Behind Croatia are four years of economic decline, industrial production is also falling, and unemployment is rising.
And that is precisely why Croatia’s entry into the EU should be viewed as both an opportunity and a challenge. What economic challenges lie ahead is one of the topics that emerged at the conference ‘How Prepared Are We for EU Membership and Funds?’ organized by the EU Center, the Croatian Chamber of Economy (HGK), the Center for Excellence, and the Ministry of Foreign and European Affairs.
Sandra Švaljek, a senior research associate at the Economic Institute, highlighted the challenge of competitiveness that arises from Croatia’s entry into the EU and exit from CEFTA.
– The CEFTA market has 19 million inhabitants, and Croatian entrepreneurs will soon have the opportunity to operate without barriers in a single market of 500 million inhabitants, which is certainly a great opportunity – Švaljek believes, adding that it has long been known what awaits entrepreneurs who must also be prepared for somewhat neglected markets of third countries. Croatia’s entry into the EU is an opportunity for those who are ready and a danger for those who are not, added HGK Vice President Vesna Trnokop-Tanta. Businesspeople are, she emphasized, aware that from July 1 they will have financial resources and far greater opportunities at their disposal.
– We are never fully prepared, but we are aware of the extent to which we still need to work – she emphasized. Immediately after July 1, one should not expect tectonic changes, noted Deputy Minister of Economy Alen Leverić, reminding of the fundamental document aimed at raising the level of competitiveness – the industrial strategy.
Among other things, the experiences of other countries that are in the EU show that, regardless of the situation in those countries, the effects have been positive. As stated by the chief economist of Zagrebačka Banka, Hrvoje Dolenec, the EU is a good trigger for investments and puts Croatia on the radar. Both Bulgaria and Romania are far economically behind Croatia, he continued, and with the mere announcement of their entry into the EU, they experienced the same positive effect as other, more developed countries. Dolenec sees a range of effects: foreign investors will come, a greater number of funds will be available, and the constant pressure from the EU that pushes for the adaptation of the economic system should not be overlooked. There are certainly challenges, but that does not necessarily mean they will result in something negative. Croatia is, in fact, inclined to solve problems through activism in the field of tax policy, and there are numerous ways to facilitate business for entrepreneurs. Švaljek sees great potential in domestic institutions that can, she believes, and must help entrepreneurs attract funds from the EU. Moreover, it has been shown that the use of funds was more effective the more state institutions approached the EU. The potential of certain sectors, such as the services sector, which will have far greater opportunities, should not be overlooked. Not to mention the ICT sector. All projects, Trnokop-Tanta believes, related to transport infrastructure, the energy sector, and railways will have a multiplicative effect on the economy. Leverić agreed with her and announced the release of a new operational program to stimulate Croatian industry worth 120 million kuna for tomorrow, Thursday.
