This paper gives an overview of three important aspects of consumer protection in the process of adjustment to the standards and norms of the European Union (EU): aspects concerning legislation and implementation, and, last but not least, the aspect of consumer representation. On the basis of experiences of accession countries (Hungary, Slovakia and Bulgaria) in their alignment with European Community (EC) consumer protection, this paper recalls the initial lack of any reliable tradition, also pointing out, however, the significant results made in this sector in the future Member States of the European Union. The main rationale is that, like in most of the accession and candidate countries, the law on consumer protection in Croatia represents only the starting point in the achievement of high standards of protection of consumer health and safety.
The issue of co-ordination in welfare policy in the European Union (EU) has been the subject of many analyses and discussions, but still it has not attained the same level of importance given to the coordination of economic policy. The aim of the paper is to determine the situations and actions in Croatia and the EU in the eradication of poverty and social exclusion. The paper starts with the theoretical and methodological framework, which is followed by an account of the states of affairs in EU member-states. After the description of the situation in Croatia, especially of its advantages and disadvantages as compared to other transitional countries and future members of the EU, the paper ends with a conclusion and proposals for improvement.
This paper analyses three issues that could potentially affect macroeconomic stability and hence the speed of Croatia's accession to the European Union (EU): (i) Can the economy continue to rely on domestic demand as the main source of growth or is stronger reliance on exports necessary in the medium term? (ii) Is the external current account deficit in Croatia "excessive" and how have high deficits been corrected in the past? (iii) Does the expansion of bank credit to the private sector carry the seeds of macroeconomic instability? The paper argues that clearer signs of healthier growth have emerged since 2000, and that the Croatian economy should be able to adjust to the widening external deficit in 2002–03 in an orderly manner. However, there are reasons to be concerned about the expansion of private sector credit, as recently it has been financed largely by foreign borrowing. Large capital inflows are likely to become the main challenges for macroeconomic policy in the run-up to Croatia's EU accession. Policy makers will in particular have to address the so-called "Tošovský dilemma", i.e., set interest rates at an appropriate level: setting them too high would invite excessive short-term inflows, while setting them too low would lead to excessive investment and thus inflation.
Awareness of the need for environmental protection must in Croatia be translated into a clear, overall and long-term concept, particularly because of the process of rapprochement with the European Union (EU), in which it is one of the key topics. This paper gives a brief review of the existing system of environmental protection in Croatia with emphasis on the institutional framework, the information system, the education system, and public participation. In the context of access to information and public participation, separate treatment is given to the Aarhus Convention, as well as to attitudes to this convention in Denmark, Estonia and Croatia. It is upon the basis of attitudes to Aarhus, one of the possible models for the democratisation of the process of environmental protection, that the final part of the paper draws certain conclusions and recommendations for political decision-makers and agencies in charge of implementing such decisions on Croatia's path to convergence with the EU.
This paper analyses the quality of governance and public administration as key determinants for successful functioning within the European Union (EU). A comparison between Croatia and future and present EU members is made, according to separate governance indicators (rule of law, democracy, corruption, political stability, government effectiveness) and experience in reform of the public administration. The paper shows that Croatia by all quality of governance indicators, particularly with respect to the rule of law, lags considerably behind the EU and the Central Europe candidate countries. The low level of the rule of law in combination with an inadequate public administration is potentially the greatest obstacle in Croatia's accession to the EU as well as in the creation of sustainable economic and social development.
Among the main conditions for joining the European Union (EU) is the protection of human rights, particularly the protection of minority rights. This paper will consider the protection of minority rights in Croatia since independence in 1991. In four chapters the paper analyses some of the essential segments of the protection of minorities in the international context as well as the obligations of Croatia in this context. The analysis centres on the Constitutional Law on the Rights of National Minorities adopted in December 2002. The position of minorities before and after this law came into force is compared.
This paper discusses the opportunities for and obstacles in the way of a dialogue between the Croatian government and the non-governmental sector within the context of the European integration process. Although the development of civil society, the building of institutional and administrative capacities and the strengthening of cross-sectoral dialogue are fundamental preconditions for the implementation of the overall adjustment to the EU, there is no clear list of priorities and demands on the basis of which it might be possible to monitor the progress made in this area by candidate and potential applicant countries for membership. Because of the lack of any clearly defined acquis, several strategic documents of the European institutions and the existing literature about the advances made by applicant states will be used as a point of departure for the analysis. The main guidelines for and obstacles to reform in this area in Croatia will be picked out in the light of the European criteria of good governance and the relevant experience of applicant countries.
The ability of a country to meet the criteria for financial convergence on the EU depends on four key factors: the behaviour and structure of the banks and non-banking financial service providers, the degree of development of the money and capital markets, the regulatory environment and the openness of the country to international financial currents. In this work the factors that work in favour of a rapid accession by Croatia to the EU and those that are the key areas of vulnerability on the same road are identified. The first group of factors includes the developmental level of the banking system, whose structural characteristics (competitiveness, ownership structure and scope of financial mediation) work in favour of rapid integration. This group also includes the standardising regulatory framework, the changes in which over the last few years have brought Croatia very close to the standards of the EU. Non-banking financial service providers are relatively undeveloped; however, where the investment and pensions funds are concerned, their development and the regulatory environment, rapidly converging on international standards, guarantee imminent ability to be included in the integration processes. The main areas of vulnerability are the undeveloped share capital market and a restrictive attitude with respect to international financial flows.
Reform of the Croatian legal system and the adjustment of its legislation to EU law is one of the main conditions for the Republic of Croatia to be able to join the Union. This paper analyses the existing requirements for gender equality inside the EU, the current situation in the applicant countries and the existing problems and challenges for states that are only on the way towards European integration. In the Republic of Croatia gender equality is not guaranteed to a sufficient extent, which has resulted in negative public reactions from NGOs and organisations for the protection of human rights and the rights of women. In addition, individuals are exposed everyday to various forms of sexual harassment in the workplace, in schools, universities and public places. So far, except at the constitutional level, no kind of legal approach has been adopted to guarantee gender equality or freedom of sexual orientation, which is an obligation of Croatia according to international treaties and the SAA.
This paper analyses the main macroeconomic conditions for joining the EU and the European Monetary Union (EMU), the readiness of the Croatian economy to meet these conditions, and the main challenges for economic policy on the road to these integrations. Croatia does not lag significantly behind the other CEE countries in fulfilling the criteria for EU and EMU membership. It has certain advantages with respect to the criteria of macroeconomic stability (with the exception of the budget deficit), investment efficiency, and potential growth. However, delays in the implementation of some structural reforms, in particular the development of a securities market, are estimated at about four years. The main challenges for economic policy in the run-up to EU and EMU are expected to be reducing the budget deficit and stabilising the public debt. Moreover, macroeconomic policies should remain prudent so as to strengthen external stability and maintain favourable conditions for growth.
This chapter aims to summarise and analyse the project that involves the work of a group of experts whose ambition it is to help those who make the political decisions, the media and interested readers to understand the requirements of the EU and the situation in Croatia, to draw concrete conclusions and make recommendations for essential measures. Part one raises the question of whether the EU is fiction or reality, part two puts Croatia in the context of the EU, while the third part concentrates on macroeconomics, banking and finances, taxes, government aid, trade policy, power, agriculture, employment and unemployment, the legal system, the non-governmental sector and equality between men and women. Part four analyses key questions of Croatia's accession to the EU – regulation within the EU itself, the normative and real harmonisation of Croatia and the EU, Croatian advantages and its points of vulnerability, and a comparison of Croatia with member countries and candidate countries. The chapter also offers a number of recommendations for individual areas, while particular stress is placed upon recommendations that relate to the importance of the public administration and the independent agencies, the question of whether it is better to make adjustments at once or only when they are essential, and the attitude to regional initiatives. The message of the paper is that most of the criteria of Maastricht, Copenhagen and the Stabilisation and Association Agreement are posed in such a way that they can only be of benefit to the country. Our goal ought to be to live in a society that meets as many of these criteria as possible, and whether Croatia will, in so doing, be a member of the EU or of some other association, or an association with some other name that will be relevant at the time Croatia has achieved all this is less important. The EU may help Croatia in its economic and social development, but only the citizens of Croatia can achieve economic development, institutions that are more efficient, and a society that is going to respect the laws and the rights of individuals.
Croatian membership in the EU is subject to the fulfilment of the legal and political obligations laid down in, among other places, the SAA, the Stability and Association Agreement. The implementation of the SAA depends on the definition of its position in the constitutional system of the Republic of Croatia, including the ability for its provisions to be directly applied in EU and in Croatian courts, the legal status of the bodies provided for in the SAA, and the legal position and legal standing of the decisions taken by these bodies. The implementation of constitutional changes is necessary for full membership of the EU, and some changes are also necessary even for implementation of the SAA. These are provisions that provide the legal basis for membership in the EU, including the definition of the manner of making use of state sovereignty, provisions that define in detail the legal status of international law and European primary and secondary law in the internal legal system of the EU, and provisions that adapt the constitutional organisation of the Republic of Croatia to the conditions of associate or full membership of the EU, optimise the functions of the institutions of state authority that will have to work in new conditions. In an evaluation of the fulfilment of the conditions for membership in the EU, the criterion for evaluation of the extent to which the legal system is adjusted will not be only the contents of the legal standards, but also the political, economic and social matters that are governed by these legal standards.
This paper examines the issue of communicating Europe to the European public, the importance of which has been accentuated by the acknowledged existence of a communication gap in the European Union. The paper looks at the experience and practice in the field of communication and refers to evidence of how the EU, its member states, candidate countries as well as Croatia have so far communicated European issues to their publics. The findings suggest several conclusions. Firstly, the practices resorted to so far have had an impact on the democratic feature of the EU and the public support it has acquired, but also on its practical everyday functioning. Secondly, there are numerous elements that account for the difficulties that exist in making the communication of Europe truly successful. Thirdly, the Europeanisation of communication should be taken into consideration as a way of contributing to the filling of the communication gap. Communication focusing not only on teaching facts but also on raising people's interest about European issues has become an EU policy of growing importance and a crucial instrument for ensuring the future ability to justify and win support for the European integration project.
This paper analyses the characteristics of EU regional policy and emphasizes the component of regional policy towards the Central and East European countries (CEEC) in the phases of candidacy and their full membership. Special importance was given to the possibility of Croatia to absorb funds offered by the EU. Potentials of Croatian regions are illustrated through the case of Istria, which successfully uses funds provided by the CARDS program and projects of Community Initiatives. In order to prepare Croatia (and its regions) as best as possible for use of these funds, it is necessary to set certain development documents, establish and reorganize (reassign) some institutions and improve cooperation with the EU regions.
Croatia missed the first wave of Eastern EU enlargementi, but it is likely to start accession negotiations in 2005. It is gradually aligning its legislation with the EU acquis pursuant to the Interim Agreement. Adjustment costs linked with the integration process coupled with the lack of a firm timetable for full EU-integration might give rise to euroscepticism, decrease readiness for reforms and slow them down. Delays in reforms related to transition and integration can endanger their effectiveness and impede development of the capacity to cope with market forces within the EU. This is the economic membership criterion. Hence, such developments can impede the fulfilment of EU membership criteria and also reduce the potential for exploiting the positive effects of integration.