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Joining the EU Will Provide an Impulse to the Economy and Restore Investor Confidence

The European Union represents a challenge for us, and by joining the EU, the Croatian economy will receive the necessary impulse and restore investor confidence, emphasized Neven Mimica, the first Croatian Commissioner in the European Commission, responsible for consumer protection, in an interview with Il Sole 24 Ore.

On the occasion of Croatia’s accession to the EU, this Italian business newspaper published an article about the Croatian economy titled ‘Croatia Joins the EU Without Enthusiasm’, speaking with several Croatian officials and experts.

– The European Union represents a challenge for us. The process of aligning with EU standards has already had positive effects, for example, on the judiciary and public administration. I am convinced that the ability to move, travel, and work under the same rules enjoyed by Italians or Germans, access to a market of 500 million consumers, and the opportunity to utilize structural funds and the cohesion fund will greatly stimulate the economy. Membership in the Union is, in any case, a guarantee for investors – said Mimica.

As the newspaper states, the government and people on the crowded streets of Zagreb agree on several facts – regarding the national economy and family welfare, the status of the 28th member state will bring few advantages in the short term, and perhaps even a few more problems, while hope lies in the positive effects in the medium and long term.

– Our economy has long been tied to Western Europe. Moreover, it depends on large neighboring countries such as Italy and Germany. But we are officially entering the Union with a non-competitive economy. It is our obligation to direct all efforts towards exports, but few of our production structures are adapted to international markets – said Boris Cota, special advisor to the President of Croatia for the economy, from his office at the University of Zagreb.

In addition to presenting the state of the Croatian economy, Il Sole 24 Ore also explored what advantages joining the EU brings to Croatia. The director of the European Bank for Reconstruction and Development (EBRD) office in Zagreb, Vedrana Jelušić, highlighted for the newspaper that we are entering the Union well-prepared after a rigorous process.

– This is already an excellent foundation for long-term growth. We will be able to utilize 13.7 billion from European funds. This is an opportunity for a new beginning – said Jelušić for the newspaper. However, she added that Croatia must improve competitiveness, infrastructure, and provide better support to companies, and much still needs to be done in the legislative system, judiciary, and public administration, as well as expand investments and the market to achieve growth. Gianni Franco Papa, head of UniCredit’s department for Central and Eastern Europe, assesses that Croatia is a serious and disciplined country, similar to some Northern European countries.

– I do not believe that it will repeat the mistakes made by Eastern countries, considering Brussels as the solution to all problems. Joining the EU will be very positive for the entire economy, especially for key sectors such as tourism and agriculture, and will provide additional guarantees to international investors – believes Papa.

And since the Croatian economic system is oriented towards foreign markets, it has obvious problems in achieving growth as it is tied to the eurozone, which is in recession, but European funds will help in recovery, believes Papa. The pre-accession process has already forced Croatia to implement many reforms: from public administration to the judiciary, from environmental protection to consumer rights protection, emphasized Mimica.

– The greatest difficulties are related to the international economic crisis. Croatia is largely dependent on the results of its main market partners: Italy, Germany, Austria, and Slovenia. It is necessary to reassess our economic system and set investment in the manufacturing sector as a goal – said Mimica.

Speaking about Croatia’s strengths, Jelušić highlighted an advanced economy, a developed and stable banking sector, rich natural resources, tourism potential, and a geographical position that connects the south and north of Europe. Papa noted that Croatia is a very reliable country, starting from the banking system whose central institution has acted wisely and cautiously for years.

Mimica emphasized the need to continue the rehabilitation of public finances and reforms to attract investors and create a favorable business climate.

– I am thinking of sectors such as tourism that have great development potential. Economic growth for Croatia will come through its international relations – concludes Mimica.