Key developments and challenges

The completion of EU accession negotiations is a key milestone for Croatia. The country is scheduled to join the European Union on 1 July 2013 after a convincing endorsement of the Accession Treaty in a referendum and subsequently by parliament.

Important progress has been made in the transport sector. Road sector reform has advanced significantly over the years, a concession for Zagreb airport has been awarded and restructuring of the railways is under way.

Economic performance remains exceptionally weak. Economic output remained constant in 2011 after two years of negative growth, but is falling again in 2012, largely due to adverse external developments. However, efforts are being made to shore up the fiscal position and reduce the government deficit.