# Croatia - United States Department of State

- Croatia HomeReportsBureau of Democracy, Human Rights, and Labor2023 Country Reports on Human Rights Practices&#8230;Croatia				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Country Reports on Human Rights Practices: Croatia																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																																																																																		f. Transnational Repression																																																																											g. Property Seizure and Restitution																																																																											h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																											f. Status and Treatment of Internally Displaced Persons																																																																											g. Stateless Persons																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption in Government																															Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																															Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																											Other Societal Violence or Discrimination																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination (see section 6)																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				There were no significant changes in the human rights situation in Croatia during the year.There were no credible reports of significant human rights abuses.The government took credible steps to identify and punish officials who may have committed human rights abuses.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were no reports that the government or its agents committed arbitrary or unlawful killings, including extrajudicial killings, during the year.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities; however, approximately 1,800 missing person cases from the 1991-1995 Homeland War remained unresolved.  The government made efforts to investigate and punish those responsible.  Progress on missing persons remained slow primarily due to bilateral political challenges with Serbia.  The government continued to seek Serbia’s assistance in resolving outstanding cases.On August 30, the International Day of the Disappeared, Prime Minister Andrej Plenkovic stated on social media it was the country’s political and humanitarian duty to find missing citizens.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and other Related Abuses										The constitution and law prohibited such practices, and there were no credible reports that government officials employed them.																Prison and Detention Center Conditions						Some prison conditions were inadequate due to an increasing trend of overcrowding and a shortage of healthcare and other professionals.Abusive Physical Conditions:  Gross overcrowding in prisons was a problem.  The Office of the Ombudsperson’s 2022 annual report noted an increasing trend of overcrowding in most of the country’s prisons.  Prisoner complaints related to the availability of adequate healthcare increased.  Most prisons did not have staff doctors but instead provided services through labor contracts.  Prisoners frequently alleged that dental care was primarily limited to tooth extraction.Inmates alleged they were denied legislatively mandated rights.  They noted in particular slow responses to relocation requests.  With the exception of Sibenik prison, as of the end of 2022 the occupancy rate of all prisons in the country was more than 100 percent.  The most egregious cases of overcrowding were reported in prisons in Osijek (205 percent capacity), followed by Karlovac (170 percent capacity), and Zadar (153 percent capacity).  There were no reports of extensive prisoner-to-prisoner violence or gang activity, although some prisoners expressed fear for their safety and reported threats from other prisoners.  The ombudsperson’s report assessed that although institutions took measures aimed at preventing interprisoner violence, the measures were still primarily reactive rather than preventative.  Additionally, the report noted staff shortages in penal institutions.Administration:  Authorities investigated credible allegations of mistreatment through the Office of the Ombudsperson, which issued recommendations to improve conditions for prisoners.  The ombudsperson’s report noted allegations by some Romani inmates of judicial police officers allegedly insulting and belittling them.Independent Monitoring:  The government permitted monitoring by independent nongovernmental observers.  The Office of the Ombudsperson carried out tasks specified by the independent National Preventive Mechanism (NPM), the national body for the prevention of torture and other cruel, inhuman, or degrading treatment in institutions where individuals were, or could be, deprived of their liberty.  The NPM conducted monitoring visits to police stations, police detention units, transit reception centers for migrants, prisons, psychiatry clinics, and psychiatric wards in hospitals.In July a delegation from the UN Subcommittee on Prevention of Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (SPT) visited prisons, police stations, and other facilities to assess the treatment of persons deprived of their liberty.  The delegation also accompanied members of the NPM during their visits to a prison and a police detention facility.  The SPT concluded the country made progress in improving detention conditions; however, it also noted more effective measures were needed to address the problem of overcrowding.Improvements:  The government took steps during the year to improve prison or detention center conditions.  Authorities improved the energy efficiency of the prisons in Karlovac and Varazdin and renovated penitentiaries in Pozega and in Lipovica-Popovaca, which created new accommodation units for more than 200 prisoners.  In April the minister of justice and public administration signed an agreement to construct a new penitentiary in Gospic, with capacity for 400 prisoners, maximum-security capabilities, and what the ministry claimed would be “the highest human rights standards.”																										d. Arbitrary Arrest or Detention										The constitution and law prohibited arbitrary arrest and detention and provided for the right of any person to challenge the lawfulness of their arrest or detention in court.  The government generally observed these requirements.																Arrest Procedures and Treatment of Detainees						Other than those apprehended during the commission of a crime, persons were arrested with warrants issued by a judge or prosecutor based on evidence.  Prosecutors were permitted to hold suspects for up to 48 hours in detention without charging them with a crime.  Upon the request of prosecutors, an investigative judge was allowed to extend investigative detention for an additional 36 hours.  Authorities informed detainees promptly of charges against them.  The law required a detainee be brought promptly before an investigative judge and charged with a crime, and those rights were generally respected.  The law limited release on bail only in cases of flight risk.  In more serious cases, defendants were held in pretrial detention.  Authorities allowed detainees prompt access to a lawyer of their choice or, if indigent, to one provided by the state.																										e. Denial of Fair Public Trial										The constitution and law provided for an independent judiciary, and the government generally respected judicial independence and impartiality.  Cases of intimidation of state prosecutors, judges, and defense lawyers were isolated.																Trial Procedures						The constitution and law provided for the right to a fair and public trial, and the independent judiciary generally enforced this right.Defendants in criminal cases were periodically denied the right to a timely trial due to judicial backlog and procedural inefficiencies in domestic courts.  The judicial backlog was substantial, with most delayed cases pending at the municipal court level.  Existing case backlogs and lengthy court case adjudications continued to raise concerns regarding judicial effectiveness.  From June to the end of July, a country-wide judicial strike related to wage increase demands slowed the functioning of the judiciary further and caused the cancellation of hundreds of hearings.  Lengthy trials also remained a problem.  The EU Commission’s annual Rule of Law Report released on July 5 noted that low public perception of judicial independence and challenges related to lengthy trials served to undermine the efficiency of anti-corruption efforts.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.																										f. Transnational Repression										Not applicable.																																				g. Property Seizure and Restitution										The government endorsed the Terezin Declaration but did not have adequate legal mechanisms in place to address Holocaust-era property claims for restitution.  The country had not effectively compensated claimants for property seized during the Holocaust period (1941-1945) and inconsistently permitted noncitizens to file claims.Nongovernmental organizations (NGOs) and advocacy groups reported the government did not make significant progress on resolving Holocaust-era claims, including for foreign citizens.  The government did, however, in June hold a round of discussions with the World Jewish Restitution Organization and Jewish community to address outstanding matters.  The law limited restitution of property seized during the communist era to individuals who were citizens of the country in 1996 and permitted claims to be filed only within a specified window, which closed in January 2003.  The law did not provide effective compensation to persons, including Holocaust survivors, whose property was expropriated but had left the country and obtained citizenship elsewhere.  A 2002 amendment to the law allowed foreign citizens to file claims if their country of citizenship had a bilateral restitution treaty with Croatia, while in 2010 the Supreme Court ruled the government could not require such a treaty as a necessary condition for restitution.  In 2011, the Ministry of Justice attempted unsuccessfully to amend the legislation to reflect this finding and reopen claims and estimated the amendment might potentially benefit more than 5,000 claimants.  As of September, the government had taken no subsequent steps to amend the law.Communal property restitution remained a problem for the Serbian Orthodox Church, the Coordinating Committee of Jewish Communities, and the Roman Catholic Church.  The government reported approximately 74,000 property restitution claims filed as of September of which the government reported approximately 68,000 of those claims were resolved.  The Department of State’s Justice for Uncompensated Survivors Today (JUST) Act Report to Congress, released publicly in July 2020, can be found on the Department’s website:   https://www.state.gov/reports/just-act-report-to-congress/.																																				h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution and law prohibited such actions, and there were no reports the government failed to respect these prohibitions.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution and law provided for freedom of expression, including for members of the press and other media, and the government generally respected this right.Freedom of Expression:  The law sanctioned individuals who acted “with the goal of spreading racial, religious, sexual, national, ethnic hatred, or hatred based on the color of skin or sexual orientation or other characteristics.”  Conviction for internet hate speech was punishable by up to three years’ imprisonment.  The law provided for six months’ to five years’ imprisonment for conviction of organizing or leading a group of three or more persons to incite violence or hate via print media, radio, television, computer system or networks; during public gatherings; or in any other way against certain categories or groups.  On April 21, parliament adopted an amendment to the Misdemeanor Law on Offences against Public Order and Peace that significantly increased fines for the public use of banned symbols and salutes.Police arrested 25 persons in October for potential hate crimes after they sang songs affiliated with the fascist Ustasha regime (1941-1945) during a soccer match between Croatia and Turkey on October 12 in Osijek.  Prime Minister Andrej Plenkovic condemned the incident and stated that such behavior was done by those whose “intentions can only be the worst possible.”  Deputy Prime Minister and Minister of Internal Affairs Davor Bozinovic called the behavior “absolutely unacceptable.”  On October 24, the Velika Gorica Municipal Court convicted five soccer fans accused of singing Ustasha-affiliated songs during an October 21 match between the Gorica and Zagreb Dinamo soccer teams.  The court sentenced all five individuals to 60 days in prison, although the sentence was suspended for one year.  Three of the fans received a one-year ban from Dinamo and national team matches, and the other two were not allowed to attend matches for the next two years.  Three more fans were arrested.  Those proceedings were ongoing at year’s end.Censorship or Content Restrictions for Members of the Press and Other Media, Including Online Media:  Members of the press reported self-censorship due to fear of online harassment, lawsuits, upsetting politically connected individuals, or possible adverse employment effects.Libel/Slander Laws:  By law, libel and insult were criminal acts punishable by a fine.  Insults were not criminally prosecuted if committed in the conduct of journalism, in a public interest, or for other justifiable reasons.  The country also had a law that enabled plaintiffs to sue publishers and journalists through civil litigation, which the judiciary enforced.  Journalists and publishers asserted this fostered a climate of intimidation and self-censorship in media.  Damages awarded to plaintiffs by the courts in civil litigation could range from symbolic amounts to as high as several million euros, since some publishers faced multiple litigations.  When plaintiffs won a case, journalists were required to pay damages and litigation costs.On January 30, Croatian Journalists Association (CJA) President Hrvoje Zovko warned that lawsuits against journalists represented a new form of intimidation.  According to a May 2 CJA survey, there were 945 lawsuits against media outlets, editors, and journalists, including 910 cases seeking an estimated combined total of €5.4 million ($5.83 million) in alleged defamation damages.  On May 3, Zovko warned the situation was “untenable” and that proceedings against journalists should stop.  He alleged Croatia held the record in the EU in terms of the number of lawsuits against journalists filed by judges.  Zovko noted politicians and private business leaders also filed such lawsuits.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content.																										b. Freedoms of Peaceful Assembly and Association										The constitution and law provided for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/.																																				d. Freedom of Movement and the Right to Leave the Country										The law provided for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights.																																				e. Protection of Refugees										The government cooperated with the Office of the UN High Commissioner for Refugees (UNHCR) and other humanitarian organizations in providing protection and assistance to refugees, returning refugees, or asylum seekers, as well as other persons of concern.Access to Asylum:  The law provided for the granting of asylum or refugee status, and the government established a system for providing protection to refugees.  The Ministry of Interior worked with asylum seekers and persons granted international protection and provided access to the asylum procedure.  NGOs noted reports of lengthy asylum application procedures that, in some cases, lasted longer than one year.  UNHCR asserted more than 90 percent of applicants left the country before receiving a final decision.  Several NGOs noted overcrowding and a lack of medical personnel in the country’s asylum reception centers.  The Ministry of Interior publicly acknowledged the centers’ full capacity, and in September the government began construction to build an additional reception center.NGOs in Bosnia and Herzegovina (BiH) publicly asserted many asylum seekers who returned from Croatia (through the readmission procedure) to centers abroad stated they were unable to request asylum and frequently alleged Croatian authorities ignored their intentions.  They noted multiple applicants claimed they were unable to understand the documents presented to them by Croatian officials due to their inability to speak Croatian or English.  NGOs noted detention prior to administrative return on average lasted three to six days and individuals reported accommodation conditions in the detention centers were inadequate.  In some cases, individuals alleged they were provided only one meal per day and that officials confiscated their cell phones during the readmission procedure, leaving them unable to contact their families, lawyers, or NGOs.Abuse of Refugees and Asylum Seekers:  Domestic and international NGOs accused the country’s border police of sporadic violent pushbacks of both asylum seekers and irregular migrants.  NGOs were not in agreement as to the extent of the problem.  Some domestic NGOs described pushbacks as “less frequent” and “less violent” compared to previous years and noted many pushbacks did not happen from inside the country.  Other NGOs claimed it was difficult to assess the full scope of pushbacks since they were not present at the borders.  The Danish Refugee Council (DRC) noted a steady increase of pushbacks from January until June.  Ministry of Interior officials contested the allegation and asserted the DRC included “administrative returns to Bosnia” as pushbacks.  On May 5, Human Rights Watch accused police of regularly violently pushing back migrants, asylum seekers, and refugees to BiH without assessing their protection needs or asylum requests.On April 6, Dutch media nonprofit Lighthouse Reports published an investigative report featuring leaked communication from a WhatsApp group chat between mid- and high-ranking Croatian border police officers in 2019 and 2020, regarding the apprehensions of more than 1,300 mostly Syrian, Pakistani, and Afghan migrants.  The nonprofit alleged the messages proved the officers carried out state-authorized pushbacks.  On April 6, Minister of Interior Davor Bozinovic confirmed in press comments that police used the WhatsApp group chat in relation to the 2019-2020 “Operation Corridor,” but refuted pushback allegations and stated individuals who crossed into the country were all registered and offered asylum.On April 18, a group of asylum seekers who claimed border police pushed them back into BiH in 2020 filed a lawsuit before the Constitutional Court.  In the lawsuit, the asylum seekers claimed they suffered severe violence and sexual assault.  The case remained pending at year’s end.Durable Solutions:  During the year authorities accepted and relocated 10 refugees from Italy for resettlement under the inter-EU solidarity scheme.  The government continued to participate in the joint Regional Housing Program with the Governments of BiH, Montenegro, and Serbia to contribute to the resolution of the protracted displacement of the most vulnerable persons following the 1991-1995 conflict.  The program increased the number of houses provided and families assisted.Temporary Protection:  The country had a mechanism for subsidiary protection for those who did not qualify as refugees.  In March 2022, the country officially activated the EU Directive on the Temporary Protection for Refugees from Ukraine and allowed individuals from Ukraine to enter the country and receive certain benefits without applying for asylum.  More than 23,000 Ukrainians and third country nationals received temporary protection in the country.The Ministry of Interior was responsible for organizing the reception and care of persons who met the conditions for temporary protection.  The government provided temporarily protected individuals with accommodation, health care, access to primary and secondary education, and employment without a requirement to obtain a residence or work permit or a certificate of work registration.  The government extended temporary protection for Ukrainian citizens until March 4, 2024.																																				f. Status and Treatment of Internally Displaced Persons										Not applicable.																																				g. Stateless Persons										An estimated 730 stateless persons and persons at risk of statelessness lived in the country.  The Ministry of Interior was responsible for granting stateless individuals who fulfilled legal requirements residency and eventual citizenship.  UNHCR advocated for the ending of statelessness in the country, including through the establishment of a stateless determination procedure.  The law extended the right to social welfare to all stateless persons legally residing in the country.																																					Section 3.													 Freedom to Participate in the Political Process												    																						The law provided citizens the ability to choose their government in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																										Elections and Political Participation										Abuses or Irregularities in Recent Elections:  The most recent parliamentary and presidential elections were held in 2020, and European Parliament elections in 2019.  National elections were widely reported to be fair and free of abuses and irregularities.																																					Section 4.													 Corruption in Government												    																						The law provided criminal penalties for corruption by officials, and the judiciary generally implemented the law effectively.  Corruption remained a problem, and there were allegations of government corruption during the year.Corruption:  The judiciary continued efforts to investigate and adjudicate high-profile corruption, including ongoing cases against some former ministers and high-level managers in state-owned companies.  The judiciary generally imposed statutory penalties in cases in which there was a conviction.  Investigative journalists, parliamentary opposition members, NGOs, and whistleblowers discovered and reported corruption cases, mainly related to abuse of office and manipulation of privileged information for personal gain.  In most of these cases, government action came after state prosecutors initiated official investigations or formally filed indictments.The EU Commission’s annual Rule of Law Report released on July 5 positively emphasized the effective investigation of high-level corruption, increase in the overall number of corruption related indictments, and progress on the Organization for Economic Cooperation and Development’s (OECD) convention benchmarks.On July 11, media reported the Office for the Suppression of Corruption and Organized Crime initiated an investigation against the former Croatian Democratic Union Mayor of Pozega, Darko Puljasic, and the judge of the County Court of Slavonski Brod, Predrag Dragicevic, for allegedly accepting and giving bribes.  The investigation focused on the period between early 2018 and the end of 2020, during which Puljasic and Dragicevic allegedly reached an agreement on mutual benefits.  Puljasic reportedly provided assistance to Dragicevic in finding a new job for his son’s wife and transferring his son to a different position within the Pozega-Slavonska Police Administration.  Dragicevic was accused of manipulating the judicial process in favor of Puljasic.  The case remained under investigation at year’s end.On September 4, the County Court of Zagreb sentenced former Head of the Zagreb City Department for Health Zvonimir Sostar, pending appeal, to four years in prison on charges that he and his associates defrauded the city budget by €5.05 million ($5.45 million) through fictitious deals to clean sports hall ventilation systems.  The court ordered asset confiscations of €1 million ($1.08 million).On September 28, parliament amended the Penal Code and the Law on Liability of Legal Entities for Criminal Offenses to meet the prerequisites for admission to the OECD.  The amendments aligned laws with the OECD’s Convention on Suppression of Bribery of Foreign Public Officials in International Business Transactions requirements.For additional information concerning corruption in the country, please see the Department of State’s Investment Climate Statement for the country and the Department of State’s International Narcotics Control Strategy Report, which includes information on financial crimes.																											Section 5.													 Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights												    																						A number of domestic and international human rights groups generally operated without government restriction to monitor or investigate human rights conditions or cases and publish their findings.  Government officials were somewhat cooperative and responsive to the views of these groups.Government Human Rights Bodies:  The country had an ombudsperson for human rights who investigated complaints of human rights abuses, as well as three additional ombudspersons for gender equality, persons with disabilities, and children.  The law stipulated parliament could not dismiss the ombudsperson for human rights because of dissatisfaction with their annual report, but it could dismiss the other three if it did not accept their annual reports.  Ombudspersons said this limited their ability to do their jobs independently.																											Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence:  The law criminalized rape of a person, regardless of gender, including spousal rape and domestic violence.  The law was enforced in most cases.  Sentences ranged from fines to jail, depending on the crime’s severity.  Rape, including spousal rape, was punishable by a maximum of 15 years’ imprisonment.  Domestic violence was punishable by up to three years’ imprisonment.  The law provided for stricter penalties for violence against closely related family members and violence against women.  Sexual intercourse without consent was classified as rape and was punishable by three to 10 years’ imprisonment.  The law provided sanctions (fines and up to 90 days’ imprisonment) for misdemeanor domestic violence.The ombudsperson for gender equality’s 2022 report noted an increase in the number of cases for criminal offenses of threats, domestic violence, bodily injury, and rape in comparison to 2021, while reports of serious bodily injury and intrusive behavior declined.  According to the law intrusive behavior included acts of stalking, intimidation, and unwanted communication.  The Croatian Women’s Network submitted requests to the Ministry of Justice and Public Administration to enhance protections for women against gender-based violence and advocated for the inclusion of femicide as a distinct crime within the penal code.  The Network advocated for more comprehensive legislation that covered all forms of gender-based violence against women and girls.There were reports police perpetrated or condoned sexual assault and rape.  On August 31, authorities filed criminal charges against two Licko-Senjska county police officers who were arrested for the alleged rape of a woman.  At year’s end, the police officers were released from investigative detention, but the criminal procedure remained ongoing.  In April a group of asylum seekers alleged border authorities handed them over to masked and armed men in black uniforms who abused and sexually assaulted them.In a September 6 evaluation, the Council of Europe’s Group of Experts on Action against Violence against Women and Domestic Violence (GREVIO) recommended more measures to support women survivors of less visible forms of gender-based violence and specialized services for women survivors of sexual violence.  The evaluation highlighted the lack of specialist services catering to women experiencing intersectional forms of discrimination and asserted the justice system paid insufficient attention to the impact of domestic violence on child witnesses.Discrimination:  The law provided for the same legal status and rights for women as for men.  These included status and rights under laws pertaining to family, religious, and personal status; nationality; property inheritance; employment; access to credit; and owning or managing a business or property.  In labor and employment, the law required equal pay for equal work.  The government did not enforce the law effectively.  Women often experienced discrimination in labor or employment, education, and the judicial process.The annual report of the ombudsperson for gender equality noted discrimination complaints, which comprised two-thirds of all complaints received, came from nearly all segments of society.  The report asserted women faced discrimination based on gender, motherhood, and family status in the social, public, and private spheres.  In the labor market, discrimination related to age and motherhood was a problem in relation to women’s social and employment status.  Women regularly reported difficulty in providing sufficient evidence to prove an employer demoted them or did not renew fixed-term employment contracts due to pregnancy discrimination.  The annual report of the ombudsperson for gender equality noted women from historically marginalized communities, including women with disabilities, members of national minorities, women living in rural areas, and women who were addicted to harmful substances, were particularly at risk for multiple forms of discrimination.  The report noted women with disabilities faced discrimination, which reduced their possibilities of economic independence.Reproductive Rights:  There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.  Emergency contraception was available for purchase at pharmacies by persons older than age 18 upon presenting appropriate identification.  Distribution of emergency contraception was available during the clinical management of rape upon assessment of the gynecologist conducting the forensic exam within 72 hours of the reported rape.  The Ministry of Health instructed every hospital to provide comprehensive reproductive health care, including to the survivors of sexual violence, and ordered that when doctors used personal ethical objections as a reason to refuse a procedure, the doctor’s objection would be listed in their personnel file.Vulnerable populations, including persons with disabilities, had the ability to provide informed consent to medical treatment affecting reproductive health, including for sterilization, except for persons whose intellectual capabilities were such that they were deemed not capable to work and were assigned a caregiver, who could make this decision for them.																																				Systemic Racial or Ethnic Violence and Discrimination										Constitutional provisions against discrimination applied to all minorities.  The constitution provided a comprehensive and coherent framework for protection.  Additionally, the law provided for the protection and promotion of equality and provided for protection against both direct and indirect discrimination.  The government did not enforce the provisions effectively.  According to the ombudsperson for human rights, ethnic discrimination was the most prevalent form of societal discrimination, particularly against Roma, Serbs, and migrants or persons of non-European descent.  Of these groups, Roma faced the highest level of reported discrimination.Despite progress on Roma community educational integration, Roma continued to report instances of discrimination and stigmatization particularly regarding employment, social acceptance, poverty, segregation, and housing.  In March, media reported on the physical attack of a Romani elementary school student by non-Romani students in the town of Slavonski Brod.  Media reported the school contacted the parents several days after the incident and notified them that the Romani girl had missed her classes.  A hospital that offered assistance to the injured girl notified police concerning the attack, and at years end, the police investigation continued.Migrants and persons of non-European descent continued to be exposed to prejudice and discrimination due to their race, religion, or ethnic identity.  On March 13, police in Zagreb detained a man who posted a video of himself on social media verbally assaulting a delivery man of Indian descent using racist terminology.  Police promptly opened an investigation into the incident and made an initial public statement claiming the video could qualify as a criminal offense of public incitement to violence and hatred.  The incident was strongly condemned by the ombudsperson.  An investigation continued at year’s end.Serb national minority representatives asserted they faced discrimination at the national and local levels.  The Serb National Council (SNV) alleged the Serb national minority faced various forms of discrimination, including:  hate speech and calls for violence against the Serb community; continued, outstanding property restitution cases delayed due to ethnic discrimination; challenges regarding the registration of Serb minority schools in Eastern Slavonia; and vandalism of cultural monuments and Serbian Orthodox Churches in several cities.  The SNV also alleged the Ministry of Veterans Affairs routinely denied war crime victim status to Serb minorities, as well as subsequent financial benefits for members of the Serb minority who were victims of war crimes committed by Croatian forces.  The SNV asserted this was due to the ministry’s assessment that they were “sympathizers, accessories, or participants in the aggression” simply because the victims lived in areas outside of Croatian forces’ control when the crime was committed.  The SNV noted 21 towns and municipalities failed to introduce dual script signage despite meeting the legal minority population threshold for their required implementation.  Serb community members reported receiving death threats.  Posters calling for the lynching of Serbs were occasionally displayed.On April 30, Prime Minister Andrej Plenkovic attended the fourth Grand Assembly of the SNV and stated his government had strong partnership with all national minorities and the main goal of his government was to have a tolerant society.  He emphasized the importance of reconciliation efforts.  Prior to the assembly meeting, he hosted a bilateral meeting with Prime Minister of Serbia Ana Brnabic.In a July report based on complaints received, field work, research, and data collected from various stakeholders, the ombudsperson noted challenges in the country related to protection against ethnic or racial discrimination.  The report asserted members of the Romani community, the Serb national minority, migrants, and third country foreign workers alleged numerous violations of employment rights and denials of the right to work.  It also noted incidents of reported hate crimes and hate speech, as well as challenges in obtaining free legal aid and housing.  The report highlighted the right of return for Croatian Serbs who fled during the 1990s war and advocated for the introduction of mandatory human rights education as a separate school subject and as part of civic education.																																				Children										Child Abuse:  Child abuse, including violence within families and among peers, remained a problem.  There were laws against child abuse, and the government enforced the laws effectively.  The penalty for conviction of grave sexual abuse of children depended on the crime’s gravity and included long-term imprisonment if the child died as a result.  There was no statute of limitation for prosecution of serious criminal acts of sexual abuse and exploitation of a child.  By law anyone convicted of a sexual offense against a child could, after serving their sentence, be prohibited from duties or activities involving regular contact with children if a court determined a perpetrator would likely repeat the crime.  Convicted individuals could be monitored, per court order, under protective supervision after completing their sentence.  The law required employers to conduct background checks before hiring employees to positions involving regular contact with children.  Labor Act amendments stipulated employers working in education, employing children, or organizing activities that involved children were required to ensure employees who came into contact with children did not have prior convictions or face criminal proceedings.The Ministry of Interior noted an increase in domestic violence against children, which the ministry stated was exacerbated by the impact of the COVID-19 crisis, 2020 earthquakes, and the worsened economic situation.Child, Early, and Forced Marriage:  The legal minimum age for marriage was 18, and this was effectively enforced by the government.  Children older than 16 were legally allowed to marry with a judge’s written consent.Sexual Exploitation of Children:  The law prohibited commercial sexual exploitation of children and the sale, grooming, or using of children for commercial exploitation, including child sex trafficking.  The law prohibited the offering or procuring of a child for commercial sex and child pornography and provided for jail sentences ranging from six months to long-term imprisonment, including for sexual exploitation of children, depending on the age of the victim and severity of the crime.  Authorities enforced the law.  The Ministry of Interior conducted investigations and operated a website known as Red Button for the public to report child pornography.  The minimum age for consensual sex was 15.																																				Antisemitism										The World Jewish Congress estimated the country’s Jewish population at 1,700.  Some Jewish community leaders continued to report historical revisionism and antisemitic rhetoric, including use of symbols affiliated with the pro-Nazi Ustasha regime (1941-1945).  Jewish community leaders noted the lack of a specific penal code provision outlawing use of the Ustasha insignia and slogans exclusively.  The use of Ustasha slogans and symbols could be charged as a criminal offense if combined with charges of incitement to hatred and violence.  During the first 10 months of the year there were no known reports of antisemitic incidents involving violence; however, the Jewish Community did report incidents of antisemitic hate speech online.By law attacks motivated by antisemitism were defined as hate crimes and criminal offenses.  The law stipulated “anyone who by press, radio, television, computer system or network, in a public gathering or in any other way publicly incites or makes available to the public leaflets, pictures, or other material that incites violence or hatred directed towards a group of or a member of a group on the grounds of race, religion, national or ethnic group, origin, skin color, gender, gender identity, sexual orientation, disability or any other characteristics may be punished with up to three years’ imprisonment” if convicted.  Individuals who joined or led groups instigating such activity could also be charged with up to five years’ imprisonment.  The Penal Code additionally criminalized public statements that approved, incited, or diminished the significance of acts of genocide, war crimes, and crimes against humanity with the intention of inciting violence.  The government enforced the law effectively.  In January, the government adopted the legally nonbinding International Holocaust Remembrance Alliance (IHRA) working definitions of antisemitism, Holocaust denial and distortion, and anti-Roma racism and discrimination.  In March, the country began its one-year IHRA presidency.On April 23, Prime Minister Plenkovic and President Zoran Milanovic commemorated the 78th anniversary of the inmate breakout from the World War II Jasenovac concentration camp.  At the event, Prime Minister Plenkovic hailed the country’s adoption of the IHRA definition of antisemitism and lauded parliament’s adoption of increased fines for publicly displaying or saluting banned symbols and text.On September 18, the National Museum of Modern Art returned two pieces of looted art to the family member of a Jewish couple who died in Auschwitz concentration camp.  The museum acted in compliance with a Zagreb Civil Court legal finding that the paintings were unjustly confiscated from the Reichsmann family more than 70 years ago.																																				Trafficking in Persons										See the Department of State’s annual Trafficking in Persons Report at  https://www.state.gov/trafficking-in-report/.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization:  No law criminalized consensual same-sex sexual conduct between adults.  There were no laws criminalizing cross-dressing or other sexual or gender characteristic-related behavior.Violence and Harassment:  There were no reports of government agents, including police, who incited, perpetrated, condoned, or tolerated violence or harassment against lesbian, gay, bisexual, transgender, queer, and intersex (LGBTQI+) individuals.  Police investigated all reports of violence by nonstate actors.Discrimination:  The laws prohibited discrimination by state and nonstate actors based on sexual orientation, gender identity or expression.  The law explicitly recognized LGBTQI+ couples and their families and granted them rights equal to rights of other persons except for full parental and adoption rights.  The government generally enforced those laws, but individuals and minority groups reported occasional discrimination.  Transgender persons reported discrimination in the workplace.In February the ombudsperson for gender equality reported that she received abusive emails, including death threats, after she filed a criminal complaint against former member of parliament Ivan Pernar.  In February Pernar allegedly reported to authorities in Zambia that a Croatian transgender citizen under arrest there was allowed to adopt children from neighboring Congo and noted that “as far as I know, such persons cannot adopt children from the Congo.”  The ombudsperson asserted a former member of parliament calling for the prosecution of a Croatian national in another country, particularly one with restrictive laws against LGBTQI+ persons, put the adoptive parent at risk of imprisonment.Availability of Legal Gender Recognition:  The government allowed individuals to change their gender identity marker on legal and identifying documents to put them into alignment with their gender identity.  Self-determination of gender was not allowed under the law; however, individuals could seek formal approval from the Ministry of Health for a gender transition after their case was reviewed and certified.  The government did not require surgical intervention or sterilization to complete the process.Involuntary or Coercive Medical or Psychological Practices:  “Conversion therapies” were not explicitly forbidden by law; however, civil society groups reported there were no such publicly reported cases.  Surgeries were not performed on children or nonconsenting adult intersex persons.Restrictions of Freedom of Expression, Association, or Peaceful Assembly:  There were no restrictions on freedom of expression, association, or peaceful assembly for those speaking out on LGBTQI+ matters, on media reporting on LGBTQI+ matters, on the ability of LGBTQI+ organizations to legally register or convene events, or to assemble in public or private to form associations.  On June 10, Zagreb hosted its 22nd Pride Parade attended by approximately 5,000 persons.  The Zagreb police reported two arrests of individuals suspected of committing “aggravated theft in connection with a hate crime” after they attempted to set fire to a pride flag on Zagreb’s main square.  A small number of socially conservative, anti-gender movement members held up crucifixes in protest as parade participants passed.																																				Persons with Disabilities										The law prohibited discrimination against persons with disabilities, including in access to education, employment, health services, information, communications, public buildings, transportation, and the judicial system along with other state services, but enforcement of the law was not always effective.  The law mandated access to public buildings for persons with disabilities, but building owners and managers did not always comply, and there were no reported sanctions.  Children with disabilities attended all levels of school with peers without disabilities, although there were still isolated cases of discrimination.  Government information and communication on disability concerns was provided in accessible formats.The ombudsperson for persons with disabilities reported the lack of government acknowledgment of her 2022 recommendations to enhance general living standards for persons with disabilities was a barrier to helping persons with disabilities achieve their potential.  Most complaints reported to the ombudsperson related to difficulties with gaining employment as a disabled person.																																				Other Societal Violence or Discrimination										Societal discrimination against persons with HIV or AIDS was sporadic.  The healthcare system did not treat HIV and AIDS as a separate illness but included it in programs for harm reduction as an illness tested along with other sexually transmitted diseases.  The NGO Association for HIV (HUHIV) reported there were isolated incidents in which patient privacy had been violated.  HUHIV noted the number of violations and complaints had declined in the past several years.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provided for the right of workers to form and join independent unions of their choice, bargain collectively, and conduct legal strikes.  The law prohibited antiunion discrimination.  The law required reinstatement of workers terminated for union activity.Members of the military were not allowed to organize or to participate in a strike, while civilian employees of the military were permitted to organize but not to strike.  Workers could strike only at the end of a contract or in specific circumstances cited in the contract, and only after completing mediation.  Labor and management had to jointly agree on a mediator if a dispute went to mediation.  If a strike was found to be illegal, participants could be dismissed, and the union held liable for damages.The government and employers generally respected and enforced laws protecting freedom of association, the right to strike, and the right to collective bargaining.  Penalties were commensurate with similar violations for analogous crimes and were regularly applied against violators.																																				b. Prohibition of Forced or Compulsory Labor										See the Department of State’s annual Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				c. Prohibition of Child Labor and Minimum Age for Employment										The law prohibited all the worst forms of child labor, and there were no confirmed reports during the year of the worst forms of child labor.  The minimum age for the employment of children was 15.  Children between ages 15 and 18 who had not completed compulsory education could only work with prior approval from the government labor inspectorate and only if they would not suffer physically or mentally from the work.  Children younger than 15 could work only in special circumstances and with the approval of the Croatian Social Services.  The law prohibited workers younger than 18 from working overtime, at night, or in dangerous conditions, including but not limited to construction, mining, and work with electricity.  The government effectively enforced the law, and criminal penalties were generally commensurate with similar serious violations.  Penalties were regularly applied against violators.  There were isolated violations of the law, which involved children working overtime or past curfew and occurred mainly in the hospitality, retail, construction, and services industries.  Some Romani children were reportedly at risk of forced begging.																																				d. Discrimination (see section 6)																																														e. Acceptable Conditions of Work										Wage and Hour Laws:  The law established a national minimum wage slightly above the official poverty income level, provided for a standard workweek of 40 hours, and limited overtime to 10 hours per week and 180 hours per year.  The Retail Law amended during the year allowed retail stores to be open only 16 Sundays per year.Violations of wage, hour, and overtime laws were recorded in the construction, tourism, and hospitality sectors of the economy.Occupational Safety and Health:  The law established occupational safety and health (OSH) standards that were appropriate for the main industries.  Responsibility for identifying unsafe situations remained with OSH experts, not the worker.  Workers could remove themselves from situations that endangered health or safety without jeopardy to their employment.Violations of OSH standards were most frequently reported in the construction and tourism sectors.Wage, Hour, and OSH Enforcement:  The Labor Inspectorate effectively enforced minimum wage, overtime, and OSH laws.  Inspection was sufficient to enforce compliance, and penalties for violations were commensurate with those for similar violations and were enforced.  The Labor Inspectorate had 186 inspectors with authority to make unannounced inspections and initiate sanctions.In 2019, the statistics bureau assessed the informal economy’s size was approximately 6.5 percent of GDP but noted the data’s unreliability and lack of systematic approach to assessing it.  The informal sector was individualized, with persons, mostly in trades, working after hours.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																																																																				f. Transnational Repression																																																						g. Property Seizure and Restitution																																																						h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Protection of Refugees																																																						f. Status and Treatment of Internally Displaced Persons																																																						g. Stateless Persons																																																			Section 3. Freedom to Participate in the Political Process																																							Elections and Political Participation																																																			Section 4. Corruption in Government																Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Children																																																						Antisemitism																																																						Trafficking in Persons																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																						Persons with Disabilities																																																						Other Societal Violence or Discrimination																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination (see section 6)																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of European and Eurasian Affairs																								Croatia
- NATO Accession Anniversaries for Albania and Croatia Antony J. Blinken, Secretary of StateOn behalf of the United States, I congratulate Albania and Croatia on the 15th anniversary of your accession to NATO.Fifteen years ago, we celebrated the commitment your democracies made not only to the defense of our Alliance, but also to the defense of peace and prosperity across the region. Today, we honor your continued commitment to deter and to defend every inch of NATO territory, as we also defend our shared democratic values.On this anniversary, we remain proud to stand with you as Allies. As our Alliance continues to grow and adapt to address the evolving challenges of the future, NATO is stronger and more united than ever.
- Assistant Secretary Noyes Travels to Switzerland, Turkiye, and Croatia Office of the SpokespersonAssistant Secretary for the Bureau of Population, Refugees, and Migration Julieta Valls Noyes will travel to Switzerland, Turkiye, and Croatia October 8-18. In Geneva, Switzerland, Assistant Secretary Noyes will lead the U.S. delegation to the 74th Session of the UNHCR Executive Committee. In Ankara, Hatay, and Istanbul, Turkiye, and in Zagreb, Croatia, she will meet with regional stakeholders and government and PRM partners to discuss initiatives and responsibility sharing for refugees and asylum seekers.
- Expanding the Global Equality Fund and Protecting Human Rights with New International Partners Bureau of Democracy, Human Rights, and LaborArshelle CarterJust this last week, the United States welcomed New Zealand as the 19th government to the Global Equality Fund. Together with the private sector, the Global Equality Fund has dedicated over $100 million to more than 100 countries – providing advocates training, giving them tools to prevent violence, to prevent discrimination.In late June, Secretary Blinken announced New Zealand as the latest donor partner to join the Global Equality Fund (GEF), during a Pride Month event at the U.S. Department of State.  The GEF is a  public-private partnership comprised of like-minded governments and private-sector entities dedicated to advancing and defending the human rights and fundamental freedoms of lesbian, gay, bisexual, transgender, queer, and intersex (LGBTQI+) persons around the world.  Through the GEF, governments, companies, foundations, and NGOs work collaboratively to advance local initiatives spearheaded by human rights defenders and civil society organizations working to protect LGBTQI+ persons from violence and abuse, criminalization, discrimination, and stigma, and to empower local LGBTQI+ movements and people.The New Zealand announcement follows the joining of another key ally to the GEF.  In May, the Secretary held a signing ceremony alongside Spanish Foreign Minister José Manuel Albares, announcing Spain’s commitment to join the Global Equality Fund (GEF) as a donor partner.  Spain and New Zealand’s partnership strengthens the GEF’s ability to support human rights and representative democracies.  Secretary Blinken and Spanish Foreign Minister Albares participate in a signing ceremony announcing Spain’s commitment to join the Global Equality Fund as a donor partner on May 10, 2023. &nbsp;GEF programs expand citizen access to full civic and political participation.  Promoting and protecting the human rights of LGBTQI+ persons is a year-round commitment of the Department and critical for strengthening democracy.  GEF programs have made significant impacts globally.  In just the past two years, GEF programs have:trained and supported more than 6,600 human rights defenders globally;provided emergency assistance to more than 470 human rights defenders and more than 90 civil society organizations, helping to provide safety and security so they can continue their critical work; andimproved legal assistance for more than 2,300 individuals from low-income or marginalized communities through legal and victim’s aid.A telling example of the GEF’s impact is apparent in Botswana, where the sustained, flexible support of the GEF over 10 years contributed not only to the registration of the first LGBTQI+ organization in the country, but also to a historic decriminalization judgment.  Through a holistic approach, GEF support – coupled with efforts by other donors – enabled activists and partners to determine local priorities and to chart the best path forward.  The GEF supported projects to reduce stigma, discrimination, and violence by implementing an incremental strategy to decriminalize consensual same-sex sexual acts.  However, LGBTQI+ community needs do not end with major court decisions; the GEF will continue to fund community-driven movement building in Botswana and globally in pursuit of a safer, more equal world for all. Members of civil society in Botswana held public dialogues on the implications of decriminalizing same-sex relations. In November 2021, the Court of Appeal unanimously upheld the High Court’s decision to decriminalize. As it enters its second decade, the GEF remains a leading global force to:   Mobilize funding and resources that strengthen local LGBTQI+ movements and leadership that reflect the diversity of the community; Empower locally led and diverse movements leading efforts to mitigate violence and discrimination against LGBTQI+ persons; and    Connect donors, international and regional institutions, and LGBTQI+ civil society groups to ensure that voices of local communities are heard, authentically represented, and affirmed. The critical work of the GEF is not possible without the support and leadership of its partners: Argentina, Australia, Canada, Chile, Croatia, Denmark, Finland, France, Germany, Iceland, Italy, Montenegro, the Netherlands, New Zealand, Norway, Spain, Sweden, Uruguay, the Arcus Foundation, the John D. Evans Foundation, the MAC AIDS Fund, Deloitte LLP, Royal Bank of Canada, Hilton, Bloomberg L.P., Marriott International, the Thomson Reuters Foundation, and Out Leadership. About the Author:  Arshelle Carter is a 2022 Thomas R. Pickering Foreign Affairs Fellow and Summer 2023 intern in the Office of Global Programs in the Bureau of Democracy, Human Rights, and Labor. 
- Croatia HomeReportsBureau of Economic and Business Affairs2023 Investment Climate Statements&#8230;Croatia				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Investment Climate Statements: Croatia																																																																																												 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															1. Openness to, and Restrictions Upon, Foreign Investment																																																									Policies Towards Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Business Facilitation																																																																											Outward Investment																																																																																	2. Bilateral Investment and Taxation Treaties																																																									Bilateral Taxation Treaties																																																																																	3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Anti-Trust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																											Remittance Policies																																																																											Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																									Privatization Program																																																																																	8. Responsible Business Conduct																																																									Additional Resources																																																																											Climate Issues																																																																																	9. Corruption																																																									Resources to Report Corruption																																																																																	10. Political and Security Environment																															11. Labor Policies and Practices																															12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs																															13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																															14. Contact for More Information																																																					EXECUTIVE SUMMARY				Croatia will celebrate 10 years of European Union membership in July 2023, which has enhanced its economic stability and provided new opportunities for trade and investment. As of January 1, 2023, Croatia is a fully integrated member of the European Union, having adopted the euro as its currency and entered the Schengen zone. In addition to its EU membership, characteristics that make Croatia an attractive destination for foreign investment include a geostrategic location with diverse topography and temperate climate, well-developed infrastructure, and a well-educated multilingual workforce. Historically, the most promising sectors for investment in Croatia have been tourism, telecommunications, and pharmaceuticals and healthcare, but investment opportunities are growing in Croatia’s robust IT and clean energy sectors, with the government announcing plans to add more than 2500 MW of solar, wind, and geothermal energy to the grid by 2030. Croatia also offers visas for so-called “digital nomads” to work in Croatia for up to one year without having to pay local taxes.The Croatian economy achieved better-than-expected 6.3 percent GDP growth in 2022, double the growth rate of the EU.  The tourism sector, which accounts for as much as 20 percent of GDP, brought in €13.1 billion in revenue in 2022, exceeding the record-breaking 2019 season by almost 24 percent. Largely due to Russia’s aggression against Ukraine and the resulting energy crisis, average inflation in 2022 reached 10.2 percent. To help both businesses and households cope with increased costs of energy and food, the government implemented two economic relief packages consisting of subsidies and price caps totaling $4.5 billion and covering the period from October 1, 2022, to September 30, 2023. Unemployment in January 2023 was at 6.5 percent. The European Commission estimates the Croatian economy will grow 1.8 percent in 2023 and 1.9 percent in 2024, with inflation predicted to drop to 6.9 percent in 2023 and 1.6 percent in 2024.Croatia will receive nearly $30 billion in EU funding through 2030, including approximately $5.4 billion through the EU’s Recovery and Resilience Facility (RRF), which has the potential to provide a significant boost to the economy if the government directs the funds to productive activities that stimulate job creation and economic growth. The government intends to spend approximately 40 percent of RRF funds in support of climate-related and clean energy objectives, including initiatives to improve energy efficiency in public and private buildings, accelerate development of renewable sources of energy, modernize the electricity distribution and transmission grid to facilitate the integration of renewable energy sources, and promote greater investments in geothermal energy. OECD membership is one of the Croatian government’s top foreign policy priorities, and Croatia is hoping to complete its accession process by 2025.The Croatian government has taken positive steps to improve the business climate, including working on judicial reform, which investors have historically cited as one of the greatest barriers to investment. The economy remains burdened by underperforming state-owned enterprises, low regulatory transparency, and permit approval delays that impede project development, particularly in the energy sector. The COVID-19 pandemic accelerated digitalization efforts, which has helped decrease excessive bureaucratic procedures for both citizens and companies. Government reforms also seek to liberalize the services market, diversify capital markets, and improve access to alternative financing, and reform tax incentives for research and development. Croatia’s labor laws provide strong protections to workers and there are no risks to doing business responsibly in terms of labor laws and human rights. The government is willing to meet at senior levels with interested investors and to assist in resolving problems.Table 1: Key Metrics and RankingsMeasureYearIndex/RankWebsite AddressTI Corruption Perceptions Index202257 of 180https://www.transparency.org/en/cpi/2022/index/hrvGlobal Innovation Index202242 of 132 https://www.globalinnovationindex.org/HomeU.S. FDI in partner country ($M USD, stock positions)2022$295 mHost government, Croatian National Bankhttps://www.hnb.hr/en/statistics/statistical-data/rest-of-the-world/foreign-direct-investmentsWorld Bank GNI per capita2021$34,840https://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD																																					1. Openness to, and Restrictions Upon, Foreign Investment						    																																																Policies Towards Foreign Direct Investment										Croatia is generally open to foreign investment and the Croatian government continues to make efforts, through financial incentives, to attract foreign investors.  All investors, both foreign and domestic, are guaranteed equal treatment by law, with a handful of exceptions described below.  However, bureaucratic and political barriers remain.  A 2022 survey of businesses by the American Chamber of Commerce in Croatia indicated the main barriers to investment are inflation, soaring energy prices, and a lack of workers. More than half of survey respondents assessed that business conditions have improved in the past five years. Historically, investors have also cited an unpredictable regulatory framework, lack of transparency, judicial inefficiencies, lengthy administrative procedures, lack of structural reforms, and unresolved property ownership issues as barriers to investment.Croatia partnered with the World Bank on three business climate reform projects through the European Commission’s Directorate-General for Structural Reform Support to enhance business regulatory processes including introducing sustainable digital solutions, and assisting business regulators to exchange pertinent, integrated information to the private sector. The Ministry of Economy and Sustainable Development Directorate for Internationalization assists investors by offering services such as providing information on investment opportunities, offering support through all phases of business development, organizing tours of investment locations and arranging meetings, and promoting Croatia as an investment destination.  For more information, see:  Invest Croatia (gov.hr) .  The Strategic Investment Act fast-tracks and streamlines bureaucratic processes for large projects valued at $10.7 million or more on the investor’s behalf.  Various business groups, including the American Chamber of Commerce, Foreign Investors’ Council, and the Croatian Employers’ Association, are in dialogue with the government about ways to make doing business easier and to keep investment retention a priority.																																				Limits on Foreign Control and Right to Private Ownership and Establishment										Croatian law allows for all entities, both foreign and domestic, to establish and own businesses and to engage in all forms of remunerative activities.  Article 49 of the Constitution states all entrepreneurs have equal legal status.  However, the Croatian government restricts foreign ownership or control of services for a handful of strategic sectors:  inland waterways transport, maritime transport, rail transport, air to ground handling, freight-forwarding, publishing, ski instruction, and primary mandated healthcare.  Apart from these, the only regulatory requirements to market access involve occupational licensing requirements (architect, auditor, engineer, lawyer, veterinarian, etc.), about which detailed information can be found at  http://psc.hr/en/sectoral-requirements/ .  Business services such as consulting, marketing, creative industries, accounting (bookkeeping), and IT are not licensed. Relevant international comparison of the level of regulatory restrictiveness (including for Croatia and the U.S. which is represented by NY and TX) is available at  https://www.oecd.org/economy/reform/indicators-of-product-market-regulation/ . Over 90 percent of the banking sector is foreign owned.Croatia does not have a foreign investment screening mechanism, but the government designated the Ministry of Economy and Sustainable Development Internationalization Directorate as the “National Contact Point” for reviewing direct investments and responding to requests for information from EU Member States or the European Commission, per European Union Directive 2019/452.																																				Other Investment Policy Reviews										A. The Organization for Economic Cooperation and Development (OECD) last published an investment policy review for Croatia in June 2019:  https://www.oecd.org/publications/oecd-investment-policy-reviews-croatia-2019-2bf079ba-en.htm .The latest International Monetary Fund Article IV Staff Report from September 2021 includes a broad overview of economic and financial developments and is available at: https://www.imf.org/en/Publications/CR/Issues/2021/09/10/Republic-of-Croatia-2021-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-465424 The American Chamber of Commerce in Croatia publishes position papers on various topics related to the economy and investment climate, which can be found at:   https://www.amcham.hr/en/position-papers-d207 , including their latest survey findings at  AmCham predstavio rezultate godišnjeg Istraživanja poslovnog okruženja u Hrvatskoj – AmCham Croatia &#8211; Američka gospodarska komora u Hrvatskoj The 2022 European Semester Country Report assesses the country’s economic situation and outlook as well as implementation of the National Recovery and Resilience Plan:  2022 European Semester: Country Reports (europa.eu) .B. Prior to the COVID-19 pandemic, there were no civil society organizations that provided useful reviews of investment policy related concerns. In March 2020, the Voice of Entrepreneurs business association was formed to advocate for economic measures and reforms to stimulate private sector growth. The association has not yet published its policy recommendations, however its website features policy analysis of various government initiatives.  Glas Poduzetnika – Voice of Entrepreneurs 																																				Business Facilitation										The Croatian government offers two e-government options for online business registration,  www.hitro.hr  and  start.gov.hr , both of which provide 24-hour access.  Start.gov.hr provides complete business registration for a limited liability company (d.o.o.), simple limited company (j.d.o.o.), or general business, without any need to physically enter a public administration office.  The procedure guarantees a short turnaround on requests and provides deadlines by which the company can expect to be registered.  The Start.gov.hr procedure eliminates fees for public notaries, proxies, seals and stamps, and reduces court registration fees by 50 percent.  Hitro.hr also provides online services but maintains offices in 60 Croatian cities and towns for those who want to register their business in person.In 2023, the Global Enterprise Registration website ( www.GER.co ) rated Croatia’s business registration process 7 out of 10, unchanged from 2022.  The government pledged to improve conditions for business registration and continues to identify areas for removing burdensome regulations and processes.  Croatia’s business facilitation mechanism provides for equitable treatment to all interested in registering a business, regardless of gender or ethnicity.The United Nations Conference on Trade and Development (UNCTAD) provides an outline of investment facilitation proposals at:   https://investmentpolicy.unctad.org/country-navigator/53/croatia .																																				Outward Investment										Croatian foreign direct investment totals approximately $82.4 million in the United States, according to Croatian National Bank figures.  The government does not promote or incentivize outward investment.  Croatia has no restrictions on domestic investors who wish to invest abroad.																																												2. Bilateral Investment and Taxation Treaties						    																						Croatia has signed bilateral investment protection treaties or agreements with the following countries: Albania, Argentina, Azerbaijan, Belarus, Bosnia and Herzegovina, Cambodia, Canada, Chile, China, Cuba, Egypt, India, Indonesia, Iran, Israel, Jordan, Kuwait, Libya, Malaysia, Moldova, Mongolia, Montenegro, Morocco, North Macedonia, Oman, Qatar, Russia, San Marino, Serbia, South Korea, Switzerland, Thailand, Turkey, Ukraine, United Kingdom, United States, and Zimbabwe.As an EU member state, Croatia’s bilateral investment with other EU member states is governed by EU legislation.The U.S.-Croatian Bilateral Investment Treaty (BIT) has been in force since 2001. The full text of this and all other BITs can be found at:   https://investmentpolicy.unctad.org/international-investment-agreements/countries/51/croatia.  																										Bilateral Taxation Treaties										Croatia and the United States signed the Agreement for the Avoidance of Dual Taxation on December 7, 2022.  The treaty must still be ratified by the U.S. Senate and Croatian Parliament before entering into force. As an EU member, Croatia avoids double taxation with the other 26 member states and has dual taxation agreements with 40 other countries, which are listed at:  https://www.porezna-uprava.hr/bi/Stranice/Dvostruko-oporezivanje.aspx . In March 2022, in response to rising energy prices, the government passed a package of measures to permanently decrease the value added tax (VAT) in four sectors: gas and heat, food and agricultural products, hygiene items, and sports and cultural events. In addition to the permanent VAT decrease to 13 percent on gas and heating, the government approved an additional decrease to 5 percent for the duration of the current energy crisis. Croatia has several so-called non-tax “para-fiscal” or administrative fees, including levies for use of radio frequencies, monument upkeep, use of water, and use of forests.  The government has committed to simplifying the tax system to facilitate business operations and foreign investment.  The government offers a binding tax opinion procedure to investors that guarantees a fixed tax rate for a certain period and thus eliminates the risk of unanticipated changes to tax law that can affect investment costs.  For detailed information, see:   https://www.porezna-uprava.hr/bi/Stranice/Obvezuju%C4%87a-mi%C5%A1ljenja.aspx .Croatia is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and supported the Inclusive Framework’s October 2021 deal on the two-pillar solution to global tax challenges, including a minimum corporate tax.																																												3. Legal Regime						    																																																Transparency of the Regulatory System										Croatian legislation, which is harmonized with European Union legislation (acquis ommunautaire), affords transparent policies and fosters a climate in which all investors are treated equally. Nevertheless, bureaucracy and regulations can be complex and time-consuming, although the government is working to remove unnecessary regulations.  There are no informal regulatory processes, and investors should rely solely on government-issued legislation to conduct business.The Croatian Parliament promulgates national legislation, which is implemented at every level of government, although local regulations vary from county to county.  Members of Government and Members of Parliament, through working groups or caucuses, are responsible for presenting legislation.  Responsible ministries draft new legislation which the government first approves before parliamentary approval. The approved act becomes official on the date defined by Parliament and published in the National Gazette. Citizens maintain the right to initiate a law through their district Member of Parliament.  New legislation and changes to existing legislation which have a significant impact on citizens are made available for public commentary at:   https://esavjetovanja.gov.hr/ECon/Dashboard .  The Law on the Review of the Impact of Regulations defines the procedure for impact assessment, planning of legislative activities, and communication with the public, as well as the entities responsible for implementing the impact assessment procedure. The complete text of all legislation is published both online and in the National Gazette, available at:  www.nn.hr .Croatia adheres to international accounting standards and abides by international practices through the Accounting Act, which is applied to all accounting businesses.  Publicly listed companies must adhere to these accounting standards by law.The Croatian government does not promote or require companies to disclose ESG standards, but the Croatian Financial Services Supervisory Agency (HANFA) oversees implementation of the EU directive on sustainability-related disclosures in the financial sector. HANFA also publishes information regarding sustainable financing, and in March 2021 published guidelines to encourage companies listed on the Zagreb Stock Exchange to regularly publish sustainability best practices.Croatian courts are responsible for ensuring that laws are enforced correctly. If an investor believes that the law or an administrative procedure is not implemented correctly, the investor may initiate a case against the government at the appropriate court.  However, judicial remedies are frequently ineffective due to delays or political influence.The Enforcement Act defines the procedure for enforcing claims and seizures carried out by the Financial Agency (FINA), the state-owned company responsible for offering various financial services to include securing payment to claimants following a court enforced order.  FINA also has the authority to seize assets or directly settle the claim from the bank account of the person or legal entity that owes the claim. Enforcement proceedings are regulated by the Enforcement Act, last amended in 2022, and by laws regulating its execution, such as the Act on Implementation of the Enforcement over Monetary Assets, amended in 2020.  More detailed information on enforcement can be found at:  https://sudovi.hr/en/citizens/enforcement .  The legislation incorporates European Parliament and European Commission provisions for easily enforcing cross-border financial claims in both business and private instances.  Enforcement proceedings are conducted on the basis of enforcement title documents which specify the creditor and debtor, the subject, type, scope, and payment deadline. More information can be found at:   www.fina.hr .Public finances and debt obligations are transparent and available on the Ministry of Finance website, in Croatian only, at:   https://mfin.gov.hr/ .																																				International Regulatory Considerations										Croatia, as an EU member, transposes all EU directives.  Domestic legislation is applied nationally and – while local regulations vary from county to county —there is no locally-based legislation that overrides national legislation.  Local governments determine zoning for construction and therefore have considerable power in commercial or residential building projects.  International accounting, arbitration, financial, and labor norms are incorporated into Croatia’s regulatory system.Croatia has been a member of the World Trade Organization (WTO) since 2000. Croatia submits all draft technical regulations to the WTO, in coordination with the European Commission.																																				Legal System and Judicial Independence										The legal system in Croatia is civil and provides for ownership of property and enforcement of legal contracts.  The Commercial Company Act defines the forms of legal organization for domestic and foreign investors. It covers general commercial partnerships, limited partnerships, joint stock companies, limited liability companies and economic interest groupings.  The Obligatory Relations Act serves to enforce commercial contracts and includes the provision of goods and services in commercial agency contracts.The Croatian constitution provides for an independent judiciary.  The judicial system consists of courts of general and specialized jurisdictions.  Core structures are the Supreme Court, County Courts, Municipal Courts, and Magistrate/Petty Crimes Courts.  Specialized courts include the Administrative Court and High and Lower Commercial Courts.  The Constitutional Court determines the constitutionality of laws and government actions and protects and enforces constitutional rights. Municipal courts are courts of first instance for civil and juvenile/criminal cases.  The High Commercial Court is located in Zagreb and has appellate review of lower commercial court decisions.  The Administrative Court has jurisdiction over the decisions of administrative bodies of all levels of government.  The Supreme Court is the highest court in the country and, as such, enjoys jurisdiction over civil and criminal cases.  It hears appeals from the County Courts, High Commercial Court, and Administrative Court. Regulations and enforcement actions are appealable and adjudicated in the national court system.On January 1, 2021, the government established a High Criminal Court, headquartered in Zagreb, with responsibility for adjudication of second instance appeals against decisions made by County Courts in cases that involve criminal acts.The Ministry of Justice and Public Administration continues to pursue a court reorganization plan intended to increase efficiency and reduce the backlog of judicial cases.  The World Bank approved a $110 million loan to Croatia for the Justice for Business Project in March 2020, to support ICT infrastructure upgrades, court process improvements, and other reforms to judicial services to improve the business climate.  This initiative will last until 2024.  The government is undertaking additional reforms, but significant challenges remain in relation to land registration, training court officers, providing adequate resources to meet the court case load, and reducing the length of bankruptcy procedures.  Investors often face problems with unusually protracted court procedures, lack of clarity in legal proceedings, contract enforcement, and judicial efficiency.  Croatian courts have decreased the number of civil, criminal, and commercial cases and decreased the disposition time for resolution of those cases, however there is still a significant case backlog.  The last available European Commission Country Report for Croatia from 2020 assessed that the length of court proceedings continues to be a burden for business.																																				Laws and Regulations on Foreign Direct Investment										There are no specific laws aimed at foreign investment; both foreign and domestic market participants in Croatia are protected under the same legislation. The Company Act defines the forms of legal organization for domestic and foreign investors. The following entity types are permitted for foreigners: general partnerships; limited partnerships; branch offices; limited liability companies; and joint stock companies. The Obligatory Relations Act regulates commercial contracts.The Ministry of Economy and Sustainable Development Internationalization Directorate ( https://investcroatia.gov.hr/en/ ) facilitates both foreign and domestic investment. The directorate’s website offers relevant information on business and investment legislation and includes an investment guide.According to Croatian commercial law, significant or “strategic” business decisions must be approved by 75 percent of the company’s shareholders.  Minority investors with at least 25 percent ownership plus one share have what is colloquially called a “golden share,” meaning they can block or veto “strategic” decisions requiring a 75 percent vote. The law calls for minimum 75 percent shareholder approval to remove a supervisory board member, authorize a supervisory board member to make a business decision, revoke preferential shares, change company agreements, authorize mergers or liquidations, and to purchase or invest in something on behalf of the company that is worth more than 20 percent of the company’s initial capita. (Note: This list is not exhaustive.)																																				Competition and Anti-Trust Laws										The Competition Act defines the rules and methods for promoting and protecting competition.  In theory, competitive equality is the standard applied with respect to market access, credit and other business operations, such as licenses and supplies.  In practice, however, state-owned enterprises (SOEs) and government-designated “strategic” firms may still receive preferential treatment. The Croatian Competition Agency is the country’s competition watchdog, determining whether anti-competitive practices exist and punishing infringements. The Agency adheres to international norms and standards.  It has determined in the past that some subsidies to SOEs constituted unlawful state aid, however state aid issues are now handled by the Ministry of Finance.  Information on authorities of the Agency and past rulings can be found at:  www.aztn.hr .  The website includes a “call to the public” inviting citizens to provide information on competition-related concerns.																																				Expropriation and Compensation										Croatia’s Law on Expropriation and Compensation gives the government broad authority to expropriate real property in economic and security-related circumstances, including eminent domain. The Law on Strategic Investments also provides for expropriation for projects that meet the criteria for “strategic” projects.  However, it includes provisions that guarantee adequate compensation, in either the form of monetary compensation or real estate of equal value to the expropriated property, in the same town or city.  The law includes an appeals mechanism to challenge expropriation decisions by means of a complaint to the Ministry of Justice and Public Administration within 15 days of the expropriation order.  The law does not describe the Ministry’s adjudication process.  Parties not pleased with the outcome of a Ministry decision can pursue administrative action against the decision, but no appeal to the decision is allowed. There is not a history of alleged expropriations since Croatia declared independence in 1991. The government has not taken measures alleged to be indirect expropriation.Article III of the U.S.-Croatia Bilateral Investment Treaty (BIT) covers both direct and indirect expropriations.  The BIT bars all expropriations or nationalizations except those that are for a public purpose, carried out in a non-discriminatory manner, in accordance with due process of law, and subject to prompt, adequate, and effective compensation.																																				Dispute Settlement																										ICSID Convention and New York Convention						In 1998 Croatia ratified the Washington Convention that established the International Center for the Settlement of Investment Disputes (ICSID).  Croatia is a signatory to the 1958 New York Convention on the Acceptance and Execution of Foreign Arbitration Decisions. Croatia recognizes binding international arbitration, which may be defined in investment agreements as a means of dispute resolution.						Investor-State Dispute Settlement						The Croatian Law on Arbitration addresses both national and international proceedings in Croatia. Parties to arbitration cases are free to appoint arbitrators of any nationality or professional qualifications and Article 12 of the Law on Arbitration requires impartiality and independence of arbitrators.  Croatia is a signatory to the following international conventions regulating the mutual acceptance and enforcement of foreign arbitration: the 1923 Geneva Protocol on Arbitration Clauses, the 1927 Geneva Convention on the Execution of Foreign Arbitration Decisions, and the 1961 European Convention on International Business Arbitration.The Arbitration Act covers domestic arbitration, recognition and enforcement of arbitration rulings, and jurisdictional matters.  Once an arbitration decision has been reached, the judgment is executed by court order.  If no payment is made by the established deadline, the party benefiting from the decision notifies the Commercial Court, which becomes responsible for enforcing compliance. Arbitration rulings have the force of a final judgment but can be appealed within three months.In regard to implementation of foreign arbitral awards, Article 19 of the Act on Enforcement states that judgments of foreign courts may be executed only if they “fulfill the conditions for recognition and execution as prescribed by an international agreement or the law.”  More detailed requirements for executing foreign arbitral awards are set out in Article 40 of the Arbitration Act. The two main requirements that must be met are: 1) Croatian law must allow for the subject matter to be resolved by arbitration, and 2) recognizing and enforcing the foreign decision would not be contrary to Croatian public order. Moreover, an arbitral award will be recognized in Croatia only if it was not contested by one of the parties on any of the legally prescribed grounds and subsequently annulled by a court. If the arbitral award has not yet become binding for the parties, or if it has been annulled by a court of the country in which it was rendered or if its legal effects were delayed, then the Croatian courts will not recognize such an arbitral award.The Act on Enforcement provides for the collection of financial claims and seizures that result from a dispute by the Financial Agency (FINA), which is authorized to implement court decisions ordering enforcement.  FINA has the authority to instruct a bank to seize assets or directly settle the claim from the bank account of the debtor. FINA also has the authority to seize assets or directly settle the claim from the bank account of the person or legal entity that owes the claim. More information can be found at: https://www.fina.hr/Article Ten of the U.S.-Croatia BIT sets forth mechanisms for the resolution of investment disputes, defined as any dispute arising out of or relating to an investment authorization, an investment agreement, or an alleged breach of rights conferred, created, or recognized by the BIT with respect to a covered investment.Croatia has no history of extrajudicial action against foreign investors. There is currently one known case filed by a U.S. investor in Croatian courts in 2016, following an investment dispute with a municipality that began in the early 2000s. The investor has announced plans to file a claim at international arbitration courts, citing the U.S.-Croatia BIT as the basis for the action, if an agreement with the government cannot be reached. The Croatian government settled a second longstanding investment dispute with a U.S. investor in December 2021.						International Commercial Arbitration and Foreign Courts						To reduce the backlog of court cases in the Croatian judiciary, non-disputed cases are passed to public notaries, but before those decisions are final and enforceable, they can be contested, in which case procedures will be continued before the competent court. The local courts recognize and enforce foreign arbitral awards issued against the government.Both mediation and arbitration services are available through the Croatian Chamber of Economy. The Chamber’s permanent arbitration court has been in operation since 1965.  Arbitration is voluntary and conforms to UNCITRAL procedures.  The Chamber of Economy’s Mediation Center has been operating since 2002 – see: HYPERLINK &#8220;https://www.hok-cba.hr/centar-za-mirenje/&#8221;Centar za mirenje – Hrvatska odvjetnička komora (hok-cba.hr).There are no major investment disputes currently underway involving state-owned enterprises, other than a dispute between the Croatian government and a Hungarian energy company over implementation of a management rights agreement with a Croatian oil and gas company. There is no evidence that domestic courts rule in favor of state-owned enterprises.																										Bankruptcy Regulations										Croatia’s Bankruptcy Act corresponds to the EU regulation on insolvency proceedings and United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.  All stakeholders in the bankruptcy proceeding, foreign and domestic, are treated equally in terms of the Bankruptcy Act.  Bankruptcy is not considered a criminal act.The Financial Operations and Pre-Bankruptcy Settlement Act helps expedite proceedings and establish timeframes for the initiation of bankruptcy proceedings.  One of the most important provisions of pre-bankruptcy is that it allows a firm that has been unable to pay all its bills to remain open during the proceedings, thereby allowing it to continue operations and generate cash under financial supervision in hopes that it can recover financial health and avoid closure.The Commercial Court of the county in which a bankrupt company is headquartered has exclusive jurisdiction over bankruptcy matters. A bankruptcy tribunal decides on initiating formal bankruptcy proceedings, appoints a trustee, reviews creditor complaints, approves the settlement for creditors, and decides on the closing of proceedings.  A bankruptcy judge supervises the trustee (who represents the debtor) and the operations of the creditors’ committee, which is convened to protect the interests of all creditors, oversee the trustee’s work and report back to creditors.  The Act establishes the priority of creditor claims, assigning higher priority to those related to taxes and revenues of state, local and administration budgets.  It also allows for a debtor or the trustee to petition to reorganize the firm, an alternative aimed at maximizing asset recovery and providing fair and equitable distribution among all creditors.																																												4. Industrial Policies						    																																																Investment Incentives										The Investment Promotion Act (IPA), amended in 2021, offers incentives to investment projects in manufacturing and processing activities, development and innovation activities, business support activities and high added value services, as well as for employment.  The incentives are either tax refunds or cash grants.  After they are approved for implementation, they are not distributed immediately.  Those who receive cash grants are required to provide documentation proving they have fulfilled the criteria under which the request was granted for every year they have received approval for the incentive.  Tax refunds are provided to companies on an annual basis, based on information provided in tax returns.  Incentive measures can be combined or used individually up to the allowed maximum rate for the investment project. Also as of 2022, applicants for EU funds can apply for a maximum of 70 percent of investment costs for projects in the Pannonian and North Croatia region, 60 percent for areas along the Adriatic coast, and 55 percent for micro and small enterprises in the capital city Zagreb.Detailed information regarding all incentives and measures offered by the Republic of Croatia can be found at:  Incentive measures for investment projects – Invest Croatia (gov.hr) , including an investment incentives calculator, which can be found at:  Incentives calculator &#8211; Invest Croatia (gov.hr) .The Act on Strategic Investment Projects, amended in 2019, accelerates administrative procedures for projects deemed to be of strategic interest for Croatia.  The minimum amount for an investment to be considered strategic is approximately $11 million. Investments may also be treated as strategic if they are valued at $1.4 million or more and are implemented in underserved areas or on the islands, or are in the agriculture, fisheries, and forestry sector.  A guide and application materials for private investors interested in applying for status under the Act on Strategic Investment Projects is located at:  https://investcroatia.gov.hr/en/ . The government has traditionally issued bank guarantees for investments involving state owned enterprises.The Construction Act allows investors to secure permits through an e-licensing system. The investor may obtain a license valid for three years, which allows for a three percent change in the dimensions of the project from start to finish. The e-licensing system can be accessed at:   https://dozvola.mgipu.hr/ .In 2021, the government implemented a new aid scheme in the form of a premium power tariff to support electricity production from renewable sources. The Croatian Energy Market Operator (HROTE) publishes tenders for market premiums and tenders for guaranteed purchase prices of electricity from renewable sources. The amounts for premiums cannot be higher than the difference between the average production cost and the market price. To date, the incentives have proven successful, with the renewable sector growing rapidly and more than 11,000 MW of projects in the pipeline.																																				Foreign Trade Zones/Free Ports/Trade Facilitation										There are six operational duty-free zones in Croatia, of which two are land-based and four are at seaports.  Contact information for each of the zones can be found at:   https://www.croatianfreezones.org/primjer-stranice . Both domestic and foreign investors are afforded equal treatment in the zones.  Since Croatia’s entrance to the European Union, many of these zones have transitioned to industrial/business zones, which also offer investment incentives.  For more information regarding business zones go to:  https://investcroatia.gov.hr/zone/ . 																																				Performance and Data Localization Requirements										Croatian law does not impose performance requirements or mandate employment requirements for foreign or domestic investors, nor are senior management or board of directors’ positions mandated in private companies.  Regarding U.S. investors, Article VII of the U.S.-Croatia BIT prohibits mandating or enforcing specified performance requirements as a condition for a covered investment.Although procedures for obtaining business visas are generally clear, they can be cumbersome and time-consuming.  Foreign investors should familiarize themselves with the provisions of the Act on Foreigners.  Questions relating to visas and work permits should be directed to the Croatian Embassy or a Croatian Consulate in the United States.  The U.S. Embassy in Zagreb maintains a website with information on this subject at:   https://hr.usembassy.gov/entry-and-residence-requirements/.The amended Law on Foreigners also allows for digital nomads, defined as “a third country national who is employed or performs work through communication technology for a company or their own company that is not registered in the Republic of Croatia and does not work or provide services to employers in the Republic of Croatia.” Temporary stay for this purpose is granted for up to one year and cannot be extended.There are no government-imposed conditions for investment, nor are there “forced localization” policies for investors in terms of goods and technology. Foreign IT providers are not required to turn over source code or give access to surveillance.  There are no measures that prevent companies from freely transmitting customer or other business-related data outside the country’s territory.  There are no requirements for investors to maintain or store data within the territory of Croatia.																																												5. Protection of Property Rights						    																																																Real Property										The right to ownership of private property is enshrined in Croatia’s Constitution and in numerous acts and regulations.  The Ownership and Property Rights Act establishes procedures for foreigners to acquire property by inheritance as well as through legal transactions such as purchases, deeds, and trusts.  Croatia has a well-functioning banking system, which provides mortgages, while courts and cadaster offices handle property records.Real property ownership can be particularly challenging in Croatia owing to unique titling issues, separate ownership of buildings and the land on which they sit, reciprocity laws, special treatment of agricultural land and coastal regions, and zoning disputes.  Inheritance laws have led to situations in which some properties have claims by dozens of legal owners, some of whom are deceased and others who have emigrated and cannot be found. For all these reasons, investors should seek competent, independent legal advice in this area. The U.S. Embassy maintains a list of English-speaking attorneys ( https://hr.usembassy.gov/legal-assistance/). The Ministry of Economy and Sustainable Development Directorate for Internationalization helps those seeking information about property status in Croatia. For more information, see:   http://investcroatia.gov.hr/ .While the cadaster offices reliably maintain records, there is a portion of property in Croatia which has changed hands without appropriate documentation for various reasons, including avoidance of paying the title transfer fees or hiding wealth.  Historically, individuals and companies spent years in court attempting to resolve improper real estate documentation.  For this reason, potential buyers should seek to verify that the seller possesses clear title to both the land and buildings (which can be titled and owned separately).A foreign investor, incorporated as a Croatian legal entity, may acquire and own property without ministry approval, with the caveat that the purchase by any private party of certain types of land (principally land directly adjacent to the sea or in certain geographically designated areas) can be restricted to foreign investors for purposes of national security. To acquire property by means other than inheritance or as an incorporated Croatian legal entity, non-European Union (EU) member state citizens must receive approval from the Ministry of Justice and Public Administration, a process which can be lengthy due to the need for interagency clearance.  While EU citizens are afforded the same rights as Croatian citizens in terms of purchasing property, the right of all other foreigners to acquire property in Croatia is based on reciprocity.In the case of the United States, reciprocity exists on a state-by-state basis.  Croatia’s Ministry of Foreign and European Affairs has confirmed the existence of positive reciprocity for real estate purchases for residents of states listed in the table in the “S.A.D” line at:  https://mpu.gov.hr/informacije-o-uzajamnosti-u-stjecanju-prava-vlasnistva-nekretnina-izmedju-republike-hrvatske-i-drzava-izvan-europske-unije-republike-island-knezevine-lihtenstajn-kraljevine-norveske-te-svicarske-konfederacije/6186 .  Alternatively, for U.S. citizens from Arkansas, Hawaii, Kentucky, Minnesota, Mississippi, New Hampshire, Oklahoma and Vermont, property acquisition is only allowed with the condition of Croatian permanent residence.  Residents of other states could face longer waiting periods.Land ownership is distinct from ownership of buildings or facilities on the land.  Investors interested in acquiring state-owned companies from the Ministry of Physical Planning, Construction, and State Assets should seek legal advice to determine whether any deal also includes the right to ownership of the land on which a business is located, or merely the right to lease the land through a concession.Inconsistent regulations and restrictions on coastal property ownership and construction have also provided challenges for foreign investors in the past.  Croatian law restricts construction and commercial use within 70 meters of the coastline. It is important to verify zoning regulations and the existence of necessary building permits, as some newer structures in coastal areas have been subject to destruction at the owner’s expense and without compensation for not conforming to local zoning regulations.  Investors should be particularly wary of promises that structures built without permits will be regularized retroactively.  The Act on Legalization of Buildings and Illegal Construction is intended to resolve ambiguities regarding ownership of real estate.When purchasing land for construction purposes, potential buyers should determine whether the property is classified as agricultural or construction land.  The Agricultural Land Act provides for additional fees for re-zoning of up to 50 percent of the value of the land that is diverted from agriculture to construction purposes.  The Agricultural Land Agency works with local governments to review potential agricultural land purchases.  The sale of privately owned farmland is treated solely as the subject of a sales agreement between the parties.  Buyers of this type of land should still proceed with caution and be aware of potentially unresolved legacy issues with land ownership.  Land in Croatia is either publicly or privately owned and cannot be transferred to squatters solely based on physical presence.The Ministry of Justice and Public Administration and the State Geodetic Office co-manage the National Program for Resolving Land Registration and Cadaster Issues.  This program includes a One Stop Shop system, which is a single point for accessing land registry and cadaster data.  For more information see:   http://www.uredjenazemlja.hr/default.aspx?id=17  where information is available in English.Croatia worked with the World Bank on implementation of the Integrated Land Administration System project (ILAS) to modernize the land administration and management system.  Croatia continues to process a backlog of cases and potential investors should seek a full explanation of land ownership rights before purchasing property. There is no property tax in Croatia.Note that Croatia’s land records and several other land registry related services are available online at:  https://www.katastar.hr/en/#/ . Katastar.hr includes information on over 14 million pieces of land throughout the country and provides information in English.																																				Intellectual Property Rights										Croatian intellectual property rights (IPR) legislation includes the Patent Act amended in January 2020, the Trademark Act, the Industrial Design Act, the Act on the Geographical Indications of Products and Services, the Act on the Protection of Layout Design of Integrated Circuits, and the Act on Copyrights and Related Rights, which was entirely rewritten and adopted in 2021.  The Law on Protecting Unpublished Information with Market Value went into force in 2018.  These acts define the process for protecting and enforcing IPR in Croatia.  Texts of these laws are available on the website of the State Intellectual Property Office at:  https://www.dziv.hr/en/ip-legislation/national-legislation/ .  The Law on Fees for the Intellectual Property Sector was adopted in 2021 in addition to the Regulation on Fees in the Intellectual Property Sector and Expert Services of the State Intellectual Property Office. All laws are harmonized with EU legislation.The legal structure is strong. Enforcement is good; and infringement of rights and theft of intellectual property are not common, although there are isolated incidents.Croatian law enforcement officials keep public records of seized counterfeit goods.  According to a 2022 report from the Croatian Customs Office, officials stopped 505 international imports on the grounds of intellectual property rights violations, resulting in 717 procedures for the temporary detainment of goods for a total of 263,491 items.  Customs also issued 112 domestic violations, seized 67,539 counterfeit goods, and initiated 2 criminal proceedings against individuals involved in violation of trademarks.  Croatian customs officials and the Ministry of Interior work together to locate and seize infringing goods.Although some areas of IPR protection and enforcement remain problematic, Croatia is currently not included in the U.S. Trade Representative’s Special 301 Report or the Notorious Markets List.  Problem areas are piracy of digital media and counterfeiting.  Due to its geographic location, Croatia is also a transit route for various illegal products bound for other countries in the region.  There have been no problems reported with regard to registration of IPR in Croatia by American companies.  The American Chamber of Commerce maintains dialogue with the Croatian government on IPR issues.As a WTO member, Croatia is party to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).  Croatia is also a member of the World Intellectual Property Organization (WIPO) and party to the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty.  For a list of international conventions to which Croatia is a signatory, consult the State Intellectual Property Office’s website at:   http://www.dziv.hr/hr/zakonodavstvo/medjunarodni-ugovori/ .For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at:   http://www.wipo.int/directory/en/ .																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										Croatia’s securities and financial markets are open equally to domestic and foreign investment. Foreign residents may open non-resident accounts and may do business both domestically and abroad.  Specifically, Article 24 of the Foreign Currency Act states that non-residents may subscribe, pay in, purchase, or sell securities in Croatia in accordance with regulations governing securities transactions.  Non-residents and residents are afforded the same treatment in spending and borrowing.  These and other non-resident financial activities regarding securities are covered by the Foreign Currency Act, available on the central bank website (www.hnb.hr).Securities are traded on the Zagreb Stock Exchange (ZSE).  Regulations that govern activity and participation in the ZSE can be found (in English) at:   https://zse.hr/en/legal-regulations/234 .  There are three tiers of securities traded on the ZSE.  The Capital Markets Act regulates all aspects of securities and investment services and defines the responsibilities of the Croatian Financial Services Supervisory Agency (HANFA). More information can be found (in English) at:   http://www.hanfa.hr/regulations/capital-market/ .There is sufficient liquidity in the markets to enter and exit sizeable positions.  There are no policies that hinder the free flow of financial resources.  There are no restrictions on international payments or transfers, in accordance with IMF Article VIII.  The private sector, both domestic and foreign owned, enjoys open access to credit and a variety of credit instruments on the local market, available on market terms. The government issued its first public sale of national bonds on February 22, 2023.																																				Money and Banking System										Croatia adopted the euro as its official currency on January 1, 2023. By joining the Eurozone, the Croatian National Bank became a member of the European Central Bank Governing Council and will participate directly in forming European Union monetary policy. On March 22, 2023, Croatia became the 20th member of the European Stabilization Mechanism (ESM), an intergovernmental organization founded by Eurozone member states in 2012 aimed at avoiding and overcoming financial crises in member countries and maintaining long-term financial stability and prosperity.The banking sector is mostly privatized and is highly developed, competitive, resilient, and increasingly offering a diversity of products to businesses (foreign and domestic) and consumers.  The banking sector has traditionally been one of the strongest sectors of the Croatian economy.  French, German, Italian, and Austrian companies own over 90 percent of Croatia’s banks. As of December 31, 2022, there were 21 commercial banks and three savings banks, with assets totaling $80.82 billion.  The largest bank in Croatia is Italian-owned Zagrebacka Banka, with assets of $21.25 billion and a market share of 26.3 percent. The second largest bank is Italian-owned Privredna Banka Zagreb, with assets totaling $16.86 billion and 21 percent market share.  The third largest is Austrian Erste Bank, with assets totaling $14.49 billion and a 17.9 percent market share.  According to Croatian National Bank statistics, the non-performing loans (NPL) rate for Croatia was 3.0 percent in December 2022, down from 4.7 percent in 2021. The country has a central bank system and all information regarding the Croatian National Bank can be found at:   https://www.hnb.hr/en/ .In an extraordinary move facilitated by the Croatian National Bank, state-owned Croatian Postal Bank (HPB) bought Sberbank Croatia, a subsidiary of Sberbank Europe, on March 1, 2022, reportedly paying $11 million for Sberbank’s assets. The sale saved Sberbank Croatia from bankruptcy following the collapse of Sberbank Europe after Russia’s re-invasion of Ukraine. Prior to the sale, Sberbank Croatia had roughly 60,000 clients and represented 2.21 percent of total bank assets in Croatia. The bank now operates as Hrvatska Nova Banka.Non-residents are able to open bank accounts without restrictions or delays.  The Croatian government has not introduced or announced any intention to introduce block chain technologies in banking transactions.																																				Foreign Exchange and Remittances										The Croatian Constitution guarantees the free transfer, conversion, and repatriation of profits and invested capital for foreign investments. Article VI of the U.S.-Croatia Bilateral Investment Treaty (BIT) establishes protection for American investors from government exchange controls. The BIT obliges both countries to permit all transfers relating to a covered investment to be made freely and without delay into and out of each other’s territory.  Transfers of currency are additionally protected by Article VII of the International Monetary Fund (IMF) Articles of Agreement ( http://www.imf.org/External/Pubs/FT/AA/index.htm#art7 ).The Croatian Foreign Exchange Act permits foreigners to maintain foreign currency accounts and to make external payments.  The Foreign Exchange Act also defines foreign direct investment (FDI) in a manner that includes use of retained earnings for new investments/acquisitions, but excludes financial investments made by institutional investors such as insurance, pension, and investment funds.  The law also allows Croatian entities and individuals to invest abroad.  Funds associated with any form of investment can be freely converted into any world currency. Any risk of currency devaluation or significant depreciation is generally low.																																				Remittance Policies										No limitations exist, either temporal or by volume, on remittances.  The U.S. Embassy in Zagreb has not received any complaints from American companies regarding transfers and remittances.																																				Sovereign Wealth Funds										Croatia does not own any sovereign wealth funds.																																												7. State-Owned Enterprises						    																						There are currently a total of 52 state-owned enterprises (SOEs) that are either wholly state-owned or in which the state has a majority stake.  Of these, the Ministry of Physical Planning, Construction, and State Assets manages 38 companies identified as “strategic,” including 19 wholly state-owned enterprises, 12 majority state-owned companies, six listed as “legal entities of special interest,” and one with less than 50 percent state ownership. The Center for Restructuring and Sale (CERP) manages the other 14, of which eight are wholly owned and six are majority state-owned.These SOEs cover a range of sectors including infrastructure, energy, real estate, finance, transportation, and utilities.  A 2021 report on the SOE’s managed through the Ministry of Physical Planning and Construction (published in December 2022), shows that SOEs employed a total of 47,015 people and had net revenues totaling $7.1 billion and assets of $32.8 billion.  The government has traditionally appointed members of SOE management and supervisory boards, making the companies very susceptible to political influence. The OECD has recommended implementing changes to appoint SOE company leadership through open application processes. The Croatian government announced that the Ministry of Finance would subsume the Office for Managing State Owned Entities, currently located within the Ministry of Physical Planning, Construction and State Assets, by the end of 2023.In addition to 14 wholly or majority state-owned enterprises, CERP also oversees 206 companies in which the state has a minority ownership stake. By statute, CERP must divest the state from these companies. Changes to the CERP portfolio can be followed at:  http://www.cerp.hr/portfelj-cerp-a/dionice-i-poslovni-udjeli/114 . The government passed a Strategy for Management of State-Owned Assets for the Period of 2019-2025, which defines the sale or repurposing of state-owned assets and the sustainable, economic, and transparent management and disposal of assets owned by the Republic of Croatia. Lists of SOEs are published in annual reports on legal entities found at:  https://mpgi.gov.hr/o-ministarstvu/djelokrug-50/drzavna-imovina-6188/6188  and on CERP’s website at:  http://www.cerp.hr/portfelj-cerp-a/dionice-i-poslovni-udjeli/114 .County and city level governments have majority ownership in approximately 500 companies, mostly utilities; however, exact data is not available.  Historically, there has been slow progress in privatization of locally owned utility companies, which have occasionally served as political safe havens for ruling parties. Croatia’s National Recovery and Resilience Plan includes SOE reform targets such as reducing the number of strategic companies managed by the Ministry of Physical Planning and Construction, as well as creating a new legal framework for SOEs which incorporates OECD recommendations and directs the sale of 90 SOEs from the CERP list by the second half of 2026.The Corporate Governance Code is available at:  https://zse.hr/en/corporate-governance-code/1780 .  The government is working to align national legislation with OECD Guidelines on Corporate Governance of SOEs. The OECD launched a corporate governance review in June 2021, which identified 11 recommendations for reform that should contribute to improved SOE corporate governance. The government is currently implementing an action plan to implement these OECD recommendations.SOEs competing on the domestic market operate in accordance with commercial considerations, on terms that other market participants would accept, and provide non-discriminatory treatment in their purchase and sale of goods or services. Historically there were incidents in which SOEs were involved in corrupt acts or preferential treatment towards certain suppliers, usually politically motivated, however reports of these cases have subsided in the last ten years.SOEs that compete on the domestic marketplace rarely compete internationally and there is no information regarding SOE investment in the United States.																										Privatization Program										Croatia continues to slowly pursue privatization of SOEs.  There are no restrictions against foreigners participating in privatization tenders.  The bidding process is public, tenders are published online, and terms are clearly defined in tender documentation; however, problems with bureaucracy and timely judicial remedies can significantly slow progress on projects.  There is no privatization timeline; however, the government views privatization as a means to reduce the budget deficit and increase output.  The Ministry of Physical Planning, Construction, and State Assets drafted a National Strategy for Management of State Owned Property 2019-2025 (only in Croatian:  https://narodne-novine.nn.hr/clanci/sluzbeni/2019_10_96_1863.html ). Tenders are in Croatian and can be found at:  https://mpgi.gov.hr/natjecaji/13135 .																																												8. Responsible Business Conduct						    																						There is a general awareness of societal expectations regarding responsible business conduct which is regulated by law.  The Croatian Financial Services Supervisory Agency has established a Corporate Governance Code of Ethics for all Zagreb Stock Exchange (ZSE) participants, and the Company Act, Audit Law, Accounting Law, and Credit Institutions Law are the sources for corporate governance provisions.  Publicly listed companies are required to upload their annual corporate governance reports on the ZSE website.  The Governance Code lays out guidelines for ensuring transparency of business operations, avoidance of conflicts of interest, efficient internal control, and effective division of responsibilities. Respecting and protecting human rights is prescribed by the Constitution of the Republic of Croatia and violations of these rights are treated through the penal system. Businesses are obligated to maintain and implement the highest standards of human rights.No high profile or controversial instances of private sector labor rights violations have occurred in Croatia.  There were no claims during the last five years by indigenous or other communities that a government entity improperly allocated land or natural resources. Forced labor, forced evictions of indigenous peoples, or arrests of and violence against environmental defenders are not permitted by law. The government effectively implements and enforces domestic laws to maintain consumer and environmental protection and avoid infringement of human and labor rights. Sometimes these regulations exceed EU standards.  Croatia implements all EU legislation which requires a due diligence approach to responsible business conduct.  Labor unions are considered watchdogs for responsible business conduct and draw attention to issues they find to be impeding on labor, environmental, or consumer rights in the business sector. In terms of security, the government employs private security companies for security of buildings. Security for defense purposes is handled by Croatian state authorities, such as the army or police forces. Croatia became a signatory of the Montreaux Document on Private Military and Security Companies in May 2013. Croatia is not currently a supporter of the International Code of Conduct for Private Security Service Providers, nor a member of the International Code of Conduct for Private Security Service Providers Association.Although Croatia is not yet an OECD member, Croatia supports the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas and considers minerals from conflict affected areas to be illegal.  Croatia does not participate in the Extractive Industry Transparency Initiative.  Various laws related to forest and water management, concessions, and environmental protection are implemented in extractive and mining businesses to maintain high environmental and human rights standards.  All procedures for mining or extraction tenders are publicly available and transparent.																										Additional Resources										Department of StateCountry Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/);Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/); andGuidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)Department of the TreasuryOFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions ).Department of LaborFindings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings );List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods );Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab ); andComply Chain ( https://www.dol.gov/ilab/complychain/ ).																																				Climate Issues										Croatia has several climate-related strategies including a “Low Carbon Development Strategy 2030-2050,” “Energy Development Strategy 2030-2050,” an “Integrated National Energy and Climate Plan,” and a “Climate Change Adaptation Strategy.” The Climate Change Adaptation Strategy focuses on the vulnerability of eight key sectors; water resources, agriculture, forestry, fisheries, biodiversity, energy, tourism, and health, and two cross-cutting thematic areas; spatial planning and risk management. A total of 83 climate change adaptation measures are defined for all the sectors. Croatia has committed to reach net-zero carbon emissions by 2050 and joined the Global Methane Pledge. In addition, Croatia’s National Recovery and Resilience Plan, under which the country will have access to more than $5 billion in EU funds, has a strong focus on climate-related reforms and projects. Some of the proposed projects are electricity grid modernization to facilitate increased renewable energy source connections, greater co-financing opportunities for alternative fuel vehicles and investments in hydrogen-powered heavy vehicles, and renovation and reconstruction of buildings and homes to improve energy efficiency.																																												9. Corruption						    																						Croatia has a suitable legal framework, including laws and penalties, to combat corruption.  The Criminal Code and the Criminal Procedure Act define the tools and sanctions available to the investigative authorities to fight corruption and both acts provide for asset seizure and forfeiture.  In terms of a corruption case, where the defendant has assets that are determined to be disproportionate to his/her lawful income, it is presumed by law that the defendant’s property was acquired through criminal means. In such cases, the onus is on the defendant to prove the legal origin of the assets in question.  Financial gain, if it is in possession of a third party in such cases can also be confiscated if it is determined the gain was not acquired in good faith. However, the good faith principle does not apply to a spouse, relatives, or family members.  Croatian laws and provisions regarding corruption apply equally to domestic and foreign investors, to public officials, their family members, and political parties.  The Croatian Criminal Code covers such acts as trading in influence, abuse of official functions, bribery in the private sector, embezzlement of private property, money laundering, concealment, and obstruction of justice.  The Act on the Office for the Suppression of Corruption and Organized Crime provides broad authority to prosecute tax fraud linked to organized crime and corruption cases.Croatia is implementing the Anti-Corruption Strategy for 2021-2030 to strengthen existing anti-corruption administrative and legal mechanisms. It also aims to identify new, systemic solutions to raise awareness of the harmful effects of corruption, increase citizen involvement, and utilize civil society and the media as indispensable institutional partners to prevent and fight corruption. Croatian prosecutors have secured corruption convictions and launched investigations against several high-level former government officials, former ministers, other high-ranking officials, and senior managers from state-owned enterprises, although many such convictions have later been overturned.The Law on Public Procurement is harmonized with EU legislation and prescribes transparency and fairness for all public procurement activities.  Government officials use public speeches to encourage ethical business.  The Croatian Chamber of Economy created a Code of Business Ethics in which it encourages all companies in Croatia to abide by, but it is not mandatory. The Code can be found in Croatian at:   https://www.hgk.hr/documents/kodeksposlovneetikehrweb581354cae65c8.pdf .Additional laws for the suppression of corruption include: the State Attorney’s Office Act; the Public Procurement Act; the Act on Procedure for Forfeiture of Assets Attained Through Criminal Acts and Misdemeanors; the Budget Act; the Conflict of Interest Prevention Act; the Corporate Criminal Liability Act; the Money Laundering Prevention Act; the Witness Protection Act; the Personal Data Protection Act; the Right to Access Information Act; and the Act on Civil Services. Other regulations include the Code of Ethics for Civil Servants and the Code of Judicial Ethics. Whistleblowers are protected by the Law on the Protection of Irregularities, as well as by provisions in the Labor Law and the Civil Servants Act.Croatia has requested to join the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Croatia is a member and currently chairs the Group of States Against Corruption (GRECO), a peer monitoring organization that allows members to assess anticorruption efforts on a continuing basis.  Croatia has been a member of INTERPOL since 1992.  Croatia cooperates regionally through the Southeast European Co-operative Initiative (SECI), the Southeast Europe Police Chiefs Association (SEPCA), and the Regional Anti-Corruption Initiative (RAI).  Croatia is a member of Eurojust, the EU’s Judicial Cooperation Unit, and is a signatory to the UN Convention Against Corruption.Croatian legislation provides protection for NGOs involved in investigating or drawing attention to corruption.  GONG, a non-partisan citizens’ organization founded in 1997, which also acts as a government watchdog, monitors election processes, educates citizens about their rights and duties, encourages communication between citizens and their elected representatives, promotes transparency within public services, manages public advocacy campaigns, and assists citizens in self-organizing initiatives.  A new anti-corruption association, Udruga Pomak, was formed by a group of prominent whistleblowers to advocate for greater whistleblower protections.  Even though the law provides for the protection of whistleblowers, in practice there are still issues.The business community has identified corruption in the healthcare and construction sectors, as well as lack of transparency in the public procurement process as obstacles to foreign investment.																										Resources to Report Corruption										The State Prosecutor’s Office for the Suppression of Corruption and Organized Crime (USKOK) is tasked with directing police investigations and prosecuting cases.  USKOK is headquartered in Zagreb, with offices in Split, Rijeka, and Osijek.  In addition, the National Police Office for the Suppression of Corruption and Organized Crime (PN-USKOK) conducts corruption-related investigations and is based in the same cities.  Specialized criminal judges in the four largest county courts in Zagreb, Rijeka, Split, and Osijek are responsible for adjudicating corruption and organized crime cases.  The cases receive high priority in the justice system, but still encounter excessive delays and lengthy proceedings.  The Ministry of Interior, the Office for Suppression of Money Laundering, the Tax Administration, and the Anti-Corruption Sector of the Ministry of Justice and Public Administration all have a proactive role in combating and preventing corruption.Contact information below:Office of the State Attorney of the Republic of CroatiaGajeva 30, 10000 Zagreb, Republic of Croatia+385 1 4591 855tajnistvo.dorh@dorh.hrOffice for the Suppression of Corruption and Organized CrimeVlaska 116, 10000 Zagreb, Republic of Croatia+385 1 2375 654tajnistvo@uskok.dorh.hrGONGVodnikova cesta 4. Zagreb 10 000., 10000 Zagreb, Republic of Croatia+385 1 4825 444gong@gong.hr																																												10. Political and Security Environment						    																						The risk of political violence in Croatia is low.  Following the breakup of Yugoslavia and the subsequent wars in the region, Croatia has emerged as a stable, democratic country and is a member of NATO and the EU.  Relations with neighboring countries are generally fair and improving, although some disagreements regarding border demarcation and residual war-related issues persist. On January 1, 2023, the Republic of Croatia became a member of the Schengen area. Persons entering Croatia from other EU member states no longer need to pass through immigration or present identification upon entry.																																		11. Labor Policies and Practices						    																						Croatia has an educated, highly skilled labor force compared to regional averages, but labor remains relatively low cost compared to the entire EU.  Employment is regulated by the constitution, international conventions, treaties, labor law, collective agreements, and employment agreements. A list of International Labor Organization conventions implemented into labor legislation can be found at: https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:11200:0::NO::P11200_COUNTRY_ID:102700 . There are no recent reliable reports on the size of the grey economy, but estimates range from 10 percent to 35 percent of GDP.  According to the latest report available from the Croatian Employment Agency, unemployment in December 2022 was 6.8 percent, down from 7.4 in December 2021. According to the latest available statistics from the Croatian Bureau of Statistics, of the total number of employed persons in February 2023, 47.6 percent were women and 52.4 percent were men.The Labor Law governs employment and prescribes general labor regulations.  Among other items, the Labor Law prohibits discrimination, defines various types of leave including maternity, and provides terms for striking, salaries, and other labor related issues.  The government is committed to increasing jobs, especially for youth, through various programs funded by the EU.  Companies report that Croatia’s labor law makes it relatively expensive to hire and dismiss employees in comparison to the United States and other countries in Europe. The government amended the Trade Law in early 2023 to mandate that retail shops will only be able to operate 16 Sundays, of the company’s choosing, during the year.There are currently labor shortages reported in the construction, food production, tourism, and hospitality sectors.  The Law on Foreigners was amended in November 2020 to abolish employment quotas for foreign workers. In 2022, Croatia registered 124,121 foreign workers, up 86 percent from 2020. Foreign or migrant workers do not play a significant role in any sector yet, but there are growing numbers of foreign workers in the construction, tourism, and hospitality sectors.  Croatia continues to experience a brain drain, with an estimated 60,000 Croatians (mostly young and educated) leaving the country annually.  The government has indicated, however, that a significant number of Croatians returned to Croatia during the COVID-19 pandemic as jobs became scarce in other EU countries. The Government maintains the  www.mjere.hr  website with information regarding measures to keep workers in Croatia.  These measures are divided into nine categories and include financial support for employers and the self-employed, as well as for training and seasonal work programs.  A large portion of the funding is intended to support active employment, while a portion will fund specialized programs for groups that have a hard time entering the labor market.Croatian law does not require the hiring of Croatian nationals.  Employers are bound by law to offer severance pay to individuals laid off due to restructuring or down-sizing.  The labor law defines the conditions and amounts of severance pay.  To be eligible for severance: 1) the employer must terminate the employee, 2) the termination must not be the result of behavioral issues, and 3) the employee must have been employed for two consecutive years.  The Croatian Employment Agency provides unemployment payments for those laid off due to economic reasons.Labor laws are strictly implemented and not waived to retain or attract investment.  Collective bargaining is a common tool, mostly implemented by unions, which overwhelmingly represent workers associated with government and state-owned enterprises.  The  http://baza.kolektivni-ugovori.info  website provides an updated database of collective agreements signed to date. The Labor Law provides a mechanism for resolving collective and individual labor disputes by arbitration. No appeal is permitted against an arbitration award.																																		12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs						    																						Development projects in Croatia may be eligible for International Development Finance Corporation (DFC) political risk insurance.  Additionally, Croatia is a member of the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA). For more information see:  www.miga.org .																																		13. Foreign Direct Investment and Foreign Portfolio Investment Statistics						    																						Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country Statistical Source*USG or International Statistical SourceUSG or International Source of Data:BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountHost Country Gross Domestic Product (GDP) ($M USD)2022$65,8452021$56.8www.worldbank.org/en/country https://www.worldbank.org/en/country/croatia/overviewForeign Direct InvestmentHost Country Statistical Source*USG or International Statistical SourceUSG or International Source of Data:BEA; IMF; Eurostat; UNCTAD, OtherU.S. FDI in partner country ($M USD, stock positions)2022$632N/AN/ABEA data available athttps://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data Host country’s FDI in the United States ($M USD, stock positions)2022$82,404N/AN/ABEA data available athttps://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data Total inbound stock of FDI as % host GDP202169.4%N/AN/AUNCTAD data available athttps://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Country-Fact-Sheets.aspx   *GDP for 2021 estimate and FDI   for Q1-Q3 2022 at:  www.hnb.hr  Note:  U.S. Bureau of Economic Analysis do not have GDP or FDI data available for 2022 at time of publishing.Table 3: Sources and Destination of FDI Direct Investment From/in Counterpart Economy DataFrom Top Five Sources/To Top Five Destinations (US Dollars, Millions)Inward Direct InvestmentOutward Direct InvestmentTotal Inward$45,688100%Total Outward$4,528100%The Netherlands$7,17115.7%Slovenia$1,89141.8%Austria$5,93912.9%Bosnia Herzegovina$1,33829.5%Luxembourg$4,88210.7%Serbia$97721.6% Germany$4,5479.9%Switzerland$3156.9% Italy$4,3949.6%Montenegro$2445.4%“0” reflects amounts rounded to +/- USD 500,000.*FDI at:  www.hnb.hr    for Q1-Q3 2020																																		14. Contact for More Information						    																						For more information on the investment climate in Croatia, you may contact:Political-Economic SectionU.S. Embassy ZagrebUlica Thomasa Jeffersona 2, 10010 ZagrebTel (+385) 1 661-2200E-mail:  InvestmentClimateCroatia@state.gov																										    							View report by:																				Albania											Algeria											Andorra											Angola											Antigua and Barbuda											Argentina											Armenia											Australia											Austria											The Bahamas											Azerbaijan											Bahrain											Bangladesh											Barbados											Belarus											Belgium											Belize											Benin											Bolivia											Bosnia and Herzegovina											Botswana											Brazil											Brunei											Bulgaria											Burkina Faso											Burma											Burundi											Cabo Verde											Cambodia											Cameroon											Canada											Chile											China											Colombia											Costa Rica											Côte d’Ivoire											Croatia											Cyprus											Czechia											Democratic Republic of the Congo											Denmark											Djibouti											Dominica											Dominican Republic											Ecuador											Egypt											El Salvador											Equatorial Guinea											Eritrea											Estonia											Eswatini											Ethiopia											Fiji											Finland											France and Monaco											The Gambia											Gabon											Georgia											Germany											Ghana											Greece											Grenada											Guatemala											Guinea											Guyana											Haiti											Honduras											Hong Kong											Hungary											Iceland											India											Indonesia											Iraq											Ireland											Israel											Italy											Jamaica											Japan											Jordan											Kazakhstan											Kenya											Kosovo											Kyrgyz Republic											Laos											Latvia											Lebanon											Lesotho											Liberia											Libya											Lithuania											Luxembourg											Macau											Madagascar											Malawi											Malaysia											Maldives											Mali											Malta											Marshall Islands											Mauritania											Mauritius											Mexico											Micronesia											Moldova											Mongolia											Montenegro											Morocco											Mozambique											Namibia											Nepal											Netherlands											New Zealand											Nicaragua											Niger											Nigeria											North Macedonia											Norway											Oman											Pakistan											Palau											Panama											Papua New Guinea											Paraguay											Philippines											Peru											Poland											Portugal											Qatar											Republic of the Congo											Romania											Rwanda											Saint Kitts and Nevis											Saint Lucia											Saint Vincent and the Grenadines											Samoa											Sao Tome and Principe											Saudi Arabia											Senegal											Serbia											Seychelles											Sierra Leone											Singapore											Slovakia											Slovenia											Somalia											South Africa											South Korea											South Sudan											Spain											Sri Lanka											Suriname											Sweden											Switzerland											Taiwan											Tajikistan											Tanzania											Thailand											Timor-Leste											Togo											Trinidad and Tobago											Tunisia											Türkiye											United Arab Emirates											Uganda											Ukraine											United Kingdom											Uruguay											Uzbekistan											Vietnam											West Bank and Gaza											Zambia											Zimbabwe															Build A Custom Report																						On This Page				search													>																										EXECUTIVE SUMMARY																1. Openness to, and Restrictions Upon, Foreign Investment																																							Policies Towards Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Business Facilitation																																																						Outward Investment																																																			2. Bilateral Investment and Taxation Treaties																																							Bilateral Taxation Treaties																																																			3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Anti-Trust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																						Remittance Policies																																																						Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																							Privatization Program																																																			8. Responsible Business Conduct																																							Additional Resources																																																						Climate Issues																																																			9. Corruption																																							Resources to Report Corruption																																																			10. Political and Security Environment																11. Labor Policies and Practices																12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs																13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																14. Contact for More Information																						Tags																					Bureau of Economic and Business Affairs																								Bureau of European and Eurasian Affairs																								Croatia
- Transatlantic Leadership Network Geoffrey R. Pyatt, Assistant SecretaryBureau of Energy ResourcesAssistant Secretary Pyatt:  Thank you to the Transatlantic Leadership Network and Sasha for having me here at this event.I was saying to my fellow guests as we were walking into the Library of Congress building this morning, this is arguably the most spectacular building in all of Washington, DC, so it’s really nice to be able to meet in this setting.And let me also say what a privilege it is for me to have this opportunity to engage with so many of the Energy Ministers, the Deputy Prime Ministers who are here from the Western Balkans for this important event today.  I, of course, lived in the neighborhood for six years as U.S. Ambassador to Greece and had the opportunity in that period to get a good appreciation for both the challenges that the Western Balkans faces but also the tremendous opportunities, especially to deepen an already important partnership with the United States on the issues that I’m responsible for in energy security, energy transition, and climate.There are also all of the related issues where American companies have sought to be strong partners, for instance in terms of technology, in terms of smart cities, all of the work that I did as Ambassador in Greece working with our Greek partners, especially in Thessaloniki, and to build on the famous Thessaloniki vision which still informs our approach to these issues.Of course the other major issue that shaped my last months in Athens and has been the defining issue for my tenure as Assistant Secretary for Energy Resources is Russia’s brutal, illegal invasion of Ukraine that began more than 500 days ago now.In addition to the horrific human cost that Russia’s invasion has inflicted &#8212; the suffering, the destruction of property, the targeting of civilian infrastructure &#8212; the invasion of Ukraine has had a dramatic impact on global and in particular European energy markets.  By weaponizing Russia’s oil and gas resources Putin has ensured that Russia will never again be viewed as a reliable energy supplier.  That fact alone is going to have a dramatic impact on how global energy markets behave in the years ahead.But it has also perversely had the impact of accelerating the energy transition, in particular in Europe where governments have seen more clearly than ever before the risks of dependency on a single source of supply for fossil fuel and are therefore doubling down on their commitment to renewable energy for geopolitical and security reasons along with the obvious economic and environmental benefits.The Biden administration has put forward two guiding principles in carrying out our foreign policy.  The first, work with allies and partners as closely as possible and build on those alliance relationships.  I think you saw that very dramatically in President Biden’s approach yesterday to the Vilnius summit.The other, of course, is partnership with the private sector, including our private sector energy companies.  And my team in the State Department’s Bureau of Energy Resources apply these principles every day, including through the very intensive work that the ENR team does with American companies operating in the energy space.I want to be very clear.  If there’s one message I can leave with you today it’s that the Bureau of Energy Resources and I personally are committed to continuing our very strong partnership with the Western Balkans on clean energy and energy security.  This includes both diversification away from Russian fossil fuels and the rapid and responsible push for decarbonization, particularly through the immediate phasing out of coal and the increasing deployment of renewable energy where the Western Balkans has so much potential on wind, on solar, on geothermal where the United States wishes to be a strong partner.But we also recognize that the Western Balkans is a region that represents challenges for historic and political reasons, for geographic reasons, for issues like water scarcity and leveraging your hydro resources, and because many of the countries of the Western Balkans are themselves developing countries that have been highly vulnerable to the external shocks that Vladimir Putin has induced on the price of fertilizer, the price of energy, the availability of basic commodities.  But we are very, very committed to our partnership with your region.Since 2021, for instance, the ENR Bureau has provided assistance to support the commercialization of geothermal energy and to catalyze private sector investment in geothermal projects across the Western Balkans.  And of course as we move globally on the energy transition you are seeing a dramatically increased demand for the clean energy minerals that will be so essential to driving that electrified transformational economy &#8212; cobalt, lithium, copper, nickel.  For this reason, the ENR Bureau’s mineral governance program is going to continue to work with the countries of the Balkans to promote new mining investment by helping to improve mining sector governance and the legal frameworks to attract the investment that will help to grow the region’s output of critical minerals.We are convinced that these reform measures will accelerate progress towards renewable energy goals by increasing the supply of the minerals that will be so important to the energy transition.We also of course are strongly committed to our partnership with the European Union on these issues.  We very much support the EU’s green agenda for the Western Balkans and we are working to build complementarity between our programmatic initiatives and those of the European Union including with our development tool kit &#8212; institutions like the International Development Finance Corporation, the Export-Import Bank, the work that you are doing under the Mineral Security Partnership to help strengthen transatlantic critical mineral supply chains.Our immediate priority is to help the Western Balkans get through this next winter as we did through the previous.  Demonstrating to Putin that his efforts to weaponize energy against the countries of Europe and NATO will not be successful.  We also recognize that we have opportunities as we get into the latter part of the 2020’s as there will be a much greater supply of LNG from America and other international sources.The United States, for instance, now the world’s largest LNG exporter will, by 2025, accomplish roughly a 50 percent increase in our capacity for LNG production.It should be clear to everyone at this point that Russia uses its energy as a weapon of coercion.  But that tactic has failed, just as Putin is failing on the battlefield.  I am convinced that we have crossed the Rubicon in terms of how Europe thinks about its energy relationship with Europe and there will be no going back to business as usual with Gazprom, with the Kremlin.  This is the new reality of Russia’s isolation.  And we are committed as the G7 to use our sanctions regime in the most targeted and effective way possible to reduce and restrict Russia’s ability to extract future energy resources.As a result of all of this, we are seeing major structural shifts in European energy planning and European energy flows that are going to ripple across the continent and in particular across the Western Balkans for years and years to come.In Southeastern Europe we have seen a dramatic transformation of the energy map as new interconnectors come online and open the region to alternative energy supplies and also facilitate greater regional energy integration and cooperation.  These regional projects bring both energy security and diplomatic benefits as I saw so dramatically during my time in Athens leading U.S. support for the Alexandroupolis Floating Regasification Unit, a project which will come online later this year which has as its off-takers Serbia, Bulgaria, North Macedonia with investment shares from several of these countries and a vision of facilitating even more ambitious flows to the north to Ukraine and across the Western Balkans.In the same spirit, we have been strong supporters of the TAP Pipeline, a project that I was just discussing with the Deputy Prime Minister of Albania which has literally transformed the energy map from Italy across to TANAP and Turkiye.We also of course have been strong supporters of the Krk Island FSRU in Croatia, the IGB interconnector with Bulgaria.  These are all projects that facilitate diversification of energy sources and energy routes.In the same vein, we are very strong supporters of the planned interconnector between Greece and North Macedonia which we see as bringing both energy security benefits and reinforcing the political benefits from the Prespa Agreement and the dramatic improvement in relations between Greece and North Macedonia.In both the short and the long-term the interconnectors between Bulgaria and Serbia which are set to be complete by 2023, and the Southern Interconnection between Croatia and Bosnia Herzegovina which needs to advance now could further expand the region’s access to natural gas from non-Russian sources.I want to be clear.  We view natural gas as a positive step towards diversifying the region’s energy mix and as part of the pathway towards a zero carbon energy system that we all are committed to.In the near term, of course, one other benefit of these new gas interconnectors will be to reduce the region’s reliance on coal and thereby improve local air quality.  We also want to work together with all of the governments of the Western Balkans to accelerate their investment in new zero carbon alternative sources like wind, solar and geothermal.Transatlantic energy cooperation continues to contribute to the stability and transparency of global markets by promoting diversification and security, by endorsing energy efficiency measures, and by developing the technologies that we will all need to transition towards net zero by 2050.The United States is pursuing an “all of the above” strategy to support the accelerated deployment of clean energy resources.  Transitioning away from coal to clean energy sources helps to achieve our collective decarbonization targets, promotes clean energy and green jobs, and enhances energy security goals by reducing vulnerabilities and opportunities for malign influence.But of course there are challenges to our shared success.  One fundamental principle is the need to continue adherence to the Dayton Accords.  Without that the United States will be limited in our ability to help.We also hope to see the Western Balkans really commit to fighting corruption.  Corruption has a deeply corrosive impact on democratic and economic development and thus to the energy security of the region.We also want to seize this moment to make real progress in helping our European and Western Balkans allies find viable alternatives to imports from Russia, including fuel substitutes, and implementing demand reduction strategies to use energy resources more effectively.To conclude, I want to underline that the United States and our allies and partners are more united today than ever before in our determination to stand up to Russia, to ensure global energy security, and to accelerate the clean energy transition and in a just and equitable manner.The Western Balkans is very much part of this larger story.  It’s a story that I’ve been privileged to participate in through the past seven years of my diplomatic career and I very much appreciate, Sasha, the opportunity to be part of the discussions today.Thank you very much, and I look forward to hearing the further conversation.
- Croatia HomeReportsOffice to Monitor and Combat Trafficking in Persons2023 Trafficking in Persons Report&#8230;Croatia				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Trafficking in Persons Report: Croatia																																					Office to Monitor and Combat Trafficking in Persons																																																																																																				 In this section										/																							CROATIA (Tier 2)																																													CROATIA (Tier 2)																															PRIORITIZED RECOMMENDATIONS:																																																																																		PROSECUTION																																																																																		PROTECTION																																																																																		PREVENTION																																																																																		TRAFFICKING PROFILE:																																																																																																								CROATIA (Tier 2)				The Government of Croatia does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so.  The government demonstrated overall increasing efforts compared with the previous reporting period, considering the impact of the COVID-19 pandemic, if any, on its anti-trafficking capacity; therefore Croatia remained on Tier 2.  These efforts included convicting more traffickers, identifying more victims, and unlike previous years, judges issuing prison terms for all convicted traffickers.  The government adopted a new criminal procedure code which allowed victims to request to testify remotely and amended legislation to allow victims accommodated at the government-funded NGO-run shelters to receive financial assistance.  However, the government did not meet the minimum standards in several key areas.  Authorities penalized a trafficking victim for theft committed as a direct result of being trafficked and, due to a lack of consistent screening efforts for trafficking indicators in irregular migration flows, some migrants and asylum seekers may have remained unidentified within the law enforcement system.  Some judges continued to require victims to provide multiple statements or testimonies causing re-traumatization, while prosecutors sometimes charged traffickers with lesser offenses.																																					PRIORITIZED RECOMMENDATIONS:						    																																															Vigorously investigate, prosecute, and convict traffickers, and seek adequate penalties for convicted traffickers which should include significant prison terms.Ensure victims are not inappropriately penalized solely for unlawful acts committed as a direct result of being trafficked. Continue to train prosecutors on trafficking, victim’s rights, and victim-centered approaches, and refer trafficking cases to trained or experienced prosecutors.Strengthen rules and regulations to ensure immigration enforcement does not hinder human trafficking detection, criminal law enforcement, or victim protections.Continue to encourage victim participation in investigations and prosecutions by providing alternative methods to testify, including remote testimony or funding for travel and other expenses for victims to attend court hearings.Train judges at all levels of the judiciary to take the severity of trafficking into account when issuing sentences and sensitize judges on victim-centered approaches and restitution.Continue to reduce the judiciary’s overall backlog of cases, including trafficking cases.Continue to inform all identified victims of their right to pursue compensation and encourage them to do so.Further increase capacity and training to accurately screen for victims and continue to consistently implement screening procedures for vulnerable populations, particularly undocumented migrants, refugees, asylum seekers, and seasonal workers.Continue to allocate and disburse sufficient resources to NGO-run shelters and NGOs participating in the mobile identification teams.Increase funding to the NGO-run hotline, so it can operate for more hours of the day and incorporate hotline numbers in more robust public awareness campaigns.																																												PROSECUTION						    																																															The government increased law enforcement efforts.  Article 106 of the criminal code criminalized sex trafficking and labor trafficking and prescribed penalties of one to 15 years’ imprisonment, which were sufficiently stringent and, with regard to sex trafficking, commensurate with those for other serious crimes, such as rape.  Additionally, Article 162 of the criminal code, which criminalized “child pandering,” could be used to prosecute some child sex trafficking offenses; it prescribed penalties of three to 12 years’ imprisonment.  Law enforcement investigated 11 cases with 14 suspects, compared with seven cases with 17 suspects in 2021; this included four sex trafficking, two labor trafficking, and five forced criminality cases.  Prosecutors prosecuted two defendants, compared with four defendants in 2021; both were for labor trafficking.  Courts convicted five labor traffickers, an increase compared with two labor traffickers and one sex trafficker in 2021.  While some judges in past years issued lenient sentences by liberally applying mitigating circumstances, first instance courts issued sentences between one year to three years’ imprisonment to all five convicted labor traffickers.  Courts also acquitted six suspected traffickers.  The government did not report the number of cases that remained pending for rulings (19 in 2021).  The government used child pandering (Article 162 of the criminal code) to convict some suspected traffickers but did not report the number of perpetrators convicted for child pandering.  The government did not report any investigations, prosecutions, or convictions of government officials complicit in trafficking crimes.  Court proceedings in Croatia often lasted years contributing to a substantial backlog of criminal cases, including trafficking cases dating as far back as 2013.The Police Office for the Suppression of Corruption and Organized Crime (PNUSKOK) within the General Police Directorate maintained specialized police officers for cases related to organized crime and designated officers for trafficking cases in district offices.  PNUSKOK conducted proactive investigations of commercial sex establishments and cooperated with the State Labor Inspectorate to jointly inspect employers in the agriculture, construction, hospitality, and service industries; authorities did not report the number of joint inspections (132 in 2021).  However, most inspection violations were administrative labor violations involving contracts, permits, and salaries rather than labor trafficking prosecutions.  GRETA and other sources reported some judges and prosecutors lacked an understanding of trafficking and often prosecuted traffickers using offenses with lesser penalties, such as “prostitution,” “assault,” “sexual abuse,” and “pandering.”  Additionally, some prosecutors charged individuals suspected of trafficking with other or lesser crimes that were easier to prove to decrease their large caseloads.  Independent experts assessed prosecutors heavily relied on victim testimony and did not often use special investigative measures to corroborate evidence.  The government could not share details on international investigations due to confidentiality protections.  The government maintained institutionalized training programs on various trafficking issues at the Police Academy, Police College, Judicial Academy, and Border Police Directorate.																																												PROTECTION						    																																															The government increased victim protection efforts.  The government identified 28 victims, an increase compared to 19 in 2021.  Of these 28, 19 were victims of sex trafficking, two of forced labor, and seven of forced criminality; there were six women, three men, and 19 girls.  Three of these victims were foreign nationals.  The government maintained SOPs for screening and identifying victims and a SOP on referral, assistance, and protection of victims.  Civil society representatives and various ministry officials reported good cooperation with the Ministry of Interior and the active role of police in victim identification.  However, civil society, media, and international organizations continued to report a lack of government efforts to adequately screen migrants and asylum seekers, including unaccompanied children.  A multi-disciplinary NRM provided SOPs for identifying and referring victims to services.  According to the NRM, first responders carried out the preliminary identification of potential victims and contacted one of four regional mobile teams – consisting of social workers from a Center for Social Work and NGO representatives – who traveled to assess potential adult victims in person and thereafter coordinated victim care and placement.  For child victims, first responders contacted the Ministry of Labor, Pension System, Family and Social Policy (MLPSFSP), which dispatched a mobile team of specialized social workers.  The police cooperated with mobile teams to officially identify victims and with the MLPSFSP in cases involving children.  In previous years, NGOs participating in the mobile team for adults had not been reimbursed for expenses related to the use of their private vehicles for official travel.  While officials reported the mobile team functioned well and the Office for Human Rights and Rights of National Minorities (OHRRNM) reimbursed costs in 2022, funding disbursement was often delayed.The government and NGOs provided protection and assistance to victims, including shelter, medical assistance, legal assistance, psycho-social support, rehabilitation, reintegration services, and, during the pandemic, personal protective equipment and COVID-19 tests; 13 victims received assistance and 15 victims opted out of receiving assistance.  The government funded two NGO-run shelters based on the number of assisted victims and allocated 211,802 kunas ($30,830) to the NGO-run shelter for adults, compared with 257,741 kunas ($37,520) in 2021.  It allocated 331,028 kunas ($48,180) for the NGO-run shelter for children, compared with 162,331 kunas ($23,630) in 2021.  The government-funded, NGO-run shelter for adults had capacity to accommodate five adult victims, allowed freedom of movement, and provided separate accommodation for men and women, where they could stay for up to one year with the possibility of an extension.  The government-funded, NGO-run shelter for children had the capacity to accommodate five child victims and could enroll children into school, including distance learning.  The NGO-run shelters accommodated two adult victims and one child victim.  In previous years, legislation required victims to choose between accommodation at the shelter or social allowance of 1000 kunas ($145) per month; however, the government amended legislation to allow trafficking victims accommodated at NGO-run shelters to receive half of the guaranteed social allowance.  As a result, the government allocated 500 kunas ($72) per month to victims staying at NGO-run shelters in addition to a monthly stipend of 250 kunas ($36) for personal items and a one-time monetary compensation of 2,500 kunas ($360).  The Center for Missing and Exploited Children provided a range of educational and psycho-social services for unaccompanied or exploited children, including child trafficking victims.  The government continued its efforts to implement foster care for the custody of children instead of using state childcare institutions; MLPSFSP organized foster families for three child victims (five in 2021).  The government organized trainings for foster families and special caregivers and required them to maintain a license, but officials reported a shortage in the number of foster families and special caregivers to fully support the increasing number of child victims.  The Croatian Employment Bureau (HZZ) maintained special coordinators in regional and branch offices, who coordinated roundtables and presentations to encourage employers to hire trafficking victims; HZZ did not report the number of victims assisted in securing employment (one in 2021).Experts reported authorities inappropriately penalized a trafficking victim for theft committed as a direct result of being trafficked.  Authorities prosecuted the trafficking victim after they admitted to stealing; however, they did not have legal representation or a full understanding that they were subjected to forced criminality.  Authorities denied requests to revisit the case and consequently the victim did not qualify to receive any victim assistance or support services.  In addition, contacts reported lack of consistent screening efforts for trafficking indicators in irregular migration flows may have resulted in some migrants and asylum seekers remaining unidentified within the law enforcement system.  Foreign victims had access to the same services as domestic victims, but foreign victims without work permits at the time of their exploitation could not receive compensation for lost wages.  Foreign victims could receive a temporary residence permit after a 60-day reflection period for adults and 90 days for children; no victims required residence permits (four in 2021).  The government also cooperated with German authorities to repatriate a victim to Germany.  Seven out of 15 county courts had Victim and Witness Support Offices (VWSO) which provided assistance during criminal proceedings, including requests to testify via video link, referrals to specialized institutions, legal and logistical assistance, and measures to prevent re-traumatization.  The government also funded a civil society network to provide legal and psychological assistance and logistical support in the eight county courts without VWSOs.  While observers reported courts with VWSOs offered assistance consistently, the other eight county courts assisted by civil society did not have the capacity or resources to provide victim-centered approaches.  The government adopted a new criminal procedure code which allowed victims to request in writing to testify remotely.Civil society reported the judiciary was not always familiar with legal protections available for trafficking victims and some judges lacked sensitivity, an understanding of the impact of psychological trauma, and required victims to provide statements or testimonies multiple times, causing re-traumatization.  For example, judges allowed victims to testify by video call but required victims to do so from a room within the courthouse, which forced victims to travel from a different city.  Children could provide testimonies to specialized professionals in child interview rooms.  The law provided witness protection, but the government reported no victims required witness protection in 2022 or 2021.  The government reported 28 victims participated in investigations.  In previous years, authorities reported difficulties in encouraging victims to cooperate with investigations – particularly sex trafficking cases or cases involving potential foreign victims – due to fear of retaliation, stigma, re-traumatization, or logistical challenges.  The law entitled victims to restitution in criminal cases, but judges most often rejected claims for restitution and directed victims to file civil suits to request compensation.  Experts reported the lack of training for particularly criminal judges, complicated bureaucratic procedures, and inadequate mechanisms perpetuated the absence of restitution in criminal sentences.  Judges in civil courts were sometimes better positioned to assess emotional pain, but civil suits were expensive, lengthy, and required victims to re-testify about their exploitation, causing re-traumatization.  Judges did not award restitution in 2022 or 2021 and compensation awarded in 2020 to a victim for 143,650 kunas ($20,910) was never dispensed.																																												PREVENTION						    																																															The government maintained prevention efforts.  The head of OHRRNM served as the national anti-trafficking coordinator and the secretariat for the senior-level national coordinating committee; the national committee met once in both 2022 and 2021.  The committee’s working-level operational team held monthly virtual meetings, monitored the implementation of the 2018-2021 NAP, and began drafting the 2023-2027 NAP.  However, there was no NAP in 2022 and the government did not finalize the 2023-2027 NAP.  The government allocated 107,249 kunas ($15,610) for the implementation of the NAP, compared with 117,209 kunas ($17,060) in 2021.  The government also allocated 265,120 kunas ($38,590) to OHRRNM, compared with 292,620 kunas ($42,590) in 2021.  The government organized awareness campaigns in areas with high tourism and separate campaigns for the public, students, and the Romani community.  The government allocated 4,583 kunas ($670) for the NGO-run hotline, compared with 4,706 kunas ($685) in 2021.  However, observers reported difficulties in finding the hotline number and the NGO-run hotline operated only from 10:00 a.m. to 6:00 p.m. due to inadequate financial support; the hotline received approximately 600 calls leading to five cases forwarded to UNKOK.  The government maintained a legal framework for regulating and licensing private sector employers, including foreign employment agencies.  The law prohibited charging workers recruitment fees with fines for a violation ranging from 4,000 to 100,000 kunas ($580 to $14,560); the government did not report if such fines were issued during 2022 and 2021.  Labor inspectors could issue administrative fines and/or file criminal charges against employers for nonpayment of salaries.  Labor inspectors conducted inspections in a variety of sectors, such as agriculture, construction, elderly care, forestry, and service; most infractions involved improper labor contracts, work permits, and salary issues.  The government did not make significant efforts to reduce the demand for commercial sex acts.  International organizations and civil society criticized the government for continued pushbacks of undocumented migrants and asylum seekers into Bosnia and Herzegovina (BiH), and civil society and media alleged border police abused undocumented migrants and asylum seekers.  International and civil society organizations claimed these practices strongly discouraged victims from self-identifying or cooperating with authorities.  UNHCR reported accusations were hard to verify as migrants wanted to move quickly through Croatia and were inaccessible for follow-up investigations, but civil society recorded approximately 3,461 pushbacks to BiH in 2022, 8,800 pushbacks from January 2021 to November 2021, and 30,309 pushbacks from June 2019 to September 2021.  In June 2021, the government established the Independent Monitoring Mechanism (IMM) to provide oversight for police conduct at borders and ensure compliance with human rights and international law.  IMM released an annual report of their findings, which reported poor records and unclear procedures but that police were generally well-trained, followed regulations, and border abuse and mistreatment were isolated instances.  NGOs criticized the lack of independence of IMM and transparency of the report.																																												TRAFFICKING PROFILE:						    																																															As reported over the past five years, human traffickers exploit domestic and foreign victims in Croatia, and traffickers exploit victims from Croatia abroad.  Women and girls from the Balkans and Central Europe are exploited in sex trafficking in Croatia.  Traffickers exploit Croatian women and girls in sex trafficking within the country and elsewhere in Europe.  Traffickers exploit Croatian, Bosnian, and Romanian women and some Afghan, Filipino, Nepali, Pakistani, Taiwan, and Thai men in forced labor in the Croatian agricultural sector.  Men are also exploited in forced begging and forced criminality, including theft and fraud.  Traffickers increasingly use the internet, particularly social media platforms, to recruit children for sex trafficking.  Undocumented migrants and asylum seekers from Afghanistan, Iraq, Syria, and neighboring countries traveling or being smuggled through Croatia are vulnerable to trafficking, particularly women and unaccompanied children.  Individuals experiencing homelessness, children in the social welfare system, and persons with mental and physical disabilities are particularly vulnerable to trafficking.																																				    							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- International Tribunal Expands Sentences for Two Defendants for Committing Atrocity Crimes in the Former Yugoslavia Matthew Miller, Department SpokespersonYesterday’s appeals judgment by the United Nations International Residual Mechanism for Criminal Tribunals (IRMCT) in the case of Jovica Stanišić and Franko Simatović, which recognized their responsibility for war crimes and crimes against humanity committed in Bosnia and Herzegovina and Croatia, has been long-awaited. This judgment marks the conclusion of the final IRMCT case arising out of the work of the International Criminal Tribunal for the former Yugoslavia (ICTY), closing an important chapter in international criminal justice in the former Yugoslavia. We are grateful for the decades of work by the judges, attorneys, and other court staff of the ICTY and its successor, the IRMCT, and their immense contributions to the rule of law and the fight against impunity.We also acknowledge and honor the courage and resilience of victims, survivors, and their loved ones who continue to fight for the official acknowledgment of these crimes. We recognize the courage of the thousands of witnesses who participated in this and other trials and without whom justice could not be served. Atrocity crimes convictions underscore individual responsibility and are not a reflection of an entire people. The United States will continue to press for justice, mutual trust, and reconciliation as the foundation for peace and stability.
- Croatia Statehood Day Antony J. Blinken, Secretary of StateOn behalf of the United States of America, I extend our best wishes to the people of Croatia as you celebrate your Statehood Day.For over 30 years, our two nations have been tied together by shared values and deep friendship. In the year ahead, I look forward to continuing to strengthen our defense partnership, enhancing regional energy security, bolstering trade and investment ties, and confronting the climate crisis. We must also advance the Euro-Atlantic integration of Western Balkan countries and address urgent challenges around the world, including Putin’s brutal war against Ukraine. We are proud to stand together as NATO Allies and thank Croatia for its important contributions to our collective security and transatlantic prosperity.
- Zagreb, Croatia: The American International School of Zagreb: 2024 Special Needs Profile Office of Overseas Schools&nbsp;Download the Special Needs Profile (Zagreb 2024 Special Needs Profile Croatia) for this school to learn more about their capability to support students with exceptionalities.&nbsp;The American International School of Zagreb (AISZ) is a private, coeducational, day school which offers an educational program from prekindergarten through grade 12 for students of all nationalities. The school was founded in 1966. The school year consists of two semesters, extending from August to June.This is intended to provide general information. Prospective users of the schools may wish to inquire further of A/OPR/OS or contact the school directly for more specific and up-to-the-minute information. Information and statistics are current as of December 2023 and provided by the school.NOTE: School situations can change quickly, particularly as schools face cutbacks to learning support programs due to the pandemic, unrest, and economic uncertainty. For the most current information, work with the REO and school. Information in this document was collected by the Department of State’s Office of Overseas Schools directly from the school in December 2023 and shows the availability of services rather than an assessment of the quality of the services. The profile is intended as a jumping off point for a conversation with the REO and school to understand the best fit for your child. Definitions may vary school to school.&nbsp;