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BUDG/CONT Delegation Visit to Croatia 22 - 25 June 2010

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BUDG/CONT Delegation Visit to Croatia 22 - 25 June 2010 BUDG/CONT Delegation visit to Croatia 22 - 25 June 2010 CONTENTS 1. Programme 2. Policy Department for Budgetary Affairs: The Economic and Political Situation in Croatia 3. Country Report, Economist Intelligence Unit 4. EC Conclusions on Croatia 5. European Parliament Resolution on the Progress report on Croatia 6. IPA 2009 Commission Decision with annex 7. Overview of EC Assistance to Croatia over the period 2001-2008 DRAFT PROGRAMME Joint Delegation of the Budgetary Control Committee and Budgets Committee to CROATIA 22-25 June 2010 Participants MEPs Luigi de Magistris - Head of delegation (CONT / ALDE) Jean Pierre Audy (CONT / EPP) Tamas Deutsch (CONT / (EPP) Goran Farm (BUDG / (S&D) Monica Luisa Macovei (CONT / EPP) Theodor Stolojan (BUDG / EPP) Derek Vaughn (CONT / S&D) Secretariat of the Committee on Budgetary Control: Mr Rudolfs Verdins (Administrator) Ms Sylvana Zammit (Assistant) (Special GSM number for the days 22-25 June 2010: +32 475-75 46 68) Secretariat of the Committee on Budgets: Lucia Cojocaru (Administrator) Political group advisors Jonas Kraft (EPP) Maggie Coulthard (S&D) Dominykas Mordas (ALDE) Interpreters (Active: EN, IT, HR - Passive: FR) Fusco Maria Antonietta (IT) (Team Leader) Varesco Enrico (FR, EN) Mance Natasa (EN) Levak Potrebica Tamara (EN, HR) Maras Marija (EN, HR) Hobbs James (IT) Collins Mani Anna (FR, IT) Members' Assistants Emilie Apell (assistant to Mr Farm S&D) Ana Brinza (assistant to Mr Stolojan EPP) EC Delegation in Zagreb: Mr Paul Vandoren Head of Delegation [email protected] Mr Sandro Ciganovic [email protected] Accommodation and transport in Croatia/Zagreb: Hotel Regent Esplanade Mihanoviceva 1, 10000 Zagreb Croatia Telephone: +385-(0)1-45 66 666 Fax: +385 1 45 66050 The delegation will have a bus at its disposal in Zagreb during meeting days. -------------------------------------------------- Interpretation can be active or passive : active interpretation : the speaker uses his mother tongue and other speakers' statements are also interpreted into that language (there is a booth for that language) passive interpretation : the speaker uses his mother tongue, but other speakers' statements are not interpreted into that language (there is no booth for that language : the person can speak but no listen in that language) Tuesday 22 June 16.00 - 21.30 Departure to Zagreb (BUDG) (Transfer from the Airport to hotel Regent Esplanade www.regenthotels.com by taxi) Wednesday 23 June 08.30 - 13.00 Project visits (BUDG): - Municipality of Hum na Sutli – Cross Border Cooperation project: Supply of Drinking Water as a Basis for Sustainable Development and Environment Protection in Border Area. (Phare 2006 CBC HR-SI-HU contract No. 2006-0017-971009); - Municipality of Hum na Sutli By Standardisation to Top 5, grant awarded to the company Stražplastika Inc. to introduce the ISO 14001 and increase the export capacity of the company. (Phare 2006 National Programme contract No. 2006-0808-010107) (Departure and Return point: Hotel Regent Esplanade) 13h15 Arrival of the CONT Members to Zagreb (Transfer from Airport to hotel Regent Esplanade) (approx. 20mins drive from airport to hotel) 14.00 - 15.00 Lunch (own arrangements) 15.20 Meeting point at Hotel Regent Esplanade to go to EC Delegation premises 15.30 - 16.15 Meeting with the EC Delegation (BUDG & CONT) (Premises are approx. 5mins from delegation hotel). 16.30 - 17.15 Meeting with Mr Andrej Plenkovic, State Secretary for European Integration, Ministry of Foreign Affairs and European Integration Held at the (BUDG and CONT) Croatian Parliament 17.30 - 18.30 Meeting with Mr Vladimir Drobnjak, Chief Negotiator for Croatia's accession negotiation - (BUDG & CONT) 18.45 - 19.45 Project visit: RODOS system - institutional capacity building in the field of nuclear safety (Phare 2005 and 2006 funding). 20.00 - Dinner (own arrangements) Thursday 24 June Participants leaving today - N.B. - Please bring your luggage to the bus 08:30 - 09:00 Meeting with Mr Ivan Šuker, Minister for Finance Held at the Ministry of Finance 09:30 - 10:30 Meeting with the Committee on finances and state budget of Croatian Sabor (Chairman Dr Goran Marić). 11.00 - 12.00 Press point Held at the Croatian 12:00 - 14:00 Working lunch hosted by Dr Goran Marić, Chairman of the Parliament Committee on finances and state budget of Croatian Sabor. 14:30 - 16:00 Meeting with Mrs Šima Krasić, State Auditor (CONT). (Departure at 16:20) 17.30 - 19.30 Project visit (CONT): Bregana border crossing (CARDS and Phare programmes funded capacity building project for the Ministry of Interior, Customs, border veterinary and phytosanitary inspection). 20.00 Dinner (own arrangements) Friday 25 June Individual return flights to places of origin (CONT) DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT D: BUDGETARY AFFAIRS The Economic and Political Situation in Croatia NOTE 08/06/2010 PE 411.280 EN This document was requested by the European Parliament's Committee on Budgetary Control. AUTHOR Ms Yana Mechkova RESPONSIBLE ADMINISTRATOR Mr Christian EHLERS Policy Department D: Budgetary Affairs European Parliament B-1047 Brussels E-mail: [email protected] LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR To contact the Policy Department or to subscribe to its monthly newsletter please write to: poldep- [email protected] Manuscript completed in June 2010. Brussels, © European Parliament, 2010. This document is available on the Internet at: http://www.europarl.europa.eu/studies DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy. The Economic and Political Situation in Croatia ___________________________________________________________________________________ TABLE OF CONTENTS 1. INTRODUCTION............................................................................................... 2 2. THE POLITICAL SITUATION............................................................................. 2 2.1. THE POLITICAL STRUCTURE.................................................................................... 2 2.1.1. The President of the Republic ....................................................................... 2 2.1.2. The Croatian Government.............................................................................. 3 2.1.2.1. The Ministry of Finance................................................................................... 4 2.1.2.2. The Agency for the Audit of European Union Programmes Implementation System................................................................................ 6 2.1.3. The Croatian Parliament.................................................................................. 8 2.1.4. The Croatian Judicial System......................................................................... 9 2.2. THE POLITICAL CONTEXT.......................................................................................10 2.2.1. Latest news.........................................................................................................10 2.3. SENSITIVE TOPICS .....................................................................................................11 2.3.1. Fight Against Organised Crime and Corruption ..................................11 2.3.2. Judiciary...............................................................................................................12 2.3.3. ICTY Co-operation............................................................................................12 2.4. NEIGHBOURING COUNTRIES ................................................................................13 2.4.1. Croatia's Relations with Serbia....................................................................13 2.4.2. The Border Dispute with Slovenia .............................................................13 3. ECONOMIC SITUATION................................................................................. 15 3.1. ECONOMIC REVIEW..................................................................................................15 3.2. CHAPTER 32 OF THE STABILISATION AND ASSOCIATION AGREEMENT .......................................................................................................................................................20 3.2.1. Chapter Content...............................................................................................20 3.2.2. Country Alignment and Implementation Capacity ............................21 3.2.2.1. Public Internal Financial Control (PIFC) and External Audit............21 3.2.2.2. Protection of EU Financial Interests and Protection of the Euro...25 3.3. ASSESSMENT OF THE DEGREE OF ALIGNMENT AND IMPLEMENTATION CAPACITY.........................................................................26 3.3.1. Public Internal Financial Control (PIFC) and External Audit............26 3.3.2. Protection of EU Financial Interests and Protection of the Euro...26 3.4. STATISTICAL DATA, THE CRISIS AND ECONOMIC PROBLEMS..................28 4. RELATIONS WITH THE EUROPEAN UNION .................................................. 30 4.1. STATE OF CROATIA'S ACCESSION PROCESS...................................................30 4.2. THE EUROPEAN PARLIAMENT'S POSITION......................................................31
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