CROATIAN UPDATE

Croatia’s economy will shrink for a second consecutive year in 2013, when it joins the European Union. In 2012 Croatia registered a negative growth (-2%) in GDP. Gross domestic product will contract 0.4 percent this year and return to “subdued” growth in 2014 with a 1 percent expansion.

Croatia is dependent on economic cycles of the European Union . About half of Croatia’s trade is with the euro area, primarily with Germany and Italy, and the euro area is the source of about three-fourths of foreign-direct investment (FDI) flows into the country. Croatia also has a high concentration of banks whose ownership indirectly exposes them to the euro-area crisis. Unemployment rose to over 14% at the end of 2012 and youth unemployment in the country remains one of the highest in Europe. The private sector has been bearing the brunt of the crisis with around 115,000 jobs lost mostly in manufacturing, construction and trade.

Croatia still needs to increase competitiveness, strengthen its labor market and boost domestic demand. It is expected that EU entry in July should have a positive effect on private investment.

Croatia chose on 14 April 2013 its new MEPs (EP elections) but the voter turnout was a low 20.6%, ( the lowest turnout of any election in Croatian modern history) which was a result of lack of EU information, general public apathy towards politicians and the fact that the Croatian government chose to separate the EP elections from the local elections.

The following candidates will be European Parliament MEPs:

HDZ-HSP AS-BUZ (Center-Right Coalition) - 6 seats
RUŽA TOMAŠIĆ (HSP AS)
ANDREJ PLENKOVIĆ (HDZ)
DUBRAVKA ŠUICA (HDZ)
DAVOR IVO STIER (HDZ)
IVANA MALETIĆ (HDZ)
ZDRAVKA BUŠIĆ (HDZ)
SDP-HNS-HSU  (Center Left Coalition)- 5 seats
TONINO PICULA (SDP)
BILJANA BORZAN (SDP)
MARINO BALDINI (SDP)
OLEG VALJALO (SDP)
SANDRA PETROVIĆ JAKOVINA (SDP)
Croatian Labourists (HL) - 1 seat
NIKOLA VULJANIĆ

The new MEPs will represent Croatia. They will serve for the remainder of the 2009-2014 term of the European Parliament, after Croatia enters the Union on 1 July 2013.