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Support to promotion of reciprocal understanding of relations and dialogue between the European Union and the Western Balkans: National Report on Internal market under The Specific Grant Agreement RELEX 1-2 190202 REG 4-14

The research paper on Croatia’ s progress in developing institutional and legislative capacity in line with EU requirements in the area of internal market focuses on the following areas: progress in implementing instruments of the Stabilisation and Association Process, four freedoms, trade, intellectual property rights, customs, taxation and public procurement. The general findings are that in the period after signing the SAA Croatia made significant progress in the development and harmonisation of legislative framework in accordance with the acquis, while harmonisation of secondary legislation and implementation as well as enforcement of institutions remains priority. As economically most advanced country of SAP region, Croatia has to continue rapidly with reform agenda and implementation of the SAA. Although significant progress in implementing the SAA was made, there is still a lot of work to be done which needs good, timely and transparent preparations. It could be expected that the country will achieve its internal goal to reach readiness for accession by 2007, if continues with reforms in the same speed and efficiency. Coordinated work on continuation of accelerated implementing the SAA obligations and structural reforms leading to functioning market economy is needed. Speeding up internal reforms (particularly in judiciary, privatisation, public administration, fiscal consolidation, and in some other areas), continuing SAA implementation and law enforcement are the key preconditions for the success of joining the Bulgaria and Romania in the next wave of enlargement.

EU accession; Croatia; fiscal consolidation; structural reforms

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