Croatia gained independence in 1992 and was recognised by the international community as a sovereign state. From that time on, GTZ has been acting in Croatia on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The Croatian Government’s foreign policy priority is attaining full membership in the European Union (EU) and the North Atlantic Treaty Organisation (NATO). In October 2005, the accession negotiations formally began between the European Union and Croatia. The key prerequisite for starting the negotiations was complete cooperation with the International Criminal Court for former Yugoslavia. By mid-2008, more than 20 out of a total of 35 negotiation chapters had been opened. Croatia should be able to conclude the accession negotiations in 2009, fulfilling the requirements for accession to the EU. In the security area, during the NATO summit in Bucharest in 2008, Croatia received an invitation to join the military alliance.

Croatia’s heaviest burdens are the national budgetary deficit, high foreign debt, the governmental involvement in non-competitive corporations and the heavily unfavourable balance of foreign trade. A further formidable challenge is posed by public administration reform.

The successes scored by Croatian-German cooperation can already be seen. The Croatian Government, supported by German advisory services, has passed national legislation protecting designations of product origin. Promotion of bicycle tourism along Slavonian rivers has given rise to numerous new tourism businesses. Institutions of political education have gained awareness of the need to initiate and support essential reform processes within crafts and trades training. Strategic direction by municipalities and counties of development in the coastal region was improved, taking account of the conflicting environmental and economic objectives.