EC Country Report: November Elections Delayed Necessary Reforms in Croatia

LPJ Issue 171, 7 March 2016

The European Commission (EC) recently published country reports for each of the 28 EU member states, analysing the member states’ economic and social policies. The report suggests insufficient progress was made in Croatia. The EC also published the Alert Mechanism Report that initiated the fifth annual round of the macroeconomic imbalance procedure. This report identified Croatia as demanding a further in-depth review.

Based on the analysis presented in the Country Reports and the dialogue held with the member states, the EC will publish country-specific recommendations (CSRs), which are part of the European Semester. The 2016 European Semester began in November 2015 with the Annual Growth Survey, which acknowledged the EC’s jobs and growth strategy.

In the 104-page Country Report for Croatia, the EU executive arm said that, after its 6-year-long recession, during which time the GDP shrunk by over 12% in real terms and unemployment surged from below 9% to over 17%, Croatia had finally recorded a 1.8% growth in 2015. The growth was mainly driven by the rebound in domestic consumption and, to some extent, investment…

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