ZAGREB, January 9, 2020 - The College of Commissioners, comprised of the 27 Commissioners, is holding a meeting on Thursday and Friday in Zagreb, at the start of Croatia's six-month rotating presidency of the European Union, and the gathering is chaired by European Commission President Ursula von der Leyen.

The gathering of the College of Commissioner in Zagreb formally marks the start of Croatia's presidency in the first half of 2020.

European Council President Charles Michel, who arrived in Zagreb on Wednesday, will attend the two-day meeting.

Commission President von der Leyen and other members of the EC are arriving in the Croatian capital on Thursday and in the evening, they will attend a special concert in the Croatian National Theatre (HNK).

Upon the gala concert in the HNK, Croatian President Kolinda Grabar-Kitarović will give a reception for the guests.

On Friday morning, Prime Minister Andrej Plenković receives the EC President von der Leyen, and their meeting is scheduled before the start of the meeting of the Croatian government and the College of Commissioners in the Croatian National and University Library (NSK).

After that, Plenković and von der Leyen are due to address the press.

The events in Zagreb are being covered by some 60 Brussels correspondents who came in Zagreb on Wednesday for the College meeting at the start of Croatia's EU presidency as part of regular practice by EU countries-in-chair to invite correspondents from Brussels at the start of their rotating EU presidency. On that occasion, journalists were briefed about the priorities of the Croatian presidency by PM Plenković on Wednesday afternoon.

The College of Commissioners, comprised of the 27 Commissioners, meets as a general rule at least once per week. This weekly decision-making procedure is called the oral procedure.

In practice, the Commissioners meet every Wednesday morning in Brussels. However, during the plenary sessions of the European Parliament in Strasbourg, the meeting takes place on a Tuesday.

More news about Croatia and the EU can be found in the Politics section.

ZAGREB, January 5, 2020 - The beginning of Croatia's presidency of the Council of the European Union will be officially marked in Zagreb next week, when the entire European Commission, led by President Ursula von der Leyen, as well as European Council President Charles Michel, will visit Zagreb.

European Council President Michel will arrive in Zagreb on January 9, and during the day he will meet with Prime Minister Andrej Plenković and in the evening attend a ceremony marking the start of Croatia's EU presidency at the Croatian National Theatre (HNK).

After the ceremony, a dinner will be hosted by President Kolinda Grabar-Kitarović.

All EC commissioners, led by von der Leyen, will arrive in Zagreb slightly later on Thursday and will attend the ceremony at the HNK.

On Friday, January 10, a meeting will be held between the European Commission and the Croatian government at the National and University Library.

Prime Minister Plenković will talk with EC President von der Leyen and Croatian ministers will hold talks with European commissioners who cover the ministers' departments.

Von der Leyen will also meet with Parliament Speaker Gordan Jandroković.

Plenković and von der Leyen will hold a joint news conference, after which Plenković will host a working lunch for EC members and his government ministers.

More news about Croatia and the EU can be found in the Politics section.

ZAGREB, December 29, 2019 - The European Commission has warned Croatia that it has not eradicated corruption and that it should reform the system of public salaries, stimulate a longer working life and bring order in healthcare, Jutarnji List daily reports on Sunday.

Fighting corruption, notably locally and in public companies, reforming the public pay system, reducing healthcare budget risks, stimulating a longer working life and improving the welfare system are the main reform measures totally lacking in Croatia, the Commission says in its annual review of progress made in public policy measures to correct macroeconomic imbalances, the daily reports.

The review was made at the end of November and covers the period until November 5.

Aside from those measures, the Commission demands Croatia intensify efforts in reforms which are at a standstill, stagnating or not being implemented energetically enough, such as strengthening fiscal responsibility, modernising public administration, improving the state assets management, privatising state assets, reforming regulated professions, reducing parafiscal levies and reducing case backlogs.

As for reforms that are being implemented at an adequate pace, the Commission mentions the education reform and the regulatory reform.

As a result of the reform shortcomings, the biggest problems of the Croatian economy, despite the measures undertaken on the labour market, are a low active population rate and low productivity growth.

In the 2015-17 period, Croatia grew above the potential growth and since then the economy has grown somewhat in line with its capacity, with GDP in 2019 reaching the level of 2008, Jutarnji says, adding that unless the necessary reforms are launched, the economy will grow below its potential as of 2021.

More news about corruption issues can be found in the Politics section.

ZAGREB, November 28, 2019 - Nine Croatian MEPs supported the new European Commission headed by Ursula von der Leyen, while two independent MEPs, Mislav Kolakušić and Vilibor Sinčić, voted against.

Of 707 lawmakers attending the plenary, the Commission won the support of 462, while 157 voted against and 89 abstained.

MEP Ruža Tomašić from the European Conservatives and Reformists Party (ECR) is not satisfied with most of von der Leyen's programme.

"She got my vote simply for pragmatic reasons. Namely, I intend to work intensively with the commissioner for agriculture who is also in my parliamentary group, in an effort to improve Croatia's agriculture. I also plan to successfully complete the multiannual plan for pelagic fish in the Adriatic, which is not possible without the Commission's support," said Tomašić.

Tonino Picula (SDP/S&D) congratulated the new Commission on receiving overwhelming support in the European Parliament and expressed his satisfaction that one of the Commission's priorities was to continue enlargement to the Western Balkans.

More news about the European Parliament can be found in the Politics section.

ZAGREB, November 21, 2019 - The European Commission's new President Ursula von der Leyen said in Zagreb on Wednesday that nationalists and populists would not destroy the European way of life, which is also the name of one of the portfolios in the new Commission.

That name has elicited criticisms, notably from European Liberals and Greens. They believe it has too many associations with the protection of Europe from illegal migrants.

There is no doubt as to what the European way of life is. We will never let those nationalists and populists, which want to cause divisions and destroy the EU, hijack our European way of life, von der Leyen said at a European People's Party congress.

Our Union is based on respect for human dignity, freedom, democracy and equality. We will always defend our European way of life, she added.

The European Parliament is expected to confirm the new Commission next week and Europe's new government is expected to step into office on December 1.

Von der Leyen supported Croatia's accession to the Schengen Area, following a positive recommendation from the outgoing Juncker Commission.

I'm keeping my fingers crossed and hope that the European Council adopts a positive decision because I strongly believe that Croatia belongs in Schengen, there is no doubt about that, she said.

To the Western Balkan countries recently blocked on their European journey by France, von der Leyen said she stood by them.

We share the same continent, history, culture, and we are in the same political family. I assure you that we stand by you, independently of all processes. We stand by you and want you to be as close to us as possible, she said.

Talking about Brexit, she announced that, if it happened, the EU would respect Britons, notably in trade relations.

But we let them know that a country that is not in the EU can't enjoy the same rights as the member states, she said.

The EPP will have eight European commissioners, including Croatian MEP Dubravka Šuica, who will be the vice president for democracy and demography.

You will help us tackle one of the biggest challenges, how to ensure the prosperity of citizens at a time when we have an increasingly old population. You will put people at the very heart of Europe, von der Leyen told Šuica.

More news about Croatia and the EU can be found in the Politics section.

ZAGREB, November 7, 2019 - The European Commission on Thursday mildly revised down Croatia's growth outlook from the initial 3.1% to 2.9% in 2019, due to a slower growth rate in the country's main trading partners, and in the next two years, the EC expects investments to robustly rise in Croatia, alongside a record low employment rate and a declining public debt.

"As growth in Croatia’s main trading partners moderates, domestic demand will remain the main driver of economic activity," the EC says in its latest document called "European Economic Forecast for 2019, 2020 and 2021".

"Household consumption remains strong, driven by growing employment and wages as well as low inflation. Investment is set to continue growing strongly, backed by EU funds, and government consumption is also expected to support growth. The economy should continue adding jobs, but at a slower pace as labour shortages appear in some sectors," reads the document's section on Croatia.

The Commission also expects Croatia's the debt ratio "to continue declining steadily as the general government balance turns from mildly positive to neutral."

In 2020, Croatia's growth is set to rise at a rate of 2.6% and in 2021 by 2.4%.

In the previous document, the growth was projected at 2.7% both in 2020 and 2021.

The investment growth is projected at robust 8.8%, whereas in 2018, it was 4.1%. In 2020 the investment growth rate is projected at 7.5% and in 2021 at the rate of 7.2%.

"Driven by the rising uptake of EU funds by both the public and private sectors, investment growth is expected to record growth rates above those observed since 2015 throughout the forecast period. Furthermore, favourable financing conditions should remain supportive of private investment."

The Commission notes that economic activity in Croatia regained momentum in the first half of 2019, after a weaker-than-expected performance towards the end of 2018.

"Real GDP rose sharply in the first quarter, by 1.5% quarter-on-quarter, followed by more moderate growth in the second quarter, at 0.2%. Based on high frequency indicators, growth is expected to remain moderate in the second half of the year, bringing the forecast for 2019 to 2.9%.

Domestic demand is driven by strong household consumption and is supported by public consumption and investment, which benefits from increasing use of EU funding. Despite a recovery in exports, net exports are set to negatively contribute to growth due to the strong performance of imports.

"Throughout the 2019-2021 period, domestic demand is forecast to remain the main driver of GDP growth. Ongoing improvements in the labour market, rising wages and low inflation will continue to drive household consumption. A stronger contribution from public consumption is expected, driven by rising intermediate consumption and increasing public sector wages."

The Commission also projects that overall, Croatia's trade balance is expected to deteriorate throughout the forecast period and the current account balance is expected to gradually decrease to 0.3% of GDP by 2021.

"In 2019, the general government balance is expected to remain in surplus for the third year in a row," says the Commission.

"Revenues are performing strongly in spite of tax cuts, which particularly affected revenue from VAT and social contributions. Expenditure grows primarily due to wage hikes in the public sector, investment and intermediate consumption.

"In 2020-2021, tax revenue is expected to grow at a slower pace than nominal GDP, due to further tax cuts. EU funds are projected to continue supporting revenues as the programming period enters its most mature stage."

"Expenditure growth should continue in 2020 and moderate somewhat in 2021, largely due to the strong base effect of the rising wage bill, investment and capital transfers in 2018-2019. Additional savings are expected in interest payments, most notably in 2020, as a sizable portion of maturing debt is refinanced at lower rates."

The Commission expects Croatia's budget to remain balanced. "In structural terms, the general government deficit is expected to increase from 0.3% of GDP in 2018 to 1% of GDP in 2020 and decrease slightly in 2021. The debt ratio is set to continue declining strongly on the back of surpluses and nominal GDP growth, dipping below 65% of GDP in 2021."

More economic news can be found in the Business section.

ZAGREB, October 30, 2019 - Protecting the European way of life and giving a fresh boost to European democracy are some of the priorities of the new European Commission, said Dubravka Šuica, the Croatian member of the Commission led by President Ursula von der Leyen.

The agenda of the new EC President includes several headline ambitions: a European Green Deal; an economy that works for people; a Europe fit for the digital age; protecting our European way of life; a stronger Europe in the world; and, a new push for European democracy.

Presenting those priorities in Zagreb on Wednesday, Šuica, who is the European Commission Vice President-elect for Democracy and Demography, said that in the first six months of her term she intends to detect the main reasons for emigration from rural areas to urban centres throughout Europe as well as determine the impact of demographic changes on various groups of population with the aim of defining measures for the resolution of demographic issues.

"A long-term vision for rural areas is necessary," she said at the event at which Prime Minister Andrej Plenković outlined the priorities of Croatia's presidency of the EU in the first half of 2020.

The Croatian Commissioner recalled that she would be in charge of organising the Conference on the Future of Europe, which should start in 2020 and last two years.

More news about Croatia and the EU can be found in the Politics section.

ZAGREB, October 24, 2019 - Opposition parties in the Croatian Parliament on Thursday welcomed the request by the European Commission that in the process of accession to the Schengen free-travel area Croatia should strengthen its Commission on Prevention of Conflict of Interest, especially the penalty mechanisms, while some of the ruling parties said that improvements were necessary to enhance the Commission's operational role.

Peđa Grbin of the Social Democratic Party (SDP) recalled that the adoption of the Conflict of Interest Prevention Act had been one of the conditions for the conclusion of accession negotiations with the European Union.

"Had we not adopted the rules on the prevention of conflict of interest and given the Commission relatively broad powers, we wouldn't have been in the EU. And now, after we entered the EU, we behave like some who we laughed at, such as Bulgaria or Romania which entered the EU and then started breaking the rules and accession criteria. Croatia said that it would not behave like that, but it was enough for the HDZ to come to power for us to turn our backs on that," Grbin told reporters.

He called for strict rules on the prevention of conflict of interest.

"Croatia needs to combat conflict of interest because it is the first step towards corruption. If we don't want to be among the most corrupt countries in Europe and the world, we have to start preventing conflict of interest. The fact that the European Commission felt the need to write about it in a report clearly indicates that this matters to Europe too," Grbin said.

Sunčana Glavak of the ruling Croatian Democratic Union (HDZ) said that Croatia had met all technical criteria for Schengen membership.

"Everything that has been done in the last three years is an excellent success of the government and I am confident that we will continue in this direction so that Croatia becomes a full member of the Schengen area as soon as possible because that is in the interest of our citizens, as well as in the interest of citizens of the EU and our neighbours. Croatia has the longest border and we are in a way, guardians of European peace and security," Glavak said.

"The Commission on Prevention of Conflict of Interest has its powers, it must work in accordance with the law and interpret the law correctly, and whether the law should be amended, whether its powers should be expanded or not should be left to the legislature to decide," Glavak said.

Milorad Batinić of the Croatian People's Party (HNS), a junior partner in the ruling coalition, said that his party was of the view that the Conflict of Interest Prevention Act should be improved.

He said that certain improvements should be made to enhance the operational role of the Commission, adding that the HNS supported transparency and wanted the Commission to have the same powers as similar bodies in the EU.

More news about conflict of interest issues can be found in the Politics section.

ZAGREB, October 22, 2019 - The European Commission assessed on Tuesday that Croatia met the conditions for joining the Schengen Area and asked the Council of the EU to include Croatia in the area without internal border controls.

"The European Commission considers that, based on the results of the Schengen evaluation process initiated in 2016, Croatia has taken the measures needed to ensure that the necessary conditions for the full application of the Schengen rules and standards are met," a press release said.

"Croatia will need to continue working on the implementation of all ongoing actions, in particular its management of the external borders, to ensure that these conditions continue to be met. The Commission also today confirms that Croatia continues to fulfil the commitments, linked to the Schengen rules, that it undertook in the accession negotiations," the press release said.

Commission President Jean-Claude Juncker said: "I commend Croatia for its efforts and perseverance to meet all the necessary conditions to join Schengen... This is why I trust that Member States will take the right steps for Croatia to become a full Schengen member soon."

Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos said: "Schengen is one of the greatest and most tangible achievements of European integration. But its strength very much depends on its inclusiveness - now that Croatia has taken the measures to ensure that the necessary conditions are met, we must recognise this. Once it becomes a full member, it will contribute to further strengthening the area and ensure that the EU's external borders are better protected."

In order to join Schengen, a country must prove that it can assume responsibility for controlling the EU's external borders on behalf of the other member states of the area and issue short sojourn visas, efficiently cooperate with the security authorities of the member states, and apply the Schengen rules such as control of external land, sea and air borders (airports), issuing of visas, police cooperation, protection of personal data, and the need to connect to and use the Schengen Information System and the Visa Information System.

Regular evaluations are conducted in Schengen member states to check if the Schengen rules are applied correctly.

The Commission's evaluation on technical preparedness is not enough for joining but it is a prerequisite for the member states to make a political decision on the accession.

Bulgaria and Romania, for instance, have had a positive evaluation since 2011 but have still not joined Schengen because there is no consensus among the member states.

Slovenia has made it clear that it is going to block Croatia's accession to the Schengen Area due to Ljubljana's dissatisfaction with the unresolved border dispute with its eastern neighbour.

Currently, the Schengen Area includes 26 European countries that have officially abolished all passport and other types of border control at their mutual borders. Of those 26 members, 22 are part of the European Union: Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, and Sweden.

The non-EU members covered by this passport-free area are Iceland, Lichtenstein, Norway and Switzerland.

The six EU member states not included in the Schengen Area are Ireland and United Kingdom, which still maintain opt-outs, and Romania, Bulgaria, Croatia, and Cyprus, which are required to and are seeking to join soon.

Three European microstates that are not members of the European Union but which are enclaves or semi-enclave within an EU member state - Monaco, San Marino, and Vatican City - are de facto part of the Schengen Area.

Prime Minister Andrej Plenković said on Tuesday the European Commission's decision that Croatia met the conditions to join the Schengen Area was another big European success for Croatia, but did not say when he expected Croatia to join.

"This is an important day and yet another big European success for Croatia," he told reporters. "In the technical sense, today we received objective verification, by the only institution in charge, that we are prepared."

Asked when Croatia would join, Plenković said he "wouldn't speculate on a precise date" but that "it's not realistic" that Croatia will join during its EU presidency in the first half of 2020.

As for Slovenia's possible blockade of Croatia's accession, he said the border dispute with Slovenia was "bilateral in nature."

"We will try to separate those bilateral topics from this one because this is a topic we should resolve with Slovenia in a different way, through dialogue and by looking for a solution with which both sides will be satisfied."

He said it was a success that Croatia did not have an additional monitoring mechanism for joining Schengen such as Romania and Bulgaria had.

More news about Croatia and the Schengen Area can be found in the Politics section.

ZAGREB, October 21, 2019 - European Commission spokeswoman Mina Andreeva said on Monday that the Commission would adopt a report on Croatia's compliance with the Schengen Area requirements on Tuesday.

Tomorrow the College of Commissioners will evaluate Croatia's progress in meeting the criteria required for joining the Schengen Area, she said after the chiefs-of-staff of all commissioners defined the agenda of Tuesday's Commission meeting in Strasbourg.

Numerous prerequisites must be met to join the passport-free travel area, including taking responsibility for controlling the EU's external borders, issuing visas on behalf of the area's other member states, and establishing efficient cooperation with the security authorities of the member states.

A country hoping to join must be capable of fully enforcing the Borders Code, which includes controlling the borders on land, at sea and in airports, issuing visas, police cooperation and personal data protection. The country must also be entered into the Schengen Information System.

The Commission carries out an evaluation before a country enters the Area, as well as occasionally after accession to see if the Schengen laws are being enforced. The Commission's evaluation on technical preparedness is not enough for joining but it is a prerequisite for the member states to make a political decision on the accession.

Bulgaria and Romania, for instance, have had a positive evaluation since 2011 but have still not joined Schengen because there is no consensus among the member states.

Croatian Prime Minister Andrej Plenković said in late September that it was difficult to predict when Croatia would join Schengen but that the goal was to receive a positive evaluation by the Commission this year that Croatia had met all the criteria.

More on Croatia and the Schengen Area can be found in the Politics section.