned to the Department for the Enforcement of Protective Supervision and Community Work at Liberty at the Central Office. an agreement has been reached with the Croatian Health Insurance Institute and is being applied. Important amendments to the provisions of the Ordinance relate to the elimination of the possibility of communication between persons from a criminal environment and prisoners serving prison terms. To pass the Probation Act. According to the agreement. the reaction of the wider community. it is planned to set up five new work posts in the Department for the Enforcement of Protective Supervision and Community Work at Liberty within the Treatment Service at the Central Office. Steps were taken to recruit staff for the work posts. The 1st phase is due in 2008. probably in the last quarter of 2009. while amendments to the Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order in respect of the establishment of the Probation Directorate and the admission of 70 new probation officers will follow only after the passing of the Probation Act. The Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order were amended and the number of employees in the Department for the Enforcement of Protective Supervision and Community Work at Liberty was increased. The said Act will lay down the establishment of probation and the activities of probation. the prisoner’s view of the committed criminal offence. The said amendments to the Regulation and the Ordinance and the recruitment are planned in two phases. 52 . The said amendments to the Ordinance on benefits for prisoners introduce the obligation to perform a security check when deciding on special conditions for the acquisition of benefits in the case of prisoners punished for criminal offences under the competence of USKOK and Article 181 of the Criminal Procedure Act.2009 An analysis of the implementation of the Ordinance on benefits for prisoners shows that it is necessary to adopt a new Ordinance to improve the application of the principle of individualised enforcement of prison terms in the sense of raising the level of public safety and the principle of the gradual acquisition of benefits for prisoners. In order to limit the possibility of using benefits outside prisons and penitentiaries. and the recruitment of 6 probation officers in the pilot phase. the current situation in the prisoner’s family and the current situation in the community. and to restricted visits by third parties. for the purpose of establishing a Directorate for Probation and in order to recruit 76 employees. The 2nd phase should begin after the passing of the Probation Act. With a view to improving the system of healthcare for persons temporarily deprived of liberty. it is necessary to evaluate the type and circumstances of the criminal offence committed. and the procedure for the admission of two employees further to the recruitment procedure is underway. B) KEY PRIORITIES To pass the Act on the Enforcement of Criminal Sanctions and Measures Issued against Minor Perpetrators of Criminal Offences. In this phase. All six employees will perform activities related to probation in the pilot phase. the reaction of the victim and the victim’s family. the principle of gradual acquisition applies. With a view to strengthening prisoner rehabilitation and taking into account the victim and circumstances that exist in the community. The Action Plan for Judicial Reform foresees amendments to the Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .

education for democratic citizenship and human rights. philanthropy and foundations. amongst other things. in the course of 2008 the Government Office for Co-operation with NGOs acted with the aim of introducing greater transparency in the system of awarding financial support to the projects and programmes of civil society organisations.3.330. institutional and financial framework for co-operation between the Government of the Republic of Croatia and civil society organisations In April 2008. financing the support and development of civil society. Freedom of association On 10 October 2008.2. the Office for Co-operation with NGOs drew up and submitted to the Government of the Republic of Croatia a Report on the Allocation of Financial Support for Projects and Programmes of Civil Society Organisations in 2007. and in some cases even ended. the development of volunteering. The Head of the Office for Co-operation with NGOs was appointed a member of the National Commission for Monitoring the Implementation of Anti-corruption Measures. The working group of the Council for Civil Society Development for establishing the criteria to confer the status of public benefit organisations drew up a proposal for resolving basic issues regarding the status of public benefit organisations active in the Republic of Croatia. In 2008.869. is also in charge of the systematic implementation of measures included in the Action Plan of the Anti-corruption Strategy within the competence of the Office. By defining privileges for public benefit operations.900 associations registered in the NGO register of the Republic of Croatia. which assign a significant role to civil society in the overall activity of suppressing corruption.08 was granted from the State Budget.192.036. showing that the implementation process included 64% of all measures foreseen for 2007 and January 2008. the Office for Co-operation with NGOs. The Draft Code of Positive Practice on Consultations with Civil Society Organisations in the Procedure of Adopting Laws and other Regulations was accepted at the session of the Council for Civil Society Development at the end of June 2008.I. a legal framework for the activities and development of civil society organisations. The measures are being implemented by various state administration bodies in the areas of citizens’ participation in the creation of public policy. while the Office for Co-operation with NGOs is the competent authority for the implementation of several anti-corruption measures. The Report shows that HRK 470.1.03 from county budgets. the text of the Code was aligned in expert working groups and in all co-ordinations of the Government of the Republic of Croatia and it is expected that it should be put on the agenda of the Government of the Republic of Croatia.000.69 in total) for projects and programmes of civil society organisations. regional development. With the aim of strengthening the involvement of civil society organisations in the process of European integration. Standards and Criteria for Financial Support to Programmes and Projects of Associations.58 from city/town budgets (HRK 1. that is.434. The Draft Public Benefit Organisations Act should be submitted for legislative procedure in early 2009. In late April 2008. and those organisations formed with a view to satisfying the needs of their members. Further to the changes in the structure of the Office for Co-operation with NGOs. the EU-Croatia Civil Society Follow-up Committee. The Public Benefit Organisations Act.247. where the granting of funds was assigned to competent ministries and Government offices. HRK 337. and HRK 439. those acting for the greater (public) good. there were 35. which. significant progress was made in strengthening the legal. as the body in charge of co-ordinating the work of state administration bodies in the development of co-operation with the non-governmental non-profit sector.911. and further to the adoption of the Code of Positive Practice. which will serve to introduce a new model for classifying civil society organisations in a way that will enable a clear distinction to be made between public benefit organisations. there is now a Department for General Programmes and Strategies. In the context of decentralising the system of funding civil society organisations from the State Budget. The implementation of 34 measures (out of 53 measures in total) began in the course of the reporting period.095. and civil society development in an international context. established as a joint consultative body of the European Economic and Social Committee and 53 . At the beginning of July. for the reporting period from 1 February 2007 to 1 February 2008. it is expected that philanthropy and the culture of giving will be stimulated. The Office for Co-operation with NGOs was actively involved in the drafting of the Anti-Corruption Strategy and its Action Plan. POLITICAL CRITERIA 1. submitted an Annual Report to the Government of the Republic of Croatia on the Implementation of Measures Included in the Operational Plan of the National Strategy for the Development of an Enabling Framework for Civil Society Development.

support from pre-accession funds for the civil society sector was significant. To adopt the Public Benefit Organisations Act. continues to have regular meetings. and sustainable development. To implement the National Strategy for the Development of an Enabling Framework for Civil Society Development in accordance with its Operational Plan. drawing together representatives of the Employers’ Association.3. Right to information A) ACHIEVEMENTS IN 2008 Pursuant to the Access to Information Act. within the prescribed deadlines.670 requests to grant access to information. To implement other measures included in the Operational Plan of the National Strategy for the Development of an Enabling Framework for Civil Society Development. In 2008. the anti-discrimination strategy. 1. which lies within the competence of the Directorate-General for Education and Culture.385 requests. in co-operation with the central bodies of state administration.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . With a view to drawing up the most complete and the best possible report for 2008. the Office requested public administration bodies to deliver a detailed report on the implementation of the Act. while 107 requests were assigned to the competent authorities. trade unions and other civil society organisations.1. and 124 were rejected. The project will be aimed at strengthening civil dialogue in the process of making. In 2008. monitoring and evaluating public policy at the national and European level in the areas of transparency of public administration. public administration bodies received 3. According to the data contained in the reports delivered to the Office in the course of 2007. The Office resolved 3. drew up and submitted to the Government of the Republic of Croatia the List of Public Administration Bodies for 2008. which the Croatian Parliament accepted in March. 54 remain unresolved. the Government Office for Co-operation with NGOs was appointed as the Contact Point for the Programme. so that it could draw up a uniform report and.2009 Croatia as a candidate country for membership of the EU. the Central State Office for Public Administration. submit it to the Government of the Republic of Croatia. the Government Office for Cooperation with NGOs received financial support from the Education Audiovisual and Culture Executive Agency. Considering that the Republic of Croatia has become a participant in Europe for the Citizens Community programme. The Office takes action on the basis of petitions from natural and legal persons with regard to the implementation of the Act. For its implementation. and requests information on how to deal with requests to exercise the right to access information. the Government Office for Co-operation with NGOs worked on drawing up project documents for the first component of the IPA pre-accession programme . suppression of corruption. the Working Programme of Information and Communication Activities for 2008 was drawn up.Transition Assistance and Institution Building for 2008. 54 . provides instructions to public administration bodies on their obligations arising from the Act. The Government has the duty to submit the report on the implementation of the Report to the Croatian Parliament for adoption at the latest by 31 March for the previous year.3. In the PHARE 2006 Project entitled “Enabling the Civil Society Sector for Active Contribution in the Pre-Accession Process” 36 projects were approved for financing. In this context. The Office drew up a Report on the Implementation of the Act for 2007. B) KEY PRIORITIES To adopt the Code of Positive Practice on Consultations with Civil Society Organisations in the Procedure of Adopting Laws and other Regulations.

To make analyses and recommendations. To prepare a Report on the Implementation of the Access to Information Act for 2008.I. To organise public awareness campaigns on the right of access to information. The Office organises seminars for information officers who perform their job in central state administration bodies and in the bodies of local and regional self-government. round tables and workshops for information officers for the purpose of ensuring the public nature of the work of public administration bodies. the Office proposed to the Government of the Republic of Croatia the adoption of a Conclusion which would obligate state administration bodies to submit the mentioned quarterly reports.4. The Act is in line with the acquis communautaire. In 2008. To set up a working group to conduct an analysis of the justifiability or non-justifiability of rejected petitions for access to information. the List of Public Administration Bodies for 2009 and submit it to the Government of the Republic of Croatia for publication in the Official Gazette. The Action Plan of the Anti-corruption Strategy includes a measure which lays down the obligation of information officers in state bodies to submit quarterly reports on the implementation of the Act to the Central State Office for Public Administration. in co-operation with central state administration bodies. the new Gender Equality Act (OG 82/08) was passed. organised by the Faculty of Civil Engineering in Zagreb. and in a symposium organised by the Lifelong Learning Centre of the Faculty of Law in Split. The Act establishes an independent body for suppressing discrimination 55 . resulting in the meeting of the obligation included in the Action Plan for the Alignment of the Legislation and the Creation of Necessary Capacities for the Application and Implementation of the acquis communautaire in Chapter 19: “Social Policy and Employment” in the Area of Equal Opportunities. with special emphasis on the Act on the Protection of Data Secrecy. with the EU directives relating to gender equality (Directive 2002/73/EC. Gender equality A) ACHIEVEMENTS IN 2008 On 15 July 2008. The Office will take action on the basis of petitions from persons authorised to access information with regard to the implementation of the Act. the Office will organise seminars. that is. and drew up a list of information officers and information catalogues.3. Therefore. B) KEY PRIORITIES To prepare. In the course of 2009. Directive 2006/54/EC and Directive 2004/113/EC).1. and to the Croatian Parliament for adoption. produced by the working group. POLITICAL CRITERIA The Office requested state administration bodies to submit data on information officers and information catalogues. The Office also took an active part in the symposium “Right to information”. The Office will organise a celebration of the International “Right to Know” Day on 28 September. submit it to the Government of the Republic of Croatia. In co-operation with GONG and Transparency International Hrvatska. 1. two seminars were held and by the end of the year it is planned to hold a further seminar. the Office organised a conference on the occasion of the International “Right to Know” Day. To prepare amendments to the Access to Information Act.

The Glossary of Gender Terminology based on EU standards was published in 2. The Act also foresees the strengthening of human resources in the Office of the Ombudsman for Gender Equality and the Office for Gender Equality of the Government of the Republic of Croatia and prescribes the obligation of establishing and financing county commissions for gender equality as institutional mechanisms for the implementation of the Act and the National Policy to Promote Gender Equality at the Local Level. in October 2008 there was a 3rd Co-ordination of County Gender Equality Commissions. The competent authority is the Ministry of the Economy. In the course of 2008. The goal of the project was to conduct analytical research in 2007 on effective methods of implementing the policy of gender equality in local communities and on the efficiency of institutional mechanisms in overcoming gender-based discrimination which exists in the countries of the Mediterranean circle − Malta. With a view to strengthening the institutional mechanisms for implementing the policy of gender equality. and on the basis of Recommendation (2002)5 of the Council of Europe on the protection of women against violence. The Swedish Institutional Support Fund in the Republic of Croatia (SISF) co-finances the project. “Gender Equality”. networking and training of gender equality committees in local and regional self-government. The Glossary was compiled by associates from the Centre for Women’s Studies.000 copies which were distributed and publicly presented. By signing the Memorandum of Understanding with the European Commission. 56 . the shifting of the burden of proof. Greece and Croatia. Labour and Entrepreneurship. in early 2008 Croatia became entitled to participate in the Community programme for Programme for Employment and Social Solidarity PROGRESS 2007-2013. Portugal. The Office is in charge of the 5th component. and a contract on technical assistance was signed in June with the Institute for Public Management in Stockholm. The Act introduces wider prohibition of discrimination in the area of receiving and offering services and in the area of employment and labour. The Office printed 2. on the basis of the participation of the Republic of Croatia in the Community Programme − Gender Equality).2009 in the area of gender equality. the Working Group. set up within the Office for Gender Equality for the task of making an analysis and action plan for the suppression of all forms of violence against women. which was organised by the Office in Zagreb on 31 May 2007 (as part of the project financially supported by the European Commission. whose aim is to implement the EU strategy “Roadmap for Equality between Women and Men 2006-2010” and the European Pact for Gender Equality.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Office for Gender Equality implemented and supervised the implementation of measures included in the National Policy to Promote Gender Equality 2006-2010: In line with the provisions of the National Policy. thus achieving alignment with the regulations on the scope of work of the Ombudsman for Gender Equality in a way that the activities of her office include all the functions of an independent body for gender equality laid down in the said directives. The Office provided for the translation of two recent recommendations of the Council of Europe: Recommendation CM/Rec(2007)13 of the Committee of Ministers to member states on gender mainstreaming in education. and it also introduces new institutes such as class actions. and funds were approved to serve as financial support to NGO projects within the funds available within the budget item of the Office for Gender Equality to the amount of HRK 665. the international project “Taking Gender Equality to Local Communities” was concluded. In February 2008. With a view to continued strengthening. The Office for Gender Equality issued a public invitation for NGOs to submit projects. A priority area of this tender was local elections in 2009.000. drew up a proposal of the Protocol on conduct in the event of sexual violence. Italy. and Recommendation CM/Rec(2007)17 of the Committee of Ministers to member states on gender equality standards and mechanisms.000 copies of the bilingual Collection of Works from the “Awareness Raising Conference about EU Policies and Legislation on Gender Equality”. the Office drew up a project proposal entitled “Support to the Office for Gender Equality in Strengthening the National Gender Equality Mechanisms through Training of Gender Equality Co-ordinators in State Administration Bodies”. and the principle of expediency in judicial proceedings. in a final conference held in Malta.

in accordance with the National Population Policy. 1. the Ministry of the Family. On the recommendation of the Council of Europe. such as the 2006 National Plan of Activities for the Rights and Interests of Children and the National Population Policy. the Government of the Republic of Croatia and UNICEF signed the Programme Action Plan 2007-2011. families with children. It foresees the adoption of annual implementation plans at the level of co-operation between the competent ministries and UNICEF. members of parliament. which should be achieved by co-financing programmes such as summer holidays for families with many children. held in Zagreb on 15 June 2008 in the Zagreb Puppet Theatre. networking and training of gender equality committees in local and regional self-government units. Veterans’ Affairs and Intergenerational Solidarity had drawn up the Draft Proposal of the Act on the “Croatia for Children” Foundation. distinguished public figures. B) KEY PRIORITIES To further implement the measures included in the National Policy to Promote Gender Equality 2006-2010. The aim of the Foundation. The Croatian translation of the publication of the Council of Europe “Raise your Hand against Smacking − Questions and Answers” was published. Veterans’ Affairs and Intergenerational Solidarity. To continue the strengthening. Protection of the rights of the child A) ACHIEVEMENTS IN 2008 The Ministry of the Family. The event was attended by representatives of Member States of the Council of Europe. The Ministry of the Family. To further strengthen the administrative capacity of the Office for Gender Equality of the Government of the Republic of Croatia.5. POLITICAL CRITERIA Further to the accession of the Republic of Croatia to the Barcelona Process: Union for the Mediterranean (EuroMed).I. To participate in the implementation of the PROGRESS Community Programme in the field of equal opportunities in the fifth Gender Equality programme. procurement of IT equipment. To promote equal representation of men and women in elections for representative bodies of local and regional units of selfgovernment. organised an International Launch of the Council of Europe Initiative against Corporal Punishment of Children. and the like. representatives of expert networks. ombudsmen. representatives of NGOs. The document relies on national documents in the area of protecting the rights and interests of children. and journalists. 57 . scholarships for talented children. is to sensitise the public concerning specific needs and to raise the quality of family life in multi-member families. high-ranking officials. To implement the Recommendations of the United Nations Committee on the Elimination of Discrimination against Women (CEDAW) in relation to the 2nd and 3rd periodical report of the Republic of Croatia on the implementation of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and its Optional Protocol.1. in July 2008 the Office for Gender Equality participated in a meeting of EuroMed’s ad-hoc working group dedicated to “Strengthening the Role of Women in Society” which was organised by the European Commission in Brussels.3. in co-operation with the Council of Europe. Veterans’ Affairs and Intergenerational Solidarity implements the National Campaign against Corporal Punishment of Children which should last until November 2009. On 14 July 2008. which was passed by the Croatian Parliament on 24 October 2008.

2009 Based on the invitation for project proposals. Veterans’ Affairs and Intergenerational Solidarity. whereby gender equality is promoted. activities are underway pertaining to the action “Child-Friendly Towns and Municipalities”. Some measures included in the National Population Policy have been applied from 2007 (such as maternity leave assistance and one-off financial assistance for supplies for newborn babies.900 within the budget item of the Ministry of the Family. With the further aim of implementing as many measures as possible from the National Population Policy. Veterans’ Affairs and Intergenerational Solidarity organised an expert meeting of all directors of family centres with a view to encouraging an expert discussion on improving the quality of work of family centres. the Ministry of the Family. Up to 6 November 2008. with an emphasis on the programme’s implementation in the Clinical Hospital Centres in Zagreb. and improving protection against domestic violence. interchangeably and in part. while most will be applied by 2009. HRK 1. Veterans’ Affairs and Intergenerational Solidarity published a twin edition of the magazine “Child and Society”. young parents and their families and projects aimed at promoting successful parenthood. encouraging and developing a programme of community work. On 27 June 2008. benefits are paid to parents in employment during periods of supplementary maternity leave or parental leave linked to a budgetary base. a literary and art competition for children entitled “I love my family”. upgrad- 58 . A total of 17 family centres have so far been founded in the Republic of Croatia. the Ministry of the Family. young people and the family. relating to the adoption of modern principles and methods for making the hospital treatment of children more humane and for the development of preventive programmes. In the State Budget for 2008.365. Osijek and Rijeka. family centres pay special attention to responsible parenthood and care for family members. It also foresees the possibility of using part-time maternity and parental leave and the possibility of using parental leave for both parents at the same time. The procedure included projects of support to pregnant women. Through its counselling and preventive work.000 for the use of supplementary maternity leave and one-off financial assistance for supplies for newborn babies.000. raising the quality of life of children. The Government of the Republic of Croatia adopted the Programme for Psychosocial Assistance at Children’s Oncology Departments on 12 October 2007 on the proposal of the Ministry of the Family. support to families with four or more children.780. The Ministry of the Family.400 was provided for family centres. A total of HRK 3. Implementation will achieve the basic goals included in the National Plan of Activities for the Rights and Interests of Children 2006-2012.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . HRK 214.000 was secured for this procedure for the implementation of 69 projects. The first Report on the implementation of the National Plan of Activities for the Rights and Interests of Children 2006-2012 was drawn up and adopted by the Government on 7 February 2008. Veterans’ Affairs and Intergenerational Solidarity for 38 projects aimed at children. Veterans’ Affairs and Intergenerational Solidarity carried out a procedure linked to a public invitation for applications for financial support for NGO projects aimed at the family and protection from domestic violence − 2008. In addition. The Programme for Distributing Free Schoolbooks to Children of Families with Eight or More Children included 189 children from 168 families. and the legal preconditions are created for the flexible use of parental leave until the child turns eight years of age. the State Budget for 2009 contributed HRK 1. and in general encouraging and implementing programme activities aimed at promoting family values. Split.58 was spent on schoolbooks. the opportunity is given for fathers to participate more in childcare. In the State Budget for 2008. HRK 25.427. three of which in 2008. and a competition for the “Award for the promotion of the rights of the child”. The activities proposed through the Programme primarily target children suffering from malignant diseases and their families. the “Fantasy Forest Bus” project. mothers.900. Veterans’ Affairs and Intergenerational Solidarity. One of the successes of the policy in 2008 is the repeal of the limit on the payment of assistance for obligatory maternity leave. a pronatality bonus for the third and fourth child of a child allowance beneficiary). the Maternity and Parental Benefits Act was passed on 9 July 2008 (entering into force on 1 January 2009). An important area of the National Population Policy is the “System of Family Support” whose aim is to strengthen the family in raising children. increased child allowance.000 is allocated for child allowance and HRK 910.763.000. As part of the continuing efforts of the Ministry of the Family.

To implement measures included in the National Programme for the Protection and Promotion of Human Rights 2008-2011. 59 . To implement measures included in the National Action Plan for the Fight against Discrimination 2008-2013.1 to 75. Measures 75. Veterans’ Affairs and Intergenerational Solidarity continues to undertake a number of activities laid down in the National Strategy for Protection from Domestic Violence 2008-2010. KEY PRIORITIES To implement the measures of the Programme of Developing Services for the Elderly in the System of Intergenerational Solidarity (2008-2011) of the Government of the Republic of Croatia. 1. the National Family Policy and the National Plan of Activities for the Rights and Interests of Children 2006-2012. Projects by civil society organisations aimed at improving the quality of life of the elderly or at encouraging volunteering are co-financed through tender procedures. while the Ministry co-operates with local and regional self-government on the implementation of the programme of intergenerational solidarity. enhancing the quality of their life and promoting the prescribed rights. Veterans’ Affairs and Intergenerational Solidarity co-operates with other bodies of state administration. improving the operation of the bodies responsible for the family.3. the Ministry of the Family.6. Intergenerational Solidarity. Goal: To improve the quality of life of the elderly. The Government of the Republic of Croatia adopted the Programme on 23 August 2007. and civil society organisations. and making an impact on the promotion of the values of family life. Protection of the elderly The year 2008 saw the implementation of the Programme of Developing Services for the Elderly in the System of Intergenerational Solidarity for the Period 2008-2011 (OG 90/07). B) KEY PRIORITIES To implement the National Campaign against Corporal Punishment of Children. Issues concerning the elderly within the scope of work of the Ministry of the Family. POLITICAL CRITERIA ing the offered counselling services aimed at families. To implement the measures. Interdepartmental co-operation focuses on the overall review of issues concerning the elderly. 1. the Ministry of the Family.1.I. 75. The expert meeting was organised on the basis of the provisions of national documents. Veterans’ Affairs and Intergenerational Solidarity are also included in the national documents in the broader field of human rights: the National Programme for the Protection and Promotion of Human Rights 2008-2011 and the National Action Plan for the Fight against Discrimination 2008-2013. 4. Measures 1-4. To implement measures of the National Population Policy. With the aim of improving the protection of victims of domestic violence.4. Chapter: The Elderly. To implement measures under the Programme of Activities to Prevent Violence among Children and Young People. To implement measures in 2009 in accordance with the obligations laid down in the National Plan of Activities for the Rights and Interests of Children 2006-2012. 4. local and regional self-government. 1. 1) The Family and Social Welfare. The Elderly. To achieve co-operation with civil society organisations on the implementation of programmes intended for children. Chapter II: The Current Situation by Region and Measures. To strengthen international co-operation on issues affecting the elderly within the scope of work of the Ministry of the Family. Veterans’ Affairs and Intergenerational Solidarity.

all data will continue to be merged.To co-operate with civil society organisations in the implementation of programmes aimed at associations dealing with the problems and addressing the needs of persons with disabilities.859.7.To pass a regulation laying down the right to a personal assistant for persons with the most severe type and grade of disability. and the Ombudsman for Persons with Disabilities was appointed on 30 May 2008. The project is being carried out in co-operation with 64 associations for people with disabilities in 19 counties in the territory of the Republic of Croatia.396. which plans to recruit 9 employees in 2008. In the State Budget for 2008. 1.1.44 was set aside from income from games of chance in 2008 for projects run by associations dealing with the problems and addressing the needs of persons with disabilities in the Republic of Croatia.1. . On 9 May. which.000 for the Office of the Ombudsman for Persons with Disabilities. there are funds to the amount of HRK 2. Persons with disabilities A) ACHIEVEMENTS IN 2008 The Act on the Ombudsman for Persons with Disabilities (OG 107/07) entered into force on 1 January 2008.500. The amount of HRK 12. with the aim of the social empowerment of disabled persons and their inclusion in the life of the community. if necessary. the Ministry of the Family. Pursuant to the Final Guidelines of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015 (OG 63/07). In 2008. B) KEY PRIORITIES . the Ministry of the Family.999.3. which the Government of the Republic of Croatia approved at its session of 30 June 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . . At the General Police Directorate.To implement measures during 2009 in accordance with the obligations included in the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015. will then become involved in the processing of such acts. national and other grounds.8.3. and analyses and evaluations 60 . Co-operation with the Office of the Permanent Representative of the United Nations Development Programme to Croatia (UNDP) was established in the area of evaluating the projects of personal assistants and the application of the mechanisms for monitoring and evaluating the implementation of measures included in the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015. Veterans’ Affairs and Intergenerational Solidarity has carried out for the third year in succession a project to introduce the institution of personal assistants for persons with the most severe forms or degrees of disability.78 were secured from the State Budget. gather and analyse all incidents relating to the problem of hate crimes. 338 persons with the most severe forms or degrees of disability were included in the project and funds to the amount of HRK 14. Veterans’ Affairs and Intergenerational Solidarity signed an agreement on co-operation.2009 1. the UNDP and the Ministry of the Family.984. Hate crimes KEY PRIORITIES All police administrations will systematically monitor. All such incidents must be promptly reported to the competent organisational units of the Ministry of the Interior in charge of monitoring hate crimes. which includes hate expressed on religious. With the aim of improving the quality of life of persons with disabilities. Veterans’ Affairs and Intergenerational Solidarity drew up the Report for 2007 on implementing measures of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015.

Macedonian. etc. Standardised data on “hate crimes” will continue to be entered in police records. For the implementation of the Constitutional Act on the 61 . At its session of 5 March 2008. that is.). it is necessary to record the ethnic or national affiliation of the injured person. Slovak. the qualification of the incident. organised the fifth seminar on the implementation of the Framework Convention for the Protection of National Minorities. Minority Rights and the Protection of National Minorities A) ACHIEVEMENTS IN 2008 Implementation of the Constitutional Act on the Rights of National Minorities In 2008. which was held in Zagreb on 1 December 2008. depending on the motive for the attack which can be hatred under any of the grounds laid down by law (race. origin. the Croatian Parliament passed a Conclusion accepting the Report on the Implementation of the Constitutional Act on the Rights of National Minorities for the year 2006. This also includes events which glorify Ustasha. the affiliation of the perpetrator to a group is recorded in the same way as for the injured person. the Office for National Minorities continued to implement the Constitutional Act on the Rights of National Minorities. Persons attending the seminar analysed the implementation of the Framework Convention for the Protection of National Minorities and the national legislation regulating the rights of national minorities. Following a criminal or misdemeanour investigation. in accordance with its scope of work. With a view to advancing the rights of national minorities.3. etc. physical injury. 3. the data concerning the group must be recorded). the Government of the Republic of Croatia appointed other members of the Council for National Minorities from the ranks of persons proposed by national minority councils. which the Government of the Republic of Croatia will submit to the Council of Europe Advisory Committee. POLITICAL CRITERIA of the situation throughout the Republic of Croatia will continue to be conducted. the reason why it is presumed that it is a hate crime. Ukrainian and Ruthenian national minorities. steps taken. religious community. For the purpose of implementing the said international document. paragraph 36 of the Criminal Code (hate crimes): 1. religious affiliation. grievous bodily harm. the head of the Office for National Minorities was appointed head of the Committee of Experts of the Council of Europe on Issues relating to the Protection of National Minorities. the manner in which it was determined that the event was an incident motivated by hate. In the ensuing term of office. the manner of concluding the case. At its session of 10 April 2008. Chetnik. that is. membership of a subcultural movement. It also encouraged activities and. if the motive is the injured person’s sexual orientation.I. 5. or Nazi movements. implemented measures included in the National Programme for the Roma. German. Six persons were appointed as members of the Council. 2. etc.). The Office is now drawing up its third report on the implementation of the Framework Convention for the Protection of National Minorities. especially in the part relating to the appointment of the Council for National Minorities. no harm. Fascist. 1.2. the following data must be recorded concerning events established as or suspected of being a hate crime towards a person or group on the grounds referred to in Article 89. the Office. it is particularly important to implement the Framework Convention for the Protection of National Minorities which the Republic of Croatia was one of the first countries to ratify. representatives of the Slovenian. in co-operation with the Council of Europe. the affiliation of the injured person with a particular group (if the motive for the attack is ethnic or national hostility or hatred. that is. and other relevant data. 4. The same method is used to record data for members of other attacked groups. the results (material damage.

within the budget item of the Council for National Minorities for programmes of national minority associations and institutions. Bosnia and Herzegovina. which is an increase of 19% in relation to the previous year. In relation to the implementation of Article 22 of the Constitutional Act. Macedonia. The goal of the Conference was to strengthen cross-border co-operation between national minorities in 8 participating countries: Austria. With a view to further improving and realising the rights of national minorities. The Office for National Minorities and the Council for National Minorities of the Republic of Croatia organised an International Conference on Cross-Border Co-operation of National Minorities on the Brijuni Islands from 19 to 21 June 2009. Slovenia and Croatia.590. the amount of HRK 84.650. recruitment plans were also adopted. In 2007. water supply system and electricity network. The Office for National Minorities co-ordinated and participated in the drawing up of the Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities. With support from the State Budget and funds provided by the European Commission (PHARE 2005). there are 2. the Government of the Republic of Croatia adopted the Conclusion accepting the Report on the Implementation of the Constitutional Act on the Rights of National Minorities for 2007. This part of the project was funded by the EU to the amount of EUR 500.527.511. which regulates benefits for employing national minorities. which in comparison to the previous year was a 110% increase in the funds from the State Budget. At the session of 17 July 2008.158 members of national minorities (1. which is an increase of 55% in relation to the previous year. both in the bodies of state administration and local self-government.500.Judiciary and Fundamental Rights. and that in 2008 it is planned to recruit an additional 226 (224 in state administration bodies and 2 in professional services and offices of the Government of the Republic of Croatia).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Report shows further progress in the realisation of the rights of national minorities.000.2009 Rights of National Minorities for 2006. In addition. with a view to fulfilling the benchmarks for the opening of negotiations on Chapter 23 .989 civil servants and 169 employees) in state administration bodies and in state administration bodies in the counties. funds available amount to HRK 43.000. and Offices of the Government of the Republic of Croatia for 2008 indicates that in the bodies covered by the Recruitment Plan there are 2. The Action Plan was adopted as part of the accession negotiations of the Republic of Croatia to the European Union. Montenegro. The Report shows further progress in the realisation of all the rights of national minorities. funds are in place to the amount of HRK 41. As at 1 November 2008. the amount of HRK 131. For 2009.270 was allocated from the State Budget. Employment of national minorities The Central State Office for Public Administration collects and processes data on the employment of national minorities in the bodies of state administration and in the administrative bodies of local self-government. Preparation is underway to collect and process the said data for 2008. Hungary. 62 . the Civil Service Recruitment Plan for State Administration Bodies. which foresee the number of national minority members whose employment must be planned. County of Meimurje). 2006 saw the creation of an overall legal framework to regulate the said rights in detail. Professional Services. The funds provided for the project will be used to build a road. which the Government of the Republic of Croatia adopted on 25 June 2008. In relation to national minorities. In the State Budget of the Republic of Croatia for 2008.031 members of national minorities. which is a 5% increase over the previous year.332 was disbursed on the implementation of the Constitutional Act on the Rights of National Minorities. in March 2008 the Croatian Parliament passed the Decision on the ratification of the Agreement between the Republic of Croatia and the Republic of Macedonia on the Protection of the Rights of the Croatian National Minority in the Republic of Macedonia and of the Macedonian National Minority in the Republic of Croatia. Romania. analyses the situation and monitors the progress achieved. construction work began on the infrastructure of the Roma settlement of Parag (NedelišÊe Municipality.000 and co-financed by the Republic of Croatia to the amount of EUR 167. and in the judiciary.

000. At its session of 27 March 2008.5 million. the implementation of the National Programme for the Roma. among which are four representatives of the Roma minority. housing and spatial planning. The Commission has 27 members and.330. the Government appointed the head and members of the Working Group for the Monitoring of the Action Plan for the Decade of Roma Inclusion 2005-2015. As part of the IPA 2008 Programme. The total value of the work planned within these projects is EUR 4. 63 .000. the Office continued to implement measures included in the National Programme for the Roma. work commenced in the settlement of Parag in the municipality of NedelišÊe. the 7th World Roma Congress was held under the auspices of the Government of the Republic of Croatia.000 to the Matica SlovaËka Miljevci for the construction of the Croatian-Slovak Centre in Miljevci. held from 27 to 29 March 2008 and from 10 to 12 April 2008.429. With the Decision of the Government of the Republic of Croatia dated 24 April 2008. The lectures were presented by representatives of the competent ministries and government offices.238. Veterans Affairs’ and Intergenerational Solidarity was appointed as the Chair of the Commission. it is proposed to build infrastructure in two more Roma settlements in the County of Meimurje. Those attending the seminar were informed about the exercise of the rights of national minorities in the Republic of Croatia. further funds to the amount of HRK 500. and HRK 150. professors from the Faculty of Political Sciences of the University of Zagreb and lecturers from the International Centre for the Education of Journalists. A European Commission donation from the PHARE 2005 and 2006 Programmes. employment and social welfare.000 were remitted to the Serbian National Council in Zagreb for its regular operation. and an analysis of reporting in the media with special focus on the Roma. Two seminars were organised on training for leaders and representatives of Roma associations and organisations.429 is co-financed from the State Budget of the Republic of Croatia. The Deputy Prime Minister and Minister of the Family. Pursuant to the Decision of the Government of the Republic of Croatia of 12 September 2008. water and power supply) in 4 Roma settlements in the County of Meimurje.000 was provided from the budgetary reserve of the State Budget of the Republic of Croatia for the said Congress.000. Conference on the Rights of National Minorities − HRK 120. POLITICAL CRITERIA Funds for the needs of national minorities Pursuant to the Decision of the Government of the Republic of Croatia dated 18 April 2008 approving funds from the budgetary reserves of the State Budget of the Republic of Croatia for 2008.071. In February 2008. with co-financing from the State Budget to the amount of EUR 833. the National Policy for the Promotion of Gender Equality. 9 representatives of the Roma national minority have also been appointed. On 5 June 2008.560. the Action Plan for the Decade of Roma Inclusion (20052015) in the part relating to education. of which EUR 1. Programme for National Minorities − HRK 380. the Government of the Republic of Croatia adopted a Decision appointing the president and members of the Commission for Monitoring the Implementation of the National Programme for the Roma. for which the European Commission has approved funds to the amount of EUR 2. healthcare. and resources from the State Budget of the Republic of Croatia for the Roma Assistance Project will be used to build complete infrastructure (roads.000 to »eška Beseda Donji Sreani for the reconstruction and adaptation of the Czech Centre. funds were provided from the budgetary reserves to the amount of HRK 100. HRK 200. On 24 October 2008.I. Funds from the State Budget of the Republic of Croatia for 2008: Programme for the Roma − HRK 2. in addition to representatives of relevant ministries and offices. National Programme for the Roma In 2008.

which had been accepted by the Croatian Parliament. along with the Ombudsman and three deputies. the Ombudsman had received 1. In 2008. complaints from persons deprived of their liberty 64 . along with recognition of independence. will have to be amended. the competent authority of the United Nations formally granted the Ombudsman “Status A” as the national institution meeting the criteria of the “Paris Principles”. through its Committee on the Constitution. through a special Conclusion. Through the said amendments to the Constitution. the Ombudsman became the central anti-discrimination body in charge of supervising all activities to be conducted in the area of suppressing discrimination. increased funds from the Budget allowed for the recruitment of 8 new employees. The objective of the proposed amendment is to prescribe the general duty of the Ombudsman (as the person authorised by the Croatian Parliament) to protect and promote human rights. To draw up the Action Plan for the Decade of Roma Inclusion for 2009. entails special obligations in terms of reporting to the bodies of the United Nations concerning the implementation of human rights conventions in Croatia. the 1992 Ombudsman Act. Concerning complaints. on the proposal of the Ombudsman. it is necessary to remove all doubts as to whether the Ombudsman may be entrusted by law with certain powers in relation to court administration and legal and natural persons. mostly relating to the work of the judiciary (298). The said recruitment served to fulfil part of the plan to strengthen the institution. that is. which lies outside the competence of the institution. Standing Orders and Political System.4. accepted it and submitted it to the Government of the Republic of Croatia. In June 2008. so that the Office. At the beginning of the year. physical planning and environmental protection (147). which is one of the essential criteria for obtaining the status of a national institution for human rights included in the United Nations “Paris Principles” of 1993. Such status. the Croatian Parliament reviewed the Report on the Work of the Ombudsman for 2007. At the same time. If the initiative is accepted.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . To draw up the 3rd Report on the Implementation of the Framework Convention for the Protection of National Minorities. the Ombudsman forwarded a formal initiative to the Croatian Parliament. To implement the Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities. The second largest group of complaints were those relating to construction. OMBUDSMAN A) ACHIEVEMENTS IN 2008 Through the passing of the Anti-discrimination Act in July 2008.2009 B) KEY PRIORITIES To implement the Constitutional Act on the Rights of National Minorities. in accordance with the proposal and initiative made by the Ombudsman in the Report on the Work of the Ombudsman for 2007. 1.171 new cases. by 7 October 2008. On 19 September 2008. already quite obsolete in some of its provisions. on 3 June 2005. To organise a conference on the rights of national minorities. so that measures could be taken to ensure the efficient work of the competent state bodies and bodies vested with public power. now has 18 advisors and 10 expert assistants and clerks. the constitutional provisions on the Ombudsman. To draw up a Report on the Implementation of the Constitutional Act on the Rights of National Minorities. To strengthen the administrative capacity of the Office for National Minorities. the Ombudsman entrusted the Government with the preparation and submission of the Proposal of the Act on Amendments to the Ombudsman Act to the Croatian Parliament at the latest by the end of 2008. To draw up the Report on the Implementation of the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion (2005-2015). to amend Article 92 of the Constitution of the Republic of Croatia.

all activities aimed at accelerating the pace of the return process and ensuring its sustainability continued. To implement the project “Support to the Application of the Anti-discrimination Act” which was approved as part of the Community Programme for employment. regional and community self-government (37). the status-related rights of citizens (44). POLITICAL CRITERIA (116). which will be used to organise the training of civil servants. More than half of the flats are available. complaints connected with the realisation of the rights arising from pension insurance (115). social inclusion and protection. to resolve all pending cases (2. the exercise of rights arising from health insurance (40). and in the areas of special state concern housing care was provided for a total of 873 former tenancy right holders (91%). by the beginning of December housing care was provided for 1.I. problems concerning local. Legal and institutional framework A) ACHIEVEMENTS IN 2008 In 2008. To give a new impulse in 2008 to the process of providing housing care to former tenancy right holders within and outside the areas of special state concern. To submit the new Ombudsman Act for legislative procedure. working conditions. By December 2008.427 cases involving former tenancy right holders within and outside the areas of special state concern by the end of 2008 (427 cases outside the areas of special state concern and 1. During the implementation of the plan for 2008.000 cases within such areas). etc. all 427 planned flats had been purchased. The Action Plan for the Accelerated Provision of Housing for Former Tenancy Right Holders (FTRH) by the end of 2009 was accepted by the Government of the Republic of Croatia on 25 June 2008 and sent to the European Commission. and for some FTRH.5. especially regarding the issue of housing care for former tenancy right holders. 1. and a solution for the remaining persons concerned will be reached by the end of the year. outside the areas of special state concern. To actively participate in the work of the European Network of Equality Bodies (Equinet). 65 . employment and administrative relations (70). To resolve the issue of working premises for the Office of the Ombudsman.144) within and outside the areas of special state concern on a turn-key basis by the end of 2009. and a promotional campaign for the purpose of suppressing discrimination and ensuring the effective implementation of the Act. the reconstruction of houses and flats will be completed by the spring of 2009. B) KEY PRIORITIES To further strengthen the Office in terms of human resources and material resources as the central body competent for the suppression of discrimination. gender equality and the fight against discrimination for the period 2007-2013 (PROGRESS). and complaints against the work of the police (34). the Government of the Republic of Croatia assumed the following obligations: to resolve 1.5. RETURN OF REFUGEES 1. the provision of housing.1.300 former tenancy right holders (91%).

219 former tenancy right holders had been provided with appropriate housing care in the areas of special state concern. and (c) 1. Provision of housing care for former tenancy right holders (FTRH) in areas of special state concern (ASSC) A) ACHIEVEMENTS IN 2008 Up to the beginning of December 2008. a total of 1. The majority of these families moved into or are moving into the allocated available houses and flats.2.e. a total of 5. except for those beneficiaries who are currently receiving construction materials and whose tenement houses are currently being reconstructed. 66 . Provision of housing care for former tenancy right holders returning to the territory of the Republic of Croatia outside the areas of special state concern A) ACHIEVEMENTS IN 2008 A total of 4. because the applicants had failed to complete their applications and many such applicants have been inaccessible for a long period. By the end of 2008.5.444 applications were found wanting and will be suspended. There are currently around 1. mostly because they relate to areas of special state concern or because beneficiaries had failed to follow the instructions to complete their applications.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . mostly in the form of reconstruction of damaged and destroyed tenement houses and family homes and the eviction of some of the current users of such flats. which is to be ensured from the State Budget for 2009. which should be completed by the spring of 2009.100 flats in tenement houses under reconstruction.2009 1. 559 applications for housing care outside the areas of special state concern had been submitted by the deadline for submitting applications. while the remaining number of flats needed will be ensured through the eviction of current users of such flats in the areas of special state concern and the reconstruction of family homes owned by FTRH. their right to housing care was determined. B) KEY PRIORITIES In 2009.000 former tenancy right holders in the areas of special state concern. For the programme to be fully accomplished.5. which should be accomplished by the end of 2009. 1.3.481 requests for housing care in the areas of special state concern still remain to be resolved. a total of 835 flats had been purchased outside the areas of special state concern (flats purchased through the Croatian Government Real Estate Agency) and allocated to beneficiaries whose applications had been approved. (b) 1. up to the beginning of December 2008. Forestry and Water Management.498 families were granted approval for housing care.917 applications remain unresolved. which was the end of September 2005. it was foreseen to provide housing care for 1. around HRK 400 million is required. 873 FTRH had been provided with housing care. i. In 2008. With a view to accelerating the programme of housing care in the areas of special state concern. Housing care for the remaining number of accepted requests filed by FTRH will be provided in the areas of special state concern by the end of 2008 and in 2009 according to the programme of the Ministry of Regional Development. By October 2008: (a) 1.

5. including cases of occupied agricultural land and compensation of damage for investments in occupied property. The Independent Democratic Serb Party (SDSS) is involved in resolving the cases. In addition. which will mostly be secured through purchase on the market in 2009. It is planned to finalise all the mentioned property repossession cases by the end of 2009 at the latest. In 2009.I. the programme has almost been completed. POLITICAL CRITERIA B) KEY PRIORITIES The administrative procedure of determining the right to housing care outside the areas of special state concern was concluded in October 2008 with a view to defining the final number of beneficiaries who must be provided with housing by the end of 2009. the beneficiary and the Ministry. Seven users of land belonging to approximately 30 owners have so far been identified. B) KEY PRIORITIES Resolution will be sought for all remaining property repossession cases. As 350 cases of devastated houses sequestered by the Republic of Croatia have been reconstructed so far. of which two were concluded in 2008 by the signing of an out-of-court tripartite settlement between the owner. Repossession of occupied private property A) ACHIEVEMENTS IN 2008 Repossession of occupied private property by owners was almost completed by the end of 2005. The remaining cases are being processed. Eviction court proceedings were launched by the Ministry of Regional Development. it is planned to provide a total of 663 flats. 16 applications for the payment of compensation for investments in occupied property have been received.4. assuming the payment of compensation on behalf of the owner. Eviction court proceedings were launched in all cases where temporary users refused to leave occupied property pursuant to administrative eviction orders and where it had been established that they possessed other property or that they had refused the alternative accommodation offered. Funds for this purpose have been earmarked in the State Budget. So far. 1. Forestry and Water Management (MRDFWM). Court proceedings relating to repossession of property cover 37 cases of occupied property. Court proceedings have been accelerated in all cases. For this purpose. there are a small number of cases involving the reconstruction of devastated property (75) whose owners submitted reconstruction applications in 2007 and 2008. 67 . it is necessary to allocate around HRK 500 million from the State Budget in 2009. repossession is underway and should soon be completed. Pursuant to the Conclusion of the Government of the Republic of Croatia of 7 December 2006 on compensation for investments in occupied property. At the end of 2008. the Ministry will apply the procedure of offering an out-of-court settlement to all temporary users and owners of property. and several court eviction cases have been registered. A Conclusion defining the urgent resolution of the issue has been submitted for Government procedure (the conclusion will be adopted by the end of December 2008). The issue of repossession of agricultural land in the hinterland of Zadar is being dealt with jointly by the Ministry of Justice and the Ministry of Regional Development. The remaining cases include situations where owners are inaccessible or where their property has been sold. Forestry and Water Management through the State Attorney’s Office after all administrative instruments had been exhausted. there were 9 remaining cases of occupied property in Kistanje.

HRK 760 million (50% of which is a loan from the European Investment Bank.5. In March 2008. It is planned to proceed with the process of resolving appeal proceedings.5.5. In 2009.2009 1. Reconstruction of the housing stock damaged or destroyed in the war A) ACHIEVEMENTS IN 2008 During 2008. such as property relations and the like. etc. exchange of the right to reconstruction. resulting in the reconstruction of 65 facilities.). as well as through programmes financed from State Budget funds. The CEB V programme provides for the reconstruction of 139 schools. which should round off the programme of reconstruction of the housing stock damaged in the war in Croatia. provides for the reconstruction of 322 utilities and social infrastructure facilities in about 90 towns and municipalities in the 2004-2008 period. amounting in total to HRK 981 million.400 houses with a higher degree of damage. The EIB I programme. In 2009. and through EIB II which commenced in 2006. the reconstruction of 257 facilities had been completed with the construction of 38 facilities underway and works on 27 facilities under preparation. it is planned to reconstruct up to 1. of which 900 were fully reconstructed. and incentives for the social and economic recovery of war-affected areas A) ACHIEVEMENTS IN 2008 The implementation of projects related to the reconstruction and construction of utilities and social infrastructure in war-affected areas continued in 2008 through the EIB I and CEB V programmes which commenced in 2004. There are fewer than 550 applications for reconstruction left to resolve. By October 2008. and the remaining 50% provided from the State Budget). The new procedure was defined through changes to the Act on Areas of Special State Concern in July. By October 68 .000 appeals against decisions on the right to reconstruction in second instance proceedings. and 500 financial incentives were paid for the reconstruction of houses with a lower degree of damage. a new procedure has been introduced to resolve some of the refused applications for reconstruction. with a total value of approx. 1. with funds provided in the same proportion from a loan from the Development Bank of the Council of Europe and the Croatian State Budget. Creating sustainable return conditions − infrastructure reconstruction and construction programmes.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . of which around 700 houses through the organised reconstruction of houses with a higher degree of damage.6.400 houses. and it should also provide for the organised reconstruction of homes through the programme of housing care (this relates to 800 negative applications for reconstruction − persons who appealed against the degree of damage now have the right to housing care through the award of construction materials). and around 700 houses with a lower degree of damage. There are 9. B) KEY PRIORITIES It is planned to complete the reconstruction of the remaining housing stock damaged or destroyed during the war. it is planned to complete the programme. unresolved property rights relations. and there are several other cases which are currently under appeal proceedings and which will be resolved positively. Appeals against decisions on the right to reconstruction are being addressed in an energetic manner. reconstruction was started on 1. The foregoing should enable a large number of rejected applications for reconstruction to be resolved positively. mostly subject to the resolution of other issues. except for individual cases (relocation.

Since the financed projects were selected for funding according to the same criteria as in the CARDS 2003 project. EIB I and II and CEB V.2 million has been earmarked for the reconstruction and construction of utilities and social infrastructure and development programmes in the areas of special state concern. Under the CARDS 2003 Programme Sustainable Development in Returnee Areas. Programme implementation is scheduled up to 2010. The end of the programme is envisaged in 2009. and small and medium entrepreneurs. The fields targeted through the projects are also quite diverse and include the strengthening of the sustainability of the return process through economic revitalisation.680 sub-projects. in the relevant Regional Operational Programmes they were defined as priorities. The programme relates mostly to capital assistance and subsidies to farmers. Along with the said specific investment projects within the project and the amount of funds available. and the like. several specific investment projects have been financed in the Counties of Sisak-Moslavina and Vukovar-Srijem. All funds have been successfully used. The total value of the programme is EUR 300 million. creating jobs. The total value of CARDS 2003 is EUR 15 million in grants from the EU. The total value of CARDS 2004 is EUR 14 million. which should involve 27 facilities. the fostering of co-operation with civil society. the strengthening of entrepreneurship. B) KEY PRIORITIES It is planned to continue implementing all three programmes for the reconstruction and construction of utilities and social infrastructure (EIB I. POLITICAL CRITERIA 2008. Lika-Senj. Areas − County Development Capacity. and those still being implemented should be completed by the end of January 2009). and to ensure budget funds for this purpose in the coming year. 69 . The implementation of the EIB II programme entitled “Integral Development of the Local Community” was intensified in 2008. new facilities are also being built and projects focusing on the economic and social recovery of areas of special state concern are being financed. etc. and 4 new Regional Operational Programmes have been developed in the Counties of Karlovac. In 2009. EIB II and CEB V) and other projects financed from the State Budget. By October 2008. mostly for the reconstruction and construction of utilities and social infrastructure. 15 are currently being reconstructed and an additional 12 are being prepared for reconstruction. Just as within the CARDS 2003 project. The Programme encompasses the reconstruction. which is intended not only for concrete investment projects (of which most have been successfully implemented. HRK 815. Brod-Posavina and Požega-Slavonia. upgrading and building of infrastructure facilities. the programme will include other parts of the Republic of Croatia. The financed projects were selected according to the priorities set out in the Regional Operational Programmes for the said two counties and they target a wide spectrum of areas such as the promotion of entrepreneurship. 280 facilities are under construction and 130 facilities are being prepared for construction. In addition to war-affected areas. a total of 111 schools had been reconstructed. certain investment projects in the 4 mentioned counties were funded through the CARDS 2004 project Sustainable Development of Croatia’s War Affected. To date. tradespersons and craftspersons. In total. it is planned to commence work on 220 subprojects and to finish work on around 400 facilities. Apart from the reconstruction of infrastructure damaged and destroyed in the war. particularly from the loan programme of the World Bank “Social and economic recovery of areas of special state concern (EBRD)”. the capacities of the Counties of Sisak-Moslavina and Vukovar-Srijem for development management in their respective territories have been strengthened. 113 facilities had been completed. as well as environmental protection projects.I. local self-government submitted around 1. 523 sub-projects involving utilities and social infrastructure and nominated by municipalities and towns have been included in the programme. but also to strengthen the capacities of the counties for development management in their respective territories. of which 750 were approved. 50% provided by a loan from the European Investment Bank and the remaining 50% provided from the State Budget. and improving the atmosphere of social acceptance. which includes the implementation of the three utility and social infrastructure programmes.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .5. GospiÊ. of which 124 applications have been resolved. early old age. Serbia and Montenegro is expected in connection with the return of refugees. Karlovac. instructions and professional support. in which it eliminated the restriction for the submission of an application for the convalidation of the years of service for the period from 1991 to 1995. Furthermore. Sisak and Vukovar. For the purpose of continuing the programme in 2009. employment. For 2008.2009 1. 1.5. Its Central Service has drawn up Instructions for the application of the Ordinance. of which 129 applications have been resolved. According to the data provided by the Institute. This amendment was performed at the session of the Government of the Republic of Croatia of 20 June 2008. The Ordinance on the procedure for the convalidation of decisions and individual acts in the area of pension insurance was adopted pursuant to the Conclusion of the Government of 18 December 2007.539 applications for the convalidation of years of pensionable service were submitted. as will co-operation in resolving issues concerning the remaining Bosnia and Herzegovina refugees in the Republic of Croatia. a total of 3.600). Most applications for the convalidation of the decision on the right to pension were submitted in the Regional Services of Karlovac. In August 2008.400 family houses were reconstructed from 2002 until December 2008 as part of the return and reconstruction programme in Bosnia and Herzegovina through the award of construction materials financed by the Croatian Government. and does not prescribe a deadline for submitting an application.7. The Government of the Republic of Croatia regulated the matter of convalidation further through amendments to the Regulation implementing the Convalidation Act of 20 June 2008. of which 4 have been resolved. it is planned to distribute construction materials for the reconstruction of at least 550 houses in Bosnia and Herzegovina. along with application forms. or until 1997 for the area of the Croatian Danube region. for which it is necessary to allocate around HRK 50 million from the State Budget. Intense co-operation with Bosnia and Herzegovina will continue through the financing of the return and reconstruction programmes initiated in Bosnia and Herzegovina. and has provided for IT support. followed by the Regional Services of Šibenik. Given that the Ordinance in its content corresponds to the content of the said Regulation in the part relating to pension insurance. prescribes the preclusive deadline of one year for submitting an application. Osijek and Zadar. were submitted (old age. thus enabling all interested eligible parties to submit an application for convalidation with an open deadline. The Croatian Pension Insurance Institute is in charge of applying the Ordinance. B) KEY PRIORITIES Further progress in bilateral co-operation with Bosnia and Herzegovina. which. amongst other things. Convalidation For the purposes of applying the Convalidation Act. regulated by the Convalidation Act. Most applications were submitted in the Sisak Regional Service (around 1. child’s allowance. social welfare and protection of wartime disabled veterans and civilians.8. pension and disability insurance. Vukovar. it was necessary to amend the Regulation. 70 . Co-operation with neighbouring countries to accelerate the return of refugees A) ACHIEVEMENTS IN 2008 A total of 2. on 9 April 1998 the Government of the Republic of Croatia adopted the Regulation for the implementation of the Convalidation Act in the administrative area of labour. and has also drawn up the standard form for decisions and has organised working meetings in its regional services to ensure the best possible and most effective organisation in applying the Ordinance. and a total of 45 applications for the convalidation of the decision on the recognised right to pension insurance. disability and family). from the date of entry into force of the Ordinance until 16 September 2008. distribution of construction materials began for 350 houses. a total of 175 applications for the realisation of the right to pension. it is planned to allocate HRK 51 million from the State Budget for the programme of return and reconstruction in Bosnia and Herzegovina through the award of construction materials.

in which the Republic of Croatia has also fully co-operated with the ICTY. and the presentation of evidence by the defence is currently underway.. in June 2008 the Office of the Prosecutor filed an application with the ICTY to issue a court order pursuant to Rule 54 bis ordering the Government of the Republic of Croatia to produce specific documents. and the presentation of evidence by the Prosecution is currently underway. In the Prosecutor v. the main trial began before the County Court in Zagreb. on 20 October 2008 Croatia sent a report to the Trial Chamber and to the Office of the the Prosecutor concerning all the efforts made to identify the location of the missing documents. On 30 May 2008. in the segment concerning relations with the ICTY. The trial against six defendants began on 26 April 2006. and several supplements to earlier requests. International Legal Assistance and Co-operation with the International Criminal Courts of the Ministry of Justice. Norac was convicted to 7 years imprisonment by a first-instance judgement.6. it will also be involved in the enforcement of these decisions and in the resolution of residual matters. Pursuant to the UN resolutions in force concerning the exit strategy of the Tribunal. POLITICAL CRITERIA 1. As far as the criminal prosecution of war criminals before domestic courts is concerned. providing the possibility of hearing witnesses and suspects. the Government of the Republic of Croatia continued to co-operate with the International Criminal Tribunal for Former Yugoslavia (ICTY). CO-OPERATION WITH THE INTERNATIONAL CRIMINAL TRIBUNAL FOR FORMER YUGOSLAVIA A) ACHIEVED IN 2008 In 2008. In 2008. In September 2008. Co-operation with the ICTY involves the continuous delivery of documents and other materials of varying degrees of confidentiality by various state administration bodies and judicial bodies of the Republic of Croatia. The Chief Prosecutor of the ICTY. Gotovina. A total of 808 requests for assistance have been delivered to Croatia to date. B) KEY PRIORITIES In 2009. After the holding of a session. 71 . the case of Ademi/Norac must be mentioned in the context of co-operation with the ICTY. All the requests have either been met or are pending. since the Trial Chamber was not convinced of either the existence of the non-existence of the requested documents. and to impose a stricter sentence in the convicting part. the Republic of Croatia received a number of new requests for assistance from the ICTY Office of the Prosecutor. sent a letter to the competent bodies of the Republic of Croatia to thank them for the manner in which the ordered measures of supervision were conducted during the defendant’s provisional release. Judge Antonetti. Mr Serge Brammertz. will deal with proceedings conducted before the Trial Chamber and Appeals Chamber of the ICTY. by which the order of the Trial Chamber was fulfilled. and in June 2007. The indictment was adjusted to the Croatian criminal legislation. and extended the period for the Republic of Croatia to conduct investigation with a view to establishing whether the requested documents existed. the Directorate for International Co-operation. In conformity with the order. Concerning two partially met requests. while Ademi was acquitted of all charges. »ermak and MarkaË case. the trial began on 11 March 2008. must be highlighted in the context of other war crimes proceedings of The Hague Tribunal against Croatian citizens. visited the Republic of Croatia on two occasions during 2008. the ICTY issued an order deferring its decision on the Prosecutor’s motion. presiding judge of the Trial Chamber in the case PliÊ et al. when he met with the highest officials responsible for the co-operation of the Republic of Croatia with the ICTY. This case was referred to the Croatian justice system for further processing under Rule 11 bis in September 2005. The case of Prosecutor v. providing the possibility of viewing documents and evidence. The county state attorney office in Zagreb lodged an appeal on the judgement with a motion to the Supreme Court to reverse the acquitting part of the judgement.I. and providing on-site assistance to the work of investigating teams of the ICTY Office of the Prosecutor. PrliÊ et al.

the countries in the region committed themselves to developing similar databases. and Zadar. Seventeen judges participated in the workshop and the “Reminder for the Practical Application of Video Links for the Cross-Border Hearing of Witnesses” was presented on this occasion. Concerning the use of video links. and will provide international legal assistance in criminal matters.2009 War crimes trials A number of meetings were held in 2008 concerning war crimes. the issue of safety of witness testimony/maintaining the integrity of witness testimony. this provision will come into force on 1 January 2009. Županja. At the Regional Conference held in May 2008 on the Brijuni Islands. appropriate defence. and support before the court for 110 witnesses. passed on 19 September 2008 (OG 113/08). where 4 topics were no longer on the agenda: the use of video-links in proceedings before Croatian courts. Agreement was reached on a direct and immediate exchange of data. Croatia will report at lower-level technical meetings on the progress achieved concerning the issues that were taken off the agenda. The result of difficult and intensive efforts was acknowledged at the Platform of the Ministry of Justice. The next issue where progress was acknowledged concerns the safety of witness testimony/maintaining the integrity of witness testimony. Regarding defence by court-appointed defence counsels. and provided psychological support for 127 witnesses. 72 . The Ministry of Justice was involved in the project of establishing and broadening the system of support to victims of criminal offences. not only for the participants in the procedure. and the Platform of the Ministry of Foreign Affairs and European Integration (MFAEI) on 21 October 2008. with which all presidents of courts must comply when appointing court-appointed defence counsels. and at the municipal courts in Vukovar. The list has been posted on the Croatian Bar Association’s website. In 2008. descriptions of criminal offences. Accommodation was provided for 10 witnesses. The Platform of the Ministry of Justice was held on 26 September 2008. a list of attorneys interested in undergoing training in providing defence in these types of cases was drawn up. data on victims and witnesses. the Department made contact with a total of 372 witnesses.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . as was a list of those who already have some experience in providing defence in war crimes cases. this topic was also removed from the Platform’s agenda. Ilok. judgements in absentia and standards of prosecution. Pursuant to the Act on Amendments to the Courts Act. The State Attorney’s Office has been active in developing regional co-operation. the jurisdiction of county courts has been extended so that all county courts will implement and provide support to witnesses and victims before the court. and regional co-operation. Vinkovci. Since the Criminal Procedure Act is currently undergoing parliamentary procedure. and all other relevant data. on 23 September 2008 a workshop was held at the County Court in Zagreb in co-operation with OSCE entitled “The use of video links in international legal assistance” for criminal and investigation judges at county courts. The Supreme Court dispatched a letter to all county courts enclosing this list. but also for all those who in any way gain knowledge in the course of the investigation procedure. and such services have also been established at the county courts in Osijek and Koprivnica. through the establishment of a Department for Support to Witnesses and Victims in Court Proceedings. ensured legal assistance for 122 witnesses. data concerning evidence. The training of interested attorneys will be conducted by the Lawyers’ Academy in co-operation with the Judicial Academy in the first quarter of 2009. which will no longer be on the Platform’s agenda. where OSCE and EC representatives expressed their positive view on these issues. The remaining two open issues. as well as a number of meetings at a technical level. This exhausted the topic of video links. With this agreement. The further administrative strengthening of the Department for Support to Witnesses and Participants in War Crime Proceedings is underway. were the topic of discussion at the MFAEI Platform. The project resulted in the establishment of a support service at the County Court in Vukovar. which will contribute to achieving better results and efficiency in processing war crimes. The new Criminal Procedure Act provides for the secrecy of investigation. It has also developed a database on war crimes.

in co-operation with the UNDP. The Instruction specifies that state attorneys must submit a report with the SAO by 1 January 2009 on the actions that were undertaken when reviewing each case in which the procedure is pending. and provides clear instructions with which state attorneys must comply when dealing with such cases. the Instruction also provides for the sanction of dismissal of any state attorney who does not comply with this or any of the earlier instructions. resources. by themselves. an Action Plan will be developed by the end of 2008 which will define the strategic approach to resolving the existing 700 incidents related to war crimes. In addition. will be monitored. Concerning the issue of standards of prosecution. and competent authorities for implementing these measures. or in relation to other evidence. as part of a project concerning the expansion and institutional strengthening of the system of support to witnesses and victims of criminal offences. the State Attorney’s Office of the Republic of Croatia (SAO) issued a number of mandatory instructions for processing war crimes cases. The new provisions of the Criminal Procedure Act also grant more authority to the State Attorney’s Office in relation to reopening proceedings (the possibility for the state attorney to initiate the reopening of proceedings). The provisions of the Criminal Procedure Act in force currently allow for a reopening of in absentia proceedings. The Criminal Procedure Act is currently undergoing parliamentary procedure and its passing is expected in the autumn or winter Parliament session. Attorneys will be trained in providing defence in penal war crimes cases. which will define a strategic approach to the resolution of the existing 700 incidents related to war crimes. provided that in the motion for the reopening of proceedings new facts and/or evidence are presented which. The legislative basis for such measures has already been prepared as part of the Act on Amendments to the Courts Act (OG 113/08). leading to an acquittal or to a conviction pursuant to a more lenient law. With a view to processing and punishing war crime perpetrators. The implementation of the Action Plan. 73 . The new Criminal Procedure Act extends the possibility of reopening proceedings in such a way that the convicted person does not have to be available to the Croatian justice system. POLITICAL CRITERIA Judgements rendered in absentia have proven to be one of the most burning issues. will facilitate the introduction of a service of support for witnesses and victims of criminal offences at four pilot courts. B) KEY PRIORITIES In 2009. A new trial is conducted in the presence of the defendant.I. the Ministry of Justice. and the deadlines for their implementation. while the provisions concerning the reopening of proceedings will enter into force on 1 January 2009. and the evidence and judgement rendered in absentia are evaluated in the course of the new trial. This Action Plan will clearly define the measures. would modify the existing judgement to the benefit of the convicted party. The Instruction issued on 9 October 2008 has particular importance since it clearly defines the standards for prosecuting war crimes. or in which the perpetrator has not been discovered.

This agreement foresees the establishment of a Joint Committee as a representative body of the signatory countries. and co-operated with international partners. one of the main achievements of the Croatian chairmanship of the Initiative in 2007/2008. In 2008. it supervised the activities and projects of the Initiative. it will foster the organisation of work of the established network of contact persons in its own state administration and encourage co-ordinated co-operation among CEI members. the Republic of Croatia will intensively advocate the strengthening of regional ownership. In the coming period. human capital. the Republic of Croatia will advocate the implementation of common activities in the area of security and defence co-operation. the Republic of Croatia. the Republic of Croatia has continued to play an active role within the South East European Co-operation Process (SEECP) and participated in the SEECP summit held on 21 May 2008 in Pomorje. the promotion of regional tourism. the Republic of Croatia began activities related to its acceptance as a full member of the MLF. the Republic of Croatia will endeavour to exert a positive influence on the political and economic situation in the region. The Republic of Croatia has devoted special attention to regional projects within the RCC. with a stress on priority action areas: economic and social development. By acting in harmony in multilateral organisations. co-ordinated co-operation and the implementation of projects of common interest. lobbied for the funding of projects. Within the process of the Euro-Atlantic integration of the Republic of Croatia. the Secretariat was introduced for the first time. For this purpose. Multilateral co-operation In terms of regional co-operation. transport and internal affairs. Italy. on 8 October 2008. the Republic of Croatia continues to actively advocate the principles of regional ownership and project-oriented co-operation. the Republic of Croatia will focus its co-operation on the area of environmental protection and the development of human resources. SEECP). and the Work Programme of the Secretariat from 2008 to 2011 was endorsed. the judiciary and internal affairs. in Bulgaria.7. and management of the maritime domain. The CEFTA 2006 Agreement has been applied in all the signatory countries since the end of 2007. and the development of infrastructure. which is assisted in administrative matters by the Secretariat with its headquarters in Brussels. As part of the Adriatic-Ionian Initiative (AII) in the coming period.7. and with the transfer of its authority to the Regional Co-operation Council (RCC). Based on a policy paper on the enlargement of the MLF adopted at a meeting in Budapest in May 2005. and Croatia). continued to participate in initiatives and working groups initiated by the Stability Pact. Slovenia. organised regular meetings. The meeting of the Joint Committee of the CEFTA 2006 Agreement was held in Chisinau.2009 1. at meetings of the MLF Political-Military Working Group (PMWG). especially in neighbouring countries.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Quadrilaterale is a training ground for dialogue on a broad range of common topics concerning the EU and South East Europe. By selecting crossborder co-operation projects and by proposing common regional activities. REGIONAL CO-OPERATION 1. an implementing plan was accepted 74 . The focus of cooperation will be on the establishment of traffic connections (the building of the Adriatic-Ionian road). The Republic of Croatia also endeavours to achieve the status of full member in the military sphere of the Quadrilaterale − the Multinational Land Force (MLF). With the Stability Pact for South Eastern Europe finally ending its operations in February 2008. as a member of the RCC. At the Joint Committee meeting. As part of the Central European Initiative (CEI). CEFTA signatory countries concluded an Agreement with the Kingdom of Belgium concerning certain benefits to ensure a suitable legal status for the assets and staff of the Secretariat and its undisturbed work on the state territory of the Kingdom of Belgium. infrastructure. As chair of the Disaster Preparedness and Prevention Initiative (DPPI). The Republic of Croatia will continue co-operation in the field of fire protection.1. Further strengthening of the role of RCC national co-ordinators and bringing co-operation to a new level are expected. the Republic of Croatia will advocate joint co-ordinated action within regional initiatives (CEI. Co-operation in the field of small and medium enterprises is also one of the constant areas of co-operation within AII. as was the Decision on Financial Contributions of CEFTA Parties to the Budget of the Secretariat. in Moldova. In line with this. and the Political-Military Steering Group (PMSG). Together with its partners within the Quadrilaterale (Hungary. The Republic of Croatia intends to remain fully committed to the strengthening of political dialogue with a desire to contribute to stability and security and to the accession of the countries in the region to Euro-Atlantic integration. and parliamentary co-operation. security co-operation.

Asylum. Border Control and Counterterrorism). In 2009. The common European perspective and the application of European standards are the bases of the co-operation that the Republic of Croatia will full-heartedly foster within the DCP.I. POLITICAL CRITERIA concerning the involvement of forces that the Republic of Croatia initially offered as its contribution to an MLF brigade (a brigade equivalent to an infantry company. The Republic of Croatia supports the pursuit of common goals to provide the framework for regional connections. Task Force for the Suppression of Commercial Fraud. Following the above. the Republic of Croatia will continue to advocate improvement of the co-ordination of activities aimed at the more intensive regional exchange of information and experience. and to ensure the optimum use of available resources. and SEMEC (SEE Military Education Co-operation). strengthening the co-ordination of projects within SEDM. through a liaison officer and employees of the line ministries. in the work of the Task Force on Trafficking in Human Beings. the Republic of Croatia and Macedonia) and states that have joined NATO’s Partnership for Peace Programme (Bosnia and Herzegovina. Within this 75 . The Republic of Croatia will invest efforts in the speedy signing and application of the newly revised Convention regarding the Regime of Navigation on the Danube. intensifying support to members of SEDM in joining NATO. and to improving cross-border co-operation. the Anti-Drug Task Force and the Anti-Terrorism Task Force. in the coming period the Republic of Croatia will also engage in activities related to the environmental protection of the Danube. the Republic of Croatia will continue to actively participate in SEDM working bodies. the Republic of Croatia will continue to co-operate in the work of the Alps-Adriatic Working Community (AAWC) through its representatives in working committees. and the building of good neighbourly relations through common projects. expert and project groups. The area of special interest for the Republic of Croatia within the DCP is environmental protection and sub-regional co-operation. smuggling and trafficking in human beings. especially in the work of the CBSC Task Force (Counter-proliferation. Within the Regional Centre of the Southeast European Cooperative Initiative (SECI) for combating trans-border crime based in Bucharest. The aim of the Southeast Europe Clearinghouse (SEEC) initiative is to exchange information and co-ordinate the efforts of allies and friendly countries in providing support to NATO candidates (Albania. The priorities in 2009 will be to intensify co-operation with a view to gaining full membership of the MLF and to assign a liaison officer to Udine (the initial proposal was to do this during the summer of 2009. In the coming period. SEESIM (Southeast European Simulation Network. in order to avoid overlaps. Montenegro and Serbia). and through the common projects of the AAWC. It will also advocate the joint co-operation of regions and the more active participation of local self-government. The Danube Co-operation Process (DCP) is a regional forum by which the Republic of Croatia is endeavouring to make its contribution to regional co-operation in the Danube basin. and stressed the following as its main goals: assigning SEEBRIG to a peace-support operation. and developing the capacities of SEEBRIG to act in crisis situations (Disaster Relief Operations − DRO). activities related to the assignment of a liaison officer to the MLF Headquarters in Udine are underway (negotiations and adjustments of the Agreement to define the status and obligations of liaison officers of the Armed Forces of the Republic of Croatia who will be assigned to this duty). after the brigade returns from the ISAF mission in Afghanistan. with observer status at the Political Military Steering Committee (PMSC). as well as all high-level meetings. Refugees Regional Initiative (MARRI) from April 2007 to April 2008. The Republic of Croatia will also advocate the more efficient implementation of the principle of regional ownership. Within the Forum of Southeast European Defence Ministers (SEDM). Within the Danube Commission (DC). and the definition of minimum requirements that the Croatian forces must meet to participate in the MLF brigade is expected. one medical team and 2-3 officers to work in MLF Command). The Republic of Croatia will continue to maintain observer status in the military component − SEEBRIG. acquiring full membership for states with current observer status in the MPFSEE and SEDM process. on their progress towards integration into Euro-Atlantic structures. traffic connections and efficient water management. representatives of the Republic of Croatia regularly attend the meetings of all working bodies: the Co-ordination Committee (SEDM-CC). with a view to more efficiently fighting illegal migrations. the Republic of Croatia will continue to actively participate. The Republic of Macedonia chaired the process for a period of two years (2008-2009). and the focus will remain on participation in projects which have proven to be successful. Following the successfully completed one-year chairmanship of the Migration.

besides Croatian ships and crews. with a view to preserving the character of regional ownership. The Ministry of Defence and the Armed Forces of the Republic of Croatia have been involved in two projects that connect the countries of the Adriatic-Ionian basin and the Mediterranean: the Adrion project and the V-RMTC (Virtual Regional Maritime Traffic Centre) project. and Serbia). two exercise planning conferences. Bosnia and Herzegovina. This mission will gather information on the condition and size of the transport markets. where the EC plans to introduce the first draft of the Treaty. at the end of May 2008. as well as one working meeting. co-operation will continue in line with the Operational Agreement for the Establishment of V-RMTC (signed at the end of 2006) in the form of working meetings. Kosovo. but will from now on be held once a year. The Republic of Croatia will continue to provide support to other partnership states in the field of exchanging experience in processes that the Republic of Croatia has already undergone. joint training. and achieving NATO/ PfP standards. and the realisation of common projects of interest for the region. and on expected problems and difficulties. as well as the promotion of co-operation within the Training Centre for International Military Operations. is planned for 18 November 2008. and Montenegro) through the organisation of joint exercises. On that occasion. Greece. Bosnia and Herzegovina. 76 . a mission of EC experts was announced to the countries in the region covered by the Treaty (Albania. The active participation in and encouragement of the continuous work of this forum is foreseen. If necessary and according to the available resources. seminars and workshops. Co-operation within Adrion will continue in 2009 according to the planned activities. The mission of experts visited the Republic of Croatia from 6 to 7 October 2008. In 2009. The Adrion project is focused on encouraging co-operation among the navies of the countries of the Adriatic-Ionian basin (Albania. as well as navy officers from Montenegro. As part of the V-RMTC project initiated for the purpose of establishing a Virtual Regional Centre for the supervision of maritime traffic in order to contribute to improving the safety of maritime traffic and the safety of countries that border the Mediterranean and Black Sea. and. Representatives of the Ministry of Defence regularly attend SEEC conferences which have until now been held every 6 months. Macedonia. the Republic of Croatia was the host of the ADRION 08 − LIVEX military exercise where. and exchange of information and data on maritime traffic through a central server. Serbia. Slovenia. The second round of negotiations. most of the co-operation is conducted through the Internet communication network (data exchange).Recognised Maritime Picture). Pursuant to the Decision of the Council of EU Transport Ministers of June 2008 authorising the European Commission to open negotiations on a “Transport Community Treaty with the Western Balkans”. the conditions will be created to initiate the second stage of the project (data exchange among local centres and maritime picture exchange (RMP . the ADRION 08 − CAX simulation was held within the framework of the project. mutual co-ordination by member states. training and exercises (computer and livex) with a view to improving international maritime co-operation.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Republic of Croatia. which include working meetings. Greece. Italy. skills and capacities that the Republic of Croatia has developed through its accession to Euro-Atlantic integration. ships and crews from Albania. Montenegro. and gives as its interest and priority the development of the Regional Centre for the Breeding and Training of Official Dogs and the Diver Training Centre. In the first half of 2008. practising standard operational procedures at sea. Therefore. and in the field of knowledge. Italy and Slovenia also took part.2009 initiative. in 2008 only one meeting of the V-RMTC working group was held. task force working meetings. the first round of negotiations on the Treaty on the Future Traffic Community was held on 24 June 2008 in Brussels under the auspices of the Slovenian EU Presidency. the Republic of Croatia advocates co-operation related to the implementation of specific projects. for the purpose of drawing up the first draft of the Treaty.

and sign the already initialled Agreement on Road Transport of Goods and Passengers. out of which 21 have entered into force. A Memorandum of Co-operation between the Government of the Republic of Croatia and the Italian Republic has been agreed and is ready for signing. The Italian minority in the Republic of Croatia is guaranteed a high standard of minority rights. The question of compensation for nationalised Italian and Optant property has been resolved through the Osimo Agreement and the Rome Agreement. In March 2008. Besides ongoing dialogue on outstanding open issues. co-operation in protecting and managing the Adriatic Sea. Slovenia and Italy regarding the protection of the Adriatic. Intensive regional co-operation exists between Croatian counties and Italian regions within the Adriatic Euroregion. safety. The Agreement on Co-operation in the field of Culture and Education was signed on 16 October.7. The Republic of Croatia and Italy also closely co-operate within the Central European Initiative.100 . the good neighbourly relations between the Republic of Croatia and Italy have been marked by a continuous improvement of co-operation at all levels. which specifies that the Ecological Fisheries Protection Zone (ZERP) will temporarily not be applied to EU Member States until a joint agreement in the European spirit is found.4 billion. and in 2007 ensured HRK 7. which will not require the prior conclusion of individual bilateral agreements with other states. POLITICAL CRITERIA 1. By resolving reciprocity issues in the field of free access to the real estate market. further consultations regarding NATO and EU enlargement processes.I. intensifying co-operation among line ministries with a view to resolving outstanding issues. ecological and other co-operation in the Adriatic Sea. and the Quadrilaterale. the Republic of Croatia increased the allocations from the State Budget for the needs of the Italian minority. the priorities will still be the total strengthening of economic. Bilateral co-operation Italian Republic Bilateral co-operation. Priorities. Outstanding issues. the Alps-Adriatic Working Community. the Adriatic-Ionian Initiative. The figures for foreign trade in 2007 amounted to USD 6. Italy is the Republic of Croatia’s main foreign trade partner.approx EUR 980. 77 . which is still lacking. Negotiations on the Agreement between the Government of the Republic of Croatia and the Government of the Italian Republic on Cross-border Police Co-operation were completed in November 2007.000 (an increase of approx 20%). The issue of property restitution to foreign nationals. including Italian nationals. Croatia expects equal support by the Italian authorities for the Croatian minority and for the Alliance of Croatian Communities in Italy in preserving Croatian cultural identity on Italian territory. the opportunity arises for the resolution of other outstanding issues. Economic affairs. Within the trilateral co-operation of the Republic of Croatia. Croatia has signed 33 bilateral agreements and other legal acts with Italy. the Croatian Parliament adopted the Decision to amend the Decision on the extension of jurisdiction of the Republic of Croatia in the Adriatic Sea. To date. and the stabilisation of the entire region. strengthening cross-border and inter-regional co-operation. and the signing of the agreement is expected in 2008. Minorities. will be resolved as part of the amendments to the Denationalisation Act (the Act is currently undergoing procedure in the Government of the Republic of Croatia). It is expected that Italy will ratify the Agreement on the Avoidance of Double Taxation.170. and the Republic of Croatia is prepared to settle the remaining part of the debt as soon as the Italian side communicates the relevant bank account number. The initiative of singing the Agreement on Judicial Co-operation in Criminal Matters has been launched.2. and show a further trend of growth in commodity exchange. particularly in the North Adriatic. Bilateral agreements. This agreement will facilitate institutional co-operation in the broadest possible sense. In line with the practice so far.

On the occasion of the implementation of the provisions of the Agreement on Border Traffic and Co-operation (ABTC) concerning Commercial Sea Fishing. In 2008. security. out of which 51 are in force. have concluded over 70 bilateral agreements and other legal acts. science. is of special importance for the Republic of Croatia. 78 . especially in the North Adriatic. the most significant being the general agreement reached at a meeting of prime ministers held in Bled in August 2007 to jointly submit the issue of the sea border demarcation and specific potentially disputable land border issues for an international judicial body to resolve. two inter-state Croatian-Slovenian commissions were formed. Co-operation will also take place through the implementation of the trilateral Agreement on the sub-regional intervention plan for the prevention. the Agreement on Cross-Border Police Co-operation. while the Slovenian Government did not accept the recommendations in full. Concerning trilateral co-operation among the Republic of Croatia. but also quite complex. June and September 2008). the Croatian Parliament passed the Act on the Fund for Financing the Decommissioning of the Krško Nuclear Power Plant and the Disposal of KNPP Radioactive Waste and Spent Nuclear Fuel. The last meeting was held on 14 March 2008 where experts in fishery issues presented their Recommendations for the resolution of this problem. and where the Joint Statement on the Protection of the Adriatic Sea was signed. the Croatian Parliament adopted the Decision on amendments to the Decision on the extension of the Republic of Croatia’s jurisdiction in the Adriatic Sea. Intensive contacts in 2007 led to the successful rapprochement of positions regarding the manner of resolving open issues. Diversified co-operation with Slovenia as part of a number of regional and international organisations. in implementing the external border of the EU regime at the Croatian-Slovenian border. The meeting of the Interstate Commission for Monitoring the Agreement on the Krško Nuclear Power Plant was held in September 2008. consultations were held in Brussels in the presence of EC representatives. very intensive. Republic of Slovenia Bilateral relations. This co-operation takes place within the trilateral Mixed Commission for the Protection of the Adriatic Sea and Coastal Area against Pollution. The decision rendered by this body would be binding on both sides.2009 - efforts aimed at concluding agreements still under negotiation (the Memorandum of Co-operation between the Government of the Republic of Croatia and the Italian Republic. The Government of the Republic of Croatia on 19 March 2008 accepted the experts’ recommendations by way of a Conclusion and informed the European Commission of this. The Interstate Commission for Preparing the Legal Framework for the Submission of the Dispute on Demarcation of the Border before an International Judicial Body held three meetings (in April. agreements were reached in relation to the obstruction of communication and the further facilitation of border crossing for the local population. and 16 in temporary application. and reacting to sudden large-scale pollution of the Adriatic Sea. priorities will remain to be the overall strengthening of economic. and especially with regard to EU and NATO.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . while the Interstate Commission for Establishing Points of Dispute on Land held a meeting in May 2008. Bilateral agreements. The relations of the two neighbouring countries are extremely well-developed. the Agreement on Judicial Co-operation in Criminal Matters). as envisaged by the Bilateral Agreement on Border Traffic and Co-operation (ATBC) In March 2008. mutually promoted. The Agreement on the Maintenance of Military Cemeteries was signed in May 2008. whose 9th session was held in June 2008 in Portorož. ecological and other forms of co-operation in the Adriatic Sea. agreements already ratified (the Agreement on Road Transport of Goods and Passengers). The remaining open issues will be solved bilaterally. For the purpose of implementing this agreement. or advocating the ratification of already signed agreements (the Agreement on the Avoidance of Double Taxation). while developing their relations and resolving particular issues. education and the economy. readiness for. the two states. Slovenia and Italy regarding the protection of the Adriatic Sea. In the last seventeen years. specifying that the Ecological Fisheries Protection Zone (ZERP) will not be applied for a temporary period to EU Member States until a common agreement in the European spirit is found. In October 2007. Relations are particularly well developed in the areas of culture.

Republic of Hungary Bilateral relations. economic. and conducting consultations on the stabilisation of the conditions in the region. The function of the Embassy of the Republic of Hungary in Zagreb as the NATO liaison embassy in the Republic of Croatia. co-operation between the Croatian and Hungarian police in the 2008 tourist season proved to be successful (Hungarian police officers were active in the Republic of Croatia. as has the construction of the joint bridge on the River Mura. which once more confirmed unreserved support to the Republic of Croatia and the friendly relations of the two neighbouring countries. especially the implementation of the arrangement on the joint submission of the dispute related to the sea border and potentially disputable land border issues to the International Court of Justice (ICJ) in the Hague for resolution. contribute to boosting this co-operation. The strategic partnership of the two states is reflected in the very good political. the full-profile Budapest − Zagreb − Rijeka motorway has been completed. In the foregoing period. Bilateral agreements. boosting co-operation and dialogue in resolving outstanding issues. and concluding a Special Agreement. 79 .I. co-operation has been initiated in the area of railway traffic. POLITICAL CRITERIA The issue of the debt of Ljubljanska Bank towards Croatian depositors must be resolved in line with European standards and criteria that regulate the private-legal relation of the bank and its clients. ecological and other forms of co-operation in the North Adriatic. The third joint session of the governments of the Republic of Croatia and Hungary is planned in 2008 in Hungary. The Programme is currently at the stage of establishing common management structures. The traditionally good relations of the two countries are reflected in the annual joint sessions of the two governments which bear remarkable economic and political significance and testify to the concordance of views concerning a common European future. receiving Slovenian experience from the negotiations and alignment process. overall strengthening of the economic. intensifying consultations on EU and NATO issues. Through an exchange of experience in a number of areas. co-operation within the “Pécs − European Capital of Culture 2010” project has intensified. without open issues. transport infrastructure: continuous co-operation in infrastructure projects − on routes V/b and V/c of the Pan-European transport corridors there has been significant development of road infrastructure of common interest. Priorities. which proved to be very useful). The Republic of Croatia and the Republic of Hungary have well-developed good neighbourly relations. and co-operation concerning the ISAF peacekeeping operation in Afghanistan. border and cultural cooperation. The successful work of the Joint Committee for Intergovernmental Co-operation which meets once a year and contributes to strengthening institutional and interdepartmental co-operation. and a high degree of mutual protection of minorities. Hungary has been providing continuous and unreserved support to the Republic of Croatia on its way towards Euro-Atlantic integration. and where the Republic of Croatia also participates. science and culture: work has continued on the production of a Hungarian-Croatian/Croatian-Hungarian dictionary. and overall co-operation between the two countries. including the resolution of the issue of commercial fishing according to ABTC. where Hungary is in command of the Provincial Reconstruction Team (Pol-e-Khomri). the two countries worked together in the following areas: cross-border co-operation: good co-operation of competent institutions was recorded in the development of the Cross-border Co-operation Programme between Hungary and Croatia as a programme base for using EU funds intended for the cross-border co-operation of the two countries in the financial period from 2007 to 2013. One hundred agreements and other legal acts have been signed. security. Hungary was the first Member State to ratify the Protocol on NATO Enlargement to the Republic of Croatia.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . water management. the Republic of Croatia is satisfied with the development of economic relations with Serbia and will continue to invest efforts in strengthening good neighbourly relations based on the principles of mutual respect and equality with the aim of strengthening stability in South East Europe. Priorities: co-operation of the two governments − through the organisation of a joint session in 2009 and through the Joint Committee for Intergovernmental Co-operation. Drava and Danube by establishing a cross-border biosphere reserve according to UNESCO’s categorisation. water management. In the light of these events. demining. continued cross-border co-operation: a proposal is expected concerning the potential development of local border areas through joint projects. This commitment opens up additional opportunities for the successful development of bilateral relations between the two countries. finding solutions to the most pressing issues concerning the Croatian minority in Hungary and the Hungarian minority in Croatia. justice and healthcare. tourism. co-operation will intensify within the “Pécs . The Republic of Croatia welcomed the results of the parliamentary elections in Serbia and considers them significant indicators of the European and democratic commitment of Serbia. protection of the natural resources of cross-border areas and ecologically important areas around the rivers Mura. in line with the principle of an individual approach and provided that all criteria are met. The Republic of Croatia supports the process of integration of Serbia into the EU.2009 - co-operation concerning the protection of the natural resources of border areas and the ecologically significant area of the rivers Mura. intensifying consultations regarding the EU and NATO. - a number of bilateral activities have also been conducted in other areas: tourism. protection and rescue. the issue of the parliamentary representation of the Croatian minority in Hungary will continue to be raised. Drava and Danube has also intensified through the establishment of a cross-border biosphere reserve in line with UNESCO’s Man and the Biosphere Programme. defence. - a Memorandum of Understanding was signed in 2008 between the General Police Directorate of the Ministry of the Interior of the Republic of Croatia and the National Police headquarters of the Republic of Hungary on the occasion of the “Hungarian Formula 1 Grand Prix”. promoting further co-operation in the field of consular affairs. e-Government and agriculture. The Republic of Croatia is also ready to share its experience in the accession process and soon expects the completion of negotiations regarding the signing of the Protocol on Co-operation in the Process of European Integration. co-operation in the field of culture and science − work will continue on the production of a Hungarian-Croatian/CroatianHungarian dictionary. co-operation in the field of railway transport. The quality of the political relations between the Republic of Croatia and Serbia deteriorated after the Republic of Croatia’s recognition of Kosovo’s independence. justice. devoting special attention to co-operation in the field of energy supply. consular co-operation. environmental protection. and following the decline in diplomatic communication due to the withdrawal of the Serbian Ambassador from Zagreb. defence co-operation. internal affairs. healthcare. co-operation in the area of transport and the construction of joint transport infrastructure − transport corridor V/c. local self-government cooperation. protection and rescue.Cultural Capital of Europe 2010” project. 80 . local self-government. Republic of Serbia Bilateral relations.

but the Serbian side has requested some time to resolve questions of competence in this area. 27 of which are in force. MSES submitted a draft to the Serbian side for their opinion. The Republic of Croatia wishes to regulate air traffic in conformity with international legal frameworks. Transport and Infrastructure of the Republic of Croatia issued a temporary permit to the Serbian airline company JAT Airways to conduct commercial flights on its regular Belgrade − Pula route. the Protocol on Co-operation in the Process of European Integration between the MFAEI of the Republic of Croatia and the Ministry of Foreign Affairs of the Republic of Serbia − agreement was practically reached on the text of the Protocol in July 2007. and has not met the request of the Serbian side to extend the temporary permit beyond September. 81 . and 8 are being provisionally applied. the Agreement on Co-operation concerning Protection against Natural and Civilisation Disasters − a general agreement has been reached to initiate the procedure of signing the agreement. Although a bilateral air traffic agreement has not yet been concluded. Education and Sports of the Republic of Croatia (MSES) and the Ministry of Education of Serbia on Co-operation in the Area of Language and Literature − in January 2008. Currently. Bilateral agreements. The Republic of Croatia encourages the effective and continuous work of the Intergovernmental Mixed Committee in Monitoring the Implementation of the Agreement on the Protection of the Right of the Croatian National Minority in the Republic of Serbia. Designation and Maintenance to the Serbian side in December 2007. and thus to the resolution of legal relations between the Republic of Croatia and Serbia. The first round of negotiations was held in Zagreb on 29 and 30 May. After all the preparations are made. the Ministry of the Sea. the Serbian side delivered the Draft Memorandum of Understanding on Co-operation in the Field of Environmental Protection in October 2007.I. by signing the Agreement. POLITICAL CRITERIA The Republic of Croatia welcomes the announcement that the Standing Joint Committee of Senior Representatives of Succession States will continue its work related to the supervision of the implementation of the Succession Agreement signed with the successor states of former SFRY with the participation of all interested states. and the Serbian National Minority in the Republic of Croatia. 44 bilateral agreements and other legal acts have been signed. It also welcomes the organisation of the coming meeting of the Committee in Belgrade. the Republic of Croatia submitted the Draft Agreement on Inland Waters Navigation. twice a week from 19 June to 14 September 2008. The Republic of Croatia expects that the active involvement of Serbia at the announced meeting of the Committee in Belgrade will contribute to the resolution of succession issues of the former SFRY. the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Serbia on Mutual Relations concerning Water Management − the Government of the Republic of Croatia adopted a Decision on initiating the procedure on the basis of a new draft which was submitted to the Serbian side on 23 January 2008. The Republic of Croatia is interested in convening an Interstate Diplomatic Commission for Identifying and Establishing the Border and Preparing an Agreement on the State Border between the Republic of Croatia and the Republic of Serbia. at the beginning of May 2008 the Government of the Republic of Croatia adopted the Decision on the Opening of Negotiations concerning the Air Traffic Agreement. the Air Traffic Agreement − following a number of previous attempts to initiate negotiations by the Republic of Croatia. the Croatian side will convene the respective meeting in Zagreb. procedures for concluding the following bilateral instruments are underway: the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Serbia on the Readmission of Persons whose Entry or Residence is Illegal − the final round of negotiations was held on 9 September 2008 in Belgrade when an agreement was reached concerning the text of the Agreement. To date. the Memorandum of Understanding between the Ministry of Science. but has not yet been signed.

Economic affairs. constructive regional co-operation. while imports from the Republic of Serbia rose by 44%. In February 2008.000 tourists visited Croatia. amounting to USD 531 million. Republic of Kosovo Bilateral relations. The suspension of the visa regime for Serbian nationals is still in force. which is in conformity with international community endeavours and. especially concerning joint projects which would also be useful in the context of European integration. European integration. stability and development. Until then. Serbia takes second place (Bosnia and Herzegovina is first. Out of the total foreign investments of the Republic of Croatia. on 19 March 2008. permanent improvement and development of mutual relations and the resolution of outstanding issues. The Republic of Croatia seeks to identify areas for the long-term economic co-operation of the two states.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . making up 321.4% of total exports of the Republic of Croatia are related to Serbia. Compared with the same period in 2007. which represents an increase of 38% compared with the same period of the previous year. The first substantial investments were made in 1999. with EUR 380 million). the Republic of Croatia received an official invitation to confirm its participation in the Kosovo EULEX mission. thus contributing to the permanent strengthening of co-operation between the two counties in the interest of peace. communication between the two governments will take place through the Liaison Office of the Republic of Croatia in Priština. The Government of the Republic of Croatia accepted the decision of the Kosovo Assembly on declaring the independence of Kosovo.000 overnight stays. In this sense. The establishment of an Embassy of the Republic of Croatia in Priština is expected very soon. Preparations are underway to launch an EU mission for the establishment of the rule of law in Kosovo. The Croatian National Bank has not yet recorded any significant investments coming to Croatia from the Republic of Serbia. to the building of institutions and in the transfer of experience in the process of EU accession. and especially the financial sector. and the highest amount of EUR 131 million was invested in 2006. The Republic of Croatia is very active in offering assistance and training to Kosovo staff in different areas. Investments − from 1993 to the end of the first quarter of 2008. 66. protection of minorities and emigrants. completion of bilateral agreement regulations.). Out of the total amount of foreign investments made by the Republic of Croatia. Exports from the Republic of Croatia increased by 36%. Thirteen Croatian police officers who are currently taking part in UNMIK have been provisionally selected. The Republic of Croatia is taking part in the work of UNMIK with fourteen police officers. The Government of the Republic 82 . through the service sector. 5.3% of total imports to the Republic of Croatia come from Serbia. recognised Kosovo as an independent and sovereign state. Tourism − in the first eight months of 2008. the number of tourists has increased by 15% and the number of overnight stays by 22%. and further treatment of this issue depends on the success in resolving readmission issues. EULEX − Kosovo. Priorities. the commodity exchange between the Republic of Croatia and the Republic of Serbia amounted to USD 821 million.2009 - the Agreement between the Republic of Croatia and the Republic of Serbia on Cross-border Police Co-operation − the formal procedure has begun. direct investments in Serbia by the Republic of Croatia amounted to EUR 374 million. and contacts have been established at a professional level. while 1. in 2008 several expert missions from Kosovo visited Croatia (in the area of environmental protection. amounting to USD 290 million. etc. Trade − in the first eight months of 2008. Diplomatic relations between the Republic of Croatia and Kosovo were established on 30 June 2008. The Government of the Republic of Croatia expresses its readiness to develop multifaceted co-operation with Kosovo based on the principles of equality and reciprocity. 19% relate to the Republic of Serbia. ranging from the judiciary.

POLITICAL CRITERIA of Croatia. Prime Ministers. Common strategic goals in the region are peace. improvement of economic co-operation. and is interested in strengthening and increasing the pace of economic co-operation with Montenegro. at a session held on 20 June 2008. and joint activities in these areas will follow in the same direction. and the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on the extradition and admission of persons whose entry or residence is illegal. The Republic of Croatia and Montenegro have good relations which are tending to improve. and the same is expected from Montenegro. In 2008. On 15 July 2008. Priorities. the Government of the Republic of Croatia will continue to devote special attention to the status and protection of Croatians who live in Kosovo. and it was signed on 24 November 2008. The deployment is expected in the first half of 2009. In this sense. Bilateral agreements. Official bilateral visits of the two countries’ highest officials were exchanged in 2008 (Presidents. at a value of EUR 250 million). the Prime Ministers of Croatia and Montenegro agreed that the outstanding issue of the sea border is to be resolved before an international court. 83 . Bilateral agreements. Economic affairs. The aim of the joint committee is to create a legal framework to be presented before the International Court of Justice in the Hague. The co-operation of the two states in the economic arena is gaining new momentum thanks to several new projects. The Office of the Croatian Chamber of Economy has been open in Priština for a number of years. the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on the ceding of property without compensation. In addition. The Republic of Croatia wishes to continue to develop good neighbourly relations and co-operation based on the principles of equality and reciprocity. adopted the decision on the participation of the Republic of Croatia in the Kosovo EULEX mission. At a session held on 12 September 2008. The Government of the Republic of Croatia has appointed its members of the commission. although one of them must go through a provisional selection procedure before his participation in the mission is approved by the EU. two police officers are ready to be transferred from UNMIK to EULEX. to be chaired by the ministers of foreign affairs of the two countries. as well as the selection of the Croatian company IGH for the project of building the future Priština − Uroševac motorway. Special value is attached to the agreement between the highest officials of the two countries that the issue of regulating the state border on land and at sea must be resolved through bilateral negotiations in conformity with international law and the opinion of the Badinter Commission. The following agreements were signed in 2008: the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on co-operation in the protection against natural and civilisation disasters. stability and progress in democratic and institutional reforms. is planned.I. the Croatian Parliament adopted a Decision on deploying 20 members of the Armed Forces of the Republic of Croatia and two transport helicopters to the KFOR operation in Kosovo. of which we can stress the engagement of the Split company “Konstruktor” in the construction of the tallest office-residential complex in the Balkans (in Priština. the Government of the Republic of Croatia adopted a Conclusion on the signing of the Agreement between the Republic of Croatia and the European Union on the participation of the Republic of Croatia in the EULEX − Kosovo mission. which will intensify co-operation in this area. the signing of a Memorandum of Co-operation in the field of science and education is in its final stages. Consequently. the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on co-operation in the field of culture. whose decision would be accepted in advance by the two countries’ parliaments. Montenegro Bilateral relations. and has been systematically promoting economic co-operation between the Republic of Croatia and Kosovo. the Republic of Croatia and Kosovo signed a Memorandum of Co-operation between their ministries of agriculture. The establishment of a joint commission. Presidents of Parliament of the two countries).

2009 Procedures are underway to conclude the following agreements: the Agreement on road transport between the Republic of Croatia and Montenegro. through joint efforts of the political forces within Bosnia and Herzegovina and the international community. to continue the improvement of economic co-operation. they are intensive and versatile. Intensive co-operation within the Regional Co-operation Council (RCC) is expected to continue. as well as his efforts to draw the attention of the international community to Bosnia and Herzegovina to help achieve the long-term goals of preserving the territorial integrity and stability of the country and the security of its citizens. the Government of the Republic of Croatia foresees continued activities in the demarcation of the border between the two countries. the Republic of Croatia delivered to Bosnia and Herzegovina an invitation for a meeting of the Interstate Diplomatic Commission for Borders to consider new facts related to the demarcation of the sea border. the Croatian Government continued to offer assistance donor programmes to Croatians in Bosnia and Herzegovina pursuant to constitutional provisions and based on the Interstate Agreement on the reconstruction and construction of damaged and destroyed family houses. the Agreement between the Republic of Croatia and Montenegro on the protection of the rights of Croatian minority in Montenegro and Montenegrin minority in the Republic of Croatia. The Republic of Croatia looks forward to eliminating misunderstandings as soon as possible and to signing the Agreement in question. by transferring its own knowledge and experience from these processes. In 2007. The manner of using the port of PloËe by companies from Bosnia and Herzegovina is also a priority that the Republic of Croatia wishes to resolve through a new agreement based on European standards. In the coming period. Priorities. the Republic of Croatia and Bosnia and Herzegovina created the conditions to allow Croatian state aeroplanes to 84 . will lead to the optimal structuring of the country for all three constitutive peoples. to amend existing and conclude new bilateral agreements of interest for both states. The Republic of Croatia will also continue to resolve the issue of property rights acquired by natural and legal persons from the Republic of Croatia and Bosnia and Herzegovina in their respective territories. to achieve a final agreement on the border and on outstanding issues. Bosnia and Herzegovina Bilateral relations. The relations of the Republic of Croatia and Bosnia and Herzegovina are at the level of friendly and good neighbourly relations. Multilateral co-operation. Assistance to Croatians in Bosnia and Herzegovina. Croatia continues to provide assistance to Bosnia and Herzegovina in achieving its main foreign-policy goals. To date. which offers the most-favoured nation status as a special benefit. with a view to leading the country towards European integration. Miroslav LajËak.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Republic of Croatia supports continued discussion on constitutional reforms which. In July 2008. to become part of European and Euro-Atlantic integration. Bilateral agreements. In this sense. the Republic of Croatia communicated to Bosnia and Herzegovina the Proposal of Principles for the Usage of the Port of PloËe. the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on scientific and technological co-operation. and the Additional Protocol between the Government of the Republic of Croatia and the Government of Montenegro on Amendments to the Agreement between the Government of the Republic of Croatia and the Federal Government of the Federal Republic of Yugoslavia concerning the promotion and reciprocal protection of investments. The position of Bosnia and Herzegovina is expected in relation to the mentioned proposals. The text of the Agreement on property rights relations has not been fully agreed on. In 2008. the Agreement on dual citizenship between the Government of the Republic of Croatia and the Government of Montenegro. The Republic of Croatia supports the endeavours of the High Representative/Special EU Representative in Bosnia and Herzegovina. Croatia and Bosnia and Herzegovina have signed about 110 international agreements and other legal acts. Readiness has been expressed at all levels for continued co-operation and for the speedy resolution of outstanding issues. Croatia and Bosnia and Herzegovina co-operate within international organisations and regional initiatives. Outstanding issues.

Prominent economic projects include co-operation on the reconstruction and modernisation of the Port of PloËe and co-operation on the construction and connection of corridor Vc and the Adriatic-Ionian motorway. With a view to boosting bilateral economic relations and regional co-operation. The drafting of the Agreement on the delegation of responsibility for the provision of air traffic services in part of the airspace of Bosnia and Herzegovina is underway. There is a high level of mutual co-operation and support in priority foreign-policy issues − EU and NATO accession. while at the same time the Republic of Croatia is the largest exporter to and importer from Bosnia and Herzegovina. With a view to improving co-operation in the field of security. There are no outstanding political issues between the two states. The signing of a new Readmission Agreement is also expected. education and culture. Republic of Macedonia Bilateral relations. science. In July 2008. The Republic of Croatia and Macedonia co-operate particularly in the area of defence. and this will be done pursuant to the Agreement on co-operation in the protection against natural and civilisation disasters signed in 2001. and the Protocol on Official Transit over the State Territory of the Other Signatory with the Aim of Acting on One’s Own State Territory. The two states have developed dynamic co-operation within the framework of the US-Adriatic Charter. to support Croatians in Bosnia and Herzegovina in maintaining their constituent belonging and national equality. and so are negotiations concerning the Protocol on Co-operation in the Process of Searching for Missing Persons and in the Exhumation and Identification of Mortal Remains. to complete the process of return. the Protocol on Establishing Joint Groups for Suppressing Crime. The relations between the Republic of Croatia and the Republic of Macedonia are friendly and are developing very well at all levels. Due to the poor competitiveness of Bosnia and Herzegovina’s economy. Croatian exports to Bosnia and Herzegovina grew by a larger rate than imports from Bosnia and Herzegovina. Presidents of Parliament. In the first eight months of 2008. the Protocol on Conducting Mixed Patrols along the Common State Border. and in order to protect the interests of some individuals and groups. justice.I. This is confirmed by the continuous political dialogue at the level of Presidents. to finalise the Agreement on property rights relations. continued negotiations on the state border and to find a solution for the use of the Port of PloËe. Prime Ministers. the Protocol on Co-operation between the Ministry of Justice of the Republic of Croatia and the Ministry of Justice of Bosnia and Herzegovina was signed. Bosnia and Herzegovina still holds fifth place as the largest trade partner of the Republic of Croatia. Priorities. negotiations were initiated with Bosnia and Herzegovina for the signing of the Additional Protocol on Amendments to the Agreement on the promotion and reciprocal protection of investments. Due to Croatia’s obligation to harmonise its legislation with the acquis. Economic affairs. and Ministers of the two states. the Republic of Croatia is making efforts to become involved in the privatisation processes that are taking place in the market of Bosnia and Herzegovina. continued co-operation and development of good neighbourly relations and partnership in the European context. POLITICAL CRITERIA fly over and land on the territory of Bosnia and Herzegovina in border areas in the event of fires. in June 2008 the General Police Directorate of the Republic of Croatia and the Border Police of Bosnia and Herzegovina signed 4 protocols: the Protocol on the Assignment of a Liaison Officer. so that Croatian companies often face various obstacles. there have been attempts to hinder the operations of foreign companies in exporting goods to Bosnia and Herzegovina. co-operation on regional initiatives and projects. 85 . and the second largest consumer of Croatian goods. co-operation on infrastructural projects. so that a surplus of over USD one billion was created in Croatia.

They have also confirmed their interest in strengthening economic co-operation. which is 28% more compared to the same period in the previous year. to intensify overall economic co-operation. to establish the Mixed Commission for the Implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on the protection of the rights of the Macedonian minority in the Republic of Croatia and the Croatian minority in the Republic of Macedonia. Parliaments and Ministers confirms this.2009 Bilateral agreements. the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia in the area of exchange and protection of classified data. Up to 2007. Within the period from January to August 2008. the total commodity exchange between Croatia and Macedonia amounted to USD 278 million. The two countries are cooperating in the process of accession to NATO. Economic affairs. Prime Ministers. The Republic of Croatia continues to support Albania in its process of approaching the EU following the signing of the Stabilisation and Association Agreement. According to the most current data of the Croatian National Bank. which is 33% more than in the same period in 2007. Underway are the Additional Protocol on Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on the Promotion and Reciprocal Protection of Investments. They also share the common purpose of attracting and channelling Croatian investments to Macedonia. or 36% more than in the same period of the previous year.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . and to continue co-operation as part of the implementation of the US-Adriatic Charter. The Republic of Croatia and Macedonia have compatible markets which provide the opportunity for intensifying the exchange of goods. All basic economic agreements are in force. This involves negotiations regarding legal acts on the implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Albania on the extradition and admission of persons whose residence is illegal (2003). total Croatian investments in Macedonia to date amount to EUR 26. Relations between the Republic of Croatia and Albania have been successfully developing in all areas and on multilateral and bilateral levels. it grew by 21% compared to the same period in 2007. they are active within the US-Atlantic Charter. which was 13% more than in 2006. At the same time. co-operation in education and science. Negotiations are underway to conclude bilateral agreements and legal acts at the level of the exchange and protection of classified data. The Republic of Croatia enjoys a continuous surplus in total trade exchange. especially those related to the situation in the region. imports from Macedonia amounted to USD 183 million. to continue the already established successful dialogue on all important bilateral and multilateral issues. In 2007. which gained momentum in 2008.5 million for the period from 1993 to the first quarter of 2008. The Protocol on Co-operation of the Diplomatic Academy of the Ministry of Foreign Affairs and European Integration of the Republic of Croatia and the Sector for Diplomatic Training at the Ministry of Foreign Affairs of the Republic of Macedonia was signed on 1 October 2008 in Skopje. and the possibility of performing paid activities for family members of staff of diplomatic missions and consular offices. 34 bilateral agreements and other legal acts have been signed. Bilateral agreements.3 million. Republic of Albania Bilateral relations. and within the framework of regional and sub-regional initiatives and forums. Economic affairs. and the Agreement on economic bilateral relations between the Government of the Republic of Croatia and the Government of the Republic of Albania (1993). and the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on Amendments to the Agreement on trade and economic co-operation.9 86 . the visa regime. Croatian exports to Macedonia amounted to USD 96 million. Investments from the Republic of Croatia to Albania from 1993 to the end of the first quarter of 2008 amounted to EUR 7. so that in the first eight months of 2008. the Republic of Croatia and Macedonia have signed 35 bilateral agreements and other legal acts. Priorities. The intensive exchange of visits at the level of Presidents. The growing trend of commodity exchange has continued. There are no open political issues between the two countries. To date. the trade exchange amounted to USD 38. Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Albania on the promotion and reciprocal protection of investments (1993).

POLITICAL CRITERIA million. The construction of the Ionian-Adriatic gas pipeline (Croatia − Montenegro − Albania) is underway following the Ministerial Declaration signed in September 2007.I. Priorities.to improve economic co-operation. 87 . . in particular in resolving the issues of infrastructure and traffic links between the two countries (connecting sea ports and establishing an airline link between the two capitals) as a prerequisite for developing co-operation in trade and tourism.

2009 88 .NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .

II. ECONOMIC CRITERIA .

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 90 .

I. INTRODUCTION The chapter pertaining to economic criteria within the National Programme for the Accession of the Republic of Croatia into the European Union for 2009 provides an overview of the economic policy and an assessment of achievements and progress of the Republic of Croatia in implementing economic reforms in terms of meeting the Copenhagen economic criteria as a precondition for full EU membership. POLITICAL CRITERIA II.1. as one of the fundamental strategic documents of the EU in the forthcoming period. Successful implementation of the envisaged measures and adoption of the Lisbon Strategy objectives can improve the level of Croatia’s competitiveness. ECONOMIC CRITERIA 2. by achieving a more dynamic knowledge-based economy that is integrated into international flows. environmental protection and social cohesion. it is necessary to consider the objectives established under the Lisbon Strategy. institutional and other areas of the development strategy can accelerate the process of Croatia’s accession to the EU. and achievement of sustainable growth in terms of quality of living. In that respect. 91 . The proper breakdown of operating plans and successful implementation of the set measures in the economic. social. The planned economic policy activities are aligned with the priorities contained within the European Partnership with Croatia. This section of the National Programme also stresses the economic policy priorities for 2009 aimed at achieving a more effective alignment and accession process and favourable pace of implementing reforms.

Implementation of complementary measures is also extremely important. characterised by the process of fiscal consolidation and the accompanying reduction of the general government debt. and will complete the economic policy framework in the mid-term period.2. when revenues of the government budget rose in significant amounts and at high rates. to influence adverse movements and fulfil the set objectives. persistent implementation of developmental projects. in times of economic growth deceleration due to unfavourable macroeconomic conditions.2009 2. stimulating knowledge and education. a firm basis of the public finance system resistance has been created. while fiscal policy will be directed at continued fiscal consolidation in the mid-term. Fulfilment of these objectives requires close monetary and fiscal policy co-ordination. further public debt reduction and external debt stabilisation. This implies stimulating a sustainable long-term economic growth rate. These measures include structural reforms and strengthening of institutions and their alignment with the practices of the European Union. 92 . Monetary policy will continue to focus on maintaining price and exchange rate stability. In this manner. formulation of the economic and fiscal policy in the forthcoming period is based on achievement of the following objectives: stimulating high sustainable economic growth rates.5%. The objective of the Government of the Republic of Croatia is the continued development of the Croatian economy and the creation of preconditions which will support Croatia’s accession to the EU. aiming at budget balancing. the Government of the Republic of Croatia opted for a strategy of systematic implementation of responsible fiscal policy. whilst maintaining macroeconomic stability. reducing total general government deficit. reducing unemployment and improving the standard of living for all Croatian citizens.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In that context. increasing competitiveness of all segments of the economy. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA In the years of continuous economic growth above 4. improving the efficiency of institutions. which has allowed the Government of the Republic of Croatia. creating new jobs and reducing unemployment. and its equal participation in the common European market.

1%).1%).0% in 2009.1%). gas and water.6% in the first quarter to 4.9% for trade3. Analysing the shares of individual activities in the total value added at constant prices from 1997.2% in the second quarter of 2008. Includes agriculture.6% in real terms. social security. 2.6%). other community. The real growth of gross value added stood at 3. as investment goods serve to spur production. Coverage of imports of goods and services by exports of goods and services was 68.3% is expected.8%. Growth of the GDP deflator stood at 6. thereby representing the most important factors in future growth generation. transport.5% in the first quarter and 3.5bn in the first half of 2008.I.4% in the second quarter.3. recorded in the first quarter. Personal consumption rose by 3. Imports of goods and services also recorded a high growth rate in the first half of the year. Current economic developments Gross domestic product Real GDP growth amounted to 3. Includes mining and quarrying. manufacturing and the supply of electricity. At the level of entire 2008. Government consumption grew at a rate of 0. public administration (15. In analysing individual expenditure components of the gross domestic product.1. Compared with the same period in 2007. forestry and fishing. rather than consumption. this marked an increase of 11.6% in the second quarter of 2008. increasing by 7.1%. health and social work.5%) and trade (15. repair of motor vehicles and motorcycles. gross fixed capital formation recorded the highest growth in real terms in the first half of 2008.4% for hotels and restaurants. The highest growth of gross value added in the first half of the year was recorded in construction (9. in the conditions of global macroeconomic and financial conditions recovery. the growth will slow down to 2.4% in the first half of 2008. real estate. 1 2 3 4 5 Category includes financial intermediation. a recovery of the real growth of GDP to the level of approximately 4% is expected by the end of the mid-term period. A somewhat stronger real growth of 4.3% in personal consumption was recorded in the first quarter. hunting. In that regard. As a result of unfavourable external effects. renting and business activities.3% in the first quarter and 3.0% for agriculture5. financial intermediation (15. By the end of the mid-term period. positive effects of the Republic of Croatia’s EU accession process and the effects of further implementation of structural reforms and reduction in general government deficit.1% in the second quarter of 2008.4% and hotels and restaurants at 3. education. which recorded a year-on-year nominal growth of 10.6% in the second quarter of 2008. Exports of goods and services rose by 4.3. and reached HRK 144. followed by construction at 8.3% in real terms in the first half of the year.2% in real terms in the first half of the year. Includes wholesale and retail trade. This growth slowed from 4. the following activities recorded the largest shares in the first half of 2008: industry (29. The share of transport. a real growth of GDP of 3. which is the result of a real growth of 4. by 3.2% in the second quarter of 2008. and personal and household goods. Gross value added Real growth of gross value added amounted to 4. Growth of imports of goods and services accelerated from 7.1%.1%.8% in the first half of 2008.3% in the first half of the year and nominal GDP. storage and communication in total value added stood at 10. Includes public administration and defence. representing a real year-on-year growth of 1.3% in real terms.6%).2%) and industry2 (4. 2. storage and communication (6.1%). agriculture at 7.2% in the second quarter.6% for public administration4 and 2. Such movements will contribute to a further improvement of the business climate and strengthening of private sector and economic activity. This is particularly important.8% in the first quarter and by 4. The strong real investment growth of 9. financial intermediation1 (6.1% in the first half of the year.0% in the first quarter to 8. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 2.8% in the first half of 2008. 93 . further accelerated to 12. POLITICAL CRITERIA 2. social and household activities. a gradual acceleration of GDP growth is expected. while its growth stood at 2.3%.

4% increase relative to the same period of the previous year. which is a 40. caused primarily by external shocks and by a sharp rise in crude oil prices on the world market. Accordingly.4% compared to end-2007. In addition. banks reduced their foreign liabilities by EUR 0.8bn in the first half of 2008. whereas larger disbursements include a syndicated loan granted to the Croatian Bank for Reconstruction and Development (CBRD). A greater purchase of foreign exchange from commercial banks is expected in the fourth quarter. owing to an increase in the allocated foreign exchange reserve requirements of banks. also had a negative influence on the balance of payment deficit growth.9bn in the first half of 2008. a CNB intervention at end-January and by a purchase of foreign exchange received by the central government through a withdrawal of an adjustment loan granted by the World Bank. In the portfolio investments account. In addition.4bn at end-2008.1bn to EUR 35. a deterioration in the factor income account deficit.5bn against the end of 2007.1bn was recorded in the first half of 2008. Government indebtedness was slightly reduced in the said period. international reserves should stand at EUR 9. worth EUR 230m. Furthermore. an increase of 6. In the first semester of 2008.5%.7% against the same period of 2007. Net inflow based on other investments (rise in net debt based on loans.8bn. On the other hand. primarily due to a drop in banks’ foreign assets as a result of the reduction in the minimum required foreign exchange claims from 32% to 28. somewhat more intensive growth of foreign liabilities of other domestic sectors was also recorded. 94 . which will also impact the growth of the gross international reserves. inflow from foreign direct investments to Croatia was reduced from EUR 2. trade credits. a net inflow of only EUR 0. an increase of EUR 0. which is mainly the result of smaller recapitalisations of domestic banks under foreign ownership. which resulted in a one-off reduction in gross international reserves of approximately EUR 450m. Reserve growth was stimulated by an increase in the foreign exchange reserve requirement. the current account deficit increased by 27. in the amount of EUR 100m. A further decrease in bank debt is expected by the end of the year. International reserves increased by EUR 0. as well as a deceleration of debt growth of enterprises. up 3. International reserves and external debt In the first eight months of 2008. the gross external debt of the Republic of Croatia increased by EUR 2. a foreign exchange intervention by the central bank in January and purchase of foreign exchange received by the central government under the Second Programmatic Adjustment Loan (PAL 2).4% in the observed period.9bn relative to end-2007. in order to mitigate the effect of inflow of foreign exchange for the purchase of INA shares on the exchange rate of the kuna against the euro. along with a mild reduction in the positive balance in the current transfers account. In comparison with the first half of 2007. and a withdrawal of the first tranche of the Second Programmatic Adjustment Loan of the World Bank. primarily as a result of the repayment of government Samurai bonds.2009 Balance of payments Following considerable deterioration in 2007. unfavourable trends in the balance of payments of the current account continued into the first half of 2008. a part of the allocated foreign exchange reserves was returned to commercial banks in October by abolishing the marginal reserve requirement. Continued heavy borrowing of the enterprise sector had the greatest influence on the debt increase in the observed period. which increased by one quarter relative to the first half of 2007. although the growth of the total external debt of enterprises slowed relative to the first eight months of 2007. As a result of monetary policy measures. however.4bn. Gross international reserves of Croatian National Bank (CNB) reached EUR 9.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . a significant outflow based on direct investments was recorded due to a withdrawal of retained earnings of Pliva from 2002. primarily due to CBRD borrowing. cash and deposits) doubled relative to the first half of 2007. In contrast. The capital and financial transactions account recorded net inflow of EUR 3.4bn to EUR 1. in the first quarter.8bn at end-August 2008. This increase can mainly be accounted for by the deterioration in foreign trade deficit. and significant repayments include regular repayment of liabilities to the London and Paris Club and repayment of the Samurai bond (approximately EUR 160m). this investment reduction was offset in the second quarter by a recapitalisation of Pliva by its foreign owner. net revenues in the services account increased by as much as 17.0% compared to end-2007. while the government sector debt could rise.

i.e. The increase in the annual rate of consumer price inflation. Unemployment fell from 261 129 in January 2008 to 228 501 in October of the same year.4% in July 2008.5%.8%. Prices At the end of the second and at the beginning of the third quarter of 2008. or by 8.I. In the third quarter of 2008.6 percentage points higher than in December 2007.2% in December 2008. The administrative unemployment rate in the first half of 2008 was 14.0%.e.1% in August 2008.4% in August.2% in December 2007 to 12. together with a favourable base period effect. This years-long policy will have a positive impact on the labour market movements in the forthcoming period as well.5% compared to October 2007. as a direct consequence of a long-term policy of employment promotion and preserving jobs. contributed to a rise in inflation in the first seven months of 2008. which is reflected in a drop of prices of food raw materials and crude petroleum on the world market. by 32 628 or 12. In 2008. 95 . food prices continued to increase in the first eight months of 2008. though at a somewhat slower pace. Along with a favourable base period effect. is predominantly accounted for by the considerable rise in the annual rate of change of energy prices.0%. among other things. as reflected in the reversal of the upward trend of price increases of agricultural products and crude petroleum on the world market. The annual rate of change of food products thus increased from 11. In January 2008. such that the delayed effect of domestic demand strengthening on inflation was felt during 2008. compared to October 2007. of whom 48. In all the months thus far in 2008. who can be classified as the labour force. the annual rate of consumer prise inflation is expected to drop from 7. In comparison with the results of the survey from the first half of 2007. Accordingly. The annual rate of inflation recorded in August 2008 was 1. a continuation of positive labour market trends was recorded. This. in the first half of 2008. the labour force survey unemployment rate stood at 9. from 5. recorded in the first eight months of 2008. The expected average annual rate of consumer price inflation for 2008 is 6. this should contribute to a slowdown of the annual growth rate of domestic prices of food and energy in the last four months of 2008. A continuation of inflation deceleration is expected in 2009. i. reaching 8. The administrative unemployment rate was reduced from 14. together with a significant acceleration of real annual growth of personal consumption in 2007. In mid-July. Unemployment was reduced by 21 500. lower unemployment was recorded relative to the previous year. had an impact on a deceleration of the annual inflation rate to 7.6% in August 2008. Unemployment was reduced by 21 586.4% in August to about 4.9% in October 2008.4% in December 2007 to 13. the imported inflationary pressures subsided. the working age population in the first half of 2008 included 3 657 500 persons.6% in June. Core inflation remained lower than the overall consumer price inflation.6%. the working age population increased by 13 000 and the category of the labour force increased by 7 000. An increase in prices of raw materials on the world market. Total employment in the first half of 2008 amounted to 1 614 500. which is 28 500 more than in the first half of 2007.0% in December 2007 to 6.8% in January to 12. Labour market data obtained from administrative sources suggest a continuation of positive trends in 2008. when it stood at 5. the annual rate of consumer price inflation accelerated from 5. which is a year-on-year decline of 1.2 percentage points. Accordingly. amounting to 158 000. but its annual rate of change increased from 5. The largest contribution to that increase was made by the rise in prices of refined petroleum products and electricity. thus hitting a record low level. up 0.3% in August 2008. employment amounted to 1 506 097 and increased to 1 538 271 in October.5% are people either working or actively seeking employment. POLITICAL CRITERIA Employment and unemployment According to the labour force survey data.7% in March to 7.2%. After rather strong growth in the second half of 2007. Price increases in certain food products (meat. bread and grain products) gave the largest contribution to the acceleration of core inflation in the observed period. the imported inflationary pressures began to decrease.

inflation in Croatia began to decelerate and its drop to 4.2% is expected at the end of the year. including Croatia. The CNB occasionally participates in its operation. and remained at that level until the second half of 2008. Demand shocks (rise in prices of refined petroleum products and food products on the world market) spurred inflation acceleration in almost all European countries. increase in interest rates at reverse repo auctions and a considerably smaller purchase of foreign exchange from banks on the domestic market. The choice of such a policy derives from the conditions in which the central bank acts.0%. Accordingly. the use of foreign capital became more expensive for commercial banks.e. certain modifications were made in the field of the general reserve requirement. the central bank abolished the marginal reserve requirement in early October 2008. the allocated foreign exchange funds were returned to the commercial banks (approximately EUR 0. the monetary policy interest rate transmission mechanism in not sufficiently developed. Such a monetary policy resulted in a slowdown of growth of all monetary aggregates and a mild appreciation of the nominal exchange rate of the kuna against the euro.2 Monetary and fiscal policy Monetary policy The primary objective of the Croatian National Bank is to maintain price stability. strengthening of the kuna 96 . the Croatian National Bank has also applied various administrative measures in recent years.8% at the annual level at end-2007.33 HRK / EUR on 31 December 2007 to 7. as a result. Exchange rate policy The Croatian National Bank pursues a managed float exchange rate policy. The recorded placement growth in the first eight months of 2008 is within the limits prescribed by that decision. Another measure. the nominal exchange rate of the kuna against the euro appreciated by 3. In addition. has proved adequate for achieving the primary objective of the central bank.45bn). by buying and selling foreign exchange from commercial banks at foreign exchange auctions. complemented with other administrative measures. from the main characteristics of the Croatian economy. the Decision on the purchase of compulsory CNB bills. As a result of such movements. Under such conditions. By the end of the third quarter 2008. Over more than a decade. and increased resistance of the domestic banking system to potential shocks was achieved through recapitalisations. aiming to prevent excessive exchange rate fluctuations. introduced in 2005. which was reflected in a reduced scope of open market operations. Finally. In order to have a stronger impact on unfavourable macroeconomic developments. the most important of which are the marginal reserve requirement and compulsory purchase of CNB bills.3. The crisis on the world financial markets and unfavourable developments in the domestic capital market in 2008 thus did not have an adverse impact on the Croatian banking sector. implying that the exchange rate of the kuna against the euro is determined by supply and demand forces on the foreign exchange market. a drop of foreign exchange liabilities of commercial banks of more than EUR 1. monetary policy based on the exchange rate as the nominal anchor. i.2009 2. an assumption of a stable exchange rate restricts the range of monetary policy and. leading to a strong decrease of their external debt. decisions relating to prudential regulation have prevented the development of securitisation and financial derivatives. from 7. Inflation accelerated to 5. the stock of banks’ total foreign exchange liabilities fell to approximately a similar level as at the time of introduction of this measure. Similar trends are expected until the end of the year. without a designated ceiling and floor for intervention points. In the first nine months of 2008. In achieving its primary objective.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . As a result of the marginal reserve requirement. the Croatian National Bank restricted its monetary policy. in the first eight months of 2008. It was successfully applied in 2003 and 2007 and was in force in 2008. due to which the amount of allocated marginal reserve requirement with the central bank was considerably reduced. In 2008. In the second half of January. By abolishing this measure. the CNB pursues monetary policy based on the stability of the nominal exchange rate of the kuna against the euro. was aimed at slowing the commercial banks’ lending activity. thus improving their foreign exchange liquidity in the conditions of unfavourable movements on the domestic and world financial markets. In addition.0bn was recorded. In the conditions of free movement of capital. monetary policy faced additional challenges.11 HRK /EUR on 30 September 2008.

aimed at the further development of an efficient and sustainable financial management system. which reflected positively on movements of public debt. 6 August 2008 in comparison with December 2007. in analysing the process of fiscal adjustment since the start of its implementation in 2004.4bn. In recent years. the process of fiscal adjustment and the accompanying general government deficit reduction are the main determinants of fiscal policy of the Republic of Croatia. the government has made a positive contribution to external debt movements. POLITICAL CRITERIA exchange rate was recorded. as a result of decreased kuna liquidity of the financial system. the CNB did not purchase foreign exchange from banks at foreign exchange auctions. for the purpose of avoiding the additional creation of kuna liquidity. a moderate trend of the kuna exchange rate appreciation was recorded and the kuna strengthened by a total of 1. the share of external component of the general government debt was reduced by 18. Accordingly.5% in the observed period.I. By deficit reduction. the need for its financing also decreased.7%). from -1. The price competitiveness indicators for domestic exports deteriorated in the first eight months of 20086 − the index of the real effective exchange rate of the kuna appreciated by 3. In 2003.1m from commercial banks on 31 January 2008.9%. a reduction of 3. comparing net lending/borrowing in 2007 relative to 2003 (deficit/surplus according to the European ESA 95 public finance presentation methodology). The nominal exchange rate of the kuna against the euro was relatively stable for the remainder of the year. a further reduction in net lending/borrowing will be achieved in the forthcoming period. the central bank held no foreign exchange auctions in the said period.1m). as a result of expectations concerning the inflow of foreign capital intended for the purchase of INA shares. a considerable inflow of foreign exchange was recorded in July as a result of borrowing of enterprises abroad (EUR 500.0%-nominal appreciation of the exchange rate of the kuna against the euro.e. In the third quarter of 2008. Specifically. The deficit reduction in the observed period is primarily a result of improvement and regulation of the public finance system by strengthening budget management. In addition. i. In addition to the 3. Appreciation pressures on the exchange rate of the domestic currency continued even after the peak tourist season.3% of GDP in 2008. These kuna exchange rate movements resulted in the appreciation of the kuna daily nominal effective exchange rate index of 2. releasing thus a total of HRK 1. introduction of budget analyses and fiscal impact measurement and strengthening the tax administration. a 4. the pursuit of fiscal policy in the Republic of Croatia has been very successful. Rationality in executing expenditures and improvement of the budget process components in the forthcoming period will also be achieved by implementing the measures defined by the 2007-2011 Strategy for Improvement and Modernisation of Processes in the State Treasury. Fiscal policy Starting from 2004.5% appreciation of the exchange rate of the kuna against the US dollar and a 10. based on the highest up-to-date standards. reaching 8. and the exchange rate of the kuna against the euro fell to slightly below 7.5 percentage point fall relative to end 2003 (48. by 3. Accordingly. net borrowing/lending stood at -5.5% of GDP.4% deflated by producer prices. reaching -1. Apart from positive effects on public debt.1% deflated by consumer prices.11 HRK/EUR in mid-September.6% of GDP in 2007.9 percentage points is recorded. a 0. By smaller financing needs and focusing new borrowing on domestic sources. In the case of both indicators. i. Under conditions of increased inflationary pressures and a growth of a rate of annual consumer price inflation.2% of GDP at end-2007. introduction and expansion of the single State Treasury account. such orientation of borrowing has also had a positive impact on a further development and deepening of the domestic financial market. 97 .6% of GDP in 2007 to -1. whereas the kuna depreciated against the Swiss frank by 1. in an attempt to mitigate the intensity of the nominal appreciation of the kuna.1 percentage points in the period 2003-2007.4% appreciation of the kuna against the pound sterling was also recorded. so that the CNB intervened by purchasing EUR 189. amounting to 44.3%. Appreciation of the exchange rate of the kuna against the euro was mainly a consequence of a stronger inflow of foreign exchange during the peak tourist season.e.4% in July. a stronger appreciation was recorded than in the same period of 2007. in the first nine months of 2008. Specifically.

2009 As a result of extremely unfavourable external macroeconomic conditions in which the Croatian economy functioned in 2008. i. official forms. upon each change of prices of their products and services. general government debt totalled HRK 104. whose debt dropped by 3. liquefied petroleum gas. in view of budget deficit reduction. there are certain exceptions for specific economic activities. and which reflected. the Regulation on direct price control measures (Official Gazette 02/01. In the first half of 2008. Administratively regulated prices are regulated by the Act on Exceptional Price Control Measures (Official Gazette 73/97). among other things. The obligation to notify the prices of products. The government primarily met its financing needs on the domestic market.3 percentage points and the internal component by 1. 156/02.3. Product Market Functioning Price Liberalisation The fundamental starting point of the economic policy of the Republic of Croatia with regard to prices is the free formation of prices of goods and services. Pursuant to the aforementioned Regulation.o.1bn or 37. 98 . 2. The largest contribution to this reduction was made by the central government. 2. However.e.HŽ PutniËki prijevoz d.3 percentage points relative to 2006. with the Ministry of the Economy. deficit reduction to -0. Exceptional price control measures are implemented by: prescribing measures for direct price control (determining the highest price level. General Government Debt At end-2007. a continuation of its share in GDP is expected. carrying on of trade activity and provision of services.). Accordingly. one of the direct price control measures is currently being implemented. Pursuant to the provisions of the aforementioned Act.Narodne novine d.3. monitoring price movements and determining guaranteed prices of agricultural products.6% of GDP is planned in 2011. The reduction in the share of general government debt is a direct consequence of the fiscal consolidation process and fiscal deficit reduction. Labour and Entrepreneurship.8% of GDP. 110/04.4 percentage points of GDP at the annual level.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . where price formation is still regulated by state bodies at the national and local level for the purpose of preventing a monopoly and protecting low income consumers. passenger transport in domestic rail transport. and 3. tariffs prior to their implementation). which reflected positively on its further development. 15 days prior to the application of the prices. tariffs. i.1 percentage points.. down 0.d. Furthermore. as provided for therein. are obliged to register their price lists. in a decrease in global demand and economic activity. price reduction to a certain level and registration of price lists.e. The Regulation stipulates that legal and natural persons engaged in production. referred to in items 2 and 3. a deficit of -0. Official Gazette . the general government debt stood at HRK 104. the prices of goods and services are formed freely on the basis of market conditions. 112/07) was adopted. applies only to legal persons in the ownership of the Republic of Croatia (Croatian Railways . which administratively regulates prices of the following products and services: 1.2bn and.o.9% of GDP is expected. The external component of the central government debt was reduced by 2. in 2009.

0719 0. the sale of minority interests on the stock exchange was completely terminated and the issue of the course of effective transformation of the CPF was reopened. the portfolio structure of the number of companies and ownership shares has remained virtually unchanged compared to the previous year. In terms of the privatisation. the relatively unsatisfactory sale dynamics of companies in majority ownership of the CPF is a result of the demanding structure of the remaining portfolio. POLITICAL CRITERIA In 2007. one company is a subsidiary of Croatian Railways (HŽ . the most complex and demanding sector which has remained in the CPF portfolio.0218 0. which reduced the scope of goods and services that are subject to administrative control.6997 0. the following products and services are excluded from control: prices of public transport of passengers in regular coastal maritime transport on state lines. As such. pursuant to the Decision on the privatisation intention and privatisation principles for five shipyards in majority state ownership. 7 Of the total 5 privatised companies. As noted on several occasions.2296 2004* 0.0693 0. In view of the complexity of the shipbuilding issue. the Regulation on amendments to the Regulation on direct price control measures (Official Gazette 112/07) entered into force. whereas 40 companies were deleted from the court register following a completion of bankruptcy or winding-up proceedings)7. has remained the primary objective of the economic policy in the field of privatisation.7486 0.6993 0.6953 0.0591 0. as was the issue of the associated introduction of a new model based on the possibility of professionalising the management of part of the portfolio until the privatisation process is complete.0680 0. In 2007.0224 0.2413 2008* 0. replacing the retail price index Privatisation Completion of privatisation of the largest portion of the Croatian Privatisation Fund (CPF) portfolio.2374 * Consumer price index was introduced.3bn is in state ownership.7023 0. the share of administrative prices in the consumer price index stood at 24. Valjaonica cijevi Sisak and TLM Šibenik aluminium company. following completion of privatization of the black metallurgy sector with the sale of Željezara Split.13% and the share of 23. In this manner.7696 0. work began on resolving the issue of the long-term sustainability of the shipbuilding sector.2080 2003 0. Weights in the RPI/CP index Core inflation Agricultural products Administratively regulated prices 2002 0.0670 0.2258 2005* 0. 99 . Zagreb).2370 2007* 0.6946 0. while the share ranges from 25-50% in 87 companies.o. Accordingly. of which HRK 17. As a result of the aforementioned affair.2314 2006* 0. In mid-September 2008.o. the CPF is a minority owner with up to 25% share in equity capital in 80% of these companies (712 companies).RVR Uslužne djelatnosti d. adopted by the Government of the Republic of Croatia in May 2008. which has temporarily blocked the CPF operations. the CPF portfolio encompassed 890 companies (690 companies available for sale) with total equity capital of HRK 66.I.74% is expected in 2008. and prices of standard letters and postal cards. whereas the state is still a majority owner with more than 50% share in capital in 96 companies. especially as regards finding a strategic partner (24 tenders were invited for the sale of 15 companies − 9 for companies from the CPF portfolio and 6 for the sale of HŽ subsidiaries) and the “Maestro” corruption affair. as one of the preconditions for creating an efficient market economy. Although 46 companies were privatised last year (6 companies by a sale through a public tender. one of the most important activities taken in 2008 was the initiation of the preparation of shipyards for privatisation. especially as regards restructuring and privatisation.7bn.

Pula. i. Nevertheless. i. A detailed specification of privatisation through closed-end investment funds (number of funds. The concept of completing the privatisation of a considerable portion of the remaining CPF portfolio.). 100 . The companies which could not be sold at public tenders. to a great extent. to wide public acceptance of HITROREZ. selected at public tenders. it is believed that the benefits of the HITROREZ project are most evident in creating an environment that strengthens regulatory dynamics and increases the appetite for reforms. the aforementioned Decision provides the deadline for completion of privatisation (2009) for three shipyards (Uljanik d. consisting primarily of minority interest (the state holds up to 25% of total shares in 712 companies or 80% of the portfolio.e. An IPO of shares of closed-end investment funds is envisaged as the state’s exit strategy. both internally with shareholders and externally with the business environment. In addition.d. In the realisation of the described concept. Business Start-up and Closure The regulatory guillotine project called HITROREZ. HITROREZ is also an innovative project. The remaining 250 are currently being processed and will be completed when the conditions for this are created. was completed in 2007. In order to create the conditions for completion of the privatisation process. a methodology mostly used in the EU Member States in calculating savings on administrative costs. after the completed privatisation. and deliver them to the European Commission and to the Croatian Competition Agency for approval. and this was the first time such an approach was used in Croatia. Savings on administrative costs for entrepreneurs are estimated at more than EUR 200m and the calculation was made by the application of the simplified standards cost model (SCM). and their effect is already evident. Trogir).d. Shipyard restructuring should be performed in accordance with the model used for privatisation of black metallurgy sector. duration) will be made after the adoption of the legal framework that will allow for the operation of the aforementioned funds. Almost 50% of the recommendations have been implemented thus far. which would be transferred to closed-end investment funds. 549 were accepted by the line ministries. It also represents a rebranding of a traditional regulatory guillotine into a new brand adjusted to the situation in Croatia. This has contributed. Labour and Entrepreneurship. more than 256. individual value. In view of the achieved results of the HITROREZ project. will be forced to exit the market through bankruptcy or winding-up proceedings. and Brodotrogir d. those for which no interested investor could be found (such as companies without future).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . since they were not implemented on account of inadequate capacity or on other objective grounds.d. launched with an aim of simplifying or abolishing regulations. the analysis of the various models of the announced CPF transformation is underway. the new owner(s) should prepare individual restructuring plans in co-operation with the Government.2009 In addition to the principles upon which the privatisation models for shipyards should be based. in view of applying corporate principles in state administration. and preparation of the legal framework for the establishment of closed-end investment funds is ongoing. Of the 799 acts proposed for simplification or abolishment. a total of 87 companies in the CPF portfolio are available for sale). the Government of the Republic of Croatia has established a co-ordinating body for the implementation of the regulatory impact assessment − the Office for Regulatory Impact Assessment (ORIA). Fund management would be entrusted to professional management companies. Brodogradilište Kraljevica d. The Department for Regulatory Impact Assessment and Macroeconomic Analyses was established within the Ministry of the Economy. good preparation of the communication strategy was the most important factor. is based on the selection of high-quality shares.e. Professional and pragmatic relations with the private sector have also contributed to the establishment of a new approach to the assessments and benchmarks in regulatory guillotine and to an increase in private sector interest in participation in the project. in most cases with a market value. Business Environment. implying that. the role of the state would predominantly be to decide on the privatisation of companies in which it holds the majority block of shares and for which it has been assessed that finding a strategic partner is the most appropriate form of privatisation (at present.

More specifically.HR service offices in FINA branches. Citizens can also use the e-Katastar service of the State Geodetic Directorate and can check the status of more than 14 million registered cadastral plots from 115 cadastral offices in the Republic of Croatia. which will contribute significantly to promptness and savings of costs. In addition to cost reduction. submission of VAT forms (e-PDV) and sending electronic registration to the pension insurance system (e-Mirovinsko). which started 2 years ago. has marked its third anniversary. The pilot project of on-line registration of limited liability companies with equity capital in cash (e-TVRTKA) allows for the registration of a limited liability company at the Commercial Court in Varaždin within 24 hours. narrows the space for corruption. the pilot project of on-line company registration was launched on 30 October 2007 in the Varaždin and Meimurje Counties. 292 entities were established via on-line application at the Commercial Court in Varaždin. More specifically. Fully electronic services are also available to all the entrepreneurs in the Republic of Croatia. whereas 62 percent of users stated that the service provided exceeded their expectations. and supports the rule of law. From 1 January 2008 to 1 September 2008. whereas informatisation is one of the key elements enabling the state administration to become an efficient service for entrepreneurs and citizens. 24 061 companies and crafts have been established to date in the 61 offices. POLITICAL CRITERIA As regards cheaper and more expeditious establishment of companies. while on-line registration will be possible in the entire territory of the Republic of Croatia in the following year. whereas 78 entities were established in the traditional manner (paper form). of which 1 247 companies are in foreign ownership. The project allows for the more efficient and transparent operation of courts. as demonstrated by the “one-stop-shop”. Data on establishing. the service of the Government of the Republic of Croatia for more expeditious communication of entrepreneurs and citizens with state administration bodies. since the overall procedure normally lasts less than five days. Osijek and Split) in the Republic of Croatia will be possible by the end of this year. i.HR. the on-line registration of companies was also made possible in 2007. include submission of RMs forms (e-Regos).HR. Citizens may obtain all the information required for starting-up a company or craft.I. deleting and alignment of registered legal persons are as follows: 2007 Jan−Mar Establishment Companies Other Deleting Enterprises Companies Other Alignment with the Companies Act Source: Central Bureau of Statistics 2008 Jul−Sept 3 240 2 548 692 92 4 74 14 120 Oct−Dec 3 500 2 718 782 119 2 106 11 113 Jan−Mar 3 783 2 935 848 850 35 794 21 397 Apr−Jun 3 499 2 637 862 281 6 158 117 162 Apr−Jun 3 567 2 701 866 102 4 80 18 153 3 724 2 775 949 218 4 119 95 223 101 . established to date in FINA branches. In addition to submission of annual financial reports and an insight into annual financial reports of other business entities (RGFI). Company registration through HITRO.e. More than 90 percent of users have expressed their satisfaction with the level of service. and register new companies and crafts in the health and pension insurance system at the HITRO.HR service has saved new entrepreneurs an average of HRK 1 000 and about 10 working days. where full implementation of the pilot project is underway. HITRO. submission of statistical reports on wage payments (SPL). The implementation of on-line registration of companies at 3 regional commercial courts (in Zadar. primarily. and signing of electronic mail and documents with electronic signature. submission of quarterly statistical reports (TSI). These data relate to all establishments. 79% of companies were entered in the court register through an on-line application. The service of establishing a limited liability company has been available to citizens for three years. The situation is similar with crafts. access to information on creditworthiness (WEB-BON). in addition to the on-line registration of crafts. the FINA card also supports e-Government services. HITRO. The key prerequisite for all the forms of electronic business is ownership of a FINA card with a certified digital signature. submission of reports on payments of compensations of material rights of employees (TMP). the largest savings were accomplished in terms of time. compared to 21% of registrations by the application through a paper application. These.

Internet use: 81% of enterprises perform financial transactions through the internet. electronic communications. available to all users on the websites.20bn by 2012. The Croatian Parliament adopted the Act on Amendments to the Legal Profession on 26 September 2008.e. market growth was considerably smaller in terms of HRK. information security and computer crime. reaching USD 1. as well as e-pisarnica (eSecretariat) of the land registry department.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . i. With IT consumption of USD 276 per capita. which is marked by a high level of ICT integration into business: 95% of enterprises use computers and 93% have internet access.95%).e. Consumption of hardware. The provisions of the Act relating to the status of foreign lawyers in the Republic of Croatia will begin to apply upon Croatia’s accession to the EU. representing a slowdown relative to the previous two years. and will reach USD 2. However.3% per year on average in Croatia in the forthcoming five years.10% of digital land registry data on the territory of all municipal courts in the Republic of Croatia have been verified. 102 . electronic documents. Broadband internet access prevails. with 79% of enterprises using some form of fixed broadband connection. and includes regulations concerning electronic signatures. i. presently in force in the Republic of Croatia. The legislation in the field of IT.9%. consists of several sets of laws and ordinances regulating this area. 61% of enterprises monitor market changes through the internet.2009 Positive trends in the economy relate to ICT business.9% in 2007. due to depreciation of the US dollar. land registry departments of the same courts. electronic trade. IDC forecasts that IT consumption will grow by 10. As regards real estate. land registry certificates are issued on the same day. software and IT services in Croatia increased by 19. the time required for the process of registration in the land registry has been reduced from an average of 800 days to 73 days (2004−2008). land registry data are transparent. the time required for mortgage registration was reduced from an average of 23 days to 7 days in the Republic of Croatia. Croatia reached 31% of the average IT consumption per capita in EU27. it should be noted that the manner of registration in land registries of the municipal courts in the Republic of Croatia. 51% of enterprises have their website. These amendments allow foreign lawyers to practice law in the Republic of Croatia.3%. in accordance with the recently published annual survey by IDC Adriatics on the movements on the Croatian IT market. expressed in HRK. An increase in the share of IT services and software in total IT consumption in a country indicates progress and an improved level of maturity. 48. amounting to 10.66bn). in the same manner as they are allowed to practice law in other EU Member States. facilitates operations for legal persons and economic entities for several reasons: land registry files are digitalised in all municipal courts of the Republic of Croatia (98.24bn (HRK 6. rose by a more modest 6. The value of the provided IT services.

as a result of which their share dropped to 4.8% share in total assets.5% of total bank assets and banks in foreign ownership had a 90. reduced total financial sector assets at the end of the second quarter of 2008 to HRK 461. whereas the same ratio increased slightly for household loans and considerably for loans to the public sector. along with various domestic factors. the corporate loans to GDP ratio did not change. after climbing 63. of which 75. The Croatian share index CROBEX thus fell by 31. In order to improve foreign exchange risk management.5% in the first six months of 2008. As such.3. in the first six months of 2008.8% at end-2007 to 6.2% drop compared to end-2007. An increase in the share of the banking sector in total assets of financial intermediaries strengthened its predominance among financial intermediaries in financing the economy. or by slightly more than HRK 11.5% share in total bank assets.2%. In 2008. At the end of June 2008. A drop in prices of government bonds in the first half of 2008 reduced bond market capitalisation. Accordingly. in comparison with the record low level of 3. Leasing companies. which stood at 13. at the end of June 2008.5% can be accounted for by banks and 1. Assets of open-end investment funds were reduced by 36. At the end of June 2008.4% by housing savings banks.9% in total assets. which started in end-2007 and continued into the first half of 2008. with a share of 6. adversely affected developments on the domestic capital market in the first half of 2008. The importance of the banking sector is also reflected in the fact that most of the non-banking financial intermediaries are directly or indirectly related to the largest banks in the Republic of Croatia.9%.1% at end-2007. banks in private ownership accounted for 95.8%.1% in June 2008. it still represents a less important source of financing for the domestic economy. the share of substandard placements in total placements stood at 3. although direct foreign borrowing also has an increasingly more important role in its financing due to a deceleration of bank loans growth.3% to 76. 8 Gross domestic product at the end of June 2008 equals the sum of outturns in the last two quarters of 2007 and in the first two quarters of 2008.6% of GDP8 at the end of June 2008. POLITICAL CRITERIA 2. banks’ household loans accounted for 40%.0bn. the Croatian National Bank has introduced an obligation to monitor and control currency induced credit risk as of June 2006 and it has increased risk weights on several occasions (last time early in 2008) for customers with a mismatched foreign exchange position. Financial Sector Unfavourable developments on the domestic market.0% of GDP at the end of June 2008. Downward trends on the world financial markets and on regional markets.3bn. A drop in prices of a large number of shares resulted in the decrease of share market capitalisation from 128. stimulated by the CNB’s restrictive measures implemented in 2007. corporate loans for 30% and loans to the government units for 6% of GDP.1% of GDP at end-2007 to 85. are ranked second by the size of assets (according to data for the first quarter of 2008).I. The estimated exposure of banks to credit risk has not changed significantly since 2006. Despite the continued borrowing of cities and corporations on the domestic capital market. 103 . The spread between the average lending and the average deposit interest rate increased slightly from 5.2% in 2007. which is a 1.4.3% share in total assets (also according to data for the first quarter). the share of the banking sector increased from 75.1% of total financial sector assets. Since other financial intermediaries reduced their assets in the observed period. and are followed by insurance companies with a 5. the banks are stimulated to have higher capitalisation and thus stronger resistance to risks. Such a favourable result can be partly accounted for by an on-going improvement of bank risk management and the favourable macroeconomic environment. whereas compulsory pension funds are in fourth place with a 4.

8% of pupils. Primary school education is compulsory for all school-age children. In the 2007/2008 school year. In addition. The average number of pupils per class remained the same. which mainly relates to children in the year preceding the beginning of primary school. and 129 942 or 87. at present. In the 2007/2008 school year. and to increase the coverage of children by pre-school (in the year preceding the beginning of primary school) from 96%. education in the Republic of Croatia was organised in 871 main schools and 1 365 regional primary schools. The National Curriculum Directorate was established within the Ministry of Science. which relates to the development of the curriculum process within the education system from the pre-school to the secondary school level. 104 . Measures to increase the number of children enrolled in pre-school programmes are being implemented. which is a 3. 384 261 pupils attended primary school. the employment rate for the population aged 15 to 64 rose from 55.6%. by funds earmarked in the county and city budgets and by the public-private partnership. at present. The Strategy for Preparing and Developing the National Curriculum was adopted. external evaluation was performed of 4th and 8th grade primary school pupils by the Education and Teacher Training Agency. plans short-term and long-term changes within the education system at the pre-school. with the financial support of the World Bank. implemented since 2005. By 1 September 2008.1.2009 2.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Ministry of Science. 19 359 of children. in which certain provisions are fully aligned with the EU legislation. Education and Sports has invested more than HRK 3m in 54 primary and secondary schools and in 1 kindergarten.1% in the first quarter of 2008. Education and Sports. the coverage of children increased in five counties by approximately 1 600.e. which monitors the implementation of the national curriculum and. registered unemployment with the Croatian Employment Service was reduced from 245 768 to 219 747. This evaluation encompassed 2 863 4th-grade classes in 844 primary schools and 2187 8th-grade classes in 842 primary schools. The total number of pupils in primary schools was 380 942. to 60% of children. Education and Sports. which is 0. i. from 43% of children. In October 2007. the Ministry of Science. According to the interim data of the Central Bureau of Statistics (CBS). According to the labour force survey data.4 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU 2.97% attend private kindergartens.64%. In co-operation with the units of local and regional self-government. the Act on Amendments to the Pre-school Education Act was adopted. both at the county and national levels (20 pupils per class). The new Act on Primary and Secondary School Education (Official Gazette 87/08) was adopted. EIB II and CEB V programmes. whereas the unemployment rate for the population over 15 years of age decreased from 11. by 10. to 98%.2% to 10.2% rise. As a part of the project Network of Schools without Architectural Barriers.03% attend city/municipal/county kindergartens.4. Labour Market All labour market indicators in the Republic of Croatia indicate continuous growth in employment and a drop in unemployment. equipped 31 new kindergartens in municipalities and cities where no organised programmes for children of pre-school age were previously in place.2% in the first quarter of 2007 to 57. total registered employment increased from 1 510 942 in July 2007 to 1 558 702 in July 2008. architectural adaptation of schools for pupils with motoric disabilities was financed by a World Bank loan.0% in the same period. Primary education is completed by 95. or 12. In the same period. on the basis of evaluation of the curriculum components. primary and secondary school education levels.4% less than in the 2006/2007 school year. Human and Physical Capital Education The total number of children included in pre-school education is 149 300 or 56.

It should be noted that a total of HRK 370m was earmarked in the Government budget for the measures contained in the Annual Employment Promotion Plan in 2006. Since the expansion of the application of the Collective agreement and the previous regulation of the minimum wage institute and of the minimum wage level threatened. this Act has improved the social and labour position of the lowest-income workers.3% for a low-income employee. for the purpose of promoting active aging. which started in 2006.I. due to demographic movements. since the largest number of newly employed are young persons without work experience and long-term unemployed persons. This is a significant increase in a relative participation in higher education. Accordingly. During 2006. two/ three-year colleges and higher education institutions also provide higher education. of whom 1 495 (or 43. The total number of pupils enrolled in secondary schools fell by 5. According to Eurostat. Of the total number of covered persons (3 410). 2. in accordance with the criteria of the Lisbon Strategy. While the number of pupils enrolled in grammar (preparatory) schools rose by 4. in qualitative terms.5% in arts schools. 398 persons participated in the training for an unknown employer. The tax wedge in the Republic of Croatia is 37. As regards the tax system. the existence of a share of employees and their family members and contributed to tax evasion and the appearance of the black market. In 2007. social security contributions and taxation relative to the overall labour force cost serve as an indicator of the tax wedge level. Taking into account the fact that in the Republic of Croatia. Despite this. 539 persons participated in the training for a known employer (training grants). Of all the pupils enrolled at the beginning of 2007/08 school year. In addition. 115 000 workers receive monthly wages of less than HRK 2 500. to a great extent. In addition. 4 269 were employed through employment grants. indicates favourable results. the new Contributions Act permits employment of first-time employees or those with a voluntary work contract. In addition to universities. 25% in three-year vocational programmes. for the purpose of promoting employment of young persons without working experience.9% in special schools. 136 129 students were enrolled in higher education (ISCED level 5). and indicates that these are the employers creating new jobs. while the amount earmarked for that purpose increased to HRK 530m in 2007 and HRK 480m in 2008. according to the labour regulations. the Minimum Wage Act was adopted.4% in 2005. 44. the tax wedge in the Republic of Croatia is slightly lower than in the EU. At the beginning of 2006/2007 school year. 105 . Until 31 August 2008. there are various sub-trends within this general trend. especially professional studies.1%) were women. of whom 4 346 (or 51. the measures covered 8 494 persons. Of the total number of covered persons (8 494). without compulsory contributions that are calculated and paid “on the basis” and that represent a cost to the employer (health insurance 15%.7%) for a period of up to one year starting from the day of first employment or beginning of work under a volunteer contract. the number of pupils enrolled in three-year vocational programmes for industry and crafts was reduced by 27.6%. 2 479 persons were employed and 873 persons participated in training programmes. 2 960 persons participated in the training for an unknown employer.8%) were women. which has likely brought Croatia closer to the EU average. 707 persons participated in the training for a known employer (training grants). 27% in grammar (preparatory) schools and 0. However. progress in the educational system is also very important. the tax wedge in the EU amounted to 39. 1 810 persons were employed through employment grants. occupational health insurance 1% and for employment 1. which is related to the employment policy. In view of the fact that the Republic of Croatia strives to build its competitiveness on the global market through knowledge and investment in human resources. POLITICAL CRITERIA Employment Promotion A new cycle of active employment measures. and are generators of economic development and growth. who account for 7.1% between the 1997/98 and 2007/08 school year. while 531 persons were employed through the Public Work programme.2%.6% of total employment. The number of students participating in higher education increased by 51% in the period between the school year 1997/1998 and the school year 2007/2008. of whom twothirds were enrolled in university studies (ISCED 5A) and one-third in professional studies (ISCED 5B). the fact that users of active employment measures are mostly small and medium-size employers is also assessed positively. pension insurance beneficiaries are exempt from contributions payment for part time work at home. while 663 persons were employed through the Public Work programme.3% and those enrolled in four-year technical programmes increased by 7. of the total number of persons covered by the measures (4 869). 3 410 persons were covered by the measures.5% participated in four-year technical programmes. according to the available data.

(GSM/DCS-1800 + UMTS) The number of mobile electronic communications network users reached 5 618 200 at the end of the third quarter of 2008 (penetration rate of 126. Šibenik−Knin County.o. A phased share of the minimum wage in the average wage for the previous year for each subsequent accounting period will be calculated after the Central Bureau of Statistics has published data on real GDP growth for the previous year. which is a share of approximately 21. the Ministry of the Economy. by increasing the share of the minimum wage in the average wage for the previous year by real GDP growth coefficient in the previous year (the formula for the share calculation is 39% + 39 x real GDP growth/100 x average wage in the previous year). the first JAP follow-up seminar was held in December 2008 and the first report on JAP implementation and recommendations for the improvement of the existing measures and preparation of new measures were presented to the work groups for the preparation of the National Implementation Plan. according to the number of users. By 1 November 2008. The working group will also draft a proposal of the National Implementation Plan for Employment 2009−2010 by the end of 2008. The recommendations arose as part of the 2-PHARE 2005 component. ported numbers in the mobile networks totalled 58 931. Furthermore.6%). Labour and Entrepreneurship has proposed the appointment of a working group consisting of the representatives of social partners for the development of the Plan for implementing measures and for co-ordination of JAP activities.7%). (GSM900 + UMTS) II.o.3% in the market of public voice services in the fixed network.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the European terminology and qualification of employment policy measures according to the EUROSTAT database methodology was also presented. In accordance with the obligation to monitor JAP implementation. By 1 November 2008. the highest representatives of the Government of the Republic of Croatia and the European Commission signed the document entitled Joint Assessment of Employment Policy Priorities − JAP. a new cycle of active employment measures will begin with the preparation and implementation of the National Implementation Plan for Employment 2009−2010. As the co-ordinating body competent for the implementation of the JAP. which included the participation of representatives from state administration bodies and social partners at the national level and in four counties (City of Zagreb. so that the minimum gross wage increased by approximately HRK 300. ECONOMIC CRITERIA Vipnet d. as of 1 July 2008 the minimum wage is at the level of 39% of the average wage for 2007.o. Services in mobile electronic communications networks: Three carriers operate on the mobile communications market: T-Mobile Hrvatska d.o. from HRK 2 441 to approximately HRK 2 747. (GSM900 + UMTS) TELE2 d. 106 . Pursuant to this.6% share in the total income on that market. By 1 November 2008. 408 collocations and 86 497 unbundled local loops were realised in the Republic of Croatia The number of subscribers to cable distribution services reached 133 450 at the end of the third quarter of 2008.o. The total number of subscribers to 9 new operators in the fixed network reached 400 900. Osijek−Baranja County).2009 With the adoption of this Act. The National Implementation Plan for Employment 2009−2010 will mark the start of the new cycle of implementation of the active employment measures in the Republic of Croatia. and a 16. Physical Capital (Information Society and Media − Electronic Communications) Services in fixed electronic communications networks: At the end of the third quarter of 2008. the total number of subscribers to public voice services in the fixed network amounted to 1 844 380 (penetration rate of about 41. Approximately HRK 500m will be earmarked in the 2009 State Budget for implementation of the National Programme.o. Meimurje County. In May 2008. ported numbers in the fixed network totalled 255 366.

the authorisation regime for operators of electronic communications networks and services (implying the swap of all existing concession contracts and licences to provide telecommunications services and other approvals with the new general authorisations regime). interactive services in the Republic of Croatia. by ensuring equal and non-discriminating access to infrastructure for all market operators. i.2. efficient and higher quality mechanism of protection of rights of end users of electronic communications services (consumers).I. the number of broadband Internet users reached 488 200. Internet users presently total 2 148 500. issues of competition and SMP regulation of the operator of electronic communications networks and services.4%.4%. Following a reduction in the prices of broadband Internet access. The share of new broadband access service providers stood at 15. a more expedient. 98. The Government of the Republic of Croatia accepted the aforementioned Strategy and the Action Plan at its session held on 19 March 2008. by introducing and applying the institute of the right of way and by ensuring transparent conditions for the access and joint use of the constructed electronic communications infrastructure and the related equipment. POLITICAL CRITERIA Internet services and broadband access services: At present. the new Electronic Communications Act was adopted (Official Gazette 73/08). with the exception of the provisions of Articles 97.e. 99.d.) and more intense continuation of the local loop unbundling process contributed most to the development of competition in the field of broadband access in 2008. 2. and entered into force and began to be applied as of 1 July 2008. construction and use of electronic communications infrastructure and the related equipment. and further development. which will remain in force until 1 January 2009. 158/03. further improvement of efficient operation and organisational structure and supervisory authority of the regulator. At the end of the third quarter of 2008. Transport and Infrastructure.o. there are 44 Internet Service Providers (ISPs) on the market licensed to provide Internet access services and 39 service providers licensed to provide Voice over the Internet Protocol services (VoIP).o. 107 . until the entry into force of subordinate legislation pursuant to the Act on Technical Requirements for Products and Conformity Assessment. representing a penetration of 48.4. 100 and 102. In the new Electronic Communications Act. Postal services The expert study entitled Development Strategy for the Postal Services Market in the Republic of Croatia until 2013 and the Action Plan for the implementation of the Strategy for the Postal Services Market in the Republic of Croatia until 2013 were prepared by the consultant company Roland Berger Strategy Consultants d. pursuant to a contract concluded with the Ministry of the Sea. which will regulate these fields in compliance with the applicable EU Directives. which is a penetration rate of 11% relative to the population in the Republic of Croatia. further growth in the number of broadband Internet users is expected. This new Act has completely replaced the Telecommunications Act (Official Gazette 122/03. special attention is attached to: the further strengthening of independence and development of the required capacity of the national regulatory body in the field of electronic communications and postal services. The wholesale service of a broadband access operator with significant market power (HT d. the required conditions for complete introduction and development of digital television and radio broadcasting and the accompanying advanced. Reforms and Liberalisation of Network Industries Information society and media − electronic communications: In the process of legislative alignment with the EU acquis and fulfilment of benchmarks for completing the negotiations under Chapter 10—Information Society and Media. relating to radio equipment and telecommunications terminal equipment and electromagnetic compatibility (EMC). 60/04 and 70/05).

which will enter into force on 1 January 2010. up 2. The most important precondition for transposing the Third Postal Directive (adopted on 20 February 2008) into the Croatian legislation and practice. The hotel and restaurant industry employed 5.3% of the total number of employed persons in the first half of 2008. which employed 20. In the first half of 2008. The fishing sector employed 0. 12. Through adoption of the Act.4. may be up to 50 grams for items of correspondence as of 1 January 2006.8% of total employed persons. Of the total employed. a 2. Employment in real estate business was 4. 108 .0% of total employed persons.0% of the total employed. This allows for a significant amount of time to prepare the domestic market of postal services and public operator. whereas mining and quarrying employed 0.8%. there were 1 615 thousand employed persons in the first half of 2008. hunting and forestry. These requirements relate to the scope of reserved services which. alignment is achieved with the requirements of the regulatory framework. while transport.2% in comparison with the first half of 2007. In accordance with Article 7 of Directive 2002/39/EC amending Directive 97/67/EC. The Act on Amendments to the Postal Act entered into force on 1 July 2008. The Act on Amendments to the Postal Act (Official Gazette 63/08) expands the authority of the national regulatory body for postal services (through strengthening of supervisory authorities and authorities concerning market regulation). Wholesale and retail trade.5% of total employed persons. education 5.3%.8%. Construction employed 9. which is treated equally as the inspection supervision and authority. especially universal postal services. which is a 3.8% of all employed persons worked in this activity. The share of employed in electricity. adoption of the new business plan and its consistent application until 2010.8% worked in agriculture. in accordance with Directive 2002/39/EC... is restructuring of the public operator. storing and communication employed 6. as well as dynamics of further liberalisation of the postal services market in the Republic of Croatia.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Public administration and defence and compulsory social security employed 6. The largest number of total employed persons continued to work in the processing industry. up 11. gas and water supply was 1. and to ensure accessibility of the universal postal services (opening of the postal market and ensuring full liberalisation of the postal services market are proposed for 2013).4% of all employed persons. with the exception of the provision concerning the reduction of the reserved sector. 2. social and personal activities 4. the aforementioned Act reduced the weight limit for the reserved sector for an item of correspondence from 100 grams to 50 grams and the price limit was reduced from three times the public tariff for an item of correspondence in the first weight step of the fastest category to two-and-a-half times the said weight and category. health and social work 5.2% of the total employed.2009 The aforementioned Strategy represents the fundamental document determining the principles of and guidelines for the development of the postal services market and national priorities in preserving and developing postal services. 14. repair of motor vehicles and motorcycles and objects for general consumption and household use is the activity employing the second largest number of workers.2%. and also to the expert supervision of the regulatory body. The share of those employed in financial intermediation amounted to 2.8% rise compared to 2007. which merged with the national regulatory body competent for electronic communications (telecommunications) into a new. as determined by the Strategy.3 Structural Progress in the Economy Employment by Sector According to the labour force survey data.7% and other community.5% compared to 2007. as established by Directive 97/67/EC on common rules for the development of the internal market of Community postal services and the improvement of quality of service and Directive 2002/39/EC amending Directive 97/67/EC (the Postal Directive). uniform national regulatory body − the Croatian Post and Electronic Communications Agency (CPECA). after the processing industry.0% of the total employed in the first half of 2008.0% increase compared to the number of those employed in this activity in the first half of 2007. The Strategy also determines the time frame of further liberalisation of the postal services market in the Republic of Croatia. under the scenario of gradual market liberalisation.

where the dominant role is held by entrepreneurs in private ownership.7 78. According to the data for the January-June 2008 period.3 in ve st m en ts Mixed ownership Number 718 127 839 Share (%) 0.6 0.9 8. Number of entrepreneurs by type of ownership in the Republic of Croatia.4 12.9 The achieved financial results in the first half of 2008 confirm the predominant share of the private sector in total business results of entrepreneurs in the Republic of Croatia.9 12.7 8.9 Source: Financial Agency Small and medium-size enterprises have retained or increased their share in the total economy: 99.3 11. 109 .7% of total employment. according to the size criterion set out in the 2007 Accounting Act. POLITICAL CRITERIA Small and Medium-Size Enterprises Transformation of existing entrepreneurs in state ownership into entrepreneurs in private ownership and a simultaneous establishment of a large number of new entrepreneurs in private ownership marked the economic developments that are also monitored and reflected in the achieved financial results of the entrepreneurs by ownership structure − the dominant role of the private sector and declining role of the state.1 79.4 97.2 1.9 13.4% of the number of business entities. trade.7 81. entrepreneurs engaged in the four most important activities (processing industry.9 8.7 77. storing and communication) and entrepreneurs from the City of Zagreb. transport.6 73. the situation is as follows: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0.0 bu ye rs Number 500 2 852 su pp lie rs Joint ownership Share (%) 0. 44% of total GDP and 40. is also predominant.5% of exports.9 13.9 12.0 78.7 em pl oy ed rs in co m e Private ownership Number 81 121 669 905 ex pe ns es Share (%) 97. 64.0 11. construction. The business results of entrepreneurs in the Republic of Croatia again confirmed the main characteristic of the Croatian economy.9 Source: Financial Agency state private joint and mixed ownership 9.0 7. Jan-Jun 2008 Description Number of entrepreneurs Number of employed State ownership TOTAL Number 83 104 917 319 765 116 723 en tre pr en eu Share (%) 0.5 14.6 73. The role of small enterprises (small and medium-size enterprises).3 12.I.

Maj. fails for any of the shipyards planned for privatisation. i. The first will be applied to the Uljanik shipyard. By spending HRK 100 of total expenditures generated a revenue of HRK 105. In addition. In addition to the bid price for shares. which rose by 14.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In the event the privatisation on the basis of a public tender. privatisation of the aforementioned shipyards will begin pursuant to the Privatisation Act. the Government adopted a decision on shipyard privatisation on 21 May 2008. Maj. Compared to the same period of the previous year. after the shipyards have submitted the new restructuring programmes following their privatisation. the procedure of approval of individual shipyard restructuring programmes by the Croatian Competition Agency (CAA) was suspended on 29 July 2008. Shipbuilding restructuring and privatisation In July 2008. market access. Brodotrogir. Those employed with entrepreneurs subject to profit tax earned an average net wage of HRK 4 338.4. bidders will be obliged to prepare a restructuring programme. will be subject to assessment by the Croatian Competition Agency. This decision was based on the fact that. to be invited in 2008. 2. and in accordance with the strategic determination of the Government concerning privatisation of the state portfolio to improve its efficiency and competitiveness for functioning in the conditions which will occur after Croatia’s accession to the EU. whose losses do not exceed the value of equity capital.2% rise in consumer prices). other relatively favourable results were also recorded in the same period: increase in the number of employed by 6. a special regulation.4% (comparison with the data for the first six months of the previous year). Croatian entrepreneurs operated relatively successfully in the first six months of this year. Accordingly. the programme approval procedure by the CAA will continue in 2009.1%. 110 .2009 Despite the record-high inflation of 6.e.4 State Interventions in the Economy Large state-owned enterprises Since the efforts aimed at shipbuilding restructuring did not result in the expected progress in the previous period. The main reason for the deteriorated profitability of operations is a faster growth of expenses than income growth due to a large increase in prices.2% in the last five years. the Agency issued conclusions on suspending the approval procedure for state aid proposals contained in the restructuring programmes for 5 Croatian shipyards (Brodograevna industrija 3.3%. improvement of managerial know-how and operating efficiency and to promote introduction of new technologies. Brodosplit. The announcement of the privatisation tender results is planned for the fourth quarter of 2008. where the proposals for state aid. The Decision relates to the large shipyards: 3. the invitation of a second public tender is planned for the third quarter of 2009. and 76 of these were resolved. Kraljevica and Uljanik. State Aid In the period 2006−2007. from the legal point of view. According to the set plan. total income grew at a rate 12. Two privatisation models will be used. the shipyard privatisation procedure is a prior issue in the procedure of granting state aid.61 in the first six months of this year. increase in gross fixed capital formation by 5. Privatisation of the shipyards is intended to ensure an inflow of fresh capital. For shipyards that will not be privatised. contained in these programmes. The total number of received administrative cases also included 42 proposals for granting state aid for shipbuilding.92 in the same period of the previous year.0% in nominal terms and a drop of 1. in accordance with the Decision of the Government of the Republic of Croatia of 21 May 2008. bankruptcy proceedings will be initiated in accordance with the Bankruptcy Proceedings Act. Brodosplit. an increase of 5.7% and increase in sales abroad by 13. Brodogradilište Kraljevica and Uljanik). Brodotrogir.9% slower than total expenses. the Croatian Competition Agency received a total of 111 cases concerning state aid. as compared to HRK 106. while the second will be applied to the remaining shipyards which have reported losses above the value of equity capital. Accordingly.1% in real terms (due to a 6.

participated in the definition of the public tender for privatisation of the two aforementioned entrepreneurs. to prepare an investment plan and business plan. regional aid and aid for agriculture and fisheries. when the Government of the Republic of Croatia adopted the National Steel Industry Restructuring Programme. as entrepreneurs in difficulties) started in 2007. The procedure of granting state aid will continue after the Ministry of the Economy. which was submitted to the Croatian Parliament.3% in 2007. state aid for rehabilitation and restructuring. was concluded with the entrepreneur ZLOMREX S.9% in 2007.o. Meanwhile.7 in 2006 to HRK 2 033. (previously Valjaonica cijevi Sisak d. Labour and Entrepreneurship and the Croatian Privatisation Fund have notified the Agency of the completion of privatisation process and have delivered the investor’s investment plan and business plan to the Agency.o. the Agency.5% in 2007.o. without the resolution of that issue. As in the case of shipbuilding.5 in 2007. along with other documentation and documents required in line with the state aid regulations. in accordance with the Decision of the Government of the Republic of Croatia. the Agency adopted the Annual Report on State Aid for 2007. the Agency initiated an ex officio supervisory procedure over the implementation of state aid.4m. which is a 2. prepared by the management boards of these shipyards. from HRK 1 797. 111 .d. in accordance with state aid rules and regulations relating to granting of state aid to entrepreneurs in difficulties.8%) and tax reliefs (10%).) in the 2002-2007 period.d. the above stated amounts mostly relate to subsidies. The amount of state aid per capita rose by 13%. state aid granted in the previous year amounted to HRK 8 947. steel industry (privatisation of two steel mills). According to the compiled data. granted to shipyards. the Agency has focused in particular on issues related to the steel industry sector. Later.. the contract on sale and transfer of stakes in Valjaonica Cijevi Sisak d. In early 2008. Privatisation of black metallurgy Apart from shipbuilding. (Poraj. and CMC Sisak d. among other things. These are followed by state guarantees (24. More specifically. Following a completion of the public tender. accounting for 58% of total state aid in 2007. the final account was prepared of the state aid granted to the entrepreneurs Željezara Split d.o.I. an increase of 13% compared to 2006.o. POLITICAL CRITERIA which is conducted by the Agency pursuant to the provisions of the State Aid Act.2% in 2006 and 3.1% in 2006 to 4. Labour and Entrepreneurship.d. This increase can primarily be accounted for by larger amounts of state aid for rehabilitation. Osijek. Data on the amount of state aid In September 2008. In terms of aid instruments.5 in 2007. from 8. the Agency cannot complete the procedure of granting state aid to shipyards on the basis of individual restructuring plans. from HRK 5 388.6% recorded in 2006.o. The share of state aid in GDP totalled 3.d. Restructuring of the steel industry sector (Valjaonica cijevi Sisak d. One of the characteristics of the year 2007 was a reduction of the share of state aid in government expenditures. and Željezera Split d. adopted the method of accounting for state aid contained in the state guarantees for the steel industry sector.6 in 2006 to 5 898. which is a decrease relative to 2. State Aid Supervision In 2007. aid to the transport sector (Croatian Railways). Poland) on 3 August 2007. the Agency. the obligation of the new investors to be selected in the privatisation process is. on the basis of which the investors were selected. and this was also submitted to the European Commission. The share of favourable loans in the total amount of state aid stood at 2. relating to the procedure of supervision over aid granted for restructuring of the entrepreneur Slavonija IMK d. the increase in the total amount of state aid had an impact on an increase in state aid per employee. since.99% in 2007. was concluded with the entrepreneur Commercial Metals International AG (Baar.8% increase. Switzerland) and the contract on sale and transfer of shares in Željezara Split d.o.o.08% in 2006 to 7. Consequently. in co-operation with the European Commission. Equity participation fell from 5. together with the Croatian Privatisation Fund and the Ministry of the Economy. which is a 9% growth. serious rehabilitation and restructuring of the steel industry sector began at end-2005. upon which the shipyard restructuring should be performed and their long-term sustainability (costeffectiveness) established based on market principles.A.

8%. Italy 0.0%). to Slovenia by 2.2% in the first ten months of 2008. refined petroleum products and nuclear fuel (11. Germany (10.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 Furthermore. whereas imports rose by 9. refined petroleum products and nuclear fuel (66.9% of GDP. which is an increase of 9. up 5. while exports to Austria were reduced by 0.0%). the Agency also initiated two ex officio supervisory procedures that are still underway.4. and manufacture of chemicals and chemical products (6. These are supervisory procedures over approved programmes in the textile and leather industries and in the sector of automobile parts manufacturing. followed by exports to Bosnia and Herzegovina (16.5 Trade Integration According to national accounts data.1).8).8% compared to the same period of the previous year. whereas goods imports recorded a 11.6%.9%) and Austria (5. The share of goods exports was 23. down 2. In comparison with the same period of 2007. total goods exports expressed in kuna increased by 5.7% growth.8%. In the first ten months of 2008. exports to Italy (18.8%). while the share of goods imports was 52.6%) extraction of crude petroleum and natural gas (22.9%.2% of GDP in the first semester of 2008.3%. Exports to EU countries accounted for 61.5%) followed by the manufacture of other transport equipment (11.1% of the total Croatian goods exports in the first ten months of 2008.8%) accounted for the largest share in the first ten months of 2008. If the category of other means of transport is excluded from goods exports and imports. Coverage of goods imports by goods exports was 45. Imports from EU countries accounted for 64. exports to Germany by 14. Categories which contributed most to goods imports in the first ten months of 2008 are: manufacture of other transport equipment (a year-on-year import growth 58.8% over the same period of 2007.8% in the first ten months of 2008.1%.7%) and manufacture of electrical machinery and apparatuses (18. 2. Analysing merchandise trade by activity. These procedures are still underway and are planned to be completed by end-2008. manufacture of coke. exports rose by 4. the share of exports of goods and services in GDP expressed in current prices was 39.9%).7%). Slovenia (7.2%%). In terms of the structure of goods exports by country. while the share of imports of goods and services amounted to 57. in 2006.0% of the total Croatian goods imports in the first ten months of 2008. goods exports to Bosnia and Herzegovina rose by 17. 112 . manufacture of coke.7% year-on-year. the largest contribution to exports growth in the first ten months of 2008 was made by manufacture of chemicals and chemical products (16. which are characterised by a large number of state aid beneficiaries and a large quantity of data to be collected in order to make a valid assessment.6 percentage points over the same period in the previous year.8%.4% in the first semester of 2008.

Croatia recorded an average inflation rate of 6. More specifically. Favourable developments arising from fiscal consolidation will lead to a further reduction in general government deficit and in the share of public debt in GDP in the mid-term period. Appreciation pressures were mostly the result of the seasonal inflow of foreign exchange from tourism.6%. the central bank continued to pursue monetary policy aimed at ensuring stable movements of the nominal exchange rate of kuna against the euro.3% was recorded in 2007. Accordingly. Consequently. net lending/borrowing is expected to stand at -1.1% for the fulfilment of the Maastricht criterion of price stability in the observed period. in terms of public finances. an increased demand for kuna intended for 113 .6% of GDP in 2011. In the period from September 2007 to August 2008. from 5. In addition. which is down 3.6% of GDP in 2007. The increase in the annual inflation rate can primarily be accounted for by the acceleration of the annual growth rate of energy prices (prices of refined petroleum products and electricity) and food prices (prices of bread and grain products. The annual rate of change of the consumer price index rose from 2. oil and fat products). The described developments will have a positive impact on the public debt movements. In addition.33 HRK/EUR at end-2007.0% at end-2006 to 5. in terms of the harmonised index of consumer prices (HICP). a large growth of household disposable income and considerable acceleration of real annual growth of personal consumption also point to the presence of inflationary pressures coming from the demand side.3% of GDP in 2008 and at -0. the share of public debt in GDP.8% in December 2007 to 8. in terms of its further reduction in the forthcoming period. amounting to 5.5. POLITICAL CRITERIA 2. meat. In the first seven months of 2008. the 12-month average consumer price inflation rate was 6.2% at end-2007. In August 2008. which amounted to 44. a moderate nominal appreciation of the kuna exchange rate against the euro of 0. up 3. with the value of the euro dropping from 7. Negative shocks on the supply side had the greatest influence on the annual growth of consumer prices in 2007. milk. as already stressed. the Maastricht criteria have been met. with a significant inflation acceleration recorded after July. dropped by 4. which stabilises domestic inflationary expectations and movements of import prices from the Eurozone.1 percentage points over December 2007. increased inflationary pressures represent one of the main characteristics of the macroeconomic environment in 2007. supply of foreign exchange received on the basis of corporate borrowing abroad and inflow of foreign exchange intended for bank recapitalisation.4% in July 2008. Exchange Rate Stability In 2007. which is also above the estimated reference value of 4. which started in 2004.0%. A significant carry-over effect from 2007 on the average inflation in 2008 had a considerable impact on that increase. In general. net lending/borrowing (deficit/surplus in accordance with the ESA 95 methodology) stood at -1. an acceleration of the annual rate of change of consumer prices was recorded. However.5 percentage points compared to end2003. the inflation rate was slightly lower. as a consequence of drought and increase in the prices of food raw materials on the world market (primarily grains.0% measured by the consumer price index (CPI).I. In addition to other factors.35 HRK/EUR at end-2006 to 7. oilseeds and milk) and a growth of domestic prices of refined petroleum products due to an increase in the prices of crude petroleum on the world market. leading to a pronounced increase in the prices of food products on the domestic market. Inflation Following fourteen consecutive years of low and relatively stable inflation rate recorded in the Croatian economy.9 percentage points relative to 2003. and the described fiscal policy developments in the mid-term period also indicate the fulfilment of the Maastricht criteria in that period.8% in December 2007. MAASTRICHT CRITERIA A considerable reduction in general government deficit and in the share of public debt in GDP is a direct result of the previously described fiscal consolidation process.

Long-Term Interest Rates In February 2007. an appreciation of the nominal exchange rate of the kuna against the euro of 2. at the time of subscription of T-HT shares) also had an impact on the appreciation of the kuna exchange rate against the euro.750%. In August.2% was recorded.08% in the period from the date of issue to 31 August 2008. its second tranche was issued. the original maturity is 10 years and transactions in that bond are significant relative to all other instruments) and in view of a lack of a better instrument. the appreciation pressures were slightly more pronounced.5bn at a nominal interest rate of 4. In July 2007. in the aforementioned period. the estimated reference value for the Maastricht criterion of long-term interest rates was 6. with the average 12-month long-term interest rate of 5. the Ministry of Finance issued a new 10-year kuna bond. Regardless of the fact that maturity of that new bond was also shorter than the required 9.5 years in August 2007. yield to maturity of that bond can still be used for a certain period of time for a comparison with the highest permitted level of long-term interest rates under the Maastricht criterion.16 HRK/EUR on 31 August 2008.2009 investments in securities on the domestic market (primarily in the second half of September and in early October. mainly as a result of inflow of foreign exchange from tourism and as a consequence of the expected foreign exchange inflow intended for the purchase of INA shares. from 7. 114 . and since it meets almost all other Maastricht criteria (it is a kuna bond. Accordingly. In the first eight months of 2008. Apart from slightly increased appreciation pressures at end-January 2008. movements of the nominal exchange rate of the kuna against the euro were relatively stable in the period from February to August.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .68%. the Republic of Croatia met the standard set by Article 4 of the Protocol on the Convergence Criteria relating to the level of long-term interest rates in EU Member States. central government is the issuer.65% and 6. with a nominal value of HRK 2.54% for the period from September 2007 to August 2008. Gross yield to maturity on the aforementioned bond (ISMA 6. thus increasing the total value of that issue to HRK 5.33 HRK/EUR on 31 August 2007 to 7.5bn. Meanwhile.3 EUR) ranged between 4.

III. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP .

Horizontal issues A) ACHIEVEMENTS IN 2008 Legislative measures Article 73 of the Stabilisation and Association Agreement between Croatia and the EU. technical regulations and conformity assessment procedures. standardisation. content and graphic symbol of the conformity marking for products confirming compliance with the prescribed technical requirements (OG 46/08). as amended by Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998.2009 III. technical regulations and information society services to the European Union. .1. the procedure for formal notification in the field of standards. obliges Croatia to adopt measures for gradual alignment with the technical requirements of the European Union. FREE MOVEMENT OF GOODS 3. In the course of 2008. pursuant to the Act on Technical Requirements for Products and on Conformity Assessment (OG 15/03 and 79/07). The Regulation on formal notification procedures in the field of standards. i. in line with EU requirements and practice. Having met three benchmarks. Ordinance on the form.e. the two following acts of subordinate legislation were adopted: . accreditation and conformity assessment. the Republic of Croatia opened negotiations for Chapter 1: Free Movement of Goods in the internal market.the Regulation on formal notification procedures in the field of standards. during 2008 the Republic of Croatia continued to make efforts to improve the legal and institutional framework in the area of technical legislation. content and graphic symbol of the conformity marking for products confirming compliance with prescribed technical requirements 116 . This Regulation aligns Croatian legislation with Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP 3.1.the Ordinance on the form. In this regard. and regulations concerning information society services (OG 73/08). prescribes the procedure for formal notification in the field of standards. technical regulations and conformity assessment procedures. metrology.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . technical regulations and conformity assessment procedures. and of regulations concerning information society services The Regulation on formal notification procedures in the field of standards.1. which relates to technical regulations. technical regulations and conformity assessment procedures. These benchmarks were as follows. in accordance with the Agreement on Technical Barriers to Trade and the Agreement on the Application of Sanitary and Phytosanitary Measures (WTO/TBT and WTO/SPS). and of regulations concerning information society services.

The Strategy represents the fundamental programme document covering the field of technical legislation and consolidates the current situation within all competent bodies in the Republic of Croatia. through articles and Q&A columns published in technical manuals and journals. operating within the Directorate for Trade and the Internal Market of MELE. the measures envisaged in the Strategy. The Report on the Implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods for the period January to June 2008 was adopted at the session of the Government of the Republic of Croatia of 17 July 2008. etc. and help secure the transposition and implementation of EU directives in the Croatian legal system. 117 . twice a year. institutions responsible for quality infrastructure and the State Inspectorate. the current situation. after the prescribed technical assessment procedures have been applied for confirming compliance with the relevant requirements of all technical regulations pertaining to those products. Labour and Entrepreneurship to submit a progress report to the Government of the Republic of Croatia twice a year on the implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods. in accordance with Council Decision 93/465/EEC of 22 July 1993. domestic animals and plants. The Ordinance also lays down the rules for affixing and using the conformity marking. must also submit reports on the completion of measures within their scope.I. Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods The Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods. The Conclusion of the Government of 29 November 2007 obliges the Ministry of the Economy. Old Approach Directives). HAA. Horizontal and procedural measures are keeping pace with the dynamics envisaged in the Strategy. or the conclusion of the international Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (PECA/ACAA). in the process of aligning it with EU legislation. the conformity marking “CE” will be used in the marking of products. or the entry into force of the international Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (PECA/ACAA). protecting the life and health of people. are being carried out at the envisaged pace and represent significant support for the implementation of the technical legislation of the Republic of Croatia. This information is passed on to state administration bodies and the general public via the MELE website. After the accession of the Republic of Croatia to the European Union. Until the accession of the Republic of Croatia to the European Union. DZM). content and graphic symbol of the conformity marking for products which have been declared fit to be placed on the market and/or put into service in the Republic of Croatia. in line with implementation dynamics. All central state administration bodies. Such products comply with prescribed technical regulations. provides ongoing information on technical legislation in the Republic of Croatia. contribute to the good co-ordination of all activities pertaining to the free movement of goods. and through presentations. if so prescribed. was adopted at the session of the Government of the Republic of Croatia on 29 November 2007. POLITICAL CRITERIA This Ordinance prescribes the form. in order to avoid potential non-conformity and unnecessary repetition in various regulations. Implementation of the envisaged strategic measures will ensure the alignment of technical regulations with the acquis and the administrative capacities for implementation. the national conformity marking “C” will be used. The Strategy covers only those production sectors (technical products) harmonised at the level of the European Union (New and Global Approach Directives. which are included in the implementation of the Strategy. The dynamics of legislative amendments and preparations for legislative amendments are in line with the measures planned in the Strategy. which are to be carried out by institutions in charge of quality infrastructure (HZN. environmental protection and any other pertinent matters regulating the area to which the technical regulation pertains. in terms of their safety. alignment with EU legislation and planned activities. along with a plan of measures to align fully the legislation of the Republic of Croatia with EC legislation. According to reports received. The Internal Market Co-ordination Department.

Labour and Entrepreneurship to submit a progress report to the Government of the Republic of Croatia on the implementation of the Action Plan. objectives. this Chapter may be closed only provisionally. the Republic of Croatia should demonstrate adequate administrative capacity to implement and enforce properly legislation in all horizontal areas affecting the free movement of goods (regulatory functions. held in Brussels on 25 July 2008. since barriers to the free movement of goods will be removed. as envisaged in Articles 28 and 29 of the Treaty establishing the EC. The implementation of the Action Plan creates the premise for the free movement of goods and full inclusion of the Republic of Croatia in the internal EU market. in line with the principles of the jurisprudence of the European Court of Justice. and adopt and implement Directive 89/105/EC relating to the pricing and reimbursement of pharmaceutical products. as a result of extensive dialogue and assistance. By the day of its accession to full membership of the EU. The Action Plan defines clearly and precisely specific tasks. 118 . The Conclusion of the Government of the Republic of Croatia of 29 November 2007 obliges the Ministry of the Economy. if the Republic of Croatia continues to make progress in aligning and implementing the acquis pertaining to Chapter 1: Free Movement of Goods. The Report on the Implementation of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC for the period January to June 2008 was adopted at the session of the Government of the Republic of Croatia of 17 July 2008. the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC was drawn up and adopted on 29 November 2007. realistic deadlines and the competent state administration bodies in order to facilitate the efficient repeal of measures having equivalent effects to quantitative restrictions on export and import. especially in those sectors in which alignment is currently insufficient or limited. conformity assessment and market surveillance). as amended by Directive 2004/27/EC.2009 Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC The Republic of Croatia has an obligation to ensure alignment of its legislation in the area of free movement of goods with Articles 28-30 of the Treaty establishing the EC. The Common Position of the EU notes that. accreditation. until the EU assesses that the following benchmarks. necessary for the final closure of the Chapter. within the deadlines given. have been met: The Republic of Croatia should adopt a regulation to align its legislation with Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use. twice a year. Negotiations on Chapter 1: Free Movement of Goods were opened at the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union. Measures to be undertaken in order to conclude the ACAA An Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) is a bilateral agreement concluded between a candidate country and the European Union. in the area of technical regulations and standards.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . given the current situation regarding preparations. metrology. The Republic of Croatia should make significant progress towards completing the internal analysis of the alignment of domestic legislation and administrative practice with Articles 28-30 of the Treaty establishing the EC. by introducing mutual recognition clauses and other necessary amendments. which will have a positive effect on the competitiveness of the Croatian economy. The Republic of Croatia should continue to make progress towards the alignment of horizontal legislation with the acquis and show good progress towards alignment with New and Old Approach Directives. standardisation. In this respect. including horizontal procedural measures such as Directive 98/34/EC.

on the topic of the ACAA. Low voltage equipment. in concluding the Agreement on Conformity Assessment and Acceptance of Industrial Products in the following areas: Personal protective equipment (protective gloves). in regard to the industrial products to which the ACAA applies. when they still had candidate status. An ACAA is a trade agreement and represents an instrument ensuring strengthening of overall political and economic relations between the EU and the candidate country concerned. Recreational crafts. it provides economic benefits for the candidate country. in which it proposed holding a professional meeting. products or groups of products for which an ACAA is concluded will be admitted to the EU internal market. representatives of producers and other economic operators. 3) Visit by EC representatives for the purpose of opening ACAA negotiations 119 . the Republic of Croatia expressed interest in opening ACAA negotiations and on 16 April 2008 sent a Letter of Intent on beginning ACAA negotiations to the European Commission. without further testing and certification. providing economic advantages for EU products. even before its accession to the EU. containing specific particularities. ACAA negotiations help all interested parties to prepare successfully for participation in the EU internal market. From the political point of view.I. Labour and Entrepreneurship and representatives of state administration bodies. facilitating international trade and removing technical obstacles to trade. The EU concluded such agreements. DZM. From an economic standpoint. After all the necessary conditions are met and ACAA negotiations completed. HAA). At the same time. and this is an important step forward in enhancing competitiveness. an ACAA represents an affirmation of the success and efficiency of the European technical legislation system for the EU. The effect of entering into such an agreement is that a candidate country becomes part of the EU internal market. 2) Letter of intent regarding the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products Pursuant to a series of meetings held between the Ministry of the Economy. while for the candidate country it is an indicator that the country has already achieved European standards in certain areas. the Republic of Croatia has defined key sectors. Electromagnetic compatibility. in which it is in the interest of producers to conclude the ACAA. Construction products (cement). at which EU experts would assess the readiness of the Republic of Croatia to conclude the Agreement on Conformity Assessment and Acceptance of Industrial Products. the State Inspectorate.e. Achievements to date relating to the conclusion of the ACAA 1) Areas of special interest for the conclusion of the ACAA On the basis of information compiled. As a result. it has been established that Croatian economic operators have an interest in gaining as free as possible access to the internal EU market. institutions for quality infrastructure (HZN. and in relation to the Agreement on Conformity Assessment and Acceptance of Industrial Products. by giving them free access to yet another market. POLITICAL CRITERIA ACAAs are based on full acceptance of the European system of technical legislation. with most of the new Member States during the pre-accession period. i. by ensuring free access to the EU market in products covered by the agreement. Products covered by an ACAA will have free access to the EU internal market. without further testing or certification. concluding an ACAA results in broadening the EU internal market. in terms of business conducted by economic operators of the Republic of Croatia on the internal EU market. standardisation and conformity assessment. bodies for conformity assessment.

MSTI. a workshop was held. accreditation. A series of meetings were held between EC representatives and representatives of competent state administration bodies of the Republic of Croatia (MELE. the following Sections were set up. there are currently two employees in the Section for Information and Co-operation with International Organisations (the head of section and an expert assistant). In order to carry out the activities relating to this demanding area. which entered into force in March 2008. metrology) and market surveillance (SI). Labour and Entrepreneurship is responsible for co-ordinating all activities pertaining to the free movement of goods. 2. Pursuant to the Regulation on the internal organisation of the Ministry of the Economy. and co-ordination in the alignment of technical legislation. 4. on 16 and 17 October 2008 meetings with representatives of the EC regarding opening ACAA negotiations were held at the Ministry of the Economy. the resolution of administrative capacity problems was addressed. including the co-ordination and development of a national policy in the area of standardisation. The role of the Internal Market Co-ordination Department is to ensure comprehensive co-ordination policy and co-operation between ministries and state administration bodies − the State Office for Metrology (DZM) and the State Inspectorate (SI). Section for Information and Co-operation with International Organisations. 3. meetings and brochure reviews relating to this area in 2008 and 2009: At the 12th National Conference on the Economy and Entrepreneurship. participation in the establishment and work of organisations for quality infrastructure. The Internal Market Co-ordination Department was formed within the Directorate for Trade and the Internal Market of MELE in July 2005 and became operational on 21 November 2005. In addition to the head of Department. as well as the public sector − the Croatian Standards Institute (HZN) and the Croatian Accreditation Agency (HAA). and thus ensure full transposition and implementation of directives relevant to this field in the Croatian legal system. Labour and Entrepreneurship’s administrative and other tasks pertaining to quality infrastructure. Labour and Entrepreneurship. MEPPPC. Labour and Entrepreneurship (OG 41/08). so that its role is to ensure a comprehensive policy of co-ordination. held in Šibenik from 29 to 31 May 2008. conformity assessment and metrology. Topics discussed at the meetings concerned implementation of parts of the acquis pertaining to legal acts.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . MELE was given a co-ordinating function in terms of freedom to provide services. extended the scope of the Ministry of the Economy. accreditation. Organisation of seminars. MFAEI). entitled “Free Movement of Goods on the Internal Market and Consumer Protection. The Act on Amendments to the Act on the Organisation and Scope of Central State Administration Bodies (OG 27/08). Strengthening administrative capacities The Directorate for Trade and the Internal Market of the Ministry of the Economy. in order to carry out tasks within the scope of the Internal Market Co-ordination Department: 1. and subordinate legislation prescribing technical requirements for products. Section for Alignment of Technical Legislation and the Non-aligned Area. Section for the Development of Services.2009 Pursuant to a positive response by the EC to the Letter of Intent. Section for Technical Legislation Implementation. two employees in the Section for Alignment of Technical Legislation and the Non-aligned Area (the head of section and a senior adviser). In addition. with a View to Developing a 120 . co-operation with ministries and the public sector. to ensure full transposition and implementation of both the New and Old Approach Directives in the Croatian legal system and the provision of legal assistance in the adoption of technical requirements. representatives of quality infrastructure (standardisation. and one in the Section for the Development of Services (the head of section). and in accordance with the recommendations of the European Commission. one employee in the Section for Technical Legislation Implementation (the head of section).

representatives of economic operators. Malta). HAA and DZM). HOT 9 (Hands-on training) was held. the Ministry of the Economy. Czech Republic). a presentation was given on the topic “Alignment of Technical Legislation in the Republic of Croatia with EU Legislation and ACAAs”. 27 March 2008: participation in the BIZ impact seminar. aimed at employees of state administration bodies in charge of co-ordinating activities pertaining to the alignment and implementation of technical legislation in the area of free movement of goods. 14-16 April 2008: within the CARDS 2006 “Regional Quality Infrastructure Project”. organised a two-day seminar in Zagreb on 16 and 17 June. a one-day seminar was held on 16 September 2008 on the topic “A New Revision of the New Approach”. the Ministry of the Economy. attended by representatives of state administration bodies. organised by the Croatian Society for Quality. In co-operation with the regional CARDS 2006 Project for quality infrastructure. and about the need to meet certain preconditions for the conclusion of the ACAA. Participation in seminars and meetings relating to this area in 2008: 27 February 2008: participation in the seminar. “Free Movement of Goods” in Maastricht. attended by representatives of state administration bodies involved in this area. institutions for quality infrastructures. institutions for quality infrastructure (HZN. Serbia). organised by the International Organisation for Standardisation (ISO). within the CARDS 2004 Project. A review of the BIZ impact brochure. as part of the workshop. at the EU Information Centre in Zagreb. and employees of bodies for quality infrastructure (Valletta. entitled “Technical Assistance of the Czech Republic to the State Administration of the Western Balkan Countries in the Fields of Testing and Metrology”. Metrology and Testing (COSMT). and the Czech Republic. POLITICAL CRITERIA Competitive Economy”. and representatives of counterpart institutions from Albania. in co-operation with the Institute for Reference Materials and Measurements (IRMM) and the State Office for Metrology. and notification procedures pertaining to technical regulations and conformity assessment bodies (Prague. entitled “Importance of Conformity Assessment Bodies in the Implementation of New Approach Directives”. The Internal Market Co-ordination Department enjoys excellent co-operation in projects with institutions such as the Institute for Reference Materials and Measurements (IRMM) and the Czech Office for Standards. aimed at employees of state administration bodies in charge of co-ordinating activities pertaining to the alignment and implementation of technical legislation in the area of free movement of goods. The seminar was attended by more than 130 participants (representatives of producers. EU CARDS Project. 21-23 April 2008: participation in the 9th Croatian Conference on Quality in Zadar. Labour and Entrepreneurship. 5-6 June 2008: participation in the Subcommittee for Technical and Non-customs Barriers to Trade between signatory countries to the amended Central and Eastern Europe Free Trade Agreement (Belgrade. in co-operation with the Czech Office for Standards. Regarding the area of construction products. organised by the European Institute of Public Administration (EIPA). organised a two-day seminar on 16 and 17 June. and representatives of business operators. 5-9 May 2008: within the CARDS 2006 “Regional Quality Infrastructure Project”. Labour and Entrepreneurship. conformity assessment bodies. 12-13 June 2008: participation in the “ISO Regional Workshop on Conformity Assessment Supporting Development and Trade” in Kiev. with which it is planning a series of training seminars. HOT 10 (Hands-on training) was held. Bosnia and Herzegovina.I. The goal of the Conference was to inform business operator representatives about amendments to technical legislation and the benefits of concluding the Protocol/Agreement on Conformity Assessment and Acceptance of Industrial Products (PECA/ACAA). Macedonia. “MINI-GUIDE TO INDUSTRIAL STANDARDS”. “Improving Information to the Croatian Business Community”. Regarding the area of conformity assessment. Metrology and Testing (COSMT). and. 121 . social partners and state administration bodies).

Belgium. One of the activities of the Department is participation in the work and organisation of all activities related to the training of businessmen and craftsmen. - 9 October 2008: participation in the Subcommittee for Trade. It also co-operates with the Croatian Chamber of Economy. Belgium. the Croatian Chamber of Trades and Crafts. Adoption of the Report on the Implementation of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC (January/July 2009). Belgium). Geneva. technical regulations and regulations concerning information society services. - 19 November 2008: technical consultations for Chapter 3: Freedom to Provide Services. the State Inspectorate. Brussels. Within its competence. - 9-12 September 2008: participation in the SQM Conference and the International Conference on Quality ICQME 2008 (Budva. Labour and Entrepreneurship in Zagreb. Belgium. - 12 November 2008: participation in a seminar to mark the 25th anniversary of Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations. etc. Brussels. the Croatian Standards Institute. as well as bodies responsible for promoting and representing their interests. B) KEY PRIORITIES The following are planned for 2009: Adoption of the new Act on Technical Requirements for Products and on Conformity Assessment. Croatian exporters. concerning the area of the technical alignment and accession of the Republic of Croatia to the European Union. All staff participate on a regular basis in seminars on European integration organised by the Ministry of Foreign Affairs and European Integration. and regulations concerning information society services. the Internal Market Co-ordination Department co-operates closely with all state administration bodies and state administrative organisations: the State Office for Metrology. Industry. 122 . Montenegro). Brussels. - 22-25 October 2008: participation in the CROLAB Conference “Competence of Laboratories” in Osijek. Customs and Taxes for Chapter 1: Free Movement of Goods (Brussels. universities. the public sector. business operators. 11 November 2008: participation in the Croatian Quality Day at the Ministry of the Economy.2009 - 24-26 June 2008: participation in the closing seminar on the results of the assessment of knowledge and skills of conformity assessment bodies and laboratories in the region (Ljubljana. and in training programmes organised by the Central State Office for Administration. Slovenia). - 11 November 2008: technical consultations pertaining to the transposition of the “Directive on the recognition of professional qualifications”. in line with the recommendation of EC experts of 16 and 17 October 2008. the Croatian Employers’ Association. Adoption of the Regulation on formal notification procedures in the field of standards. 29-31 October 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Adoption of the Report on the Implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods (January/July 2009). participation in the ISO/CASCO Workshop. and the Croatian Accreditation Agency. in co-operation with the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts. Switzerland.

the national standardisation body of the Republic of Croatia and an independent public institution. schools. reorganisation had been completed for 154 HZN/TOs. - ACAA − in the course of 2009. Fields of standardisation 123 . public institutions. A special note was made of technical committees whose reorganisation had not been completed. - Projects − in the course of 2009. the Internal Market Co-ordination Department plans to continue participating in EU support projects and twinning programmes. In addition. competent bodies and contact points. - Administrative capacities In 2009. It was proposed that a decision be passed abolishing 11 HZN/TOs. etc. IEC) and European (CEN.). - SOGS − the Internal Market Co-ordination Department of MELE has sent a Letter of Intent to the European Commission to apply for observer status for the Republic of Croatia with SOGS (Senior Officials Group for Standardisation and Conformity Assessment Policy). 38 IEC/TCs (40%). 3. the HZN Management Council issued a decision.I. technical committees whose withdrawal was proposed. and the relationship between the technical committees of international and European standardisation organisations and the corresponding technical committees of the HZN. without initiating judicial proceedings (mediation)). By 31 August 2008. and the manner of co-operation with business operators.1. technical regulations and regulations concerning information society services. is constantly growing. The publication also presents the relationship between HZN/TOs and the corresponding technical committees of international (ISO. CENELEC and ETSI) standards bodies. and adequate training will be provided in the field of notification and work on the SOLVIT system (online resolution of problems arising from the application of regulations governing the internal market. 214 CEN/TCs (77%). there were 520 members (502 regular members and 18 observers. The process of reorganising the infrastructure of national technical committees is underway and should be completed by the end of 2008. due to a lack of interest in their work and putting three HZN/TOs on hold. As of 30 June 2008. individuals and craftsmen. HZN technical committees monitor the work of a large number of international and European technical committees: 127 ISO/TCs (65% of the total number of ISO/TCs). and technical committees proclaimed dormant. according to which 135 HZN/TOs would continue to operate and ten (10) new HZN/ TOs would be set up. Rules of Procedure will be prepared prescribing procedures and co-operation between the Central Contact Point. This publication presents an overview of and basic information of the technical committees of the Croatian Standards Institute (HZN/TOs) (as of 31 August 2008). chambers.1.1. At the proposal of the Technical Administration. institutions of higher education. profit-making legal persons. further measures are planned aimed at signing the ACAA and sending a Letter of Intent for initiating negotiations in other sectors for which requirements for negotiations regarding the conclusion of the ACAA have been met. POLITICAL CRITERIA - On the basis of the Regulation on formal notification procedures in the field of standards. trade associations. Standardisation A) ACHIEVEMENTS IN 2008 The membership of the Croatian Standards Institute (HZN). The result of the reorganisation of technical committees was presented in the HZN Memento 2008. administrative capacities will continue to be strengthened. published at the end of August 2008. 25 CENELEC/TCs (44%) and all existing ETSI/TCs (100%). 46 state administration bodies have applied for co-operation with the HZN and appointed representatives.

due to a lack of interest. Drafting rules for the accelerated adoption of European standards (built into IRS 3). adopted by the Government of the Republic of Croatia in November 2007. A new section of HZN internal rules. The last remaining section of the internal rules. All HZN/ TO members have access to the restricted password-protected area for technical committees on the Internet (HZNorm). Setting up and work of programme committees.2009 are separately indicated for which there is a lack of interest in the Republic of Croatia and for which HZN technical committees have not yet been established.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .000 documents at present) and national working documents. In this way. IRS 3. A series of documents setting out procedures to be applied in the implementation of Internal Standardisation Rules. for the purpose of meeting one of the benchmarks set for opening negotiations on Chapter 1 of the acquis. and the number of European standards adopted has increased substantially. the process of introducing a quality management system according to ISO 9001 and an IT security management system according to ISO 27000 started at the HZN in June 2008. Agreement of the Technical Administration on the implementation of the procedure (June 2008). Adoption of European standards in other areas in which. containing working documents which are received continuously from international and European technical committees (approximately 35. In the course of 2008. once the HZN becomes a member of CEN and CENELEC. A meeting was held between the presidents of HZN/TOs on 2 June 2008 and an agreement was reached to accelerate the assessment of European standards in all reorganised HZN/TOs. A public enquiry on the proposal to adopt all European standards within the scope of HZN/TOs in HZN Glasilo 5/2008 at the latest (31 October 2008). Announcement of a public enquiry (approximately 500 harmonised European standards in HZN Glasilo 3/2008. and this is one of the conditions for the membership of the HZN in CEN and CENELEC. Free Movement of Goods. relevant work instructions and accompanying forms have already been drafted and are in use (most of these are available on the Internet or within the HZNorm system). Pursuant to a decision of the HZN Director on appointing members of internal teams. Adopting European standards was established as a priority in the work of all reorganised HZN/TOs. set out the obligation to adopt all European standards in Croatian standardisation by the end of 2008. is currently being drafted. the following steps were defined and undertaken to fulfil the obligations set out in the Strategy: Adopting European standards through the work of HZN/TOs: Reorganisation of all technical committees was completed by 30 April 2008. The Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods. and the Code of Good Practice for Standardisation of the World Trade Organisation. The HZN Management Council adopted IRS 3 at its session of 6 October 2008. decision of the Technical Administration on submitting the proposal to a public debate for adoption (June 2008). was drawn up on the basis of the HZN Articles of Association and the rules of international (ISO. 30 June 2008). 124 . IRS 4. more than 2. Internal standardisation rules − Part 3: Drafting and adopting Croatian standards and other documents. while others are still being prepared. IEC) and European (CEN and CENELEC) standards bodies. Drafting the proposal to adopt aligned European standards (heads of the standardisation area).500 applications for work in technical committees had been received and registered. By 31 August 2008. members of technical committees are preparing for paper-free work and future active participation in European standardisation. technical committees have not been set up: Decision of the HZN Expert Council concerning the accelerated adoption of European standards (April 2008). The adoption of all European standards in HZN Glasilo 6/2008 (30 December 2008).

HZN Glasilo). In 2008. the HZN undertook additional measures to present the role of standards in the application of technical legislation. defining nationally definable parameters and drafting appropriate national appendices) in the period 2008-2010 was signed between the Ministry of Enviornmental Protection. translation options. 31 August 2008). deadlines. decision of the Technical Administration on submitting the proposal to a public enquiry for adoption (August 2008). Providing information on standards relating to a particular Croatian technical regulation. implementation of the Agreement 125 . in accordance with the above plan. to be published in the Official Gazette. Physical Planning and Construction and the Croatian Chamber of Architects and Civil Engineers − Department of Civil Engineers.e. and that this condition for the membership of the HZN in CEN and CENELEC will be met.). Informing the relevant ministry about amendments to standards from the List of Standards published in the Official Gazette. the number of European standards harmonised with the relevant directives and the respective number of Croatian standards are being monitored and the information published (ministries. explosive atmospheres. Continuous updating of the list of Croatian standards (new Croatian standards. 31 October 2008). Drafting the proposal for adopting all remaining European standards (heads of the standardisation area).000 European standards in HZN Glasilo 5/2008. Preparing amended lists of standards for the purpose of publication in the Official Gazette. measuring instruments. Agreement on the manner of adopting European standards (interest in translating standards into Croatian. It is expected that. Implementation of the procedure for adopting European standards (announcement of proposals for adoption in the HZN Glasilo). funding). i. etc. more than 80% of European standards will be adopted by the end of 2008. the Agreement of Co-operation in the Procedure of Adopting Eurocodes (European standards in construction) as Croatian Standards (translation into Croatian. explosives for civil use and general product safety were prepared and published by the HZN. the HZN has offered co-operation to ministries responsible for the implementation of the new regulations in the field of New Approach Directives. considering problems arising during operations and joint agreements on solutions. Ensuring the availability of standards to any interested party. decision of the Technical Administration on accepting the proposal into a public enquiry for adoption (September 2008). new versions of standards. Making a list of Croatian standards which provide for the assumption of conformity in particular areas. almost all European standards available at that moment. - Announcement of a public enquiry (approximately 6. particularly in the field of the New Approach Directives: lists of Croatian standards were prepared (adopted harmonised European standards) for all areas covered by the New Approach Directives and submitted to all ministries responsible for the implementation of the relevant Croatian regulations. In 2008. In the course of 2008. Regular notification on the work of the relevant technical committees. POLITICAL CRITERIA - Drafting the proposal for adopting the remaining European standards (heads of the standardisation area). revocation of standards.I. In September 2007. for the purpose of publication in the Official Gazette. The following are possible forms of co-operation: Setting up and maintaining the infrastructure for technical committees responsible for the implementation of the procedure of adopting European standards. lists of Croatian standards (adopted harmonised European standards) in the areas of construction products. - Announcement of a public enquiry (approximately 3.600 European standards in HZN Glasilo 4/2008.

in line with the rules of the system. in accordance with Directive 98/34/EC. there were 17.877 6.558 Croatian standards. This number includes 14. along with data from all regular CEN and CENELEC members. 126 . Notifications concerning Croatian standards. A series of seminars organised by Croatian Chamber of Architects and Civil Engineers /Croatian Metrology Society/HZN/Croatian Society for Communication. Data on original Croatian standards are included in the CEN Monthly Notification Register. members of technical committees. concerning Croatian standards which are adopted European standards.648 8. Activities are proceeding according to plan. The following seminars were organised: HZN seminar on standards for management systems for veterinary inspectors. Since April 2008. HZN employees and the public.187 2.2008 Total number of European standards adopted as Croatian standards 6 115 390 801 1.000) pages of Eurocodes have been translated into Croatian and work has begun on defining nationally definable parameters (a total of 1. are submitted to these organisations in line with their rules. Data on adopted Croatian standards are available on the CEN website.258 4.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . As of 31 October 2008. which are adopted European CENELEC and ETSI standards. To date. Computing.10. by submitting regular data entries to the CEN IT system.346 parameters need to be defined) and their integration in the relevant national appendices to the standards (a total of 58 national appendices). approximately 2. the HZN continued to conduct seminars for its members.2009 began by the signing of pertinent bilateral agreements between the signatories of the Agreement for 2008 and by the adoption of the annual implementation plan for the Agreement for 2008. Electronics.003 8. along with data from all regular CEN members. Measurement and Control: Intelligent Construction (10 seminars on 10 different topics between February and June 2008).459 In 2008. The increase by year in the total number of adopted European standards is shown in Table 2.459 European standards adopted so far.000 (of a total of 5.383 9. The Croatian Standards Institute has been participating in the European CEN iPROJEX system − National Implementation since June 2007.420 14. the HZN has been participating in the CEN INFOPRO system for the notification of original Croatian standards. Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 31.300 3.

IEC. The HZN pays special attention to training its employees. as a special service. organised by three international standardisation organisations. ISO/IEC Guide 21-2:2005 (hr). several persons participated in ISO e-learning modules. POLITICAL CRITERIA - HZN/ON seminar: Standardisation and Certification in the Field of Diving Tourism (February 2008). Guidelines for the distribution and sales of CEN/CENELEC publications (translation of a CEN/ CENELEC publication). The HZN co-organises or sponsors a number of conferences in the field of technical alignment. CEN/CENELEC Guide 11:2006. HZN seminar: Office Work and Document Management (March 2008). as a special contribution by the HZN to the education of consumers in the Year of Consumer Education (2007). ISO e-learning training will continue to be provided for HZN employees. CEN/CENELEC Guide 12:2008. while copyright protected documents are only accessible to HZN members on secure pages. The concept of affiliation with CEN and CENELEC SI Instructions. standards and the Internet (translation of an ISO publication). within the World Standards Co-operation. and are planned to be held several times a year. Regional or national adoption of International Standards and other International Deliverables − Part 1: Adoption of International Standards (translation of an ISO publication). the link between consumers and standardisation. Product information relevant to consumers. ISO. Consumers and Standards − Instructions and principles for the participation of consumers in the development of standards (translation of an ISO publication). ISO and Conformity Assessment. Consumer interests and the preparation of European standards (translation of a CEN/CENELEC publication). organised by the Ministry of Foreign Affairs and European Integration. ISO POCOSA 2005 ISO Policies and procedures for copyright. CEN/CENELEC Guide 2:2001.e. Several copies of publications relating to consumers were delivered to all consumer associations in the Republic of Croatia. Promotional brochures. translations of ISO brochures: ISO and Social Responsibility.I. publications and translations of international and European documents in the areas of standardisation and consumer protection. The HZN continues to publish brochures. In 2008. and one person completed the training for managers entitled Standardisation Community Management Course. participates in a number of events and contributes to their success through presentations given by its representatives. HZN representatives continued to participate in seminars on European integration. i. two persons completed all three modules and obtained the ISO Experts in international standardisation management certificate. 2008 Edition (translation of an ISO publication). 127 . and ITU. The seminars on terminological principles and office work will be repeated. Translations of CEN/CENELEC documents are publicly available on the HZN website (with the permission of CEN/CENELEC). CEN/CENELEC Guide 10:2001. copyright exploitation rights and sales of ISO publications (translation of an ISO publication). Guidelines for standard developers (translation of a CEN/CENELEC publication). Regional or national adoption of International Standards and other International Deliverables − Part 2: Adoption of International Deliverables other than International Standards (translation of an ISO publication). Copyright. IT training was also provided (ECDL). All the seminars were very well received and highly rated. HZN seminar: Terminological Principles and Structure and the Creation of New Terminology (February 2008). ISO/IEC Guide 21-1:2005 (hr). ISO and Consumers.

Are you ready? into Croatian was published in June 2008. B) KEY PRIORITIES Further implementation of new HZN internal rules (IRS). in line with the recommendations obtained in the course of the pre-audit. due to the specific characteristics of their work.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Further drawing up of procedures for the processes of national standardisation in accordance with the Internal Rules. The HZN Annual Report for 2007 was published on the HZN website. the recruitment of 2 more employees is planned. Submitting the application for membership in CEN and CENELEC. Participating in the negotiations for the accession of the Republic of Croatia to the European Union. At its session of 4 September 2008. Further designing of forms for the implementation of procedures. Conformity Assessment and Accreditation System. Further preparation for membership in CEN and CENELEC. All new employees undergo special internal training in standardisation. Preparing and holding seminars and workshops (HZN independently or in co-operation with other bodies). in order to handle the vast amounts of data and exchange of documents in the European standardisation system. Preparing the application for HZN membership in CEN and CENELEC and related documentation. the HZN employs 61 staff. Further development of the IT system. Development of National Metrology. Setting up programme committees. 128 . Standardisation.000 State Budget resources for the development of the HZN IT system in the period 2009-2011. the Government of the Republic of Croatia passed a decision on securing HRK 2. The HZN CATALOGUE 2008 was published on CD-ROM.2009 The translation of the new ISO publication ISO 22000 − Food management systems: An easy-to-use checklist for small business. along with a promotional brochure. Fisheries and Rural Development is the competent authority. Preparing for audit and the implementation of audit. Undergoing pre-audit for membership in CEN and CENELEC. with financial assistance from the CARDS 2004 Project Further Capacity Building in the Area of Live Animals and Food Products.500. if there is no interest in setting up a technical committee). As of September 2008. training employees. as part of HZN preparations for full membership of CEN and CENELEC. Implementing the CARDS 2004 technical assistance project. Preparing and holding meetings of European technical committees/subcommittees and working groups (at the request of and in agreement with HZN/TOs which participate in their work). Recruiting new staff. for which the Ministry of Agriculture. In the course of 2009. within the CARDS 2004 project. Continuing work on adopting new European standards in Croatian standardisation (through the work of technical committees or external experts.

the HAA has 59 leading assessors. the HAA continued active participation in the work of the EA General Assembly. The most important international activities of the HAA were related to preparation for and evaluation by the European Cooperation for Accreditation (EA) with a view to concluding multilateral agreements on the recognition of accreditation (EA-MLA). within the CARDS 2004 project. and that it conducts professional on the spot assessments. POLITICAL CRITERIA 3. A study visit to NA (Norway) and observation of the evaluation of laboratories for the testing of construction products. was confirmed at the session of the Multilateral Agreements Committee (EA-MAC) on 1 October 2008.2.). the HAA has made annual efforts to strengthen its professional capacity. 88 technical assessors and 122 experts (as of 5 November 2008) entered in the HAA Assessors’ Register. One new employee was recruited in 2008. Finally. while today there are 23. approved by the HAA Management Council. The total number of accreditations allocated is 123 (as of 10 November 2008). 3 specialised professional seminars for HAA assessors and candidate assessors. promoting the role of accreditation among the members of professional associations. Accreditation A) ACHIEVEMENTS IN 2008 In 2008.1. etc. The following training events were organised by the HAA or attended by HAA employees: 6 internal seminars for HAA employees. environmental hygiene.1. which was approved by the Government of the Republic of Croatia.I. This year. the work of EA technical committees for laboratories (EA-LC). and business operators. on topics in the area of accreditation (the requirements of the ISO 15189 standard. 5 specialised professional seminars and workshops on the following topics: microbiological standards for food. the HAA held another intensive training programme for its employees and assessors. of which the HAA is a beneficiary. in line with EA 2/02 rules. 14 seminars and workshops organised within EU and bilateral projects. legal and accountancy seminars and foreign language courses. In 2008. HAA activities will also be based on the HAA Development Strategy for the period 2008-2010. the recommendation of the EA evaluation team to continue with the evaluation procedure of the HAA. the HAA began work with 8 employees. New Approach Directives for machinery. evaluation of conformity assessment bodies (CABs) for the purpose of authorisation and notification. based on the Training Plan for 2008. The Strategy was drawn up in co-operation with EC JRC IRMM. Since the beginning of its work as an independent institution. organisation of inter-laboratory testing. as both participants and speakers. The conclusion of the EA evaluation team was that the HAA has professional and experienced staff (employees and assessors). In the coming three-year period. an organisational structure which is in accordance with the requirements of the international standard for accreditation bodies ISO/IEC 17011. Multilateral Agreements Committee (EA-MAC). terminological principles and creating new terminology. Specialised IT. The peer evaluation of the HAA by the EA was published at the end of June 2008. In addition to the permanent staff. A study visit to SWEDAC (Sweden) and accredited medical laboratories in Sweden. for certification (EA-CC) and inspection (EA-IC). 2 workshops organised by the European Co-operation for Accreditation (EA). the activities of the HAA were based on the Programme of Work of the Croatian Accreditation Agency. the 129 . construction products. 9 conferences and symposia. accreditation in sanitary engineering. standardisation and certification in the field of diving tourism. personal protective equipment. representatives of accredited bodies and ministries. In 2005.

The HAA will continue to participate actively in the work of the EA General Assembly and professional committees (EA-MAC. taking into account the comments of the European Commission on the Accreditation Act and the HAA Articles of Association in the process of ACAA negotiations between the Republic of Croatia and the European Union. B) KEY PRIORITIES In 2009. 765/2008. EA-CC. The main objective and role of the HAA Gazette is to promote the role of accreditation and HAA activities. EA-LC. since the state administration authorises them to implement technical regulations. members of advisory and professional committees of the HAA. The HAA plans to continue strengthening its capacity by recruiting 3 new employees. EA-IB. the evaluation procedure of the HAA by the EA is expected to continue after the first phase is completed. in the business community and among state administration bodies. These amendments will achieve alignment with new Regulation (EC) no. the HAA launched an electronic monthly Gazette. The HAA also met its obligations set out in the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods and proposed that all state administration bodies competent for the implementation of technical regulations aligned with the New Approach Directives sign the Agreement on the implementation of the procedures for the evaluation of conformity assessment bodies. the HAA will prepare materials for amendments to the Accreditation Act (OG 158/2003) and to the HAA Articles of Association of 2005. The HAA will draw up the Programme of Work for 2009.). Agreements on co-operation were concluded with the national accreditation bodies of Montenegro and Macedonia.2009 Communication and Publications Committee (EA-CPC). CEA. etc. In 2008. and providing information for potential and existing clients on the criteria and rules for accreditation. CCTC. Training of HAA employees and assessors will be conducted according to the Training Plan for 2009. In 2008. In 2008. working groups for medical laboratories (WG MedLab). in accordance with international criteria. but is also sent directly to approximately 600 email addresses. particularly those relating to supporting the implementation of technical regulations aligned with EU legislation. and the WG 3 EA development project: Strengthening European Accreditation. for the purpose of authorisation (in areas in which this has not been regulated by law). as a member of the British Standards Institute (BSI) consortium from the United Kingdom. In 2008. which will be directly implemented in the EA database. 130 .NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . and many other interested parties (CCE. The HAA provided technical support for state administration bodies in the implementation of regulations in the areas of safety and the health of citizens. A database of bodies accredited by the HAA is being compiled. as part of an international project. published in August 2008. The role of the HAA was to evaluate the professional and technical qualifications of these conformity assessment bodies. upgrades were launched for the Centrix solution in the HAA computerisation system. These amendments will be drafted. In 2009. which will apply in Member States from 1 January 2010. in line with the HAA Development Strategy for 2008-2010. environmental protection. Joint training activities in the field of accreditation were conducted with the accreditation bodies of Slovenia (SA) and Bosnia and Herzegovina (BATA). consumer protection and other areas of public interest. for the purpose of concluding multilateral agreements on the recognition of accreditation (EA-MLA). EA-CPC) and develop co-operation with the national accreditation bodies of other countries. The Gazette is available on the HAA website. in accordance with the specific needs of accreditation bodies. representatives of state administration bodies. the HAA maintained very good co-operation with state administration bodies. the HAA conducted activities relating to setting up an accreditation system in Kosovo. which include all accredited bodies.

The technical regulations lay down the conditions to be met by conformity assessment bodies and conditions relating to the process of supervising their operation. Labour and Entrepreneurship (MELE) signed the Agreement on the implementation of procedures for the assessment of technical competence of conformity assessment bodies for the purpose of authorisation. Conformity assessment procedures are conducted by conformity assessment bodies. technical requirements for products and conformity assessment procedures for products are regulated by technical regulations adopted by heads of the central state administration body. and pursuant to authorisation granted in accordance with current regulations. work has begun on drafting the Rules for the evaluation of conformity assessment bodies and instructions for the implementation of particular technical regulations. Upon Croatia’s accession to the European Union. Other conditions to be met by conformity assessment bodies in line with technical and/or other regulations in force. within their competence. except in cases in which liability is prescribed by another law. conformity assessment procedures will be conducted by conformity assessment bodies. The heads of state administration bodies adopting technical regulations must determine whether the conformity assessment bodies meet the requirements. 3. On 26 July 2007.I. A mid-term HAA priority is to conclude EA MLA agreements. Liability insurance contracts must be concluded. and at the latest by the date of Croatia’s accession to the European Union. POLITICAL CRITERIA New accreditation schemes will be developed. in line with their competence and scope.1. 79/07). on the basis of authorisation issued by the head of the competent central state administration body issuing the pertinent technical regulation. in line with the needs of state administration bodies competent for the implementation of new Croatian technical regulations aligned with EU directives. Possession of the necessary equipment. IAF). Compliance with confidentiality rules. conformity assessment of products with technical requirements will only be conducted by conformity assessment bodies notified with the European Commission (notified bodies).1. Until the publication of the list of conformity assessment bodies authorised under the new technical regulations. Conformity assessment A) ACHIEVEMENTS IN 2008 In accordance with the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03. In addition. in line with legislation and subordinate legislation within the competence of MELE. Independence and impartiality in conformity assessment procedures. based on which the CCA will assess the technical competence of conformity assessment bodies for the purpose of authorisation. or the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (ACAA). the HAA and the Ministry of the Economy.3. or upon the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union. Once this is achieved. 131 . conditions will be met for concluding multilateral agreements with international accreditation organisations (ILAC. Conformity assessment bodies must meet the following requirements: Professional competence of staff in the relevant area of production for which the conformity assessment body is authorised.

B. organised by the Internal Market Co-ordination Department of the Ministry of the Economy. the Section for the Implementation of Technical Legislation was set up within the Internal Market Co-ordination Department. H. HAA). leather. DZM. Such training events will continue to be organised in 2009. with a view to continuing co-operation with conformity assessment bodies.2009 The HAA has sent a letter of intent to sign the same type of agreement as signed with MELE to other ministries in charge of the implementation of technical regulations (MI. institutions for quality infrastructure (HZN. conformity assessment bodies. MSTI). “A new revision of the New Approach”). In 2008. institutions for quality infrastructure. social partners and representatives of state administration bodies. The seminars drew a large attendance from representatives of producers. pertaining to the implementation of technical legislation in the Republic of Croatia. protective gloves Certification of personal protective clothing and footwear Approving quality management systems in the production of personal protective clothing and footwear Name of CAB No. The chart below presents an overview of accredited conformity assessment bodies (CABs) in the areas covered by ACAA negotiations in 2008. modules Aa. In 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . of CABs in procedure HRN EN ISO/IEC 17025 Testing laboratory Testing of textiles and protective clothing Euroinspekt Eurotekstil HRN EN 45011 Product certification HRN EN IS0/IEC 17021 Testing of textiles Mirta-Kontrol Quality management systems certification 2 Personal protective equipment HRN EN ISO/IEC 17025 Testing laboratory 2 1 Recreational craft HRN EN ISO/IEC 17020 Inspection body Statutory certification of recreational craft and components during construction in accordance with Directive 94/25 EC. Some ministries have stated their positions and requested that the contract be delivered for signature. E Croatian Register of Shipping 132 . D. personal protective clothing and footwear. G. F. This overview includes accredited conformity assessment bodies and conformity assessment bodies in the process of accreditation. business operators and central state administration bodies. Accredited CABs Regulatory area Type of accreditation Area of accreditation In accreditation process Type of accreditation Area of accreditation Extending accreditation to testing of textiles. the State Inspectorate. Labour and Entrepreneurship (“Importance of conformity assessment bodies in the implementation of the New Approach Directives”. a number of professional training seminars on conformity assessment and the revision of the new approach were held.

).1. whose application provides for the assumption of compliance with the essential requirements of the Ordinance on technical and measurement requirements pertaining to measuring instruments (OG 2/07) (transposing the Directive on measuring instruments − MID Directive). fuses.4. Materials and Technology Department laboratory Civil Engineering Institute of Croatia (IGH d. IGH CERT HRN EN ISO/IEC 17025 Testing laboratory Cement testing 1 HRN EN 45011 Product certification Cement certification Low voltage devices HRN EN ISO/IEC 17025 Testing laboratory Testing low voltage devices (switches. 133 . This list is being continuously updated. Metrology A) ACHIEVEMENTS IN 2008 National Strategy for Metrology 2008-2013 On 15 May 2008. cables and electric machinery Certification of electric equipment and devices with regard to EMC requirements 1 Electromagnetic compatibility HRN EN ISO/IEC 17025 Testing laboratory Testing electromagnetic compatibility of electric equipment and devices KonËar IE − EMC laboratory 1 3. switch devices.I. Business Centre Split. circuit breakers. was published in the Official Gazette. switch blocks. as new harmonised standards are adopted. POLITICAL CRITERIA HRN EN ISO/IEC 17025 Testing laboratory Construction products Cement testing Civil Engineering Institute of Croatia (IGH d. The National Investment Strategy for Metrology 2008-2013 was completed and adopted by the Government of the Republic of Croatia on 20 June 2008. The list of Croatian standards adopting harmonised European standards.). This Strategy is the basis for investments in the metrology infrastructure and financing its development from the State Budget and EU funds. the National Strategy for Metrology 2008-2013 was adopted by a Decision of the Government of the Republic of Croatia.d.1. Legislative measures All New and Old Approach directives regarding metrology were transposed into national legislation by the beginning of 2007. contactors and line-up terminals) KonËar IE High-power laboratory HRN EN ISO/IEC 17025 Testing laboratory HRN EN 45011 Product certification HRN EN 45011 Product certification Testing IT and electronic equipment 1 Certification of home appliances.d.

on 20 May 2008 an event was organised to celebrate World Metrology Day. Equipment for these laboratories was acquired within the CARDS 2004 assistance programme. At the National Laboratory for Mass. organised a seminar on measurement of mass and a seminar on pipe provers for fluids other than water. 134 . The National Laboratory for the Field of Ionising Radiation (secondary standard dosimetry laboratory) has received authorisation and has been accredited by the German DKD (Deutscher Kalibrierdienst). replacing old equipment. At the National Laboratory for Density. and short promotional brochures pertaining to measurement units. Equipment for testing objects made of precious metals has been acquired by the DZM unit in Split. The Laboratory for Primary Electromagnetic Measurement of the Faculty of Electrical Engineering and Computing of the University of Zagreb has presented a quality system to the relevant EURAMET (European Collaboration for Measurement Standards) committee. A pipe prover for fluids other than water has been put into service. It was donated through the CARDS programme. such as the EURAMET manual for expressing measurement uncertainty. The Laboratory for Process Measurement of the Faculty of Mechanical Engineering and Naval Architecture has published the first Calibration and Measurement Capabilities (CMC) for the area of pressure in the BIPM KCDB database. in accordance with the Act on Amendments to the Metrology Act (OG 111/07). The necessary additional equipment has been acquired for the National Laboratory for Testing Mechanical Properties of the Faculty of Mechanical Engineering and Naval Architecture. Translations of a large number of OIML recommendations and documents have been published.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Promotion of metrology The State Office for Metrology. Laboratories for legal metrology Equipment for testing taximeters has been acquired and put into service. Within the Laboratory for Process Measurement. National laboratories of the State Office for Metrology Two laboratories in the field of chemical metrology have been set up and authorised. The Institute should begin operating as an independent institution at the beginning of 2009.2009 Croatian Metrology Institute (CMI) The Regulation of the Government of the Republic of Croatia of 30 June 2008 established the Croatian Metrology Institute. for the purposes of legal metrology in authorisation units in Split and Rijeka. international metrology and the function of the OIML. and the International System of Units (SI). the Laboratory for Humidity of the Faculty of Mechanical Engineering and Naval Architecture of the University of Zagreb has received authorisation. This equipment will facilitate measurement comparisons within EURAMET. These laboratories will organise proficiency testing of laboratories testing wine and water. new equipment (comparators and standard weights) has been acquired and put into service. In addition. National and International Needs in Metrology and Development of Needs in Metrology. in co-operation with the Croatian Metrology Society. and the dissemination of reference values. new equipment for measuring the density of fluids has been acquired and put into service.

160/04. as well as certain WELMEC committees.I. in line with the National Strategy for Metrology 2008-2013 and the relevant Investment Strategy. The State Office for Metrology hosted the meeting of the WELMEC 6 Working Group. which took place on 22 and 23 May on the Islands of Brijuni. since the original 1999 text of the Act has undergone 11 amendments. the said provisions of the Act and the Regulation determining products requiring a quality certificate. 140/05. The procedure has been initiated for signing the Metre Convention.5. The aim of this measure is to make the profession of inspector more attractive and to contribute to the strengthening of administrative capacities in all inspection areas. The new State Inspectorate Act (Official Gazette 116/08) was adopted by the Croatian Parliament on 26 September 2008 and entered into force on 19 October 2008. pursuant to obligations arising from Article 73 of the Stabilisation and Association Agreement. The provisions of Articles 14−18 of the State Inspectorate Act (Official Gazette 76/99. 138/06. 33/05. as measures having equivalent effect to quantitative restrictions. The new State Inspectorate Act is being drafted for the purpose of consolidation. and the subordinate acts implementing the said provisions. and thus contrary to Articles 28 and 29 of the Treaty establishing the EC. authorised inspectors have full powers to undertake any necessary measures. With the entry into force of the new State Inspectorate Act. 48/05. 3. 68/07 and 79/07) which govern the monitoring of the quality of products requiring a quality certificate. The relevant act was prepared in order to ratify the Metre Convention and sent by the Government of the Republic of Croatia on 16 October 2008 to the Croatian Parliament for adoption. POLITICAL CRITERIA Participation in the work of European and international metrology organisations The annual meeting of the European Co-operation in Legal Metrology (WELMEC) took place on 8 and 9 May 2008 in the Republic of Croatia.1. The State Office for Metrology participates regularly in the work of all EURAMET technical committees and key intercomparisons. 151/03.1. so that monitoring of safety and product conformity will be conducted on products placed on the market. B) KEY PRIORITIES It is planned to amend the Ordinance on measurement requirements for pre-packaged products and bottles as measurement containers (OG 90/05). and with a view to creating conditions for full membership of the EU and becoming part of the EU internal market. the State Inspectorate began drafting the new State Inspectorate Act. Depending on resources allocated from the State Budget. 135 . However. in order to align it with EU Directive 2007/45/EEC. Furthermore. adopted by the Government of the Republic of Croatia on 29 November 2007.174/04. will cease to have effect upon the entry into force of the new State Inspectorate Act. including withdrawing a product from the market. priorities will focus on improving measuring capacities and developing new methods for certain measurements not yet included. In addition. 96/03. including market surveillance. Market surveillance A) ACHIEVEMENTS IN 2008 In 2008. are identified in items 40 and 41 of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC. 129/05. administrative barriers to placing products on the market have been removed. and the possibility of creating a new post of senior economic inspector-specialist for the purpose of conducting the most complex inspection activities. the new State Inspectorate Act lays down more favourable conditions regarding duration of service for economic inspectors and senior economic inspectors.

and have begun training other economic inspectors conducting surveillance of technical products. 15 seminars were held. representatives of the State Inspectorate participated in the implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods and the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC. continuous training.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . who will be trained in the surveillance of technical products. the State Inspectorate. sampling. through the “Acquisition of Equipment” Project component. in March 2008 the State Inspectorate applied. Through the implementation of the PHARE 2005 Project “Market Surveillance System in the Field of Technical Products”. Activities relating to the introduction of the quality management system focus on the description of the main processes in the surveillance of technical products. information and communications. to introduce a quality management system in the field of surveillance of technical products. so that market surveillance activities may be conducted in a professional and effective manner. during the year the State Inspectorate recruited 10 new trainees with the required technical education. In the course of 2008. 64 economic inspectors are competent for the surveillance of conformity and safety of technical products in the entire territory of the Republic of Croatia. co-ordinated the drafting of the annual surveillance plan. through one of the components of the PHARE 2005 Project “Market Surveillance System in the Field of Technical Products”. subcontracting. In addition. The Report on the Implementation of the Strategy and Action Plan pertaining to market surveillance from January to June 2008 was submitted to the Internal Market Co-ordination Department of the Ministry of the Economy. collected statistical data on surveillance. in certain cases. Labour and Entrepreneurship. Between March and October 2008. and has co-ordinated the work of inspectors with a view to harmonising inspection procedures. for testing the conformity and safety of products on the market by authorised conformity assessment bodies. Consequently. Within the activities of the CARDS 2004 Project “Further Capacity Strengthening in the Field of Consumer Protection” the State Inspectorate. It is also planned. such as the process of proactive and reactive surveillance. through a letter of intent to the chairman of ICSMS. Some equipment was acquired through the PHARE 2005 Project “Market Surveillance System in the Field of Technical Products” in February 2008.2009 As regards administrative capacities and plans set out in the Strategy for the Implementation of the acquis communautaire in the Field of Free movement of Goods and the NPAEU 2008. as far as the surveillance of product conformity and safety is concerned. but also by assessing product conformity and safety and. so that the surveillance of product conformity and safety will be conducted not only by inspecting the stipulated documentation. participates in the implementation of measures in the field of product safety. In 2008. Of 458 economic inspectors conducting surveillance in the area of trade of goods and services. database building. human resources. to test ICSMS in order to become familiar with the system and make a decision about using it in the future. inspection. etc. and is continuing to develop and monitor the application of all other necessary procedures. In addition. the body in charge of reporting to the Government of the Republic of Croatia on progress in the implementation of the said Strategy and Action Plan. 16 economic inspectors completed training in the application of 8 New Approach directives. sampling. budget resources reserved for activities relating to EU accession will be allocated to the following activities. the State Inspectorate continued intensive strengthening of its administrative capacity. as one of the beneficiaries. Four study visits to Germany and Slovenia were organised for State Inspectorate trainers. 136 . B) KEY PRIORITIES Activities planned for 2009 In 2009. and a description of support processes. the Technical Legislation Department has provided professional support for economic inspectors by preparing instructions for the surveillance of product conformity. relating to the application of 8 New Approach directives. The State Inspectorate has plans for the systematic acquisition of IT equipment. while representatives of the State Inspectorate participated in many other professional seminars and conferences. reporting. will switch to a surveillance system compliant with EU practices. for Chapter 1: Free Movement of Goods and in preparing the Negotiation Position for negotiations on Chapter 1: Free Movement of Goods. such as strategy.

it is important to include SI experts in the work of ADCO groups and the PROSAFE organisation. - For the purpose of checking product safety and conformity. by providing continual professional development for inspectors and developing the training system within the SI. 3. To invest in human resources. it is necessary to set up procedures for contracting the use of services (testing and conformity assessment) by testing and conformity assessment bodies. in line with European procedures. To monitor and evaluate results achieved according to the annual surveillance plan and draft future surveillance plans accordingly. To continue co-operation with other surveillance bodies and the Customs Directorate.I. Further measures To continue to secure resources necessary for conducting assessment of product conformity and safety. by providing training by trainers and setting up departmental working groups for particular directives. i. - Continued improvement of the knowledge and skills of economic inspectors.e. - Continued activities to introduce a quality management system in the field of technical products. To inform the public about activities in the area of surveillance and. B) KEY PRIORITIES The three remaining directives will be transposed in the course of 2009. and establish co-operation with all RAPEX contact points.1. and applying them in the work of regional units and local offices of the DI. - At the international level. Motor vehicles A) ACHIEVEMENTS IN 2008 Type-approval of motor vehicles In 2008. and with other bodies for the purpose of market surveillance.1. about dangerous products. by developing processes. POLITICAL CRITERIA - Further strengthening of co-operation with the Customs Directorate in order to implement Council Regulation 339/93. To participate in joint surveillance projects with EU Member States. Old Approach Directives 3.2.2. - Improved technical support for inspectors. in order to obtain the best possible information and follow-up on the implementation of directives at the EU level. procedures. by acquiring the necessary technical equipment for conducting surveillance and by acquiring standards. a total of 27 directives were transposed.1. and published ordinances will be updated in accordance with amendments to directives not included at the time of transposition. 137 . with a view to organising and co-ordinating surveillance according to particular directives.

Act on Amendments to the Chemicals Act (OG 53/08). Ordinance on existing substances (OG 61/08). B) KEY PRIORITIES The following regulations are planned for adoption in 2009: 1. linked interactively to authorised vehicle importers and the systems of other state administration bodies competent for vehicles. prior to the accession of the Republic of Croatia to the EU. 3. Act on the Implementation of Regulation (EC) No 1907/2006 of the European Parliament and of the Council concerning the Registration. Ordinance on the list of active substances in biocidal products (OG 90/08). labelling and packaging of dangerous chemicals (aligned with Commission Regulation (EC) No.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2009 In addition. Authorisation and Restriction of Chemicals (REACH) and Directive 2008/58/EC of 21 August 2008 amending. 2.2. Ordinance on the list of existing active substances not permitted in biocidal products (OG 90/08). a regulation will be prepared (Ordinance on conformity assessment of vehicles). 3. 440/2008 of 30 May 2008 laying down test methods pursuant to Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration. Ordinance on the list of existing active substances permitted in biocidal products (OG 90/08). 2. The following subordinate legislation was adopted in 2008: 1. 1907/2006 (REACH Regulation). and which was approved by the National Approval Commission at its session of 13 March 2008. Ordinance on good laboratory practice (OG 38/08). Evaluation. Act on Amendments to the Act on Biocidal Products (OG 35/08). labelling and packaging of dangerous chemicals (OG 23/08). marking. Authorisation and Restriction of Chemicals (OG 53/08). 5. 6. which will regulate the manner and procedures of conformity assessment and the corresponding records of all types of motor vehicles on the market in the Republic of Croatia. 2. 7. and on the types of biocidal products with their descriptions and common principles for the evaluation of biocidal products (OG 90/08). 3. was sent by the Government of the Republic of Croatia on 20 June 2008 to the Croatian Parliament. marking. Ordinance on amendments to the Ordinance on the classification. Council Directive 67/548/EEC on the approximation of the laws. Ordinance on the classification. Ordinance on the Safety Data Sheet (aligned with Annex II to Regulation (EC) No. 4. 138 . Chemical products A) ACHIEVEMENTS IN 2008 The following legal acts were adopted in 2008: 1. for the purpose of its adaptation to technical progress. the drafting of which was financed from the SIDA Fund (Kingdom of Sweden). which adopted it at its session of 28 November 2008. Evaluation.2. This regulation will also require a new IT system. and on the documentation for the evaluation of biocidal products. for the 30th time. procedures for the evaluation of biocidal products and their use. regulations and administrative provisions relating to the classification. packaging and labelling of dangerous substances.1. Ordinance on the documentation for the evaluation of the active substance in biocidal products. The National Strategy for Chemical Safety.

4. Ordinance on the conditions to be met by legal and natural persons providing services or conducting activities of intermediaries. Ordinance on the export and import of dangerous chemicals (aligned with regulation (EC) No. 163/03. 6. Trade in narcotic drugs. so that no legislative measures are planned for 2009. 141/04 and 40/07). Trade in other precursors lies partly within the competence of the Sanitary Inspection and the Border Sanitary Inspection Department of the Ministry of Health and Social Welfare. drug precursors. In 2008.1. 87/02. psychotropic substances and drug precursors. Directive 2008/79/EC.e. The Ministry of Health and Social Welfare is responsible for issuing and updating the List of narcotic drugs. National Programme of Good Laboratory Practice (implementation of Article 2 item 32 of the Ordinance on good laboratory practice (OG 38/08). psychotropic substances and drug precursors falls within the competence of the Medicinal Products Department of the Ministry of Health and Social Welfare. POLITICAL CRITERIA 3.2. and partly within the competence of the Ministry of the Economy. 8. Directive 2008/77/EC and Directive 2008/75/EC). 3. 7.1. and substances which may be used to synthesise narcotic drugs (OG 43/08) was adopted.I.4. Amendments to the List of dangerous chemicals whose placing on the market is prohibited or restricted (aligned with amendments to Directive 76/769/EEC). 3. Ordinance on amendments to the Ordinance on the list of existing active substances not permitted in biocidal products (aligned with Commission Decision 2008/681/EC). Detergents A) ACHIEVEMENTS IN 2008 The Act on General Use Items and the Ordinance on sanitary safety of detergents have been aligned with the acquis in the field of detergent safety. the List of narcotic drugs. Labour and Entrepreneurship and the Ministry of the Interior. The following implementation measures are planned for 2009: 1.2. 689/2008 of the European Parliament and of the Council of 17 June 2008 concerning the export and import of dangerous chemicals). Drug precursors A) ACHIEVEMENTS IN 2008 The field of narcotic drugs. is regulated by the Act on the Suppression of Narcotic Drugs Abuse (OG 107/01. 139 . Directive 2008/78/EC. List of biocidal products (implementation of Article 18 of Directive 98/8/EC concerning the placing of biocidal products on the market). 5. psychotropic substances and substances from which narcotic drugs can be derived. psychotropic substances and plants from which narcotic drugs can be derived.3. Ordinance on amendments to the Ordinance on the list of existing active substances permitted in biocidal products (aligned with Directive 2008/80/EC. i. in which they come into direct contact with dangerous chemicals (aligned with Directive 74/556/EEC and 74/557/EEC).

Physical Planning and Construction. According to this Ordinance. Ordinance on the manner of advertising and publishing information on medicinal products. Ordinance establishing the criteria for wholesale pricing of medicinal products and the manner of reporting wholesale prices (OG 60/08). Veterinary pharmaceuticals A) ACHIEVEMENTS IN 2008 Regarding veterinary pharmaceuticals. Pharmaceuticals A) ACHIEVEMENTS IN 2008 In the course of 2008.2. The Regulation on the internal organisation of the Ministry of Agriculture. on the basis of the Medicinal Products Act.2009 B) KEY PRIORITIES The organisation of market surveillance will commence. Fisheries and Rural Development was published in Official Gazette (35/08) of 28 March 2008. 3.6. the Veterinary Inspection Directorate was separated from the Veterinary Directorate and established as an independent directorate competent for inspection activities pertaining to veterinary medicinal products and laboratory practice. 3.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 2. Ordinance on the procedure and manner of granting marketing authorisation for a finished medicinal product (OG 113/08). Ordinance on good laboratory practice and the procedure of establishing requirements of good laboratory practice. 3. B) KEY PRIORITIES The Act on Medicinal Products needs additional alignment with Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use. 3. Ordinance on pharmacovigilance.5. 2. in the part pertaining to data exclusivity. B) KEY PRIORITIES The following European legislation is planned for transposition into Croatian legislation in 2009: 140 .2.1.1. Existing administrative capacities will be sufficient for achieving this objective. The following subordinate legislation is planned for adoption in 2009: 1. the following subordinate legislation was adopted: 1. the Act on Veterinary Medicinal Products (OG 84/2008) was published on 18 July 2008. Ordinance establishing the criteria for inclusion of medicinal products in the basic and supplementary reimbursement lists of the Croatian Institute for Health Insurance (OG 60/08). which will involve bringing together the work of the competent inspection services − the Sanitary Inspectorate and the Environmental Inspectorate of the Ministry of Environmental Protection.

- Commission Regulation 2006/130/EC of 11 December 2006 implementing Directive 2001/82/EC of the European Parliament and of the Council as regards the establishment of criteria for exempting certain veterinary medicinal products for food-producing animals from the requirement of a veterinary prescription.I. The Directive will be transposed into Croatian legislation through the Ordinance on veterinary medicinal products.8. with a view to full alignment with Directive 76/768/EEC. whether arising in the Community or in a third country. it is necessary to adopt the Act on Amendments to the Act on General Use Items and amend the Ordinance on the sanitary safety of general use items and the sanitary safety of toys. The Veterinary Inspection Directorate also plans to recruit one employee for the position of senior state inspector for veterinary medicinal products. As mid-term priorities. Cosmetic products A) ACHIEVEMENTS IN 2008 The Ordinance on the sanitary safety of general use items and the sanitary safety of toys (OG 47/08) was adopted in 2008. - Commission Regulation 540/95/EC of 10 March 1995 laying down the arrangements for reporting suspected unexpected adverse reactions which are not serious. 3.7. further subordinate legislative acts based on the Act on Veterinary Medicinal Products are planned for adoption. 3. and alignment with the acquis will continue. B) KEY PRIORITIES In line with EC recommendations. as amended by Directive 2004/28/EC of 31 March 2004.2. - Commission Regulation 1950/2006/EC of 13 December 2006 establishing. Glass A) ACHIEVEMENTS IN 2008 Legislative measures 141 . to medicinal products for human or veterinary use authorised in accordance with the provisions of Council Regulation (EEC) No 2309/93. a list of substances essential for the treatment of equidae.2. The organisation of market surveillance will begin in the coming period. With the adoption of legislation. POLITICAL CRITERIA - Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to veterinary medicinal products.1. activities relating to the organisation of pharmacovigilance of veterinary medicinal products will commence. which will involve bringing together the work of the competent inspection services − the Sanitary Inspection and the economic inspectors of the State Inspectorate. Existing administrative capacities will be sufficient for achieving this objective. transposing Directive 76/768/EEC concerning cosmetic products. including the recruitment of an employee to conduct these activities. in accordance with Directive 2001/82/EC of the European Parliament and of the - Council on the Community code relating to veterinary medicinal products.1.

2. Implementation measures Measures planned for 2009 involve implementing existing legislation in the field of crystal glass. Labour and Entrepreneurship adopted the Ordinance on crystal glass products (OG 135/05). The Ordinances fully transpose Directives 97/74/EC. Ordinance on the raw material composition. Ordinance on methods of quantitative analysis of trinary textile fibre mixtures (OG 135/05).2009 In November 2005. Ordinance on textile composition and names (OG 135/05). for the purposes of its adaptation to technical progress. the Ministry of the Economy. Annexes I and II to Directive 96/74/EC of the European Parliament and of the Council on textile names. and the competent institution for the implementation of this Ordinance is the Industry and Privatisation Directorate of the Ministry of the Economy. has been transposed into Croatian legislation. 97/37/EC. No institutional measures have been envisaged for this activity. 142 . B) KEY PRIORITIES Legislative measures Amendments will be made to the Ordinance on crystal glass products (OG 135/05). Implementation measures The application of technical regulations pertaining to textiles began in 2006. Implementation measures The application of the Ordinance on crystal glass products (OG 135/05) began in 2006. Labour and Entrepreneurship adopted the following new subordinate legislative acts in April 2008: 1 Ordinance on certain methods of quantitative analysis of binary textile fibre mixtures (OG 40/08) Commission Directive 2006/2/EC of 6 January 2006 amending. 3.1. Ordinance on methods of quantitative analysis of binary textile fibre mixtures (OG 135/05). in line with EC observations.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 2. has been transposed into Croatian legislation. 96/73/EC and 73/44/EEC into Croatian legislation. Further monitoring and alignment of legislation with EU legislation in the field of crystal glass will be carried out. The implementation of these regulations lies within the competence of the Ministry of the Economy. transposing Directive 69/493/EEC on crystal glass into Croatian legislation. names and labelling of textile products (OG 40/08) Commission Directive 2006/3/EC of 9 January 2006 amending. 3. Annex II to Directive 96/73/EC of the European Parliament and of the Council on certain methods for quantitative analysis of binary textile fibre mixtures. Labour and Entrepreneurship. Textiles A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005. for the purposes of their adaptation to technical progress. Labour and Entrepreneurship − Industry and Privatisation Directorate. the Ministry of the Economy. The Ministry of the Economy.2. Labour and Entrepreneurship adopted the following legislative acts: 1.9. nor will it be necessary to strengthen administrative capacities. The envisaged deadline for amending the Ordinance is the first quarter of 2009.

regulations and administrative provisions of the Member States relating to labelling the materials used in the main components of footwear for sale to the consumer. No institutional measures have been envisaged for the implementation of technical regulations. relating to fertilisers.1.2. 40/07). 3. pursuant to the Act on Fertilisers and Soil Improvers (OG 163/03. Labour and Entrepreneurship adopted the Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 135/05). which is partly aligned with Regulation (EC) No 2003/2003 of the European Parliament and of the Council of 13 October 2003. Implementation measures The application of the Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 135/05) began in 2006. nor will it be necessary to strengthen administrative capacities. the new Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 40/08) was adopted in April 2008. Implementation measures Further implementation of existing legislation. 3.11. Footwear A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation in the area of footwear. Implementation measures Implementation of existing legislation in the area of textiles. which transposes into Croatian legislation Directive 94/11/EC of the European Parliament and Council of 23 March 1994 on the approximation of the laws. Mineral fertilisers A) ACHIEVEMENTS IN 2008 The Ordinance on good agricultural practice in the use of fertilisers (OG 56/08) was adopted. Labour and Entrepreneurship. POLITICAL CRITERIA B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation in the area of textiles. No institutional measures have been envisaged for the implementation of technical regulations. the Ministry of the Economy. The Ordinance lays down the general principles of good agricultural practice in the 143 .1.I. With a view to aligning the above Ordinance with observations made by the European Commission. nor will it be necessary to strengthen administrative capacities. and the institution competent for its implementation is the Industry and Privatisation Directorate of the Ministry of the Economy.2.10.

The envisaged deadline for amending the Ordinance is the fourth quarter of 2008. the Ministry of Agriculture. work is underway to draw up instructions (in the form of a guide) for the application of the Ordinance. It is planned for adoption in the fourth quarter of 2008. soil treatment techniques for the use of organic fertilisers and mineral fertilisers.1. which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. after new codification within the EU. and the capacity and features of manure storage facilities. Labour and Entrepreneurship adopted the Ordinance on electrical equipment designed for use within certain voltage limits (OG 135/05). is imperative. Amendments to the Ordinance are being drawn up in line with observations made by the EC.1. Low-voltage equipment A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005. wetlands. and with the Croatian Standards Institute in the participation of Ministry representatives in the work of technical 144 . carries the number 2006/95/EC. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of low-voltage equipment. Therefore.3. New Approach Directives 3. transposing into Croatian legislation Directive 73/23/EEC on low voltage equipment. B) KEY PRIORITIES In 2009. conditions for the use of fertilisers in the proximity of watercourses. no legislation or subordinate legislation is planned for 2009. the Ministry of the Economy. Strengthening the administrative capacities of this Section. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation.2009 use of fertilisers. conformity assessment bodies and consumers. the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. which. frozen or snow-covered soils. the use of fertilisers in escarpments.3. Fisheries and Rural Development will have no new obligations arising from the negotiating strategy for Chapter 1: Free Movement of Goods in connection with mineral fertilisers. flooded. which should facilitate its application for producers. Implementation measures The Ordinance has been in effect since 1 January 2007 and its implementation lies within the scope of MELE’s Industry and Privatisation Directorate. It is also necessary to intensify co-operation with the Croatian Accreditation Agency in the procedures of verification of conformity assessment bodies.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Currently.1. 3. the period of the year during which it is not permitted to use fertilisers on agricultural soils.

1. B) KEY PRIORITIES Further monitoring and alignment of legislation with EU legislation in the field of simple pressure vessels.1. should facilitate their application for producers. In October 2008. which transposes into Croatian legislation Directive 87/404/EEC on simple pressure vessels. competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. conformity assessment bodies and consumers. It is planned for adoption in the fourth quarter of 2008. and the drawing up of the instructions (in the form of a guide) for the application of the Ordinance. the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. Strengthening the administrative capacities of this Section. which lays down the conditions and procedure for recognising foreign conformity assessment documents. authorised a body for conformity assessment (the notified body) and published the List of Standards for the application of the Ordinance on simple pressure vessels. which is competent for the implementation of the Ordinance. 3. and so was the Ordinance on conformity assessment procedures for pressure equipment based on conformity documents issued abroad (OG 126/08). POLITICAL CRITERIA committees and adopting standards. Co-operation with the State Inspectorate in conducting market surveillance is also especially important in this area. Labour and Entrepreneurship. Simple pressure vessels A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005. Ecodesign requirements for energy-using products (EUP) A) ACHIEVEMENTS IN 2008 145 .I. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of simple pressure vessels. The amendments to the Ordinance on simple pressure vessels (OG 6/06) served to postpone the application of the Ordinance until the granting of authorisation by the conformity assessment body. The application and im plementation of the ordinances adopted.3. MELE passed the Ordinance on simple pressure vessels (OG 135/05). The adoption of the new State Inspectorate Act created preconditions for the application of subordinate acts adopted under the Act on Technical Requirements for Products and on Conformity Assessment. Implementation measures The Ministry of the Economy.3.2. 3. is imperative.3. the Ordinance on amendments to the Ordinance on simple pressure vessels (OG 126/08) was adopted.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009

Legislative measures Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products, and Directive 2000/55/EC on energy efficiency requirements for ballasts for fluorescent lighting, have not been transposed into Croatian legislation. The adoption of a special regulation establishing a framework for the setting of ecodesign requirements for energy-using products should serve to transpose into Croatian legislation Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products. The deadline for adopting the regulation is the fourth quarter of 2008. The adoption of the Ordinance on energy efficiency requirements for ballasts for fluorescent lighting, should serve to transpose into Croatian legislation Directive 2000/55/EC on energy efficiency requirements for ballasts for fluorescent lighting. The deadline for adopting the regulation is the fourth quarter of 2008. Implementation measures To date, the project entitled “Energy Efficiency in Small and Medium Enterprises in Croatia” (the Regional Centre for Environmental Protection for Central and Eastern Europe and the Ministry of Environment and Protection of the Territory and Sea of the Italian Republic, with the Faculty of Electrical Engineering and Computing) has been completed, as has market research on the application of energy efficiency programmes in small and medium enterprises in Croatia (consultants: EUtech and Energiestiftung SchleswigHolstein, in co-operation with FEEC experts). B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship and the Ministry of Environmental Protection, Physical Planning and Construction are competent for transposing the Directive and implementing the regulations. Promotional activities should be arranged in order to explain the concept of eco-design to small and medium enterprises and other producers in the country, to become acquainted with interest groups, and point out the importance and mechanisms of effective implementation of the eco-design concept. It is especially important to ensure the correct implementation of the Directive. In 2010, it is planned to intensify activities on the implementation of eco-design regulations.

3.1.3.4. Noise emission by equipment for use outdoors

A) ACHIEVEMENTS IN 2008 With a view to achieving alignment with Directive 2000/14/EC of the European Parliament and of the Council of 8 May 2000, as amended by Directive 2005/88/EC, the Ministry of Health and Social Welfare has adopted the Ordinance on noise emission by equipment for use outdoors (OG 156/08).

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3.1.3.5. Emissions of pollutants into the air from internal combustion engines installed in non-road mobile machinery

A) ACHIEVEMENTS IN 2008 Work is underway on drawing up the Ordinance on measures against the emission of gaseous and particulate pollutants from internal combustion engines installed in non-road mobile machinery, transposing Directive 97/68/EC into Croatian legislation. The Ordinance will be completed and published by the end of 2008.

3.1.3.6. Toys

A) ACHIEVEMENTS IN 2008 The Ordinance on the sanitary safety of toys (OG 113/08) was adopted as planned. B) KEY PRIORITIES During 2008, and especially in the coming mid-term period, measures will be undertaken to organise market surveillance. No additional strengthening of administrative capacities will be necessary to achieve this goal. Once the new EU directive concerning toys is adopted, work will start on achieving alignment with technical requirements pertaining to toys.

3.1.3.7. Machinery

A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on machinery safety (OG 135/05), transposing Directive 98/37/EEC relating to machinery into Croatian legislation. The amendment of the Ordinance on machinery safety will align current legislation with the new EC Directive relating to machinery. The envisaged deadline is the fourth quarter of 2008. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship is responsible for the implementation of technical regulations concerning machinery. Ministry representatives attended the EC Working Group for machinery, at which the new Machinery Directive 2006/42/EC was presented. The Ministry has begun preparations for alignment with the new Directive.

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B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation relating to machinery with EU legislation. Implementation measures Measures pertaining to the implementation of technical regulations in the field of safety of machinery are aimed primarily at encouraging proficiency and setting up national conformity assessment bodies. In order to ensure the best possible implementation of technical regulations in the field of safety of machinery, the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. Strengthening the administrative capacities of this Section, which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative. It is also necessary to intensify co-operation with the Croatian Accreditation Agency in the procedures of verification of conformity assessment bodies, and with the Croatian Standards Institute in the participation of Ministry representatives in the work of technical committees and adopting standards. Measures in 2010 will be aimed at the implementation of current legislation in the field of safety of machinery.

3.1.3.8. Personal protective equipment

B) KEY PRIORITIES In 2009, the amended Ordinance on the placing of personal protective equipment on the market (OG 106/07 and 121/07) is planned for adoption, based on observations received from the EC.

3.1.3.9.. Explosives for civil use

A) ACHIEVEMENTS IN 2008 The implementation of the Act on Explosive Substances (OG 178/04, 109/07, 67/08), aligned with Directive 93/15/EEC, is currently underway, as is the implementation of subordinate legislation adopted on the basis of the Act and in line with the Directive. The Transport of Hazardous Substances Act (OG 79/07) entered into force on 1 January 2008. Among other things, the provisions concerning the issuing of authorisation for the transport of explosive substances in this Act have been aligned with the provision of Directive 93/15/EEC. Procedures for conformity assessment of explosive substances are currently conducted by two institutions: the Faculty of Mining, Geology and Petroleum Engineering (FMGPE) and the Agency for Technical and Technological Research and Development Zagreb (ATIR d.o.o.), authorised by the Minister of the Interior on the basis of the former Act on Explosive Substances for Economic Uses (OG 12/94) and the Ordinance on the conditions which must be met by institutions for testing explosive substances (OG 2/96). In 2008, the Ministry of the Interior conducted restructuring of the inspection service for explosive substances at its headquarters, raising the inspection level from section to department. The new systematisation includes a new post - inspector for explosive substances.

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With a view to strengthening administrative capacity, on 30 October 2008 a seminar was held for police administration inspectors in charge of protection from fire and explosives, during which they were acquainted with the implementation of the Act on Explosive Substances and subordinate legislation adopted on the basis of that Act. B) KEY PRIORITIES In the course of 2009, it is expected that legal or natural persons will file requests for authorisation to conduct activities of conformity assessment of explosive substances. This authorisation is issued by the Minister of the Interior to a legal or natural person verified by the Croatian Accreditation Agency to be professionally and technically qualified to conduct activities of conformity assessment. The process of transposing harmonised standards accompanying Directive 93/15/EEC, which have not yet been transposed, and strengthening administrative capacity, through training and recruiting new employees, will continue.

3.1.3.9. Pyrotechnic articles

A) ACHIEVEMENTS IN 2008 Pyrotechnic articles are regulated by the Act on Explosive Substances (OG 178/04, 109/07, 67/08) and the Ordinance on safety requirements for pyrotechnic articles for entertainment and technical purposes (OG 146/05). According to the Act on Explosive Substances, pyrotechnic articles are considered to be explosive substances. The latest amendments to the Act on Explosive Substances (OG 67/08) of 30 May 2008 have aligned the provisions of the Act with Directive 2007/23/EC on the placing on the market of pyrotechnic articles. The Ordinance on safety requirements for pyrotechnic articles for entertainment and technical purposes (OG 146/05) regulates the safety requirements to be met by pyrotechnic articles intended for entertainment and technical purposes, as regards mass, chemical composition, material, noise level, range, time of activation, efficiency and other characteristics and conditions for classification. In November 2008, the Minister of the Interior adopted the new Ordinance on safety requirements for pyrotechnic articles and conditions for their classification, for the purposes of alignment with Directive 2007/23/EC on the placing on the market of pyrotechnic articles. The Transport of Hazardous Substances Act (OG 79/07) also serves to achieve alignment of the provisions on issuing authorisation for the transport of explosive substances, which include pyrotechnic articles, with the provision of Directive 93/15/EEC. The Act entered into force on 1 January 2008. Procedures for conformity assessment of explosive substances are currently conducted by two institutions: the Faculty of Mining, Geology and Petroleum Engineering (FMGPE) and the Agency for Technical and Technological Research and Development Zagreb (ATIR d.o.o.), authorised by the Minister of the Interior on the basis of the former Act on Explosive Substances for Economic Uses (OG 12/94) and the Ordinance on the conditions which must be met by institutions for testing explosive substances (OG 2/96). B) KEY PRIORITIES In the course of 2009, it is expected that legal or natural persons will submit requests for authorisation to conduct activities of conformity assessment of explosive substances. This authorisation is issued by the Minister of the Interior to a legal or natural person verified by the Croatian Accreditation Agency to be professionally and technically qualified to conduct activities of conformity assessment. The strengthening of administrative capacity will continue through the training and recruitment of new employees, as will the transposition of harmonised standards accompanying Directive 2007/23/EC, which have not yet been transposed.

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3.1.3.10. Potentially explosive atmospheres

A) ACHIEVEMENTS IN 2008 The legislative framework in this sector consists of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03, 79/07), based on which the Ministry of the Interior adopted the Ordinance on equipment and protective systems intended for use in potentially explosive atmospheres (OG 123/05), transposing into Croatian legislation Directive 94/9/EC of the European Parliament and the Council of 23 March 1994 on the approximation of the laws of the Member States concerning equipment and protective systems intended for use in potentially explosive atmospheres. The authority competent for the implementation of the ATEX Directive is the Ministry of the Interior and its partners are the Agency for Spaces Endangered by Explosive Atmospheres (Ex-Agency), the Croatian Standards Institute (HZN), the Croatian Accreditation Agency (HAA) and the State Inspectorate (SI). The assessment of the professional and technical proficiency of the Ex-Agency according to the criteria of standards HRN EN 45011:1998 (EN45011:1998) and HRN EN ISO/IEC 17025:2006 (ISO/IEC 17025:2006) is now complete. An assessment was also conducted by the HAA according to standard HRN EN 45012:1998 (EN 45012:1998). Accreditation Certificates no. 3115/07 of 26 June 2007 and no. 1120/07 of 27 July 2007 were also issued. In 2008, the HAA drew up a Proposal of the Agreement on Co-operation with the MI concerning activities for the assessment of the proficiency of conformity assessment bodies, in accordance with the New and Global Approach Directives, which fall within the scope of the MI, including the ATEX Directive. The Agreement obliges the HAA to draw up assessment rules according to this Directive and provide further resources for the implementation of assessment. In the Croatian Standards Institute (HZN), the necessary infrastructure in the area of the ATEX Directive was set up through the formation of Technical Committee HZN/TO E31, Electrical apparatus for explosive atmospheres, 1993. The chairperson of Technical Committee HZN/TO E31 is a representative of Ex-Agency. The Republic of Croatia (the Croatian Standards Institute) participates actively in the work of the corresponding international Technical Committee EIC/TC 31, Electrical apparatus for explosive atmospheres, and hosts the Secretariat of the International Subcommittee IEC/SC 31J, Classification of hazardous areas and installation requirements. In the course of 2008, at the proposal of the Croatian Standards Institute, the Minister of the Interior published an amended List of Croatian standards for the application of the Ordinance on equipment and protective systems intended for use in potentially explosive atmospheres (OG 27/08), adding 13 standards to the 2006 List (OG 141/06). At the moment, of 84 European standards providing presumption of conformity in the area of the application of Directive 94/9/EC (ATEX), published in OJ C 90/2008, the Republic of Croatia has adopted and published 65 in the List. Of the 19 aligned European standards which are not on the list, 13 have been adopted as Croatian standards, and 6 have not yet been taken over. The List is amended according to the schedule of adoptions and proposals made by the HZN. Market surveillance in the area covered by the ATEX Directive is carried out by the inspection services of the fire protection inspectorate of the MI and the inspection services of other state administration bodies, in line with special regulations (occupational safety, electricity, mining). Their co-operation is satisfactory. There are currently 102 fire protection inspectors in the Republic of Croatia (out of 119 systematised posts), assigned to counties (police administrations) and in the seat of the Ministry of the Interior, whose scope of work includes supervising the application of the ATEX Directive. In 2008, the MI conducted restructuring of the fire protection inspection service in its seat, by raising the inspection level from section to department, while the new systematisation includes one more post for the position of fire protection inspector, which is currently occupied by a trainee. The number of systematised posts for fire protection inspectors in police administrations was also increased by

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two (one each in the Police Administrations of Istria and Meimurje), thus strengthening the administrative and institutional capacity of the service for monitoring the application of the ATEX Directive. There is currently a shortfall of 17 employees in fire protection activities. Strengthening of administrative capacities also takes place through the acquisition and upgrading of technical (IT) equipment for the purpose of effective surveillance, and through technical (IT) connections with other bodies for market surveillance, and these activities will continue in 2009. On 30 October 2008, a training seminar was held for police administration fire protection inspectors, in the field of supervising the application of the ATEX Directive (in conjunction with the Ex-Agency). B) KEY PRIORITIES The Agreement on Co-operation with the HAA concerning measures for assessing the proficiency of conformity assessment bodies, in accordance with the New and Global Approach Directives which fall within the scope of the MI, including the ATEX Directive, will be signed. The remaining aligned European standards will be adopted and published. The administrative and institutional capacities of the inspection services will continue to be strengthened through the training and development of existing staff and the recruitment of new staff, and the acquisition and upgrading of technical (IT) equipment.

3.1.3.11. Lifts

A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on the safety of lifts (OG 135/05), transposing Directive 95/16/EC relating to lifts into Croatian legislation. The envisaged deadline for amending the Ordinance on the safety of lifts, to align it with observations made by the EC − DG Enterprise and Industry, is the fourth quarter of 2008. Implementation measures The implementation of technical regulations for lifts is the responsibility of the Ministry of the Economy, Labour and Entrepreneurship. The Ordinance on the safety of lifts started to apply in 2006. The drawing up of instructions (in the form of a guide) for the application of the Ordinance is currently underway, and this should facilitate its application for producers, conformity assessment bodies and consumers. These instructions are planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures

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Measures are envisaged pertaining to the implementation of technical regulations in the field of the safety of new and existing lifts. Professional development will be encouraged and national conformity assessment bodies will be set up. In order to ensure the best possible implementation of technical regulations in the field of lifts, the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. It is imperative to strengthen the administrative capacities of this Section which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. In 2010, implementation of current legislation in the field of the safety of lifts will continue.

3.1.3.12. Measuring instruments The State Office for Metrology (DZM) keeps abreast of the situation in the field of applying Directive 2004/22/EEC on measuring instruments (MID) and the Directive relating to non-automatic weighing instruments (NAWI) at the level of the European Union. Based on its findings, it will continue to update the current Ordinance on technical and metrological requirements for measuring instruments (OG 2/07). The lists of standards and normative documents, which prove conformity with the essential requirements contained in the MID, will also continue to be updated, in accordance with the list published in the Official Journal of the European Union. B) KEY PRIORITIES Greater involvement in the work of the committee of the European Co-operation in Legal Metrology (WELMEC) is planned, in the course of which instructions for the application of guidelines on measurements and non-automatic weighing instruments are to be drawn up. In 2009, translations will be made of the relevant WELMEC instructions relating to the MID for specific measurements included in the above guidelines. In addition, the DZM will continue to train its experts and improve its technical capacity in the field of applying the MID and NAWI Directive.

3.1.3.13. Pressure equipment

A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, MELE passed the Ordinance on pressure equipment (OG 135/05), transposing Directive 97/23/EEC into Croatian legislation. Amendments to the Ordinance on pressure equipment (OG 6/06) postponed the application of the Ordinance until the authorisation of the conformity assessment body. The adoption of the new State Inspectorate Act serves to create the conditions for applying subordinate acts adopted under the Act on Technical Requirements for Products and on Conformity Assessment. In October 2008, the following legislation was adopted: 1. Ordinance on amendments to the Ordinance on pressure equipment (OG 126/08); 2. Ordinance on conformity assessment procedures for pressure equipment based on conformity documents issued abroad (OG 126/08), stipulating the conditions and procedure for the recognition of foreign conformity assessment documents;

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3. Ordinance on aerosol dispensers (OG 126/08), which has transposed Directive 75/324/EEC into Croatian legislation; 4. Ordinance on transportable pressure equipment, which has transposed Directive 1999/36/EEC into Croatian legislation. With a view to regulating the field of pressure equipment in use, the Government of the Republic of Croatia adopted the Regulation establishing the Agency for Pressure Equipment (OG 132/08), which is competent for the safety of pressure equipment in use, and in charge of concluding any proceedings launched on the basis of the old regulations, but relating to new pressure equipment. Such proceedings were within the competence of the Inspectorate for Pressure Vessels until the adoption of the new State Inspectorate Act. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship, which is competent for the implementation of the Ordinance, has authorised a conformity assessment body (notified body) and published the List of Standards for the application of the Ordinance on pressure equipment. The application and implementation of the adopted subordinate legislation in the field of pressure equipment and the adoption of the instructions (in the form of a guide) for the application of the Ordinance, which should facilitate its application for producers, conformity assessment bodies and consumers, is underway. It is planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of pressure equipment, the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. Strengthening the administrative capacities of this Section, competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative. In 2010, implementation of the current technical regulations for pressure equipment will continue.

3.1.3.14. Gas appliances

A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on gas appliances (OG 135/05), transposing Directive 90/396/EEC into Croatian legislation. Implementation measures The application of the Ordinance started in 2006 and its implementation is the responsibility of the Ministry of the Economy, Labour and Entrepreneurship - Industry and Privatisation Directorate. Instructions on applying the Ordinance are being drawn up, which should facilitate its application for producers, conformity assessment bodies and consumers.

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B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures Training will be encouraged and national conformity assessment bodies established. In order to ensure the best possible implementation of technical regulations, the Section for the Implementation of Technical Legislation has been set up within MELE’s Industry Directorate. It is imperative to strengthen the administrative capacities of this Section which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. Current legislation will be implemented.

3.1.3.15. Radio equipment and telecommunications terminal equipment

A) ACHIEVEMENTS IN 2008 Under the National Strategy for the Alignment of Technical Legislation, the Ministry of the Sea, Transport and Infrastructure (MSTI) is the body responsible for radio and telecommunications terminal equipment (RTT equipment). In the process of fulfilling the conditions for full membership of the European Union and for the purpose of closing negotiations on Chapter 10: Information Society and the Media, the new Act on Electronic Communications (OG 73/08) was adopted. It entered into force on 1 July 2008 and has been applied therefrom. The new Act is fully aligned with the relevant acquis in the field of electronic communication networks and services, which forms the valid 2002 regulatory framework in electronic communications. The provisions of Articles 97 to 100 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) relating to RTT equipment are not part of the scope of application of the new Act on Electronic Communications, in compliance with the principle of separation of regulations on electronic communications networks and services from regulations governing equipment, in accordance with the EU New Approach Directives. Nonetheless, these provisions will remain in force until 1 January 2009, that is, until the entry into force of the new Ordinance on RTT equipment (OG 112/08). The new Ordinance on RTT equipment (OG 112/08) was adopted on the basis of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07). This Ordinance, which is fully aligned with Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on RTT equipment and the mutual conformity recognition, prescribes conditions concerning placing RTT equipment on the market and putting it into service, the manner and procedure of conformity assessment for RTT equipment, the manner and procedure of authorising conformity assessment bodies for RTT equipment, the procedure of issuing approvals for import and placing RTT equipment on the market, markings and the manner of marking RTT equipment, and the publication of the list of harmonised standards necessary for the conformity assessment of RTT equipment. Until the accession of the Republic of Croatia to the European Union or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), the Ordinance will continue to prescribe the obligation of issuing the Croatian Declaration of Conformity by the producer, its authorised representative or other person responsible for placing the product on the market in the Republic of Croatia (if the producer has no authorised representative in the Republic of Croatia), and the obligation to obtain approval for the import and/or placing of RTT equipment on the market in the Republic of Croatia by the conformity assessment body in charge of RTT equipment.

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Furthermore, the said Ordinance transfers competence for the publication of standards necessary for the conformity assessment of RTT equipment to the ministry in charge of electronic communications (i.e. MSTI), and also competence for the authorisation of conformity assessment bodies, while the procedure of establishing the proficiency of conformity assessment bodies is conducted by the Croatian Accreditation Agency (HAA), on behalf of MSTI, in accordance with the agreement on the implementation of procedures for determining the proficiency of conformity assessment bodies, concluded with MSTI, and the instruction on determining the proficiency of conformity assessment bodies, adopted by the Minister of the Sea, Transport and Infrastructure. MSTI and the HAA have entered into negotiations with a view to concluding this agreement, by which the HAA will assume the obligation of drawing up a proposal for the instruction on determining the proficiency of conformity assessment bodies, in line with Directive 1999/5/EC, and ensure sufficient capacity for the implementation of the assessment procedure. Until the accession of the Republic of Croatia to the European Union or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) or the adoption of a decision authorising at least one conformity assessment body in accordance with the said Ordinance, all the duties of the authorised conformity assessment body for RTT equipment will be conducted by the Croatian Post and Electronic Communications Agency (HAKOM). Inspection supervision of RTT equipment on the market is conducted by MSTI inspectors for electronic communications, while professional supervision of RTT equipment on the market is conducted by HAKOM supervisors for electronic communications, in accordance with their respective powers, laid down in the Act on Technical Requirements for Products and on Conformity Assessment and the Act on Electronic Communications. In the course of 2008, MSTI inspectors for electronic communications carried out inspection visits to six legal and natural persons authorised to import and/or place RTT equipment on the market in the Republic of Croatia. B) KEY PRIORITIES For the purpose of implementing the Ordinance on RTT equipment, in the part concerning the authorisation of conformity assessment bodies, it is planned to conclude an agreement between MSTI and the HAA, relating to the implementation of procedures for establishing the proficiency of conformity assessment bodies. In co-operation with the Ministry of the Economy, Labour and Entrepreneurship, further efforts are required to take significant steps forward in negotiations concerning the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in the field of RTT equipment.

3.1.3.16. Electromagnetic compatibility (EMC)

A) ACHIEVEMENTS IN 2008 According to the National Strategy for the Alignment of Technical Legislation, the competent authority for the area of electromagnetic compatibility is the Ministry of the Sea, Transport and Infrastructure (MSTI). In the process of fulfilling the conditions for full membership of the European Union and for the purpose of closing negotiations on Chapter 10: Information Society and the Media, the new Act on Electronic Communications (OG 73/08) was adopted. It entered into force on 1 July 2008 and has been applied therefrom. The new Act is fully aligned with the relevant acquis in the field of electronic communication networks and services, which forms the valid 2002 regulatory framework in electronic communications. The provisions of Article 102 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) relating to electrical and other technical equipment in terms of electromagnetic compatibility, in particular production, conformity assessment, issuing of conformity certificates, marking, authorisation of conformity assessment bodies and placement on the market, are not part of the scope of

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application of the new Act on Electronic Communications, in compliance with the principle of separation of regulations on electronic communications networks and services from regulations governing equipment, in accordance with the EU New Approach Directives. Nonetheless, they will remain in force until 1 January 2009, that is, until the entry into force of the new Ordinance on electromagnetic compatibility (OG 112/08). The new Ordinance on electromagnetic compatibility (OG 112/08) was adopted on the basis of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07). This Ordinance, which is fully aligned with Directive 2004/108/ EC, prescribes the electromagnetic compatibility requirements (EMC), which must be satisfied by electrical and other technical equipment produced, imported and placed on the market in the Republic of Croatia, the manner and procedure of conformity assessment of such equipment with electromagnetic compatibility requirements, the manner and procedure of authorising conformity assessment bodies, markings and the manner of marking electrical and other technical equipment, and the publication of the list of harmonised standards necessary for the conformity assessment of electrical and other technical equipment. Until the accession of the Republic of Croatia to the European Union, or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), the Ordinance will continue to prescribe the obligation of issuing the Croatian Declaration of Conformity by the producer, his authorised representative or other person responsible for the placing of the product on the market in the Republic of Croatia (if the producer has no authorised representative in the Republic of Croatia), and the obligation to keep and provide for review to the competent authorities technical documentation duly showing conformity with the essential requirements of electromagnetic compatibility, and the obligation to obtain a certificate of conformity for equipment and appliances with essential electromagnetic compatibility requirements, by the body authorised for conformity assessment, before placing the equipment on the market in the Republic of Croatia. Furthermore, this Ordinance transfers competence for the publication of the lists of standards in the field of electromagnetic compatibility to the ministry in charge of electronic communications (that is, MSTI), and also for the authorisation of conformity assessment bodies, while the procedure of establishing the proficiency of conformity assessment bodies is conducted by the Croatian Accreditation Agency (HAA), on behalf of MSTI, in accordance with the agreement on the implementation of procedures for determining the proficiency of conformity assessment bodies, concluded with MSTI, and the instruction on determining the proficiency of conformity assessment bodies, adopted by the Minister of the Sea, Transport and Infrastructure. MSTI and the HAA have entered into negotiations with a view to concluding this agreement, by which the HAA will assume the obligation to draw up a proposal of the instruction on determining the proficiency of conformity assessment bodies, in line with Directive 2004/108/EC, and ensure sufficient capacity for the implementation of the assessment procedure. Under the valid Ordinance on electromagnetic compatibility (EMC) (OG 16/05), competent conformity assessment bodies are authorised by the HAKOM Council, in accordance with Article 35 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) and the Ordinance on authorisation for the pursuit of business in the telecommunications sector (OG 183/04). So far, the HAKOM Council has granted authorisation to five bodies for assessing conformity with the requirements of electromagnetic compatibility, in the field of electrical and other technical equipment which may cause electromagnetic disturbances: 1. KON»AR − Electrotechnical Institute d.d. 2. CEI-IETA d.o.o. 3. ELKRON d.o.o. 4. POMORSKI CENTAR ZA ELEKTRONIKU d.o.o. 5. Quality Control Institute d.o.o. The Laboratory for EMC of the company KON»AR − Electrotechnical Institute d.d. is accredited by the Croatian Accreditation Agency (Certificate No: 1129/07) according to the requirements of standard HRN EN ISO/IEC 17025:2007 for testing electromagnetic compatibility.

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Pursuant to Article 13, paragraph 4 of the new Ordinance on electromagnetic compatibility (EMC) (OG 112/08), powers granted to conformity assessment bodies, under regulations valid until the date of entry into force of the new Ordinance, will apply until the expiration of the validity period, provided the bodies comply with the requirements laid down in the Ordinance by 31 December 2009. All data on bodies authorised to perform conformity assessment with electromagnetic compatibility requirements are published on the HAKOM website, www.telekom.hr. Inspection supervision of the market in electrical and other technical equipment under the current 2005 Ordinance is conducted by MSTI inspectors for electronic communications, the Transport Inspection Directorate, the Service for the Inspection of the Post and Electronic Communications, and competent inspectors with the State Inspectorate. The new Ordinance on electromagnetic compatibility (EMC) (OG 112/08) prescribes the exclusive competence of the State Inspectorate. Its inspectors conduct inspection supervision of electrical and other technical equipment on the market, in accordance with the Act on Technical Requirements for Products and on Conformity Assessment, and the above Ordinance. In the course of 2008, MSTI inspectors for electronic communications carried out inspection visits to six legal and natural persons authorised to import and/or place electrical and other technical equipment and appliances on the market in the Republic of Croatia. B) KEY PRIORITIES For the purpose of implementing the Ordinance on electromagnetic compatibility, in the part concerning the authorisation of conformity assessment bodies, it is planned to conclude an agreement between MSTI and the HAA relating to the implementation of procedures for establishing the proficiency of conformity assessment bodies. In co-operation with the Ministry of the Economy, Labour and Entrepreneurship, further efforts are required to take significant steps forward in negotiations concerning the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in the field of electromagnetic compatibility.

3.1.3.17. Recreational craft

A) ACHIEVEMENTS IN 2008 The recreational craft sector in the Republic of Croatia is fully in line with Directive 94/25/EC and is ready to accede to the ACAA. The Croatian Register of Shipping, which is a conformity assessment body accredited by the Croatian Accreditation Agency, issued 36 conformity assessment certificates up to 1 October 2009 (35 Module Aa and 1 Module G). Data on certificates issued by notified bodies in the EU in the same period are not available. Since type-approvals issued under former rules ceased to apply on 1 January 2008, all newly-produced craft placed on the market in the Republic of Croatia after this date must be in line with the provisions of Directive 94/25/EC. Croatian producers must duly complete the Declaration of Conformity, as displayed at the time of registration in harbourmaster’s offices and branch offices. The Association of Small Shipbuilders, which brings together the producers of recreational craft within the Croatian Chamber of Economy, organises an annual lecture on the application of the Directive, with a view to providing further training for producers. A representative of the Republic of Croatia regularly attends sessions of the ADCO Group as an observer (Brussels, 20-21 February 2008, Paris, 16-17 October 2008).

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B) KEY PRIORITIES If conditions are met (signing the ACAA), the participation of representatives of the Republic of Croatia in the work of the Standing Committee is planned, as is the participation of representatives of the Croatian notified body in the work of the Recreational Craft Sectoral Group. After the conclusion of the ACAA, the Republic of Croatia will inform the EC that the Croatian Register of Shipping is to be the notified body for the recreational craft sector. By the end of 2008, it is expected that the Croatian Standards Institute will complete the procedure of adopting the remaining standards relevant to the recreational craft sector. The Republic of Croatia will continue to participate in the work of the ADCO Group.

3.1.3.18. Cableway installations designed to carry persons

A) ACHIEVEMENTS IN 2008 In accordance with its competence for the field of cableway installations and the Act on Cableway Installations Designed to Carry Persons (OG 79/07), which was adopted by the Croatian Parliament on 13 July 2007, the Ministry of the Sea, Transport and Infrastructure proceeded to draw up subordinate legislation, as envisaged by the above Act. The ordinances will be completely aligned with New Approach Directive 2000/9/EC, Cableway installations designed to carry persons. In the course of drawing up these ordinances and the plan of ordinances envisaged for 2008, an eminent group of experts in the field of cableway installations, i.e. members of working groups for drawing up the ordinances, concluded that it was necessary to merge several ordinances into a single one. In drawing up the ordinances, the working group concluded that, in view of the scope and complexity of the subject matter dealing with transport by cableway installations, it would be necessary to merge some ordinances, which overlap in the field of their application, into a single ordinance, in order to facilitate implementation. Consequently, the following ordinances: Ordinance on cableway infrastructure; Ordinance on cables for cableway installations; Ordinance on cableway propulsion, braking and mechanical and electrical devices; Ordinance on vehicles and towing devices; Ordinance on safety components of cableways; Ordinance on the maintenance and control of safety of cableway installations (not envisaged in the NPAEU) Was merged into the: Ordinance on the technical standards for cableway installations designed to carry persons (OG 155/08)

It should be noted that the Ordinance on the equipment of cableway stations is not envisaged in the NPAEU for 2008, but it will be included in the ordinance which will be the product of the merger. As planned in the NPAEU for 2008, Ordinance on the content, manner of conducting and form of safety analyses and safety reports for cableways was adopted in OG 155/08.

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Ordinance on the procedure of conformity assessment, the content and appearance of the declaration of conformity and the appearance of the conformity marking for safety components and subsystems of cableways is planned for the first quarter of 2009. The publication of these ordinances will result in full alignment with EU legislation. Work on accepting European standards as Croatian standards in the HZN/TO 515 is also complete. B) KEY PRIORITIES In 2009 there is still an outstanding obligation to draw up ordinances, as prescribed in the Act on Cableway Installations Designed to Carry Persons, envisaged in the plan for 2009. In 2009 and 2010, efforts will be made to strengthen further the administrative and institutional capacities of the services responsible for monitoring the implementation of Directive 2000/9/EC, and to continue participation in the work of the Standing Committee on Cableway Installations at the EC. In view of the fact that the Ministry of the Sea, Transport and Infrastructure adopted the Regulation on the internal organisation of the Ministry in May 2008, which envisages the formation of the Section for Cableway Installations Designed to Carry Persons in the Department for Rail Transport Safety with the Rail Transport Directorate, and the Department for the Inspection of Cableway Installations Designed to Carry Persons in the Service for Rail Transport and Cableway Safety Inspection with the Directorate for Transport Inspection, the systematisation includes the recruitment of 4 new employees in the Section for Cableway Installations Designed to Carry Persons, and the recruitment of 2 inspectors in the field of cableway installations designed to carry persons. In 2009, the recruitment is planned of an employee in the Section for Cableway Installations Designed to Carry Persons, and an inspector in the Department for the Inspection of Cableway Installations Designed to Carry Persons.

3.1.3.19. Construction products

A) ACHIEVEMENTS IN 2008 According to the plan for aligning key regulations with the acquis communautaire for Chapter 1: Free Movement of Goods, the Ministry of Environmental Protection, Physical Planning and Construction assumed the obligation to draw up the following by the end of the third quarter of 2008: The Proposal of the Construction Products Act, to be submitted to the Government of the Republic of Croatia for further procedure; the Proposal of the above Act was submitted for procedure within time and was published in the Official Gazette (86/08); The Ordinance on the conformity assessment, conformity documents and marking of construction products; this ordinance was adopted within time and published in the Official Gazette (103/08); The Ordinance on technical approvals for construction products; this ordinance was adopted within time and published in the Official Gazette (103/08); The Ordinance on the inspection of construction products; this ordinance was adopted within time and published in the Official Gazette (113/08); The Technical regulation for steel constructions; this ordinance was adopted within time and published in the Official Gazette (112/08). B) KEY PRIORITIES The adoption is planned of the Technical Regulation for composite steel-concrete structures, based on Article 19 of the Physical Planning and Construction Act (OG 76/07).

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and regulations on information society services lays down the formal notification procedure with respect to the World Trade Organization (WTO) and will be applied upon the entry into force of the Regulation with respect to the EU. Notification procedures Regulation on formal notification procedures in the field of standards. Market surveillance in the field of medical devices is conducted by the pharmaceutical inspectorate of the Ministry of Health and Social Welfare. It is also planned to adopt the Ordinance on monitoring adverse events linked to medical devices. and regulations on information society services As part of the process of aligning Croatian technical legislation with EU legislation. technical regulations and conformity assessment procedures. the plan is to proceed with measures aimed at strengthening further administrative capacities in the field. placing on the market. technical regulations and conformity assessment procedures. 3.1. which should serve to achieve alignment with Directive 2003/32/EC of 23 April 2003 introducing detailed specifications as regards the requirements laid down in Council Directive 93/42/EEC with respect to medical devices manufactured using tissues of animal origin. and regulations on information society services. essential requirements. at its session of 20 June 2008 the Government of the Republic of Croatia adopted the Regulation on formal notification procedures in the field of standards.2009 The implementation of Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws.4.3. the Medical Devices Act (OG 67/08) was adopted. Medical devices A) ACHIEVEMENTS IN 2008 In 2008. B) KEY PRIORITIES In 2009. 160 . conformity assessment procedures and the register of medical devices. which will enter into force upon the entry of the Republic of Croatia to the EU.1. The Regulation was published in the Official Gazette of the Republic of Croatia (73/08) dated 26 June 2008 and entered into force on the date of its publication in the Official Gazette (other than those provisions which will enter into force upon the accession of the Republic of Croatia to the European Union). transposing into Croatian legislation the provisions of Directive 2000/70/ EC of the European Parliament and of the Council of 16 November 2000 and Commission Directive 2005/50/EC of 11 August 2005. In 2009. Procedural matters 3. 3. it is planned to adopt the Ordinance on classification..1. regulations and administrative provisions of the Member States relating to construction products is planned in the part concerning the application of construction products for composite steel-concrete structures.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Regulation on formal notification procedures in the field of standards. Directive 84/539/EEC of 17 September 1984 relating to electro-medical equipment and Directive 2003/12/EC of 3 February 2003 on the reclassification of breast implants.4. technical regulations and conformity assessment procedures.1.20.

competent authorities. All state administration bodies must notify the competent bodies of the WTO and the EU before submitting any regulation for procedure to the Government of the Republic of Croatia (through the Central Contact Point set up in the Ministry of the Economy. and regulations on information society services with respect to the EU. has the duty to notify the competent authority in the EU of the proposed regulation being prepared (as part of the notification procedure with respect to the EU) or the competent authority of the WTO (as part of the notification procedure related to the WTO/TBT and WTO/SPS). amending Directive 98/34/EC. Labour and Entrepreneurship). In accordance with the provisions of the Regulation concerned. data on products and/or services included in the regulation being prepared. and the manner of co-operation with economic operators. In the notification of a regulation submitted to the Central Contact Point. and Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998. before submitting it for regular procedure to the Government of the Republic of Croatia. the conformity assessment procedure. by using the form prescribed by the minister of the central state administration body competent for the economy. POLITICAL CRITERIA By regulating notification procedures in the field of standards. viz: Notification of technical regulations and information society services with respect to the EU. Contact Point (CP) for the operative implementation of notification procedures with respect to the EU and the implementation of notification procedures related to the WTO/TBT Agreement (Agreement on Technical Barriers to Trade) in the field of standardisation. this Regulation serves to align Croatian legislation with Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998. data on the person in charge of contacts. contact points. the competent authorities must state the following: the legal grounds for drawing up the regulation.e. 161 . The Central Contact Point co-operates. of any regulation within their competence. The Central Contact Point then notifies the authority competent for the regulation of the period during which it may not publish the regulation. The national standardising authority will keep the Central Contact Point notified of any standards subject to notification procedures with respect to the EU. Who is in charge of the notification procedure.e. which is active within the central state administration body in charge of agriculture. within the meaning of this Regulation? The notification procedure in the field of technical regulations is conducted by the Central Contact Point (CCP) within the central state administration body in charge of the economy. which relate to the said products or services.I. i. co-ordinates and is competent for the work of two contact points: Contact Point (CP) for the operative implementation of notification procedures related to the WTO/SPS Agreement (Agreement on the Application of Sanitary and Phytosanitary Measures). data on the international or European standards. the goals and reasons for drawing up the regulation. The state administration body competent for the economy. European directives or recommendations which form the basis for the regulation. which operates within the national standardisation body of the Republic of Croatia (HZN). technical regulations and conformity assessment procedures. in line with EU and WTO rules. and an opinion on whether the proposed regulation should be subject to notification procedure. laying down a procedure for the provision of information in the field of technical standards and regulations. The rules of procedure to be adopted by the minister of the central body of state administration in charge of the economy will lay down the manner of conduct and co-operation among the Central Contact Point. i. the competent authorities of state administration drawing up technical regulations have the duty to notify the competent state administration body (MELE). as the Central Contact Point. Notification of technical regulations related to the WTO/TBT Agreement (Agreement on Technical Barriers to Trade).

the competent body will postpone the adoption of the regulation for a period of six months from the date on which the EC received the notification. and regulations on information society services. If.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . regulation or decision proposed to the Council of the European Union. regulation or decision in the field concerned. If. proposing amendments to the disputed proposal. along with the regulation. The notification is published in the Official Gazette. If the competent body in the Republic of Croatia is of the opinion that the proposed regulation may result in unjustified barriers to international trade.2009 As soon as the competent authority publishes the regulation. concerning regulations being prepared. and the reasons for non-acceptance. the EC or any other EU Member State issues an reasoned opinion that the proposed regulation may pose barriers to free movement of goods on the internal market. The WTO Secretariat forwards the notifications of WTO member states. The Central Contact Point receives requests. it must not adopt the said regulation. Notification procedures under the WTO/SPS Agreement Notification procedures under the WTO/SPS Agreement are conducted according to the same procedure as the notification procedures under the WTO/TBT. to the Permanent Mission of the Republic of Croatia to the United Nations in Geneva. or if it establishes that the proposed regulation relates to a subject dealt with in a proposal of a directive. that. which then forwards them to the Central Contact Point. all provisions on the notification procedure in the field of standards. it must state. Notification procedure under the WTO/TBT Agreement The Central Contact Point notifies the WTO Secretariat of the proposed regulation through the Permanent Mission of the Republic of Croatia to the United Nations and notifies the competent authority in the Republic of Croatia that. providing an explanation of the reasons for adopting the regulation. opinions and written observations from the WTO and its member states concerning the proposed regulation and submits them to the competent authority in the Republic of Croatia. in accordance with the Regulation on formal notification procedures in the field of standards. the EC announces that it intends to propose or publish a directive. for a period of at least three months from the date on which the WTO Secretariat received the notification. in the procedure of its adoption. and will then review the observations and incorporate them in the new proposal of the regulation. technical regulations and conformity assessment procedures. should that be the case. it must notify the Central Contact Point and provide an explanation of its opinion. the competent state administra- 162 . within three months of the date on which it received the notification. within three months of the date on which the EC received the notification of the proposed regulation. and regulations on information society services have been applied. from which it is evident whether the observations will be accepted fully or partly. and the Central Contact Point forwards them to the competent state administration body in the Republic of Croatia. The Central Contact Point will forward the reply promptly to the WTO member state which submitted the request or issued a written observation concerning the proposed regulation. Notification procedures with respect to the EU The competent state administration body drawing up the regulation forwards the proposed regulation to the EC through the Central Contact Point. which must issue a statement. technical regulations and conformity assessment procedures. The competent body in the Republic of Croatia may propose an extension of the period within which another WTO member state may not adopt the regulation concerned. The competent body must observe a standstill period of at least three months from the date the EC received the notification before adopting the technical regulation.

technical regulations and conformity assessment procedures. that is.4. and regulations on information society services. Observations on the proposals of national regulations concerning possible barriers to trade must be delivered within three months of the date on which the Central Contact Point receives the proposed regulation. within that period. If. Implementation measures The Draft Manual for work procedures at the border. and if the European directive. regulation or decision is published within that period. measures aligning legislation with the acquis have continued as planned in this Chapter. The Central Contact Point notifies the competent body in the Republic of Croatia on notifications received concerning regulations proposed by EU Member States. their national standardising bodies.1. which is necessary for the implementation of higher standards in work at external borders. regulation or decision is not published. Positive effects of the implementation of the Regulation on formal notification procedures in the field of standards. the national regulation may be published. Implementation measures By the end of 2009. the European directive. the publication of the national regulation must be abandoned and alignment of national legislation with the new European legislation must be conducted.2. POLITICAL CRITERIA tion body must postpone the adoption of the proposal for a period of twelve months from the date on which the EC received the notification. Through the establishment of a network of contacts with the business community and exporters and through dissemination of information. was completed as planned. technical regulations and conformity assessment procedures. 163 . the Republic of Croatia will have an opportunity to express its opinions concerning proposals for national regulations made by other EU Member States and signatories of the WTO/ TBT and WTO/SPS Agreements. thus enabling the effective implementation of Regulation 339/93. it is planned to set up a joint system for the maintenance of statistical data gathered by all agencies working at external borders. Checks at external borders A) ACHIEVEMENTS IN 2008 Legislative measures As the legal framework for the work of the Customs Directorate at external borders is subject to Chapter 29: Customs Union. 3. Croatian businesspersons have the opportunity to acquaint themselves with the new national regulations of other states before they are actually published. and regulations on information society services As the result of implementing the Regulation on formal notification procedures in the field of standards.I. measures aligning legislation with the acquis have continued as planned in this Chapter. The standstill period may be extended to eighteen months if the Council of the EU accepts the common standpoint that it is necessary to harmonise the field in question. They can benefit greatly from the procedure if they take advantage of the opportunity offered and react on time to prevent unnecessary barriers to the free movement of goods. B) KEY PRIORITIES Legislative measures As the legal framework for the work of the Customs Directorate at external borders is subject to Chapter 29: Customs Union.

which has applied since 1 September 2007: Ordinance on the format of documents.1. misdemeanour and criminal procedures and weapons surrendered to the Ministry of the Interior (OG 49/08 of 29 April 2008). and the forms and methods to be used to keep weapons and ammunition records (OG 33/08 of 21 March 2008). 3. in the case of products imported from third countries. that is. Ordinance on the type and permitted calibres of sport weapons (OG 35/2008 of 28 March 2008).4. B) KEY PRIORITIES In 2009. Their Parts and Components and Ammunition. the strengthening of administrative capacity will continue. amongst others. will serve to define co-operation with the Customs Directorate in the field of surveillance of technical products. the State Inspectorate. Ordinance on the type and permitted calibres of self-defence weapons (OG 33/08 of 21 March 2008). supplementing the United Nations Convention against Transnational Organised Crime.2009 In the course of 2009. which is currently being implemented. and with the Protocol against Illicit Manufacturing and Trafficking in Firearms. repair and modification of weapons and management of civilian shooting ranges (OG 69/08 of 13 June 2008). and which was signed by the State Inspectorate and the MF.3 Control of the acquisition and possession of weapons A) ACHIEVEMENTS IN 2008 The legal framework in this sector includes the Weapons Act (OG 63/2007).4. which entered into force on 3 May 2006. Ordinance on the manner of disposing of weapons and ammunition seized during administrative. in connection with implementing efficiently in the future Council Regulation (EEC) No 339/93 of 8 February 1993 on checks for conformity with the rules on product safety.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Customs Directorate. Free movement of cultural property A) ACHIEVEMENTS IN 2008 164 . co-operation will continue.1.4. in terms of the market surveillance of technical products. in line with European practice. The following implementing regulations were adopted in 2008. activities within the PHARE 2005 project entitled “Market Surveillance System in the Field of Technical Products”. Ordinance on the procedure and means of disabling firearms (OG 86/08 of 23 July 2008). will continue to strengthen co-operation with the Customs Directorate. Under the Agreement on Co-operation concerning Integrated Border Management. through the training of current staff and the recruitment of new staff. Ordinance on special conditions for the production and placement of and trade in weapons and ammunition. At the same time. Ordinance on the conduct of police officers during the procedure of issuing approval to a natural person for the acquisition of a weapon (OG 33/08 of 21 March 2008). pursuant to the Weapons Act (OG 63/07). which is aligned with Council Directive 91/477/EEC of 18 June 1991 on controlling the acquisition and possession of weapons. 3.

according to the standards and practice of the EU. 165 . POLITICAL CRITERIA The free movement of cultural property (cultural objects) in the Republic of Croatia is regulated by the Act on the Protection and Preservation of Cultural Objects (OG 69/99. a new conservation department was formed. which are in line with EU legislation and standards. and the Directorate for the Protection of Cultural Heritage now has 279 employees. All conditions necessary for the export of cultural objects have been created. has been achieved.I. Further implementation of legislation and ordinances. The appropriate administrative and organisational strengthening of the Directorate for the Protection of Cultural Heritage. and 157/03) and the Ordinance on the conditions for issuing licences for the export and movement of cultural objects from the Republic of Croatia (OG 141/06). B) KEY PRIORITIES Further administrative strengthening of the conservation service. 151/03. In 2008. which is in charge of the implementation of such regulations.

the International Organisation for Migration and the Croatian Employment Service have established the Migration Information Centre at the Zagreb branch office. they must obtain a temporary stay permit. where they were acquainted with the obligations of EU Member States in respect of EURES and the manner of adjustment of their public employment service to EURES requirements.2. through which they are acquainted with examples of best practice in EU Member States. EURES As regards the preparations of the Croatian Employment Service for access to the labour market within the framework of EURES. which.2009 3. an analysis is currently being carried out of the CES’s business procedures relating to services for employers and unemployed persons. the Republic of Croatia only has employment agreements with the Federal Republic of Germany and the Republic of Slovenia. In the Republic of Croatia. Pursuant to this Act.2. which will enter into force on the date of accession of the Republic of Croatia to the European Union. the employment mediation procedure involving these employers was standardised in March 2008. taking into account the EURES Charter. i. unless otherwise specified by the Aliens Act.1. among other things. official contacts are maintained with EURES managers and advisers. representatives of the Croatian Employment Services undertook a study visit to Bulgaria. governs the employment of aliens. The organisational scheme of the CES is also being gradually adjusted and its human resources strengthened as regards services relating to the mobility and free movement of labour. Staff from the Croatian Employment Service participate in international seminars and study visits on EURES topics.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . as part of the AENEAS Project. regarding the methodology of work in the field of the mobility and free movement of workers. before beginning to work. aliens may work on the basis of a work or business permit and. FREEDOM OF MOVEMENT FOR WORKERS 3. currently. on the right of citizens of the Union and their family members to move and reside freely within the territory of Member States. normative prerequisites were established for the direct application of the Regulations in this area. but the Croatian Employment Service is making efforts to provide job mediation services for Croatian citizens in other countries too. a section for EURES and international mediation is currently being established. in July 2008 the new Act on Employment Mediation and Unemployment Rights (OG 80/08) was passed. In this respect. the new Aliens Act (OG 79/07) has been applied. which was aligned with Directive 2004/38/EC of the European Parliament and of the Council of 29 April 2004. with the exception of the provisions prescribing the same rights for European Union nationals and Croatian citizens. aliens are guaranteed the same level 166 . Access to the labour market A) ACHIEVEMENTS IN 2008 In order to ensure that European Union nationals have the same rights as Croatian citizens. In parallel with this.e. and its head is about to be appointed. The Act will enter into force on 1 January 2009. a document of the European Co-ordination Office regulating the implementation of activities within the framework of co-operation with EURES. With the aim of improving the quality of services offered to foreign employers with whom no employment mediation contracts have been concluded in the transitional period. for the purpose of organising seminars on the subject of labour mobility in the Republic of Croatia. Since 1 January 2008. up to inclusion in the EURES network. the following activities have been undertaken: in November 2007. By virtue of the Act.

the Croatian Chamber of Economy. The Ministry of the Economy. Certain categories of aliens may work in Croatia on the basis of a work permit issued outside the annual quota for work permits. scientists participating in professional training. aliens who have the status of a regular pupil or student in the Republic of Croatia. the Croatian Chamber of Trades and Crafts. activities and professions where employment is permitted are specified. 167 . according to the Marrakesh Agreement. aliens engaged in activities related to the assembly. etc. The Aliens Act also specifies the categories of aliens who may work without a work or business permit up to 30 days during a year. aliens holding key positions in companies and their branch offices and representative offices. experts in the area of cultural heritage protection. involving both the renewal of work permits already issued and the issuance of permits for new employment. new equipment and modern technology. as is the number of work permits for each of these activities and professions. accredited correspondents or reporters of foreign media. shipbuilding − 1. collective agreements and arbitration awards. POLITICAL CRITERIA of rights in relation to the conditions of employment and work. and representatives of social partners. aliens who have been granted asylum. Work permits are issued to aliens by competent police administrations or police stations of the Ministry of the Interior. pursuant to the Decision on setting the annual quota for work permits granted to aliens for the relevant calendar year. native speakers of foreign languages. the total quota for the calendar year 2008 was 10. which lays down the requirements aliens must meet in order to obtain approval from the competent office. The requirements for obtaining a business permit have been changed in that now a business permit may only be issued to an alien on the basis of approval by the state administrative office responsible for economic affairs or by the state administrative office responsible for the activity pursued by the alien. delivery or servicing of machinery or equipment.242 work permits. IT services − 25. representatives of religious communities. civilian and military government officials from other countries participating in projects undertaken with the Republic of Croatia. The Act has broadened the category of aliens who may work in Croatia without a work or business permit on the ground that they have regulated their status in Croatia (aliens who have been granted permanent stay. Labour and Entrepreneurship has issued the Ordinance on the procedure for granting approvals (OG 26/08).I. aliens transferred as part of internal staff transfers within companies. boost job creation and employ local labour. which is linked to the foreign employer in organisational terms. an alien on permanent stay or an asylum seeker. as laid down by the Croatian labour legislation. on the basis of opinions received from the Croatian Employment Service.330. an alien − the founder of a company or a trader or craftsman who has registered a business activity in Croatia − must prove that their business operations would benefit the Croatian economy. teachers teaching in the language and script of a national minority.700. aliens who have been granted temporary stay for the purpose of scientific research. aliens who have been granted an autonomous approval for stay in the Republic of Croatia). aliens who have been granted temporary stay for the purpose of family reunification with a Croatian national. These are: aliens providing services in tourism. transport − 118. university professors. Thus. Most of these permits were approved for the following industrial activities: construction industry − 5. that they would introduce new production processes. A proposal for an annual quota for work permits is drawn up by the ministry responsible for labour. workers and their family members whose status has been regulated by the Stabilisation and Association Agreement. on the basis of an international agreement. Within the annual quota for work permits. These are: daily migrants. key personnel. science and education − 32. health services − 25. human trafficking victims. culture − 21. A quota for seasonal employment may also be stipulated. procurators. Pursuant to the Decision on setting the annual quota for work permits for the calendar year 2008 (OG 130/07) and the Decision on amendments to the Decision on setting the annual quota for work permits for the calendar year 2008 (OG 106/08). aliens attending professional training in a legal entity based in the Republic of Croatia. management and supervisory board members of a company. The Croatian Government determines an annual quota for work permits no later than 31 October of the current year for the following year. tourism and catering − 285. manufacturing industry − 106.

which have been concluded between the Republic of Croatia and the European Union. The Ordinance lays down the methods for determining the requirements for stay of nationals of EEA member states and their family members. and on new social security agreements which Croatia has concluded as an independent state. 168 . The legal framework for social security and. their family members and family members of Croatian nationals. B) KEY PRIORITIES Work will continue on strengthening the administrative capacity by organising training for the existing staff and by filling newly established posts. which correspond to the principles contained in European Regulations on the co-ordination of social security systems.2. and by Regulation 574/72. the sojourn card for family members of nationals of EEA members states. The administrative capacity of the Ministry of the Interior is being strengthened by organising staff training and by adding three more posts in the job classification for the Section for Status Issues of Aliens in the Ministry’s headquarters. The Ordinance on methods for determining the requirements to be met by nationals of European Economic Area member states and their family members and by family members of Croatian nationals applying for entry into and stay in the Republic of Croatia (OG 62/08) was issued on the basis of the Aliens Act.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The provisions of Titles XI and XII will enter into force on the day of accession of the Republic of Croatia to the European Union. The agreements are mostly based on the principle of insurance. which is the basic regulation of European social security legislation. based on old social security conventions applied by the Republic of Croatia under the provisions of the Vienna Convention on Succession of States in Respect of Treaties. unemployment insurance and family benefits. Pursuant to the provisions of Title XI. the form and content of the application used to register temporary stay by nationals of EEA member states. and also to their family members. other states or international organisations). 3. Currently. the Republic of Croatia co-ordinates its social security system with 24 states. stay and work of third-country nationals who have been granted permanent stay in another EEA member state and their family members. and the content and methods of keeping data registers. The aforesaid Titles of the Aliens Act have been aligned with Council Directive 2004/38 of 2 April 2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States and with Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals who are long-term residents. while a special chapter in Title XII regulates the entry. which contains procedural provisions for the application of Regulation 1408/7. and who are only obliged to regulate their temporary stay for work purposes (volunteers working in non-profit associations and institutions.2009 There is a special category of aliens who are exempted from the Aliens Act’s provisions governing the issuance of work or business permits. the approval for permanent stay granted to nationals of EEA members states and their family members. nationals of EEA member states wishing to work in Croatia do not need a work or business permit. which means that they apply to all persons who are or were covered by the laws of the contracting party. The application of the Ordinance will also begin after the date of accession of the Republic of Croatia to the European Union. 16 of which are EU Member States. They are based on generally accepted European principles. is provided by bilateral social security agreements aimed at co-ordinating the social security systems of contracting states in these areas. aliens working on the basis of international agreements on expert and technical assistance. A chapter in Title XI of the Aliens Act regulates the entry. stay and work of nationals of the European Economic Area (EEA) member states. for free movement of workers. specifically. that is. all branches of social security covered by Regulation 1407/8.2. health insurance. Co-ordination of social security systems Croatian social security legislation covers pension insurance.

the competent authorities are still the Ministry of the Economy. and measures will be undertaken to reinforce administrative capacity. The European Health Insurance Card replaced the forms that had previously been used. which was identified as one of the key priorities in the amended Decision on the Accession Partnership.I. no longer be the case after Croatia becomes a full member of the EU. In this respect. the Ministry of Health and Social Welfare and the Ministry of Family. since the planned progress has not been achieved. In the forthcoming period. POLITICAL CRITERIA Regarding the institutional framework for the co-ordination of social insurance and/or social security systems. which will. provided that they are entitled to obtain the status of an insured person on the grounds of employment. and the development of the skills necessary to take part in the preparation of regulations. The Compulsory Health Insurance Act (OG 85/08) stipulates that aliens who have been approved permanent stay exercise the right to compulsory health insurance under the same conditions as Croatian nationals with permanent residence in the Republic of Croatia. further developments concerning public administration reform will continue to be monitored. The amended Decision on the Accession Partnership of 5 February 2008 repeats this. nationals of the aforesaid countries are entitled to receive health care services directly from health institutions and private health practitioners in a contractual relationship with the Croatian Institute for Health Insurance. the Croatian Institute for Occupational Health and Safety Health Insurance. These changes were made as far back as 2007. the Czech Republic (2005) and the Republic of Hungary (2006). and that sufficient administrative capacity for co-ordination of social security systems has not yet been developed. Labour and Entrepreneurship. Veterans’ Affairs and Intergenerational Solidarity. Thus. while the Croatian Pension Insurance Institute. however. and the Croatian Employment Service are the competent institutions. the Republic of Croatia has concluded the Arrangements on the Use of the European Health Insurance Card with the Republic of Slovenia (2004). Aliens who have not been approved permanent stay exercise the right to basic health insurance and health care pursuant to the Act on the Health Care of Aliens in the Republic of Croatia (OG 114/97). self-employment or on similar grounds. A) ACHIEVEMENTS IN 2008 As far as health insurance is concerned. because the relevant legislative adjustments to the regulations covering the status of aliens had been completed in 2007. in particular. So far. as stated in the Common Position − the institutions responsible for implementation have been undertaking activities aimed at reassigning existing staff to special organisational units competent for the co-ordination of social security systems (in particular within the Croatian Pension Insurance Institute which is currently being reorganised). This. pertains to the strengthening of the administrative capacity of state administration bodies in charge of supervising the legality of competent institutions’ activities. the Croatian Institute for Health Insurance. No examples of unequal treatment of aliens can be found in the pension insurance scheme − aliens employed in Croatia are entitled to join this scheme under the same conditions as Croatian nationals. Consequently. aliens who have been approved temporary or permanent stay and who hold a work or business permit. In 2006 the Voluntary Health Insurance Act (OG 85/06) was passed. as was the Occupational Health and Safety Health Insurance Act (OG 85/06). No activities have been undertaken in the course of 2008 regarding the freedom of movement for workers and the position of aliens in the pension insurance scheme. 4. The only area where aliens do not enjoy the same access to pension insurance is the voluntary pension insurance scheme based on individual capitalised savings. When it comes to implementing capacity − which should be strengthened along with the administrative capacity in order to meet the benchmark required to close Chapter 2. enjoy the same rights and have the same obligations as Croatian nationals. the Croatia 2007 Progress Report states in Chapter 4 − Ability to assume the obligations of membership. adding that any discriminatory measures towards EU migrant workers and EU citizens should be abolished (which has already been done through legislative amendments adopted in the preceding period). when two pieces of legislation 169 . as well as for familiarisation with the regulations of the European social acquis communautaire. as has constantly been brought to our attention in the documents of the European Commission. it should be emphasised that efforts to strengthen the administrative capacity for applying the acquis communautaire are closely related to the need to undertake public administration reform. the principal task will continue to be to strengthen the administrative structures for the co-ordination of social security systems. and on the basis of this card.2 − Freedom of movement for workers that there has been no progress on co-ordination of social security systems. to the extent provided for by the relevant bilateral agreements. This will entail the training of existing staff. since access to this insurance scheme is only available to those who have permanent residence.

the Republic of Croatia will be ready to implement the European legislation. since this is the area in which the European legislation will be directly applied. as it was specifically stressed in the Common Position for Chapter 2. i.e. all the legislative activities planned for 2007 were implemented during that year. For this purpose.2009 governing the pension insurance scheme based on individual capitalised savings were amended.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The activities aimed at strengthening the administrative capacity and those relating to preparations for the application of the Regulations on the co-ordination of social security systems are underway. a special programme will be drawn up providing for administrative capacity building in the bodies and institutions responsible for implementing social security legislation. plans have been made to pass a new Act on the Health Care of Aliens in the Republic of Croatia. the regulations governing the co-ordination of social security systems. The Republic of Croatia also believes it possible for some other regulations to enter into force before its admission to full membership of the EU. When it comes to pension insurance. as well as bilateral arrangements on the use of the European Health Insurance Card with interested EU member states. Croatia will be fully prepared to implement the regulations on the European Health Insurance Card (Decisions 2003/751/EC. 2003/752/EC and 2003/753/EC) and to enable all its insured persons to use this card. Croatia is willing to conclude agreements on social security with all other interested states. Prior to accession to the EU. The regulation governing the right to child allowance has also been amended to ensure full alignment with the acquis. By the time it joins the European Union. 170 . In addition. B) KEY PRIORITIES As regards health insurance.

A) ACHIEVEMENTS IN 2008 In the course of 2008. The Ordinance also prescribes that from 1 January 2009 the single database shall also include a collection of documents in electronic format identical to the collection of documents in paper format. the Department for the Co-ordination of the Internal Market was set up in July 2005 and started work on 21 November 2005. inter alia.I. on 18 December 2007 the new Ordinance on entry in the court register (OG 134/07) was adopted. inter alia. Within the Trade and Internal Market Directorate of the Ministry of the Economy. a Section for the Development of Services has been set up within the Department for the Co-ordination of the Internal Market. the Ordinance lays down the possibility to submit a request for entry into the court register electronically.3. The Right of Establishment THE COURT REGISTER ACT A) ACHIEVEMENTS IN 2008 On the basis of the Act on the Amendments to the Court Register Act (OG 40/07). Labour and Entrepreneurship is the competent authority for the co-ordination of all activities pertaining to the right of establishment and freedom to provide services.3. Labour and Entrepreneurship gained. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES Horizontal issues The Trade and Internal Market Directorate of the Ministry of the Economy. Labour and Entrepreneurship is to ensure a co-ordination policy and co-operation with ministries and the public sector in the area of the right of establishment and freedom to provide services. The Ordinance. Labour and Entrepreneurship. the administrative capacities of the Department for the Co-ordination of the Internal Market have been strengthened through the recruitment of one new employee − Head of the Section for the Development of Services. On the basis of the Regulation on the internal organisation of the Ministry of the Economy. which entered into force in March 2008. further strengthening of the administrative capacities of the Section for the Development of Services will continue. working out in detail the provisions of the said Act. B) KEY PRIORITIES In the forthcoming period. With the Act on Amendments to the Act on the Organisation and Scope of the Central State Administrative Bodies (OG 27/08). The role of the Ministry of the Economy. Representatives of the said Department participated in the work of the body monitoring the implementation of the Stabilisation and Accession Agreement related to Chapter 3 and took part in technical consultation in Brussels pertaining to the alignment of Croatian legislation with the relevant acquis within this Chapter (Directive 2006/123/EC on services in the internal market. 3.1. 171 . the Ministry of the Economy. and Directive 2005/36/EC on the recognition of professional qualifications). prescribes that the main book should be kept both in paper and electronic formats and that data should be entered on a daily basis into a single database. Labour and Entrepreneurship (OG 41/08). a co-ordinating function in the area of the freedom to provide services. as will co-ordination of all activities pertaining to the completion of alignment with the acquis within Chapter 3 − The Right of Establishment and Freedom to Provide Services. POLITICAL CRITERIA 3. In addition. available from 1 January 2009.

54/05 and 40/07). their family members and family members of Croatian nationals. In the said case. adopted on 3 October 2007 (OG 107/07). INSTITUTIONS ACT A) ACHIEVEMENTS IN 2008 With a view to alignment with the acquis and in order to remove discriminatory provisions against EU Member State nationals. The Act on Amendments to the Companies Act. Zadar and Split. and since the pilot project “online registration” pertains only to limited liability companies. Furthermore. According to the provisions of this Title. sojourn and work of nationals of the member states of the European Economic Area. it can be concluded that it is running with success. while 21% were registered in paper form. The pilot project under the working title “online registration” began on 30 October 2007 and. prescribes that aliens may be employed in the Republic of Croatia on the basis of a work or business permit. A special chapter of Title XI of the Act regulates the entry. these have to be specific services connected to high technology. These provisions (Title XI) will enter into force on the day of the accession of the Republic of Croatia to the European Union. IT equipment has been delivered to all commercial courts and the application for scanning document collections has been completed. The said pilot project is currently being expanded to the commercial courts in Osijek. In other words. a business permit is issued for up to 6 months in a year with prior approval of the state office competent for the activity in which the service is to be provided. in force since 1 January 2008. In accordance with the Court Register Act and the Ordinance on entry in the court register. the deadline for the implementation of electronic communication with the court and the building of the collection of documents is 1 January 2009. ALIENS ACT A) ACHIEVEMENTS IN 2008 The Aliens Act (OG 79/07). and that the foreign employer has concluded a contract with a company in the Republic of Croatia. except for the provisions of Article 142. which will enter into force on the day of the accession of the Republic of Croatia to the European Union. For the purpose of building the electronic collection of register documents in accordance with the Court Register Act (OG 1/95. According to the Aliens Act. while 78 entities were set up in the conventional way. a business permit may be issued to aliens who provide services on condition that they are employed with a foreign employer and have appropriate qualifications. These data pertain to all establishments. 45/99. the Act on Amendments to the Institutions Act was adopted on 14 March 2008 (OG 35/08). From 1 January 2008 to 1 September 2008. entered into force on 1 April 2008. EEA nationals do not need a work or business permit to work and provide services in Croatia. 292 entities were set up via online registration at the Commercial Court in Varaždin. in accordance with the Instruction on the amendments to the Instruction on the conditions and manner of establishing electronic communication with the Registry Court for the purpose of registering a limited liability company in the court register (OG 62/08). and in accordance with the Ordinance on granting approval (OG 26/08). and the Republic of Croatia must have an interest in the supply of these services. 57/96. 172 .2009 The Instruction on the conditions and manner of establishing electronic communication with the Registry Court for the purpose of registering a limited liability company with cash equity capital in the court register regulates the running of a pilot project of registering a limited liability company with cash equity capital in the court register of the Commercial Court in Varaždin. will continue until 31 December 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 79% of companies were entered into the court register electronically. The new application of the central court register database became operational on 14 April 2008.

The Act on Amendments to the Health Care Act (OG 117/08) has removed the restrictions for EU nationals in terms of taking the state professional examination and the requirement of knowledge of the Croatian language. SERVICES IN THE HEALTH SECTOR A) ACHIEVEMENTS IN 2008 In the process of alignment with EU legislation. the Republic of Croatia has initiated changes in the area of health care in line with the principles set out in Articles 43 and 49 of the Treaty establishing the European Community. The Act enables foreign legal professionals from EU Member States to conduct the legal profession in the Republic of Croatia in the same manner as they conduct the profession in their home countries. the Act on Amendments to the Dental Care Act (OG 117/08). The Midwifery Act (OG 120/08) regulates the profession of midwives in accordance with competencies in line with EU regulations. 3. the Act on Amendments to the Act on Pharmacy (OG 117/08). The Act on the Legal Profession is aligned with the provisions of Directive 77/249/EEC of 22 March 1977 and Directive 98/5/EC of 16 February 1998 which pertain exclusively to the legal status of legal professionals in the cross-border provision of legal services. 173 . foreign law firms may set up local offices in the Republic of Croatia. and the Act on the Amendments to the Act on Medical Biochemical Practice (OG 117/08).I. the Act on Amendments to the Nursing Act (OG 117/08). This Ordinance will also apply from the day of the accession of the Republic of Croatia to the European Union. B) KEY PRIORITIES Strengthening of administrative capacities will be continued through the provision of training to existing employees and the recruitment of new ones for the newly-established posts. The provisions of this Act pertaining to the status of foreign legal professionals in the Republic of Croatia will apply from the day of the accession of the Republic of Croatia to the European Union. POLITICAL CRITERIA On the basis of the Aliens Act. The following legislation has also been adopted: the Act on Amendments to the Act on Medical Practice (OG 117/08). and with the conditions for the cross-border provision of legal services.3. the Ordinance on the manner of establishing conditions for the entry and sojourn in the Republic of Croatia of nationals of the member states of the European Economic Area and their family members and family members of Croatian nationals (OG 62/08) has been adopted.2. The said amendments have removed the restrictions for EU nationals in terms of taking the state professional examination and the knowledge of the Croatian language. Freedom to Provide Cross-Border Services SERVICES IN THE JUDICIARY A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on the Legal Profession (OG 117/08) completed the alignment of the legislative framework regulating the legal profession in the Republic of Croatia with the position of the legal profession in the European Union. According to this Act.

and the Act on Tourist Board Memberships have been enacted in the Croatian Parliament on 15 December 2008. Ordinance on the state professional examination for tourist guides and the examination programme for tourist escorts (OG 50/08 and 120/08). The Act on Tourist Boards and the Promotion of Croatian Tourism. Ordinance on the form. on the basis of the Act on the Provision of Tourism Services (OG 68/07). in the course of 2008 the following ordinances were adopted: Ordinance on the provision of hospitality and catering services in a rural household (OG 5/08). content and manner of keeping the guestbook and guest list (OG 5/08). minimum requirements and categorisation of other types of accommodation facilities from the category “Camps and other types of accommodation facilities” (OG 49/08). The Act passed its first reading in September 2008. Ordinance on the form. Ordinance on the tourist guide identification document (OG 50/08 and 90/08). and Ordinance on the list of tourist areas (sites) by counties (OG 76/08). B) KEY PRIORITIES Depending on the date of the enactment of the new regulations governing the system of tourist boards. minimum requirements and categorisation of catering facilities in camps from the category “Camps and other types of accommodation facilities” (OG 75/08). Ordinance on the classification and categorisation of nautical tourism ports (OG 72/08). the following ordinances were adopted: Ordinance on the form. one of the conditions for the provision of catering and tourism services by natural persons (“citizens”) used to be Croatian citizenship. Ordinance on the Tourist Guide Register (OG 50/08). 174 . By adopting these ordinances. the Sojourn Tax Act. On 5 December 2008. the Government of the Republic of Croatia adopted the Final Proposal of the Act and submitted it to the Croatian Parliament for parliamentary procedure. content and manner of keeping the book of complaints (OG 5/08). In fact. Ordinance on the Register of the contracts on tourist representation for tourist agencies (OG 30/08). In the course of 2008. all subordinate legislation necessary for their implementation is planned to be adopted in 2009. content and manner of keeping the book of complaints (OG 5/08). Ordinance on the classification. The non-alignment of the said Acts pertained to the remaining obstacles in terms of the freedom to provide cross-border services (the principle of non-discrimination − Article 12 of the Treaty establishing the European Community) in the part referring to the provision of services by natural persons (“citizens”). the Minister of Tourism has enacted all the subordinate legislation he is authorised to enact on the basis of the Act on the Provision of Tourism Services. Ordinance on the types and categories of nautical tourism vessels (OG 69/08). Ordinance on the state professional examination for tourist office manager (OG 50/08). PRIVATE SECURITY SERVICES AND HUMANITARIAN MINE CLEARANCE A) ACHIEVEMENTS IN 2008 The Private Detectives Act is currently under parliamentary procedure. Ordinance on the Travel Agencies Register (OG 30/08). the Minister of Tourism has enacted all the subordinate legislation he is authorised to enact on the basis of the Hospitality and Catering Industry Act. Ordinance on the registers of catering facilities and on the registers of the provision of hospitality and catering services in households and rural households (OG 5/08). With the adoption of the said acts and implementing regulations.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . alignment has been achieved with the acquis in terms of the principles set out in Articles 43 and 49 of the Treaty establishing the European Community. planned for 2008. Ordinance on the classification. By adopting these ordinances.2009 SERVICES IN TOURISM A) ACHIEVEMENTS IN 2008 On the basis of the Act on the Provision of Tourism Services (OG 138/06).

The adoption of the implementing regulation (Ordinance on the conditions under which nationals of EU Member States may conduct veterinary activities in the Republic of Croatia) is planned for the fourth quarter of 2008. Considering that for alignment with the acquis in this area it is necessary to adopt an umbrella act on the recognition of foreign professional qualifications within the meaning of this Directive. and knowledge of the Croatian language and the Latin script are no longer required. the Government of the Republic of Croatia also adopted the Draft Proposal of the Act on Amendments to the Act on Humanitarian Mine Clearance and submitted it for parliamentary procedure. At the session of 5 December 2008. and for this purpose a committee has been set up with the task of drawing up a Draft Proposal aligned with Directive 2005/36/EC on the mutual recognition of professional qualifications. the said implementing regulations will be adopted upon the enactment of the said Act. This has created the legal basis for alignment with the acquis in the field of the provision of veterinary services. B) KEY PRIORITIES Immediately upon the adoption of the umbrella act. and prescribes that a private detective authorised to conduct detective activities by a EU Member State or a signatory country to the Treaty establishing the European Economic Area may conduct detective activities in the Republic of Croatia without the permission of the competent police administration. VETERINARY MEDICINE SERVICES A) ACHIEVEMENTS IN 2008 In April 2007. manner of issue. These provisions will enter into force on the day of the accession of the Republic of Croatia to the European Union. the new Veterinary Act (OG 41/07) introduced the possibility for natural and legal persons registered for conducting veterinary activities in EU Member States to conduct the same activities in the Republic of Croatia under the conditions laid down by the minister. the provisions regulating the work of aliens in the activities of humanitarian mine clearance will be amended with a view to regulating the freedom to provide services in accordance with Article 49 of the Treaty establishing the European Community.I. and the Ordinance on the amendments to the Ordinance on the conditions. POLITICAL CRITERIA The said Act is aligned with the provisions of the Treaty establishing the European Community (Articles 43 and 49). CONSTRUCTION SERVICES A) ACHIEVEMENTS IN 2008 According to the plan to align key regulations with the acquis within Chapter 3. These provisions will enter into force on the day of the accession of the Republic of Croatia to the European Union. extension and revoking of authorisation for veterinarians. in order to issue authorisation for the conducting of activities of a private detective to nationals of EU Member States or signatories to the Treaty establishing the European Economic Area. permanent residence or approved temporary residence in the Republic of Croatia. Physical Planning and Construction had the obligation for the third quarter of 2008 to draft a Proposal of the Act on Architectural and Civil 175 . this body will activate the previously established committee and start the process of drafting and adopting the Ordinance on the conditions under which nationals of EU Member States may conduct veterinary activities in the Republic of Croatia. which will regulate this matter. The Act on Amendments to the Act on Humanitarian Mine Clearance has been enacted in the Croatian Parliament on 15 December 2008 (OG152/08). the Ministry of Environmental Protection. In addition. The administrative capacities of the Veterinary Directorate have been strengthened through the recruitment of 2 employees in the Section for the Organisation of Veterinary Service. According to the proposed amendments to the Act on Humanitarian Mine Clearance (OG 153/05 and 63/07).

Ordinance on internationally recognised systems of certification of the ability to manage projects and training programmes relevant to managing construction projects (2nd quarter 2009).3.2009 Engineering Affairs and Activities in Physical Planning and Construction. The Strategy is a fundamental document laying down the principles and guidelines for the development of the postal services market and national priorities in the preservation and development of postal services. on the basis of a contract concluded with the Ministry of the Sea. the following secondary legislation will be adopted in the course of 2009: Ordinance on the conditions and criteria for granting approval for conducting professional activities of physical planning (3rd quarter 2009). B) KEY PRIORITIES In the second quarter of 2009. Ordinance concerning the granting of approval for conducting activities of construction and other related issues (2nd quarter 2009). and to submit it for government procedure. The said Act has been enacted in the Croatian Parliament on 15. which leaves 176 . B) KEY PRIORITIES On the basis of the Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction. Transport and Infrastructure (MSTI). Postal services A) ACHIEVEMENTS IN 2008 An expert study entitled Development Strategy for the Postal Services Market in the Republic of Croatia by 2013 and the Implementing Action Plan of the Development Strategy for the Postal Services Market in the Republic of Croatia by 2013 has been compiled by the consultancy company Roland Berger Strategy Consultants Ltd. 3. 5/98 and 104/00).3. and the Act on Amendments to the Archives and Archival Material Act. museums and archives in the Republic of Croatia. in order to make it possible for foreign legal and natural persons to set up libraries. and the dynamics of further liberalisation of the postal services market in the Republic of Croatia. the Act on Amendments to the Museums Act. Ordinance on the recognition of foreign professional qualifications in the area of architectural and civil engineering activities (2nd quarter 2009). it is planned to adopt the Act on Amendments to the Libraries Act. The Government of the Republic of Croatia adopted the Strategy and Action Plan at its session of 19 March 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . This Strategy sets a timetable for the further liberalisation of the postal services market in the Republic of Croatia in line with a gradual market liberalisation scenario. December 2008 (OG 152/08). especially universal postal services. the Ministry of Culture initiated the procedure of harmonising the Libraries Act (OG 105/97. SERVICES IN CULTURE A) ACHIEVEMENTS IN 2008 With a view to alignment with the acquis in this area. the Museums Act (OG 142/98) and the Archives and Archival Material Act (OG 105/97 and 64/00) with the Act on Amendments to the Institutions Act (OG 35/08).

The Act on Amendments to the Postal Act entered into force on 1 July 2008. initiated in co-operation with EuroStat with the European Committee for Postal Regulation (CERP) and the European Commission. as has the secure and complete liberalisation of the postal services market by 2013). citizens from the entire territory of the Republic of Croatia. In the course of 2008. The subject of the survey was customer satisfaction with the quality and prices of the services. may go up to 50g for direct mail. while the price limit has been reduced from triple the amount of the first weight step of the fastest standard category to a 2. By the end of 2008. The aim of this publication is to inform all participants in the market and interested institutions about the current situation and trends in the postal and courier services market. the Council drew up questionnaires for the public operator and other providers of postal and courier services and collected necessary statistical and financial data. Vacancies have been announced. was the responsible authority for the Project and for all activities related to the collection of statistical data from providers of postal and courier services in the Republic of Croatia. is to restructure the public operator. The data were processed. which has been merged with the national regulatory body competent for electronic communications (telecommunications) into a new single national regulatory body − the Croatian Agency for the Post and Electronic Communications (HAKOM). consolidated. POLITICAL CRITERIA optimal time for the preparation of the domestic postal services market and for the public operator. and in order to monitor the situation in the market. range and quality of postal and courier services with seven postal and courier services providers.5 times larger amount of the said weight and category. have been aligned. which will be conducted by a postal inspector. The Department for Postal Services in the Directorate for Telecommunications and Postal Services of the Ministry of the Sea. With the adoption of the said Act. analysed and will be published by the end of 2008 in a publication entitled “Analysis of the postal and courier services market in the Republic of Croatia in 2007“. HAKOM is competent for monitoring the development of postal activity and the postal and courier services market in the Republic of Croatia.I. and to professional supervision by the regulatory body. customer habits and ways of using postal and courier services. According to the Postal Act. By 1 July 2008. i. and it is expected that four new civil servants will be recruited by the end of 2008 (two heads of section and two assistants). which will enter into force on 1 January 2010. according to Directive 2002/39/EC of 1 January 2006. and Directive 2002/39/EC amending Directive 97/67/EC (Postal Directives) pertaining to the scope of reserved services. as set out in the Strategy. as the national regulatory body. Transport and Infrastructure currently employs four civil servants. As part of the Project. In 2008.e. The former Council for Postal Services. The data for 2007 were collected in the course of 2008 and submitted to EuroStat. The crucial prerequisite for accepting the Third Postal Directive (adopted on 20 February 2008) into Croatian legislation and practice. HAKOM continued participating in the Project to collect statistical data in the postal sector. which. the first stage of a new Project entitled “Analysis of user satisfaction and usage of postal and courier services in the Republic of Croatia” was completed and the target group were individual users of postal and courier services. except for the provision pertaining to the reduction of the reserved area. all the requirements for the regulatory framework set by Directive 97/67/EC on common rules for the development of the internal market of Community postal services and the improvement of the quality of service. and in accordance with Article 7 of Directive 2002/39/EC amending Directive 97/67/EC. the weight limit for the reserved area for direct mail has been reduced from 100g to 50g. The Croatian Agency for Postal Services and Telecommunications (HAKOM) received two applications from courier services providers in the course of 2008. adopt a business plan and implement it consistently until 2010. In addition. The Act on Amendments to the Postal Act (OG 63/08) has extended the powers of the national regulatory body for postal services (by increasing supervisory powers and powers pertaining to market regulation). and to secure the accessibility of universal postal services (the opening of the postal market has been suggested. equal to inspection supervision and powers. as well as awareness of the right to universal postal services and 177 . HAKOM plans to conduct four more inspections. an inspector of the former Council for Postal Services conducted inspections in terms of type.

The Act prescribes. Post and Railway (BnetzA). The said Draft is aligned with Directive 2005/36/EC. maintain and promote sustainable competition in the postal and courier services market. In 2009. The general aim of this Project was to introduce. in accordance with Directive 2005/36/EC. secure the effective application of regulations. that the national ENIC/NARIC Office be designated as the contact point for the recognition of qualifications for regulated professions. in the part pertaining to the area of postal services. i. The Act on Vocational Education was accepted at the session of the Government of the Republic of Croatia in December 2008. the Government of the Republic of Croatia accepted the Draft Proposal of the Act on the Recognition of Foreign Professional Qualifications. B) KEY PRIORITIES In the course of 2009. it is planned to implement the second stage of the Project “Analysis of user satisfaction and usage of postal and courier services in the Republic of Croatia”. representatives of the postal regulator took part in two study trips in order to become acquainted with internal procedures implemented by foreign regulators and with their role in the postal market. HAKOM recruited two new employees. and collect the necessary statistical and financial data. and strengthen the institutional capacities of the postal regulator so that it may act as an independent national regulatory body in the postal and courier services market. 3. in accordance with the approved HAKOM Financial Plan for 2009. It is also planned to recruit three employees for regulatory activities in the field of postal services. In the course of 2008. which will target legal persons. i. HAKOM will continue to monitor the development of postal activity and the postal and courier services market in the Republic of Croatia. which it will continue to submit to EuroStat and which will continue to be published. it aligns the legal framework for the education of nurses and midwives. The said Act is also aligned within its scope with Directive 2005/36/EC. Telecommunications.e. in accordance with the regulations and practices of the European Union. EDUCATION AND SPORT A) ACHIEVEMENTS IN 2008 Legislative activities In December 2008. The Final Report.4. Within the Project. which entrusted the implementation of the Project to representatives of the Federal Agency for Electricity. The data collected in the survey are currently being processed and will be published by the end of 2008. was signed in June 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Project partner to the Council was the German Federal Ministry of Economy and Technology. due to the setting up of HAKOM as the single regulatory body for postal services and telecommunications.3. Mutual Recognition of Qualifications SCIENCE. it is expected that part of the employees who had performed general activities in the former Council for Postal Services will be transferred to other activities within HAKOM. business users. which includes the Strategic Document of the regulator (for the area of postal services) for the next three years. the regulatory body in the Federal Republic of Germany. The implementation of the CARDS 2004 Project “Support to the Croatian Postal Services Council” began on 29 May 2007 and the Project was officially completed on 29 January 2008.2009 understanding of the range of these services. Gas. 178 .e.

This database will contain information on all regulated professions in the Republic of Croatia. in the course of 2008 the national ENIC/NARIC Office conducted a number of activities aimed at aligning procedures in the area of recognition of foreign professional qualifications with the requirements of Directive 2005/36/EC. The Ordinance on specialist training for doctors of medicine (OG 73/08) has been adopted. administrative and institutional prerequisites were strengthened in order to apply the legal solutions in practice in the best possible way and to set up mechanisms for referring the recognition of qualifications for regulated professions to competent chambers and professional associations. In addition. for the purpose of alignment with the acquis. For the purpose of alignment with EU qualifications and standards. has been adopted. the Ordinance on specialist training for pharmacists (OG 73/08) and the Ordinance on specialist training for medical biochemists (OG 73/08) have been adopted. implemented within the framework of the preaccession programme of the Dutch Government MATRA MPAP. In addition. professions in the field of health care have for the most part been aligned on the basis of minimum educational requirements in order to ensure automatic mutual recognition of professional qualifications and diplomas between Member States. seminars on Directive 2005/36/EC have been organised. 179 . and the specialist training of nurses-medical technicians. competent decision-making bodies for the recognition of professional qualifications. B) KEY PRIORITIES It is planned to complete the setting up of an operative and administrative system for the application of the new Act on the Recognition of Foreign Professional Qualifications. Meetings have been held with representatives of particular regulated professions. in line with the UEMS recommendations and with Directive 2005/36/EC. B) KEY PRIORITIES On the basis of the Ordinance on specialist training for doctors of medicine (OG 73/08). POLITICAL CRITERIA Implementing measures After the adoption of the Act on Amendments to the Act on the Recognition of Foreign Professional Qualifications (OG 138/2006). competent professional associations.I. continues to be responsible for the recognition of foreign professional qualifications issued by institutions of higher education. regulating the profession of midwives in line with EU requirements. for both regulated and non-regulated professions. the national ENIC/NARIC Office. HEALTH CARE A) ACHIEVEMENTS IN 2008 As regards the acquis. In the previous period in the Republic of Croatia. doctors of medicine working in primary health care. which regulates the profession of physical therapists. it is planned to align traineeship and the education of doctors of medicine. specialisation curricula will be adopted after 1 January 2009. In addition. and pertinent regulations. measures are being undertaken to implement specialist training in line with the requirements of the acquis. chambers and ministries. while the specialisation curricula will be adopted after 1 January 2009. which operates within the Agency for Science and Higher Education. the Act on Physical Therapy Activities (OG 120/08). the Midwives Act (OG 120/08) was adopted. In the course of the Project. dentists. and issues certificates of recognition. and the content and form of the database on the recognition of professional qualifications for regulated professions have been defined. At the same time. Within the Project “Strengthening the Role of the Croatian ENIC/NARIC Office”.

2 Construction Services. the need will be assessed to further align legislation and adopt additional regulations governing the recognition of regulated professions as stipulated by Directive 2005/36/EC.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .3. CONSTRUCTION A) ACHIEVEMENTS IN 2008 In addition to what was outlined under 3. The Act on Surveying Activities has been adopted by the Government of the Republic of Croatia and enacted in the Croatian Parliament on 15 December 2008 (OG 152/08).2 Veterinary Medicine Services 180 . The Act on Health Care Activities will be adopted in the course of 2009. a special act regulates the profession of surveyors. Education and Sports. VETERINARY MEDICINE A) ACHIEVEMENTS IN 2008 See 3.3. the adoption of which lies within the competence of the Ministry of Science.2009 Upon the entry into force of the Act on the Recognition of Foreign Professional Qualifications.

FREE MOVEMENT OF CAPITAL 3. The Regulation on Amendments to the Foreign Exchange Act (OG 150/08) postpones the liberalization of capital transactions regulated by the Act until 1 August 2009 (short-term financial loans to non-residents) and until 1 January 2010 (other remaining capital transactions covered by Article 78 of the Foreign Exchange Act). and final decisions were reached in respect of 2.940 applications for approval to acquire real estate in Croatia were received from EU citizens and non-EU citizens 181 .579 applications were accepted and approvals granted. Applications submitted by EU citizens for real estate acquisition: From 5 November 2007 to 5 November 2008: A total of 2. The Act on Amendments to the Deposit Insurance Act (OG 119/08) prescribes that privileged access of the public sector to the free assets of the Deposit Insurance Fund managed by the State Agency for Deposit Insurance and Bank Rehabilitation will be revoked. the Republic of Croatia continued with the liberalisation of capital transactions in 2008.892 applications for approval to acquire real estate in Croatia were received from EU citizens. POLITICAL CRITERIA 3. 78% of all the applications received were processed. while 631 cases have not yet been processed.1. The Act on Amendments to the Insurance Act (OG 87/08) prescribes that privileged access of the public sector to the funds of insurance companies will be abolished upon the accession of the Republic of Croatia to the European Union. 55 applications rejected.I. Movement of capital and current payments A) ACHIEVEMENTS IN 2008 As part of the process of liberalising the capital account. Thus. These amendments have removed the special requirements for EU Member State citizens and legal persons in respect of acquiring real estate. and in 32 cases the opinion of the competent local or regional self-government unit was requested). The Act on Amendments to the Act on the Fund for Croatian Homeland War Veterans and Members of their Families (OG 41/08) prescribes that privileged access of the public sector to the assets of the Fund will be abolished as of the date of Croatia’s accession to the European Union. It should be noted that the Act on Amendments to the Foreign Exchange Act (2006) envisaged full liberalization of all capital transactions regulated by the Act from 1 January 2009. Real estate A) ACHIEVEMENTS IN 2008 On 12 December 2008.4.261 applications (1. the Act on Amendments to the Act on Ownership and Other Real Rights (OG 146/08) was passed in order to ensure that the citizens of EU Member States enjoy the same treatment as Croatian citizens as regards the acquisition of real estate rights. and proceedings in respect of 27 applications were suspended because the parties withdrew their applications). 600 applications are being processed (in 568 cases. Applications submitted by EU citizens and non-EU citizens for real estate acquisition: From 1 January 1991 to 5 November 2008: A total of 10. conclusions were adopted inviting the applicants to submit relevant documents.4.

2002/65/EC.953 applications (approval was granted in 3. the Croatian National Bank. along with subordinate legislation. 3. and repealing Directive 97/5/EC. strengthening supervision over the reporting bodies (target inspections. specialised units. the drafting of the new Payment Transactions Act started in 2008.). 3. the Government of the Republic of Croatia adopted the Action Plan for the Fight Against Money Laundering and Terrorist Financing. so that Croatian regulations will be aligned with the provisions of Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market amending Directives 97/7/EC. etc. B) KEY PRIORITIES The new Payment Transactions Act will be passed by the end of June 2009. 9. the Police Administration. continuous training.). Payments and collections A) ACHIEVEMENTS IN 2008 After Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market was adopted in late 2007. the State Attorney’s Offices. All relevant subordinate regulations will be adopted by the end of 2009. etc. 2005/60/EC. 182 . raising awareness of the reporting bodies (training. which is about 10% more than stated in the previous report From 5 November 2007 to 5 November 2008: Overall. the Financial Police. the Customs Administration. etc. the Croatian Financial Services Supervisory Agency. in 1.4. Prevention of money laundering A) ACHIEVEMENTS IN 2008 On 31 January 2008. About 150 activities are planned with regard to specific segments of the given benchmark: legislative alignment (a new Act on the Prevention of Money Laundering and Terrorist Financing.3. and 2006/48/EC.2. The Action Plan covers the Anti-Money Laundering Office.680 cases the applicants were invited to provide additional documents to their applications. the Tax Administration. training. in 484 cases approval was denied. the Foreign Exchange Inspectorate.).2009 - Of that number. while proceedings were suspended in 244 cases. in accordance with the provisions of the Directive. liaison officers within supervisory bodies. the courts and the Ministry of Justice.716 applications (or 88%) were processed. etc.225 cases. focus on financial investigations. final decisions were reached in respect of 3. and in 129 cases the opinion of the competent local or regional self-government unit was requested). strengthening of the Police and the State Attorney’s Office (liaison officers.).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Action Plan relates to 11 government bodies and includes joint actions and co-operation.4. specialists.

The number of employees has been increased by 63% (from 22 to 36). IT interconnecting. By October 2008. the Prevention and Supervision Department (including the Section for the Financial Sector and the Section for the Non-Financial Sector). and the International Co-operation Department. OG 85/08) defines the Financial Inspectorate as the body responsible for overseeing the application of regulations on the prevention of money laundering and terrorist financing to all parties subject to the Act. In the period from May to September 2008. analysing and providing information on suspicious transactions. the new Financial Inspectorate Act (passed by the Croatian Parliament on 9 July 2008. Under this method.e. parties subject to the Act are required to analyse each of their clients or types of business transactions and to classify them in specific risk categories based on the results of such analyses. to apply the procedure which enables CDD measures to be applied. Pursuant to the same Regulation. and the Act prescribes the obligation for any party subject to the Act to establish the identity of the beneficial owner. and issuing orders for transaction postponement). the natural person controlling the client. In accordance with the set deadlines. namely the International Co-operation Department and the Financial Investigations Department. etc. POLITICAL CRITERIA - strengthening of courts (training. etc. the following Departments were established within the Anti-Money Laundering Office: IT System and Strategic Analyses Department. i. so legal persons and natural persons performing a registered business activity are required to execute the majority of their payments exceeding HRK 105. In addition to the powers set out in the Act (receiving. In addition. Among the innovations introduced by the Act is a detailed description of the Customer Due Diligence (CDD) procedure. thus enabling more intensive co-operation among them. OG 127/07). and some important elements of the Council of Europe’s Warsaw Convention. the Regulation on information on the payer accompanying transfers of funds. The new Act also purports to regulate cash transactions. risk analysis is introduced as a new method of preventing money laundering and terrorist financing. four new employees had been recruited. requesting. Analytics and Suspicious Transactions Department (including the Section for Analytical Processing of Transactions and the Section for Suspicious Transactions). On the basis of the Regulation on Amendments to the Regulation on the internal organisation structure of the Ministry of Finance (adopted at the session of the Croatian Government on 7 December 2007. the application and implementation of the planned measures are in progress.000 through designated accounts. Furthermore. the Act specifies in detail the conditions under which co-operation between the Anti-Money Laundering Office and other competent bodies can be established in cases involving money laundering and terrorist financing.). A party subject to the Act has to identify any client who is a politically exposed foreign person and to apply the special measures prescribed by the Act in respect of such a client. The new elements. liaison officers. or provisions. In accordance with the Act on the Prevention of Money Laundering and Terrorist Financing and in view of the increased number of 183 . joint training. Certain restrictions on cash transactions are imposed. efficient co-operation between bodies in the implementation chain (co-operation agreements. have been transposed. which is based on FATF Recommendation 5.). the Regulation on controls of cash entering or leaving the Community. Besides the above Act. the Ministry of Finance posted three vacancy announcements for the recruitment of ten new inspectors to work at the Office. two new Departments were established within the former Foreign Exchange Inspectorate (now the Financial Inspectorate). namely the Third Anti-Money Laundering Directive. The provisions of the Warsaw Convention aimed at increasing the powers of the Croatian financial intelligence unit. namely the Anti-Money Laundering Office. the following major activities foreseen under the Action Plan have been implemented: The new Act on the Prevention of Money Laundering and Terrorist Financing (passed by the Croatian Parliament on 15 July 2008 and published in the Official Gazette 87/08) is fully aligned with European standards in the area of the prevention of money laundering and terrorist financing. which are recognised as particularly vulnerable in terms of money laundering. Thus far.e. Furthermore. are designed to strengthen both the prevention system and the possibilities of co-operation among all competent bodies in preventing money laundering and terrorist financing.I. joint statistics. the Office is also authorised to order the party concerned to postpone a transaction at the request of a foreign financial intelligence unit. the term “beneficial owner” is introduced. i. The Act also introduces the term “politically exposed person”. which is based on FATF Recommendation 6.

money changers.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . legal framework. which included about 100 participants. the central body responsible for international co-operation and legal aid. five new employees were recruited in September 2008.2009 parties subject to the Act. The training plan for 2008 has been defined for all those subject to the application of the Act (freelance professions. the organisation. the Anti-money Laundering Office (FIU) and the State Attorney’s Office. in accordance with the standards of the Egmont Group of Financial Intelligence Units. the Protocol on co-operation and the establishment of an inter-institutional working group for the prevention of money laundering and/or terrorist financing. Search. Indonesia and Paraguay. as provided for in the Convention. the Croatian Financial Services Supervisory Agency and the Central Intelligence Agency. the Anti-Money Laundering Office. and with the aim of facilitating the detection of risk points and high-risk parties. the activities of the Inter-Institutional Working Group were continued. The preparation of guidelines for the parties subject to the application of the Act on the Prevention of Money Laundering and Terrorist Financing has also begun. On 15 July 2008. and systematic procedures and standards for the implementation of appropriate measures and actions are still being developed. the Financial Police. the Customs Administration. the Foreign Exchange Inspectorate. Among the lecturers were state attorneys and employees of the Anti-Money Laundering Office. The training is planned to be completed by the end of 2008. the Financial Inspectorate has taken the necessary measures and actions to prepare a manual for inspectors participating in the supervision of the application and implementation of measures for preventing money laundering and/or terrorist financing. The measures aimed at preventing money laundering are not yet fully implemented in practice. but also the introduction of police officers specialising in the prevention of money laundering and financial investigations. The Act prescribes that the State Attorney’s Office of the Republic of Croatia is. During 2007. the USA Embassy in Zagreb organised a three-week working visit to the United States for representatives of the Ministry of the Interior (Economic Crime and Corruption Department). the Anti-Money Laundering Office has concluded. the Ministry of the Interior. This is a precondition for the prevention and suppression of money laundering and/or terrorist financing in the overall fight against organised crime both at the strategic and operational level. namely the Ministry of Justice. co-operation agreements with financial intelligence units of the USA. During 2008. the Police Directorate. In 2008 MONEYVAL published its 3rd Round Evaluation Report on Croatia. On that occasion. Strategic Analyses and IT Support is planned by the end of 2008. the State Attorney’s Office. The Ministry of Justice has organised and carried out through the Judicial Academy five training sessions on money laundering for state attorneys and judges. work methodology and forms of inter-institutional co-operation among 184 . the prevention of money laundering will be improved because the organisational restructuring of the Office implies not only a changed concept of crime police operation. the State Attorney’s Office of the Republic of Croatia. and the Financial Intelligence Unit have one representative each on the Croatian delegation to the Council of Europe’s MONEYVAL Committee (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism). besides the Ministry of the Interior. the Economic Crime and Corruption Department. As provided for in the Action Plan. the Croatian Parliament passed the Act on Ratification of the Convention on Laundering. the Tax Administration. The organisational restructuring of the crime police started in 2008 with the establishment of the Police National Office for the Suppression of Corruption and Organised Crime. the Croatian National Bank. In order to strengthen the Supervision Sector (considering the larger number of parties subject to the Act due to the application of the new Act on the Prevention of Money Laundering and Terrorist Financing and the Financial Inspectorate Act passed in July 2008). The Police. the establishment of the Department of Risk Assessment. setting out the results of evaluation of the measures against money laundering and terrorist financing according to the methodology of assessing compliance with the 49 FATF Recommendations. When the Office becomes operational. and several regular and ad hoc meetings took place in order to ensure more efficient and concerted co-operation in the exchange of information. At the international level. entered into force. The Protocol was concluded by eleven institutions. banks and money transferors) and for employees of the Financial Inspectorate. Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (the 2005 Warsaw Convention)(OG IA 5/08). In the course of 2008.

etc. to the CARIN NETWORK (Camden Assets Recovery Inter-Agency Network). among others. with the following obligations arising for the Ministry of the Interior: adoption of the new Act on Amendments to the Police Act. Macedonia and UNMIK/Kosovo. “Financial Investigations and Confiscation of Proceeds from Crime”.20 by the European Commission and the Council of Europe. the Office for the Prevention of Organised Crime and Corruption (USKOK). Representatives of prosecutors’ offices. the 1st Regional Thematic Seminar. planning and implementing permanent training for police officers specialising in money laundering at the Police Academy. the Police Directorate − Economic Crime and Corruption Department. Croatia is the first country in the region to have appointed its representatives. nominating at least one police officer specialising in money laundering as a member of the Police National Office for the Suppression of Corruption and Organised Crime.PROSECO” began. the Tax Administration and the Financial Inspectorate). the implementation of the CARDS 2006 regional project entitled “Support to Prosecutors’ Network in South Eastern Europe . The amendments to the Criminal Code expand the scope of confiscation of proceeds to include all crimes. Inter-institutional co-operation is also planned to continue through the activities of the InterInstitutional Working Group for the Prevention of Money Laundering and Terrorist Financing. Financed with EUR 1. the project will last until April 2010 and cover the following states in South East Europe: Albania. Serbia. an informal network of experts in the area of financial investigations and confiscation of proceeds of crime. participation of police officers in appropriate forms of external training organised by domestic or international institutions.666. POLITICAL CRITERIA a number of US government and non-government bodies and institutions involved in the prevention of money laundering and terrorist financing were presented. by police officers specialising in money laundering and financial investigations. which will prescribe additional obligations for the police in searching for proceeds of crime. In June 2008. Ministry of the Interior The implementation of the Action Plan for the Fight Against Money Laundering and Terrorist Financing will continue throughout 2009. including the employees of the Police Directorate (Economic Crime and Corruption Department) and of the State Attorney’s Office. the Croatian Parliament passed the new Act on Criminal Procedure (OG 152/08) and the Act on Amendments to the Criminal Code (OG 152/08). Bosnia and Herzegovina. Croatia. further alignment with the acquis communautaire in the field of the prevention of money laundering and terrorist financing is achieved. directing and intensifying police activities in financial investigations. Ministry of Justice On 15 December 2008. which is planned to include four regional offices staffed. 185 . the police and other state bodies involved in financial investigations and the confiscation of proceeds of crime took part in the seminar (the participants from Croatia included representatives of the State Attorney’s Office.I. at the regional level. With the adoption of these acts. took place in Cavtat on 25 and 26 September 2008. The Croatian delegation will take an active part in the MONEYVAL activities planned for 2009. As part of the project. training and supervision. Montenegro. B) KEY PRIORITIES The implementation of the new Act on the Prevention of Money Laundering and Terrorist Financing will continue in 2009 through guidelines. The Croatian representatives will continue to participate in the activities of the Network.669.

In order to facilitate the assessment of the implementation of these regulations. reports will be prepared on a quarterly basis to present statistical and other relevant information on investigations. and proceedings.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . including judgments and seizures in money laundering cases. legal charges.2009 Ministry of Justice Necessary administrative adjustments will be made during 2009 to enable the proper application of relevant regulations in all areas related to the prevention of money laundering. 186 .

Regulation on the format. Regulation on the content and the method of forwarding public procurement reports (OG 14/08). the Ministry of the Interior. Activities on the project of setting up the Central Public Procurement Authority also began in the form of a needs analysis and a survey of the current situation. Labour and Entrepreneurship (MELE) will also sign a Co-operation Agreement with the State Attorney’s Office. In March 2008. creates the legal basis for further regulation of public procurement contracts in the field of defence and security through subordinate legislation. the Ministry of Economy.1. Regulation on the list of entities bound to adhere to the Public Procurement Act (OG 14/08). MELE concluded the “Agreement on Business Co-operation on the Implementation of Training concerning the System of Public Procurement” with the Croatian Chamber of Economy (the “CCE”) and the “Agreement on Business Co-operation in the System of Public Procurement” with the Croatian Employers’ Association (“CEA”). By the end of 2008. MELE organised four 13-day modules for 16 participants − civil servants. the State Audit Office and the Ministry of Finance.I. Based on the said agreements. employees in the local self-government and municipal sector (14 three-day workshops in co-operation with the CCE) and workshops for representatives of tenderers (three one-day workshops in co-operation with CEA). puts an end to the obligation to announce exemptions. methods and conditions of training in the public procurement system (OG 54/08). the Government of the Republic of Croatia adopted the Strategy for the Development of the Public Procurement System and its Action Plan. in 2008 MELE organised workshops. simplifies multiannual procurement procedures based on the framework agreement. each for a group of 30 participants.5. that is. Regulation on public procurement notices and records (OG 13/08. The following subordinate legislation was also adopted: Regulation on the conditions for applying the Common Procurement Vocabulary (CPV) (OG 13/08).5. USKOK. and introduces professionalisation for procurement procedures with specific values. Regulation on the methodology for drawing up and handling tender documents and tenders (OG 13/08). the Act on Amendments to the Public Procurement Act introduced the so-called anti-corruption clause which prohibits the concluding of a public procurement contract with an economic operator where the head of the body or member of the management or supervisory body of the contracting authority is at the same time the holder of certain rights arising from a share in the capital of that economic operator. introduces a clarification of the subject matter of procurement and the method of determining it. PUBLIC PROCUREMENT 3. 187 . Training in the System of Public Procurement In 2008. Regulation on the implementation of control through the activities of prevention and instruction (OG 14/08). in co-operation with the Central State Office for Administration. It serves to achieve further alignment with the acquis communautaire and. among other things. POLITICAL CRITERIA 3. In connection with the activities of preventing corruption in the system of public procurement. introduces the mandatory category of the procurement plan. Public Procurement A) ACHIEVEMENTS IN 2008 On 20 June 2008. The Public Procurement Act (OG 110/07) entered into force on 1 January 2008. 77/08). The Act on Amendments to the Public Procurement Act (OG 125/08) was also adopted and will enter into force on 1 January 2009.

Given that the term of office of the members of the first Commission ended on 16 October 2008. which is published at www. and the Public Procurement Glossary and a manual connected with the professionalisation of the function of public procurement will also be drawn up. and active legitimacy has been expanded and is now fully in line with the requirements of the acquis communautaire. the State Commission for the Supervision of Public Procurement Procedures and Trade and Investment Promotion Agency . In 2008. as of January 2008 it is possible to request review against all phases of the public procurement procedure. the Ministry of the Economy. In line with the standards set out in the Public Procurement Act. but in the second quarter. It is expected that in 2008 the number of requests for review against public procurement procedures will rise by 30% in comparison to 2007. representatives of the Agency for Public Private Partnerships). as well as other relevant bodies of state administration involved in its implementation. The project is expected to last 6 months. Members of the said Committee were appointed by the Government of the Republic of Croatia in July 2008 (OG 92/08). Within the Directorate. the Commission achieved all the goals set in 2007.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . deputy president and members of the State Commission for the Supervision of Public Procurement 188 . to strengthen training programmes and to regularly report to the Government of the Republic of Croatia. monitor and analyse data on measures taken in the system of public procurement. to improve the effectiveness of the implementing measures. thus improving the transparency of the work of the institution and providing all interested parties with access to all decisions of the Commission. To implement the Strategy for the Development of the Public Procurement System and its Action Plan. the Government of the Republic of Croatia adopted the Decision establishing the Implementation Monitoring Committee (OG 73/08). The said system allows all interested parties to have access to the practice of the Commission. The Manual for Contracting Authorities and the Manual for Tenderers were drawn up and presented to the public at the conference “Novelties in the Public Procurement System − Amendments to the Public Procurement Act and the Act on Public Private Partnerships”.TIPA (that is. the expected increase in the number of requests for review did not occur. The State Commission for the Supervision of Public Procurement Procedures (the “Commission”) Following the entry into force of the new Public Procurement Act. while MELE’s Directorate for the Public Procurement System assumed the duties of the Public Procurement Office of the Government of the Republic of Croatia. Three workshops and one study trip to the Netherlands took place as part of the said project. Administrative Capacities With the Act on Amendments to the Act on the Structure and Scope of Central Bodies of State Administration (OG 27/08). The project “Further Strengthening of the Public Procurement System in the Republic of Croatia” (a programme of the Kingdom of the Netherlands) is in its final phase of implementation. the procedure of selecting the Twinning partner of the Commission for the PHARE 2006 project “Further Strengthening of the State Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection” was concluded. They are published as soon as the return receipt is delivered as proof of service of the decision to the parties in the review procedure.hr (in the section “Decisions”. the Department for Public Private Partnerships and the Department for Electronic Support to the Public Procurement System. which is headed by MELE. Decisions are published in the Register. the Department for the Development of the Public Procurement System and for Training. the Croatian Parliament passed a Decision appointing the president. there is the Department for the Analysis of Public Procurement Procedures. In the first quarter of 2008. and which consists of the representatives of Ministry of Finance. It also served to run a training programme for the staff of MELE’s Directorate for the Public Procurement System through 19 workshops and to organise a study trip to Hungary. the monthly inflow of review requests rose significantly. Labour and Entrepreneurship (MELE) was entrusted with the development of the overall system of public procurement. which was organised by MELE on 30 October. In October 2008.2009 The PHARE 2005 Twinning Light Project (TLP) was conducted under the title “Strengthening the administrative capacity for the implementation of the new public procurement legal framework”. the Commission now publishes on its website all decisions in full.dkom. Some of the main tasks of the Implementation Monitoring Committee are to gather. where all decisions are available in PDF format).

Regulation on the methodology for drawing up and handling tender documents and tenders (OG 13/08). The Act on Amendments to the Act on the State Commission for the Supervision of Public Procurement Procedures is currently being drawn up. MELE’s Directorate for the System of Public Procurement will analyse electronic public procurement systems in EU Member States and. Regulation on the content and the method of forwarding public procurement reports (OG 14/08). It will regulate the issue of procurement for the needs of diplomatic missions and consular offices. also works on raising awareness of both the public and the private sector. regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts and Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts. it is planned to adopt the Regulation on public procurement for the needs of defence and security. The Ordinance on public procurement for the needs of diplomatic missions and consular offices of the Republic of Croatia will also be adopted. On completion of the test phase. Training in the System of Public Procurement In 2009. will draw up a study for the development of electronic procurement.I. as lecturers. Regulation on public procurement notices and records (OG 13/08. 77/08). based on the results. POLITICAL CRITERIA Procedures (OG 113/08). it is planned to hold four modules for civil servants. The selection of the Public Relations Agency is planned for the period January-February 2009. along with its main function of conducting the second-instance review procedure. All procurement categories in which the Central Public Procurement Authority are to participate will also be defined. Training in the system of public procurement will involve approximately 500 participants through a total of 19 planned modules and workshops. concerning public procurement and the procedure of legal protection. and as part of the project it plans to implement the pilot project of central procurement. 189 . In 2009. In line with the schedule of adopting the Proposal for a Directive of the European Parliament and of the Council on the coordination of procedures for the award of certain public works contracts. two new members and two former members took office on 17 October 2008. The development of the campaign is planned for the period March-May 2009 and its implementation for June-December 2009. In co-operation with the Central State Office for Administration. recommendations will be drawn up to set up the Central Public Procurement Authority. while the organisation of workshops in co-operation with the Croatian Chamber of Economy and Croatian Employers´ Association will also continue. In January 2009. further emphasis will be placed on the implementation of training in the system of public procurement. It is expected to be adopted by the end of 2008. The Commission. MELE will announce a tender procedure for the project of setting up the Central Public Procurement Authority at the level of the Government of the Republic of Croatia. public supply contracts and public service contracts in the fields of defence and security. The new president of the Commission. It will standardise the procedure for the appointment of members of the Commission in accordance with the provisions of Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws. In 2009. MELE plans to conduct an awareness raising campaign − Transparency in Public Procurement. B) KEY PRIORITIES With a view to ensuring the effective application of the legislative framework. amendments to the following regulations will be adopted in late 2008 and in the course of 2009: Regulation on the conditions for applying the Common Procurement Vocabulary (CPV) (OG 13/08). Employees of the Commission led a number of informative seminars. It is planned for the Central Public Procurement Authority to be fully operational by the beginning of 2011.

The Concessions Act is an umbrella act which regulates concessions in the Republic of Croatia. but an increase will be requested in order to enable the recruitment of further expert staff. and of the representatives of the private sector concerning procedures of legal protection. on 14 November 2008 the Government of the Republic of Croatia adopted the “Road Map for the co-ordination of special (sector-regulating) legislation governing concessions with the Concessions Act”. The Act is fully aligned with the relevant acquis communautaire and serves to implement all the main factors of the new system of concessions set out in the “Guidelines for the Development of the Concessions System 2007-2009”. The provisions of the umbrella Concessions Act provide for the construction of an efficient system for the implementation of public private partnership projects (PPPs). termination and other issues connected with concessions which are awarded to national and foreign natural and legal persons. both of the members of the Commission and of expert and administrative staff. the recruitment of staff for the vacant posts will continue in MELE’s Directorate for the System of Public Procurement. Activities included in the Twinning project of the Commission are foreseen to facilitate changes to the current legislation in such a way as to enable the training of the members and advisors of the Commission. the Ministry of Finance (MF) co-operated intensively with the consultants of SIGMA. Concessions A) ACHIEVEMENTS IN 2008 In 2008. which are aimed at setting up an efficient and sustainable long-lasting concessions system. award procedures. rules. based on a uniform concessions award procedure in line with the principles laid down in the Constitution of the Republic of Croatia and the Treaty establishing the European Community. will take part in training cycles for those who are obliged to apply the Public Procurement Act and for representatives of the private sector. The new Concessions Act regulates the general conditions. The Road Map is based on an analytical presentation of the current legislative framework for concessions. and lays down detailed implementing measures and rules for the alignment of the special legislation with each 190 .2009 Administrative Capacities In the course of 2009. as in previous years. In line with the Strategy for the Development of the Public Procurement System and its Action Plan. Regional seminars and seminars for representatives of the media concerning legal protection in public procurement. it is foreseen to recruit 9 new expert advisors who will need to undergo expert training. The said increase in the budget will be necessary in view of the expanded responsibilities of the Commission for the control of the award of concessions and for public private partnerships. the Concessions Act (OG 125/08) was adopted with a view to improving the system of concessions in the Republic of Croatia. the Concessions Act invokes the subordinate application of the provisions of the Public Procurement Act (OG 110/07. as one of the activities included in the forthcoming Twinning project. In 2009.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In drawing up the Act. with a view to strengthening the system and ensuring better implementation of the set goals. In 2009. while other regulations are applied as leges speciales (sector-regulating laws and subordinate acts). Application of the said rules ensures the implementation of a transparent and uniform concessions award procedure and the achievement of the goals of the Government of the Republic of Croatia.2. 3. the staff of the Commission. will be held in Split. Rijeka and Osijek. the main goals are further human resources development in the Commission. 125/08).5. which regulate specific issues connected with the award of concessions in the relevant fields and activities. In the part which regulates the award of concessions for public works. By the end of June 2009. The State Commission for the Supervision of Public Procurement Procedures (the “Commission”) The budget of the Commission proposed for 2009 is satisfactory in terms of its normal functioning.

and the MF will also draw up “The Guide for Concessions”. Amendments to the Ordinance on the structure and maintenance of the Concessions Register will be adopted by the end of 2008. as the authority competent for the concessions policy in the Republic of Croatia. Administrative Capacities In line with improvements to the system through the adoption of the new legislative framework in the field of concessions and the expansion of the scope of work of the MF to the concessions policy and a segment of the PPP system. As member of the Implementation Monitoring Committee for the implementation of the “Road Map for the co-ordination of special (sector-regulating) legislation governing concessions with the Concessions Act”. Legal Protection in the Field of Concessions Activities will be conducted aimed at establishing the high-quality work of the Commission in relation to review proceedings in the award of concessions. where a new Section for Concessions and Public Private Partnerships now exists within the Department for Concessions. Alignment of the special legislation with the Concessions Act will be conducted by 1 June 2009. The implementation of the Road Map will be monitored by the Implementation Monitoring Committee of the Government of the Republic of Croatia for monitoring the implementation of measures in the public procurement system. the MF will follow the line ministries and co-operate with them in the implementation of activities and obligations set out in the Road Map. In connection with the strengthening of administrative capacities. Regarding measures aimed at strengthening administrative capacities. primarily in the form of the implementation of the World Bank and the Twinning Light projects. drew up the proposal of a project to be implemented through the “Public-private partnership Infrastructure Advisory Facility” aimed at strengthening the administrative capacity of the MF to conduct the activities laid down in the new Act on Public Private Partnerships. new systematisation is in place in the MF’s Directorate for the Economy.I. it is planned to train participants who are the subject matter of the application of the Concessions Act and to coordinate activities to ensure the efficient application of its provisions. who should be recruited by the end of 2008 based on the published vacancy announcements. the Twinning Light project: “Strengthening the Administrative Capacity of the Ministry of Finance for the Implementation of the New Legislative Framework for Concessions and Public Private Partnerships” has been approved. Recruitment proceedings are underway to recruit new employees for the Section for Concessions and Public Private Partnerships. On that same date. will conduct the activities foreseen in the Concessions Act. Administrative Capacities There will be further improvement and strengthening of the administrative capacity of the organisational unit in charge of concessions and public private partnerships within the MF. Legal Protection in the Field of Concessions The Commission has completed the main preparations to take on implementation of control of the award of concessions contracts through the review procedure. the MF. The Road Map lays down the obligation of the line ministries to align the special legislation with the Concessions Act in accordance with the methodology and the time limits set out in the Road Map. in co-operation with the World Bank. POLITICAL CRITERIA specific provision of the Concessions Act. Training will include new employees of the Department for Concessions of the Directorate for the Economy. At the same time. Activities are also foreseen in the forthcoming Twinning project “Further Strengthening of the State 191 . B) KEY PRIORITIES Implementation of the new Concessions Act will begin on 1 January 2009 and the MF. a uniform and co-ordinated legislative framework for concessions will also enter into force in the Republic of Croatia.

Public Private Partnerships A) ACHIEVEMENTS IN 2008 The Act on Public Private Partnerships (OG 129/08) has been adopted. Regulation on the monitoring of the implementation of PPP projects. In co-operation with the competent bodies of state administration.3.2009 Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection”. With a view to strengthening the administrative capacity of the APPP. Regulation on the content of PPP agreements. approval and monitoring of the implementation of PPP projects. including the establishment and maintenance of the Register of PPP Agreements. stipulating the rights and obligations of the contractual parties in the procedure of monitoring the implementation of PPP projects. Legal Protection in the Field of PPPs The Commission concluded the main preparations for assuming the implementation of control of the award of PPP agreements through the review procedure. The APPP acquired legal identity on 21 November 2008 on its entry into the court register of the Commercial Court. the MF will conduct the activities set out in the Act and launch the internal mechanisms for their effective implementation. the rights and obligations of public and private partners in the application of contractual and status models of PPPs. 192 . 3. such as internships and tailor-made seminars for expert advisors and members of the Commission on the subject matter of concessions. The Act regulates the entire field of PPPs. proposing.5. Further upgrading of the legislative framework will be implemented through the upscaling of the following implementing acts based on the Act on Public Private Partnerships by the end of the 1st quarter of 2009: Regulation on the criteria for the appraisal and approval of PPP projects. Ordinance on the structure and maintenance of the Register of PPP Agreements. The APPP will primarily deal with the pre-tender preparation and selection of PPP projects and with the monitoring of the implementation of the agreed PPP projects. and in particular the following: the procedure of preparation. the competencies of the Agency for Public Private Partnerships (APPP). Simultaneously with the entry into force of the Act on PPPs. the Delegation of the European Commission in Zagreb approved the IPA 2007 TWL project proposal “Strengthening the Administrative Capacities of the Agency for Public Private Partnerships of the Republic of Croatia concerning the Implementation of the New Legislation on Public Private Partnerships”. thus enabling accelerated development which is not limited to budget funds. which will promote best practice concerning PPPs based on the PPP policy of the Government of the Republic of Croatia. Administrative Capacities The Act on PPPs establishes the Agency for Public Private Partnerships (APPP).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . It promotes and allows for the systematic development of the application of public private partnership models as standard elements of public procurement involving investments by the private sector. Regulation on the training of those participating in the procedure of preparing and implementing PPP projects. the APPP will evaluate the proposed projects and adopt decisions on the possibility of implementing the proposed projects according to the PPP model.

At the same time. In the realisation of its goals. The APPP. will draw up and conduct training and education programmes for its own employees and for all other persons participating in PPPs. and bilateral assistance programmes. the MF will conduct the activities set out in the Act on Public Private Partnerships. the APPP will accede to the Business Co-operation Agreements by and between MELE and CCE. such as internships and tailor-made seminars for expert advisors and members of the Commission on the subject matter of PPPs. the APPP. in co-operation with MELE. POLITICAL CRITERIA B) KEY PRIORITIES On the entry into force of the Act on Public Private Partnerships. Regulation on the criteria for the appraisal and approval of PPP projects. the APPP will use the results achieved through the implementation of the approved IPA 2007 TWL project proposal. Ordinance on the structure and maintenance of the Register of PPP Agreements. in co-operation with other bodies of state administration. will conduct an analytical overview of the national legislation in relation to the Act on Public Private Partnerships with a view to identifying potential obstacles to the effective application of the PPP model and drawing up a proposal of any alignments that might be necessary. 2. by which the detected obstacles would be overcome and the optimal application of the PPP model ensured. 3. including establishing the required preconditions for their effective implementation. 4. especially representatives of public bodies. In the budget. 193 . By the end of the 2nd quarter of 2009. The APPP will draw up “The Guide to Public Private Partnerships” by the end of the 1st quarter of 2009. Regulation on the content of PPP agreements. stipulating the rights and obligations of the contractual parties in the procedure of monitoring the implementation of PPP projects. Regulation on the training of those participating in the procedure of preparing and implementing PPP projects. Regulation on the monitoring of the implementation of PPP projects. In the 2nd quarter of 2009.I. and MELE and CEA in the part relating to the training and exchange of experiences with the business community. the following implementing acts will be adopted by the end of the 1st quarter of 2009: 1. Administrative Capacities The plan is to recruit 10 new employees in the APPP by the end of March 2009 and 10 more by the end of 2009. there are funds in place for the recruitments planned in 2009 and also funds for the procurement of equipment and technical facilities. Activities are also foreseen in the forthcoming Twinning project “Further Strengthening of the State Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection”. Legal Protection in the Field of PPPs Activities will be conducted aimed at establishing high-quality work of the Commission in relation to review proceedings in the field of PPPs. 5.

or 77. the Ordinance provides for the possibility of submitting a request for entry into the court register also in electronic form. will continue until 31 December 2008.6.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . leading to the conclusion that the project has been very successful.1 Company Law A) ACHIEVEMENTS IN 2008 ORDINANCE ON THE MANNER OF REGISTRATION IN THE COURT REGISTER Based on the Act on Amendments to the Act on the Court Register. For the purpose of creating court registry electronic document files as prescribed by the Act on the Court Register (OG 1/95.6. The Ordinance prescribes the keeping of the ledger in both paper and electronic form. adopted in March 2007 (OG 40/07). while the “online” pilot project covers only the establishment of limited liability companies. The Ordinance further prescribes that the single database should also contain document files in electronic form as of 1 January 2009. and which is based on the Instruction on amendments to the Instruction on the conditions and manner of electronic communication with the registry court for the purpose of entering a limited liability company into the court register (OG 62/08). Zadar and Split. These data encompass the establishment of all types of companies. electronic communication with the court and the setting-up of electronic document files will be ensured by 1 January 2009. a new Ordinance on the manner of registration in the court register was adopted on 18 December 2007 (OG 134/07). while 22.45/99. By 11 December 2008. the following entities were entered into the court register: 194 . 57/96.2% of the entries took place through registration in paper form. in addition to which the programme for scanning document files has been finalised. Operations with the new programme of the court registry central database began on 14 April 2008.54/05 and 40/07). 344 legal entities were established at the Commercial Court in Varaždin through online registration.2009 3. The pilot project. and daily data entry into a single database. COMPANY LAW 3. IT equipment was delivered to all commercial courts. while 98 legal entities were established through the regular procedure. From 1 January 2008 to 30 November 2008. entitled “Online Registration”.8% of companies were entered into the court register through online registration. As of 1 January 2009. identical to the document files in paper form. determining in detail the provisions of the Act in question. which began on 30 October 2007. The project is being expanded to commercial courts in Osijek. In accordance with the Act on the Court Register and the Ordinance on the manner of registration in the court register. The Instruction on the conditions and manner of electronic communication with the registry court for the purpose of entering a limited liability company into the court register prescribes the conducting of a pilot project for establishing a limited liability company with cash equity capital in the court register of the Commercial Court in Varaždin.

353 3 142.39 14.56 8.483 Duration of establishment in days: Court Commercial Court in Bjelovar Commercial Court in Dubrovnik Commercial Court in Karlovac Commercial Court in Osijek Commercial Court in Pazin Commercial Court in Rijeka Commercial Court in Sisak Commercial Court in Slavonski Brod Commercial Court in Split Commercial Court in Šibenik Commercial Court in Varaždin Commercial Court in Zadar Commercial Court in Zagreb Total in RC Average no.24 12. of days for establishment 5.28 13.35 10.30 4.31 13.51 8.78 8.I.16 5.639 51 132.574 2.70 14.05 4.835 97 205 601 99 2 19 4.24 195 .60 20. POLITICAL CRITERIA Number and structure of registered entities Legal form Joint stock company Another person subject to registration by law Limited liability company Economic interest grouping Foreign founder General partnership Limited partnership Group of co-operatives Sole trader Institutions Co-operative Group of institutions Entities 1.

for implementing the acts in question within the scope of activities of the Ministry of Justice. storage and protection of data contained in the court register. for providing expert opinion. authorised for administrative and professional tasks concerning the drafting of proposed acts and subordinate legislation and other regulations in the field of commercial law. the adoption of the Act on Amendments to the Companies Act is planned. the Government of the Republic of Croatia issued a Decision on the appointment of members of the Financial Reporting Standards Committee.2 Accounting A) ACHIEVEMENTS IN 2008 Activities of the Republic of Croatia undertaken in the past period with the aim of alignment with the acquis communautaire in the field of accounting encompass the following: the new Accounting Act was published in the (OG 109/07) and implemented from 1 January 2008. the Ordinance on the manner of operation of the Financial Reporting Standards Committee confirmed by a Decision of the Government of the Republic of Croatia (OG 114/08). as well as security. aligned with Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies. the Minister of Finance issued an Ordinance on the manner of keeping registers of annual financial reports.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . on a proposal by the Minister of Finance. Accordingly. company law and court registry entries. and a Decision on amendments to the Decision on publishing the International Financial Reporting Standards 6 and 7 (OG 137/08). 196 . A draft proposal of the Decision of the Government of the Republic of Croatia on the conditions and manner of access to data from the court register has been planned for the last quarter of 2008 and the first quarter of 2009.6. The Financial Reporting Standards Committee adopted the Croatian Financial Reporting Standards (OG 30/08). number of employees and professional requirements for conducting tasks and activities in organisational units of the Ministry of Justice”. The Department has increased the number of its employees in accordance with the Ordinance on the internal organisation of the Ministry of Justice . and for conducting other activities entrusted to it by its director and the Head of Department.“List of positions and posts. the Minister of Finance passed an Ordinance on the structure and contents of annual financial reports (OG 38/08). and the manner of receiving and the procedure of verifying the completeness and accuracy of annual financial reports and the financial report (OG 39/08). The Act in question will also be aligned with Directive 2007/63/EC of the European Parliament and of the Council of 13 November 2007 amending Council Directives 78/855/EEC and 82/891/EEC as regards the requirement of an independent expert’s report on the occasion of the merger or division of public limited liability companies. the Department has an acting head and a senior judicial adviser. Administrative capacities The Commercial and Company Law Department has been established within the Civil Law Directorate of the Ministry of Justice. 3. while an announcement for the post of administrative adviser has been issued.2009 B) KEY PRIORITIES During the third quarter of 2009. as well as the preparation of subordinate legislation which will determine in detail court register codebooks. the Decision on amendments to the Decision on publishing the International Financial Reporting Standards (OG 130/08 and 137/08). The Commercial and Company Law Department is also responsible for conducting analyses and making proposals regarding the alignment of these regulations with the acquis communautaire.

competent for issues of public interest in accounting. 3. and in accordance with the comments of the European Commission.3 Audit A) ACHIEVEMENTS IN 2008 AMENDMENTS TO THE AUDIT ACT In the course of 2008. a group of accounting experts issued a manual entitled “Implementation of Croatian Financial Reporting Standards with tax regulations” containing the Croatian Financial Reporting Standards in their original form as published in the Official Gazette. In mid June 2008. A portion of the deed of donation resources will be used for the strengthening of administrative capacities in the accounting profession. In June 2008. The adoption of this Act also encompasses the organisation of efficient quality assurance and public supervision of the auditing profession. for the purpose of full alignment with the Eighth Company Law Directive (2006/43/EC) of the European Parliament and of the Council of 17 May 2006. the Proposal of the Act on Amendments to the Audit Act. the Ordinance on the structure and contents of annual financial reports of insurance companies (OG 31/08). The Croatian Financial Services Supervisory Agency issued a Decision on the structure and contents of annual financial reports for company leasing (OG 29/08). along with the Table of Concordance between the Eighth Directive 2006/43/EC and the Proposal of the Act in question. was submitted to the European Commission for opinion. the recruitment of new personnel has been planned with suitable qualifications and experience in the field of accounting. answers and amendments were prepared. Permanent education and professional training have been planned through the IDF deed of donation received by the Republic of Croatia from the World Bank. additionally aligning the provisions of the Act with the Eighth Directive 2006/43/EC. a package of regulations and concordance tables regarding the alignment of Croatian accounting regulations with the Fourth Directive 78/660/EEC and the Seventh Directive 83/349/EEC was submitted to the European Commission. POLITICAL CRITERIA Following the publication of the Croatian Financial Reporting Standards. In accordance with comments and remarks received from the European Commission. and the Ordinance on the structure and contents of annual financial reports of pension insurance companies (OG 94/08). in order to obtain a professional conformity assessment of the Act in question with the acquis communautaire.6. In order to improve decision-making that is in the public interest and raising public awareness. which was then resubmitted to the European Commission for analysis and opinion. Due to a large number of amendments to the Proposal of the Act. The Croatian Parliament passed the Act on Amendments to the Audit Act on 21 November 2008 (OG 139/08). it was sent for a third reading. The Manual was structured according to the Croatian Financial Reporting Standards so that the original text is followed by a comment and examples of accounting and tax treatment for each standard. B) KEY PRIORITIES In the course of 2009.I. A new department within the Ministry of Finance will be established. the activities planned encompass those related to monitoring the development of accounting theory and practice. the Proposal of the Act on Amendments to the Audit Act (OG 146/05) was prepared. and the application of each particular standard. 197 . as well as activities related to the strengthening of administrative capacities in the field of accounting. The Croatian National Bank issued a Decision on the structure and contents of annual financial reports of banks (OG 62/08).

the recruitment of new personnel with suitable qualifications and experience in the field of audit has been planned. in which the recruitment of up to 5 auditing experts is anticipated. In order to improve decision-making that is in the public interest and raise public awareness. The Project also encompasses technical assistance in the auditing profession through a professional training programme and a detailed analysis of recommendations for the Croatian Audit Chamber (particularly in relation to the professional education of the team for quality of work verification) and initiating the programme of permanent professional training (CPD) for auditors. the activities planned include the monitoring of the development of the auditing profession. Within the Ministry of Finance. In addition. In the course of 2009. Permanent education and professional training have been planned through the IDF deed of donation received by the Republic of Croatia from the World Bank. as well as activities regarding the strengthening of the public supervision of auditors. The Croatian Audit Chamber plans to employ a head of quality of work verification and his/her team. the Project of attaining the common goal of strengthening administrative capacities in the auditing profession has been planned.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . competent for issues of public interest in the auditing profession. 198 . the establishment of a new department has been planned. B) The Croatian Audit Chamber will align all acts with the provisions of this Act within 90 days. and for conducting the administrative and technical tasks of the Audit Public Supervision Committee.2009 B) KEY PRIORITIES The following activities have been planned in 2009 for the implementation of the Act on Amendments to the Audit Act (OG 139/08): A) The Public Supervision Committee will issue the Rules of Procedure of its operation within 60 days of its appointment.

199 . on the basis of a public invitation to submit applications. respectively.7. was re-appointed Director General of SIPO (OG 35/08 of 19 March 2008). and at the request of state administration bodies and other legal entities and natural persons. Copyright and Related Rights A) ACHIEVEMENTS IN 2008 Within the framework of its competence in the field of copyright and related rights. The Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were prepared and published in the official newsletter of SIPO (HGIV) and on SIPO’s website (www. particularly in connection with the latest amendments to the Act on Copyright and Related Rights from 2007. On 22 January 2008. the Ministry of the Economy. the Boards of Appeal became operational on 1 June 2008. enforce and manage intellectual property efficiently.hr). SIPO developed a series of interpretations of laws and regulations in this field. Education and Sports. MSc. Pursuant to the provisions of the Patent Act (OG 76/07 of 23 July 2007). The Act on Administrative Fees and the Regulation on amendments to the Regulation on reimbursement of fees and costs for SIPO information services (OG 77/08 of 18 June 2008) were adopted and came into force on 7 June 2008 (OG 62/08 of 30 May 2008) and 26 June 2008. the other administrative requirements for their work were also met. Close co-operation has been established with a special unit of the Government of the Republic of Croatia for a regulatory guillotine procedure (Hitrorez) regarding all laws and regulations in this field. which came into force on 12 March 2008. INTELLECTUAL PROPERTY RIGHTS On 1 January 2008. and a Guide for Applicants “How to Enforce a European Patent”. as well as the 8th edition of the International Patent Classification in Croatian. This will be a public information service centre providing expert IT assistance to all those wishing to protect. POLITICAL CRITERIA 3.7. who is in charge of this area. Pursuant to the Act on Amendments to the Act on the Structure and Scope of Central State Administrative Organisations (OG 27/08 of 5 March 2008). a new Intellectual Property Information Centre − INCENTIVE − was opened at SIPO. 3.I. Labour and Entrepreneurship took charge of the work of the State Intellectual Property Office. The Government of the Republic of Croatia adopted the Regulation on the internal organisation of the State Intellectual Property Office at its session on 6 March 2008 (OG 30/08 of 12 March 2008) and on 19 March Željko TopiÊ.dziv. as well as technical opinions and positions.International Agreements 8/07 of 24 August 2007). In 2008. the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (London Agreement) came into force on the basis of the Act on Ratification of the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (OG IA 8/07 of 24 August 2007). The Minister of the Economy.1. and in line with the structure prescribed in the new Ordinance on the internal organisation of SIPO. issued the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). In January 2008. which was formerly within the competence of the Ministry of Science. With the recruitment of the head of the Secretariat of the Boards of Appeal. In June and July the Government of the Republic of Croatia appointed the new management of SIPO. the Republic of Croatia became a full member of the European Patent Organisation on the basis of the Act on Ratification of the European Patent Convention (Official Gazette . Labour and Entrepreneurship. manuals for patent and trademark examination were published. the State Intellectual Property Office completed the legal activities that had been planned. On 1 May 2008.

13 December 1994.2009 SIPO also prepared a series of technical opinions on the legal compliance of certain activities and procedures of organisations which are approved by SIPO for the collective enforcement of copyright. The competent Minister of the Economy. Labour and Entrepreneurship adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of industrial property rights (OG 52/08). 3. The Act on Ratification of the Agreement was published in the Official Gazette. and in line with the remit of SIPO’s approval. The provisions on appeal apply mutatis mutandis to other laws in the field of industrial property. In accordance with its authorisations. With the recruitment of a head of the Secretariat of the Boards of Appeal. the Agreement between the Government of the Republic of Croatia and the European Patent Organisation on co-operation in the field of patents (the Co-operation and Extension Agreement) ceased to have effect.as drafted in Munich on 5 October 1973.hr). and the Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were developed and published on SIPO’s website (www. Collection and Distribution of Phonogram Producers’ Rights (ZAPRAF). The Agreement requires the signatory states that ratified it or acceded to it to dispense with the translation requirements provided for in Article 65 of the European Patent Convention. The provisions of the Patent Act regulating the procedure of appeal against any decisions taken by SIPO in grant procedures came into force on 1 June 2008. With the entry into force of the EPC. 10 December 1998 and 27 October 2005. and in the version amended by the Act amending Article 63 of the EPC of 17 December 1991. International Agreements (8/07). 5 December 1996.7.dziv. It was ratified by the Act on Ratification published in the Official Gazette. the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (the London Agreement) came into force. the Convention on the Grant of European Patents (European Patent Convention (EPC)) . International Agreements (8/07). SIPO also adopted a decision giving approval to the Society of Croatian Authors (DHK) to pursue the activity of the collective enforcement of public lending rights. In the course of its inspections in 2008. the Association for Protection. In 2008. the Croatian Film Directors’ Guild (DHR) and the Association for the Protection of Publishers’ Rights (ZANA). no irregularities were found and it was established that collecting societies had pursued their activities in accordance with the laws and regulations. Industrial Property Patents A) ACHIEVEMENTS IN 2008 The Patent Act and the Ordinance on patents are the main pieces of legislation regulating the field of patents in the Republic of Croatia. the Croatian Performers’ Rights Collecting Society (HUZIP). On 1 May 2008.2. and as last revised on 29 November 2000 . 20 October 1995.came into force in the Republic of Croatia. and the decisions of the Administrative Council of the European Patent Organisation of 21 December 1978. B) KEY PRIORITIES Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of copyright and related rights. in addition to the five already registered organisations − the Croatian Composers’ Society (HDS ZAMP). the other administrative requirements for their work were also met.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . On 1 January 2008. SIPO conducted inspection of collecting societies. 200 .

Labour and Entrepreneurship. respectively. Further training and professional development of employees is planned in relation to the new instruments and those that will come into force (e. In the framework of these amendments. In 2008. and the Regulation on Amendments to the Regulation on reimbursement of fees and costs for SIPO’s information services (OG 70/08) were adopted. and the Regulation on reimbursement of fees and costs for SIPO’s information services were published on 30 May 2008 (OG 62/08) and 18 June 2008 (OG 70/08). technical modification of Article 65 of the Patent Act will take place in accordance with the requirements of the Directive 98/44/EC. the institution of appeal as of 1 June 2008). it is planned to develop a national action plan for professional and technical co-operation. the Supplementary Protection Certificate). B) KEY PRIORITIES With regard to the remaining obligations in connection with the alignment of the Patent Act with the acquis communautaire. and the Regulation on reimbursement of fees and costs for SIPO’s information services.I. will not be available until the Act and the Regulation come into force. relevant adjustments are envisaged for the first quarter of 2009. These amendments completed the alignment of the Plant Variety Protection Act with the provisions of Directive 98/44/EC. which. The Republic of Croatia will continue to monitor developments in the field of the establishment of the Community patent. Thus. the Act on Administrative Fees in the Field of Intellectual Property Rights. the necessary alignment with the acquis communautaire has also been achieved in the field of intellectual property rights in line with the obligations of the 2008 NPAEU for the second quarter of 2008. it was necessary to adopt the above-mentioned pieces of legislation. however.g. special tariff numbers were introduced for actions envisaged as a result of amendments to the Trademark Act of 2007. In the framework of the implementation of full membership of EPO. Trademarks A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on Administrative Fees in the Field of Intellectual Property Rights (OG 62/08). activities were launched aimed at amending the Act on Administrative Fees in the Field of Intellectual Property Rights. adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). The Patent Search and Examination Manual was developed and published. as these laws and ordinances prescribe new procedures and introduce new legal institutions (primarily. The necessary adjustments of the Patent Act will be adopted in the second quarter of 2009 in accordance with the comments received from the European Commission. With regard to trademarks. Given that amendments to laws in the field of intellectual property rights and ordinances issued pursuant to them are being applied. who is in charge of this area. It is planned to carry out the above stated activities in the first quarter of 2009. Accordingly. POLITICAL CRITERIA The Plant Variety Protection Act and related ordinances regulate the protection of plant varieties in the Republic of Croatia. and also incorporated the provisions on compulsory mutual licences into the Act. The Rules of Procedure of 201 . The Act on Amendments to the Plant Variety Protection Act was adopted in May 2008 (OG 67/08). and is ready to take due measures to align its legal system with the development of the acquis in this field. The Minister of the Economy. The Act envisages the adoption of amendments by no later than 1 June 2009. which relate to insufficiently precise definitions in Regulations (EC) No 1768/92 and (EC) No 1610/96.

the envisaged changes in the organisation of SIPO were carried out.hr). A trademark examination manual was developed and published. In addition. with the recruitment of the head of the Secretariat of the Boards of Appeal. and the Regulation on amendments to the Regulation on reimbursement of fees and costs for SIPO’s information services (OG 70/08) were adopted. when tasks were grouped according to types of rights. with the recruitment of the head of the Secretariat of the Boards of Appeal. the other administrative requirements for their work were also met. related tasks are grouped together in formal and substantive procedures.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Labour and Entrepreneurship.dziv. B) KEY PRIORITIES As a result of informal discussions with the European Commission and certain comments in connection with the provisions enabling the extension of the effects of the Community Trademark to the territory of the Republic of Croatia and the implementation of certain specific actions in the interaction between the national and the Community Trademark (conversion). related tasks are grouped together in formal and substantive procedures. which also involved the reorganisation of the former Distinctive Marks Department that had previously been in charge of industrial design. With regard to industrial design. Industrial design is now in the remit of the Trademarks and Industrial Designs Department. special tariff numbers were introduced for actions envisaged as a result of amendments to the Trademark Act of 2007. which also involved the reorganisation of the former Distinctive Marks Department that had previously been in charge of trademarks.dziv. Trademarks are now in the remit of the Trademarks and Industrial Designs Department. who is in charge of this area. irrespective of the type of right. in contrast to the past when tasks were grouped according to types of rights. in contrast to the past. The Regulation on the internal organisation of the State Intellectual Property Office (30/08) and the related Ordinance on internal organisation were adopted. including these changes. The amendments to the Trademark Act. The Regulation on the internal organisation of the State Intellectual Property Office (30/08) and the related Ordinance on internal organisation were adopted. in order to achieve full alignment using the formulations suggested by the European Commission. irrespective of the type of right. 202 . In addition. this refers to three changes that the Republic of Croatia has undertaken to adopt in 2009. The staff of SIPO took part in the regular annual meetings of the Office for Harmonisation of the Internal Market (OHIM). Thus. with the goal of utilising expert staff more efficiently. the idea to further amend the Trademark Act was accepted. the envisaged changes in the organisation of SIPO were carried out. the other administrative requirements for their work were also met. Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of trademarks. The Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were developed and published in the official newsletter of SIPO (HGIV) and on SIPO’s website (www.hr). Thus.2009 the Boards of Appeal in the field of intellectual property rights were developed and published in the official newsletter of SIPO (HGIV) and on SIPO’s website (www. with the goal of utilising expert staff more efficiently. The fundamental change is that now. Industrial Design A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on Administrative Fees in the Field of Intellectual Property Rights (OG 62/08). will be adopted in the first half of 2009. The fundamental change is that now. adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). Specifically. The Minister of the Economy.

the idea to further amend the Industrial Design Act has been accepted. Croatia has undertaken to remove minor differences with regard to Article 17 of the Act on Protection of Topographies of Semiconductor Products in order to fully align it in the first quarter of 2009 with Article 5 of Directive 87/54/EEC in accordance with the comments received from the European Commission. and during this period a large number of envisaged strategy measures have been implemented.3. Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of industrial design. the text of the National Strategy will be reviewed accordingly. The amendments to the Industrial Design Act including this change will be adopted in the first half of 2009.7. Recommendations from the Report of the Peer Mission of European Union Member 203 . With a view to achieving full alignment with the acquis communautaire in this area. Topographies B) KEY PRIORITIES The provisions of Article 1 of the Act on Protection of Topographies of Semiconductor Products (OG 76/07) are based on the provisions of Article 3 paragraph 4 of Directive 87/54/EEC on the legal protection of topographies of semiconductor products in relation to its former (commercial) exploitation. POLITICAL CRITERIA The staff of SIPO took part in the regular annual meetings of the Office for Harmonisation of the Internal Market (OHIM). Geographical Indications B) KEY PRIORITIES Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of geographical indications. B) KEY PRIORITIES As a result of informal discussions with the European Commission and certain comments in connection with the provisions enabling the extension of the effects of the Community Design to the territory of the Republic of Croatia.I. Enforcement of Intellectual Property Rights National Strategy for the Development of the Intellectual Property System 2005−2010 According to the reports of competent bodies. with a view to consolidating it and possibly introducing some changes to the strategic measures which are to be applied during the remaining half of the implementation period. there have been no significant delays in the implementation of the Strategy measures so far. This involves one change that the Republic of Croatia has undertaken to adopt in 2009. 3. As the first half of the envisaged implementation period for the National Strategy is over. with a view to achieving full alignment using the formulations suggested by the European Commission.

e. The comprehensive document “Measuring Infringements of Intellectual Property Rights” (Report on upgrading the methodologies for the collection of statistical data and the statistical data on infringements of intellectual property rights) containing the required statistical data was submitted to the European Commission in May 2008. the Ministry of Justice has prepared models for the statistical analysis of data on infringements of intellectual property rights which are intended for courts. The programme is valued at EUR 1. The reports will be published on the website of the Ministry of Justice and will also be submitted to the State Intellectual Property Office. which reads as follows: “The Republic of Croatia should ensure sufficient administrative capacity to enforce the rights concerning the fight against piracy and counterfeit. The above-mentioned courts have received requests to monitor cases of infringements of intellectual property rights and the forms to be completed and delivered regularly to the Ministry of Justice. and independently of the protection of intellectual property rights in the field of civil law enforcement conducted by commercial courts and the High Commercial Court of the Republic of Croatia. and the Ministry of Justice. types of infringements and judgements. which include a list of statistical tables and charts of the comprehensive body of statistical data on infringements and enforcement of intellectual property rights. certain improvements were incorporated in the basic document and additional statistical data were collected. since the collection of information based on the above-stated parameters started in 2008. activities are planned under the Phare 2006 programme “Strengthening the Enforcement of Intellectual Property Rights”. Both documents will be prepared in early 2009. With a view to implementing the reviewed National Strategy. The Ministry of Justice will collect information on the court cases and prepare annual reports. The activities aimed at monitoring protection of intellectual property rights in the field of criminal law enforcement at municipal and county courts are conducted independently of monitoring protection of intellectual property rights at misdemeanour courts and the High Misdemeanour Court of the Republic of Croatia.” 204 . enabling the systematic and co-ordinated collection and processing of data in all areas of intellectual property (track record) by all bodies in charge of the protection of intellectual property rights against infringements. the Ministry of the Interior. misdemeanour courts. For the purpose of strengthening administrative capacities and institution building. municipal and county courts. prosecutions and judicial treatment of violations. the activities of the State Inspectorate focused on fulfilling the requirements of the second benchmark set by the European Union for the closing of Chapter 7 in negotiations for the accession of the Republic of Croatia to the European Union. the High Commercial Court of the Republic of Croatia and the Administrative Court of the Republic of Croatia. the State Inspectorate.63 million and its implementation started in November 2008. i. and in the framework of activities envisaged for 2007. In co-operation with the services of the European Commission. as well as the time needed for judgements to be passed. Such a model for monitoring case law in the field of infringements of intellectual property rights constitutes a significant improvement compared to the old monitoring system applied by the courts.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . including a series of tables and charts with relevant data for 2007. and provide a satisfactory statistical track record of investigation. the Ministry of Finance − Customs Directorate. and will include data for 2008. In accordance with the recommendations of the European Commission. the High Misdemeanour Court of the Republic of Croatia. The data required are monitored on a monthly basis and delivered to the Ministry of Justice on a quarterly basis. The reports will include information on the number of cases. whose beneficiaries are.2009 States of April 2008 will be taken into consideration in the course of the review. Schedules to the Report were also developed. the Republic of Croatia has developed a special methodology for collecting statistical data. commercial courts. the relevant Action Plan will be developed. apart from SIPO. For the purpose of implementing the National Strategy for the Development of the Intellectual Property System 2005−2010. The first report is to be prepared in the first quarter of 2009. STATE INSPECTORATE A) ACHIEVEMENTS IN 2008 In 2008.

with a view to efficiently identifying any potential infringements of intellectual property rights with regard to goods already placed on the market in the territory of the Republic of Croatia. MJ. in relation to the State Inspectorate. and comments were received requiring specific details in connection with the measures taken. B) KEY PRIORITIES Further strengthening of administrative capacities The National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010 envisages the following: purchase of IT equipment − an upgrade of the information system of the State Inspectorate and equipping regional units and branches of the State Inspectorate with portable computers and digital cameras.e. A needs assessment for such warehouses is to be carried out under the PHARE 2006 programme “Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia”. and judicial treatment of violations. A Supplement to the Study for the Promotion of Methodology for the Collection of Statistical Data was developed in July 2008 which. For 2009. in 2008 a working group was formed consisting of representatives from SIPO. and on temporarily seized goods. and the number of applications to institute misdemeanour proceedings pursuant to individual provisions of the laws regulating the protection of intellectual property rights. the number of pieces. Representatives of the State Inspectorate participated in the working group. in 2008. economic inspectors of the State Inspectorate. whose objective is to ensure a permanent track record of data. SAO. as ordered by the Chief Inspector and based on the 2008 Programme of Activities of the State Inspectorate. and the Customs Directorate have not been provided with warehousing space for the storage of counterfeit and pirated goods temporarily seized as a result of operations in co-operation with one another. includes data on the number of inspections conducted. and the value of goods. The Study was presented to the European Commission by representatives of the Negotiating Team for Chapter 7 in June 2008. It also includes a list of trademarks that were most often subject to infringements of rights.I. MI. Intellectual Property Department. Additionally. intensification of co-operation with the Ministry of the Interior and the Customs Directorate. which was foreseen as a short-term measure in the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010. further professional training in the area of enforcement of intellectual property rights was organised for economic inspectors and senior economic inspectors in 2008. the Ministry of the Interior. POLITICAL CRITERIA With a view to finding a solution and launching activities aimed at fulfilling the second benchmark in relation to providing a satisfactory statistical track record on investigation. CBS. In the field of strengthening the administrative capacities of the State Inspectorate of the Republic of Croatia in the field of enforcement of intellectual property rights. prosecution. carried out intensified controls of the enforcement of intellectual property rights. and the type and number of pieces by category of temporarily seized goods. The State Inspectorate. 205 . procurement of software for the implementation of supervision over computer programmes. which in May 2008 prepared the following document: Measuring Infringements of Intellectual Property Rights − Study for the Promotion of Methodology for the Collection of Statistical Data. i. intensified inspection controls of the protection of intellectual property rights are planned ex officio as a part of the programme of activities. organisation of seminars and workshops on the protection of intellectual property rights − further professional training of inspectors of the State Inspectorate. MF-CD and SIO.

Additionally. B) KEY PRIORITIES In 2009. This particularly refers to those activities aimed at defining models of co-operation in specific cases of enforcement of intellectual property rights. 206 . adopted by the Government of the Republic of Croatia on 2 August 2007. the legal instruments of customs measures aimed at protecting intellectual property rights were fully implemented in the practice of the customs. and which entered into force on 8 August 2007.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In this respect. the State Inspectorate and other competent government authorities of the national intellectual property system. In early 2008. and the exchange of information between competent authorities. in the required amount. and in line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010. as prescribed in the Regulation on amendments to the Regulation on the implementation of customs measures with regard to goods suspected of infringing specific intellectual property rights (OG 82/07). MINISTRY OF FINANCE − CUSTOMS DIRECTORATE A) ACHIEVEMENTS IN 2008 In 2008. which essentially implies a different regime in the application of customs procedures from the protection of intellectual property rights for goods in postal delivery. In 2008. This led to the defining of common principles of the relevant methodology and to activities of co-operation in the specific implementation of intellectual property rights enforcement measures. plans are in place to intensify activities focused on enhancing co-operation with the Ministry of the Interior.2009 Financing The implementation of these activities is to be financed from the funds of the PHARE 2006 programme “Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia” and partially. regular activities on the implementation of customs measures in relation to the protection of intellectual property rights will continue. from the State Budget. Protection of intellectual property rights was identified as one of the risk areas. regular activities in the implementation of customs procedures for the protection of intellectual property rights continued. and from the so-called instrument of the simplified procedure for the destruction of goods infringing intellectual property rights. co-ordinating the joint action procedures of competent authorities. a sub-system for risk management was implemented in the IT system of the Customs Directorate. in line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010. by means of strengthening and practising specific co-operation activities at the local level. activities were intensified and focused on enhancing co-operation with the Ministry of the Interior. In this respect. new Procedural Instructions of the Customs Directorate for the implementation of customs measures for the protection of intellectual property will be adopted. the State Inspectorate and other competent authorities of the national intellectual property system. which will define in greater detail the procedures within customs bodies in the implementation of measures for the protection of intellectual property. These legal instruments refer to the area of exceptions to the application of customs procedures for the protection of intellectual property rights. particularly in relation to activities aimed at harmonising the systematic monitoring of statistical data on infringements of intellectual property rights.

articles of clothing and shoes. conferences and seminars. which will continue to be one of the priorities of the Ministry of the Interior. and seminars will be organised not only for employees of the 207 . the training of employees in the area of protection of intellectual property rights will continue.I. Further professional development and training of employees of the Customs Directorate will be carried out at the Customs Training Centre and in the framework of co-operation with rights holders. With a view to developing and enhancing direct co-operation. the implementation of the above-mentioned twinning project will continue. personal vehicles. priority is given. successful co-operation has been achieved with Europol and Interpol. in 2007 and 2008 the Ministry of the Interior strengthened its co-operation with Interpol and Europol in practical terms. employees of the Ministry of the Interior attended various training courses. from the State Budget. As the majority of infringements of intellectual property rights are directly linked to the Internet. Along these lines. MINISTRY OF THE INTERIOR A) ACHIEVEMENTS IN 2008 In line with the National Strategy for the Development of the Intellectual Property System. The activities of employees of the Ministry of the Interior during the first eight months of 2008 resulted in the temporary seizure of an increased number of various objects for which there were grounds to suspect that they were proceeds of crime. For the purpose of organising and implementing as efficiently as possible activities in the field of the prevention of different forms of criminal offences relating to the infringement of intellectual property rights. with a view to improving the efficiency of detecting infringements of intellectual property rights regarding goods subject to customs procedures. 85 criminal investigations were carried out in relation to the protection of copyright. the implementation of which started in April 2008. Financing The planned activities are to be financed from the funds of the PHARE 2006 programme “Strengthening the Capacity for Enforcement of Intellectual Property Rights in Croatia” and partially. medicinal products. computers. Such photographs will be forwarded to the rights holders and other competent bodies in the implementation of intellectual property rights. so that in this respect the Ministry took an active part in arranging and planning various projects. such as the implementation of a twinning project in the framework of the PHARE 2006 programme. POLITICAL CRITERIA Co-operation with the Risk Management Department of the Central Office of the Customs Directorate will also be strengthened. and various other items. in the required amount. B) KEY PRIORITIES In 2009. and in the framework of the PHARE 2006 programme “Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia”. In this period. or were used to commit criminal offences in relation to intellectual property. it is planned to equip customs offices with digital cameras for photographing goods infringing intellectual property rights. and 25 investigations relating to industrial property. it should be mentioned that in the same period 67 criminal investigations also took place in connection with computer crime. and relevant data and information have been exchanged. In line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010. to the enforcement of intellectual property rights. as envisaged. such as digital media for the storage of data. Since almost all forms of crime relating to intellectual property have an international character. and since borders between states or even continents do not present a barrier to any of these criminal offences.

on computer-related crime. and Recommendation R(95)13 on problems of criminal procedural law connected with information technology. a study visit to Denmark and Estonia will be organised. the need for. “Evidentiary Measures”. the High Commercial Court of the Republic of Croatia. Osijek-Baranja. In 2009. which is primarily intended to address problems of computer crime. Istria and Split-Dalmatia) will be considered. Primorje-Gorski kotar. and the State Inspectorate. stresses the transnational character of cybercrime and the need to legally regulate the liability of operators.2009 Ministry of the Interior. In introducing this new type of evidence. However. In addition. Recommendation R(89)9. and the Administrative Court of the Republic of Croatia. The provisions of Chapter XVIII of the Criminal Procedure Act. and other forms of crime in the area of intellectual property. the Ministry of Justice.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Enforcement of Intellectual Property Rights The Ministry of Justice set up a system for keeping records of infringements of intellectual property rights so that statistical data are collected in connection with cases relating to infringements of intellectual property rights from misdemeanour courts. Electronic evidence (Article 331) is a new type of evidence which is expressly provided for. These data are collected continuously and sent to the State Intellectual Property Office and the Central Bureau of Statistics to be published. and co-operation with Europol and Interpol will continue. municipal courts. It is envisaged that these provisions of the Criminal Procedure Act will enter into force on 1 September 2011. or in the area of electronic data. With a view to promoting the efficiency of procedures of police officers who deal with problems relating to the protection of intellectual property rights. It should be kept in mind that Recommendation R(95)13. B) KEY PRIORITIES In 2009. two Recommendations are also relevant. have been aligned with international instruments on cybercrime. although special computerrelated criminal offences are provided for in substantive criminal law. MINISTRY OF JUSTICE A) ACHIEVEMENTS IN 2008 The draft for the new Criminal Procedure Act is currently under parliamentary procedure. These rules have been aligned with the Convention on Cybercrime (ETS 185) and its Additional Protocol (OG − IA 9/2002). In the case of electronic evidence. but also for those of the Customs Directorate. The objective was to ensure that these aspects of evidence. 208 . as well as Recommendation R(89)9 on computerrelated crime. The Draft of the new Criminal Procedure Act includes the provision of Article 263 regulating in detail the temporary seizure of objects in relation to data stored on computers and equipment connected to computers. are implemented in practice according to detailed rules. In the planning of training activities. the use of electronic evidence is highly important. the Ministry of Justice will provide funds for the training of judges dealing with cases relating to the enforcement of intellectual property rights. In all of these cases. setting up a section for computer crime and protection of intellectual property in Categories I and II of the Police Administration (Zagreb. which are growing in importance. commercial courts. on problems of criminal procedural law connected with information technology. the High Misdemeanour Court of the Republic of Croatia. special focus will be placed on organising seminars in connection with the use of the “EnCase” programme. there are also many other criminal offences committed using electronic devices. expressly regulates electronic evidence. and feasibility of. the Convention on Cybercrime (OG − IA 9/02 and 4/04) was primarily taken into account. the procurement of computer equipment (hardware and software) and the effective introduction of the necessary number of high-speed internet connections without restrictions will be examined.

the Regulation on the method of setting fines and calculation of fines. The Proposal seeks to empower the CCA to impose fines on undertakings for any infringement of competition rules and at the same time to establish judicial protection against the decisions of the CCA where one court will be given jurisdiction to review the decisions of the CCA regarding both the lawfulness of such decisions and the level of the fines imposed. due to its misleading wording. The Draft Proposal incorporates all the received relevant comments of the European Commission. This project will be followed by the 2007 IPA project whose implementation is planned to start in autumn 2009. and the Regulation on the reduction of fines and immunity from fines. it will also be necessary to introduce appropriate changes to the Courts Act. such as the short-form notification of concentration which may be used for the purpose of notifying concentrations under simplified procedure treatment for certain concentrations. 209 . to delete Article 288 from the Criminal Code which provides for the criminal responsibility of a responsible person of a legal person for abuse of a monopolistic position which is created on the basis of the conclusion of an agreement. the new Competition Act provides for a number of procedural changes. B) KEY PRIORITIES It is planned that the new Competition Act will enter into force in the third quarter of 2009.000.I. the CCA increased its staff by employing six lawyers and one economist. In addition. Strengthening administrative capacities continued through the PHARE project which will continue to be implemented until February 2009 and which in one part covers the area of antitrust and merger control. The resources from the project have been used for the purchase of IT equipment and for the establishment of a data management system. such as the Regulation on block exemption granted to certain categories of agreements in the transport sector (the adoption of which will mean full compliance with the acquis in the area of competition in the transport sector). the Croatian Competition Agency (hereinafter CCA) finalised the Draft Proposal of the new Competition Act.000. The 2007 IPA project will be implemented from 2009 to 2011 on the basis of a twinning contract worth EUR 1.1. The CCA completed the Draft Proposal in question in October 2008 and submitted it for opinion to a working group established for this purpose and to the Ministry of the Economy which is the formal sponsor of the given legal act. With regard to the changes introduced by the new Competition Act. The Act on Administrative Fees will also need to undergo necessary changes concerning the introduction of new fees and tariffs for the new proceedings which are envisaged in the new Competition Act and which will be carried out by the CCA. it will be necessary. The new Competition Act is planned to be adopted in the first quarter of 2009. Anti-trust and merger control A) ACHIEVEMENTS IN 2008 After intensified activities had been carried out relating to the revisions of the 2003 Competition Act in co-operation with the German experts within the PHARE project. The provisions introduced in the new Competition Act will ensure the establishment of an effective competition regime in Croatia.8. it will also be necessary to adopt at the same time a new Regulation on the notification and assessment of concentrations. For the sake of conformity with the revised provisions of the new Competition Act. POLITICAL CRITERIA 3. In addition. In 2008.000. together with other necessary subordinate legislation.000 and an agreement on the provision of services worth EUR 1. The training of the expert staff of the CCA and other stakeholders in the area of anti-trust and merger control ensured within the PHARE project will continue. COMPETITION POLICY 3.8. The provisions of a revised Courts Act will have to define a new court protection regime in respect of the lawfulness of the decisions of the CCA and the level of imposed fines.

The Committee consists of representatives of the Ministry of Finance. In 2008. A) ACHIEVEMENTS IN 2008 Pursuant to Article 3 of the 2006 Regulation on state aid (OG 50/06). It is important to note here that the criteria arising from the proper application of the relevant EC state aid rules are directly applicable in the Republic of Croatia pursuant to Article 70 paragraph 2 of the Stabilisation and Association Agreement between the Republic of Croatia and the European Communities and their Member States (OG 14/01. the Decision on the publication of the rules on national regional aid (OG 58/08). the Decision on the publication of the rules on state aid to small and medium-sized enterprises (OG 39/08). the Decision on the publication of the rules on state aid elements in sales of land and buildings by public authorities (OG 106/08).2. Within the meaning of the above-mentioned Regulation on state aid. 210 .8. the Decision on the publication of the rules on state aid in the transport sector (OG 141/08). and the Decision on the publication of the rules on state aid linked to stranded costs in the electricity sector (OG 150/08). and the head of the Working Group in the accession negotiations covering Chapter 8: Competition policy. upon the proposal of the Minister of Finance. The above Decision on the publication of the lists of state aid rules has been twice subject to changes and updated (OG 45/07 and OG 13/08). In 2007. 1/05. following the decision on the publication of such rules by the Government of the Republic of Croatia. the Decision on the publication of the rules on the application of the State aid rules to measures relating to direct business taxation (OG 46/08). The publication of the rules concerned has been undertaken exclusively with a view to achieving full transparency and effectiveness of the national state aid regime. In addition. 7/05 and 11/06. the Decision on the publication of the rules on state aid to short-term export-credit insurance (OG 39/08).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Decision on the publication of the rules on state aid in the shipbuilding sector (OG 154/08). the Decision on the publication of the rules on state aid for employment (OG 68/08).2009 3. the Decision on the publication of the rules on state aid for training (OG 68/08). the government adopted the following decisions: the Decision on the publication of the rules concerning state aid for rescue and restructuring (OG 20/07). the Decision on the publication of the rules on state aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OG 39/08). the Decision on the publication of the rules on state aid for the steel sector (OG 134/08). the Government of the Republic of Croatia. 14/02. the Decision on the publication of the rules concerning state aid for research and development and innovation (OG 96/07). the Decision on the publication of the rules on state aid for environmental protection (OG 154/08). and given that preparation for the publication of the rules requires expertise in the area of state aid. the Decision on the publication of the rules on state aid relating to cinematographic and other audiovisual works (OG 46/08). State Aid State aid control in the Republic of Croatia is regulated by the State Aid Act (OG 140/05) and the Regulation on state aid (OG 50/06). the following decisions were adopted: the Decision on the publication of the rules on state aid in the form of guarantees (OG 13/08). SAA). Thus. the Decision on the publication of the rules on state aid to promote risk capital investments in small and medium-sized enterprises (OG 91/08). the Decision on the publication of the rules on state aid relating to postal services (OG 46/08). the Decision on the publication of the rules on state aid to public service broadcasting (OG 68/08). the Decision on the publication of the rules concerning de minimis aid (OG 45/07). the CCA. the Decision on the publication of the rules on financial transparency within public undertakings (OG 58/08). adopts decisions on the publication of the lists of relevant rules and particular state aid rules referred to under Article 2 of the Regulation concerned. in 2006 the Croatian government adopted the Decision on the publication of the lists of state aid rules (OG 121/06). and the Decision on the publication of rules concerning state aid for environmental protection (OG 98/07). the Minister of Finance has appointed a Committee for monitoring and preparing the lists of rules to be published and particular state aid rules. the Regulation on state aid ensures the alignment of the Croatian state aid subordinate legislation through the publication of the relevant EU state aid rules translated into Croatian in the Official Gazette.

000 for the textiles industry and HRK 29. with the aim of adopting measures to raise the competitiveness of Croatian industry. the CCA has mobilised the majority of its resources and focused on fulfilling the commitments deriving from the SAA and complying with the benchmarks set in the EU negotiation process. particularly those in the shipbuilding and steel sector.o. 211 .d. where aid for research and development and sector specific strategies will be particularly represented. the State Aid Sector of the CCA employed one new economist. The CCA also received assistance in handling the most complex cases. the Ministry of the Economy. the remaining state aid rules are to be published (such as the Decision on the publication of the rules on state aid in the form of guarantees. in particular as regards state aid to the steel sector”. is also the List of state aid authorised to Croatian steelworks in the period from 2002 to March 2007. A constituent part of the Restructuring Programme for the Croatian Steel Industry from 2007 to 2011. The Operational Programmes will be authorised by the CCA. Strengthening of administrative capacities continued with the support of German experts through PHARE 2005 which in one part also covers state aid. particularly those relating to the restructuring of the shipbuilding industry in Croatia. the CCA established that in line with the relevant state aid rules and Protocol 2 of the SAA the amount and intensity of state aid are limited to the minimum required to restore viability and to cover the restructuring costs necessary to enable the restructuring of the Croatian steel sector. Labour and Entrepreneurship developed the Operational Programme for the Textiles Industry and the Leather and Footwear Industry for 2008 which is based on the adopted Strategy for the Development of the Textiles Industry and the Leather and Footwear Industry. In 2008. It is necessary to draw up Operational Programmes for the award of state aid in all sectors based on sector specific strategies. State aid will be granted in line with the state aid rules. POLITICAL CRITERIA In the area of state aid. The aid has been awarded following a public tender procedure. the European Commission states that “some progress has been achieved on this chapter. The new private investors have assumed the majority of the outstanding liabilities under the loans covered by state guarantees and committed themselves to new investments in the technological development of the steelworks.o. The Operational Programme provides for aid to foster regional development and training aid in the amount of HRK 100. revised state aid rules in the transport sector and the General Block Exemption Regulation). B) KEY PRIORITIES In 2009. Strengthening the administrative capacities of the State Aid Division of the CCA will continue through the PHARE project until February 2009. No new state aid has been awarded to steelworks after 1 March 2007.000. which was adopted in its revised version by the Government of the Republic of Croatia at its session of 30 June 2008.000. based on the Lisbon Strategy but also within the framework and deadlines feasible for Croatia. In the Croatia Progress Report for 2008. The level of state aid granted to steelworks in the privatisation process is in accordance with the share sale agreements and is significantly lower than the aid which had been envisaged by the national restructuring programme if these steelworks had remained state owned. In its Opinion of 17 June 2008 on the business plan and the viability plan of the CMC Sisak d.I.000 for the leather and footwear industry. All the state aid rules are planned to be published in the first quarter of 2009. In September 2008. undertakings. the CCA adopted the Annual Report on State Aid for 2007 (detailed amounts of state aid are provided under Section 3: Economic Criteria). In 2008. the CCA authorised the aid schemes in question. With its decision of 2 October 2008. to be followed by the IPA project 2007 starting in autumn 2009. The Industrial Policy Strategy of the Republic of Croatia envisages state aid for sector specific projects and raising competitiveness through research and development and innovation programmes. and Željezara Split d.

3. EUROSTAT authorised the National Classification of Territorial Units for Statistics − NUTS II and in April 2008 the CCA issued its positive opinion on the proposed Decision of the Government of the Republic of Croatia on the regional aid map which was finally adopted by the Government of the Republic of Croatia on 2 May 2008. which allows for the implementation of legislative acts covering state aid.2006). fully comply with the relevant state aid rules within the meaning of the binding decision taken by the CCA (OG 83/08). 2. the Act on Hilly and Mountainous Areas. used investment aid and tax relief for free zone users (OG 122/08) was also adopted. Fiscal aid A) ACHIEVEMENTS IN 2008 In 2008. measured in purchasing power standards of the EU-25 average for three years. from 2000 to 2002. Labour and Entrepreneurship were fully adjusted to the acquis. 3. such as the Investment Promotion Act. Within the meaning of the data available from the Croatian Central Bureau of Statistics concerning per capita gross domestic product (GDP). and the Act on Areas of Special State Concern (OG 86/08) which was adopted by the Croatian Parliament on 15 July. Full alignment of the fiscal measures contained in the above-mentioned aid schemes with the relevant acquis has been conducted in such a way that tax benefits have been aligned with EU rules on de minimis aid. in accordance with the adopted regional aid map: 1. the aid ceiling for regional aid in these regions must not exceed 50% GGE for large companies. The decision also complies with Article 70 of the SAA. the fiscal aid measures falling under the jurisdiction of the Directorate for Investment Promotion and Export of the Ministry of the Economy.8. The Act on the Amendments to the Free Zones Act (OG 85/08) was adopted in June 2008.1. attempts will be made for the state aid policy to be focused on the allocation of state aid to horizontal objectives and regional development. and for small enterprises by 20 percentage points. Further progress has been achieved in alignment with the acquis in the area of fiscal aid in relation to tax benefits for corporate taxpayers as specified in the Act on Areas of Special State Concern. The intention behind the further allocation of horizontal aid is to increase its share in the total amount of state aid while meeting the overall objective of ‘less and better targeted aid and efficient allocation of resources to foster economic growth within the existing EU state aid criteria. Thus.49% of the EU-25 average. Thus. the whole territory of the Republic of Croatia is divided into three NUTS level II geographical units which may be granted state aid under the derogation provided under Article 87(3)(a) of the EC Treaty.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The given fiscal aid measures fall under the Investment Promotion Act and the Free Zones Act. the Amendments to the Act on Reconstruction and Development of the Town of Vukovar (OG 80/08) and the Act on Amendments to the Act on Hilly and Mountainous Areas (OG 80/08) which were adopted by the Croatian Parliament on 2 July 2008.2.15% of the EU-25 average and thus the aid ceiling for regional aid must not exceed 40% GGE (gross grant equivalent) for large companies. Northwest Croatia has a per capita GDP of 53. 3. published in OG 35/07 on 2 April 2007. and the Act on Reconstruction and Development of the Town of Vukovar. In March 2007. In other words. the Adriatic coast of Croatia has a per capita GDP of 39. the population data of the Republic of Croatia at NUTS II geographical units and the National Classification of Territorial Units for Statistics. 212 . Central and East (Pannonian) Croatia has a per capita GDP of 31.37% of the EU-25 average. The above-mentioned decision is consistent with the Guidelines on national regional aid for 2007 − 2013 (OJ C 54. The aid ceiling may be increased by 10 percentage points for medium-sized enterprises. and in October 2008 the Ordinance on the method of calculation of realised investments.2009 As in previous years. 4.

Labour and Entrepreneurship. In line with Article 6 of the State Aid Act and Protocol 2 of the SAA.o. and established that the total amount of state aid awarded to the CMC Sisak d.o.572. the CCA adopted Conclusions on suspending procedures of authorising state aid included in the shipyards’ restructuring plans initiated on the basis of a request by the Ministry of the Economy. POLITICAL CRITERIA B) KEY PRIORITIES The Ministry of Regional Development.693. i.2. Legally speaking. In July 2008. no new state aid was awarded to steelworks. Brodosplit.2. 3. In 2008. the privatisation process appears as a preliminary issue in the procedure that the CCA is conducting pursuant to the provisions of the State Aid Act. Brodogradilište Kraljevica and Uljanik.d. a soft loan and a debt write-off in the period from 2002 to 28 February 2007 totalled HRK 19.o. the total amount of state aid granted through claim write offs. its legal successor CMC Sisak d. Maj.8. and committed themselves to new investments in the technological development of the steel works. In the case of restructuring aid for the Željezara Split d.38. the Government of the Republic of Croatia adopted the Decision on the privatisation of the following Croatian shipyards under majority state ownership: 3. state guarantees and soft loans in the period from 2002 to 28 February 2007 amounted to HRK 221.8. the new owners of the steel works assumed the majority of the outstanding liabilities under the loans covered by state guarantees.o.I.o. Before the tender announcement is published. company by way of state guarantees. Brodotrogir. Steel A) ACHIEVEMENTS IN 2008 The revised Restructuring Programme for the Croatian Steel Industry from 2007 to 2011 was adopted by the Croatian government on 30 June 2008. Shipbuilding With a view to ensuring the implementation of the restructuring process on 21 May 2008.36. The drafting of tendering documents is underway. Under the Restructuring Programme in question.117. without resolving this issue. The given ordinances are planned to be adopted in the first quarter of 2009. 213 . This is in compliance with the above Decision of the Croatian government which stipulates that the privatisation of the shipyards will be carried out in line with specific rules contained in the Privatisation Act. the CCA assessed state aid for the restructuring of the steel sector in June 2008. and it is expected that the tenders will be published in the first quarter of 2009. since.825.2. Forestry and Water Management is drafting subordinate legislation in the form of ordinances to define in detail the eligibility of taxpayers for incentives (tax relief) as laid down in the above-mentioned laws containing fiscal measures.. company.o.2. The main objective of the privatisation process in the shipbuilding sector is to restore the long-term viability of the shipyards within the meaning of the rules on state aid for restructuring of companies in difficulty applicable in the EU.e. tax and contributions write offs. the procedure of approving state aid based on the existing individual restructuring plans drawn up by the managements of the shipyards cannot be completed. 3. B) KEY PRIORITIES The monitoring of the implementation of the restructuring plan for the steel sector will continue in line with the adopted Restructuring Programme for the Croatian Steel Industry from 2007 to 2011. undertaking. The CCA assessed state aid for the Valjaonica cijevi Sisak d. it is necessary to establish the basic principles of privatisation.

2009 Along with the activities relating to the restructuring and privatisation process in the shipbuilding sector. B) KEY PRIORITIES Detailed principles for the privatisation and the content of tender documentation will be established with the representatives of the European Commission. further alignment with the relevant EU rules for state aid for shipyards has been achieved.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . whereby the shipyards will be sold to private investors who must satisfy the specific criteria and offer viable restructuring plans to ensure the long-term viability of the shipyards under market conditions. The Ministry of the Economy. Labour and Entrepreneurship and the Croatian Privatisation Fund that the privatisation process has been completed and after the relevant investment plans. Labour and Entrepreneurship drafted the aid scheme for experimental development and innovation in the shipbuilding sector which was authorised by the CCA on 27 June 2008 and adopted by the Croatian Government on 31 October 2008. The ultimate objective of privatisation is successful restructuring. 214 . The authorisation process concerning state aid for the shipyards in question will be resumed after the CCA has been informed by the Ministry of the Economy. The aid scheme is in compliance with the SAA and is aimed at fostering innovation in the shipbuilding industry. business plans and other necessary documentation have been submitted to it in conformity with the valid state aid rules.

net assets Savings and loan co-operatives Leasing companies Total 78.9. accounting for 1.2 billion at the end of the first half of 2008. and the Ministry of Finance. Table 1 Share of financial institutions in total assets at the end of the period9 2005 Banks Open-end investment funds.5 4.1 billion at the end of 2007 to HRK 348.6 4. with 90.0 Total bank assets rose from HRK 345. the share of bank assets in total assets of all financial intermediaries increased in 2008 as a result of a fall in the value of assets of investment funds (Table 1).5% of total assets of all financial intermediaries at the end of June 2008.1 0.8 100.3 1. the Croatian Financial Services Supervisory Agency.I.9 3.9 1. The ratio of domestic to foreign owners of banks and housing banks has been stable for some time now. there were 5 housing savings banks operating in the Republic of Croatia.2 0. net assets Voluntary pension funds. is the result of central bank measures aimed at restricting placements growth and the appreciation of the exchange rate of the kuna. At that point.2 0. The number of savings and loan co-operatives has been falling steadily by virtue of their obligatory transformation.4 6. Banking The financial sector in the Republic of Croatia is centred on banks.4 1.4 4.5 100.9 6. The 1% growth in the first half of 2008.2 100.1 0. In terms of the share in total assets of all financial intermediaries.1 5. Consolidation in the banking sector (Table 2) in the past few years has brought the number of banks down.9.7 4. POLITICAL CRITERIA 3. by the end of 2008. net assets Closed-end investment funds.4% of total assets of all financial intermediaries.0 1.69% of their total assets being in foreign ownership at the end of June 2008 (Table 3).7 5.7 1. Following a fall in the banks’ share in total assets of all financial intermediaries up to the end of 2007. 215 . net assets* Insurance undertakings Housing savings banks Compulsory pension funds.0 0.5 6.4%. with total bank assets accounting for 75.5 0.1. declining to 33 institutions by the middle of 2008.4 4. while savings and loan co-operatives accounted for 0. to either savings banks or credit unions.4 6.8 0. to the benefit of an increase in the share of investment and pension funds.5 6.9 2.4 4.4 5. compared to the end of 2007.9 100.6 0.0 2007 73. FINANCIAL SERVICES 3.0 June 2008 75. housing savings banks came next. pursuant to the Act on Amendments to the Banking Act (OG 141/06) and the Credit Unions Act (OG 141/06).0 2006 76.1 1. 9 Sources: the Croatian National Bank.0 1.0 1. The reason for the fall in the value of assets of investments funds lies in the reduction in the number of investors due to their decreasing preference for investments of this kind.

80 4.98 90.03 91.53 91.97 90.42 0.57 59.5 Hungary 1.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .69 59.3 Italy 1.69 At the end of June 2008. pursuant to the Decision on consolidated financial reports of a banking group (OG 17/03 and 149/05).10 0.02 9.32 20.32 90.18 19.41 0.47 8. Foreign ownership 1.89 0.04 3.31 Foreign ownership 19 15 14 19 20 20 Share in total assets of banks and housing savings banks (%) 91.4 Luxembourg 1.6 San Marino 2. which made it possible for savings and loan co-operatives to be transformed into savings banks and for the establishment of savings 216 . Table 3 Number of banks (domestic / foreign ownership) and share in total assets as at 30 June 2008 Banks and housing savings banks according to ownership Number of banks and housing savings banks 2007 June 2008 20 10 1 6 1 1 1 15 3 38 Share in total assets of banks and housing savings banks (%) 2007 90. in December 2006 the Act on Amendments to the Banking Act (OG 141/06) was adopted.48 100.04 3.2009 Table 2 Number of banks (domestic / foreign ownership) and share in total assets Year 2003 2004 2005 2006 2007 June 2008 Croatian ownership 22 22 20 19 18 18 Share in total assets of banks and housing savings banks (%) 8.00 1.23 4. Domestic private ownership 3.28 4.63 100.2 France 1. Business operations of the parent bank in a group accounted for the bulk of consolidated business operations of all banking groups. there were nine banking groups operating in the banking sector whose operations are reported to the CNB by their parent banks.83 4.42 7.91 7.68 9. State ownership Total 20 10 1 6 1 1 1 15 3 38 A) ACHIEVEMENTS IN 2008 Alignment with the Capital Requirements Directive In the process of aligning the business of existing savings and loan co-operatives with the acquis communautaire relating to the pursuit of the business of credit institutions.00 June 2008 90.1 Austria 1.03 9.97 8.

and 4 savings and loan cooperatives merged with the largest savings and loan co-operative. 43 savings and loan co-operatives opted for transformation into savings banks. continuing operations as credit unions. Directive 94/19/EC on deposit-guarantee schemes. the Croatian Parliament adopted. for the possibility of establishing credit unions. However. on 26 September 2008. POLITICAL CRITERIA banks. At the same time. credit institutions are required to have a minimum capital adequacy of 12%. i. 217 . Including. 12 savings and loan co-operatives did not fulfil the conditions for transformation into a savings bank and their applications were refused. and a range of other subordinate legislation based on the new Credit Institutions Act. The processing of eight applications from savings and loan co-operatives for transformation into savings banks currently underway will be completed by the end of 2008. and 2 applications for establishing a credit union. by September 2008 the Croatian National Bank had issued the following decisions: 1 savings and loan co-operative was transformed into a savings bank and one savings bank was established. According to preliminary data. in co-operation with FMA. allowing for savings and loan co-operatives to be aligned with the said Act.I. Directive 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions. the Austrian supervisory authority. insurance undertakings and investment firms in a financial conglomerate. 18 applications from savings and loan co-operatives to continue operating as credit unions were granted. Directive 2002/87/EC on the supplementary supervision of credit institutions. as were two applications for establishing a credit union. Banca d’Italia. The Act on Amendments to the Deposit Insurance Act14 was adopted by the Croatian Parliament on 15 October 2008 (OG 119/08) and the Financial Conglomerates Act15 on 5 December 2008. and decisions from 61 savings and loan co-operatives on the initiation of voluntary liquidation procedures. Based on the applications received from savings and loan co-operatives for transformation into savings banks. or establishing a credit union. a number of technical meetings were held relating to the implementation of the CRD by parents of banks in Croatia. The Croatian National Bank plans to adopt subordinate legislation regulating in detail the calculation of the capital adequacy of credit institutions. Directive 1998/26/EC on settlement finality in payment and securities settlement systems.11 up to the end of 2008. pursuit of and prudential supervision of the business of electronic money institutions. Technical assistance relating to the supervision of market risk was provided to colleague supervi- 10 11 12 13 14 15 The Capital Requirements Directive comprises Directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions and Directive 2006/49/EC on the capital adequacy of investment firms and credit institutions. while the members of the subgroup for economic capital participated in meetings for the introduction of the model in Italian banking groups operating in the Republic of Croatia. 18 applications to continue operations of savings and loan cooperatives as credit unions. a notification on the merging of 4 savings and loan co-operatives. Under this Act. Under the organisation of the Italian supervisory authority.e. in addition to the CRD. The Credit Institutions Act (OG 117/08) implementing the Capital Requirements Directive (CRD10) in the part relating to credit institutions was adopted by the Croatian Parliament on 26 September 2008. the Electronic Money Institutions Act12 (OG 117/08) and the Act on Settlement Finality in Payment and Financial Instruments Settlement Systems13 (OG 117/08). In 2008. Directive 2000/46/EC on the taking up. while 24 opted to dissolve and go into voluntary liquidation. by September 2008 37 savings and loan co-operatives had changed their minds and chose to go into voluntary liquidation. 37 opted to align with the Act and continue operating as credit unions. the members of the subgroup for operational risk participated in meetings relating to the implementation of the AMA model by Italian banks in the Republic of Croatia. transposition of the provisions of Directive 2001/24/EC on the reorganisation and winding up of credit institutions. in the course of the licensing procedure. The Croatian National Bank thus received in total: 21 applications for the transformation of savings and loan co-operatives into savings banks and one application for establishing a savings bank. and Council Directive 89/117/EEC on the obligations of branches established in a Member State of credit institutions and financial institutions having their head offices outside that Member State regarding the publication of annual accounting documents. the members of the working group for the IRB approach in calculations of capital requirements for credit risk participated in meetings and prevalidations of Austrian banks present in the Republic of Croatia. the Credit Unions Act (OG 141/06) was also adopted. In addition to the Credit Institutions Act. Thus.

Since May 2007.2009 sors from Montenegro. while colleagues from the German central bank held a workshop in the CNB on the type and supervision of market risks management models. the regulation adopted by the CNB in 200616 is still in force. a Working Committee for Financial System Supervision was established to co-ordinate the procedures and activities of the signatories to this Agreement. To ensure a specialist approach to the supervision of bank operations. Supervision statistics Responsibility for on-site supervision of banks in the Prudential Regulation and Bank Supervision Area of the Croatian National Bank lies with the On-Site Risk Management Supervision Department and the Specialised On-Site Supervision Department. it can be said that the CNB maintains regular contacts and co-operation on various issues relating to CRD legislation and implementation and regular supervisory issues with all supervisors with whom it has signed memoranda of understanding. the French and German banking supervisors. As regards credit risk. information technology and mathematics were recruited by the CNB in 2008. and Hungary. with a view to achieving better management of currency induced credit risk (CICR) in light of the significant euroisation of bank assets. largely based on the foreign borrowing of banks from their parents. Memoranda of understanding Based on the Agreement on Co-operation between the Croatian National Bank and the Croatian Financial Services Supervisory Agency signed in October 2006. The measure was further tightened in July 2007 (OG 132/07) and March 2008 (OG 29/08). Other changes in subordinate legislation To help reduce credit growth. i. Under this regulation. as well as between the Croatian National Bank and the central bank of San Marino. the currency in which they realise their income is not matched with the currency of the placement. the Croatian National Bank issued two Decisions on Amendments to the Decision on the capital adequacy of banks (OG 130/07 and 31/08). whose annual placements growth in 2007 exceeded 12%. and to perform tasks related to preparations for new legislation. 16 Decision on Amendments to the Decision on the capital adequacy of banks (OG 149/05) and Decision on Amendments to the Instruction for the uniform implementation of the Decision on the capital adequacy of banks (OG 41/06). respectively. and in this context. Italy.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Restriction of banks’ placements growth was also achieved through appropriate capital adequacy requirements as a precondition of growth. the Agreement on Co-operation and Exchange of Information in the Area of Anti-money Laundering and Combating of Terrorism Financing was signed in August 2006. greater weighting is used for credit risk in the calculation of the capital adequacy of banks for exposure to clients with an unmatched currency position. In general. in co-operation with the Ministry of Finance. to subscribe to CNB bills in an amount equal to 50% of the excess. In addition. The basis for co-operation with supervisors of banks in foreign ownership are memoranda of understanding concluded with home supervisors from Austria. The Agreement on Co-operation in the Area of Competition in the Banking and Financial Services Market has been in force since 2005. preparations were launched towards the conclusion of a memorandum of understanding between the Croatian National Bank and Commission Bancaire. while the memorandum of understanding concluded with supervisors from Bosnia and Herzegovina deals with the activities of host supervisors. experts in law.e. Prompted by the entry of new foreign shareholders in the ownership structure of banks in the Republic of Croatia. and Bundesbank and BaFin as. 218 . at the end of 2006 the Croatian National Bank (CNB) introduced a measure of credit control obligating banks. it should be stated that. a better insight into credit risk when granting new placements has been made possible for the founding banks of the Croatian Registry of Credit Obligations (HROK) which provides information on the credit history of their clients.

40 employees.065 A large number of employees responsible for the conduct of on-site supervision were also engaged in 2007 and 2008 on the drafting of regulations for the transposition of the CRD.933. The number of employees actively participating in on-site supervisions (at the end of 2007.478 4.882.813.42 4.067. During 2008.087 2007 4 30 34 192. in the middle of 2008. POLITICAL CRITERIA Table 4 Number of employees in the Prudential Regulation and Bank Supervision Area Number of employees Organisational unit 31 December 2005 4 11 22 27 22 8 94 31 December 2006 5 12 22 32 21 7 99 31 December 2007 6 11 23 29 22 10 101 30 June 2008 6 12 22 28 23 11 102 Prudential Regulation and Bank Supervision Area (PRBSA) Prudential Regulation and Banking System Analysis Department Specialised On-Site Supervision Department On-Site Risk Management Supervision Department Prudential Analysis Department Licensing and Market Competition Department Total: An overview of the total number of on-site supervisions of business operations. It has been estimated that the amount of time dedicated to the training of PRBSA employees up to the end of 2008 will remain almost equal to that in 2007. it should be noted that. until the final adoption of all the regulations that are to bring about full alignment with the provisions of the CRD. 32 employees) was used in the statistical analysis. However.590.465. their additional tasks notwithstanding. 219 .811.084 3.11 2006 4 34 38 290. Table 5 Number of on-site supervisions and assets supervised (total and per employee) On-site supervisions Supervision of overall operations Supervision of individual segments of operations Total number of on-site supervisions Assets supervised in on-site supervisions (in HRK thousands) Assets supervised in on-site supervisions per employee (in HRK thousands) 2005 0 33 33 213. Their efforts in this context will continue in the next period.415.449.555.887 30 June 2008 6 16 22 110. total bank assets supervised in on-site supervisions as well as data on assets supervised per employee is presented below.I. greater attention was paid to introducing the employees of PRBSA to legislation whose implementation was pending. these employees managed to complete the majority of the planned on-site supervision activities.117 8.

This subordinate legislation includes the following:17 Table 7 List of new subordinate legislation No. 17. 10. 18. 8. 11.048 636 321 10. 3.411 3. 6. Title of new subordinate legislation Decision on the capital adequacy of credit institutions Decision on own funds of credit institutions Decision on the classification of placements and off-balance sheet liabilities of credit institutions Decision on liquidity risk management Decision on the management of interest rate risk in the non-trading book Decision on the internal capital adequacy assessment process for credit institutions Decision on public disclosure of compliance with prudential requirements by credit institutions Decision on the method of exercising supervision of credit institutions and imposing supervisory measures Decision on the supervision of a group of credit institutions on a consolidated basis Decision on financial reports of credit institutions (FINREP) Decision on reports on own funds and capital requirements of credit institutions Decision on large exposures of credit institutions17 Decision on limits on credit institutions’ holdings in non-financial institutions and holdings of tangible assets Decision on detailed conditions for the establishment.467 2. 2. 13.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 220 .572 3.336 B) KEY PRIORITIES Planned for adoption by the end of 2008 is the draft subordinate legislation based on the Credit Institutions Act which is to regulate in more detail the business of credit institutions as from the year 2009. the Decision on large exposures is to implement the amendments to the CRD currently taking place in Member States.220 884 215 8. 16.021 2007 416 1.229 1.512 2.008 80 208 3.584 2.599 2006 1.725 376 512 7.631 1.172 30 June 2008 240 460 1. 7. 4.340 1. 15. 5. 9. 14. 12. operation and dissolution of branches of third-country credit institutions in the Republic of Croatia Decision on representative offices of credit institutions with registered offices outside the Republic of Croatia Decision on the criteria and procedure for granting prior approval of the Croatian National Bank for the appointment of the chairperson or a member of the management board of a credit institution Decision on internal control systems Decision on risk management 17 In accordance with the June 2008 recommendation of the European Commission.2009 Table 6 Number of training hours of PRBSA employees Department/Area Prudential Regulation and Banking System Analysis Department Prudential Analysis Department On-Site Risk Management Supervision Department Specialised On-Site Supervision Department Licensing and Market Competition Department Area Total Total hours of training 2005 1.033 1. 1.

insurance. Decision on the contents of audits of credit institutions Decision on outsourcing Decision on the effective interest rate of credit institutions and credit unions and on service contracts with consumers Decision on the obligation to make provisions for litigations conducted against a credit institution Decision on submitting reports about borrowers whose debt to a credit institution exceeds a specified amount Taking into account the legislation which is already being drafted. HANFA’s funding in 2008 came from fees for services rendered and fees from income and assets of supervised entities and not from the state budget.2. both domestic and foreign. as a banking supervisory authority. seminars and workshops are planned to be held for all the employees of the Prudential Regulation and Bank Supervision Area and representatives of banks and auditors to ensure an optimum level of transparency and preparedness for the new legislation. The primary objective is the implementation of regulations that will enter into force during the said period. As at 30 September 2008. the number of newly established insurance undertakings continued their trend upwards in 2008. factoring. and as a result of the growing competitiveness of Croatian insurance undertakings and the increased quality and range of insurance products and services.e. and the provision of information to consumers. The main objectives of HANFA are the promotion and preservation of the stability of the financial system and supervision of the legality of operations of supervised entities. the Agency for the Supervision of Pension Funds and Insurance Companies. and is accountable to the Croatian Parliament. HANFA is obligated to submit to the Government of the Republic of Croatia and the Croatian Parliament a report on its activities in the previous year and on the condition of the financial institutions and markets that fall within its scope of activity and competencies. priority in supervisory activities will be given to the promotion of co-operation with other supervisory authorities. Insurance The Croatian Financial Services Supervisory Agency (hereinafter: HANFA) was founded by virtue of the Act on the Croatian Financial Services Supervisory Agency (OG 140/05) and started operating on 1 January 2006. the CNB. HANFA is an independent legal person with public authority within its scope of activity and competencies. compared with the end of 2007. 3. 22. In the context of drafting legislation for the implementation of the CRD. Further activities will also take place in the alignment of the existing regulations in the field of banking with the changes introduced by the new International Financial Reporting Standards. pension and investment funds. HANFA unites three institutions: the Croatian Securities Commission. 23. the securities market. As at early October 2008. POLITICAL CRITERIA 19. With the date of Croatia’s entry into the EU approaching. Once a year. In the accomplishment of these objectives. i. as prescribed by the Act on the Croatian Financial Services Supervisory Agency (hereinafter: the Act) and other legislation. The total assets of the insurance market in the Republic of Croatia was HRK 23. there were 25 licensed insurance and 2 licensed reinsurance companies operating in Croatia. and pension insurance companies. This is an increase of 2 insurance undertakings in 2008.9. 21. continually works towards improving its supervisory approach.2 billion at the end of 2007 and HRK 25. market risk. placing greater emphasis on the supervision of risk management (credit risk. HANFA had a staff of 121 employees. As regards efforts to promote bank reporting pursuant to the new legislation.9 billion on 221 . In that context. information technology and the implementation of the measures of monetary and exchange rate policies. 20.I. liquidity risk) and the supervision of the system of internal controls. and the Insurance Companies Supervisory Authority. trust building among the participants in the financial market. the CNB held four workshops in the period from May 2007 to October 2008 to acquaint the banks with the future requirements in respect of financial and statistical reporting to the CNB and to enable them to prepare their information systems on time. and leasing. it is guided by the principles of transparency. HANFA is responsible for the supervision of the non-banking financial system.

2% Table . Italy 1.8% 45. there were two insurance groups operating as at 30 September 2008 whose business is reported to HANFA on a semi-annual basis by the leading insurance undertakings pursuant to the Ordinance on the supplementary supervision of insurance groups (OG 132/06).7 billion on 30 September 2008. The Netherlands 1. Table .5 billion at the end of 2007 and HRK 7. 2008 Domestic ownership 10 11 11 Share in total assets of insurance and reinsurance undertakings 62. which points to steady growth in the insurance market compared to the previous period.4% 38.7% 47.Number of insurance and reinsurance undertakings (domestic/foreign ownership) and share in total gross written premiums Year Domestic ownership Share in total gross written premiums of insurance and reinsurance undertakings 66.2% 40.1.2% 54.3% 2006 2007 Sept.Number of insurance and reinsurance undertakings (domestic/foreign ownership) Insurance and reinsurance undertakings in terms of ownership 2007 1.2009 30 September 2008.8% 59. Austria 1.8% Foreign ownership 12 14 16 Share in total assets of insurance and reinsurance undertakings 37.4.2 billion in the first nine months of 2007.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .Number of insurance and reinsurance undertakings (domestic/foreign ownership) and share in total assets Year 2006 2007 Sept. 2008 10 11 11 12 14 16 In the context of the insurance market. 2008 16 7 1 1 2 222 .6% 61.3% 52. gross written premiums of insurance and reinsurance undertakings stood at HRK 9. Germany 14 6 1 1 1 1 No. Foreign ownership 1.5. France 1. of insurance and reinsurance undertakings Sept.3. The business of leading insurance undertakings accounted for the bulk of the total business of groups.7% Foreign ownership Share in total gross written premiums of insurance and reinsurance undertakings 33. At the same time.2. given that written gross insurance premiums stood at HRK 7. Table .

6. Compulsory vehicle owner or user liability insurance policies can be taken at 30 vehicle technical examination centres. Domestic private ownership 3. and the Companies Act (OG 111/93. In 2008. 101. A) ACHIEVEMENTS IN 2008 The legal framework of the insurance market in the Republic of Croatia is provided by the Civil Obligations Act (OG 35/05. the Audit Act (OG 146/05). the Accounting Act (OG 109/07). Legislative measure Ordinance on the Metology for calculating the amounts retained by insurance undertakings in the tables of maximum coverage and the methodology for calculating probable max. there were 24 insurance brokerage companies operating and 196 insurance brokers providing insurance brokerage services as natural persons. Switzerland 2. 66. HANFA Art.458 insurance agents provided insurance representation services as natural persons (including insurance agents in bank assurance). 34/99. while 5. 41/08). the Act on Compulsory Insurance within the Transport Sector (OG 151/05). while 24 banks have obtained authorisation from the Croatian National Bank for insurance representation. the Insurance Act (OG 151/05. and additional vehicle accident insurance.I. item 7. loss Ordinance amending the Ordinance on the requirements for professional training and examination of technical knowledge needed to perform duties of a certified actuary Competent authority To be aligned with the following acts of the acquis (celex number) Article of the Insurance Act OG 151/05 Phase SUBORDINATE LEGISLATION 31973L0239 HANFA 31991L0647 32002L0083 Art. POLITICAL CRITERIA 1. 87/08). There were 152 insurance representation trades and 154 insurance agencies. covering damage to third parties. HANFA issued 13 decisions approving the appointments of members of the board of directors. and 1 decision on a conditional withdrawal of authorisation for the business of an authorised actuary. State ownership Total 1 3 8 3 25 2 3 8 3 27 As at 30 September 2008. par. All the above-mentioned legal and natural persons operate on the basis of authorisations issued by HANFA.2008) 2.7.01. 118/03 and 107/07) and the relevant subordinate legislation enacted by HANFA. subject to prior approval by HANFA. OG 04/2008 (09. 1. the Act on the Croatian Financial Services Supervisory Agency (OG 140/05).03.2008) 223 . Slovenia 1. 2 decisions on authorisation for the business of an authorised actuary. to achieve alignment with the acquis communautaire HANFA passed the following subordinate legislation in 2008: No. Based on the Insurance Act. OG 26/2008 (14. in accordance with the provisions of the Insurance Act (OG 151/05).

and insurance brokerage and representation. item 7 5. The authorities plan to achieve full alignment of the Croatian legislation in the area of insurance with the acquis communautaire through the adoption of subordinate legislation with postponed application.2009 3. OG 31/2008 (29. To ensure further harmonisation of the legislative framework in the insurance sector. 1. B) KEY PRIORITIES Amendments have been planned to the existing subordinate legislation available on the official website of HANFA (www. of which they have informed the European Commission during the Bilateral screening under Chapter 9: Financial services. 66 par. about which the European Commission gave a positive opinion in its Progress report under Chapter 9: Financial services. Art.10. the Act on the Croatian Financial Services Supervisory Agency (OG 140/05) and the conclusions of the Screening Report of the European Commission on Chapter 9 − Financial services. and changes under the Amendments to the Insurance Act (OG 87/08). 144.hanfa. HANFA also maintains regular contacts and co-operation on numerous issues pertaining to the application of the acquis communautaire in the insurance field. 155. HANFA Art. As regards the implementation of the acquis communautaire in the insurance market in the Republic of Croatia. and through effective implementation of aligned legislation and the implementation of new EU guidelines (preparations for Solvency II).2008) 4. par. OG 55/2008 (16.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .2008) The legislative framework of the Republic of Croatia in the insurance area is for the most part aligned with the acquis communautaire. 101. and regular supervision of insurance and reinsurance undertakings and related undertakings with all regulatory authorities with which it has signed agreements on co-operation. the authorities enacted an Act on Amendments to the Insurance Act (OG 87/08) in July 2008. methods of calculating and guidelines for calculating technical provisions in insurance HANFA 31978L0660 31991L0647 Art. given that it pertains to the period following the entry of the Republic of Croatia into the EU. instructions for the application of a chart of accounts of insurance and reinsurance undertakings.2008) 31973L0239 HANFA 31991L0647 32002L0083 Art. the introduction of Solvency II. the supervision of insurance groups and reinsurance undertakings. SUBORDINATE LEGISLATION Ordinance on the structure and contents of annual financial reports of insurance companies Ordinance amending the Ordinance on the requirements for professional training and examination of technical knowledge needed to perform duties of a certified actuary Ordinance amending the Ordinance on minimum standards. several meetings were held in 2008 with the representatives of insurance and reinsurance undertakings in connection with the liberalisation of the compulsory insurance market in the transport sector.05.02. risk management in the insurance market. This Act has removed inconsistencies in the area of solvency margin calculation. OG 112/2008 (01. 224 .hr) with the aim of their alignment with the provisions of the Act on Amendments to the Insurance Act (OG 87/08). par. in accordance with the provisions of the Insurance Act (OG 151/05).

the Central Depository Agency. Particular attention in the second part of 2008 was paid to technical meetings with industry representatives relating to the implementation of the Capital Requirements Directive and in that context draft subordinate legislation has been prepared regulating in detail the calculation of capital adequacy. The first drafts of subordinate legislation were submitted for public consultations to the relevant industry in September. Comments and suggestions on the proposed text that were received from the European Commission. works to revise and update its approach which in the forthcoming period will be based on risk management control and internal control of supervised entities. and the Central Depository Agency. so as to acquaint all the concerned entities with the changes introduced by the new legislation. The fully aligned Capital Market Act (OG 88/08) was enacted in mid-July 2008. industry representatives. The enactment of subordinate legislation. work is underway on the drafting of the methodology of risk-based on-site supervision of investment firms. seminars and workshops are held for HANFA employees in charge of capital market supervision. and to ensure that its activities are updated and aligned accordingly. while broader public consultation of the final drafts is planned for October. HANFA. as a supervisory authority for business operations of participants in the capital market. HANFA’s activities during that period will include further work on the methodology of supervision. market transparency. In addition to preparing subordinate legislation. HANFA will continue to monitor new legislative developments in the EU. together with drafts of some of the subordinate legislation. after partial alignment in 2007. the industry and the CNB were incorporated into the Proposal of the Act which was submitted for legislative procedure. With a view to achieving better and more comprehensive co-ordination and preparation of the market for the forthcoming changes. and the education of market participants with a view to achieving alignment with European standards. to the European Commission for comments.3. prevention of market abuse and the capital adequacy of investment firms. B) KEY PRIORITIES Plans for the first quarter of 2009 include the enactment of all the subordinate legislation aimed at achieving full alignment with the acquis communautaire and ensuring full implementation of the Capital Market Act. It provides for a large body of subordinate legislation which is currently being prepared. is planned by the date of alignment. This Act regulates the market in financial instruments. the Zagreb Stock Exchange. The deadline for alignment of all the concerned entities on the market with the new Act and the subordinate legislation is the end of June 2009. regulating in detail the implementation of the investor protection scheme and the functioning of the Investor Protection Fund. The Draft Proposal was submitted for public consultations through invitations for comments and it was also made available to wider audiences and posted on HANFA’s website. the State Attorney’s Office and the press. In this context. The Capital Market Act has introduced into the Croatian legal system an investor protection scheme which provides for the establishment of a fund that is to protect the stakes of small investors and lead to improved market confidence and investor protection. and interpretations of the European Commission and CESR.9. were held. 225 . in April 2008 the authorities completed the First Draft of the Capital Market Act and submitted it. a number of meetings with industry representatives.I. In the context of drafting legislation. Within that framework. consultations with industry representatives. Capital market A) ACHIEVEMENTS IN 2008 In the process of the alignment of the capital market with the acquis communautaire. a number of meetings were held with industry representatives and the Central Depository Agency as the operator of this fund to reach a consensus on the manner of calculating contributions to the fund with a view to achieving investor protection without creating unfair and disproportionate costs for contributing undertakings. POLITICAL CRITERIA 3.

the Ministry of the Interior − Police Administration. with special emphasis on the insurance sector. Tax Administration. It is also worth noting that. an Operative Committee for Financial System Supervision was established. the State Attorney’s Office. convenes at least once in every three months to examine the current condition of the financial system and issues related to the efficient supervision and regulation of financial institutions and financial groups. HANFA’s membership in IOSCO (International Organisation of Securities Commissions) and IAIS (International Association of Insurance Supervisors) is based on Article 18 of the Croatian Financial Services Supervisory Agency which provides for HANFA’s membership in international organisations competent for the area of supervision of financial institutions and markets. HANFA launched an initiative for the conclusion of a memorandum of understanding with FMA. the Deputy President of the Management Board of HANFA took over the duty of presiding over this group. HANFA signed a Protocol on Co-operation and the Establishment of the Inter-institutional Working Group for the Prevention of Money Laundering and Terrorist Financing which entered into force on 1 March 2007. the signatories to the Protocol include the Ministry of Justice. Customs Administration. In this Protocol. the Croatian National Bank and the Security Intelligence Agency. In 2007. HANFA is also an active member of the Emerging Markets Committee and the European Regional Committee within the IOSCO organisation. Foreign Exchange Inspectorate. the Ministry of the Interior. the signatory institutions have expressed their readiness and willingness to strengthen co-operation in the area of the prevention and combating of money laundering and financing of terrorism with a view to contributing to the development of an efficient system of prevention and combating of money laundering and financing of terrorism in the Republic of Croatia. HANFA has launched preparatory activities for the signing of a multilateral memorandum of understanding. including HANFA. Financial Police). the Ministry of Health and Social Welfare. the Stock Exchange and the Central Depository Agency) will align their business operations with the Act and the subordinate legislation while HANFA will. which was signed in the course of 2008. HANFA’s employees paid a three-day study visit to Hungary. most notably the Ministry of Finance. The Committee. which was established on 30 May 2001 in Warsaw and whose membership currently includes twenty supervisory bodies from the region. Towards the end of 2007. In 2007. There is a Capital Market Regulatory and Supervisory Consultative Group operating within IOSCO. while HANFA took over the responsibility of maintaining the group’s website. three from each of the signatory institutions. In response to heightened international activity on the capital and insurance markets and the need for mutual co-operation between relevant supervisory authorities and with a view to improving legislative implementation in their fields of competencies. Apart from HANFA. the Ministry of Economy. the County State Attorney’s Office and the Croatian Competition Agency.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . and on monitoring new EU legislation and its legislative implementation in the Republic of Croatia within a reasonable time. monitor their compliance with the prescribed requirements. and with other relevant foreign institutions. HANFA also co-operated with other domestic institutions. HANFA maintained a regular level of contact and co-operation on numerous issues with supervisory authorities with which it has signed memoranda of understanding. where they exchanged experiences with the Hungarian supervisory authority. Memoranda of understanding In early 2007. In this context. in accordance with its legislative authority. in the context of its IOSCO-related activities. on co-operation with other EU regulators. Towards the end of 2007. the Austrian supervisory authority. the German supervisory authority. Based on the Agreement on Co-operation between the Croatian National Bank and the Croatian Financial Services Supervisory Agency which was signed in September 2006 and in which the two institutions have defined the content and the manner of their mutual co-operation in the conduct of their legislative authorities. the Ministry of Foreign Affairs and European Integration. which consists of six members. and BaFin. participants in the capital market (investment firms. 226 . whose purpose is to co-ordinate the procedures and activities of its signatories. HANFA and the Hungarian Financial Supervisory Authority signed a Memorandum of Understanding on Mutual Assistance and the Exchange of Information in August 2007.2009 FURTHER ACTIVITIES In 2009. HANFA plans to focus. Labour and Entrepreneurship. during that period. the Ministry of Finance (Office for Money Laundering Prevention.

10. to the authorisation procedure for the operators of electronic communications networks and services (which includes the replacement of all existing licence (concession) agreements. contributing to the much faster and higher quality building of the required know-how.10. to faster. notifications and other existing authorisations by the new system of general authorisation). whereby regulatory tasks in electronic communications and postal services are unified. to the required conditions for the full introduction and development of digital broadcasting and associated interactive services in the Republic of Croatia. The new Electronic Communications Act gives particular attention to the further strengthening of the independence and administrative capacity of the national regulatory authority in the field of electronic communications and postal services. 100 and 102 on R&TT equipment and electromagnetic compatibility (EMC). obliging the competent state administration bodies and regulatory authorities to carry out the measures and activities in their field of competence within the time limits defined in the Action Plan. and has been applied since then. i. as is the case in the majority of EU Member States. and by the transparent conditions of access and shared use of the existing electronic communications infrastructure and associated facilities. This will lead to further synergic effects and the strengthening of the administrative and financial capacities of the single regulatory authority. The Electronic Communications Act implements further institutional reinforcement of the national regulatory authority for electronic communications and postal services that becomes the Croatian Post and Electronic Communications Agency (HAKOM). the new Electronic Communications Act was adopted (OG 73/08).1. technologies and broadband access services in the Republic of Croatia. Electronic communications A) achievements in 2008 Legislative alignment In the process of legislative alignment with the acquis communautaire and fulfilment of the closing benchmarks for Chapter 10 − Information society and media. The stipulated measures and activities are to contribute to the further development of broadband Internet access by creating competitive conditions on the market and providing for new investments in broadband infrastructure.e. and to the further development. organisation and supervisory authority. On 5 June 2008. 158/03. 99. 60/04 and 70/05). 227 . POLITICAL CRITERIA 3. It has fully replaced the Telecommunications Act (OG 122/03. the Government of the Republic of Croatia passed the Decision on the amount and manner of distribution of surplus revenues over expenditures of the Croatian Telecommunications Agency (CTA) in 2007 to additionally stimulate the development of broadband infrastructure. by the introduction and implementation of the new legal institute of right of way. telecommunications service licences. which remained in force until 1 January 2009. INFORMATION SOCIETY AND MEDIA 3. skills and competences for regulatory tasks in both the electronic communications networks and services and postal services markets. until the entry into force of subordinate legislation adopted pursuant to the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07) regulating these areas in compliance with relevant EU directives. entered into force on 1 July 2008. 98. construction and use of electronic communications infrastructure and associated facilities by ensuring equal and non-discriminatory access to the infrastructure for all operators on the market. Strategy for the Development of Broadband Internet Access The Government of the Republic of Croatia adopted the Implementation Action Plan of the Strategy for the Development of Broadband Internet Access in the Republic of Croatia for 2008. with the exception of Articles 97.I. better and more efficient legal protection mechanisms of the rights of electronic communications end-users. to market competition and the regulation of significant SMP operators of electronic communications networks and services. to the further improvement of the efficiency of its work.

as the regulator’s advisory body. the Section will become an internal organisational unit of HAKOM responsible for the protection of the rights of service users that will act in the capacity and fulfil the tasks of an advisory body under the Consumer Protection Act (OG 79/07. which has unified all the tasks related to resolving the complaints of service users. for which the Croatian Government granted its statutory prior approval on 12 September 2008. applications for the position of member of the Council of HAKOM were collected based on which the Croatian Government will propose to the Croatian Parliament three candidates for appointment. Regulatory decisions are published on the HAKOM’s website (www. with a wide range of opportunities to use all the advantages of advanced digital broadcasting services and technologies. monitoring and analysing the situation in public communications services. the Croatian Post and Electronic Communications Agency (HAKOM) passed a number of regulatory and other decisions from its statuary scope. in accordance with the provisions of the previously valid Telecommunications Act (OG 122/03.hr). Two Action Plans are components of the above Strategy: the Action Plan for the switchover from analogue to digital terrestrial television broadcasting according to “digital regions”. and proposing appropriate amendments to the existing regulations with a view to improving the situation in the protection of service users’ rights. Implementation of this Strategy will provide all Croatian end-users of digital television services. The main strategic goal is to complete the entire switchover to digital terrestrial broadcasting of television programmes by not later than 31 December 2010. the Government of the Republic of Croatia approved the Strategy for the Switchover from Analogue to Digital Broadcasting of Radio and Television Programmes in the Republic of Croatia defining the basic strategic guidelines for introducing digital terrestrial television in the Republic of Croatia. education and entertainment. 158/03.2009 Strategy for the switchover from analogue to digital broadcasting of radio and television programmes in the Republic of Croatia At its session held on 31 July 2008. mediates in the resolution of disputes between service providers and service users. The goals and tasks of the Section are defined in the principles and purpose of the Croatian Post and Electronic Communications Agency so as to ensure a high level of protection to service users through the following key activities: processing cases and preparing documents for decisions. Tasks of the Croatian Post and Electronic Communications Agency In 2008. following the example of EU Member States with the highest level of protection of 228 . including the Croatian economy in general. proposals and opinions of the Council of Users of Telecommunications Services which. the Government of the Republic of Croatia passed on 30 September 2008 the Conclusion on a Public Call to propose three candidates for the Council of HAKOM.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The Section began work on 1 November 2007. meaning that as of January 2011 terrestrial broadcasting of television programmes will be by digital technology only. 125/07). In order to staff the Council of HAKOM to enable it to operate with the full number of seven members. 60/04 and 70/05). The result of these activities is the established new Section for Consumer Protection and Network Security in HAKOM.telekom. based on the received complaints of service users. intended primarily for information. improving and accelerating the procedures related to exercising the protection of end-users (consumers). Protection of service users As part of activities under the CARDS 2004 Project “Capacity Building of the Croatian Telecommunications Agency”. a project was initiated for the protection of service users aimed at simplifying. the Advertising Campaign Implementation Action Plan. which ended on 1 November 2008. In line with the new electronic communications Act. After completing the procedure. The Council of HAKOM passed the new Statute of the Croatian Post and Electronic Communications Agency (OG 116/08). in particular in the area of new and innovative programme contents. following the European Commission Recommendation on complete switchover from analogue to digital television by 2012 (or earlier).

the number of broadband Internet users reached 488. By 1 November 2008. based on the opinion of its organisational units.618. At the end of the third quarter of 2008.I.o.6%).900. three carriers operate in the mobile communications market: T-Mobile Croatia LLC (GSM900 + UMTS) VIPnet d.o. Thus. ranking Croatia among the most developed European countries. By 1 November 2008.o. (GSM900 + UMTS) TELE2 d. The share of new broadband Internet service providers is 15. (GSM/DCS-1800 + UMTS) The total number of mobile electronic communications network users reached 5. accounting for a penetration rate of around 11% relative to the number of citizens in the Republic of Croatia. Services in mobile electronic communications networks Presently. in terms of quality and efficiency. representing a penetration of approximately 48.o. and 39 service providers licensed to provide voice over the Internet Protocol services (VoIP).380 (penetration of approximately 41. At the end of the second quarter of 2008. Further. there were a total of 255. representing a penetration rate of 126.6% in the total revenues on this market.) and the intensified process of local loop unbundling. the total of ported numbers in the mobile networks reached 58.3% in the public voice services in the fixed network relative to the number of users. Electronic communications market Services in fixed communications networks At the end of the third quarter of 2008.450. and a market share of approximately 16. the total number of subscribers to public voice services in the fixed network reached 1.4%.497 unbundled local loops in Croatia. 229 .844.d. the regulatory framework for the protection of service users in electronic communications stands out in comparison to public services provided in other lines of activities in the country. representing a market share of around 21. By 1 November 2008.500. further growth in the number of broadband Internet users is expected.366 ported numbers in the fixed network. development of the Internet services market and broadband access services has been encouraged. 13 licences were issued for the provision of services of electronic communications line lease and 14 licences for the provision of the leased electronic communications network or parts of network services.7%). there were 408 realised co-locations and 86.931. The number of subscribers to the cable distribution services at the end of the third quarter of 2008 was 133. The total number of subscribers to 9 new operators in the fixed network reached 400.200 at the end of the third quarter of 2008. and presently there are 44 Internet Service Providers (ISPs) in the market licensed to provide Internet access services.148. Internet services and broadband access services During the past period. POLITICAL CRITERIA service users. while the total number of Internet users is currently 2. Following a reduction in the price of broadband Internet access in the market. The most important generator of progress in competition with respect to broadband Internet access in 2008 was the wholesale service of broadband access of SMP operators (HT d.200. HAKOM will pass final decisions resolving disputes between operators and subscribers to public communication services that will be binding on all parties in the dispute.4%.

a contract was signed with the company Astec Global Consultancy to implement the project under the 2005 Phare programme “Capacity strengthening of the Directorate for Telecommunications and Postal Service through assistance in the process of drafting proposals for subordinate legislation. 7. and. Ordinance on fees of the Croatian Post and Telecommunications Agency. Ordinance on the provision of universal services. On 26 November 2007. Ordinance on the prevention and fight against abuse and fraud in electronic postal services.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 8. a total of 84 inspections of legal and natural persons were performed on account of infringements of acts and subordinate legislation on electronic communications. of which 154 cases have been resolved. especially in the area of consumer protection and implementing the best EU practices in this area”. 3. Special attention will be paid to training and informing service users and raising awareness of the importance of consumer protection in this area. and obligations of the investor. In 2009. the protective zone and radio corridor. Representatives of MSTI regularly participate in the work of the NATO Civil Communications Planning Committee (CCPC). 9. at the invitation of the Director General of the European Commission’s Information Society and Media Directorate General (DG INFSO). 230 .2009 Inspection in electronic communications In 2008. an internal organisational unit responsible for the protection of the rights of service users will be set up within HAKOM to provide quality and efficiency in the Agency’s work. The project was successfully completed on 30 September 2008. MSTI and HAKOM plan to draft and adopt the following subordinate legislation for implementing the Electronic Communications Act: 1. Ordinance on the Reference Interconnection Offer in electronic communications. Representatives of MSTI also participate as observers in the regular meetings of high representatives of the national electronic communications directorates. B) KEY PRIORITIES In the area of electronic communications for 2009. while HAKOM representatives participate as observers in the work of the European Regulators Group (ERG). Ordinance on number portability. Ordinance on the operation of the internal organisational unit of the Croatian Post and Telecommunications Agency responsible for the protection of rights of service users. Telecommunications inspectors from the Ministry of the Sea. as observers. International co-operation Representatives of MSTI (the Electronic Communications and Postal Service Directorate) and HAKOM actively monitor and participate in the operation of working groups of the International Telecommunications Union (ITU) and the European Conference of Postal and Telecommunications Administrations (CEPT). 2. Ordinance on a comprehensive public subscribers’ directory and information service. 6. 5. 4. works or building in this zone. HAKOM will pass the Rules of Procedure of this department and its organisation will be regulated in a general act. Ordinance establishing the zone of electronic communications infrastructure and associated facilities. including co-operation with other bodies in the Republic of Croatia responsible for the protection of service users’ (consumers’) rights. Ordinance on the single European number for emergency services. Transport and Infrastructure (MSTI) received 277 requests for inspection supervision and enforcement of statutory measures that were submitted by legal and natural persons and electronic communications supervisors of HAKOM. they take part in the work of the Communications Committee of the European Commission (COCOM).

HAKOM will additionally encourage the employment of young highly educated experts and will invest financial resources in the further education and training of current employees. in July 2008 the Act on Amendments to the Electronic Signature Act (OG 80/08) was adopted. amendments thereto were drawn up in 2008. On the Economy tab. and continued development of the information society in order to reduce the digital gap. 2008 saw the implementation of the measures and recommendations defined in the Strategy for the development of electronic business in the Republic of Croatia for the period 2007 − 2010. 3. functioning and development of the information society. The key activities of this years’ programme include three goals: continued building and strengthening of the existing information and telecommunications infrastructure. and three employees (inspectors) for tasks of electronic communications inspection control in the Telecommunications and Postal Services Inspection Department. adopted by the Croatian Government on 7 December 2007. to work on electronic communications. it is necessary to continue to strengthen the administrative capacity of HAKOM. The Act on Amendments to the Electronic Commerce Act (OG 67/08) was adopted in June 2008 and was to a large extent aligned with Directive 2000/31/EC on certain legal aspects of information society services.10. in force since 8 November 2003. Thus. The central public administration portal − Moja Uprava − continued running in 2008. continued efforts in putting public administration at the service of citizens. To this end. in particular electronic commerce. Information society services A) ACHIEVEMENTS IN 2008 Legislative alignment With the adoption of the Electronic Signature Act (OG 10/02) in 2002. aimed at the further development of electronic commerce in both the economic and public administration sectors.I. it is planned to recruit three employees for electronic communications inspection control in the Telecommunications and Postal Services Inspection Department. The presently active system meets the functionality necessary to establish an initial system serving as the starting point for organisational adjustment of administration bodies for user-directed operation and establishing basic communication with users. it is planned to fill the remaining vacancies in the Directorate for Electronic Communications and Postal Service. With the aim of further alignment of the Electronic Signature Act (OG 10/02) and the Electronic Commerce Act (OG 173/03) with the acquis. POLITICAL CRITERIA For the purpose of strengthening the administrative capacities of MSTI − the Directorate for Electronic Communications and Postal Service and the Directorate for Transport Inspection (Telecommunications and Postal Services Inspection Department) − recruitment of new staff is planned pursuant to the Ordinance on the internal order of MSTI. followed by the adoption of the Electronic Commerce Act (OG 173/03). fully aligning the Electronic Signature Act with Directive 1999/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community framework for electronic signatures. and through the plans for 2009. In order to fulfil legally stipulated regulatory principles and objectives on the electronic communications market.2. up to seven employees. the Republic of Croatia began the process of creating the legal environment necessary for the successful creation. A public call is underway to recruit four employees in the Directorate for Electronic Communications and Postal Service for tasks of electronic communications. At its session held on 5th June 2008 the Government of the Republic of Croatia adopted the Implementation Plan of the e-Croatia 2008 Programme. In 2009. Likewise. an “e-Business” topic was launched 231 .

e-hrvatska. the appointment of new members to the National Information Society Council will have started. and. The main tasks of the NCP are to inform the public about the ICT PSP support programme.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . which drew together a number of participant from the public and private sectors. a topic “Persons with special needs” was launched. thematic networks. The national CERT (National Centre for Computer Security) was established and began work. the Proposal of the Strategy for the Development of Electronic Administration for the period 2009−2012 will have been presented to the Croatian Government. and the central authorisation and authentication service based on the electronic identity of citizens. By the end of 2008. The proposal of the Implementation Plan of the Programme e-Croatia 2009 will also be presented to the Croatian Government by the end of 2008. aimed at the establishment and networking of the system that will enable citizens to communicate with public administration and to use a number of services over the Internet.hr/cip-ict/index. a separate Trade. to provide support to stakeholders. The National Contact Point (NCP) was nominated at the Information Technology Support Agency− APIS IT. It is aimed at creating the conditions for developing a single public administration information space whose frame of reference is the information-communication platform for exchange of information among all public administration bodies. organised by the Central State Office for e-Croatia.html) on a separate website. participation in professional conferences. in particular. Labour and Entrepreneurship (OG 41/08.2009 (as a result of the E-Business Strategy). The National Council was established by a Government Decision to review. establish and promote all the important issues for the development of the information society in the Republic of Croatia. the Memorandum of Understanding between the Republic of Croatia and the European Community on the participation of the Republic of Croatia in the Community Programme “Information and Communication Technology Policy Support Programme (ICT PSP) in the Competitiveness and Innovation Framework Programme” (2007 to 2013) (OG 03/08) was adopted. The Central State Office for e-Croatia and APIS IT regularly post current information about the ICT PSP Programme (available at http://www. The Project will finish at the end of 2008. Under the Interreg IIIB Cadses Programme. 232 . which is responsible for the implementation of the Electronic Commerce Act and the Electronic Signature Act. and they successfully implemented the planned activities. creativity development and progress. Institutional framework Under the new Regulation on the internal order of the Ministry of the Economy. and other complementary activities pertaining to the development of the information society. During 2008. In June 2008. and to provide training in ways of partaking in the Programme. entrepreneurship and access to the information society in isolated geographical areas − Teleaccess Project” Under the Project. and under the Citizens tab. the telecentres continuously organised workshops whose topics were “Computers” and “Internet”. Other published topics have been supplemented and updated. the first Info Day on the CIP ICT PSP Programme was held. promotion. The Memorandum entered into force on 21 May 2008. priority measures and development goals. By the end of 2008. studies determining the level of development of the information society. The meeting of the National Information Society Council took place in 2008. 119/08). The Programme opens up for Croatia the opportunity of joining pilot projects. aimed at providing the opportunity for lifelong learning. Participation in Community Programmes On 14 March 2008. Market and e-trade Promotion Department was established with two divisions: the Application of Electronic Signatures Division and the e-Business Promotion Division. two telecentres were opened in 2008 in the same area as the two existing SME centres in entrepreneurial zones − Skrad and Vinkovci − in order to provide fast Internet access for the local workforce and citizens. the Central State Office for e-Croatia is conducting the project “Establishing Telecentres for supporting education.

the Ministry of Science. Through participation in the IDABC Programme.I. The Central State Office for e-Croatia and FINA are working on meeting the technical criteria for access to the sTESTA network to be implemented within the HITRONet network. Education and Sports will initiate a procedure to conclude the Memorandum of Understanding for the participation of the Republic of Croatia in the Safer Internet+ Programme. in co-operation with the Ministry of Science. POLITICAL CRITERIA In 2008. The target accession date is 1 January 2010. this opened the opportunity to use the tool CIRCA (Communication and Information Resource Centre for Administrations). paragraph 3 and areas referred to in Annex to Directive 2000/31/EC. and it will report thereon to the Croatian Government semi-annually and annually. the Republic of Croatia participated in the Community programme on Interoperable Delivery of Pan-European eGovernment Services to Public Administrations. During 2009.hr domain. Education and Sports and the European Commission. paragraph 2 of the Electronic Commerce Act (OG 173/03 and 67/08). CIRCA is implemented on the e-hrvatska. which is aimed at providing safe exchange of data between European and national public administrations. Furthermore. Business and Citizens (IDABC). which will enable a safe and fast service to be provided for allocating resources and documents. based on the Open Source Software.3. as the body responsible for co-ordinating the implementation of measures and activities from the Implementation Plan for the e-Croatia 2009 Programme. and in order to test its functionality it is used for the purposes of the Central Portal of Public Administration and the Central State Office for e-Croatia. B) KEY PRIORITIES In accordance with the European Commission remark. In early 2009. The Ministry of Science. In addition. 233 . During 2009. in the first quarter of 2009 it is planned to implement technical amendments to the provision of Article 4. In 2009. the Republic of Croatia was given the opportunity to take part in the sTESTA Project (secure Trans European Services for Telematics between Administrations). laying down derogations from the application of the rights for information society service providers with a seat in a Member State of the European Union.10. the Central State Office for e-Croatia will monitor the implementation of the Strategy of Electronic Administration Development of and Implementation of the Strategy for the switchover from analogue to digital broadcasting of radio and television programmes in the Republic of Croatia. Education and Sports expressed interest on behalf of the Republic of Croatia to join the Community Programme Safer Internet+ and with CARNet concluded an agreement on assuming the role of the National Contact Point for this Community Programme. Audiovisual policy A) ACHIEVEMENTS IN 2008 Full alignment of the media legislation with the acquis communautaire was implemented with the Act on Amendments to the Electronic Media Act (OG 79/07) adopted in July 2007. 3. and the Act on Amendments to the Electronic Media Act adopted in 2008 (OG 32/08). the Central State Office for e-Croatia. This opens for Croatia further opportunity to take part in the process of developing the e-Public Administration programme in the EU and the European Interoperability Framework. will implement preparatory measures to assume the role of the National Contact Point for the Safer Internet+ Programme starting on 1 January 2010. it will present to the Croatian Government the report on the enforcement of the Implementation Plan for the e-Croatia 2008 Programme containing descriptions of the activities implemented in 2008 related to the development of the information system in the Republic of Croatia at all levels. so as to fully align it with the provision of Article 3. will report thereon semi-annually and annually to the Government of the Republic of Croatia. CARNet.

2009 These legislative amendments. the Verified Minutes of the above discussion. The Fund for Media Pluralism and Diversity has been transformed from a state-owned fund into a Fund of the Electronic Media Agency. the civil society sector is represented in a satisfactory manner in the election procedures for the above bodies. in accordance with the instruction of the European Commission. the Council for Electronic Media carried out its tasks related to the implementation of the Electronic Media Act. the Council for Electronic Media passed the Ordinance on the criteria and manner of increasing the share of European audiovisual works of independent producers (OG 47/08). Thus. is adjusted to the needs of the Croatian public media and is appropriate as it provides for the political and operating independence of these bodies. as well as representatives of the Delegation of the European Commission to the Republic of Croatia and the OSCE Office in Zagreb. and the second proposes amendments to the Electronic Media Act so as to provide the right to associations of citizens to establish electronic media. In line with the Electronic Media Act. they do not address the subject-matter of the public debate. 234 . and others. primarily with regard to the award of concessions for radio and television broadcasting and the allocation of resources for the promotion of pluralism and diversity of the media. with a view to preparing an analysis of the role of civil society in the work of regulatory bodies. The first opinion deals with an analysis of the structure and contents of the Croatian Radio television programme. primarily by separating commercial revenues and expenses from subscription revenues and expenses. the public debate was concluded by confirming the conclusion that the legal framework for electronic media operation in its current form is satisfactory. the independence of regulatory bodies and their protection from potential political intervention. This will ensure the transparency of HRT’s financial transactions. regulate the administrative strengthening of the Council for Electronic Media to which the Electronic Media Agency has been adjoined. Even though these proposals are very interesting. The Electronic Media Agency has been entered in the court register as an independent legal person with public authority. together with the public discussion paper entitled “Election procedures for the HRT Programme Council and the Council for Electronic Media: the revised role of civil society” were opened for a comprehensive online public debate on the website of the Ministry of Culture (http://www. the Croatian Parliament adopted the Act Confirming the Memorandum of Understanding between the Republic of Croatia and the European Community on the accession of the Republic of Croatia to the Community MEDIA 2007 Programme. the financing of HRT was ensured in line with the EU competition rules through the Decision amending the HRT Statute which the HRT Programme Council adopted on 23 June 2008. the experts concluded the following: participation of civil society in the election of members of the HRT Programme Council and the Council for Electronic Media. 2007-2013 (OG IA 3/08). On 7 April 2008. Neither of the received opinions dealt with the issue of creating additional safety measures against political intervention in the election process for these bodies. the Decision obliges HRT to record in the business books (ledgers. Apart from eminent Croatian media experts. so the Act also regulates the criteria for the allocation of funds for the promotion of pluralism and diversity of radio and television programmes. Following this.hr/default. and the Chairman of the Council is the Head of the Agency. In 2008. Furthermore. The public discussion lasted from 8 April to 8 May 2008. On 25 April 2008. representatives of the main electronic media publishers. HTV) the revenues from the subscription fee and expenses (costs) in using the subscription fee for the purposes laid down in the HRT Act. participants in the discussion were representatives of professional organisations. the Ordinance on the manner of conduct of television broadcasters for the protection of minors (OG 47/08) and the List of important events (OG 47/08). among other things. in which period the Ministry of Culture received just two opinions. The Agency performs administrative and professional tasks for the Council. A debate on the procedures for the election of members of the HRT Programme Council and the Council for Electronic Media was held at the Ministry of Culture on 21 February 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . as established at the Round Table held in February 2008. On this occasion. analyses) of each organisational unit financed from the subscription fee (HR. This provision is applied to the funding which HRT receives from the state budget as grants or donations. as stipulated in positive regulations. As of 1 January 2009.aspx?id=3728).min-kulture.

In 2007 and 2008. 2009 will see the continued implementation of the Programme and measures for the protection of the national film collection. MEDIA Desk Croatia will carry out all the activities planned in the Work Programme. the creating and updating of a website (www. an institution established under the Act on Audiovisual Activities (OG 76/07). 235 . In April 2007. In 2008. equipment and professional staff have been provided for the operation of the MEDIA Desk Department. The premises. including participation in the annual MEDIA desks meeting in Brussels. B) KEY PRIORITIES In the fourth quarter of 2009. primarily about the functioning of the MEDIA Programme.hr). and providing technical and advisory assistance. MEDIA Desk Croatia. which currently employs one professional employee and the recruitment of one more professional is planned. a MEDIA Desk was established as a Department at the Croatian Audiovisual Centre. together with a work plan for the following year. Zagreb Film Festival) and outside the Republic of Croatia (Sarajevo Film Festival). provides Croatian citizens and relevant institutions with all the necessary information related to Croatian accession to the MEDIA 2007 Programme. At the end of the year. In its further work. POLITICAL CRITERIA With a view to implementing the Memorandum. as is the further strengthening of the administrative capacities of the Electronic Media Agency and the staffing of the MEDIA Desk Croatia. organising meetings with potential candidates. and the recommendations of the Executive Agency. regular information on financing tenders (training. Audiovisual and Culture Executive Agency (hereinafter: Executive Agency). the arrangements and activities with other Media desks under the Media 2007 Programme. according to the needs of the Programme beneficiaries. promotion/festivals. new technologies). Media Desk Croatia engaged in the following activities: promotion of the Media Programme within (International Experimental Film and Video Festival -25 FPS. were carried out. and the procedure to apply for tenders for Programme funding.I. the way to secure funding under the Programme. In 2009. The activities of the MEDIA Desk Croatia envisage continuous co-operation with different departments of the Executive Agency and with other European MEDIA Desks. the Croatian Parliament adopted the Act on the Ratification of the European Convention for the Protection of the Audiovisual Heritage (OG IA 5/07). the compiling of a concise and informative brochure on the MEDIA Programme entitled A Guide through the MEDIA Programme. further implementation of the media legislation is planned. which are implemented by the Croatian Cinematheque of the Croatian State Archive in Zagreb. which are responsible for the implementation of the MEDIA 2007 Programme (2007 − 2013). The activities of the MEDIA Desk Croatia are financed by the Ministry of Culture and the European Commission in accordance with the annual co-financing tender called by the European Commission and the Education. project development. distribution.mediadesk. it is planned to adopt the amendments to the Electronic Media Act to align it with the new Audiovisual Media Services Directive. and it will meet the obligations stipulated by the EC. all activities under the Programme and Measures for the Protection of the National Film Collection. the MEDIA Desk Croatia will submit to the European Commission and the Executive Agency a report on its work and on the implementation of the envisaged activities. apart from educating Croatian film experts.

In order to strengthen the organisational structure needed for the implementation of the IACS. Agricultural policy and horizontal measures A) ACHIEVEMENTS IN 2008 The implementation of the “Agricultural Acquis Cohesion Project”. which operates within the Ministry and is in charge of controls of national support measures. aligning agricultural legislation with the acquis communautaire and establishing an efficient administrative infrastructure. Project priority tasks are concerned with strengthening horizontal administration. prepared the Strategy to Improve the Agricultural Statistics of the Republic of Croatia. and sectoral administration and procedures. and the Directorate for Agricultural Inspection. the Regulation on internal organisation provides for the creation of new organisational units. in which a detailed plan for the development of particular segments of agricultural statistics was provided in line with Eurostat standards. has also been strengthened. During 2008.11. which is funded by a World Bank loan.e. and in carrying out payments relating to agricultural plots and payments per head of livestock. A new Registers Department has been created to develop and integrate databases needed for cross checks. In March 2008. In the course of 2007. Pursuant to the above-mentioned Regulation. which meets the technical requirements for supporting IACS processes and other processes of the Directorate. work began on redesigning the 236 . veterinary and phyto-sanitary services. controls on the ground. and the strengthening of the existing units. controls on the ground and approval. the alignment of agricultural statistics also commenced. the Sector for Direct Support has been strengthened. AGRICULTURE AND RURAL DEVELOPMENT 3. with a view to strengthening administrative capacities. They are also concerned with the establishment of the tools and procedures necessary for the implementation of market and price policy measures and rural development policy.2009 3.1. the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Integrated Administration and Control System (IACS) In accordance with the Action Plan drawn up with the assistance of TAIEX expert missions. a new computer centre was purchased. which serves as an administrative standard and is obligatory in carrying out the direct payment scheme within the framework of the EU Common Agricultural Policy. In order to develop an adequate software support system for the maintenance of the Register of Farmers. The Process Documentation Management Department has been created within the Sector for Information and EU Relations. Fisheries and Rural Development (OG 35/08). The Ministry of Agriculture. The general aim of the project is to assist the Government of the Republic of Croatia in the process of the association of the Republic of Croatia with the European Union in the area of agriculture and rural development. together with the Central Bureau of Statistics. The new Department for the Control of Common Agricultural Policy Measures has been set up to co-ordinate controls on the ground. In order to strengthen administrative control. particularly with regard to the Directorate for Market and Structural Support in Agriculture (the future Paying Agency). numerous activities were undertaken concerning the establishment of the Integrated Administration and Control System (IACS). The Sector will be in charge of co-ordinating the development of written procedures for the business processes of the Directorate. has commenced.11.e. i. and of monitoring legislation. which is responsible for providing hardware and software support for the business processes of the Directorate. submission of applications. Forestry and Water Management. in 2008 a competition was held to fill some of the job vacancies. administrative control. The Security Department has been set up within the Information Management Sector. and the strengthening of structures related to food safety and quality − i. in the Directorate for Market and Structural Support in Agriculture. pursuant to which the reorganisation of the Ministry has been undertaken.

In mid-2008. which acts as the SAPARD/IPARD agency. . and to directly transfer data to the Sector of Finance. An expert working group was designated.1. This structure will build on the existing structure for the establishment of the LPIS. Various activities directed towards establishing a land parcel identification system (LPIS) have been undertaken. The aim of the working group is to strengthen the administrative capacity for the full implementation of the IACS and the IPA project “Support for the Establishment of a Fully Operational Paying Agency in Line with the EU Standards”. a separate database of the Register of Farms and a separate database of aid applications were created. Work is being done on linking with different databases (Register of Animals and other registers). POLITICAL CRITERIA existing software.I. SAPARD/IPARD In 2008. The Ministry of Agriculture. As a result of the software redesign. FADN As part of the preparations for the establishment of the Farm Accountancy Data Network (FADN).2.1. It has been made possible to enter data on controls directly in the field. which will enter into force on 1 January 2009. On the basis of the results obtained. . in the Directorate for Market and Structural Support in Agriculture. which will develop a new detailed action plan for the full establishment of the IACS. the implementation of the World Bank project “Establishment of the Farm Accountancy Data Network (FADN)” commenced in early 2008. Pending the commencement of the IPA project. Regarding the activities related to FADN. The procedures for these three measures have been developed. installed in 2003.Investments in improvement of the processing and marketing of agricultural and fishery products.Investments in agricultural holdings to restructure and to upgrade to Community standards. In addition. a campaign 237 . Work began on redesigning the Register of Farms to harmonise various databases for the purposes of the IACS. Invitations to tender for the purchase of spatial bases have been issued and contracts are expected to be concluded by the end of 2008. and software to support the LPIS has been implemented. and to upgrade them to Community standards. the third round of tenders for the allocation of funds under the SAPARD programme was launched.Improvement and development of rural infrastructure. Measure 3. The organisational structure for the application and implementation of the LPIS has been established. technical assistance for the development and testing of general IACS procedures will be provided through a World Bank project. the structure for the implementation of the common market organisation (CMO) has been established within the Directorate for Market and Structural Support in Agriculture. A contract has been concluded for the development of the initial LPIS layer. The Ordinance provides for the appointment of a FADN implementing agency (Croatian Agricultural Extension Institute). Measure 1. the methodology has been revised and preparations are being made to fully implement it by the end of 2008. The new modular software package should enable a quick adjustment of the implementation of new aid schemes. IT equipment for the central and local offices has been purchased. with a view to developing a new modular system capable of being quickly adapted to changes in IACS processes and other business processes of the Directorate. and a methodology was developed and tested in pilot projects conducted at six locations with different agricultural structures and landscape features. Fisheries and Rural Development issued the Ordinance on the establishment and implementation of the Farm Accountancy Data Network (OG 46/08). work began on developing procedures for the implementation of the following three IPARD measures: Measure 1. . to restructure those activities. and applications received in the first two tender rounds were processed. the following has been accomplished: the questionnaire and instructions for the survey have been developed. preparations began for implementing an information campaign targeting farmers. In the first quarter. and following self-evaluation the national accreditation process began. the staff of the Croatian Agricultural Extension Institute have been trained for conducting a pilot survey. and work on developing draft procedures for individual processes is underway within the PHARE 2005 programme. A unique farm identification number (UFIN) is used as a unique reference for identifying a farmer who submits an aid application and as a data element for linking databases.

activities will be undertaken to prepare for the implementation of the common organisation of the market for the following priorities: trade mechanisms (horizontal activity). using technical assistance under a World Bank project. and by the end of the year for the implementation of the remaining measures. the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in cereals. B) KEY PRIORITIES The following are planned for 2009: further implementation of activities related to the strengthening of the administrative capacities of the Directorate for Market and Structural Support in Agriculture.2009 to inform farmers about FADN is being run. payments and bookkeeping. is planned to be established by the middle of 2010.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . As part of the PHARE 2005 project “Institutional Capacity Building and Support for Implementation of the SAPARD-IPARD Programme in Croatia”. inspection field controls. capacity strengthening of DMSSA will continue through the recruitment of new staff in accordance with the existing Regulation. intensification of activities related to the implementation of the Integrated Administration and Control System (IACS). As regards the collection of data and price reporting for agricultural products on the domestic market. Component 5 “Common organisation of markets”. The Paying Agency. MAFRD will carry out the following activities in 2009: By the end of the second quarter of 2009. continuation of preparations for the implementation of the common organisation of the market. pursuant to the Agriculture Act (OG 66/01. the administration of quotas. software for conducting the pilot survey has been developed and the survey itself is being conducted. cereals. recruitment. acceleration of activities directed towards establishing the Land Parcel Identification System (LPIS). technical assistance is planned to be provided through various bilateral co-operation agreements with EU Member States. equipping and training of structures required for the implementation of the IACS. During 2009. further implementation of activities under the World Bank “Agricultural Acquis Cohesion Project”. The establishment of the IACS in line with EU requirements is planned to be completed by the end of 2010. to ensure the performance of the planned functions of the Paying Agency. Article 37). The IPA programme “Support for the Establishment of a Fully Operational Paying Agency in Line with the EU Standards” is expected to commence in late 2009. implementation of the activity plan determined by the “Strategy to Improve the Agricultural Statistics of the Republic of Croatia”. Since this project will end in June 2009. price reporting and monitoring. Regarding the implementation of FADN. which will be aligned with Council Regulation (EC) No 1234/2007 and the document of the EU’s Management Committee for Cereals AGRO-D. it is expected that the pilot survey will be completed in April 2009. approvals. after which the data obtained will be checked and processed. and preparations for assuming the role of the Paying Agency. delegated functions). milk and milk products. the conferral of management powers is expected to be obtained by the end of the second quarter of 2009 for the full implementation of the three IPARD measures. which will finalise the establishment of the IACS and other necessary functions of the Agency. fruit and vegetables.2/ 238 . development of written procedures for administrative controls. specifications for basic IACS procedures are planned to be prepared and tested in pilot projects in three different areas. and wine. which will have a defined status (appropriate registers. During 2009.

2. meaning that the Customs Directorate would allocate quotas for products on a first-come first-served basis (in which case the list of relevant products would be extended compared to the one contained in the currently valid Regulation). Rural development policy A) ACHIEVEMENTS IN 2008 During 2008. pursuant to the Agriculture Act (OG 66/01. It should be noted that this primarily concerns preparations of the authorities responsible for the implementation of the quota allocation system after Croatia becomes an EU member. The responsibilities of the Section for the Agricultural Market Information System will be defined in more detail through amendments to the Agriculture Act. 146/04. Institutional capacity building of the Section for the Agricultural Market Information System will continue in 2009 in order to bring it into compliance with EU legislation as regards the monitoring and reporting of information on the prices and quantities of agricultural products on the representative domestic market. and not alignment with specific acquis provisions. By the end of the third quarter of 2009. POLITICAL CRITERIA FAL D (2008).11. By the end of the fourth quarter of 2009. Article 37). The new Regulation will be adopted in the second quarter of 2009 at the latest. processing and reporting of information on the prices and quantities of cereals on the representative domestic market for national and EU Commission purposes. adopted by the Government of the Republic of Croatia at its session on 21 May 2008. the Ministry of Agriculture. The Ordinance will lay down the methodology for the collection. processing and reporting of information on the prices and quantities of bovine carcasses on the representative domestic market for national and EU Commission purposes. while the Customs Directorate of the Ministry of Finance is responsible for the monitoring of tariff quota utilisation. and will lay down the methodology for the collection.2. The Rural Development Strategy of the Republic of Croatia 2008-2013. processing and reporting of information on the prices and quantities of pig carcasses on the representative domestic market for national and EU Commission purposes. 3. 138/05). The Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC-financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession IPA (Sectoral Agreement) was signed on 13 October 2008 by the 239 . the plan for 2009 is to change the system of allocation of preferential import quotas for agricultural products and foodstuffs. which will be aligned with Council Regulation (EC) No 1234/2007 and will lay down the methodology for the collection. work continued on aligning legislation with the EU legislative framework and on drafting regulations envisaged by NPAEU in the field of rural development policy. Fisheries and Rural Development (MAFRD) is responsible for the allocation of tariff quotas for all products. The following documents and regulations were drafted: 1. the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in pig meat. pursuant to the Agriculture Act (OG 66/01.I. According to the currently valid Regulation on allocation of tariff quotas for agricultural products and foodstuffs originating from member states of the World Trade Organisation and countries with which the Republic of Croatia has concluded free trade agreements and the Stabilisation and Association Agreement (OG 55/04. which is not possible due to the different international commitments of the Republic of Croatia as regards the importation of agricultural and food products. Amendments to the Regulation will provide for the division of responsibilities for allocating tariff quotas between MAFRD and the Customs Directorate in a similar way as in the European Union. which will be aligned with Council Regulation (EC) No 1234/2007. while MAFRD would continue to allocate import quotas for other products. As regards trade mechanisms. so that it can be applied from 2010. Article 37). the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in beef.

Fisheries and Rural Development of the Republic of Croatia and by the EC. These Ordinances (items 3 − 5) have been approved by the collegiate body of MAFRD and will be published in the Official Gazette after the publication of the Act on the Ratification of the Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession (IPA).2 under the IPARD programme (adopted at the level of MAFRD on 29 September 2008). 240 . Livestock breeding A) ACHIEVEMENTS IN 2008 The Ordinance on amendments to the Ordinance on the quality of eggs was adopted in 2008 (OG 76/08). In the course of 2009. sheepmeat. steps for implementation will be taken. In addition. goatmeat. legislation on the organisation of the markets in poultrymeat. 5. 3. legal provisions will also be adopted which will make it possible to commence payments for less favoured areas under the rural development measures from 2010 at the latest. important among which is the drafting and adoption of the Statute of CRDA. 4.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Following the adoption of the Regulation on the establishment of CRDA. The Act on the Ratification of the Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession (IPA) was passed by the Croatian Parliament on 21 November. in 2009. 3. Ordinance on the implementation of Measure 3. B) KEY PRIORITIES The adoption of the Act on Support for Rural Development is planned for the first quarter of 2009. Ordinance on the implementation of Measure 1. preparations will commence for the development of the National Rural Development Programme for the period up to 2013. B) KEY PRIORITIES The plan for 2009 is to fully complete the alignment of legislation in the field of livestock breeding with that of the European Union. Activities related to the establishment of the Croatian Rural Development Agency (CRDA) are in progress. and eggs will be adopted.1 under the IPARD programme (adopted at the level of MAFRD on 29 September 2008).1 and Measure 1. and.3.11.2009 Minister of Agriculture. Ordinance on the implementation of Measure 4 − Technical assistance under the IPARD programme (adopted at the level of MAFRD on 25 August 2008). in that context.

as a preparation for the future implementation of EU trade policy. and not alignment with the organisation of the sugar market that is in place in the EU.I. the Market Section has been created to be responsible.4.11. the Ordinance on quality standards for flowering bulbs. and establish a data collection system in the sugar sector. 80/08.33 − Financial and budgetary provisions). 125/08) was adopted pursuant to the Agriculture Act (OG 661/01. 83/02). within which the Sector for Food Industry has been created consisting of two departments: the Department for the Food Processing Industry and the Department for the Wine and Spirit Drinks Industry. the following pieces of subordinate legislation were adopted aligning the Croatian legislation with that of the European Union: Ordinance on the quality of vegetables (OG 114/08. Within the Department for the Food Processing Industry. since the Republic of Croatia does not apply production quotas and does not plan to introduce them in the pre-accession period. 137/08). B) KEY PRIORITIES The following pieces of subordinate legislation are planned for drafting in 2009: the Regulation on the organisation of the market for fruit and vegetables. To this end. pursuant to which the reorganisation of the Ministry has been undertaken. The Directorate for Agriculture and Food Industry has been set up. 137/08). and the Ordinance on quality standards for fresh and cut flowers and ornamental foliage. and will prepare the competent section of the Directorate for Market and Structural Support in Agriculture of MAFRD for the administration of the system (also referred to under Chapter 3. This will provide a basis for the implementation of a production quota system. among 241 . determine purchase terms for sugar beet. Sugar KEY PRIORITIES In the second quarter of 2009. corms and tubers. Fruit and vegetables A) ACHIEVEMENTS IN 2008 In 2008. Plant production Cereals A) ACHIEVEMENTS IN 2008 The Regulation on the organisation of the market in cereals (OG 75/08. Olives and olive oil − Wine and spirit drinks A) ACHIEVEMENTS IN 2008 In March 2008. which is necessary for future notifications to the European Commission and production monitoring. it is planned to adopt a regulation introducing some of the elements of the organisation of the market. a special regulation will be adopted to define a marketing year as it is defined in the EU. the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture. POLITICAL CRITERIA 3. Ordinance on the quality of fruit (OG 114/08. 114/08. It should be emphasised that this primarily concerns preparations of the authorities which will be responsible for the implementation of the sugar production quota system after Croatia becomes an EU member. Fisheries and Rural Development (OG 35/2008).

Legislation regulating the olive oil market In 2009. for the market in olives and olive oil. This Ordinance establishes mechanisms for approving establishments for the packaging of oil and transposes the provisions of the existing Ordinance on olive oils and olive-pomace oils (OG 63/06). Ordinance on the documents accompanying the transport of grapes and wine The EU’s wine sector reform undertaken in accordance with the new common organisation of the wine market has brought about significant changes. which will be repealed with the adoption of the new ordinance. Wine and spirit drinks: Ordinance on spirit drinks Pursuant to the new Regulation (EC) No 110/2008 of the European Parliament and of the Council on the definition. B) KEY PRIORITIES In 2009. and Commission Regulation (EC) No 2080/2005. The recruitment and training of staff in the Sector for Food Industry within the Directorate for Agriculture and Food Industry will continue in 2009. Pursuant to the Food Act (OG 46/07). pursuant to the new Agriculture Act. Croatia will adopt a regulation establishing a system for the approval of operators' organisations and for the financing of their work programmes in accordance with Council Regulation (EC) No 1234/2007. presentation.2009 other things. the Republic of Croatia will align its implementing regulations governing the field of spirit drinks. Council Regulation (EC) No 865/2004 in the part relating to the approval of operators' organisations. which is expected to be adopted in the third quarter of 2009 with a view to alignment with the provisions of Commission Regulation (EEC) No 2568/91 on the characteristics of olive oil and olive-pomace oil and on the relevant methods of analysis. In that context. Croatia plans to align the provisions governing the documents accompanying the transport of wine (so-called accompanying documents). which transposes the provisions of Annex XVI to Council Regulation (EC) No 1234/2007 and the provisions of Commission Regulation (EC) No 1019/2002 on marketing standards for olive oil.e. 242 . a new employee was recruited to the Section to be responsible primarily for the field of olives and olive oil. an implementing regulation. In the fourth quarter of 2008. and Commission Regulation (EEC) No 2568/91 on the characteristics of olive oil and olive-residue oil and on the relevant methods of analysis. the Ordinance on olive oils and olive-pomace oils (OG 07/09) was adopted in the fourth quarter of 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . i. labelling and the protection of geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89. and based on the EU legislation currently in place. description. further alignment of the legislation in the fields of olives and olive oil and wine and spirit drinks needs to be carried out with a view to fulfilling the measures set out in the Negotiating Position for Chapter 11: Agriculture and Rural Development. Olives and olive oil: Ordinance on the accreditation of olive oil sensory evaluation panels The accreditation of independent olive oil sensory evaluation panels will be regulated by a special implementing regulation. with a view to implementing the legislation governing the fields of olives and olive oil and wine and spirit drinks.

In that context. recruitment of staff for the Directorate for Food Safety and Quality. A public tender remains open until 1 November 2008. The re-organisation of MAFRD resulted in the creation of the Directorate for Food Safety and Quality. the Ordinance on designations of origin and geographical indications for agricultural products and foodstuffs and the Ordinance on “traditional speciality” logos for agricultural products and foodstuffs will be adopted. 243 . POLITICAL CRITERIA 3. The implementation of the programme “Co-financing Accreditation of Certification Bodies for Operating the System of Supervision and Control of Compliance of Foodstuffs Bearing a Designation of Origin or a Geographical Indication or a ‘Traditional Speciality’ Logo” is in progress. the implementing Commission Regulation (EC) No 1898/2006 of 14 December 2006 laying down detailed rules of implementation of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs and Commission Regulation (EC) No 1216/2007 of 18 October 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 509/2006 on agricultural products and foodstuffs as traditional specialities guaranteed. The new Act authorises the agricultural inspection and food quality inspection established within MAFRD to carry out inspection of agricultural products and foodstuffs bearing a registered designation or indication. i.I.11. re-development and implementation of the programme “Co-financing Accreditation of Certification Bodies for Operating the System of Supervision and Control of Compliance of Foodstuffs Bearing a Designation of Origin or a Geographical Indication or a ‘Traditional Speciality’ Logo”. Continuing education courses were provided to civil servants. training of civil servants and inspectors in control activities in the area of quality policy. and of the Department for Indigenous Products within the Sector for Food Labelling and Quality.5.e. The following activities will be carried out in 2009: continuation of activities related to the accreditation of certification bodies operating the system of supervision and control of compliance of foodstuffs which bear a designation of origin or a geographical indication or a “traditional speciality” logo on the basis of the announced public tender. B) KEY PRIORITIES Work will continue on aligning legislation with the acquis communautaire. Geographical Indications and the Traditional Speciality Logo for Agricultural Products and Foodstuffs (OG 84/08) was adopted and aligned with the relevant EU regulations. As regards implementing measures. certification bodies operating the system of supervision and control of compliance of foodstuffs that bear a designation of origin or a geographical indication or a “traditional speciality” logo have not yet been accredited since no application has been received in response to a public tender. Quality policy A) ACHIEVEMENTS IN 2008 The Act on Designations of Origin.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Ordinance on amendments to the Ordinance on processing in organic production (OG 8/08). Thus. Ordinance on the marking and labelling of organic products. 2. 90/05). which transposes the provisions of Council Regulation (EC) No 2991/94 of 5 December 1994 and Commission Regulation (EC) No 445/2007 of 23 April 2007. was also adopted in 2008. the field of organic farming has now been fully aligned with Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs and with related implementing acts. their solutions. The Ordinance on keeping the database of agricultural reproductive material from organic production is aligned with Commission Regulation (EC) No 1452/2003 of 14 August 2003 maintaining the derogation provided for in Article 6(3)(a) of Council Regulation (EEC) No 2092/91 with regard to certain species of seed and vegetative propagating material and laying down procedural rules and criteria relating to that derogation. 3. i. B) KEY PRIORITIES In 2009. the following legislation will be adopted: The Ordinance on sugar and other saccharides. These Ordinances were adopted pursuant to the Food Act (OG 46/07).2009 3. Organic production A) ACHIEVEMENTS IN 2008 During 2008. These Ordinances need to be aligned with the new EU regulations published in 2007 and 2008. The plan is to draft and adopt the following regulations: 1.11.11. pursuant to the Food Act (OG 46/07). 2.e. The Ordinance on spreadable fats (OG 89/08).6.7. and starch and starch syrups (OG 174/04. Ordinance on amendments to the Ordinance on processing in organic production. work will continue on the further alignment of organic production legislation with the acquis communautaire. Vertical legislation A) ACHIEVEMENTS IN 2008 The Ordinance on the maximum level of erucic acid in oils and fats (OG 70/08. 244 . B) KEY PRIORITIES In 2009. full alignment will be achieved through two new regulations. However. work continued on aligning legislation with the EU legislative framework and on drafting regulations envisaged by NPAEU in the field of organic farming. Ordinance on keeping the database of agricultural reproductive material from organic production (OG 89/08). is to a large extent aligned with the acquis communautaire. The following implementing regulations were drafted and published: 1. Council Regulation (EC) No 834/2007 of 28 June 2007 and Commission Regulation (EC) No 889/2008 of 5 September 2008. 86/08) transposes the provisions of Council Directive 76/621/EEC and Commission Directive 80/891/EEC.

which will transpose the provisions of Commission Regulation (EC) No 543/2008 of 16 June 2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for poultrymeat. it is planned to adopt a special regulation which will fully transpose the provisions of Council Directive 2001/111/EC relating to certain sugars intended for human consumption. it is planned to adopt a special regulation transposing the provisions of Commission Directives 79/1067/ EEC and 87/524/EEC concerning methods of analysis for testing certain partly or wholly dehydrated milk (and milk powder) for human consumption and methods of sampling for chemical analysis of milk products. By the end of 2009. In the second quarter of 2009. which will transpose the provisions of Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products. In the second quarter of 2009. it is planned to adopt a special regulation transposing the provisions of Commission Regulation (EEC) No 1265/69 establishing methods for determining the quality of sugar bought in by intervention agencies. In the second quarter of 2009. it is planned to adopt the Ordinance concerning poultrymeat. it is planned to adopt the Ordinance on milk and milk products.I. the provisions of Article 114 and of Annexes XII and XIII. In the first quarter of 2009. In the third quarter of 2009. POLITICAL CRITERIA In the first quarter of 2009. 245 . and the provisions of Commission Directive 79/796/EEC laying down Community methods of analysis for testing certain sugars intended for human consumption. In the first quarter of 2009. will be amended to be fully aligned with Council Directive 2001/110/EC. the Ordinance on the quality of honey and other bee products (OG 20/00). which lays down the basic quality requirements for honey. it is planned to adopt a special regulation transposing the provisions of Commission Directive 93/45/EEC concerning the manufacture of nectars without the addition of sugars or honey. it is planned to adopt a special regulation transposing the provisions of Commission Directives 85/503/ EEC and 86/424/EEC concerning methods of analysis and methods of sampling for edible caseins and caseinates. or more precisely.

Ordinance on the sampling plan and methods of analysis for the official control of the levels of nitrates in foodstuffs (OG 42/08). Ordinance on food treated with ionising radiation (OG 38/08). 74/08). advertising and presenting of foodstuffs (OG 41/08). VETERINARY AND PHYTOSANITARY POLICY 3. Ordinance laying down methods of sampling and analysis for the official control of the levels of dioxins and dioxin-like polychlorinated biphenyls in foodstuffs (OG 45/08). Ordinance on flavourings (OG 53/08). Fisheries and Rural Development resulted in the creation of the Directorate for Food Safety and Quality. regarding matters falling within its competence: Legislative measures The following pieces of legislation were adopted in 2008: 1. Food safety A) ACHIEVEMENTS IN 2008 Legislative measures During 2008. Ordinance on quick-frozen foodstuffs (OG 38/08). Ordinance on the sampling plan and methods of analysis for the official control of the levels of mycotoxins in foodstuffs (OG 45/08). 246 . 4.12. envisaged for 2008 as part of the CARDS project “Further Capacity Building in the Area of Live Animals and Food Products“. Veterinary and Phytosanitary Policy into National Legislation was adopted. 5. The development of guides for the implementation of the Ordinance on the labelling. advertising and presenting of foodstuffs. cadmium.1.12. The following pieces of legislation were adopted in 2008: Ordinance on the labelling. Ordinance laying down the methods of sampling and analysis for the official control of the levels of lead. 8. 3-MCPD and benzo(a)pyrene in foodstuffs (OG 45/08). 6. Implementation measures The Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12 . The re-organisation of the Ministry of Agriculture. consisting of the Sector for Food Labelling and Quality and the Food Safety Sector.Food Safety. is in progress and will be completed in the fourth quarter. 7. mercury.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Ordinance on nutritional labelling of foodstuffs (OG 60/08. 2. Ordinance on sanitary safety of materials and articles intended to come into direct contact with foodstuffs (OG 48/08). 9. inorganic tin. work continued on aligning legislation with the EU legislative framework and on drafting implementing legislation pursuant to the Food Act (OG 46/07) envisaged by the 2008 NPAEU. 3. In the area of food safety. the Ministry of Health and Social Welfare achieved the following in 2008.2009 3. FOOD SAFETY. Ordinance on processing aids (OG 38/08).

organised in co-operation with TAIEX. 2006/125/EC and 2006/141/EC concerning foodstuffs for particular nutritional uses. specialised training in the area of food safety was provided for sanitary inspectors. microbiological parameters. As part of preparations for the implementation of EU Directives 89/398/EEC. 18. vacancy announcements were issued in September for the posts of a sanitary inspector and a senior sanitary inspector in the Food Safety Department. 14. representatives of the MHSW participated in an expert mission. Implementation and Maintenance of the HACCP System”. 11. each lasting three days. Ordinance on foods for infants and young children and processed cereal-based foods for infants and young children (OG 74/08). project documentation is being drawn up for the purchase of equipment for use by border sanitary inspectors at the border crossings at Zagreb-Pleso Airport and in Rijeka and Bajakovo. food supplements and dietary products. 13. 15. from 24 to 27 November 2008. The training was organised on a regional basis in two Modules (Module 1: The basics of the HACCP. metals and metalloids in processed cereal-based foods. Ordinance on maximum levels for certain contaminants in foodstuffs (OG 154/08). In addition. (EC) No 882/2004). pesticides (plant protection product residues). representatives of the MHSW applied for a TAIEX study visit. mycotoxins. Ordinance on food additives (OG 81/08). POLITICAL CRITERIA 10. and Module 2: HACCP auditing). 12. Ordinance on foods intended for weight reduction (OG 89/08). biologically active substances. Through specialised training. which has been approved. Within the PHARE 2005 project “Support to the Sanitary Inspection in the Development.I. A total of 141 sanitary inspectors received training. 16. 17. and made a study visit to Ireland in September 2008 in order to gain insights into the practical aspects of implementing EU food safety legislation (Regulations (EC) No 178/2002. In order to prepare for the implementation of EU Regulations (EC) No 883/2006. minerals and other substances added to food) (OG 148/08). 247 . organised by TAIEX in collaboration with the Regional Training Programme (RTP). (EC) No 333/2007. and probiotics. Ordinance on nutritional and health claims made on food (OG 17/09). allergens in confectionery products. As part of preparations for the implementation of EU Regulation 1924/2006 concerning nutritional and health claims made on food. Ordinance on foodstuffs intended for particular nutritional uses (OG 74/08). Ordinance on dietary foods for special medical purposes (OG 100/08). representatives of the MHSW organised and participated in a TAIEX workshop held on 14 November 2008 in Zagreb. From 15 June to 15 September 2008. Within the IPA 2008 project “Continued Support to Capacity Strengthening of the Veterinary. (EC) No 852/2004. the Ministry of Health and Social Welfare conducted regular monitoring for the following parameters: artificial colours in non-alcoholic beverages. Phytosanitary and Sanitary Border Inspection”. (EC) No 401/206 and (EC) No 1882/2006 concerning contaminants and for the training of inspection staff. Implementation measures Implementation measures mainly concerned the training and specialised training of inspection staff in the implementation of the new regulations. Ordinance on food supplements (OG 148/08). Ordinance on foods enriched with nutrients (vitamins. A total of 692 samples were taken. sanitary inspectors were trained to become RTP experts.

and training in this field will be provided for inspection and laboratory staff. 2. continued training will be provided through projects and professional meetings. the structure of the competent authority in the field of veterinary medicine has been changed and two directorates have been set up: the Veterinary Directorate and the Veterinary Inspection Directorate.2. better planning of official controls and acting in accordance with guides and instructions. This will ensure a coherent approach. B) KEY PRIORITIES It is planned to recruit new employees to the MAFRD’s Directorate for Food Safety and Quality in 2009. study visits. in accordance with the Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12: Food Safety. Instructions and procedures for carrying out official controls in accordance with the Food Act will be developed. Ordinance on amendments to the Ordinance on the veterinary conditions for non-commercial transport of pets (OG 39/08). Veterinary and Phytosanitary Policy into National Legislation. The key priorities of the MHSW in the field of food safety in 2009 are: Legislative measures In the field of novel foods. an assessment will be made of the situation in the Republic of Croatia regarding the presence of toxic metals and mycotoxins in foodstuffs. the Ordinance on the conditions and procedure for authorising the placing on the market of novel foods and the labelling of such foods is planned for adoption. The MATRA 2008 project “Multi-annual Plan for Monitoring Toxic Metals and Mycotoxins in Certain Foodstuffs” is planned for implementation. Fisheries and Rural Development (OG 35/08). The upgrading of establishments will be monitored regularly. The new Sanitary Inspection Act will enter into force on 1 January 2009. work continued on aligning Croatian legislation with that of the EU. Veterinary policy A) ACHIEVEMENTS IN 2008 In March 2008. Ordinance on amendments to the Ordinance on the obligatory identification and registration of bovine animals (OG 41/08). pursuant to which the sanitary inspection service will be centralised and all inspectors become employees of the Ministry of Health and Social Welfare.12.2009 Representatives of the Food Safety Department were speakers at 12 workshops and seminars aimed at familiarising food business operators with new regulations. and quarterly reports produced. The following pieces of subordinate legislation were drawn up and published: 1.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In addition. As part of the project. the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture. Implementation measures In 2009. etc. In 2008. The Sanitary Inspection will begin conducting inspections of HACCP-based self-inspection systems established by food business operators. Pursuant to this Regulation. education and specialised training will continue to be provided through seminars. 248 . The implementation of the MATRA 2007 project “Capacity Building for Implementation of the HACCP Principles in Institutional Kitchens” will continue. 3. workshops.

Ordinance on the monitoring of certain substances and residues thereof in live animals and animal products (OG 79/08). 18. 14. Ordinance concerning the collection of information during inspections of production sites on which animals are kept for farming purposes (OG 74/08). 25. 19. 10. Ordinance on the method of conducting controls for trichinella in meat (OG 62/08). 28. Ordinance on animal health conditions governing trade in and importation of embryos of domestic animals of the bovine species (OG 74/08). Ordinance laying down requirements regarding introduction of products of animal origin in personal luggage of travellers (OG 35/08). Ordinance on feed hygiene (OG 41/08). 8. Ordinance on microbiological criteria for food (OG 74/08). Ordinance laying down the requirements that must be met by control posts for animals (OG 37/08). Ordinance on the list of epizootic diseases to be suppressed when importing animals into the Republic of Croatia (OG 62/08). 13. 4. Ordinance on feedingstuffs intended for particular nutritional purposes (OG 35/08). 9. Ordinance on the protection of animals at the time of slaughter or killing (OG 39/08). Ordinance on specific control methods in the framework of the national programmes for the control of salmonella in poultry (OG 72/08). sampling methods and criteria for the evaluation of results of laboratory tests for the confirmation and differential diagnosis of swine vesicular disease (OG 99/08). and on prevention and control of certain diseases in aquatic animals (OG 42/08). 17. 12. 11. Ordinance on the diagnostic manual for avian influenza (OG 99/08). 22. 20. Ordinance on diagnostic procedures. Ordinance on the requirements to be fulfilled by veterinary border inspection posts (OG 72/08). 249 . Ordinance on the animal health requirements applicable to the trade in and imports of semen of domestic animals of the porcine species (OG 112/08). Ordinance on maximum residue limits of veterinary medicinal products in foodstuffs of animal origin (OG 75/08). 23. Order prohibiting the use in stockfarming of certain beta-agonists and substances having a hormonal or thyrostatic action (OG 112/08). POLITICAL CRITERIA 3. 27. Ordinance laying down the procedures for the reduction of the prevalence of Salmonella enteritidis and Salmonella typhimurium in broilers (OG 72/08). 6. Order recognising anti-rabies vaccines (OG 39/08).I. Ordinance on animal health requirements applicable to trade in and imports of semen of domestic animals of the bovine species (OG 60/08). 26. 24. Order prohibiting the placing on the market and use of bovine somatotrophin (OG 93/08). 15. Ordinance on animal health requirements for aquaculture animals and products thereof. 16. Ordinance on measures to control and combat African horse sickness (OG 112/08). 7. 5. 21. Ordinance laying down minimum rules for the protection of chickens kept for meat production (OG 79/08). Order on additional requirements for the surveillance of avian influenza in wild birds (OG 70/08).

The categorisation of all food business establishments was completed in April 2008 in accordance with the acquis communautaire. Ordinance on the placing on the market of feed materials and compound feedingstuffs (OG 112/08). Ordinance on the animal health conditions for imports of certain birds and the quarantine conditions thereof (OG 123/08). as well as 40 establishments that handle animal by-products. customs warehouses or operators supplying cross border means of sea transport (OG 139/08).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . 39. Ordinance on the African swine fever diagnostic manual (OG 116/08). the Ordinance on the obligatory identification and registration of ovine and caprine animals (OG 111/07) was adopted. Ordinance on detailed rules on official sampling for the monitoring of certain substances and residues thereof in live animals and animal products (OG 138/08). 33. Ordinance on the issuance of veterinary-health certificates for live animals and products of animal origin moving in international trade (OG 137/08). 32. which is aligned with Directive 92/102/EEC and Decision 2000/678/EC. Ordinance on the manner of conducting veterinary health checks and controls on products of animal origin moving across the borders of the Republic of Croatia (OG 132/08). Several training courses were held 250 . As regards the identification and registration of sheep and goats. The remaining pieces of subordinate legislation are being drafted and are expected to be adopted within the time limits set in the 2008 NPAEU.2009 29. Order banning the placing on the market and the import and export of cat and dog fur and products containing cat or dog fur (OG 100/08). 35. The development of this Plan has started and the first draft is expected to be finished in the fourth quarter of 2008. institutes or centres (OG 116/08). 34. The “Action Plan for the Control and Eradication of Classical Swine Fever in Domestic Pigs and Wild Boars” was drawn up in 2008. 40. and Directive 64/432/EEC in the part relating to the register of pigs. free warehouses. 37. As regards the identification and registration of pigs. 38. Detailed rules for its implementation were published along with the Ordinance. Ordinance on the methods of veterinary checks and certification conditions for products destined for introduction into free zones. Teams of county and state veterinary inspectors from the MAFRD categorised 960 food business establishments that handle food of animal origin. 31. the Ordinance on the obligatory identification and registration of pigs (OG 51/07) was adopted. Ordinance on measures to prevent the spread of highly pathogenic avian influenza to captive birds kept in zoos and approved bodies. During 2008. the system for the identification and registration of pigs was established and all necessary measures were taken to achieve full operability of the database for bovine animals (Central Register of Bovine Animals). Ordinance on conditions for non-commercial movements of young dogs and cats (OG 124/08). The implementation of the international CARDS 2004 projects “Capacity Strengthening of the Veterinary Border Inspection“ and “Further Capacity Building in the Area of Live Animals and Food Products“ continued in 2008. 36. which is aligned with Regulations (EC) No 21/2004 and (EC) No 1505/2006 and Decision 2006/968/EC. Ordinance on veterinary checks in trade with the European Union Member States with a view to the completion of the single market (OG 139/08). 30. Ordinance on the guidelines for the development and implementation of surveillance programmes for avian influenza in poultry and wild birds (OG 114/08). The categorisation of these establishments will serve as the basis for the future National Plan for the Upgrading of Establishments.

and 192 official veterinarians. and the final version is to be completed in 2009. With regard to the strengthening of administrative capacities. The first draft is expected to be finished in the fourth quarter of 2008. training will continue to be provided for the staff of the Veterinary Directorate and the Veterinary Inspection Directorate and the professional staff of the Croatian Veterinary Institute through training courses. trade in live animals and products of animal origin. 251 . These projects are expected to be completed in early 2009. As regards the assessment of food business establishments that handle food of animal origin. To ensure improved efficiency. The development of the plan is in progress and the first draft is expected to be finished by the end of 2008. One of the key priorities in 2009 is the further recruitment of staff in the civil service. The National Programme will include individual plans of upgrading and deadlines for correcting deficiencies. In accordance with the above-mentioned Strategy. while others will specialise in veterinary public health and food safety. official veterinarians and veterinary inspectors. the Veterinary Directorate plans to recruit 24 employees and the Veterinary Inspection Directorate plans to increase the number of civil servants carrying out veterinary inspectional supervision from the present 104 state veterinary inspectors to 275. work will continue on the 2008 activities related to the preparation of projects to be funded by IPA pre-accession funds for the further construction and equipping of long-term veterinary border inspection posts and the procurement of equipment needed for the day-to-day work of the veterinary inspection service. the strengthening of the institutional framework and administrative capacities. workshops and study visits. POLITICAL CRITERIA for border veterinary inspectors. veterinary requirements applicable to the importation of animals and products of animal origin. which includes financing the system. some official veterinarians will specialise in animal health and welfare. In 2009. B) KEY PRIORITIES The key priorities in the field of veterinary policy are related to the priorities listed in the Accession Partnership and the European Commission’s 2008 Progress Report and they concern the further alignment of legislation in accordance with the Annex to the Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12: Food Safety. in accordance with EU requirements. of whom 83 will be state veterinary inspectors. animal welfare. 54 pieces of subordinate legislation are to be drawn up and published in 2009 for the purpose of alignment with the acquis communautaire in the following fields: animal health protection related to specific infectious animal diseases.I. Veterinary and Phytosanitary Policy into National Legislation. disposal of animal by-products. as part of the TAIEX programmes and new IPA projects. One of the key priorities in the field of veterinary policy is the development of a plan for the establishment of a new system for official controls on live animals and products of animal origin. the implementation of legislation in practice and the construction of long-term border inspection posts. In that context. recruitment is underway to fill 11 posts in the Veterinary Directorate and 35 posts in the Veterinary Inspection Directorate. In addition. work began on developing a national programme for the upgrading of food business establishments that handle food of animal origin.

5. 1.3. Ordinance on amendments to the Ordinance on the methods for monitoring performance and assessing the genetic value of pure-bred breeding animals of the bovine species (OG 142/08) B) KEY PRIORITIES The plan for 2009 is to finalise alignment with the acquis communautaire in the field of livestock breeding and zootechnics. Ordinance on acceptance of hybrid breeding pigs for breeding (OG 53/08). Ordinance laying down the minimum conditions for carrying out plant health checks of plants.2009 3.12. 2. and to develop a programme to improve the quality of milk in the Republic of Croatia.4.12. Ordinance on keeping herd books and breeding registers and registration therein of pure-bred breeding animals of bovine species (OG 135/08). 3. Plant health protection A) ACHIEVEMENTS IN 2008 Legislative measures Work continued on aligning implementing regulations envisaged by the 2008 NPAEU. in accordance with the 2008 NPAEU. Ordinance laying down the conditions for participation of equidae in competitions. ova and embryos of pure-bred breeding equidae (OG 93/08). 8. Ordinance on the amendment to the Ordinance on the methods for monitoring performance and assessing the genetic value of pure-bred breeding pigs (OG 64/08). and on the collection of data concerning competitions for equidae (OG 154/08). 4. Ordinance on the conditions for entering hybrid breeding pigs in the breed register (OG 53/08). 3. Order on measures to prevent the introduction and spread of Pepino mosaic virus (OG 56/08). 252 . the following implementing regulations were prepared and published: 1. 7. 2. and three more are planned for adoption by the end of the year. Zootechnics A) ACHIEVEMENTS IN 2008 Five pieces of subordinate legislation were adopted in 2008. their semen. Ordinance on the form and content of the zootechnical certificate for pure-bred breeding sheep and goats. Thus. plant products or other regulated objects at points of entry (OG 50/08). 6.4. as listed below.12. ova and embryos (OG 100/08).1. Phytosanitary policy 3. Ordinance on the form and content of the certificate of origin of semen.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .

workshops were held for producers. together with experts from the Plant Protection Institute and Forestry Inspection. During 2008. the procedure began for granting authorisation for the issue of plant passports to those registered in the Phytosanitary Register. importers and distributors of fruit and vine planting material. a TAIEX-organised workshop “The implementation of the plant passport system for fruit and vine planting material. 7. as well as data about production sites and planned plant production. experts from the Plant Protection Institute. In late September/early October. (Smith) Yabuuchi et al. in the Ministry of Agriculture. The programme was implemented in the field by the Phytosanitary Inspection. seed potatoes and ornamental trees and shrubs.sp. the scope of these measures and actions is limited by the financial resources. However. ornamental forest plants and planting material of forest plants” was held for the competent administrative and inspection staff of the MAFRD and the MRDFWM. De Cock & Man in ‘t Veld. or incorrectly marked. destruction or treatment of wood packaging material that is not marked according to regulations. for the purpose of conducting plant health checks in accordance with the implementing regulations. Ordinance on measures to prevent the introduction and the spread of oriental chestnut wasp − Dryocosmus kuriphilus Yasumatsu (OG 124/08). following a transitional period. the Phytosanitary Inspection began ordering the return. Ordinance establishing the measures to prevent the introduction and spread of Phytophthora ramorum Werres. The monitoring programme covers the organisms harmful to plants that are monitored in the EU Member States. POLITICAL CRITERIA 3. Implementation measures In 2008. The workshops were also attended by representatives of the Phytosanitary Inspection and the Plant Protection Institute. The eighth Programme of Specific Surveys for Certain Organisms Harmful to Plants has been adopted. Ordinance on amendments to the Ordinance on conducting systematic surveys and on taking measures to prevent the spread of and to control potato ring rot caused by Clavibacter michiganensis (Smith) Davis et al. sepedonicus (Spieckermann et Kotthoff) Davis et al. gozdarstvo in prehrano) and in Slovenian nurseries producing the planting material concerned.nov. and is based on the relevant directives and decisions of the European Commission and of the Council. (OG 89/08). 6. were sent to competent phytosanitary inspectors. Following the workshops. This procedure is underway and will continue in 2009. infrastructure and human resources available. to inform them about the procedure for registration in the Phytosanitary Register. while the second part was held in Slovenia.I. plant products and other regulated objects subject to plant health checks (OG 99/08).). Ordinance on points of entry for consignments of plants. The first part of the workshop was held in the MAFRD in Zagreb and in the field in nearby nurseries. registration in the Register began in accordance with the adopted plan (starting with fruit and vine planting material. during which phytosanitary inspectors and customs officers distributed leaflets to importers explaining the content and application of phytosanitary provisions concerning wood packaging material. (OG 89/08). Ordinance on amendments to the Ordinance on conducting the systematic surveys and on taking measures to prevent the spread of and to control brown rot in potato tubers and bacterial wilt in potato and tomato plants caused by Ralstonia solanacearum. and experts from other relevant services and institutions. 8. This programme describes the actions and measures to be taken during specific surveys. with respect to the establishment of the Phytosanitary Register. Forestry and Food (Ministarstvo za kmetijstvo. 253 . seed potatoes etc. Ordinance on measures to prevent the introduction and the spread of the pine wood nematode Bursaphelenchus xylophilus (Steiner et Buhrer) Nickle et al. 5. Ordinance on measures to prevent the spread of the western corn nematode Diabrotica virgifera Le Conte (OG 80/08). (OG 80/08). In the second half of 2008. In early 2008. ssp. Relevant data from the Phytosanitary Register. 4. the provisions of the Ordinance on the plant health register and plant passports (OG 54/07) began to be implemented. 9. (OG 64/08).

and the next phase is to invite tenders and select a company to develop and implement the system. estimate of costs. In early 2008. Funds have been secured from a World Bank loan. and the necessary building permits are being obtained. A considerable amount of time was devoted to the development of a table to systematically arrange data on quarantine pests. work continued in 2008 on improving the knowledge and skills of phytosanitary inspectors through various national and international workshops and seminars. while 25% of the value of the project will be covered by State Budget funds. plant products and other regulated objects subject to plant health checks. MetkoviÊ and KarasoviÊi. The Strategy is expected to be adopted by the end of the calendar year. From January to October 2008. the ports of Rijeka and PloËe. methods for detecting and identifying them. 254 . One of its main subcomponents is the Information System for the Phytosanitary Sector and for the Phytosanitary Inspection Sector. plant products and other regulated objects subject to plant health checks (OG 99/08). In late 2008. in co-operation with the competent staff of the relevant Sectors. Thus. The main objective of this project is to construct two longterm phytosanitary BIPs (Zagreb Airport and the port of Rijeka) and to equip three long-term phytosanitary BIPs (Zagreb Airport.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The selected consultancy company. In addition to the Phytosanitary Inspections. the Veterinary Inspection and the Sanitary Inspection are also involved in this project. In 2008. etc. the Action Plan was updated and a series of activities was undertaken to further improve co-operation between the Phytosanitary Inspection and other services operating at borders. developed as part of the CARDS 2001 project “Integrated Border Management − Inter-agency Co-operation“. Intensive efforts were made to update existing chapters and write new chapters of the manual for phytosanitary inspectors.2009 For the purpose of continuing the training of phytosanitary inspectors. and the commission for the development of the Strategy was set up. has developed a conceptual design for the ICT for the Phytosanitary Sector and for the Phytosanitary Inspection Sector. The project fiche. resulting from the implementation of the newly adopted regulations. Representatives of Zagreb Airport will themselves prepare all the necessary technical and project documentation for the construction of the Zagreb Airport phytosanitary BIP and obtain the necessary building permits.. which will still apply after the accession of the Republic of Croatia to the European Union. Zagreb Airport. as part of the PHARE 2005 project “Upgrading of Long-term Veterinary and Phytosanitary Border Inspection Posts”. need to be constructed and equipped and will remain in operation after the accession of Croatia to the EU. the Tovarnik phytosanitary border inspection post was excluded from the list of points of entry for consignments of plants. Stara Gradiška. eight long-term phytosanitary border inspection posts (phytosanitary BIPs) have been designated. three new phytosanitary inspectors were recruited to posts already classified and described. The proposal is currently being evaluated by the World Bank. work continued on the development of a concept design for a comprehensive Information and Communication Technology System (ICT) for the Ministry. market surveys. They are: the road border crossings at Bajakovo. technical assistance was provided for the development of technical and project documentation necessary for the construction and equipping of the infrastructure needed for phytosanitary inspections at three phytosanitary border crossing points (the port of Rijeka and the road border crossings at MetkoviÊ and KarasoviÊi) which will remain in operation after the accession of the Republic of Croatia to the EU (long term phytosanitary BIPs). and references to general and specific phytosanitary requirements. Part of the funds (75%) needed for the construction of these long term BIPs will be provided by the EU. have been completed. According to the concept design. work began on preparing working materials for the development of the Strategy for the Development of the National Phytosanitary Service. During the further implementation of the National Strategy for Integrated Border Management. According to the new Ordinance on points of entry for consignments of plants. the port of Rijeka and the road border crossing at Bajakovo) until Croatia’s accession to the EU. due to the increased amount of work assigned to the Phytosanitary Inspection. necessary designs. Phytosanitary and Sanitary Border Inspection Posts“. The documentation prepared within this project for the port of Rijeka phytosanitary BIP serves as the basic documentation for the IPA 2008 project “Continued Support for Capacity Strengthening of the Veterinary. the building and implementation of the ICT is expected to be completed about 15 months after development begins. technical specifications for equipment and work. and Zagreb Post Office.

seminars and study visits. phytosanitary and sanitary inspections at long term BIPs. IT experts. etc. which are yet to be adopted. and enable them to acquire adequate IT skills. The construction of facilities for the purposes of border veterinary. 255 . in accordance with its competencies. B) KEY PRIORITIES Legislative measures In 2009. but are still vacant.e. The continuing gradual relocation of phytosanitary inspectors from phytosanitary BIPs to regional offices is also planned. such as chemists. additional training will be provided for phytosanitary inspectors through national and international workshops. continue to carry out ongoing phytosanitary controls. The building permit was obtained in March 2008. In the coming period. and the recruitment of experts specialised in other key areas. citrus distributors and warehouses. and phytosanitary inspections. i. and is expected to be completed by the end of 2009. One ecotoxicologist was employed in the second quarter. POLITICAL CRITERIA Preparations for the construction of an office building for the Institute for Plant Protection in the Agriculture and Forestry of the Republic of Croatia continued in 2008. which will be conducted after the further establishment of the Register. as regards persons registered in the Register. it is planned to provide and equip adequate inspection facilities at inland inspection sites.I. the alignment of phytosanitary legislation with the remaining EU directives and decisions concerning plant health − harmful organisms will continue. The recruitment of the planned number of staff in the Phytosanitary Sector departments is planned for this period. The documentation prepared by an architecture company is currently being evaluated by World Bank experts. etc. Implementation measures In 2009. and the next phase is to invite tenders.. the MAFRD adopted the draft proposal for the Strategy for the Development and Reorganisation of the Institute for Plant Protection in the Agriculture and Forestry of the Republic of Croatia for the coming four-year period. Phytosanitary and Sanitary Border Inspection Posts“. etc. In January 2008. work will continue on informing other persons who must be included in the Phytosanitary Register (importers. The implementation of the objectives of the Strategy began in 2008. Registration in the Register and the granting of authorisation for the issue of plant passports will continue. within the IPA 2008 project “Continued Support for Capacity Strengthening of the Veterinary. In this context. is planned to commence during 2009. intensive work will continue to be done on developing and updating the manual for phytosanitary inspectors. In accordance with the estimated scope of work in the field. administrative staff. the plan for this period is to recruit new phytosanitary inspectors to fill positions that have already been classified and described. toxicologists.). In accordance with the further establishment of the Register and the gradual establishment of a pilot plant passport system that will be applicable only in the territory of the Republic of Croatia. producers and distributors of propagating material: vegetable and flower seedlings. it is planned to further supplement and modernise equipment for the purposes of phytosanitary inspection. Zagreb Airport. to further improve phytosanitary inspectors’ knowledge of foreign languages. continued in the fourth quarter. In order to ensure that uniform work procedures are applied by phytosanitary inspectors. bilateral projects. With regard to the implementation of new regulations. the Phytosanitary Inspection will. until Croatia’s accession to the EU.) of their obligation to register in the Phytosanitary Register and of the establishment of the plant passport system. select a building contractor and begin construction. the port of Rijeka and the road border crossing at Bajakovo. as is the continued provision of training through new EU assistance projects (TAIEX. firstly with the recruitment of experts specialised in areas currently not adequately covered.

will co-operate with experts from companies developing the necessary databases. Funds for construction will be provided from pre-accession funds and the State Budget. Implementation measures 256 . Plant Protection Products and Pesticide Residues A) ACHIEVEMENTS IN 2008 Legislative measures Work continued on aligning legislation with the acquis relating to plant protection products and pesticide residues. but also with the recommendations of the expert bodies of the European Union. are planned for implementation. in accordance with the relevant EU directives. With regard to national legislation. web pages and portals needed for the development of the ICT system of the Ministry.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . A condition for the implementation or improvement of current activities is the provision of additional budgetary resources. as well as the Phytosanitary Inspection Sector. Throughout 2009. The construction of an office building for the Plant Protection Institute is planned for 2009. PPPs in respect of which decisions on withdrawal had been issued were excluded from the List and newly authorised PPPs were added. The new List of Authorised Plant Protection Products (OG 10/08) was also published. to finalise the setting up of new organisational units with a new job description and classification scheme.4. Finally. the Ordinance on border crossing points through which plant protection products may be transported (OG 21/08) was adopted.12. on the basis of which the most efficient method of controlling harmful organisms will be determined.2009 The construction of these and the remaining phytosanitary BIPs. other methods of monitoring plant health status. In order to ensure that the status of active substances contained in plant protection products (PPPs) is aligned with that of active substances in the EU. this means finalising the recruitment of planned staff. The Ordinance will be published in the Official Gazette by the end of December 2008. The drafting of the Ordinance on the methods of sampling for the official control of pesticide residues in and on products of plant and animal origin (OG 77/08) was completed in 2008. both within and outside the MAFWM. in 2009. is planned before the accession of Croatia to the EU. Work will also continue on further improving specific surveys of organisms harmful to plants. all three departments of the Phytosanitary Sector. The Ordinance will be published by the end of 2008 and apply from 1 January 2009. the List of active substances authorised for use in PPPs was regularly updated according to the amendments to Annex I to Council Directive 91/414/EEC. the objectives set out in the Strategy for the Development of the National Phytosanitary Service. in accordance not only with plans already made. training them and acquiring the necessary infrastructure. SW applications.2. with the final aim of connecting the entire phytosanitary service and institutions. and procedures for processing data and preparing usable reports. In particular. The plan for 2009 is to continue implementing the Plant Protection Institute’s Strategy. 3. In the same year. and to proceed with the planned recruitment. The latest List of active substances authorised for use in PPPs in the Republic of Croatia was published in the Official Gazette (8/08). which will serve as the basis and guide for the planning and implementation of goals set in the next four-year period. work will continue on implementing the ICT system in the phytosanitary field. The Ordinance on maximum permitted residue levels of pesticides in and on products of plant and animal origin was drafted as part of the CARDS 2004 project “Further Development and Capacity Building in the Area of Plant Protection Products”.

lactofen. and subordinate regulations have been made under this Act. permitting the sale and application of such products 18 months from the date of application of the decision: The third and fourth decisions. in accordance with Annex VI to Council Directive 91/414/EEC. which began to apply on 1 June 2008. fish oil. the following activities were continued: the strengthening of administrative capacities of the MAFRD and authorised institutions. experts from the PPI and Agricultural Inspection on the planning and efficient implementation of the Programme for Post-registration Control of Plant Protection Products. i. phoxim. i. 64741-97-5. in accordance with the Act on Plant Protection Products (OG 70/05). flumetsulam. chlorophacinone. lecithin. the provision of training and workshops for evaluators of PPP dossiers. paraffin oil (CAS numbers: 64741-88-4. trifluralin. petroleum oil (CAS numbers: 7486922-0. or which are not on the List of active substances authorised for use in plant protection products in the Republic of Croatia (OG 8/08). 64742-55-8/64742-57-7). POLITICAL CRITERIA Following the recommendations made as part of the CARDS 2002 project “Capacity Building in the Area of Agriculture. with deadlines for submission of the necessary documentation. 257 . organisation and control activities for management staff. In parallel with these activities. based on which the authorised PPPs have been classified into eight groups.e. re-registration applications have been received and re-registration of PPPs is underway. In order to harmonise the status of PPPs authorised in the Republic of Croatia with EU legislation and new Croatian legislation. 64741-89-5. the provision of training on planning. the authorisation of PPPs has begun. Under the CARDS 2004 project “Further Development and Capacity Building in the Area of Plant Protection Products”. the withdrawal of authorisation continued for PPPs containing active substances which are not included in Annex I to Council Directive 91/414/EEC. or the evaluation procedure for the active substance is underway. iron (3) pyrophosphate and vinclozolin. 8012-95-1). 64742-55-8. prohibits the placing on the market of PPPs containing the active substance paraquat. New decisions on withdrawing authorisation for PPPs were issued.e. Live Animals and Food Products”. in accordance with the new authorisation scheme and permit issue system for PPPs.I. prohibit the placing on the market of PPPs containing the following active substances: brodifacoum. authorisation was renewed for all PPPs for which authorisations expired in 2008. The re-registration (re-evaluation) programme for all PPPs containing active substances included in Annex I to Council Directive 91/414/EEC has been developed. the provision of training for staff of the MAFRD. the implementation of which began in September 2007 and will last for 18 months. provided that the active substance contained in the PPPs concerned is included in Annex I to Council Directive 91/414/EEC. the provision of training for staff of the MAFRD on checking the documentation submitted in support of applications for registration and re-registration of PPPs. the provision of training and workshops for the laboratory staff of the PPI and the Croatian National Institute of Public Health (CNIPH). and training on co-ordination activities during PPP registration and re-registration procedures for staff of the Plant Protection Products Department. The fifth decision. which began to apply on 1 December 2008. methomyl. the Institute for Plant Protection in Agriculture and Forestry of the Republic of Croatia (PPI) and the Institute for Medical Research and Occupational Health (IMR). in order to ensure that PPPs authorised pursuant to old regulations are now authorised in accordance with the Ordinance on the uniform principles for the evaluation and authorisation of plant protection products (OG 116/06 and 80/07). the drawing up of legislation on pesticide residues in accordance with the acquis communautaire. The deadlines for the first three groups of PPPs have expired. 64742-65-0.

Varaždin and Slavonski Brod. commodities that are important in the diet of the Croatian population: apples. training on planning. until the completion of the CARDS 2004 project “Further Capacity Building in the Area of Plant Protection Products”. EU legislation. The objective of the Programme is to check whether the authorised PPPs comply with the prescribed requirements. 258 . rice. B) KEY PRIORITIES Legislative measures It is planned to continue aligning the List of active substances authorised for use in plant protection products in the Republic of Croatia with new directives on the inclusion or non-inclusion of active substances in Annex I to Council Directive 91/414/EEC and with the future amendments to Regulation (EC) No 396/2005 of the European Parliament and of the Council on maximum residue levels of pesticides in or on food and feed of plant and animal origin. pears. potatoes. 33% will be collected in Zagreb. which is aligned with EU requirements. i. and. peaches or nectarines. oranges or mandarins. and several workshops were held to ensure that all interested parties are better informed about the changes brought about by the new PPP registration system. providing training and workshops for evaluators of PPP dossiers. Laboratory analyses of samples of PPPs are conducted by the PPI. so-called “national”.2009 - Additional information letters were sent to PPP authorisation holders. it will be assessed to what extent pesticide residues exceeding MRLs pose a risk to consumers of food containing such levels of pesticide residues. The 2008 Programme covers PPPs based on the following active substances: pendimethaline and acetochlor. and spinach. Zadar. but supplement. carrots. bread. The 2008 National Monitoring Programme for Pesticide Residues in and on Products of Plant Origin was developed and its implementation is underway. training and workshops for the laboratory staff of the PPI and the Croatian National Institute of Public Health (CNIPH). the 2008 Programme for Post-registration Control of Plant Protection Products was drafted and is being implemented. are necessary for the full application of the Act on Plant Protection Products in practice.e. the Institute for Plant Protection in Agriculture and Forestry of the Republic of Croatia (PPI) and the Institute for Medical Research and Occupational Health (IMR). The objective of the Programme is to determine the level of pesticide residues in foods of plant origin. training on co-ordination activities during PPP registration and re-registration procedures for staff of the Plant Protection Products Department.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . based on selected active substances. organisation and control activities for management staff. big shopping centres and markets. peppers (fresh). Thus. The Programme covers the following products of plant origin: commodities covered by the EU recommendation concerning a co-ordinated Community monitoring programme: beans (pods). whether their physical and chemical properties comply with the decision on authorisation. Samples are collected by the Sanitary Inspection of the Ministry of Health and Social Welfare or by county sanitary inspection services in retail shops. cucumbers. and the remainder in Pula. Laboratory analyses are conducted by the CNIPH. implementing regulations which do not transpose. other commodities: lettuce (in which pesticide residues exceeding the MRL were found during the previous monitoring programme). work will continue on strengthening the administrative capacities of the MAFRD and authorised institutions. Of the total number of samples planned for collection. as such. by verifying. and to verify whether they comply with international and national standards concerning maximum residue levels (MRL) for pesticides. and pasta. In accordance with the provisions of the Act on Plant Protection Products. Implementation measures In accordance with the agreed work plan. It is also planned to continue drawing up other.

5. The 2009 National Programme for Post-registration Control of Plant Protection Products and the 2009 National Monitoring Programme for Pesticide Residues in and on Products of Plant Origin will be developed and implemented. Work will also be done on establishing a register of legal and natural persons engaged in trade in PPPs. Efforts will be made to improve the knowledge that the staff of the MAFRD need in order to check the documentation for registration and re-registration of PPPs. POLITICAL CRITERIA In order to protect human and animal health and the environment from the harmful effects of pesticides. Ordinance on amendments to the Ordinance on the inclusion of varieties in the list of varieties (OG 84/08). Quality of seeds and planting material A) ACHIEVEMENTS IN 2008 The following pieces of primary and subordinate legislation.12. and by persons using PPPs in forestry. Ordinance on amendments to the Ordinance on the marketing of agricultural propagating material of ornamental plants. Plant production 3. which will operate as a component of the comprehensive ICT system of the MAFRD. A system for mandatory record keeping on the use of PPPs by producers of plants and plant products intended to be placed on the market.12. 259 . In order to fulfil these activities. the withdrawal of authorisation will continue for plant protection products containing active substances for which decisions on non-inclusion in Annex I to Council Directive 91/414/EEC are adopted. Planting Material and Registration of Varieties of Agricultural Plants (OG 35/08).5. will be established. 3. it is planned to finalise the recruitment of the planned number of staff in the Plant Protection Products Department and experts in specific areas of pesticide risk assessment in the PPI.1. and Ordinance on methods of sampling and testing the quality of seeds (OG 99/08). Ordinance on registration in the registers of suppliers. laboratories and samplers of agricultural seed and agricultural planting material (OG 29/08). and Ordinance on the marketing of fruit plant propagating material and fruit plants intended for fruit production. Ordinance on the registration of varieties of agricultural plants (OG 99/08). One important activity will be the participation of the Plant Protection Products Department staff in planning and implementing an ICT system in the area of PPPs and pesticide residues. aligned with EU legislation. Ordinance on the inclusion of varieties in the list of varieties (OG 45/08). were adopted: Act on Amendments to the Act on Seeds.I. as well as the knowledge that experts from the PPI and IMR need to evaluate documentation in all areas of risk assessment. A register of legal and natural persons (service providers) who are engaged in the control and eradication of harmful organisms by means of PPPs will be set up. The following pieces of subordinate legislation are planned to be published by the end of 2008: Ordinance on the field inspection of the production of agricultural propagating material.

implementing regulations. VI and VII) and Commission Regulation (EC) No 2301/2002 of 20 December 2002 laying down detailed rules for the application of Council Directive 1999/105/EC as regards the definition of small quantities of seed): Ordinance laying down the requirements and criteria for the classification of forestry reproductive material into categories and quality classes and the manner of labelling.2. which do not transpose. as such. The Institute for Seeds and Seedlings plans to include 55 varieties in DUS testing. V. 260 . and. 3.2009 Registration in the Register of Seed Suppliers and the Register of Planting Material Suppliers began in 2008. Plant varieties protection A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on the Protection of Plant Varieties (OG 67/08) was adopted in 2008. so-called “national”. as is the drawing up of other. marking and packaging such material (OG 61/08). the continuing alignment of Croatian legislation with that of the EU is planned. In forestry. but supplement. out of a total of 214. Within the scope of responsibilities of the Ministry of Regional Development.12. B) KEY PRIORITIES In 2009. bringing Croatian legislation in line with that of the EU (Council Directive 1999/105/EC (Annexes II. The Republic of Croatia has developed a plan for DUS testing of varieties not subjected to DUS testing prior to inclusion in the list of varieties. work will continue on aligning implementing regulations with EU legislation in the field of quality of seeds and planting material. EU legislation.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the following subordinate legislation was adopted. III. IV. Forestry and Water Management. are necessary for the full application of the Act on Forest Reproductive Material in practice.5.

and entered into force on 1 January 2008. Within the Fleet Management Department. For the purpose of alignment of national legislation and administrative structure with the acquis. while the Freshwater Fishing Department is organised into the Section for Recreational Fishing and the Section for Commercial Fishing. which consists of two departments − the Department for Inspections at Sea and the Department for Inspections on Land. POLITICAL CRITERIA 3. which consists of two departments. Fisheries and Rural Development (hereinafter MAFRD). while producing the draft is anticipated for the fourth quarter of 2008. and also transposes the model of the European fish catch register. 7 and 8. A newly established sector within the Fisheries Directorate is the Sector for Structural and Market Measures in Fisheries. the Department for Aquaculture and the Freshwater Fishing Department. The obligation to produce such a document ensues from Council Regulation (EC) No 1198/2006. the Sector for Structural and Market Measures in Fisheries. The third sector organised within the framework of the new organisational scheme is the Fisheries Inspection Sector. there are three sections: the Fisheries Monitoring Centre (FMC). 4 and 6 is postponed until 1 January 2009. Administrative capacity The Fisheries Directorate is responsible for fishery policy issues as part of the Ministry of Agriculture. 3. the Fleet Management Department. employees of the Sector are also deployed in regional units of the Fisheries Directorate in the coastal counties of the Republic of Croatia. in 2008 the Fisheries Directorate underwent changes in its structure in line with the Regulation on the internal structure of the Ministry of Agriculture. There are three sectors within the Directorate: the Sector for Resource and Fleet Management. landing declarations and reporting of data on commercial fishing at sea (OG 95/07) was published on 17 September. the Fleet Management Section. FISHERIES A) ACHIEVEMENTS IN 2008 Legislative measures The New Ordinance on the register. The Ordinance on amendments to the Ordinance on the conditions and method of placement of fish and other marine organisms on the market (OG 104/08) was also adopted and published on 12 September 2008. the application of the provisions of Articles 6. The Department for Market Measures and State Aid in Fisheries also consists of two sections: the Section for Market Measures in Fisheries and the Section for State Aid in Fisheries. The Department for Structural Measures and International Co-operation in Fisheries consists of two Sections: the Section for Structural Measures in Fisheries and the Section for International Co-operation in Fisheries.13. Apart from the central office in Zagreb. paragraphs 2. 261 . Fisheries and Rural Development (OG 35/08). The National Fisheries Strategy is incorporated into the National Programme for the Accession of the Republic of Croatia to the EU for 2008 as an implementation measure. Implementation measures Within the framework of the project component of the pre-accession aid programme PHARE 2005 − technical aid contract no 2005-0505-0202 − support to the fisheries administration of the Republic of Croatia in drawing up the National Strategic Plan is also envisaged. The Ordinance is fully aligned with the legislation of the European Union in the sector. and the Fisheries Inspection Sector.I. The Department for Aquaculture consists of two sections: the Section for Freshwater Aquaculture and the Section for Marine Aquaculture. By virtue of the above-mentioned Ordinance. and the Section for Statistics and Economics in Fisheries. The Department for Resource and Fleet Management consists of four departments: the Marine Resources Management Department.

Furthermore. One of those planned is the Ordinance on establishing and recognising producer organisations in compliance with the provisions of Commission Regulation (EC) No 2381/2001. apart from the above-mentioned subordinate act. the adoption of the new Ordinance on the conditions and method for placement of fish and other marine organisms on the market is scheduled for adoption in the second quarter of 2009. Structural and market measures in fisheries In order to align structural and market policy with the provisions of the acquis. taking into consideration primarily the provisions of Council Regulation (EC) No 2371/2002 as well as the guidelines of the Common Fisheries Policy for the Mediterranean which are embodied in Council Regulation (EC) 1976/2006. as well as introducing a system of crosschecking among registers. The Act would regulate the issues of structural aid in fisheries pursuant to the acquis. the legal basis of whose adoption will be contained in the new Act on State Aid in Agriculture and Fisheries. Thus a part of national legislation related to the respective issues of inspections and controls in fisheries would be aligned with the provisions of Council Regulation (EEC) No 2847/1993. Market and State Aid to Fisheries. With regard to the organisation of the market. Implementation measures Resources and fleet The Fisheries Directorate will pursuant to Regulation (EC) No 1921/2006 of the European Parliament and of the Council of 18 December 2006 on the submission of statistical data on landings of fishery products in Member States and repealing Council Regulation (EEC) No 1382/91 introduce a system of data collection. Inspections and controls In order to establish full inspections and controls over landing sites and points of first sale. the Ordinance on the quality of preserved tuna and bonito. it is planned to adopt two subordinate regulations.2009 B) KEY PRIORITIES Legislative measures Resources and fleet For the purpose of alignment with the acquis with regard to resource and fleet management. the Fisheries Directorate is planning to draft the new Act on Structural. National fisheries policy would thus be aligned with the acquis. The following regulations will also be adopted in 2009: the Ordinance on the quality of preserved sardines. Commission Regulation (EC) No 498/2007 and Council Regulation (EC) No 104/2000. taking into consideration primarily the provisions of Council Regulation (EC) No 2371/2002. it is also planned to adopt in the second quarter of 2009 the Ordinance on market standards of fishery products. landing declarations and sales certificates. Throughout the fourth quarter of 2009. the legal basis for whose adoption is provided in the existing Marine Fisheries Act. as well extract all the aid mechanisms from the currently valid Act on State Aid in Agriculture and Fisheries. and its preliminary application is anticipated in the second quarter of 2009. Supervision and controls 262 . it is planned to draft and adopt the new Marine Fisheries Act in the second quarter of 2009.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Act will specify market measures and state aid in fisheries defined in Community legislation. Council Regulation (EC) No 1198/2006. The adoption of the Act on Structural. Market and State Aid in Fisheries is scheduled for the third quarter of 2009.

263 . with a particular emphasis on the Fisheries Inspection Sector. Structural and market mechanisms in fisheries Concerning implementation measures. In order to strengthen administrative capacities further. plus the head of the sector. while the acquis upon which the obligation to draw up such a programme document is based refers to Council Regulation No 1198/2006 and Commission Regulation (EC) No 498/2007. comprising 24 inspectors at sea. By the end of 2009. Fisheries and Rural Development. Strengthening administrative capacity On the basis of the adopted three-year recruitment plan. this sector should have a total of 34 employees. the Fisheries Directorate will in 2009 continue to implement PHARE 2005 Twinning components and will request 2 TAIEX seminars/technical assistance facilities in the field of structural measures and market policy. It is also planned to set up in the course of 2009 appropriate administrative structures assigned with special tasks and responsibilities with regard to the implementation of the measures of the European Fisheries Fund. the Fisheries Directorate will in the third quarter of 2009 draw up appropriate procedures and forms for implementing supervision and controls. in 2009 it is planned to strengthen the Fisheries Directorate in terms of the number of employees. Producing the draft of the Operative Programme ensuing from the National Strategic Plan is scheduled in the fourth quarter of 2009. By introducing the new Fisheries Directorate organisational scheme based on the Regulation on the internal structure of the Ministry of Agriculture. POLITICAL CRITERIA Pursuant to the relevant provisions of Council Regulation (EC) No 2847/1993.I. a total of 94 workposts in the Fisheries Directorate have been classified for the period 2008-2011. in the second quarter of 2009 it is planned to adopt the National Strategic Plan as defined in Council Regulation (EC) No 1198/2006. 9 on land.

Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic (OG 60/08) was adopted. and Council Regulation (EEC) No 3916/90 of 21 December 1990 on measures to be taken in the event of a crisis in the market in the carriage of goods by road. The new Act on Working Hours. Council Regulation (EEC) No 881/92 of 26 March 1992 on access to the market in the carriage of goods by road within the Community to or from the territory of a Member State or passing across the territory of one or more Member States. amended by Regulation (EC) No 484/2002 of the European Parliament and of the Council of 1 March 2002 amending Council Regulations (EEC) No 881/92 and (EEC) No 3118/93 for the purposes of establishing a driver attestation.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Road transport A) ACHIEVEMENTS IN 2008 Alignment of legislation The process of aligning legislation with the acquis communautaire in the area of road transport continued in 2008 in the field of social legislation related to road transport and admission into the occupation of road operator. amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC. The Act on amendments to the Road Transport Act (OG 63/08) was adopted. thus ensuring further alignment in the field of admission into the occupation of road operator and access to the market in the carriage of goods or passengers by road. and is aligned with the following EU acquis: 264 . Directive 2006/1/EC of the European Parliament and of the Council of 18 January 2006 on the use of vehicles hired without drivers for the carriage of goods by road.1.14. implemented by Commission Regulation (EC) No 2121/98 of 2 October 1998 laying down detailed rules for the application of Council Regulations (EEC) No 684/92 and (EC) No 12/98 as regards documents for the carriage of passengers by coach and bus. Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers. Council Regulation (EC) No 12/98 of 11 December 1997 laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State.2009 3. TRANSPORT POLICY 3. certificates and other evidence of formal qualifications intended to facilitate for these operators the right to freedom of establishment in national and international transport operations. Council Regulation (EEC) No 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus. The Act is aligned with the following EU acquis: Council Directive 96/26/EC of 29 April 1996 on admission to the occupation of road haulage operator and road passenger transport operator and mutual recognition of diplomas. certificates and other evidence of formal qualifications intended to facilitate for these operators the right to freedom of establishment in national and international transport operations. amended by Council Directive 98/76/EC of 1 October 1998 amending Directive 96/26/EC on admission to the occupation of road haulage operator and road passenger transport operator and mutual recognition of diplomas.14. Council Regulation (EEC) No 3118/93 of 25 October 1993 laying down the conditions under which non-resident carriers may operate national road haulage services within a Member State.

a Programme for an exam of professional competence for the occupation of road transport operator (OG 91/08) was adopted. as was the Ordinance on amendments to the Ordinance on the method and procedure of holding exams of professional competence for the occupation of road transport operator (OG 98/08). and Regulation (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport and amending Council Regulations (EEC) No 3821/85 and (EC) No 2135/98 and repealing Council Regulation (EEC) No 3820/85. In December 2008. The Act was aligned with the following: Directive 2004/54/EC of 29 April 2004 on minimum safety requirements for tunnels in the Trans-European Road Network. Directive 1999/62/EC of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures. and ensured further alignment with the following acts: Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC. Council Regulation (EC) No 2135/98 of 24 September 1998 amending Regulation (EEC) No 3821/85 on recording equipment in road transport. the Road Traffic Safety Act (OG 67/08) was adopted.5 tonnes (91/671/EEC) amended by Directive 2003/20/EC of the European Parliament and of the Council concerning the exception to compulsory use of safety belts in vehicles for official persons and for medical reasons. and Directive 2006/38/EC of the European Parliament and of the Council of 17 May 2006 amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructures. interoperability and electronic road toll systems. and on minimum safety requirements in the Trans-European Road Network. the Croatian Parliament adopted the Act on Amendments to the Public Roads Act (OG 146/08). In addition. - Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC. which ensured further alignment with Council Directive 96/26/EC by means of amendments. aligning it with the acquis in the field of the use of infrastructure for heavy goods vehicles. 265 . In addition. which ensured alignment with Council Directive 91/671/EEC of 16 December 1991 on the approximation of the laws of the Member States relating to compulsory use of safety belts in vehicles of less than 3. The Ordinance on tachographs and speed limiting devices (OG 89/08) was adopted and published. Directive 2004/52/EC of 29 April 2004 on the interoperability of electronic road toll systems in the Community. and - Regulation (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport and amending Council Regulations (EEC) No 3821/85 and (EC) No 2135/98 and repealing Council Regulation (EEC) No 3820/85. - Council Regulation (EC) No 2135/98 of 24 September 1998 amending Regulation (EEC) No 3821/85 on recording equipment in road transport and Directive 88/599/EEC concerning the application of Regulations (EEC) No 3820/84 and (EEC) No 3821/85. POLITICAL CRITERIA - Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities.I. which is in line with Council Recommendation of 4 June 1998 on a parking card for people with disabilities (98/376/EC). Directive 88/599/EEC concerning the application of Regulations (EEC) No 3820/84 and (EEC) No 3821/85. The Ordinance on the right to use the accessibility sign (OG 78/08) was also adopted.

the inspection of 1% of working days of drivers of vehicles covered by this Act. paragraph 3 of the Act on Working Hours. the Ordinance on amendments to the Ordinance on vehicle registration (OG 156/08) was adopted at the end of 2008. Public tender was published in December 2008. the Directorate of Road Traffic. i.e. type of fuel and power/weight ratio). Roadside checks were performed by road traffic inspectors and traffic police. Traffic inspection In accordance with Article 39. In addition. at the end of 2008. as the competent body for digital tachographs was sent to the European Commission for approval in November 2008.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Form of the vehicle licence was aligned with Council Directive 1999/37/EC of 29 April 1999 on the registration documents for vehicles. amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC. Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic (OG 60/08). which ensures that alignment of legislation in the field of carriage of dangerous goods is continued. by the end of 2008 the Directorate for Road Inspections fully performed checks within the scope defined by the article concerned. public opening and the procedure of opening tenders was adopted (OG 147/08). was adopted by the end of 2008. The Ordinance on transportable pressure equipment (OG 126/08) and the Ordinance on aerosol diffusers (OG 126/08) were adopted and will be aligned with Council Directive 1999/36/EC of 29 April 1999 on transportable pressure equipment and 2003/525/EC: Commission Decision of 18 July 2003 deferring the date of implementation of Council Directive 1999/36/EC. and checks of the premises of companies by road traffic inspectors in accordance with Article 39.e. a tender dossier has been prepared for the publication of a tender for the selection of a legal person with public authority to issue cards. which will ensure further alignment with Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers. adapted to technical progress with Commission Directive 2003/127/EC. so that at least 30% of the total number of checked working days are checked at the roadside. In addition. The Ordinance on minimum safety requirements for tunnels from the planning stage to the construction and exploitation stage will also be adopted by mid-2009. the Ordinance on amendments to the Ordinance on roadworthiness tests for motor vehicles (OG 148/08). tender dossiers. Simultaneously with the drafting of the above-mentioned Ordinance. the Ordinance on the amount of annual fees for the use of public roads paid upon registration of motor and towing vehicles and the Decision on the introduction and the amount of user fees will be adopted by the second half of 2009. the first draft of the National guidelines for safety policy in the field of digital tachographs was prepared and sent to the European Commission for its comments. and at least 50% on the premises of the company. a Form reporting the Ministry of the Sea.2009 Ordinance on the conditions for granting public authority to issue cards. For the purpose of further alignment of legislation in the field of prices and fiscal conditions. which will ensure further alignment with Directive 2004/54/EC of 29 April 2004 on minimum safety requirements for tunnels in the Trans-European Road Network. To this effect. paragraph 5 of the above-mentioned Act. Also in November 2008. B) KEY PRIORITIES Legislative activities The Ordinance on the initial qualification and periodic training of drivers will be adopted by mid-2009. Transport and Infrastructure. 266 . This was done by introducing data letter codes and the data that is currently missing (type-approval number. i. which is aligned with Directive 2000/30/EC of the European Parliament and of the Council of 6 June 2000 on the technical roadside inspection of the roadworthiness of commercial vehicles circulating in the Community adapted to technical progress with Directive 2003/26/EC.

railway infrastructure is under public ownership with the status of public goods for public use. Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic). In accordance with the above Act. construction. modernisation. The Railway Market Regulatory Agency was established as a regulatory authority by the Act on the Railway Market Regulatory Agency (OG 79/07) in accordance with Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification. Transport and Infrastructure (OG 41/08) and the Ordinance on the internal order of the Ministry of the Sea. which performs the function of an independent investigating authority. The above plans are based on the recruitment of new inspectors. managing and controlling the railway transport safety system. Obtaining expert and technical assistance for quality control checks on roads and in companies through the TAIEX assistance programme (workshops. the Railway Transport Safety Agency performs the function of the authority competent for safety.o. which as a basic document defines priorities concerning the development. was established by the Regulation on the internal structure of the Ministry of the Sea. The end of preparation of the final text of the National guidelines for safety policy in the field of digital tachographs and sending it to the EC for approval is planned for the first quarter of 2009. and with which the Republic of Croatia concluded an Agreement on railway infrastructure management on 15 June 2008. the Government of the Republic of Croatia issued a public invitation for the proposal of candidates for the president and members of the Railway Market Regulatory Agency Management Board. and charges for its use. and the establishment and monitoring of the operation of the safety management system of infrastructure manager. which will completely ensure the carrying out of checks in accordance with the requirements of Directive 2006/22/EC. namely the procurement of equipment and program support for the control of digital tachographs. seminars. 267 . the training of current inspectors.2. and construction (and completion) of railway infrastructure. In November 2008. POLITICAL CRITERIA Implementation measures Additional activities with the aim of introducing digital tachographs will continue in 2009.14. and professional and technical assistance for quality control checks at the roadside and in companies. The company HŽ Infrastruktura d. The Act on the Railway Transport Safety Agency (OG 120/08) was adopted in October 2008. The Directorate for Road Inspections plans to increase the number of checks in the course of 2009 (at least 2% of days performed by drivers of vehicles covered by the Act on Working Hours.o. 30/04 and 79/07). the professional training of newly employed ones. thus establishing the Railway Transport Safety Agency for the purpose of ensuring the impartial. Transport and Infrastructure (May 2008). the procurement of equipment. is a legal entity that manages the railway infrastructure. organisation and regulation of railway transport. An Independent Department for the Investigation of Railroad Accidents. open and non-discriminatory performance of regulating. On 5 March 2008. renovation and maintenance of the functionality of the railway infrastructure system for a period of five years. the Croatian Parliament adopted the National Railway Infrastructure Programme (OG 31/08). the amount of funds for the maintenance. modernisation (and renovation). This regulated mutual rights and obligations. 3. technical and other conditions for the safe conduct.I. railway operators and legal entities performing own account transport. study visits or expert missions) is also planned. Railway transport A) ACHIEVEMENTS IN 2008 Pursuant to the Railways Act (OG 123/03.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . depending on the number of newly employed workers in 2008. The following projects were launched at the end of 2008: the TAIEX “Study visit on Railway Infrastructure capacity and safety“ and the TAIEX “Seminar regarding the Implementation of Directive 2004/49/EC . which contains the provisions of Railway Safety Directive 2004/49/EC. In the course of 2008. together with the related framework projects “Staff Training Infrastructure Manager”. Directorate of Railroad Traffic published an announcement for the recruitment of new personnel in 2008. All published tenders had closed by the end of 2008. 268 . The projects should be finished by 2011 at the latest. The establishment and beginning of operations of the Railway Transport Safety Agency is planned for the second half of 2009. Republic of Croatia EuropeAid/126842/D/SER/HR” was launched. The need to establish a separate notified body will be considered in the course of 2009. Ordinance on the technical requirements for railway transport safety to be met by railway vehicles. the following subordinate legislation was adopted in 2008 in the field of safety and interoperability of railway transport in the Republic of Croatia: Ordinance on the method and terms of the provision of the safe flow of railway transport (OG 155/08). and their implementation should follow railway sector development in the next 2 years. A tender dossier was prepared for the above-mentioned projects. Transport and Infrastructure. The start of the implementation of the PHARE 2006 project “Restructuring and Development of the Croatian Railway system within the framework of EU legislation − Technical Assistance”. The implementation of the TAIEX project “Study visit on Railway Infrastructure capacity and safety“ and the TAIEX “Seminar regarding the Implementation of Directive 2004/49/EC −Railway Infrastructure capacity and safety“ is planned in 2009. as were all of the procedures for the publication of tenders. taking into account alignment with the acquis. “Staff Training Regulatory Body”. Ordinance on the technical inspection of railway vehicles (OG 155/08). as were the related framework projects: Staff Training Infrastructure Manager. Directorate of Railroad Traffic. Thus the adoption of the Ordinance on emergency events is envisaged. Ordinance on work hours of railway workers in railway transport (OG 105/08). The Ministry of the Sea. the establishment and start of operations of a competent and efficient Railway Market Regulatory Agency is expected in 2009.2 million. “National implementation plan of Technical Specifications for Interoperability” and “Preparation of Implementation of IT support” is envisaged in 2009. and Ordinance on the international carriage of dangerous goods by rail (RID) (OG IA 6/08). Ordinance on the technical requirements for railway transport safety to be met by railroads (OG 128/08). The Ministry of the Sea. Staff Training Regulatory Body. National implementation plan of Technical Specifications for Interoperability. and Preparation of Implementation of IT support. The total value of the projects is EUR 2. authorities and tasks of the Notified body will be provided by the date of the accession of the Republic of Croatia to the European Union. plans to recruit new employees in 2009.2009 Pursuant to the Railway Transport Safety Act (OG 40/07). lays down that the duties. the PHARE 2006 main project “Restructuring and Development of the Croatian Railway system within the framework of EU legislation − Technical Assistance.Railway Infrastructure capacity and safety“. In addition. Transport and Infrastructure. The Railway Transport Safety Act. B) KEY PRIORITIES Alignment with the acquis will continue in the course of 2009 with the adoption of subordinate legislation pursuant to the Railway Transport Safety Act.

the procedure of issuing. Inland navigation A) ACHIEVEMENTS IN 2008 Pursuant to the Inland Navigation and Inland Ports Act (OG 109/07 and 132/07). a request for technical assistance in the form of an expert mission was sent as part of the TAIEX assistance programme. 269 . the procedure for issuing authorisation. renewing and replacing boatmasters’ certificates. and the conditions to be met by persons performing the training of boatmasters. the method and responsibility for issuing type-approval and all other issues related to the management and administration of river information services in inland navigation in accordance with Directive 2005/44/EC of 7 September 2005. Alignment will be completed by the end of the second quarter of 2009 at the latest. and the validity of authorisation. aiming at the implementation of alignment of national legislation with Directive 92/106/EEC on the establishment of common rules for certain types of combined transport of goods between Member States.I. and Ordinance on river information services (OG 99/08) transposes the method of organisation of the RIS service. and Directive 2006/137/EC of the European Parliament and of the Council of 18 December 2006. conditions for and method of entering the profession. The ratification of this memorandum is expected in the Croatian Parliament in the first quarter of 2009. POLITICAL CRITERIA 3.14.4. in accordance with Council Directive (EEC) 87/540 of 9 November 1987. Ordinance on the occupations and professional competence of boatmasters (OG 38/08) transposes the occupations. professional competences. procedure and the appointment criteria for the technical supervisory body for certification of inland waterway vessels and the procedure and the conditions for recognised classification societies in accordance with Directive 2006/87/EC of the European Parliament and of the Council of 12 December 2006. 3.3. exam programmes. B) KEY PRIORITIES Depending on the recommendations of the TAIEX expert mission.14. the working group in charge of alignment of national legislation in the field of combined transport plans to complete alignment with Directive 92/106/EEC through the drafting of the Combined Transport Act. recognising. Ordinance on the technical supervisory body for certification of vessels in inland navigation (OG 99/08) transposes the composition. technical specifications for equipment and services. in accordance with Council Directive 91/672/EEC of 16 December 1991 and Council Directive 96/50/ EC of 23 July 1996. alignment with the acquis continued in 2008 through the following subordinate legislation: Ordinance laying down special conditions for running commercial transport services on inland waterways (OG 38/08) transposes the special conditions to be met by national boatmasters in order to run commercial transport services on inland waterways. In 2008. additional competences. Combined transport A) ACHIEVEMENTS IN 2008 A Memorandum of Understanding on the Participation of the Republic of Croatia in the Marco Polo II Community Programme was signed in Brussels on 1 October 2008.

the Republic of Albania. Romania. the Republic of Montenegro. Bosnia and Herzegovina.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Air transport A) ACHIEVEMENTS IN 2008 The Act on amendments to the Act on Obligatory and Proprietary Rights Relations in Air Transport (63/08) was adopted in 2008 thus ensuring alignment with Regulation No 2027/97 on air carrier liability in the event of accidents. Regulation No 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights. COM 2006/6/final). the Kingdom of Norway. and Regulation No 1107/2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air.2009 - In addition. amended by Regulation No 889/2002. 270 . Ordinance on fares for air services for passengers and goods (OG 53/08) implementing Council Regulation (EEC) No 2409/92 on fares and rates for air services. Order on establishing the list of air carriers subject to an operating ban within the territory of the Republic of Croatia (OG 40/08 and 50/08) implementing Regulation 2111/2005 on the establishment of a Community list of air carriers subject to an operating ban within the Community and on informing air transport passengers of the identity of the operating air carrier. Ordinance on certification of aircraft and project and product organisations (OG 40/08) implementing Commission Regulation (EC) No 1702/2003 laying down implementing rules for the airworthiness and environmental certification of aircraft and related products. As regards implementing activities relating to the process of adjustment to the EU system. the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo on the Establishment of a European Common Aviation Area (ECAA Agreement) (OG IA 4/08) was also adopted. Drafting of the Action Plan for shipping is envisaged in 2009 in accordance with the recommendations referred to in NAIADES − the European action programme for inland waterway transport. the Former Yugoslav Republic of Macedonia. the Republic of Iceland. the Republic of Croatia.5. B) KEY PRIORITIES The implementation of activities related to establishing a National Control Centre will be continued in 2009. as well as for the certification of design and production organisations. The Act on Ratification of the Multilateral Agreement between the European Community and its Member States. the Republic of Bulgaria. The following subordinate legislation was adopted in 2008: Ordinance on conditions and manner of issuing operative licences (OG 5/08 and 45/08) implementing Regulation 2407/92 on licensing of air carriers. parts and appliances.14. 3. implementation of the Inland Waterways Transport Development Strategy is envisaged in various spheres of inland navigation activity in line with the recommendations referred to in NAIADES − the European action programme for inland waterway transport (Communication from the Commission on the promotion of inland waterway transport “NAIADES“. the Croatian Parliament adopted the Inland Waterways Transport Development Strategy for the period 2008−2018 (OG 65/08). Ordinance on conditions and manner of providing air navigation services (OG 40/08) implementing Regulation (EC) No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation).

and their adoption is envisaged by the end of 2008. the EC was officially notified of the National Supervisory Body for the supervision of air navigation service providers. amendments to the Ordinance on the provision of earth services are being drafted. which should contribute to the faster and better performance of activities. 271 . and by adopting new regulations or amendments to existing legislation to align them with the regulations and directives referred to therein. alignment will also be ensured with the following regulations and directives: Regulation (EEC) No 2407/92 on licensing of air carriers .air navigation service provider certificates (OG 81/08) implementing Regulation (EC) No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation). Regulation (EC) No 785/2004 on insurance requirements for air carriers and aircraft operators .through amendments to the Act on compulsory insurance in transport (OG 151/05). POLITICAL CRITERIA - Ordinance on route and terminal charges (OG 37/08) implementing Commission Regulation (EC) No 1794/2006 laying down a common charging scheme for air navigation services. and - Ordinance on conditions and manner of issuing certificates on competence . It is planned to fully implement Annex 1 to the ECAA Agreement “Regulations applicable to civil aviation”. This procedure is still in progress. By adopting subordinate legislation. listing the relevant part of the acquis to be applied between the contracting parties. Alignment with some of the regulations and directives from Annex I to the ECAA Agreement will be ensured in accordance with EC comments and recommendations. In accordance with EC comments and recommendations. and Commission Regulation (EC) No 1315/2007 on safety oversight in air traffic management and amending Regulation (EC) No 2096/2005. Transport and Infrastructure Directorate of Air Traffic. In addition. separated from the Directorate of Air Traffic as a civil aviation authority. as stipulated in European and international regulations. In November 2008. B) KEY PRIORITIES In 2009. the preliminary report of the EC stated that the Republic of Croatia had achieved great progress in relation to the previous year and that it meets over 90% of the set requirements on the implementation of the first phase of the ECAA Agreement. and an Independent Department for Investigation of Accidents was established. Commission Regulation (EC) No 2096/2005 laying down common requirements for the provision of air navigation services. An announcement was published concerning 7 vacancies. With regard to strengthening administrative capacities and restructuring its organisational structure. Transport and Infrastructure as one of its organisational units. amendments to the Air Transport Act have been planned. Article 2 of the ECAA Agreement. This Department is now part of the Ministry of the Sea. - Ordinance on air space management (OG 58/08) implementing Regulation (EC) No 551/2004 on the organisation and use of the airspace in the single European sky (the airspace Regulation) and Commission Regulation (EC) No 2150/2005 laying down common rules for the flexible use of airspace (FUA Regulation). the investigation of aircraft accidents was separated from the Directorate of Air Traffic.I. which also constitutes one of the obligations of phase 1 of the ECAA Agreement.through the drafting of a new Ordinance on operating licences. the Republic of Croatia will proceed with the implementation of EU aviation legislation in the air transport sector in the part arising from Protocol IV. After the completion of the regular expert mission for the purpose of assessing the implementation of the ECAA Agreement in Croatia from 22 to 24 September of this year. three new Departments were established within the Ministry of the Sea. To this effect.

2009 - Directive 2006/93/EC on the regulation of the operation of aeroplanes covered by Part II. issuing certificates or refusing requests. initial processing of requests. who are working on the adoption and implementation of EU legislation on civil aviation transport will also continue (attending seminars. 3.14. Activities are being implemented in phases: the adoption of internal acts. the description of workplaces. reports on implemented procedures. The training of employees of the Ministry of the Sea. The amendments concerned ensured alignment with the EU principles of freedom of establishment in the part regulating the entry of ships into the Croatian Register in line with EC comments. of international standards for ship safety. in the part relating to control measures (Article 7 of Directive).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Croatian Parliament adopted the Act on amendments to the Maritime Code (OG 146/089. Volume 1 of Annex 16 to the Convention on International Civil Aviation. and the remaining provisions of Council Directive 97/70/EC of 11 December 1997 setting up a harmonised safety regime for fishing vessels of 24 metres in length and over. amended by Council Regulation (EEC) No 3089/93 and Council Regulation (EC) No 323/1999. The remaining provisions of Regulation (EC) No 782/2003 of the European Parliament and of the Council of 14 April 2003 on the prohibition of organotin compounds on ships have been implemented through the Ordinance on amendments to the Ordinance on the inspection and control of navigational safety (OG 38/08) and the Ordinance on amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia (OG 10/08). Directorate of Air Traffic. The procedure will be implemented in phases: receiving requests. Activities related to the start of operations of the Civil Aviation Agency will also continue in 2009. Transport and Infrastructure. Activities related to the issuing of certificates to the Croatia Control. The same Ordinance has been aligned with the relevant provisions of Council Directive 95/21/EC of 19 June 1995 concerning the enforcement. It is expected that the Agency will start operating in the first quarter of 2009. and - Council Regulation (EEC) No 2299/89 of 24 July 1989 on a code of conduct for computerized reservation systems. in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States. review of documentation. these amendments created the legal basis for the adoption of regulations that will ensure further alignment with Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC. the description of activities. Croatian Air Navigation Services have begun.through amendments to the Ordinance on the operation of aircraft. 272 . pollution prevention and shipboard living and working conditions (Port State Control) as amended. In addition. and decisions on the transfer of certain employees. The provisions of Council Directive 1999/35/EC of 29 April 1999 on a system of mandatory surveys for the safe operation of regular ro-ro ferry and high-speed passenger craft services (Article 13 of Directive) have been applied through the Ordinance on amendments to the Ordinance on inspection and control of navigational safety (OG 38/08). possible correction measures. equipment and documentation of the MSTI to the Agency. It is also expected that a sufficient number of experts will be recruited for the Civil Aviation Agency in 2009. courses and workshops). Maritime transport A) ACHIEVEMENTS IN 2008 In December 2008. the listing all existing documentation and equipment. considering decisions on issuing certificates. establishing a certification team. Chapter 3. audits. the systematisation of workplaces.6. and the procedure will continue in 2009. second edition (1988) .

surveys and certification (OG 03/08). considers it especially important for the CRS to gain the status of a recognised organisation pursuant to Article 4. and do not contain the provisions of the Regulation that apply directly upon the accession of the Republic of Croatia to the European Union. These obligations include that of the company co-operating with the coastal state in the case of a hazard or similar event. These Technical Rules are fully aligned with the acquis. with the date of Croatia’s accession to the European Union being the deadline for their entry into force. pollution prevention and shipboard living and working conditions (Port State Control). The Ordinance on amendments to the Ordinance on the contents. as founder of the recognised organisation the Croatian Register of Shipping (CRS). 273 . new Technical Rules (Part 1) (OG 130/07) have been drafted as the basic rules for the new system of Technical Rules for the statutory certification of maritime vessels. and to join the list of recognised organisations pursuant to Commission Decision 96/587/EC. forms and method of keeping ship documents and ship books of merchant marine ships (OG 39/08) has been aligned with the provisions of Directive 93/103/EC. The said Rules have also been aligned with the provisions of Regulation (EC) No 789/2004 of the European Parliament and of the Council of 21 April 2004 on the transfer of cargo and passenger ships between registers within the Community. through amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia (OG 10/08). the Ordinance concerned was aligned with certain provisions of Directive 2002/59/EC and Council Directive 95/21/EC. as laid down in Article 13. With the Ordinance on recognised organisations for ship inspection. and repealing Council Regulation (EEC) No 613/91. POLITICAL CRITERIA The Ordinance on marine pilotage (OG 39/08) transposes the provisions concerning the obligation of pilots to report deficiencies in respect of foreign ships which they learn of in the course of their normal duties. The obligation to hold on board ship the relevant collective agreements and national regulations for crews referred to in Article 8. paragraph 3 of Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations. of international standards for ship safety.I. and taking into account the exceptional contribution of the CRS to the protection of human life and protection of the marine environment. ensuring safe navigation and protection of the sea from pollution originating from vessels (OG 126/08). Ordinance on amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia was adopted at the end of 2008 (OG 155/08). The said Rules were adopted. paragraph 3 of Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of the working time of seafarers concluded by the European Community Ship-owners’ Association (ECSA) and the Federation of Transport Workers’ Unions in the European Union (FST) − Annex: European Agreement on the organisation of working time of seafarers has been transposed through the Ordinance on amendments to the Ordinance on the conditions and method of watchkeeping and carrying out other activities on board ships. alignment was ensured with Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations. Pursuant to the Maritime Code. in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States. The Republic of Croatia. which ensured full application of the 1965 Convention on the Facilitation of International Maritime Traffic (1965 IMO FAL Convention) pursuant to Directive 2002/6/EC on reporting formalities for ships arriving in and/or departing from ports of the Member States of the Community. yachts or boats. paragraph 1 of Council Directive 95/21/EC of 19 June 1995 concerning the enforcement. The aforementioned alignment has been ensured as the result of the Project “Maritime traffic safety: Strengthening administrative capacities − ship control and management” phases I and II. Pursuant to the provisions of Regulation (EC) No 789/2004 of the European Parliament and of the Council of 21 April 2004 on the transfer of cargo and passenger ships between registers within the Community. these are adopted by the Minister. In addition. as well as remaining obligations ensuing from Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC.

With regard to the unfavourable detention rate of Croatian-flagged ships in flag state controls in the areas covered by the Paris Memorandum. B) KEY PRIORITIES The provisions of Regulation (EC) No 725/2004 of the European Parliament and of the Council of 31 March 2004 on enhancing ship and port facility security with regard to passenger ships engaged in category A domestic navigation. 2. statistical and operational arrangements of the VTMIS system. With the aim of ensuring that all ships flying under the Croatian flag are certified by a recognised organisation on the day of the accession of the Republic of Croatia to the European Union. removal of the possibility of obtaining a concession for state public transport lines for regular maritime transport services for ship operators that have had ships detained in Croatia or in the region of the Paris Memorandum on Port State Control. removal of state aid to ship operators that have had ships detained in foreign ports. a Central register of ships and yachts and an internet website for checking the validity and authenticity of certificates of the competence and additional competence of seafarers was put into operation. and 6. carrying out of additional inspections and checks of Croatian ships in foreign ports. the Order on the maximum age of ships to be entered in the register of shipping in the Republic of Croatia (OG 38/08) was adopted in the framework of legislative activities. A central database on the embarkation and disembarkation of seafarers was launched at the beginning of 2008. With the aim of implementing Articles 4 and 5 of Directive 2003/25/EC of the European Parliament and of the Council of 14 April 2003 on specific stability requirements for RO-RO passenger ships. the training of Ministry staff. 3.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In addition. 5. increased supervision of recognised organisations. In December 2008. 4. the coastal infrastructure for the supervision of navigation. Along with permanent measures. the Republic of Croatia has formed a working group of repre- 274 . The Ordinance on places of refuge (OG 03/08) ensured that the obligations referred to in Article 20 of Directive 2002/59/EC are met. plus certain remaining requirements of Directive 2005/65/EC of the European Parliament and of the Council of 26 October 2005 on enhancing port security will be transposed in the third quarter of 2009 through the adoption of amendments to the Act on the Security of Merchant Ships and Ports Open to International Transport (OG 48/04). additional measures were introduced including: 1. institutional and operative measures and activities oriented towards achieving the defined goal. Croatia will submit a request to the European Commission for the Croatian Register of Shipping to gain the status of a recognised organisation in the first quarter of 2009. The plan covers permanent and occasional. an Activity Plan on improving fleet quality was adopted. and the reception. as well as the penalty provisions.2009 The amendments concerned also implemented Council Directive 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community. The Project “Maritime traffic safety: Strengthening administrative capacities − ship control and management” phases I and II is also being implemented through ensuring professional-technical support in establishing the IT. the enforcement of compulsory risk assessments and the application of requirements to other types of ships and ports where such ships call. legislative. and drawing up a study on the further development of the system. strengthening administrative capacities by recruiting new inspectors and additional training of safety navigation inspectors is underway. additional annual audits of the safety management systems in companies. use and distribution of AIS data at national level was completed. In November 2008.

reducing sea pollution from ships. and has given it the task of defining significant wave heights and areas in the Adriatic sea as the basis for imposing special requirements concerning stability. passed pursuant to the Act on Liner Shipping and Seasonal Coastal Maritime Transport Services (OG 33/06). The Ministry of the Sea. Croatian legislation will be fully aligned with the remaining provisions of Directive 2001/25/EC of the European Parliament and of the Council of 4 April 2001 on the minimum level of training of seafarers (as amended). POLITICAL CRITERIA sentatives from all Adriatic states. Through the adoption of the Ordinance on amendments to the Ordinance on ranks and certification of seafarers in the first quarter of 2009. The provisions of Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC in the part concerning the monitoring and collecting of data relating to ships will be largely applied in the Republic of Croatia through implementation of the Project “Maritime traffic safety: Strengthening administrative capacities − ship control and management” phases I and II with support from the PHARE 2005/2006 programme. which is expected by 2010. Transport and Infrastructure will continue to establish co-operation among Adriatic states in terms of the development of intercoastal transport connections (short sea shipping) and will participate in the development of the “Motorways of the Sea“ concept at regional level. the territorial sea and the protected ecological-fishing zone of the Republic of Croatia. The provisions of this Directive have a significant impact on the construction and fitting out of Croatian flagships operating on regular international lines. The Republic of Croatia will be ready to apply the said Directive by the date of its accession to the EU. institutional and technological system for monitoring all maritime shipping in internal waters. Transport and Infrastructure will co-ordinate activities with the aim of defining and establishing the Maritime Cluster. The Ministry of the Sea. and the Technical Rules (Part 6 − Subdivision) which came into force on 1 August 2007 (OG 77/07). a complete legislative framework will be instituted together with an organisational. as provided for in Regulation (EC) No 1406/2002 establishing a European Maritime Safety Agency. Upon completion of the above-mentioned activities. as part of an integrated maritime IT system. will be fully adjusted in terms of the possibility of data exchange to the requirements set by the European Agency for Maritime Safety. improving the results of search and rescue at sea. the provisions of the Directive will be applied through the Ordinance on mandatory requirements imposed on ships and ship operators in international liner shipping. funds from the Stage Budget have been appropriated so that hydrographical surveys may be conducted by the Croatian Hydrographical Institute. and making possible the exchange of data with the relevant bodies of the European Commission. The CVTMIS IT communication system. and particularly Directive 2005/45/ EC of the European Parliament and of the Council of 7 September 2005 on the mutual recognition of seafarers’ certificates issued by the Member States. 275 . This will have a direct impact on reducing the number of accidents at sea. With the implementation of all three phases of the Project no later than mid-2010. To specify significant wave heights.I.

road and inland waterway.o.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU .o. I-07747). road and inland waterway.o. HŽ PutniËki prijevoz d. The Decision on publication of the rules on state aid in the form of public service subsidies (OG 39/08) published the Rules on state aid in the form of public service subsidies. Council Regulation (EC) No 2255/96 of 19 November 1996 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail.o. HŽ Cargo d. road and inland waterway. allowed the implementation of basic market principles. as well as the transparent use of the State budget funds of the Republic of Croatia. Council Regulation (EC) No 543/97 of 17 March 1997 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail.o.o.o. and HŽ Infrastruktura d. In addition. road and inland waterway. The rules concerned are contained in the Commission Decision of 28 November 2005 on the application of Article 86.o. Council Regulation (EEC) No 1658/82 of 10 June 1982 supplementing by provisions on combined transport Regulation (EEC) No 1107/70 on the granting of aids for transport by rail.o. 276 . paragraph 2 of the EC Treaty to State aid in the form of public service subsidies granted to certain undertakings entrusted with the operation of services of general economic interest and the Judgment of the European Court of Justice of 24 July 2003 in Case C-280/00 Altmark Trans GmbH and Regierungspräsidium Magdeburg v Nahverkehrsgesellschaft Altmark GmbH 62000J0280 (IES /2003/ p. road and inland waterway. in November 2008 the Government of the Republic of Croatia adopted the Decision on the publication of rules on state aid in transport (OG 141/08). Council Regulation (EEC) No 3578/92 of 7 December 1992 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail. Railway transport The division of the national railway company in accordance with the Act on the Division of HŽ − Hrvatske željeznice d. road and inland waterway..7.14. Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes.. road and inland waterway. Regulation (EEC) No 1473/75 of the Council of 20 May 1975 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail.. State aid A) ACHIEVEMENTS IN 2008 Alignment of legislation The Republic of Croatia continued activities aligning legislation with the acquis in the field of state aid in the transport sector. and Commission communication — Community guidelines on financing of airports and start-up aid to airlines departing from regional airports. Regulation (EEC) No 1107/70 of the Council of 4 June 1970 on the granting of aids for transport by rail. Council Regulation (EEC) No 1893/91 of 20 June 1991 amending Regulation (EEC) No 1191/69 on action by Member States concerning the obligations inherent in the concept of a public service in transport by rail. HŽ VuËa vlakova d.2009 3. The Decision concerned published the rules contained in Regulation (EEC) No 1191/69 of the Council of 26 June 1969 on action by Member States concerning the obligations inherent in the concept of a public service in transport by rail. road and inland waterway.o. (Croatian Railways) (OG 153/05) into HŽ Holding d. Maritime transport A study entitled “Croatian Maritime Sector: State Aid and Market Access (Implementation of Regulation 3577/92 and Regulation 4055/86)“(EUROPEAID/119860/C/SV/multi) was prepared as part of the PHARE 2005 project in co-operation with the Croatian Competition Agency. Commission communication C(2004) 43 — Community guidelines on State aid to maritime transport.o. Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage).o.

POLITICAL CRITERIA In the railway transport sector. 277 . The granting of state aid in the railway transport sector is planned. the procurement of new railway vehicles. in 2008 state aid was granted to promote railway passenger and combined transport.I. On the whole. Railway transport Through the co-operation of companies from the railway transport sector and a consultancy. these funds are allocated to redundant workers. the process of restructuring the railway sector and the liberalisation of the railway market is continuing. and the modernisation of railway vehicles. the promotion of passenger and combined railway transport. and for the procurement of new railway vehicles and the modernisation of mobile capacities. Funds were also allocated for redundant workers (severance pay). B) KEY PRIORITIES Maritime transport Granting concessions for the remaining state lines will proceed in accordance with the provisions of the Act on Liner Shipping and the Seasonal Coastal Maritime Transport Service (OG 33/06).

62 TWh. On 18 October 2007.2009 3. Around 2. the launch of the Croatian Compulsory Stocks Agency (HANDA) has been very successful. Two of the signatories are producers using wind energy. and it has been concluded that there are no sufficient storage facilities for 90-day compulsory stocks available. Within the framework of their legal obligations. As far as electricity is concerned. It is currently pending adoption. As of 1 July 2008. The total annual electricity consumption by eligible customers amounts to 5. Trade in electricity is conducted on the basis of bilateral agreements. the Republic of Croatia became the sole shareowner of the entire Croatian Energy Market Operator. the electricity market was opened to all customers. in 2007 both operators prepared tri-annual plans for the development and construction of facilities for the transmission and distribution network in the period 2008-2010. which makes up 36% of total annual electricity consumption in Croatia. and the gas market as of 1 August.15. HEP − Distribution System Operator adopted and published the “Programme to ensure and implement the principles of objectivity. methods and deadlines for the submission of data as well as methods of calculation and deadlines for the payment of the fee required for the operation of HANDA and compulsory oil stocks and petroleum products. In this way. whereas HEP Supply. It should be emphasised that HEP − Transmission System Operator no longer collects an electricity transit fee. contracts electricity supplies with eligible customers. As far as oil is concerned. In the framework of the Agreement on the upgrading and modernisation of the transmission system. transparency and non-discrimination in the carrying out of energy activities by HEP − Distribution System Operator”. At the end of 2007. It regulates the content. the process of alignment continued in 2008. the autonomy and independence of the institution has been secured. which has been in force since 1 January 2008. The Programme for establishing the prerequisites and operations of HANDA and compulsory oil stocks and petroleum products has been drafted with the aim of securing compulsory 90-day stocks by 31 July 2012. the Act on Amendments to the Energy Act (OG 68/01. HEP − Transmission System Operator signed the two-year ITC Clearing and Settlement Agreement 2008-2009. 177/04 and 76/07). a daughter company of the HEP Group.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Act on Amendments to the Electricity Market Act (OG 177/04 and 76/07).1. which thus became entitled to participate on the market. The analysis of available storage facilities for compulsory stocks within the territory of the Republic of Croatia has been drafted. Energy product market and security of supply A) ACHIEVEMENTS IN 2008 On the basis of the already established legislative framework − the Gas Market Act (OG 40/07).970 customers enjoyed the status of eligible customers. The Ordinance on the organisation. including the two using wind energy. In the field of energy. and the Act on Amendments to the Act on Regulation of Energy Activities (OG 177/04 and 76/07) − which provides for the liberalisation of the electricity and gas market. 278 . The opportunity of being granted eligible producer status has so far been used by 19 producers. which is financed from the fees for the organisation of the electricity market. HEP − Transmission System Operator decided on a new ICT platform for market activities within its area of competence.15. monitoring and collection of the fee for HANDA operations and compulsory oil and petroleum product stocks (OG 3/08) was adopted in 2008.500 eligible customers accounting for 7 TWh are expected by the end of 2008. In December 2007. which are paid by all market participants in accordance with the Decision of the Government of the Republic of Croatia (OG 94/07). ENERGY 3. at the end of 2007. which would represent 45% of the total electricity market. by 1 June 2008 seventeen agreements on the regulation of mutual relations on the electricity market had been concluded between the Croatian Energy Market Operator and energy undertakings. on 9 October 2008 more than 1.

POLITICAL CRITERIA The physical building-up of stocks has begun concurrently with the search for a long-term solution for storage facilities. the competitiveness of the energy system. a suitable gas market model has been prepared which has been submitted for review along with the document entitled General Conditions for Gas Supply. the security and quality of supply of energy products reached a very high level in Croatia. and market activities have been separated from regulated and system activities. As far as the Mining Act is concerned. As a basis for drafting market rules. The Republic of Croatia plans to sign such agreements with the Italian Republic.000 tonnes of crude oil has been delivered and the delivery of an additional 80. Three fundamental energy-related objectives have been set: the security of the energy supply. B) KEY PRIORITIES One of the main priorities is the continuation of the process of strengthening administrative capacity in all institutions relevant to the energy sector. discussions are still in progress. including tourist areas with exceptionally high consumption in summer. and its adoption is planned for the first quarter of 2009. the sequence of reducing or cutting off the supply of natural gas for certain categories of customers in the event of emergencies. following the adoption of the Market Gas Act.000 tonnes will be contracted by the end of 2008. measures planned and implemented on an annual basis so as to recognise and eliminate the causes that might lead to the occurrence of emergency events. A document of crucial importance has been drawn up − Updating and upgrading of the energy strategy and implementation programme of the Republic of Croatia (the so-called Green Book) − which represents an extension of the 2002 Energy Development Strategy. As far as natural gas is concerned. System operators have been introduced for all activities. The Decision establishing the percentage of biofuels in the total share of energy fuel consumption in 2008 and on the percentage of biofuels that must be placed on the domestic market in 2008 (OG 52/08) has been issued. The drafting of bilateral intergovernmental agreements on the storage of compulsory oil stocks and petroleum products has begun. The drafting of the Biofuels Act is currently underway. and which has been subject to public debate scheduled to end by 10 December 2008. In 2008. The Regulatory Committee of the Energy Community has appointed the Croatian Energy Regulatory Agency as supervisor of the Implementation group for the establishment of the South East Europe Co-ordinated Auction Office. the first consignment of 135. The adoption of both documents is expected at the beginning of 2009. The measures for the protection of the security of natural gas supplies are in accordance with Council Directive 2004/67/EC Further strengthening of the administrative capacity of the Croatian Energy Regulatory Agency has continued. the Federal Republic of Germany. The percentage of biofuels in the total share of energy fuel consumption in 2008 amounts to 1. Measures to ensure a reliable and effective natural gas supply. and intervention measures in the event of an unforeseeable emergency. which have been provided by the Regulation can be divided into three categories: long-term measures. To this end. the criteria and models for determining sufficient quantities of natural gas to ensure a reliable supply of natural gas to protected customers. The Strategy for the management of the mineral raw materials of the Republic of Croatia has been adopted at the level of the Government of the Republic of Croatia. the Republic of Slovakia and the Republic of Slovenia. Security of supply is an area regulated under the Gas Market Act in accordance with Council Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply. the foundations have been laid for opening the market. and the sustainability of energy development.21%. As a result.I. the Republic of Hungary. the Regulation on the security of natural gas supply (OG 112/08) has been adopted. and the Kingdom of the Netherlands. It regulates measures for securing a reliable and effective supply of natural gas. and also the content of the gas supplier’s report on natural gas supply security. 279 .

with a view to achieving the national indicative target set on the basis of the Regulation on the quality of biofuels (OG 141/05). Implementing regulations to stimulate electricity generation as eligible electricity production from renewable energy sources and high-efficiency cogeneration are being applied (Tariff system for the production of electricity from renewable energy sources and 280 . the said documents will be adopted in a package together with the Strategy. Croatia has also proposed the establishment of an Interstate Committee to speed up the project. activities regarding the building-up of compulsory oil stocks and petroleum products will continue. which will transpose the framework of Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products (see: 1. the Ministry of Economy. regarding which Croatia. the two most favourable locations on the northern part of the Adriatic for an LNG terminal.21% of total expected fuel consumption in 2008. The Decision establishing the annual percentage of biofuels in the total share of energy fuel consumption in 2008 placed on the domestic market was issued. which has already been forwarded for Government procedure. In addition. will continue. Serbia and Croatia signed an agreement on the establishment of the Project Development Company in London which will be responsible for the promotion of the Constanza (Romania) − Trieste (Italy) Pan-European Oil Pipeline. Physical Planning and Construction are participating in the CA-EPBD II Project. is foreseen for December 2008.2. whereby the obligations of the Republic of Croatia will be aligned with the planned amendments to the acquis (the obligations of Member States until 2020). Free movement of goods). since the adoption of the Strategy for Energy Development of the Republic of Croatia is planned for the first quarter of 2009.2009 Project activities ensuring a greater security of supply of energy products. In addition. Montenegro and Albania have signed a Ministerial Declaration. Physical Planning and Construction have started participating in a project of directed action for the transposition and implementation of the Directive on energy end-use efficiency and energy services (CA ESD). Realisation of the Adriatic − Ionian Pipeline project is also a high priority. especially natural gas. and the study on the development of the applicability of alternative systems has been drawn up. By the end of the year. on the basis of multiple criteria. and the commencement of the construction of supplementary storage facilities. the establishment of a regional distribution of compulsory stocks. The Action Plan for the Implementation of the Directive concerning Energy Performance of Buildings has been adopted.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . The following documents have also been prepared for adoption: the Energy Efficiency Programme of the Republic of Croatia and the First National Action Plan for Energy Efficiency and the National Potential for Cogeneration. The quantity of biofuels established by the Decision amounts to 1. the oil companies of Romania. A further increase in physical crude oil stocks is planned for 2009 as well as the signing of bilateral intergovernmental agreements on the storage of compulsory stocks. and the Ministry of the Economy. At the beginning of 2008. An investment conference is planned for 2009.15. Activities which are to ensure a sufficient number of experts for the certification of buildings are being carried out. 3. Energy efficiency and renewable energy sources A) ACHIEVEMENTS IN 2008 The adoption of the Act on Efficient Energy Use. For this purpose a study has been conducted which proposes. which is equivalent to a share of 1.13 PJ. a relevant implementing regulation will be adopted. This regulates the compulsory quantities of biofuels that suppliers must place on the domestic market as well as methods of use of biofuels. which will among other things include further development of the production and use of renewable energy sources and cogeneration. Activities regarding Pan-European Oil Pipeline projects will also continue. However. Labour and Entrepreneurship and the Ministry of Environmental Protection. Labour and Entrepreneurship and the Ministry of Environmental Protection. A suitable environmental impact assessment study will be prepared in 2009 for the LNG terminal.

pursuant to the Act on Physical Planning and Construction (OG 76/07). Most of these applications were related to wind energy plants. For this purpose. New software has also been purchased. B) KEY PRIORITIES Pursuant to the Biofuels Act and the Act on Efficient Energy Use. which equals 1140 GWh. In addition. The CARDS 2004 RELEEL (Approximation of Renewable Energy Legislation and Energy Efficiency Labelling with the acquis) project will be completed in the first half of 2009. the Regulation on incentive fees for promoting electricity production from renewable energy sources and cogeneration (OG 33/07). Labour and Entrepreneurship (MELE). one new employee has been hired at the Ministry of Economy. wind and biomass energy. the Technical regulation on heating and cooling systems in buildings (OG 110/08) and the Technical regulation on energy economy and heat retention in buildings (110/08) were adopted. whereby the obligations of the Republic of Croatia will be aligned with the planned amendments to the acquis (obligations of Member States until 2020). geothermal and hydraulic energy and small hydro power plants with up to 10 MW in power) amounting to 5. Concerning the energy performance of buildings. The Ministry of Economy. the Regulation on the minimum share of electricity produced from renewable energy sources and cogeneration whose production is incentivised (OG 33/07). This will provide recommendations with regard to the development and application of economic instruments for promoting the use of renewable energy sources and energy efficiency as well as a system for the guarantee of origin for electricity from renewable energy sources and high-efficiency cogeneration (green and white certificates). Obligatory administrative procedures are being carried out as well as registration in the Register of projects and plants for the use of renewable energy sources and cogeneration. The Ministry of Economy. the Ordinance on attaining the status of eligible electricity producer (OG 67/07)). the methods of inspection of the certificates and their content and form. and of eligible producers (OIEKPP Register). Physical Planning and Construction continue to participate in the project of directed action for the transposition and implementation of the Directive on energy end-use efficiency and energy services (CA ESD). Labour and Entrepreneurship and the Ministry of Environmental Protection. More than 250 applications for the issuance of preliminary energy approval for the construction of plants and/or energy approval for construction or registration of already constructed plants in the OIEKPP Register had been received by September 2008. These regulate conditions and standards for persons who are to carry out the certification of buildings. the Ordinance on the certification of buildings (OG 113/08) and the Ordinance on the conditions and standards for persons carrying out the certification of buildings (OG 113/08) were adopted. The establishing of implementing activities pertaining to the further development of the production and use of renewable energy sources and cogeneration will be analysed. the Ordinance on the use of renewable energy sources and cogeneration (OG 67/07). the methods of certification. the adoption of relevant implementing regulations is planned for 2009. POLITICAL CRITERIA cogeneration (OG 33/07).8% of total electricity consumption by the end of 2010.I. the classification and identification of buildings for which public display of certificates will be obligatory. Continued activities are envisaged to achieve the set target for the production of electricity from renewable sources (solar energy. etc. Labour and Entrepreneurship and the Environmental Protection and Energy Efficiency Fund will continue to invite tenders for (co)-financing projects in the field of energy efficiency and renewable sources. 281 . Specific activities and measures established by the Energy Efficiency Programme of the Republic of Croatia and the First National Action Plan for Energy Efficiency will be initiated. Further strengthening of the administrative capacity of the Department for Renewable Energy Sources and Energy Efficiency is also planned.

and the Ordinance on the conditions and procedure for issuing and withdrawing the approval for packaging used for transport of nuclear materials (OG 83/08). since 2006.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Ordinance on conditions for nuclear safety and protection with regard to the siting. further strengthening of administrative capacity will be among its key priorities in 2009. which is part of the Phare Nuclear Safety Programme for 2005. B) KEY PRIORITIES Along with the regular administrative and technical work that the State Office for Nuclear Safety performs within its area of competence. 2008 saw continued work on strengthening the administrative capacities of the State Office for Nuclear Safety through the employment of new staff. Further activities connected with the “Support to the State Office for Nuclear Safety for the upgrading and modernisation of a timely radiological warning system” project as part of the Phare Nuclear Safety Programme 2006 are also planned.3. These would. the State Office for Nuclear Safety worked on introducing measures aimed at harmonisation with the requirements of the ISO 27001:2005 standards related to information safety management systems.2009 3. among other activities. The entire scope of activities of the State Office for Nuclear Safety has.15. During 2008. As a result. construction. technical specifications and other tender documentation were prepared and there was a call for international tenders for the procurement of equipment and services as part of the “Support to the State Office for Nuclear Safety for the upgrading and modernisation of a timely radiological warning system” project as part of the Phare Nuclear Safety Programme 2006. Nuclear safety and radiation protection Nuclear safety A) ACHIEVEMENTS IN 2008 In 2008. 282 . pursuant to the Nuclear Safety Act (OG 173/03). the recruitment of five new employees with university qualifications is planned for 2009. through co-ordinating this project. To this end. design. 2 for Chapter 15 Energy. which is in accordance with the closing benchmark No. been harmonised with the requirements of the ISO 9001:2000 standard related to quality management systems. In 2008. and since 2007 with the requirements of the ISO 14001:2004 standard related to environmental management systems. The Office for Nuclear Safety will. the “Installation of the RODOS system in the Republic of Croatia” project was completed. greatly contribute to the reliability of a timely warning in the case of a nuclear emergency. In addition. aiming to strengthen both the professional and technical base for planning and preparedness in the case of a nuclear emergency in the Republic of Croatia. the State Office for Nuclear Safety adopted three Ordinances: the Ordinance on the control of nuclear material and special equipment (OG 15/08). one new employee with university qualifications was hired as senior inspector in the Inspection Department in the Nuclear Materials Sector. use and decommissioning of a facility in which a nuclear activity is performed (OG 71/08). be involved in work related to the process of the accession of the Republic of Croatia to the EU. This will be carried out by filling vacancies in the Office and through the specialisation and professional training of its employees. In accordance with the short-term priorities listed in the Accession Partnership and the EC Croatia 2008 Progress Report regarding strengthening administrative capacity in the field of nuclear safety.

deadlines and methods for acquiring the required professional training and renewal of knowledge on the application of measures for protection against ionising radiation (OG 30/08). the Office has filled a total of twelve (12) out of fourteen systematised posts. The Strategy covers highly active radioactive waste. the following implementing regulations had been adopted by October 2008: the Ordinance on Amendments to the Ordinance on protection from electromagnetic fields (OG 41/08). three new civil servants were recruited. Pursuant to Article 37 of the Act. the Ordinance on radiological and physical safety measures for ionising radiation sources (OG 39/08). regulates the conditions required for the disposal of radioactive waste. POLITICAL CRITERIA Radiation protection A) ACHIEVEMENTS IN 2008 Pursuant to the Act on Ionising Radiation Protection and Safety of Ionising Radiation Sources (OG 64/06).073 project entitled the Implementation of National Strategies for Regaining Control over “Orphan Sources”. the Ordinance on the conditions. which was published in the Official Gazette (49/08) on 24 April 2008. lakes. as well as intermediate and low level radioactive waste.I. and the Ordinance on the requirements for the design. On 15 October 2008. ground waters. spent sealed radioactive sources and ionising radiation sources which are not intended for further use. within 6 months of the day when the Regulation came into force (18 April 2008). construction and removal of structures accommodating sources of ionising radiation or in which practices involving sources of ionising radiation take place (OG 99/08). the Government of the Republic of Croatia adopted the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency. administrative capacities of the State Office for Radiation Protection were strengthened to a certain extent. and orphan ionising radiation sources and sources without users. Within the framework of the IAEA-RER-9. The decision has not been issued yet. drinking water. among them one with university qualifications and two with secondary school qualifications. soil. The Government of the Republic of Croatia adopted the Regulation on the conditions and methods of disposal of radioactive waste. which foresees a substantial increase in the number of civil servants. the Strategy for Management of Radioactive Waste and Spent Nuclear Fuel has been drawn up. for the first time in the Republic of Croatia. the Ordinance on the method of removal of radioactive contamination. upon the proposal of the minister competent for health. hereinafter referred to as the Act. As a result. manner. spent sealed radioactive sources and ionising radiation sources not intended for further use (central disposal facility). Article 53 of the Regulation stipulates that the Government of the Republic of Croatia shall. designate a location for the disposal of radioactive waste. rivers. It is intended for the prevention of deterministic and the reduction of stochastic effects of ionising radiation on the exposed population as well as for the prevention or reduction of radiological pollution of the environment. places and deadlines for systematic testing and monitoring of the type and activity of radioactive substances in the air. In 2008. A proposal for a new Regulation on the internal structure of the State Office for Radiation Protection has been sent for procedure. the sea. hazards or damage (OG 53/08). disposal of the radioactive source or undertaking other indispensable measures in order to reduce the damage to people and the environment or eliminate further threats. the following subordinate legislation was adopted: the Ordinance on conditions. spent sealed radioactive sources and ionising radiation sources not intended for further use. which. solid and liquid precipitation. foodstuffs and general use products and dwelling and working spaces (OG 60/08). The National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency is a strategic document of the Republic of Croatia related to intervention measures in the case of emergencies that may arise while performing activities with ionising radiation sources or nuclear activities. and 283 . In the area of non-ionising radiation.

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . In order to meet the said benchmark. appropriate institutional infrastructure. Measures aimed at alignment with the acquis and EU practices will be implemented. import. Implementation of the project will continue in 2009. the number of civil servants working in the Office should be increased. The National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency will also be implemented. Instructions will be drawn up for obtaining approval for activities including sources of ionising radiation. The Regulation on the conditions and method of disposal of radioactive waste. Amendments to the Regulation are necessary not only due to the insufficient administrative capacities but also because the existing structure of the Office is not able to keep up with needs. manuals and operational procedures. the establishment of a national warehouse for radioactive materials. will be encouraged and their adoption ensured. Mid-term Priorities. Stationary portal devices for the control of nuclear and other radioactive material at border crossings have been procured as part of the “Border Control of Nuclear and Other Radioactive Materials with Stationary Portal Monitor Practices in Croatia” project as part of the PHARE 2006 Programme. 284 . the European Commission has identified the administrative capacities of the Office as insufficient. The adoption of the new Regulation on the internal structure of the State Office for Radiation Protection is planned for 2009. Training in using equipment will be organised for customs officials as well as for personnel involved in the detection. The current structure of the Office does not provide for work posts for a whole range of activities primarily related to the following areas: the implementation of the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency. plans. At its session held on 21 May 2008. chapter 3. which is specified in the European Partnership with Croatia. Plans and procedures will be adopted. Procedures in the case of detection of illicit transfer of radioactive material over state borders have been devised by the Ordinance on the method and procedure for supervising the import or export of materials reasonably suspected of being contaminated by radionuclides or of containing radioactive sources. identification and disposal of all types of radioactive materials. particularly those regarding measures for radiological and physical safety of ionising radiation sources. for the adoption of which the competent officials in other state administration bodies are responsible. B) KEY PRIORITIES In 2009. According to the fourth benchmark for the Energy chapter. the Government of the Republic of Croatia issued the Conclusion on taking note of EU common positions concerning the negotiation chapters 14 Transport Policy and 15 Energy. since the existing staff is insufficient to perform all activities that have been stipulated by law. the legislation adopted in the previous year will be implemented. the Republic of Croatia has assumed the obligation to ensure appropriate administrative capacities before its accession to the EU. and co-operation with neighbouring countries in this field. their use. for the adoption of which the director of the State Office for Radiation Protection is responsible. in the negotiation process for the chapter Energy − Radiation Protection. Other implementing activities will primarily include the strengthening of administrative capacities within the State Office for Radiation Protection. export and supply of ionising radiation sources.2009 - the Ordinance on the minimum health and safety requirements regarding the exposure of workers to the risks arising from electromagnetic fields (OG 38/08). With regard to the need to strengthen administrative capacity in the field of radiation protection. Sector Policy. the disposal of radioactive waste and orphan sources. including those related to the accession procedure. In addition. so as to be able to apply and implement the relevant legislation appropriately in all fields related to nuclear safety and radiation protection. as well as the establishment of a monitoring system for metal waste for the prevention of possible contamination by radioactive agents.2. which will ensure the accessibility and high quality of data and its timely exchange. Software for monitoring and the central collection of data recorded by monitors installed on border crossings will be developed. facilitating in this way decision-making on necessary measures. spent sealed radioactive sources and ionising radiation sources which are not intended for further use will be implemented.

coffee. ACHIEVEMENTS IN 2008 Legislative activities Indirect taxation Value-added tax With the aim of aligning the Value-added Tax Act with Council Directive 112/2006/EC on the common system of value-added tax. the authorities prepared a Draft Proposal of the uniform Excise Duties Act. motorcycles. a comparative analysis has been made of the national legislation of individual Member States. luxury products.16. excise duty warehousing and authorised warehouse-keepers. and Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. In the context of the alignment of the national excise duty legislation of the Republic of Croatia with relevant EU guidelines. The Draft Act also introduces the excise duty suspension system. transfers of assets and exchanges of shares concerning companies of different Member States. Direct taxation As regards the implementation of Council Directive 90/434/EEC of 23 July 1990 on a common system of taxation applicable to mergers. the Croatian economy and citizens. expert bodies are working on analyses of the impact and effects of the use of new European excise duty regimes for tobacco products and alcoholic beverages on the budget. POLITICAL CRITERIA 3. vessels and aircrafts). and the full elimination of all tax burden differences between these classes as of 1 January 2010. This Act envisages a 50% reduction in tax burden differences between A. and a new system of excise duty guarantee. energy products and electricity are defined in accordance with the tariff codes of the Customs Tariff. Excise duties Towards the end of 2008. administrative documents accompanying goods under and outside the suspension system. the Act on the Personal Identification Number (OG 60/08) was adopted in May 2008. whose application at the national level has been made possible by virtue of the provisions of Article 3 of Council Directive 92/12/EEC. Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between affiliated companies of different Member States. with a view to ensuring that the provisions of Croatian national legislation regulating the taxation of these products do not present barriers to smooth trade in these products between Member States of the Common Market. tobacco products. The Draft Proposal of the Act envisages alignment in the area of taxation of alcohol and alcoholic beverages. It is applicable from 1 January 2009 and will provide a basis for establishing a uniform register of taxpayers and international data exchange in the area of taxation. TAXATION 3. Analyses of the impact and effects of these new excise duty regimes for energy products and electricity have already been completed. the Government of the Republic of Croatia adopted the Act on Amendments to the Tobacco Products Tax Act and submitted it for further parliamentary procedure and enactment.1. all preparatory measures for the alignment of 285 . divisions. As regards the national tax legislation regulating the taxation of products not included in the acquis communautaire (excise duty on non-alcoholic beverages. where alcohol and alcoholic beverages. in 2008 the Tax Administration worked on the preparation of legislative alignment in the area of indirect taxation. energy products and electricity with relevant EU legislation.I.16. B and C cigarette classes as of 1 January 2009. On 5 December 2008. To this end. passenger cars.

Council Directive 77/799/EEC. a project team has been appointed (business and IT) consisting of officers of the Central Office of Customs Administration (Excise Duty Unit. which was successfully completed in 2006 and 2007. The second component of PHARE 2005. PHARE 2005 consists of two components: The first component of the PHARE 2005 twinning project “EMCS development − management support” was launched on 19 November 2007 and builds on the CARDS 2003 twinning project “Support for Customs Administration in the field of excise duties”. began on 7 December 2007. which ensures alignment with the said directives and which enters into force on the date of the accession of the Republic of Croatia to the European Union.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the Act on Amendments to the Profit Act.software development”. Inspection Unit) and customs offices (Section for Excise Duties). and by 15 September 2008. with a total of 50 activities that will take place in the Customs Administration. The purpose of the project is to develop a national EMCS software application which incorporates all the functional requirements of phase 2 EMCS development. which will be the backbone of a new excise system incorporating a suspension regime for authorised excise duty payers. which will come into force on the date of the accession of the Republic of Croatia to the European Union. Council Directive 2008/55/EC. The basic purpose of the twinning project is to provide support in the management of the development of the future Excise Movement Control System (EMCS). IT. except for the provisions relating to administrative cooperation between Member States in the areas of taxation and exchange of information between Member States on savings income in the form of interest payments. The proposal of the Conclusion of the Government of the Republic of Croatia was submitted to the Government of the Republic of Croatia for further procedure and its enactment is planned for the fourth quarter of 2008. For the purpose of adopting the principles from the Code of Conduct for business taxation. The project is scheduled to take place in four phases. i.e. Statistics and Analysis Unit. Project managers meet regularly on a weekly basis. Five-day study visits were also organised to Lithuania and the Czech Republic. obligating the ministries and other state administrative bodies to align draft legislation with the taxation principles contained in this document. all preparatory measures have been completed for the enactment of the Conclusion of the Government of the Republic of Croatia. 286 . with a planned duration of 18 months. The project is being conducted in co-operation with the company IBM Croatia Ltd.2009 national legislation with these directives have been made. and the Customs Training Centre. Implementation measures Customs Administration For the implementation of the PHARE 2005 projects entitled “EMCS development − management support” and “EMCS Phase 2 software development”. the Czech Republic. a new Contributions Act was adopted (OG 84/08) and will enter into force as of 1 January 2009. on 5 December 2008. the Croatian Parliament enacted. The project consists of 8 components. Project activities are running as scheduled under the Twinning contract. In this context. the Central Office. and Council Directive 2003/48/EC relating to administrative co-operation between Member States in the area of taxation and exchange of information between the Member States on savings income in the form of interest payments. One was held in Rijeka and others in the Central Office. and Lithuania. In July 2008. 36 workshops had been held for members of the project team of the Customs Administration and the contractor. entitled “EMCS Phase 2 . Administrative co-operation For the purpose of prescribing the necessary legislative framework in the area of administrative co-operation. All the planned workshops have been held as scheduled. the Croatian Parliament enacted on 5 December a new General Tax Act aligning Croatian tax legislation with the acquis communautaire. including study visits to the Republic of Austria. The Act is planned to come into force on 1 January 2009.

I. Although the Final Report has not been analysed yet. The first three project phases have been completed successfully. Creation and Solution Implementation Division. They will undergo continuous training to prepare them for work in the Croatian CLO. “EMCS Phase 3 − software development”. insurance undertakings and financial institutions. With a view to strengthening the administrative capacities of current and future excise duty officers and the organisational units for excise duty. The Tax Administration of the Republic of Croatia thus acquired both basic and broad knowledge on the use of modern electronic tools. 92/83. the Tax Administration of the Republic 287 . by both the representatives of the Tax Administration of the Republic of Croatia and the representatives of the Tax Administration of the French Republic. 92/84. In this context. the Tax Administration has conducted a range of activities envisaged under PHARE 2005. These employees underwent a comprehensive training programme in the area of VIES. that with its participation in this project. Work on the further enhancement of the functionality of the SEEDv0 application has continued. Tender documentation for the PHARE 2006 project. as well as with the basic preconditions for the introduction of e-audit. transfer prices. The last seminar before the final seminar for inspectors of the Tax Administration was held towards the end of June 2008 at which an e-audit project paper was drafted and analysed. Given the comprehensiveness of the subject covered by the project. and all documents were delivered within the set deadlines. a twinning light project entitled “Strengthening and enhancement of the Tax Administration in the audit field” in co-operation with the French Tax Administration. financial institutions. particularly with regard to large taxpayers such as banks. The same training was provided for one inspector from each of the customs offices. 92/79. Their contribution to the operations of the IT Department involves mainly regular participation in project activities of the PHARE 2005 twinning project − “VIES effective management and business support”. Excise duty officers actively participated in the Fiscalis 2007 and 2013 exchange programmes in Hungary. work profiles have been elaborated and recommendations given in respect of the organisation and management of the excise duty system. The project focuses on strengthening the audit function with respect to large taxpayers. since early 2008. and monitoring of excise duty products (EEC Directives 92/12. training was provided for 18 trainers of the Customs Administration in the Customs Training Centre. and the use of modern electronic tools. the Tax Administration of the Republic of Croatia has enhanced its knowledge and capabilities for more efficient audit. transfer prices and e-audit. the Tax Administration of the Republic of Croatia has conducted. while bid evaluation for the final selection of the application development partner took place from 21 to 23 October 2008. a CLO Division was set up in the Central Office of the Tax Administration. and 95/60). 95/59. 5 employees were transferred to the IT Department of the Design. A meeting of the Shortlist Panel for PHARE 2006 “EMCS Phase 3 − software development” was held on 22 July 2008. insurance undertakings. Ireland. 2003/96. Tax Administration With a view to strengthening administrative and institutional capacities. To strengthen the administrative capacities needed for successful administrative co-operation in the area of exchange of tax information. was prepared in the first quarter of 2008. warehousing. In the fourth quarter of 2007 and in early March 2008. business processes analysis and project management. Italy and Denmark. Five employees were also recruited from the Regional Office in Zagreb to work in the CLO Division. and was acquainted with European legislation in this area. 92/80. with special emphasis on the supervision of banks. The training included the presentation of EU Directives which relate to the movement. it is generally felt. POLITICAL CRITERIA Project activities are running as scheduled under the work plan. As regards the strengthening of administrative capacities in the area of audit. while further activities are being conducted towards preparing the excise system work specification. Two new employees were also hired in 2008 in the Excise Duty Unit of the Central Office of the Customs Administration. Latvia.

auditing. the Tax Administration takes regular and active part in working visits. TAIEX In the course of preparatory activities related to the amendments to the Profit Tax Act. for which the holder of the licence has to issue a receipt. The active participation of a much larger number of employees of the Tax Administration in the FISCALIS programme in 2008. FISCALIS 2013 As regards the activities envisaged under the FISCALIS programme. and an improved system of training and knowledge exchange programmes for tax officers. the provision of services to taxpayers. among other things.2009 of Croatia has expressed interest in further broadening the knowledge of inspectors in the area of audit. to take part in a seminar and workshop under the Action Plan for the Fight against Money Laundering and Terrorist Financing. including those in the construction industry) through improved solutions in terms of organisation and human resources. with a view to achieving a better understanding of the acquis communautaire in the area of direct taxes.000. The project is planned to be achieved through 3 components: 1. competencies and expertise of Tax Administration officers and taxpayers.Tax Administration. the Ministry of Finance . enforcement of collection. 3. compared with previous years. held a Fiscalis seminar in Dubrovnik on the co-operation of tax administrations of Member States in cases of double taxation. modernisation of IT infrastructure (improvement of the management information system and tax identification number implementation support). which was found to be highly successful by the European Commission and the participants. In September 2008. to be held jointly with European experts until the end of 2009. cash payments of wins over HRK 100. and offices for large taxpayers. and human resources policy management.Tax Administration organised working visits to regional offices in Rijeka. In June 2008. Proceedings have been initiated to revoke the licence from one casino with a head office in Zagreb due to infringement of the Act on Conducting Games of Chance and Promotional Award Games. World Bank − Revenue Administration Modernization Project The purpose of the project is to support Tax Administration modernisation with a view to achieving further improvements in business efficiency. the Ministry of Finance . 30 audit employees were recruited from all the regional offices of the Tax Administration of the Republic of Croatia. and the orderly fulfilment of tax obligations. modernisation of the business infrastructure (organisational consolidation and functional realignment of tax offices in the City of Zagreb. technical consultations were held with the European Commission in the organisation of TAIEX in July 2008 in Brussels. The Audit department carries out audit in a number of casinos and slot parlours in the territory of the Republic of Croatia. through capacity strengthening and improvements in the system of Tax Administration. modernisation of the educational infrastructure. services to taxpayers. In the area of the fight against money laundering and terrorist financing. in co-operation with the European Commission. through improved capacities in human resources management and training. simultaneously with the introduction and acquisition of the necessary programmes and equipment needed for the conduct of e-audit. contributed to a better understanding of the acquis communautaire. seminars and workshops. 288 .NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . in terms of the enhanced professionalism. 2. Split and Dubrovnik regarding the organisation and procedure of tax audit in the Republic of Croatia.

successful interconnectivity with Member States’ systems and strengthening administrative capacities. Project purpose: VIES (VAT Information Exchange System) design and development for the Croatian Tax Administration which will ensure timely and accurate VAT information exchange between Member States. Methods. 2. relating to procedures regarding administrative cooperation and information exchange. the project of evaluation of the Regional Office in Zagreb and local offices for large taxpayers is underway. Austria is the twinning partner. and the agreed duration of the project is 18 months. Project activities are running according to schedule and following the work plan. This includes the establishment of an IT network so as to ensure interconnectivity with the EU tax system.o. Service contract “Functioning VIES Enhancements and VES Development”. Project purpose: to assist the Tax Administration in creating the conditions for the introduction and effective management of the VAT information exchange system (VIES) through the adaptation of the existing national VAT information system. with exceptionally good co-operation with the Austrian twinning partners. The project commenced in December 2007 and is scheduled for completion in June 2009.o. A VIES sub-system is being developed for the verification of validity of VAT identification numbers and verification of turnovers. processes and procedures are being implemented to ensure the efficient development of software which has to meet the requirements of CLO and the activities of the Tax Administration.. APIS-IT has been included in the realisation of the project as the partner responsible for national IT support in VIES interconnectivity structures. POLITICAL CRITERIA Pursuant to the plan of activities. sub-system testing is being carried out. Due to delays in CCN/CSI realisation. and efficient administrative co-operation with Member States and DG TAXUD. The contractual partner is IBM Hrvatska d. Continuous efforts are also being made towards preparing a Draft Proposal of the new Value Added Tax Act. the strengthening of administrative capacities to ensure successful management of the new system. Twinning project − “VIES effective management and business support”. The status of the CCN/CSI project is directly contingent upon further successful implementation of PHARE 2005 − Service contract “Functioning VIES Enhancements and VES Development”. Four Guides have been prepared with descriptions of work processes in the future Croatian CLO. project deliveries are made regularly to the Tax Administration and are monitored in co-operation with the twinning partner. steps are being taken to avoid possible delays in the implementation of the project activities under the PHARE 2005 − Services contract. successful new system management. the following results have been achieved: PHARE 2005 1. IT INTERCONNECTIVITY As regards the construction and development of a VIES system for the purpose of introducing and further developing the new system and efficient VAT information exchange. Preparations are also underway for the purchase of land for the construction of the building.I. Project activities are running according to schedule and following the work plan. In accordance with the project plan. 289 . A Draft Proposal of Amendments to the General Tax Act was prepared in 2008. and the agreed duration of the project is 18 months. The project commenced in December 2007 and is scheduled for completion in June 2009.

CCN/CSI is an essential precondition for the establishment of IT interconnectivity and for the successful implementation of other projects in the area of IT interconnectivity which fall within the remit of the Tax Administration. part of the tender procedure has been completed. The tender procedure has to be completed in a very short time. In addition. B) KEY PRIORITIES Legislative measures Indirect taxation Value-added tax 290 . Activities are currently underway on the co-ordination of the Work Plan between the Tax Administration and the twinning partner. The evaluation procedure and the selection of the contractor are currently underway. i. The status of the CCN/CSI gateway is the responsibility of the Customs Administration. The evaluation of bids (short list) for VIES 2 and VoES software development was conducted on 28 July 2008.e. APIS-IT. A tender procedure has been initiated for system and network maintenance outsourcing. and to acquiring the necessary equipment and programme support. Since October 2007. as the outsourcing partner in the development and maintenance of tax records applications. specific activities have been carried out to overcome implementation obstacles for service users (enabling registered users to authorise another person to use the ePorezna service on their behalf). Preliminary analyses have been made of the status of the computer network infrastructure of the Tax Administration with a view to launching network infrastructure development and modernisation projects (equipment and programme support). by 30 November 2008. Preliminary analyses have been made and a status overview provided with a view to launching a project to enhance security in the field of “back-up” policy in the Tax Administration. eID and ePD.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . Unless the Services contract is signed by 30 November 2008. on a trial run until September 2007. The project will consist of two components: Component 1: Twinning for Project Management −Twinning Project documentation has been prepared. This next phase of VIES development will be financed under the 2006 project: “Strengthening the IT function of the Tax Administration in order to meet EU standards in the VAT field”. the regular operations (production) of ePorezna have included: verification of tax account data of businesses (ePKK). the tender has been conducted and Austria has been selected as the twinning partner. the funds earmarked under the PHARE 2006 programme cannot be used and the mandatory development of this IT field project will have to be financed from other sources. Component 2: Functioning VIES Enhancements and VoES Development − Services contract Thus far. The expected beginning of the project is the second quarter of 2009.2009 PHARE 2006 VIES system establishment and testing will be followed by the development of advanced VIES system functions (so-called VIES 2) and VoES (information exchange on VAT through e-services). VAT returns (ePDV). the realisation of CCN/CSI had not been completed. ID returns (eID) and electronic profit tax returns (ePD). The project entitled ePorezna (electronic Tax Administration) continued with the introduction of two new modules. is working on the introduction of modern technologies in the IT area in the context of a project involving the redesign of the register of taxpayers. As at early September 2008.

By the end of the duration of the project. Further OECD seminars will take place on transfer prices for Tax Administration inspectors in charge of the inspection supervision of large taxpayers. with special emphasis on e-audit of VAT and e-audit of banks and financial institutions. and their completion is expected in June 2009. Further training of inspectors will take place in the area of audit. The start of the project is expected in the second quarter of 2009 and the planned duration is 18 months. 291 . based on modern tools and techniques. Implementation measures Tax Administration PHARE 2005 The projects under PHARE 2005 which commenced in December 2007 continued into 2009 with implementation measures. the VIES system will be in place and will have been tested. PHARE 2006 The projects under the PHARE 2006 programme are building on the projects and the results of the PHARE 2005 programme. scheduled for the second quarter of 2009. the CLO. This objective is to be achieved through the implementation of the twinning light project under IPA 2007. the enhanced VIES system has to be fully operational. Excise duties In order to ensure the more efficient and easier implementation of the new Excise Duty Act. a Value Added Tax Act is planned for adoption in the second quarter of 2009. implementing instructions and work instructions for customs offices will be issued. and preparatory measures in this direction are already underway.I. Activities in both projects under PHARE 2006 are planned to continue. These include further activities and the completion of all activities related to the VIES system. With the finalisation of PHARE 2006. including the introduction of e-audit of taxpayers. which is pending adoption. POLITICAL CRITERIA With a view to achieving alignment with Council Directive 2006/112/EC on the common system of value added tax and the acquis communautaire. These projects will help the Tax Administration in the design and development of a VAT information exchange system (VIES) and in strengthening administrative capacities for the successful management of the new system and for the efficient exchange of information with EU Member States. the VES and making the VIES system operational in accordance with EU requirements. The project was carried out in 2007 in co-operation with the Tax Administration of the Netherlands and further bilateral co-operation in this area is planned for the purpose of the implementation or practical application of concrete risk-analysis methods to select taxpayers for audit. The envisaged project activities include the development of advanced VIES system functions (so-called VIES2) and the development of the VoES system (information exchange on VAT through e-services). MATRAFLEX Further activities will be conducted under the MATRAFLEX project entitled “Project Risk Analysis in order to Select Taxpayers for Audit” in co-operation with the Tax Administration of the Netherlands. The next phase of VIES system development under PHARE 2006 will build on the results of the projects under PHARE 2005.

the authorities plan to complete the project EMCS Phase 2 − management support and software development. as is the setting up of business intelligence in relation to the taxation system. with an emphasis on the use of modern techniques and tools (eaudit). Activities will be conducted on the preparation of a proposal for a book of standard electronic records for data exchange between the Tax Administration and other state administration bodies. together with the further development of the EMCS application (phase 3). such as working visits and seminars in accordance with the work plan. a project for the digital coverage. Establishing a system for the exchange of information on the movements of excise goods between the Republic of Croatia and the European Union (ELO) is planned through co-operation on the introduction of the SEED and EMCS IT system. investment funds and other financial institutions. As regards audit. insurance undertakings. banks. with special emphasis on the fight against VAT evasion. Employees already included in training within the PHARE 2005 project will continue training within the PHARE 2006 project and through other forms of training. Strengthening administrative capacities Further strengthening of the administrative capacities of the future Croatian CLO is envisaged. The establishment of a data storage and analysis system is planned before the end of 2009. there is a need for the further training of inspectors in the area of audit of large taxpayers. Associated activities will be undertaken. Education and training FISCALIS The Tax Administration will regularly and actively participate in the activities of the FISCALIS 2013 programmes. Plans have also been made to strengthen capacities in the area of VAT audit. processing and permanent storage of paper documents will be developed. falling within the competence of the Tax Administration. Until the end of 2009. Preparations will be made for the project of data exchange in the area of electronic transactions taxation between EU Member States − VES within the framework of the planned PHARE 2006 projects.Revenue Administration Modernisation Project Further activities in 2009 will take place in accordance with the Plan of Activities in 2008. Customs Administration Excise duties In 2009. The IT Department plans to recruit new employees in accordance with the Information System Development Strategy of the Tax Administration. Technical support WORLD BANK . 292 . and to start with the implementation of the PHARE 2006 project. These moves are included in the activities on the project of the introduction of a personal identification number (OIB). depending on OIB project priorities.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . as will a document management system project in the Central Office of the Tax Administration.2009 Information system Work will continue towards increasing the number of taxpayers who are using at least one e-service of the Tax Administration.

and General Services. Legal Affairs. the Excise Duty Unit.I. 293 . HR Development and Training. Continuous professional training will be provided for customs officers responsible for excise duties in the implementation of a uniform excise duty act. Further development of the database for the register of excise duty payers and the register of excise duty warehouses is planned. The Croatian excise duty experts are expected to continue with their participation in the Fiscalis programme. will work out a detailed specification of tasks of excise officers and define in more detail the system of excise organisational units. POLITICAL CRITERIA In the context of strengthening administrative capacities. in co-operation with the Unit for Organisation.

With these amendments. lowering the general level of central government deficit. The amendments will enter into force on 1 January 2009. In the next mid-term period. Co-ordination of economic and fiscal policies Fiscal policy is part of the overall economic policy aimed at encouraging positive rates of economic growth.2. preparatory activities are underway. is fully in line with the acquis communautaire. In order to protect the financial interests of the European Union and the Republic of Croatia. On 10 September 2008. The same provisions were also adopted as part of the amendments to the Act on the Fund for Croatian Homeland War Veterans and Members of their Families (Official Gazette 41/08). The provisions allowing the public sector privileged access to the assets of financial assets were contained in the Deposit Insurance Act (Official Gazette 177/04). It will be characterised by the continuation of fiscal adjustment. the analysis of banknotes and the analysis of coins were established within the CNB. After the adoption of this Act. Croatian legislation in this area is fully aligned with the acquis communautaire. which entered into force on 24 September 2008. In accordance with the acquis communautaire in the area of public sector privileged access to the assets of financial institutions. which was passed by the Croatian Parliament in June 2008 and entered into force on 9 July 2008 (Official Gazette 75/08).17.17. In addition. fiscal policy will be implemented in synergy with monetary policy in order to prevent negative effects of external macroeconomic conditions and to preserve macroeconomic stability. At present.17. the Statute of the Croatian National Bank has been brought fully into line with the new Act on the Croatian National Bank. ECONOMIC AND MONETARY POLICY 3. 3. B) KEY PRIORITIES In the forthcoming period. The Act has established a new legal framework which guarantees the Croatian National Bank (CNB) complete independence. these provisions were amended by virtue of the Act on Amendments to the Deposit Insurance Act (Official Gazette 119/08). which ensures that privileged access of the public sector to financial institutions is revoked as of the date of Croatia’s accession to the European Union. further reducing the level of public debt and stabilising the level of external debt. The provisions ensuring the integration of the CNB into the European System of Central Banks as of the date of the accession of Croatia to the European Union and the introduction of the euro as the official currency in Croatia are also incorporated into the Act. the CNB will proceed with its preparations for integration into the European System of Central Banks. and to enable the efficient supervision of counterfeiting. reducing unemployment.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . and the national centres are expected to be fully operational by March 2009.2009 3. passed by the Croatian Parliament on 15 October 2008. However. in mid-2008 national centres for combating currency counterfeiting. as a result of which net lending/borrowing (deficit/surplus according to the ESA 95 methodology) has more than halved. Priorities in legislative alignment A) ACHIEVEMENTS IN 2008 The new Act on the Croatian National Bank. the CNB Council adopted amendments to the Statute of the Croatian National Bank. the Act on Amendments to the Insurance Act was passed in 2008 (Official Gazette 87/08). 294 .1. Croatia has already adopted the Credit Unions Act (Official Gazette 141/06) and the Act on Amendments to the Act on Mandatory and Voluntary Pension Funds (Official Gazette 71/07) abolishing public sector privileged access to the assets of financial institutions.

to strengthen market-oriented monetary policy instruments. The kuna to euro exchange rate is formed freely on the foreign exchange market depending on changes in supply and demand. the CNB has employed various administrative measures in recent years.6% of GDP in 2011.5% of GDP in 2003 to -1. the fiscal deficit is expected to amount to -0. Considering that the share of public debt in GDP was reduced in 2007 by 2. Given the unfavourable developments both on the global and domestic financial markets.3. As a result. 3. and foreign exchange assets allocated to this purpose were returned to the banks. and the overall international liabilities of the banking sector fell to almost the same level as that when the measure was first introduced. In order to exert a stronger influence on unfavourable macroeconomic developments. The policy of comprehensive fiscal adjustment will continue in the forthcoming period. In circumstances of free movement of capital. The most important measures have included the marginal reserve requirement and the mandatory purchase of CNB bills. to -1. the level of external debt of commercial banks declined substantially. The CNB will continue.6% of GDP in 2007. and is not incompatible with the European Exchange Rate Mechanism II (ERM II). and will help further reduce net lending/borrowing to -0.I. The exchange rate mechanism has proven efficient so far. the CNB will gradually lower the reserve requirement rate. financial system stability and economic activity as a whole.e. the measure has substantially improved the foreign exchange liquidity of commercial banks. which is aimed at reducing the annual credit growth of commercial banks to 12%. to the greatest extent possible. The choice of exchange rate stability as the nominal anchor reflects the environment in which the monetary policy of Croatia is implemented. the central bank abolished the marginal reserve requirement. Monetary and exchange rate policy In the years until Croatia’s accession to the European Union. while the CNB prevents excessive exchange rate volatility through occasional interventions (foreign currency auctions). In early October 2008. the CNB will continue to implement an exchange rate policy known as a “managed float“ with the aim of preserving price stability. primarily the openness of the Croatian economy and a high degree of euroisation. it narrowed from -5. 295 .3% of GDP in 2008.17. The other measure successfully implemented throughout 2008 is the mandatory purchase of CNB bills. Due to the very unfavourable external macroeconomic conditions which marked 2008. POLITICAL CRITERIA i.9% of GDP in 2009. The marginal reserve requirement was introduced in 2005. and increased the cost of foreign funding for commercial banks. As a result.3 percentage points (annualised). It is important to note that fiscal policy aimed at further fiscal adjustment and the continuous reduction of fiscal deficit has had a positive impact on the reduction of public debt as a proportion of GDP. a further narrowing of the share of public debt in GDP is expected in the next period. CNB operations on the open market have mainly been used for liquidity management rather than to conduct an interest rate policy. taking into account future adjustments of monetary policy instruments to those of the European Central Bank. On account of its approach to the EU. due to which exchange rate movements have a strong impact on inflationary expectations. the importance of a stable exchange rate lies in the fact that it limits the functioning of the transmission mechanism through the interest rate channel.

IR-1. IND-2 REPRO (survey on the consumption of raw materials. further steps were taken towards developing an information system for the automated processing of statistical surveys − ISIS (Integrated Statistical Information System) − and software for the presentation of statistical data on the Internet. Since the Central Bureau of Statistics is responsible for the assignment of the principal activity code.18. In addition. As regards development of the Statistical Business Register (SBR). the publication of statistical data at the level of the European standard NUTS began. quality control of variables and indicators was performed. a new version of the National Classification of Activities (NCD) began to be applied in 2008. The adoption of the National Classification of Spatial Units for Statistics (OG 35/07) in accordance with the European statistical standard NUTS which is used for collecting data necessary for the development. As a gradual introduction is planned.2009 3.18. which at the lowest level (the class level) means an increase of a hundred and one numeric positions compared with the previous version. it was necessary to ensure good co-operation and co-ordination within the Central Bureau of Statistics and the statistical system as a whole. support was also given to other activities covered by all EU-financed projects as well as in relation to ad hoc enquiries by users of statistical data within and outside the Bureau. and reports were made on project implementation. it was ensured that each business entity received in 2008 a new communication on classification consisting of an ID number and a new principal activity code in accordance with NCD and the Ordinance on the classification of business entities according to the National Classification of Activities 2007 (NCD 2007) (OG 80/07). In the area of Regional Statistics. in the component “Urban Audit”. In 2008. Freelancers and local units will be included in the register until the end of the year. In addition to support provided for regular statistical surveys. The use of the Geographic Information System (GIS) began in 2008. 296 . materials and energy). with the quality control of variables and indicators being conducted only by the CBS. the ISIS system will include pilot projects of the following statistical surveys: DEM-1 (birth statistics).1. mainly in the implementation of the “Portrait of Regions” and the “Urban Audit” components of the MB PHARE 2005 project. 3 (annual research and development reports). As this involves a significant revision of NCD. This allowed for the continued application of European standards in the statistical system of the Republic of Croatia. a classification of the list of variables was made. B) KEY PRIORITIES The introduction of NCD 2007 in statistical surveys will begin in 2009. compliant with EU requirements. TRG-2 (quarterly reports on distributive trade for legal persons).NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . information technology support was provided for the processing of statistical surveys and dissemination of results. This will also allow for statistical data comparability and recalculation of time series. thus far in 2008 processes for SBR updating have been defined. Urban Statistics was set up. Support to statistical data. alignment and promotion of regional EU statistics also allowed in 2008 for the establishment of local statistics and the transmission of data on local administrative units. The results of these projects should ultimately ensure the gradual abandonment of the Bureau’s mainframe and faster and improved quality of work with significant financial savings. existing data and maps of spatial units were transmitted to Eurostat. technical infrastructure A) ACHIEVEMENTS IN 2008 In accordance with the new National Classification of Activities 2007 (NCD 2007) (OG 58/07). Within the IT Sector. 2. parallel codification of principal activities will again be necessary in 2009 in accordance with NCD 2007 and NCD 2002. By the end of 2008. primarily in the Register of Business Entities. The ISIS system was upgraded and tested in 2008 and was presented on several occasions at international statistical gatherings. and not by Eurostat. TU-11 (monthly report on tourist arrivals and departures). STATISTICS 3. In the context of MB PHARE 2005.

For the purpose of alignment with international standards. 297 .1. In the context of this project. 3. Demographics and social statistics 3. A Information and statistical data A) ACHIEVEMENTS IN 2008 The Dissemination component of the MB PHARE 2005 project started on 1 October 2007 with a planned duration of 12 months until 1 October 2008 when the MB PHARE 2006 project commences with a planned duration of a further 12 months. Further efforts are also planned for the development of a statistical database and its presentation on the Bureau’s website to ensure users easier access to statistical data. Households and Dwellings began in 2008. Previous fertility. the CBS is participating in a Eurostat project entitled “European Statistical Data Support” (ESDS) which aims to assist users in searching European statistical data and to ensure data sources (which has so far not been done). B) KEY PRIORITIES Plans for 2009 include the drafting of a strategy for statistical data dissemination based on an analysis of the existing situation and needs and EU experience in statistical data dissemination. POLITICAL CRITERIA As regards development of a Statistical Business Register (SBR). the drafting of methodology for the inclusion of groups of companies in the SBR. B) KEY PRIORITIES Census A trial census will be conducted in 2009 in connection with the 2011 Census of Population. UNECE/Eurostat recommendations (Conference of European Statisticians Recommendations for the 2010 Censuses of Population and Housing) were translated. while the adoption of the strategy is planned by the end of the third quarter.2.18. and software development for registering and updating groups of companies. Preparations for the development of IT support for the 2011 Census have also been scheduled for 2009.18. Households and Dwellings.2. 3. and questionnaires for the 2011 Census are being prepared in accordance with these recommendations. Further stabilisation of the ISIS information system (Integrated Statistical Information System) is planned for 2009 to enable the results of statistical surveys to be transmitted from the mainframe to the network environment. To this end.I. A Draft Proposal of the Dissemination Strategy will be made and a discussion will be held. it is planned to include groups of companies in the register in 2009. the following activities will be undertaken: carrying out a tender procedure to acquire the services of methodology drafting for the inclusion of groups of companies in the SBR. A Population A) ACHIEVEMENTS IN 2008 Preparations for the 2011 Census of Population. external migration data collected in a trial survey are being processed and analysed. mortality and population migration data were further analysed with a view to establishing a hypothesis on the future developments of the said components for population projection purposes.18.

which is to be based on the Business Register for the first time. In 2008. B Labour market statistics A) ACHIEVEMENTS IN 2008 Employment and unemployment The implementation of the Labour Force Survey was aligned with the acquis communautaire in 2008. The project is scheduled for completion in 2009.2009 Migration statistics and population projections Activities in the further alignment of migration statistics with international standards and the development of population projections will take place in the framework of the PHARE 2006 project. methodological preparations were made for the survey to be conducted for the second time in 2009. Ad hoc module data were published in the Republic of Croatia and transmitted to Eurostat. An ad hoc module on accidents at work and health problems in connection with activities in the framework of the MB PHARE 2005 project was completed in 2008. Work on methodological improvements to the Labour Force Survey began in 2008 in the context of the MB PHARE 2008 project. In 2009. This project started in 2007 with a planned duration until the end of 2008. variables defined. this time as a regular survey.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . applying the definition of “international migrant” to data collected in a trial survey. The survey sample is panel-based and rotating and enables the flows of persons in the labour market in the Republic of Croatia to be monitored. In 2009. For the implementation of the Labour Cost Survey. Component 10.2. a project application for external migration and test data processing will be made. The results of the survey are transmitted to Eurostat in the form of individual databases and are published together with those of the Member States. In addition to the existing NCD 2002 classification of activities. The survey is conducted on a weekly basis throughout the year and ensures results on a quarterly basis at the national level and at the NUTS 2 level. The existing form has been expanded in accordance with EU requirements and the sample requirement has been defined. Labour Cost Index. Earnings and labour costs The development of methodology for the production of a labour cost index started under the CARDS 2003 Programme “Labour market statistics development” and continued under the MB PHARE 2005 Programme. methodological instructions were prepared. The Labour Force Survey is the first survey to provide NCD 2007 compliant data in the Republic of Croatia. and databases developed for quarterly labour cost index calculation. 3. The publication of results and transmission of data to Eurostat are planned before the end of 2008. continuous data series on fertility. as is the quarterly processing and publication of data and transmission of results to Eurostat. 298 . data collected from the Tax Administration. Data will be transmitted to Eurostat within the set deadline. B) KEY PRIORITIES Employment and unemployment Continuous weekly implementation of the Labour Force Survey is planned for 2009. NCDa new NCD 2007 classification NCDwas implemented. mortality and natural increase and population migrations will be collected and analysed for the preparation of a population projection.18.

activities in 2008 included the updating of the data collection questionnaire through the introduction of new questions in accordance with Eurostat recommendations. As regards the Household Budget Survey.2. A survey was conducted. the sample size needed for the pilot survey was defined. The UOE questionnaire (UNESCO/OECD/Eurostat) was also completed with data for all educational levels. In 2009. Data collection based on such updated questionnaires will commence in the course of 2009. and work is underway on the preparation of a data set for transmission to Eurostat. 3. a CAPI (Computer Assisted Personal Interviewing) questionnaire was created for the pilot survey. 3. Education and Sports.I. Implementation will depend on the establishment of a business register and a register of employed persons.2. poverty and social exclusion The plans for 2009 include further activities under the PHARE 2005 project. and Commission Regulation (EC) No 224/2007). D Education statistics A) ACHIEVEMENTS IN 2008 Activities in 2008 included the drafting of methodology for statistical adult education surveys based on Eurostat methodology (Adult Education Survey − AES). implementation will begin of a pilot Continuing Vocational Training Survey − CVTS. including financial data. 299 . Methodological preparations for a pilot survey on earnings structure will be conducted in 2009 and in the first half of 2010. Towards the end of the year. in co-operation with the Ministry of Science.18. quarterly labour cost indices will be calculated in accordance with EU legislation (Regulation (EC) No 450/2003. POLITICAL CRITERIA Earnings and labour costs The second Labour Cost Survey in the Republic of Croatia will be conducted in 2009 in accordance with EU legislation (Council Directive (EC) 530/99 and Commission Regulation (EC) No 1737/2005). activities planned under the PHARE 2005 project relating to the establishment of a new Survey on Income and Living Conditions (SILC) were carried out. Several expert missions took place. C Income allocation and living conditions A) ACHIEVEMENTS IN 2008 Income. the results processed. B) KEY PRIORITIES The activities planned for 2009 include the processing and analysis of the results of the pilot Continuing Vocational Training Survey − CVTS. Commission Regulation (EC) No 1216/2003. B) KEY PRIORITIES Income. poverty and social exclusion In 2008.18. and the training of interviewers that are to collect field data for the pilot survey was conducted. in connection with the introduction of a new Survey on Income and Living Conditions (SILC) and a pilot survey analysis.

In accordance with international recommendations and in co-operation with external experts. for reference year 2008. analysed and published nationally. was drafted and published. A study on economic crime and corruption. The activities planned in this context include work on the methodology and instruments for a pilot survey on budgetary outlays for research and development and the implementation of the pilot survey. The main purpose of the International Crime Victims Survey is to obtain good-quality data on crime 300 . 3.2. The results are expected towards the end of 2009. processed. Innovations statistics In 2008. 18. Preparations were initiated for a survey on General Budget Appropriation and Outlays for Research and Development − GBAORD. Its publication represents a contribution by the CBS to the achievement of the objectives outlined in the National Strategy of Protection against Family Violence 2008−2010. will be conducted for the reference period 2006−2008. Data have been weighted. Statistics innovation In the context of the MB PHARE 2006 project. F Judiciary and administration statistics A) ACHIEVEMENTS IN 2008 A Classification of Criminal Offences with a Comparative Review was drafted and published. which is to be conducted in the context of the MB PHARE 2006 project. instruments were prepared and a survey conducted. giving a statistical and analytical overview of criminal offences associated in everyday practice with economic crime and corruption. the Community Innovation Survey − CIS 2008. a methodological basis and a national questionnaire were prepared for a survey on Careers of Doctorate Holders − CDH 2006.2009 3. in the context of the MB PHARE 2005 project. methodology was drafted which incorporates all the recommendations contained in relevant European documents. B) KEY PRIORITIES The following activities have been planned for 2009: Analysis of the results of a pilot International Crime Victims Survey − ICVS and implementation of the main Survey on a sample of 6. B) KEY PRIORITIES The plans for 2009 include a second Survey on Careers of Doctorate Holders − CDH 2008.000 households/persons. microdata and tabular data were transmitted to Eurostat by means of the eDAMIS application.18. E Science and technology A) ACHIEVEMENTS IN 2008 In the context of the MB PHARE 2005 project. A study on domestic violence which analyses the phenomenon of domestic violence in the period from 2001 to 2006 was drafted and published. 2. which is the second in a row. The survey was completed. followed in September by the submission of a Quality Report. In July. A data set was also prepared in accordance with Eurostat requirements.NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU . the findings assessed and the preparation of a data set and a final report for transmission to Eurostat are currently underway. A pilot International Crime Victims Survey − ICVS is being conducted through a public tender.

Since this is a new method of FISIM calculation. Similarly. on an annual and quarterly level. its alignment with ESA 95 requirements:19 a) The inclusion of “non-coverage” (the grey economy) in official GDP data. which provides for a methodologically more consistent calculation of bank output and of intermediate consumption of all the sectors using financial intermediation services. the third quarter of 2008. according to activities). POLITICAL CRITERIA victims and people’s opinions on crime. i. was made at constant prices and in volume terms.e. 3. Engl.3. UFPIM20. b) Financial intermediation services indirectly measured (Cro. The obtained data will be useful in evaluating the activities of the judicial system and non-governmental organisations that work with victims. abuse of narcotic drugs. FISIM21) have been classified according to institutional sectors and NCD activities (60 divisions of NCD). in the context of the MB PHARE 2006 project. A Macroeconomic statistics A) ACHIEVEMENTS IN 2008 In 2008.e. Non-coverage has been classified in fine detail in all three main categories of GDP calculation: output. b) quarterly GDP from the first quarter of 2000 to. the coverage has been classified in seven main types (N1 − N7) in accordance with the Eurostat tabular approach. The basis for FISIM classification according to activities was the structure of output in all 60 activities.I. To transmit to the Commission (Eurostat) Money Laundering Indicators needed for drafting a Eurostat pilot survey on money laundering. have been introduced in official GDP data at constant prices and in volume terms. except illegal activities. in the following time intervals: a) annual GDP from 1995 to 2007. and value added. The drafting and publication of studies on: criminal acts committed against children and minors. in accordance with the above-mentioned length of time series of annual and quarterly GDP. at the level of 60 NCD divisions (i. as in the cases under a) and b). This large methodological revision covered the following elements which can affect the quality of GDP calculation. intermediate consumption. a large-scale revision was made to GDP/GNI18 data at current prices and in volume terms within the framework of meeting the closing benchmarks for Chapter 18: Statistics. GDP was revised upwards for the value of financial intermediation services allocated into final consumption. Calculation of this item. and inclusive of. 18 19 20 21 GDP/GNI − Gross domestic product/Gross national income ESA 95 − European System of National Accounts UFPIM − Usluge financijskog posredovanja indirektno mjerene FISIM − Financial intermediation services indirectly measured 301 . The revision included GDP time series. corruption. All forms of non-coverage (N1 − N7). c) A new calculation was made of imputed rent through the addition of imputed income which brought the value of this item closer to its value in the countries of Eastern Europe which calculate imputed rent by means of the so-called cost method.18.

the plans for 2009 include further alignment with ESA 95 through minor. This statistical indicator was calculated in the context of own resources statistics. The priority chapters include: a) Chapter 1 − Introduction b) Chapter 3 − GDP production aspect c) Chapter 7 − Description of GDP non-coverage d) Chapter 9 − Description of FISIM allocation by sectors and description of neutralisation of the export and import effects of FISIM on GNI. a document entitled GNI Inventory was drafted.2009 In the context of the MB PHARE 2005 project. all the methodological conditions were met and data sources ensured for compiling quarterly sectoral accounts for two sectors: a) General government sector. In 2008. b) classification of all types of taxes. strictly in accordance with the ESA 95 requirements to establish a better transition from GDP at base prices to GDP at market prices (the difference between these two categories being so-called taxes on products). the National Accounts Sector of the CBS will hold regular methodological meetings in 2009 to achieve better methodological alignment between the non-financial and the financial sectoral accounts of the government. which is common for this type of procedure. better GDP alignment with ESA 95 requirements. The VAT base as a percentage of GDP was also calculated. regular GDP revisions of the following elements: a) calculation of fixed capital expenditure in the general government sector by means of the PIM method. b) Out-of-Croatia sector.financial sectoral account of the general government (responsibility of the CNB). c) improved distinction between market and non-market production and. the conditions were met for completing the basic items of Transmission Table 25 − non-financial sectoral account of the general government (responsibility of CBS) and Table 27. In the context of negotiations on Chapter 33: Budgetary and Financial Provisions. with respect to the non-financial sectoral accounts which are the responsibility of the CBS. plans for 2009 include improvements in the calculation of individual essential items of this account. The regular annual calculation of these two indicators. but has also made them more realistic as they now reflect the more recent structure of relative prices (always the previous year’s price structure). taking into account the following three aspects: a) re-calculation of the account’s essential items. Further to the activities related to Tables 25 and 27 (the non-financial and financial sectors of the government) in 2008. This type of GDP calculation has changed somewhat the quarterly GDP rates. In 2008. once the Republic of Croatia accedes to the EU. B) KEY PRIORITIES Further to the activities to improve GDP calculation in 2008. In 2008.e. from the cash principle into the accruals principle. will serve as a basis for planning the payments of the Republic of Croatia into the EU budget. in the framework of the so-called “t