April the 22nd, 2023 - Croatian OECD entry could occur in the year 2025 at the very earliest, but important reforms must take place and the country must deal with its endemic problems surrounding nepotism and corruption.

As Poslovni Dnevnik/Ana Blaskovic writes, six full years after sending the letter of intent and one year since the opening of negotiations with the Organisation for Economic Cooperation and Development (OECD), Croatia could be admitted in 2025 at the earliest, Prime Minister Andrej Plenkovic said at the recently held conference "Croatia on the way to OECD: What does membership bring?"

For the head of the government, joining the prestigious club of 38 countries, of which 22 are EU members, is the third (remaining) strategic foreign policy goal after joining the Eurozone and the Schengen area.

State companies and banks

Unlike the situation with Eurozone accession, the Croatian OECD entry process has no deadline set, and the green light depends on the rigorous evaluation of more than 20 technical committees that assess whether the candidate country, in this case Croatia, has fulfilled the reforms and aligned itself with all of the rather stringent OECD standards, policies and practices. With this in mind, it isn't remotely surprising that the Prime Minister "retained some flexibility" regarding the entry date.

"Through the guidelines and programmes of the OECD, there will be an improvement in all those segments of Croatian society that we've already brought to a very high level with EU membership, and with OECD membership, we're going to be making it even better," Plenkovic believes. Next week, he announced, the government will revise the forecasts of GDP growth this year to 2 percent, but also announce a drop in the share of public debt in GDP to 68.4 percent and last year's budget surplus to 0.4 percent.

What the prime minister sees as a special added value, a system that will improve the corporate management of companies in (co)ownership of the state, is also one of the biggest obstacles facing Croatia at this moment in time. There is considerable apparent resentment for the fact that state-owned companies are very open to political infiltration, the serial production of corruption scandals and operate inefficiently.

Earlier, it was clearly stated that, although not mandatory, the recommendations on the centralisation of state ownership, the professionalisation of management and the tidying up of the regulatory framework, represent ''aqis'' for Croatian OECD entry.

"Through the accession process, Croatia will implement numerous reforms in the field of public administration, healthcare, trade, education, agriculture, transport and the management of state-owned companies,'' assured Goran Grlic-Radman.

OECD Secretary General Matthias Cormann said that Croatian OECD accession will be a positive transformative journey as it will lead to a rise in standards and bringing income and productivity closer to the OECD average. "These aren't just formalities but will provide tangible benefits to Croatia's residents," said Cormann during his very recent visit to Zagreb.

Government proposals coming soon

In the panel discussion that followed, Finance Minister Marko Primorac asserted that the Ministry of Finance is participating in the work of nine committees, and out of five OECD questionnaires, four have been completed. He announced that he will soon come out with proposals aimed at ownership policies, portfolio management, the equalisation of salaries, as well as certain "steps in the depoliticisation of Supervisory Boards and Management Boards".

"It's certain that Croatia's membership in the OECD and the reforms which need to be carried out in order to make that happen will further contribute to easing the business environment and creating a more productive, competitive and profitable Croatia," stated HUP (Croatian Employers' Association) director Irena Weber.

''For Croatia, the benefits of OECD membership include support for reforms through the sharing of best practices, participation in global debates and support for G7 and G20 policies. All of this increases the confidence of investors, often also the credit rating,'' said Gita Kothari, Deputy Director of the Directorate for Legal Affairs of the OECD.

For more, make sure to check out our dedicated news section.

April the 21st, 2023 - This week in Croatian politics, we've seen HDZ still being chosen as the favourite on the political scene, Croatia's WWII past has been revisited once again, and two big names from the OECD and the EU have paid visits to Zagreb.

A new survey has revealed that HDZ is still the favourite among voters, for some reason

As Index reports, just how much the constant turbulence within the weird world of Croatian politics really affects the popularity of the main actors on the ''stage'' was checked in HRT's recently carried out HRating. This monthly survey included 1,100 respondents, with the largest possible error being +/- 3.54%, and the reliability standing at 95%. This data was collected from April the 14th to the 18th, 2023.

No event or situation has yet appeared within Croatian politics that would quicken the pulse of the Croatian voter and change their long standing political sympathies. Remarkable, I know. The survey proves that - the months go by, the surveys are taken, but everything remains the same. This "same" means that HDZ is still somehow the favourite of the Croatian voter. Followed by... you guessed it! SDP.

Along with HDZ and SDP, only three other parties managed to cross the electoral threshold

The strongest among them - Mozemo! (We Can!), is close to 10%. It is followed by Most (Bridge) with the support of 9% of the country's voters. Domovinski pokret (Homeland Movement) concludes this group of five safe parliamentary parties. This month it is at 6%. From the "powerless" crowd for whom the parliamentary mandate should be just a fiction, the party headed by the mayor of Split jumps out - and Centar (Centre) is currently at 3.4% and its rating is currently stable.

All the others, and there are still 13 of them in the survey, may as well not even really exist. They stand little to zero chances of making it into any sort of powerful political position in Croatia as a single constituency unless some big changes occur. These are: HSS and Radnicka fronta (Workers' front) which tie in terms of their voter support, followed by Fokus (Focus) and Hrvatski suverinisti (Croatian sovereignists).

At a recently held government session, Plenkovic spoke about Jasenovac and claims that the behaviour of some MPs isn't acceptable

At the most recently held session of the Croatian Government, the decision on granting prior consent and the decision on granting a state guarantee for long term credit to the company Hrvatske ceste/Croatian roads were on the agenda. That consent and credit would be given in order order to finance ongoing projects and the company's business plan this year. The opening speech at the session was delivered by Prime Minister Andrej Plenkovic.

"The Ston ring road is very well made, it's an extremely valuable strategic project for Croatia," he began, before also referring to the latest assessment by the Fitch agency, which confirmed Croatia's BBB+ rating. "They recognise the direction we're going in, as well as the reform efforts and resistance to the crisis we've shown. We can also see that our trend is going better than planned, and that inflation is decreasing," Plenkovic said, adding that OECD Secretary General Mathias Cormann had paid a recent visit to the country.

"This is an organisation that has very, very high standards, both in combating corruption and in numerous sectors, so we'll further stimulate our reform process with activities related to the OECD. For us, it's the last step for Croatia's international positioning," Plenkovic added.

The Prime Minister condemned some opposition MPs and their apparently "unacceptable" behaviour

He referred to the recent chaos in parliament which unfolded during the debate on amendments to the law on offenses against public order and peace. To quickly remind you, it was especially stormy when the discussion started about the greeting "Za dom spremni'' (Ready for the homeland), which is generally deemed an "Ustasa" phrase with Nazi connotations and for which an individual could be fined up to 4000 euros for using. Of course, the history behind that phrase is deeper than just "It was used during the brief period of the Independent State of Croatia (NDH) and so it must be banned'' but we won't get into the ins and outs of that (or any connotations with the Homeland War) in this article.

"We consider the performances and statements of individual members of parliament yesterday to be inappropriate, and we believe that this is unacceptable, especially the aggressive approach that was directed towards the president of the parliament (Goran Jandrokovic)," said Plenkovic.

This Sunday, a joint commemoration will be held at the location where the Jasenovac concentration camp stood, where representatives of Jewish municipalities will also be present, who in previous years refused to come because they were dissatisfied with the government's attitude towards Croatia's position during WWII and the Ustasa regime in general.

"We're glad that this year, the Council of the Jewish Municipality of Zagreb and the Coordination of Jewish Municipalities in Croatia will also respond to the invitation of the Director of the Public Institution of the Jasenovac Memorial Area to participate in the commemoration,'' concluded Plenkovic.

Is the new Office for the Suppression of Corruption and Organised Crime's new boss going to be the woman put ex PM Ivo Sanader behind bars?

Zeljka Mostecak, the deputy chief state attorney, has been mentioned as a potential new director of the Office for the Suppression of Corruption and Organised Crime (USKOK) after the departure of Vanja Marusic, reports Dnevnik.hr.

To be clear, we're talking about a female prosecutor who has many years of experience under her belt and who was the main prosecutor in some of the most famous cases related to corruption in independent Croatia. Mostecak was, it should be mentioned, the main prosecutor in the very well known Fimi Media affair, a multi-year proceeding that led to the final conviction of former PM Ivo Sanader (HDZ) and seeing him banged up.

It should also be noted that HDZ itself was actually convicted in that case, but as a legal entity. For that case, Mostecak received the prestigious state attorney's award. Mostecak was also a prosecutor in a series of cases arising from the Fima Media affair, including the HAC affair. Before Mostecak worked at DORH, she was the main prosecutor in the HAC-Remorker affair. Former HDZ Minister of Transport and Mayor of Zadar Bozidar Kalmeta was also accused of wrongdoing in that affair.

Kalmeta was acquitted of sharing over 15 million kuna and 850,000 euros from road maintenance and construction companies with his associates. Three of Kalmeta's co-accused were found guilty.

The former minister was also acquitted of part of the indictment according to which he damaged the Ministry of Transport for 600,000 kuna by ordering the promotional film "The Transport Renaissance of Croatia" from the marketing agency Fimi Media. The company was tried for filling HDZ's ''black fund'' with money from various state companies and institutions.

The Commissioner for Internal Market of the European Union, Thierry Breton, visits Zagreb

Prime Minister Andrej Plenkovic received the Commissioner for the EU's Internal Market, Thierry Breton, in Zagreb this week. The pair discussed the state and ongoing development of the Croatian economy, the consequences of Russian aggression against Ukraine on the supply of energy sources across Europe, and the strengthening of the European defense industry as a whole.

Plenkovic explained to Breton that the Croatian economy is fully expected to grow more rapidly in 2023 than the initial expectations of the government, the European Commission and other international organisations initially predicted. They both also emphasised the need for continued military aid to Ukraine. The Prime Minister made sure to bring it up to the commissioner that Croatia offers the potential of energy support to its neighbouring countries by expanding the LNG terminal on Krk from 2.9 to 6.1 billion cubic metres of gas per year.

Plenkovic and Breton both expressed their ongoing sympathy and firm support for Ukraine as Russian attacks continue, both believing in the very pressing need for continued military aid being sent over to Ukraine. It was precisely in this context that they also discussed the production of ammunition for Ukraine, the overall security of the European Union and taking measures to increase the production capacity of the European defense industry, as touched on above.

The Organisation for Economic Co-operation and Development's Secretary General, Mathias Cormann, visits Zagreb as Croatia edges closer to membership

As Novi list writes, the OECD's Secretary General paid a visit to Zagreb recently, and he had nothing but praise for Plenkovic's government in its swift and fruitful responses to all sorts of issues we're currently facing in this economically unfavourable climate.

''For now, the Croatian Government is reacting very quickly and efficiently, and I have no reason to doubt that this will continue,'' said Mathias Cormann.

The HRT team spoke with OECD Secretary General Mathias Cormann, and he talked about the areas will he focus on when it comes to implementing reforms and whether or not Croatia's accession process can be completed in two years.

''We cover the entire spectrum of economic, social, environmental, and public order. So, from competition, public management, the fight against corruption to environmental protection standards, agricultural policy, and trade. We review the entire spectrum of public order in order to assess Croatian practices, legislation and policies and assess how far they are already aligned with the OECD standards or to what extent further reforms are needed to improve either policies or practices,'' said Mathias Cormann.

When it comes to what sort of key reforms Croatia needs to implement to improve, Cormann said that this is an ongoing process, and that this isn't really a political procedure but a technical review. What we do know is that there are 25 OECD policy committees with experts from 38 member states that will review all Croatian legislative policies and practices in the economy and society and assess their alignment with the proper standards.

 ''At the end of that process, they will recommend what improvements should be made. I can get back to you at that point so we can talk about it,'' Cormann stated, adding: ''I will say that Croatia is obviously very committed. It's progressing as fast as it can to meet all the conditions it needs to,''

 The Croatian Government ambitiously mentions a deadline of two years for OECD membership, but can these goals be achieved in two years? Cormann says there's no time frame.

''I say we're making progress as fast as we can, but it will take whatever amount of time it takes. This is a thorough and very serious procedure. Ultimately, it depends on how quickly the government provides the requested information and how quickly the government and parliament introduces the necessary reforms to implement all of the recommendations. For now, the Croatian Government is reacting very quickly and efficiently, and I have no reason to doubt that this will continue. But it is very difficult to determine the time frame,'' he concluded.

For more on Croatian politics, make sure to keep up with our dedicated section and keep an eye out for our Week in Croatian Politics articles which are published every Friday.