August 4, 2021 - Could Zagorje once again become an important railway link between Southeastern Europe and Central Europe? A look at the potential of Zagorje. 

Located in northern Croatia, the Zagorje region is bordered by Slovenia to the north and west, Međimurje to the northeast, Podravina to the east, and Zagreb to the south. The region’s largest towns are Varaždin and Krapina. 

With its rolling hills, green forests, vineyards, and Habsburg-style castles, Zagorje can be described as a mix between Tuscany and Bavaria. The region is known for its many spa resorts (toplice), most notably Krapinske Toplice, Tuheljske Toplice and Varaždinske Toplice. Other attractions include the Disney-style Trakošćan castle, Marija Bistrica with its pilgrimage church, the Krapina Neanderthal site (Hušnjakovo), the Sljeme ski resort, and the ethno village in Kumrovec. There are also hidden attractions. In Bedekovčina, for example, there are three artificial lakes (bajeri). In the future, the lakes could become a destination for swimmers, sunbathers, and fishers.

Many known Croats were born in Zagorje, amongst them Ljudevit Gaj, the father of the Croatian alphabet (born in Krapina), Antun Mihanović, the author of the Croatian national anthem (born in Klanjec), Ambroz “Matija” Gubec, a 16th-century peasant revolutionary (born around Stubičke Toplice), Franjo Tuđman, the first Croatian president (born in Veliko Trgovišće) and Josip Broz Tito, the long-time dictator of Yugoslavia (born in Kumrovec). 

Zagorje has a perfect location, 30 minutes from Zagreb, less than an hour from Maribor, 1 hour from Ljubljana, and 2 hours from Graz. In addition, two international highways run through the region, the one from Zagreb to Graz and the one from Zagreb to Budapest. 

Not two, but actually three international railway lines pass through Zagorje; Zagreb-Budapest via Varaždin-Kotoriba, Zagreb-Celje (Slovenia) via Kumrovec, and the one from Zagreb-Celje via Zabok and Krapina. Unfortunately, the Kumrovec-line and the Đurmanec-Celje section of the Krapina-line have been closed for decades. Currently, there is no passenger traffic between Croatia and Hungary via Varaždin. 

As seen, the Zagorje railways are underutilized. There are, however, positive signs. At the end of 2019, it was announced that the Harmica-Klanjec section of the Kumrovec-line and the Zabok-Đurmanec section of the Krapina-line would be modernized and electrified. In 2020, the electrification of the Zaprešić-Zabok section of the Varaždin-line was completed. In the coming years, the Zabok-Čakovec section will be modernized. 

Moreover, there are plans to build a new railway from Krapina to Varaždin via Lepoglava and Ivanec, the so-called Lepoglava connection (Lepoglavska spojnica). If built, the travel distance from Zagreb to Varaždin would be reduced from 2 h to less than an hour. Direct train services from Zagreb to Varaždin via Krapina would benefit the whole Zagorje region.

If the Lepoglava connection is built and the lines to Slovenia are reopened and modernized, Zagorje could once again become an important railway link between Southeastern Europe and Central Europe. 

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Economic growth in Europe and Central Asia slowed down to 3.1 percent in 2018, and it is predicted to fall to 2.1 percent in 2019 due to a slower rate of global growth and uncertain prospects.

As Poslovni Dnevnik writes on the 5th of April, 2019, the Croatian economy continued to grow at a rate of 2.6 percent in 2018, while in the forthcoming period from 2019-2021 moderate growth is expected at an average rate of 2.5 percent, according to the World Bank's most recent report on the latest economic trends in Europe and Central Asia (N1).

The countries of the region recorded different rates of growth. Growth at the regional level has greatly contributed to positive developments in the GDP data of Russia as the largest economy in the region, just as the accelerated growth did in Albania, Hungary, Poland, and Serbia. On the other hand, Turkey has experienced a significant slowdown in growth due to the pressure of the financial market and currency issues. Namely, in 2019, it is expected to grow by 1.0 percent, which is a significant drop compared to 7.4 percent back in 2017.

"Europe and Central Asia are vulnerable to global uncertainty and are faced with serious long-term challenges such as aging populations, a decline in productivity, a decline in investment, and climate change. It is good that there are a whole range of possible solutions available when public policies are geared towards mitigating these challenges,'' stated Cyril Muller, Vice President of the World Bank for Europe and Central Asia.

"Countries should work harder to attract investment, enhance their participation in global value chains, and ensure that more people are able to access financial services such as bank accounts and electronic payments."

Regional growth is expected to recover its power in 2020 and 2021, as it is predicted that the gradual recovery of Turkey will serve as a counterweight to the restrained activity in Central Europe as a whole. However, the long-term challenges of the region are still substantial.

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