Programme of the Government of the Republic of Croatia for the Adoption and Implementation of the Acquis for 2012

Government of the Republic of Croatia

Programme of the Government of the Republic of Croatia for the adoption and implementation of the acquis for 2012

Zagreb, February 2012

INTRODUCTION

The Republic of Croatia has fulfilled the majority of its obligations arising from the EU accession process, which particularly concerns the process of aligning its legislation with the acquis. However, the acquis is continuously developing, and Croatia, once it becomes a Member State, will still be bound to align its national legislation with the EU acquis. During the accession negotiations in 2011, the Republic of Croatia adopted a number of commitments that need to be met by the day it becomes a full-fledged member of the EU also in provisionally closed chapters. Consequently, activities aimed at meeting the commitments arising from EU membership will need to be undertaken in 2012. Therefore, this year, in co-operation with state administration bodies, we have drawn up a Programme of the Government of the Republic of Croatia for the adoption and implementation of the acquis for 2012. This document includes all the obligations arising from the EU accession process. The Programme provides for one-year measures primarily aimed at aligning the legislation and strengthening administrative capacities to ensure the full application of all the aligned legislation and the efficient implementation of the assumed commitments. The Programme of the Government of the Republic of Croatia for the adoption and implementation of the acquis for 2012 is a shorter version of the previous National Programmes for the Accession of the Republic of Croatia to the European Union. We have modified the concept of this document as part of our preparations for Croatia‘s functioning in the circumstances of full EU membership. In this way, we are moving away from a classical accession programme to a programme for transposing the EU acquis, like that drawn up by the Member States. The Programme provides for the adoption of laws transposing the new acquis, where Croatia, in line with European Commission recommendations and according to the active monitoring of the development of the acquis by competent state authorities, is amending its legislation in parallel with the EU Member States. With this approach, Croatia is clearly showing its readiness to immediately function as a Member State. Since Croatia‘s legislation is continuously being aligned, it will be fully complementary to the applicable EU acquis when Croatia becomes a full member of the EU. In this way, we will ensure that the transposed legislation will be appropriately and duly implemented. By adopting this document, Croatia is sending a clear message that it is preparing for active EU membership. We will continue to adopt such programmes in the future years of our membership in the EU, when we will also strive to promote our national interests by participating in the creation of common EU policies. LIST OF ABBREVIATIONS

Agencija za zaštitu osobnih podataka - AZOP Personal Data Protection Agency - PDPA

Agencija za zaštitu trţišnog natjecanja - AZTN Croatian Competition Agency – CCA

Drţavna geodetska uprava - DGU State Geodetic Administration - SGA

Drţavna uprava za zaštitu i spašavanje - DUZS National Protection and Rescue Directorate - NPRD

Drţavni inspektorat - DI State Inspectorate – SI

Drţavni ured za reviziju – DUR State Audit Office - SAO

Drţavni ured za središnju javnu nabavu - DUSJN State Office for Central Procurement - SOCP

Drţavni ured za trgovinsku politiku - DUTP State Office for Trade Policy – SOTP

Drţavni ured za upravljanje drţavnom imovinom - State Office for State Property Management DUUDI - SOSPM

Drţavni zavod za intelektualno vlasništvo - DZIV State Intellectual Property Office - SIPO

Drţavni zavod za mjeriteljstvo - DZM State Office for Metrology - SOM

Drţavni zavod za radiološku i nuklearnu sigurnost - State Office for Radiological and Nuclear Safety - SORNS DZRNS

Drţavni zavod za statistiku - DZS Central Bureau of Statistics - CBS

Hrvatska agencija za nadzor financijskih usluga - Croatian Financial Services and Supervisory Agency - HANFA HANFA

Hrvatska agencija za poštu i elektroničke komunikacije Croatian Post and Electronic Communications Agency - - HAKOM HAKOM

Hrvatska akreditacijska agencija - HAA Croatian Accreditation Agency - CAA

Hrvatska narodna banka - HNB Croatian National Bank (CNB)

Hrvatski zavod za norme - HZN Croatian Standards Institute (CSI)

Ministarstvo branitelja - MB Ministry of Veterans‘ Affairs - MV

Ministarstvo financija - MFIN Ministry of Finance - MF

Ministarstvo gospodarstva - MG Ministry of the Economy - ME

Ministarstvo graditeljstva i prostornoga ureĎenja - Ministry of Construction and Physical Planning - MCPP MGPU

Ministarstvo kulture - MINK Ministry of Culture - MC

Ministarstvo obrane - MORH Ministry of Defence - MD

Ministarstvo poduzetništva i obrta - MPO Ministry of Entrepreneurship and Crafts - MEC

Ministarstvo poljoprivrede - MINPO Ministry of Agriculture – MA

Ministarstvo pomorstva, prometa i infrastrukture - MPPI Ministry of Maritime Affairs, Transport and Infrastructure – MMATI

Ministarstvo pravosuĎa - MP Ministry of Justice - MJ

Ministarstvo rada i mirovinskoga sustava - MRMS Ministry of Labour and the Pension System – MLPS

Ministarstvo regionalnoga razvoja i fondova Europske Ministry of Regional Development and European Union unije - MRRFEU Funds - MRDEUF

Ministarstvo socijalne politike i mladih - MSPM Ministry of Social Policy and Youth – MSYP

Ministarstvo turizma - MINT Ministry of Tourism - MT

Ministarstvo unutarnjih poslova - MUP Ministry of the Interior - MI

Ministarstvo uprave - MU Ministry of Administration - MAd

Ministarstvo vanjskih i europskih poslova - MVEP Ministry of Foreign and European Affairs - MFEA

Ministarstvo zaštite okoliša i prirode - MZOIP Ministry of Environmental and Nature Protection - MENP

Ministarstvo zdravlja - MZ Ministry of Health – MH

Ministarstvo znanosti, obrazovanja i sporta - MZOS Ministry of Science, Education and Sports - MSES

Ured za ljudska prava i prava nacionalnih manjina - Office for Human Rights and National Minority Rights - ULJPNM OHNMR

Ured za ravnopravnost spolova - URS Office for Gender Equality - OGE

Ured za razminiranje - UR Office for Demining - ODM

Ured za suzbijanje zlouporabe droga - USZD Office for Combating Narcotic Drugs Abuse - OCNDA

Ured za udruge - UU Office for Cooperation with NGOs - OCNGO

Ured za zakonodavstvo - UZZ Legislation Office - LO

Hrvatski mjeriteljski institut - HMI Croatian Metrology Institute - CMI

I POLITICAL CRITERIA

1.1 JUDICIAL REFORM

Judicial Reform Action Plan The activities planned in the Judicial Reform Strategy for 2011 – 2015 will continue in 2012. The new Strategy defines the goal of the reform of the Croatian justice system. All the activities undertaken under the Strategy for the coming reform period should be directed towards this goal. This includes the strengthening of the independence, impartiality, professionalism and efficiency of the judiciary, the creation of all necessary conditions for the fair and successful functioning of the Croatian justice system within the EU, access to justice, and the creation of a modern criminal legal framework and criminal sanction system. In order to further speed up the judicial reform process, a Judicial Reform Action Plan for 2012 will be adopted, which will provide specific measures and implementing activities to reform the justice system. This will be done on the basis of an analysis of what has been achieved in the previous period, by making a projection of necessary and possible measures and activities, and setting deadlines, competent institutions, the necessary funds and performance indicators. Independence of the judiciary The adoption of new Framework Criteria for the Evaluation of Judges by the Ministry of Justice is also foreseen in 2012. The method of presenting the judges' performance in the new Framework Criteria will be adapted to the fact that the Integrated Case Management System (ICMS) will be implemented in all municipal and county courts by the end of 2012. Professionalism Further activities to strengthen the capacities of the Judicial Academy as an independent institution are foreseen in 2012. The organisation of workshops on EU law and the running of international conferences and seminars/workshops in co-operation with European and national organisations (ERA, EIPA, EJTN, IRZ, TAIEX) are also planned to continue. The Judicial Academy is preparing an annual strategy for the activities of the Judicial Academy and for its development as a public institution. It is also implementing a five-year strategy for the development of the JA from 2011 – 2015. The implementation of the Twinning Agreement funded from the IPA 2009 programme "Professional development of judicial advisors and future judges and state attorneys through the establishment of a self-sustainable training system" will begin in 2012. This project, worth EUR 1.05 million, has the following aims: to conduct an analysis of the existing status of judicial advisors; to define their new role taking into consideration changes in legislation and the establishment of the State School for Judicial Officials; to develop a training strategy for the future training of judicial advisors; and to conduct the training of judicial advisors (in civil, criminal, commercial, administrative and EU law). In addition to this Twinning Agreement, an agreement will be concluded in 2012 for the procurement of multimedia equipment and furniture for the Judicial Academy and its regional centres. A Twinning Light Agreement to the total value of EUR 230,000 should be concluded and will begin to be implemented in 2012. This Agreement will represent further continuous support to the establishment and operation of the State School for Judicial Officials. In 2012, the Judicial Academy is planning to employ another 10 members of staff. Efficiency of the judiciary In 2012, it is planned to equip judicial bodies with IT and to develop and implement the Integrated Case Management System (ICMS) in judicial bodies through various projects. Thus, the World Bank Justice Support Project loan will provide funds for the following projects:  Justice Sector Support Project (JSSP) G-12 ICMS Upgrade Project - a project to upgrade the "e-File" application with functionalities related to the Criminal Procedure Act and the Juvenile Courts Act. The introduction of automatic data sharing between courts and the Ministry of Justice's Department for Criminal Records will form part of the project.  JSSP G-11 CTS Upgrade Project – a project initiated in July 2011, which is planned to be completed by the end of 2012. The project also aims to upgrade the "Case Tracking System" (CTS), to set up this system at four pilot locations, and to draw up standard statistical reports. Central IT equipment for the work of the CTS (Case Tracking System in state attorney offices) has been delivered through the project.  JSSP CS04 Roll-out of CTS – a project to set up the CTS in all state attorney offices in the Republic of Croatia should be signed by the end of June 2012.  Activity G-3 – Supply of IT Asset Management System. This project is planned for completion within 2012.  Activity G-7 – Procurement of Servers, Server Peripherals and System Software for the State Attorney's Office, whose delivery will be made at the beginning of 2012.  Procurement of Generic Cabling (local computer and telephony network and power supply installations), IFB No: G-2 – a project which will enable local area networks (LAN) to be set up at 14 sites (addresses) for the State Attorney's Office, nine misdemeanour court sites, three municipal court sites (out of 33) and three sites for prisons. Contracts for the project should be completed by the end of 2011, while the execution of the networks is planned for 2012. The following IPA projects will be funded from EU funds:  IPA 2009 - Misdemeanour Court Joint Case Management System (JCMS) Upgrade (misdemeanour courts) – a contractor will be selected in 2012 to upgrade the case tracking application at misdemeanour courts.  IPA 2009 – Roll-out of ICMS to Selected Municipal Courts (roll-out to 33 municipal courts) – a project to introduce "e-File" to the remaining 33 municipal courts. The project is expected to begin at the end of March 2012, and its completion is due by the end of the same year.  IPA 2009 “Supply of IT Equipment and LAN Infrastructure to Selected Misdemeanour Courts” – a local area network (LAN) will be set up through the project at eight misdemeanour courts, which will include the delivery and installation of the following IT equipment: PCs, printers and servers at misdemeanour courts in Crikvenica, Korčula, Krk, Nova Gradiška, Stari Grad (Hvar), Zabok and Zagreb. The signing of the agreement is expected at the beginning of February 2012, and the end of the works and delivery of the equipment are due in the course of 2012.  IPA 2009 "Further Support to the Misdemeanour Courts and Development of ICMS Compatible Modules“ – the implementation of this project should start in 2012 with a view to providing further institutional and administrative assistance to the Croatian misdemeanour court system.  IPA 2009 "Strengthening the Administrative Capacities in the MJ― – implementation should start in 2012 with the aim of strengthening the administrative capacities of leading civil servants within the Ministry of Justice and improving their management skills.  IPA 2010 "Development of an International Legal Assistance (ILA) IT System" – signing the contracts for this project is expected in 2012. Its purpose is to develop new IT software to increase the efficiency of the work of the Sector for International Legal Assistance and facilitate case file searches.  IPA 2010 "Improvement of the Enforcement System in the Republic of Croatia" – two contracts will begin to be implemented in 2012. Their purpose is to procure IT equipment and to draw up recommendations for the potential future IT interconnection of the bodies involved in implementing the new enforcement rules.  IPA 2010 "Improvement of the Enforcement System in the Republic of Croatia― – in 2012, the implementation of a Twinning Agreement will begin with the following aims: to provide an analysis and recommendations to improve the administrative capacities of the MJ regarding the tasks of implementing the enforcement legislation; to train staff within the Sector for Regulations of Civil and Commercial Law in the Directorate for Civil, Commercial and Administrative Law related to their competences in the context of enforcement law; to establish an efficient supervisory mechanism for the enforcement system; to provide assistance in establishing the institutional and administrative framework of the Chamber of Public Bailiffs; to establish a co-ordination and communication mechanism between the MJ, the Chamber of Public Bailiffs, the Public Notaries Chamber, the Bar Association, the Ministry of Finance, and the Ministry of Justice; to develop a sustainable training programme for public bailiffs and to organise four train-the-trainers workshops for 20 public bailiffs; to conduct a needs assessment for the training of judges, state attorneys and court bailiffs regarding the new Enforcement Act; and to produce promotional material on the new enforcement system aimed at raising public awareness. The procurement of IT equipment is planned in 2012 (2,100 PCs, 1,513 laser printers, 160 laptops, 300 monitors and 60 UPS devices). The delivery and installation of 300 PCs and 420 laser printers to equip judicial bodies and the Ministry of Justice, which were procured through a tender conducted in 2011, is also planned in the first quarter of 2012. The contract with IBM on basic maintenance of the "e-File" is due to expire on 4 February 2012. A tender is planned for the next period of "e-File" maintenance. Maintenance of the technological platform on which "e-File" operates will also be provided in 2012. This consists of maintenance of the hardware, operating system, application server, and database software (DB2), as well as maintenance of the COGNOS reporting server and software. Land Registers Action plans aimed at reducing the backlog of land registry courts, training land registry clerks, and procuring equipment for the central system and the courts are being implemented as part of the judicial reform. The establishment of the Joint Information System (JIS) of Land Registry and Cadastre is underway, and the digitalisation of the entire operation of land registry courts is planned. The land registry system will be equipped with IT in 2012 through the implementation of the IPA 2008 Project – Development of a One-Stop-Shop for the Joint Information System of Land Registry and Cadastre and Consolidation of Land Registry Data. The contract began to be implemented on 14 October 2011 and is due to last until the end of October 2012. The contract is worth EUR 553,000 and its purpose is to build a one-stop-shop subsystem, to analyse and consolidate LR data in digital form, and to conduct training in the use of the software. Rationalisation of the network of courts and state attorney offices The reform of administrative adjudication in the Republic of Croatia is planned to be completed in 2012. The administrative courts in Zagreb, Rijeka, Split and Osijek began to operate on 1 January 2012. The project of strengthening the efficiency of labour adjudication in the Republic of Croatia will also be completed. The Municipal Labour Court in Zagreb began to operate on 1 January 2012.

Suppression of corruption With a view to strengthening the institutional framework, enhancing all forms of prevention of corruption, strengthening repression and improving international co-operation, the measures and goals of the anti-corruption policy will continue in 2012 with the adoption of the new Action Plan accompanying the Anti-Corruption Strategy. With regard to education, the focus in 2012 will be on the implementation of an anti-corruption training programme and on building the capacities of the managing authorities of the operational programmes (conducting examinations for ethics commissioners, suppression of corruption - basic and advanced courses, prevention of corruption, public procurement, public access to information - basic and advanced courses, and training to build the capacities of the management authority).

War crime trials The Ministry of Justice will continue to monitor the implementation of the Action Plans of the State Attorney's Office of the Republic of Croatia and the Ministry of the Interior concerning work on war crimes cases. Special focus will be placed on continuing the impartial and systematic processing of war crimes with assistance from all the auxiliary systems and resources and with the further enhancement of these systems and resources.

1.2 STATE ADMINISTRATION REFORM The Act on Salaries in the Public Sector will regulate the salaries and other material rights of all those employed in the public sector, the salaries monitoring system, the basic classification system, the systems of assessment, advancement and promotion of public servants, as well as other issues significant for the system of salaries in the public sector. The Draft Proposal of the Act is planned to be submitted to the Government of the Republic of Croatia in the third quarter of 2012, and the drafts of the implementing regulations accompanying the Act will be submitted in the fourth quarter of 2012, depending on the date when the Act is adopted. In the third quarter of 2012, the Draft Proposal of the Act on Amendments to the Act of the Right of Access to Information (Official Gazette 172/03, 144/10, 37/11 - Decision of the Constitutional Court of the Republic of Croatia and 77/11), is expected to be submitted to the Government of the Republic of Croatia in order to transpose Directive 2003/98/EC of the European Parliament and of the Council of 17 November 2003 on the re-use of public sector information. Since the implementation of the Operational Programme: "Administrative Capacity Development 2012 –2013 (OP ACD)" for the first six months of the Republic of Croatia's membership of the European Union (July – December 2013) has been abandoned, preparations for the development of the Operational Programme: "Administrative Capacity Development 2014 – 2020‖ will begin in 2012. The Operational Programme will aim at improving the functions of the public administration by speeding up the process of its modernisation (at national, local and regional level), and at strengthening the capacity and efficiency of Croatian public institutions. This will be funded from the structural instruments of the EU. The projects planned as part of OP ACD 2012 – 2013 will be implemented with the assistance of a Transition Facility as a special technical assistance instrument. In 2012, activities will continue related to the IPA 2008 project "Support to the Implementation of the General Administrative Procedure Act", worth EUR 1,666,667 (contracted amount: EUR 1,601,000). The project focuses on implementing three components: efficient monitoring of the implementation of the General Administrative Procedure Act (GAPA); training activities for the efficient implementation of GAPA; and raising public awareness of the benefits of implementing GAPA in the private and civil sector. The implementation of the project began on 16 November 2011, and is expected to last 24 months. The activities of the IPA 2009 Twinning Project "Twinning for the Managing Authority of the Operational Programme 'Administrative Capacity Development' (MA OP ACD) to ensure its functions and responsibilities related to the overall management and implementation of the OP" will be conducted in 2012. The Project's purpose is to additionally develop and strengthen the institutional and administrative capacities of the Ministry of Administration (MAd) as the OP ACD managing authority for performing the duties of managing, evaluating, supervising and controlling projects and programmes within the European Social Fund. The project is expected to last 18 months. In 2012, measures will continuously be conducted to improve the IT system, as will activities directed to the continuous maintenance of existing office premises and equipment. Implementation of the Action Plan for the Implementation of the Human Resources Development Strategy in the Civil Service 2010 – 2013 will also continue, provided that minimum financial funds are provided. The provision of training programmes for civil servants will continue in 2012. The training programmes will be delivered by the Civil Service Training Centre (in the Ministry of Administration), the State School for Public Administration, and through training programmes conducted by the Ministry of Regional Development and EU Funds and the Ministry of Foreign and European Affairs. Special attention will be given to conducting training programmes in the field of fighting corruption, strengthening the capacities of the OP managing authorities, and in acquiring the knowledge and skills to meet the commitments related to EU accession. The State School for Public Administration will implement the Programme for Managing Civil Servants, the Programme for the Advancement of Civil Servants, general EU programmes and human resources management and development programmes. A formal agreement has not yet been concluded between the Ministry of Administration and the State School for Public Administration to precisely define which of these authorities will conduct each of the particular training programmes for civil servants mentioned in the part related to education and training. However, since the State School for Public Administration is funded through the Ministry of Administration, this Ministry has been given as the implementing authority for the programme and as the body authorised to allocate funds from the State Budget to implement this programme.

1.3. HUMAN RIGHTS AND PROTECTION OF MINORITIES Citizen, political, economic and social rights The National Programme for the Protection and Promotion of Human Rights 2012 – 2015 will be drawn up in 2012. This document will steer efforts to improve, protect and advance human rights in the Republic of Croatia and will propose the measures to do so. The Programme will be drawn up pursuant to the recommendation of the Vienna Declaration which invites UN members to draw up national programmes/plans of action to protect and promote human rights. The adoption of the new National Strategy for Creating an Enabling Environment for Civil Society Development 2012 – 2016 is expected in the first quarter of 2012. The drafting of the National Strategy will be co-ordinated by the Government Office for Co-operation with NGOs, which will also conduct the procedure of consultations pursuant to the Code of Practice on Consultation with the Interested Public in Procedures of Adopting Laws, other Regulations and Acts (OG 140/09). Following the accession of the Republic of Croatia to the new global initiative of Open Government Partnership, an Action Plan will be developed to implement this initiative in the Republic of Croatia. This Action Plan is expected to be submitted for Government procedure by the end of the first quarter of 2012 at the latest. In line with the Organisational Development Strategy for the Human Resource Development Operating Structure and the Decision on strategic documents and the institutional framework for the utilisation of EU structural instruments in the Republic of Croatia, the Office for Co-operation with NGOs plans to recruit four persons by the end of 2012. One person will be recruited to the Office for Human Rights and National Minority Rights in the second quarter of 2012. Protection of the Rights of the Child and Young People The following activities are planned:  implement the measures of the National Plan of Activities for the Rights and Interests of Children 2006-2012;  draw up a Report on the Implementation of the National Plan of Activities for the Rights and Interests of Children for 2011;  draw up an Initial Report according to the Optional Protocol to the Convention on the Rights of the Child on the sale of children, child prostitution and child pornography;  implement the Programme of Activities for the Prevention of Violence among Children and Young People;  implement measures from the National Programme for Young People 2009–2013;  draft a Report on the Implementation of Measures of the National Programme for Young People for 2011;  implement measures from the National Strategy for the Prevention of Disturbed Behaviour of Children and Young People 2009–2012;  draft a Report on the Implementation of the National Strategy for the Prevention of Disturbed Behaviour of Children and Young People for 2011;  implement measures from the National Programme of the Alliance of Civilisations (2010 – 2012);  implement measures from the National Strategy on Combating Narcotic Drugs Abuse 2006 – 2012;  implement measures from the National Addiction Prevention Programme for Children and Youth in Educational Settings and in the Social Welfare System 2010 – 2014;  implement measures from the National Programme for the Protection and Promotion of Human Rights in the coming period;  implement measures from the National Programme for the Roma in the coming period;  mark International Youth Day on 12 August and the Anniversary of the Convention on the Rights of the Child on 20 November;  engage in marking the International Day against Drug Abuse on 26 June, and the Month of the Fight against Addiction from 15 November to 15 December;  implement the Memorandum of Understanding on Youth Mobility concluded between the Government of the Republic of Croatia and the Government of Canada;  implement measures from the National Population Policy;  draft a Report on the Implementation of the National Population Policy for 2011;  continue the practice of establishing co-operation with family centres, civil society organisations and units of local and regional self-government in implementing children and youth programmes;  provide administrative and professional support for the Population Policy Council of the Government of the Republic of Croatia;  publish and conduct a call for proposals for the "Family Friendly Enterprise" and "Family Friendly Local Community";  mark the International Day of Families – 15 May;  continue co-operation with civil society organisations, institutions and religious organisations that implement programmes for the benefit of families in implementing projects aimed at strengthening parenting competences in single-parent families, and in projects aimed at pregnant women, mothers of newborn babies, and their families;  continue the work of family centres to provide consultation services and assistance to families, as well as perform preventive work with families, children, young people, disabled people and other sensitive social groups.

Protection against domestic violence The following activities are planned:  provide financial support to counselling centres and shelters for victims of domestic violence;  implement measures from the National Strategy for Protection against Domestic Violence 2011-2016;  draft a Report on the implementation of the Protocol on Conduct in the Event of Domestic Violence in 2011;  celebrate 8 March – International Women‘s Day, 22 September – National Day of Combating Violence against Women, and 25 November – International Day for the Elimination of Violence against Women;  provide administrative and professional support to the Government Commission for Improving Protection against Domestic Violence, and to the Expert Commission for Monitoring and Improving the Work of Criminal and Misdemeanour Procedure Bodies, and the execution of sanctions related to protection against domestic violence at the Ministry of Social Policy and Youth;  implement the project of monitoring and professionally evaluating the provision of services and assistance to victims and perpetrators of domestic violence, as well as projects related to the psycho-social treatment of domestic violence perpetrators;  print a Protocol on Procedures in Cases of Domestic Violence;  print the National Strategy for Protection against Domestic Violence 2011 – 2016.

Persons with disabilities The following activities are planned:  implement measures of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007 – 2015; to monitor and co-ordinate the implementation of the National Strategy;  continue the process of co-ordination at all levels of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007 – 2015, and continuously organise consultative and educational workshops;  draw up a Report for 2011 on the Implementation of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007 - 2015;  draw up a National Operational Plan and guidelines for the drafting of local and regional Operational Plans;  continue co-operation with associations of persons with disabilities and associations that act through programmes for the benefit of persons with disabilities, which includes implementing projects directed at meeting the needs of persons with disabilities, aiming at their social empowerment;  provide a personal assistance service for persons with the most severe types and degrees of disability who were previously included in the programme, and increase within the means available the number of beneficiaries of this service;  evaluate the programme of providing a personal assistant;  widen the network of beneficiaries of the personal assistant service by applying to the European Social Fund;  draw up a Draft Proposal of the Personal Assistant Act and ensure its adoption, and draft accompanying ordinances;  provide support in overcoming communication barriers by providing sign language interpreting services;  prepare a Draft Proposal of the Act on the Croatian Sign Language;  provide support in extra-institutional forms of care for children with developmental disabilities - spreading an early intervention network for children with neurodevelopmental disorders and developmental disabilities;  mark the International Day of Persons with Disabilities and national days of persons with various types of disability;  implement activities related to the Joint Memorandum on Social Inclusion in line with the Guidelines for planning the development of a social services network at county level and the Framework for monitoring the implementation of the social services network 2009 – 2013.

Gender equality The Government Office for Gender Equality will continue in 2012 to implement the provisions of the Gender Equality Act and the measures of the National Policy for the Promotion of Gender Equality 2011 – 2015, as well as measures related to the implementation of the EC Strategy for Equality between Women and Men 2010 – 2015. The Office for Gender Equality will also continue to participate in the two-year Programme of sharing best practices in the area of gender equality within the PROGRESS Community Programme, Component V: Gender Equality. In the context of strengthening administrative capacities, it is planned to recruit a trainee/expert assistant to work on the co-ordination of the implementation of the measures laid down in the National Policy for the Promotion of Gender Equality 2011 – 2015, and participate in the implementation of Component V of the PROGRESS Community Programme - Gender Equality.

Free Legal Aid In October 2011, a Twinning Light project worth EUR 230,000 began to be implemented. The Project should last until April 2012. The main outcomes of the Project include: improvement in the legal framework related to free legal aid; improvement in the system of implementing free legal aid; better access to information related to free legal aid; and strengthening the administrative capacities that participate in the implementation of free legal aid.

Prison system In order to protect and promote the human rights of prisoners and other persons who have been admitted to penal bodies pursuant to a court decision, and primarily in order to reduce the overcrowding of prisons and penitentiaries, activities aimed at expanding existing facilities and the construction of new accommodation capacities have continued. After the completion of the Glina Penitentiary for the accommodation of 420 prisoners, the old facility for the accommodation of prisoners of the same Penitentiary is currently under renovation. The completion of works on the building of the old accommodation facility at the Glina Penitentiary and the renovation of the facility for visitors within the Penitentiary are planned for 2012. The framework agreement between the Republic of Croatia and the Council of Europe Development Bank related to the project of extending and renovating the prison in Zagreb is under preparation. The Operational Plan and Feasibility Report for the Project of building a penitentiary – prison complex in Šibenik have been prepared. In order to strengthen its administrative capacities, the Prison System Directorate of the Ministry of Justice has been included as a potential beneficiary of the IPA TAIB 2012- 2013 projects, entitled “Support to the Prison System of the Republic of Croatia”, with allocated funds to the amount of EUR 4.69 million.

Probation The Action Plan for the Development of the Probation System in the Republic of Croatia 2010 – 2014, adopted by the Government of the Republic of Croatia on 10 June 2010, will continue to be implemented in 2012. The Action Plan for 2012 provides for the recruitment of 40 probation officers. The implementation of the IPA 2008 project "Development of a Probation System in the Republic of Croatia", which began in June 2011, will continue. The overall cost of the project amounts to EUR 1,800,000 (the EU contribution is EUR 1,635,000). The duration of the project is two years. The project also covers most of the probation officers' training. Nine probation offices were opened in 2011, and by the end of 2011, another probation office will start operating in Varaţdin. The probation offices in Zadar and Dubrovnik will start operating in 2012. The procurement of vehicles needed to perform probation tasks will also take place in 2012.

National minorities With a view to promoting the rights of national minorities, the Government Office for Human Rights and National Minority Rights plans to conduct the following activities in 2012:  implement the Constitutional Act on the Rights of National Minorities (to draft a Progress Report in 2011, and co-ordinate implementation in 2012);  implement an Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities 2011 – 2013 (draft a Progress Report in 2011, and co- ordinate implementation in 2012);  draw up the new National Programme for the Roma (progress report on the National Programme for the Roma in 2011, and co-ordinate implementation in 2012);  mark 8 April, International Roma Day;  implement the Action Plan for the Decade of Roma Inclusion 2005 – 2015 (draft a Progress Report in 2011, and co-ordinate implementation in 2012);  organise seminars on the implementation of the Framework Convention for the Protection of National Minorities;  continue the organisation of seminars on improving the work of the national minority councils and representatives in all counties;  organise seminars on combating prejudices and stereotypes towards national minorities in the media;  organise training seminars for young members of the Roma national minority;  related to the presidency of the Republic of Croatia of the Decade of Roma Inclusion (2012), promote the programme of Roma integration on the basis of the EU Framework for National Roma Integration Strategies, organise Management Board meetings and thematic workshops, and ensure co-ordination between the EU and the member states of the Decade of Roma Inclusion;  provide continued support to the Roma national minority through the implementation of IPA 2008 (national contribution to the amount of HRK 2,449,000), multi- beneficiary IPA 2010 ,"Best Practices for Roma Integration", and multi-beneficiary IPA 2011, "Promoting Human Rights and Protecting Minorities in the Western Balkans";  continue the development of projects related to strengthening the capacities of national minority councils (IPA 2012), and the integration of members of the Roma national minority (IPA 2013);  develop projects of assistance to national minorities with sources of financing outside EU funds (for example, the Decade Trust Fund, the MtM Fund, and the Central European Initiative);  continue strengthening administrative and technical capacities of the Office for Human Rights and National Minority Rights.

In 2012, the Ministry of Science, Education and Sports will continue to implement education in the language and script of national minorities and, in co-operation with competent institutions, will continue to conduct the following activities:  hold seminars on education in the language and script of national minorities for members of national minorities and representatives of competent authorities and institutions;  organise expert discussions on including contents related to the identity and culture of national minorities in regular school programmes (by school subjects);  train teachers on national minority rights as part of the Education for Human Rights programme;  draw up and publish a Roma language and culture programme (C model);  provide textbooks for teaching in the language and script of national minorities in secondary schools;  adopt and monitor the implementation of necessary regulations and align the existing ones with the Constitutional Act on the Rights of National Minorities and the Act on Education in the Language and Script of National Minorities;  adopt necessary teaching curricula for all models of education in the language and script of national minorities (models A, B and C) pursuant to the National Curriculum Framework. In 2012, pursuant to suitable measures from the Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities 2011 – 2013 (AP ICARNM), seminars and training courses for newly elected members of councils and representatives will continue, in order to raise their awareness of their functions and authority, with the aim of improving the efficiency of national minority councils and representatives in units of local and regional self-government. In co-operation with the Local Democracy Academy, the Ministry of Administration will organise seminars for representatives of units of local and regional self-government and members of national minority councils and representatives of national minorities on the activities of national minority councils and representatives in self-government units. In 2012, special attention will be given to monitoring and overseeing the alignment of the statute and the adoption of recruitment plans in units of local and regional self- government to secure appropriate representation of members of national minorities in representative, executive and administrative bodies of local units. Monitoring will be conducted of the adoption and implementation of the recruitment plan in state administration bodies pursuant to the Plan of Recruitment of National Minorities in state administration bodies 2011 – 2014 (long-term plan). Pursuant to AP ICARNM 2011 – 2013, forums and regional consultations will be organised dealing with the right and entitlement of national minorities to priority in employment under the same conditions in state administration and local self-government bodies. According to the Calendar of Statistical Data Issues 2012, publication is expected in December 2012 of data on the population according to citizenship, nationality, religion and mother tongue from the Census on Population, Households and Dwellings in the Republic of Croatia conducted in 2011. The above activities are permanently being implemented and such implementation will continue in 2012.

Return of Refugees Housing care for former tenancy rights holders (FTRHs) The benchmark for 2009, according to the Revised Action Plan, was fully achieved by 30 June 2011, providing a total of 2,070 apartments for FTRHs, who also received the keys of the assigned apartments and houses. A total of 206 housing units beyond the benchmark were provided by the end of 2011. A plan for resolving the issue of FTRHs not covered by the Action Plan by 2014 was drawn up at the beginning of 2011. It was assessed that 2,350 applications will be positively resolved in administrative terms and housing units for these beneficiaries will be provided between 2011 and 2014 – so far, 905 applications have been positively resolved in administrative terms, including 206 families that have already been provided with available apartments. Repossession of occupied property The process of repossession of occupied property is nearing completion, and so far 19,279 housing units have been returned to their owners. Completion has been foreseen of the outstanding 10 court proceedings regarding the repossession of property, as well as 15 cases related to the payment of damages for unsolicited investment in occupied property. The completion of all these procedures related to the repossession of property depends on the pace of the court proceedings. Funds for this purpose were secured in the State Budget for 2011, and have also been earmarked in the State Budget for 2012 and 2013. Renovation of housing stock damaged or destroyed during the war The programme of reconstruction and repair of the remaining housing stock damaged or destroyed during the war will continue in 2012. The programme of reconstruction of 550 family houses with the highest degree of damage is underway and is expected to end by mid 2012. The payment of financial assistance to those entitled to the repair of damaged family houses which suffered 1st – 3rd degree damage is also planned. This will include all the beneficiaries of the right to reconstruction and repair in the realisation of the programme. Thus, the programme of reconstruction and repair of the housing stock damaged in the war in Croatia will be completed, except for individual cases (involving relocation, unresolved property relations, substitution of the right to reconstruction, etc.). The backlog of pending appeals has mostly been eliminated. Co-operation with neighbouring states to accelerate the return of refugees The Government of the Republic of Croatia is co-operating intensively with the Governments of other countries in the region in terms of finding a final and permanent solution for the refugee issue. A number of activities are underway with the common goal of solving the refugee issue in the region. These activities will allow refugees to make a final choice between returning to the country from which they fled or to integrate in the local community of the country of refuge (regional project). This was confirmed by a ministerial declaration among four countries in the region – Croatia, Serbia, Bosnia and Herzegovina, and Montenegro – which was signed in Belgrade on 7 November 2011 by the ministers of foreign affairs. A regional project has been prepared which includes four countries in the region – Croatia, Serbia, Bosnia and Herzegovina, and Montenegro. The project focuses on finding a final solution for refugees who are still residing in refugee (collection) centres and alternative accommodation, as well as for those persons who still find themselves in a particularly difficult social situation – around 75,000 potential beneficiaries. The funds for this project should be provided at the planned donor conference in spring 2012. Representatives of the Republic of Croatia are actively participating in the preparation of the project and consider that the housing care and renovation programmes, which are conducted in Croatia, may serve as an example of good practice to other countries in the region. Co-operation with Bosnia and Herzegovina continues through the implementation of the Programme of Assistance of the Government of the Republic of Croatia for the return of Croats to Bosnia and Herzegovina. This programme concerns the delivery of construction material for the reconstruction of houses of Croatian returnees, for which HRK 17 million was earmarked in the State Budget in 2011, while HRK 20 million is planned in 2012, and HRK 35.9 million in 2013. Co-operation with the International Criminal Tribunal for Former Yugoslavia (ICTY) The Republic of Croatia will continue to co-operate fully with the International Criminal Tribunal for Former Yugoslavia.

1.4. REGIONAL CO-OPERATION

MULTILATERAL CO-OPERATION In the second year of its presidency of the Alps-Adriatic Working Community (AAWC), Croatia will continue its activities related to determining the future organisation of this Community and its operating structure. With this goal in mind, Croatia will co-ordinate the Expert Group on the Future of the AAWC, where the remaining members will join efforts to define the future operations of the Working Community. Croatia will organise regular meetings of the Presidency and the Working Committee, as well as the Plenary Assembly at the end of 2012, where it will pass on the presidency to Carinthia. Croatia will also continue to participate in political and area-specific meetings within the South-East European Cooperation Process (SEECP) and provide full support to the Serbian presidency, which has placed special stress on co-operation in fighting organised crime. In this sense, special attention will be given to the co-ordination and co- operation of the police and judicial authorities of all SEECP countries. Democratic values and European standards will continue to be promoted with the aim of speeding up the integration of all the countries of Southeast Europe into the European Union. Support will also be given to project-oriented co-operation through synergy between SEECP and RCC activities. The Republic of Croatia will take a pro-active part in project-oriented regional co-operation implemented within the Regional Cooperation Council (RCC). The implementation of the RCC Strategy and Work Programme 2011 – 2013 forms a good basis for the elaboration of further activities in 2012. The firm support given to the adopted Strategic Document and Action Plan in the field of justice and home affairs reaffirms the role of the Republic of Croatia as a strong advocate for enhancing the security and political stability of SEE. The competent authorities will continue to participate in operational activities through the relevant Steering Group and give full support to strengthening regional co-operation in fighting all forms of criminal activities. Providing support for the transition of the so-called Ljubljana Process to regional ownership and for the formation of a relevant Social and Cultural Group, with the permanent seat of the Secretariat in Centinje, Montenegro, is proof of the Republic of Croatia's full contribution to the regional policy of preserving tradition and cultural heritage. The Republic of Croatia welcomes the transfer of competence for the South-East Europe Investment Committee (SEEIC) from OECD to the RCC, and expects it will have a full effect on the economic development of the region in 2012. The Republic of Croatia expects that in the coming period the role of the RCC as the leading body for project co-operation in SEE will be fully affirmed, and that the results of its activity will be visible. In these terms, the development of a strong network of focal points, which will co-operate closely with the RCC on regional projects within its competence, will continue at the national level. In this way, its regional competitiveness will grow and its socio-political identity will continue to strengthen. The Republic of Croatia expects that the transition of the Southeast European Cooperative Initiative (SECI) into a more advanced and sophisticated organisational form of co-operation, as is the Southeast European Law Enforcement Centre (SELEC), will create a significantly more advanced system of regional co-operation for fighting cross- border and organised crime in the region. The Republic of Croatia has also shown its full support for this process by nominating its candidate for the position of first director of SELEC. The active participation of Croatia in all SELEC working groups will continue, as will its active participation through the appointed liaison officer in the SELEC Centre in Bucharest. The Republic of Croatia will continue to provide strong support to the work of the Migration, Asylum, Refugees Regional Initiative (MARRI), expecting that the realisation of the Strategy and Action Plan for 2011 – 2013 will allow for the further affirmation of regional co-operation in monitoring the issue of migration, asylum and refugees. The Republic of Croatia is party to the Agreement on the Co-operation of Border Police Services in the Airports of Countries in the Region, and holds the view that its enforcement will strengthen operational capacities. In the coming period, the Republic of Croatia will additionally intensify its activities concerning the implementation of the EU Strategy for the Danube Region (the Danube Strategy). Through the full co-operation of state administration bodies and regional and local authorities, Croatia will work on implementing the activities defined in the Action Plan of the Danube Strategy, especially within the framework of Priority Areas in which it has the role of co-coordinator (PA6 – to preserve biodiversity, landscapes and the quality of air and soils, and PA8 – to support the competitiveness of enterprises, including cluster development). Under the chairmanship of the Republic of Croatia, the International Sava River Basin Commission (SC) will continue its active engagement as part of the process of implementing the EU Danube Strategy in 2012. As an institution identified by the EC as the competent body for the sustainable management of the River Sava, as an important river of the Danube River basin, the SC will manage several strategic projects specified in the Danube Strategy Action Plan, which concern the above field of activity. In the light of the common European perspective, the Republic of Croatia, as part of the Central European Initiative (CEI), will actively advocate the further strengthening of the co-operation of its members in the process of European integration. The exchange of experiences and the mutual assistance of its members, the fostering of political stability, economic progress and good neighbourly relations remain its operational goals. By selecting projects of regional importance, the Republic of Croatia is attempting to have a positive impact on the political and economic situation in the region, especially in neighbouring countries. In the coming period, Croatia is interested in seeing the CEI as an instrument of regional co-operation, which will help SEE countries in further strengthening relations with EU institutions, facilitating the domestic application of European standards, and the building of administrative capacities that are needed in the process of negotiations. As part of the policy of European macro-regional strategies, Croatia will strive to ensure that the CEI takes the role as an integrating factor in further connecting regions, sub-regions and local communities. Croatia sees such constructive activity within the CEI as an unquestionable contribution to the fusion of Europe. Co-operation within the Adriatic-Ionian Initiative (AII) will be directed to intensifying mutual relations with a view to prompting development among member states, and especially promoting the process of exchange of knowledge and information, and the preparation of infrastructural and other developmental and commercial projects. An increasing number of projects deal with adjustment to European standards and the active involvement of AII member states in the process of European integration, with the support of Italy, Greece and Slovenia, which are both AII and EU member states. The strong support and involvement of the EU in its activities provide added value and give importance to the Initiative. A general strategic goal of the AII focuses on fire protection (introduced during the Croatian presidency) and the development of regional tourism. During the Italian and Montenegrin presidency, these two strategic goals were regarded as important, and, in this, Croatia has the support of Greece, Bosnia and Herzegovina, Montenegro and Albania. In 2012, Croatia will highlight the importance of the AII in terms of political dialogue and in strengthening common interests in the Adriatic-Ionian basin. With this in mind, Croatia will continue its dialogue with AII partners on a common strategy of co-operation for the countries of the Adriatic and Ionian Sea and with other interested countries in the region. Focus is primarily placed on the ecological protection of the Adriatic and on economic aspects.

BILATERAL CO-OPERATION Italian Republic A Memorandum of Co-operation was signed in 2009 between the Government of the Republic of Croatia and the Government of the Italian Republic, which established regular political dialogue and intensive inter-institutional co-operation. The third meeting of the Co-ordination Committee of Ministers or the Republic of Croatia and the Italian Republic is planned to take place in 2012. Recent meetings at the highest level have confirmed the friendly relations between the two countries, which have been developing towards partnership relations. The resolution of outstanding issues will continue in the spirit of a common European future. Croatia expects Italy to be among the first countries to ratify the Treaty of Accession of the Republic of Croatia to the EU. Priorities:  to maintain bilateral meetings at the highest level;  to enhance overall co-operation by implementing the Memorandum and holding meetings of the Co-ordination Committee of Ministers;  to attract more Italian investment in the Republic of Croatia; to further intensify economic co-operation;  to continue dialogue aimed at resolving outstanding issues.

Republic of Slovenia The positive atmosphere achieved in relations between Croatia and Slovenia needs to be maintained, both at the political and public level in the two countries, with the aim of resolving outstanding issues in a mutually acceptable manner. It is in the strategic interest of both sides to continue to develop positive and friendly relations in all areas. The agreements reached in recent years have given an additional boost to further improving overall mutual relations. Thanks to this positive trend, Croatia is counting on Slovenia to ratify the Treaty of Accession of the Republic of Croatia to the EU in 2012. Priorities:  to maintain the positive trend of mutual co-operation and dialogue in resolving outstanding issues;  to enforce the Arbitration Agreement;  to strengthen economic co-operation;  to continue talks on energy and infrastructure traffic connections, on environmental protection, and on water management;  to boost consultations on EU and NATO matters, and consultations on the situation and stabilisation of the situation in Southeast Europe, and to agree on continuing co- operation within the Brdo Process.

Hungary The Republic of Croatia will continue its intensive contacts with Hungary, at all levels, especially in the field of energy, environmental protection, tourism, infrastructural projects, cross-border co-operation, culture and the protection and improvement of national minority rights. After the strong support of Hungary to the Croatian process of EU accession, and especially during the final stage of negotiations during the Hungarian presidency, and following the signing of the Treaty of Accession of the Republic of Croatia to the EU, we expect that this will soon be ratified by the Hungarian Parliament. Priorities:  to maintain bilateral contacts at all levels;  in the context of strengthening economic co-operation, especially in the field of energy, we expect a resolution of the issue regarding the relationship between INA and MOL;  for the Treaty of Accession of the Republic of Croatia to the EU to be ratified in the Hungarian Parliament;  to achieve an agreement on the further pace of bilateral co-operation – potentially continuing the practice of holding joint sessions of the Croatian and Hungarian governments;  to hold the 7th session of the Mixed Co-operation Committee between the Government of the Republic of Croatia and the Government of Hungary.

Republic of Serbia The Republic of Croatia is engaged in further improving the quality of relationships with the Republic of Serbia in the desire of raising them to partnership level. The exchange of high-level visits continued in 2011. The Republic of Croatia will advocate constructive dialogue with the Republic of Serbia to resolve the remaining open issues. The year of 2011 was marked by the hard work of inter-state commissions in charge of certain open issues. They are expected to continue their work in 2012. Just as it has done so far, the Republic of Croatia will be active in transferring and sharing experiences related to the process of European integration, and in strengthening the regulatory framework of agreements. Serbia will be the first country in the region which the MFEA will visit, which shows the significance of the relationship between Croatia and Serbia. Priorities: - to provide further support and to share experience related to European integration; - to continue working on open issues; - to strengthen the regulatory framework of agreements.

Kosovo The Republic of Croatia wishes to develop co-operation in all areas according to the principles of equality and reciprocity. With the aim of intensifying economic relations, the activities of Croatian economic operators will be directed towards stronger presence on the Kosovo market. Knowledge and experience will continue to be actively shared in the process of EU accession, and assistance will be provided in the training of staff in Kosovo – related to the justice system, police co-operation, and institutional building. Croatia will continue to support the stronger engagement of the EU through the deployment of the EULEX mission over the entire territory of Kosovo, and to actively participate in EU, NATO and UN projects. The Republic of Croatia, as part of regional initiatives and multilateral associations, will advocate the equal involvement of the Republic of Kosovo, and is prepared to support Kosovo's membership of EBRD in the same way as it supported Kosovo's membership of the IMF and the World Bank. Special attention will continue to be paid to the status and protection of Croatians living in the Republic of Kosovo. Priorities: - to improve economic co-operation; - to devote special attention to the status and protection of Croatians living in Kosovo.

Montenegro The Republic of Croatia and Montenegro have very good relations based on the principles of equality and reciprocity. Croatia is continuing to strongly support Montenegro and its rapprochement to the EU and NATO, and joint activities are planned in these areas. The work of the Joint Commission in charge of drafting a special agreement on the submission of the border dispute before the International Tribunal in The Hague is expected to continue. An arrangement is expected in relation to the future contractual regulation of issues regarding border crossings and local border traffic, which will have to be aligned with EU legislation and standards. Further negotiations with regard to the Agreement on Social Insurance and the Contract on Legal Assistance in Civil and Criminal Matters are also expected. Particular bilateral agreements will also have to be aligned with European standards. Priorities: - to further support and share experiences on the path to Euro-Atlantic integration; - to continue work on drafting a special agreement on the submission of the border dispute before the International Tribunal in The Hague; - to strengthen the regulatory framework of agreements.

Bosnia and Herzegovina The Republic of Croatia and Bosnia and Herzegovina are enjoying partnership and good neighbourly relations. The strengthening of the stability of Bosnia and Herzegovina and the creation of a functional country with strong European prospects are crucial for the stability of the entire region. The Republic of Croatia welcomes the agreement of six leading national political parties in Bosnia and Herzegovina on the formation of a Council of Ministers. This will allow for the regular operation of government institutions, which is a precondition for the legal security and progress of the country. Croatia welcomes the fact that the Council of Ministers of Bosnia and Herzegovina will include the legitimate representatives of all three constitutive nations, which will create functional stability for the adoption of necessary decisions that are important for the future of Bosnia and Herzegovina. The Republic of Croatia encourages all political actors to continue their mutual dialogue in the spirit of compromise, with the aim of the further progress of Bosnia and Herzegovina towards Euro-Atlantic integration. Special attention will continue to be devoted to Croatians in Bosnia and Herzegovina, in line with the constitutional obligation and the obligation derived from the co-signing of the Dayton Peace Agreement. The process of necessary constitutional reforms in Bosnia and Herzegovina will be intensively monitored, as will the process of preserving and advancing the constitutional status of Croatians as one of the three constitutive people. Progress is expected in negotiations regarding new bilateral agreements on border crossings and local border traffic, which must be aligned with EU standards and legislation. Attention will also be given to resolving the state border issue, in other words, resolving the status of the Treaty on the State Border, which is temporarily applied. Priorities: - to further support and share experiences on the path to Euro-Atlantic integration; - to take care of Croatians in Bosnia and Herzegovina; - to continue working on open issues; - to strengthen the regulatory framework of agreements.

Macedonia Intensive co-operation and political dialogue concerning common interests and goals will continue, also with regard to EU accession and to the active support that the Republic of Croatia is providing to Macedonia for NATO membership. Co-operation will continue in all important strategic regional issues. Economic co-operation will become more intensive, both regarding trade in goods and Croatian direct investments in Macedonia. The common concern for the Macedonian community in the Republic of Croatia, and for the Croatian community in the Republic of Macedonia, will continue, as will the work of the Mixed Committee for the Implementation of the Agreement on the Protection of the Croatian Minority in the Republic of Macedonia and the Macedonian Minority in the Republic of Croatia. The work of the joint working group to resolve current problems in the operation of Croatian companies in Macedonia and Macedonian companies in the Republic of Croatia will be encouraged. In 2012, the Republic of Croatia will continue to offer expert assistance to the Republic of Macedonia as part of the process of accession to Euro-Atlantic integration. Joint work on succession from the former SFRY will be encouraged. Priorities: - to continue regional co-operation; - to improve bilateral economic co-operation; - to promote the protection of minorities; - to encourage co-operation on succession from the former SFRY.

Albania The development of very good relations between the Republic of Croatia and the Republic of Albania will continue. The two countries have no open or outstanding issues. The Republic of Croatia will provide support to the Republic of Albania in the process of rapprochement to the EU pursuant to Article 12 of the SAA, and will continue co-operation through common activities within regional and sub-regional initiatives and forums. The main focus will be on common interests in strengthening economic co-operation, especially as part of the Adriatic-Ionian Initiatives, and the establishment of sea and air connections between the two states. The initiative to build an Ionian-Adriatic gas pipeline – connected to TAP (Trans-Adriatic Pipeline) – will continue to be promoted. Dialogue continues between the Government of the Republic of Croatia and the Government of the Republic of Albania on the possible construction of a regional nuclear power plant, perhaps in Albania. Priorities: - to continue high-level bilateral meetings; - to continue regional co-operation; - to improve bilateral economic co-operation.

1.1 JUDICIAL REFORM

Legislative activities b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of Government No. Subordinate legislation authority subordinate legislation the acquis procedure

Framework Criteria for the Evaluation of 1 MJ Courts Act (OG 122/10, 27/11), Art. 72 Obligation arising from accession 2nd quarter 2012 Judges negotiations

c) Strategies, Action Plans or Programmes

Competent To be submitted for Government procedure No. Measure authority

Strategy of Activities and Development of the Judicial Academy as a 1 Judicial Academy 1st quarter 2012 Public Institution in 2012 Document Management and Archiving Strategy for the Land Registry 2 MJ 1st quarter 2012 Digital Archives System

3 Land Registry Administration Development Strategy MJ 1st quarter 2012

Action Plan to Resolve the Backlog of Cases and Verify Land 4 MJ 1st quarter 2012 Registers in the Zagreb and Split Land Registry Departments

5 Cadastral Survey Programme 2011–2018 MJ 1st quarter 2012

d) Administrative capacities

Adoption / implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES

Recruitment of 10 members of staff in the Judicial Academy MJ 2nd quarter 2012 HRK 912,000.00 EDUCATION AND TRAINING 2012 – 2014 World Bank Loan HRK 2,906,000 IT training for the Joint Information System (JIS) MJ IPA 2008: HRK 1,500,000 Domain training of land-registry staff MJ 2012 – 2014 World Bank Loan HRK 4,500,000 TECHNICAL AND IT EQUIPMENT

Justice Sector Support Project (JSSP) G-12 ICMS Upgrade Project MJ 2012 World Bank Loan 7888-HR): EUR 374,000 JSSP G-11 CTS Upgrade Project SAO RC 2012 World Bank Loan 7888-HR): EUR 870,000 JSSP CS04 Roll-out of CTS SAO RC 2011 – 2013 World Bank Loan 7888-HR): EUR 238,000 Procurement of the Generic Cabling (local computer and telephony 2012 MJ World Bank Loan 7888-HR): EUR 550,700 network and power supply installations), IFB No: G-2 IPA 2009 - Misdemeanour Court Joint Case Management System MJ and High Misdemeanour 2012 and 2013 Indicative EUR 567,000 IPA 2009; EUR (JCMS) Upgrade (misdemeanour courts) Court 63,000 State Budget IPA 2009 - “Supply of IT Equipment and LAN Infrastructure to Selected MJ and High Misdemeanour 2012 Indicative EUR 626,250 IPA 2009; EUR Misdemeanour Courts” Court 208,750 State Budget IPA 2009 - Further Support to the Misdemeanour Courts and MJ and High Misdemeanour 2012 and 2013 Indicative EUR 855,000 IPA 2009; EUR Development of ICMS Compatible Modules Twinning Court 45,000 State Budget 2012 Indicative EUR 207,000 IPA 2009; EUR IPA 2009 "Strengthening the administrative capacities in the MJ―" MJ - Secretariat 23,000 State Budget IPA 2010 – Development of IT application for the Sector for International 2012 and 2013 Indicative EUR 300,000 IPA 2010; EUR MJ Legal Assistance 33,333 State Budget IPA 2010 – Establishing IT functionalities of the Enforcement System of 2012 and 2013 Indicative EUR 270,000 IPA 2009; EUR MJ RC 30,000 State Budget IPA 2010 – Improvement of the Enforcement System in the RC – 2012 Indicative EUR 85,000 IPA 2009; EUR MJ purchase of IT equipment 15,000 State Budget IPA 2010 – Improvement of the Enforcement System in the RC – 2012 and 2013 Indicative EUR 140,000 IPA 2009; EUR MJ Twinning Agreement 60,000 State Budget IPA 2008 – Development of a One-Stop-Shop for the Joint Information 2012 Indicative EUR 700,000 IPA 2008; EUR System of Land Registry and Cadastre and Consolidation of Land MJ 55,300 State Budget Registry Data IPA 2009 - "Professional development of judicial advisors and future 2012 – 2013 Indicative EUR 1,017,000 IPA 2009; EUR judges and state attorneys through the establishment of a self- Judicial Academy 52,632 State Budget sustainable training system" Twinning Agreement IPA 2009 - "Professional development of judicial advisors and future 2012 Indicative EUR 100,012 IPA 2009; EUR judges and state attorneys through the establishment of a self- Judicial Academy 33,337 State Budget sustainable training system" - supply IPA 2008 – "Strengthening the work of the State School for Judicial 2012 Indicative EUR 190 000 IPA 2008; EUR 10 Judicial Academy Officials“ 000 State Budget Procurement of IT equipment for the Joint Information System (JIS) MJ – 2012 – 2014 - successively WB Loan: HRK 1,483,500 Sector for Land Registry Law IPA 2010: HRK 3,375,000 Procurement of IT equipment for the Digital Archives 2012 WB Loan: HRK 750,000 MJ IPA 2010: HRK 1,875,000 ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Beginning of the work of the Administrative Court in Zagreb, the 1st quarter 2012 Administrative Court in Rijeka, the Administrative Court in Split and the MJ Administrative Court in Osijek Beginning of the work of the Municipal Labour Court in Zagreb MJ 1st quarter 2012 OTHER The end of the project of strengthening the efficiency of labour 2012 MJ adjudication in the Republic of Croatia

Suppression of corruption

Legislative activities c) Strategies, Action Plans or Programmes

Competent To be submitted for Government procedure No. Measure authority

1 Action Plan accompanying the Anti-corruption Strategy MJ 1sr quarter 2012

Administrative capacities

Adoption / Measure Competent authority implementation Planned budgetary funds deadline EDUCATION AND TRAINING

Strengthening the capacities for implementing EU structural mechanisms MAd 1st – 4th quarter 2012 16,800.00 Suppressing Corruption - basic course MAd 1st – 4th quarter 2012 14,000.00 Suppressing Corruption - advanced course MAd 1st – 4th quarter 2012 21,000.00 Prevention of corruption MAd 1st – 4th quarter 2012 21,000.00

Public procurement seminar MAd 1st – 4th quarter 2012 108,000.00 Public access to information - basic course MAd 1st – 4th quarter 2012 2,800.00 Public access to information - advanced course MAd 1st – 4th quarter 2012 2,800.00 Training to boost the capacities of the managing authority MAd 1st – 4th quarter 2012 40,000.00 1.2 STATE ADMINISTRATION REFORM

Legislative activities a) Legal provisions:

To be submitted for Competent Government No. Legislative measure To be aligned with the following acts of the acquis authority procedure

MAd 1 Act on Salaries in Public Services Obligation arising from accession negotiations 2nd quarter 2012 MF

Act on Amendments to the Act of the Right of Directive 2003/98/EC of the European Parliament and of the Council of 17 2 MAd 3rd quarter 2012 Access to Information November 2003 on the re-use of public sector information

b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of Government No. Subordinate legislation authority subordinate legislation the acquis procedure

MAd, MF, ministries responsible Implementing regulations for specific 1 accompanying the Act on Salaries in Act on Salaries in Public Services Obligation arising from accession 4th quarter 2012 public Public Services negotiations services, all other state bodies

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline EDUCATION AND TRAINING

Conducting exams for ethics commissioners MAd 1st – 4th quarter 2012 16,800.00 Suppressing Corruption - basic course MAd 1st – 4th quarter 2012 14,000.00 Suppressing Corruption - advanced course MAd 1st – 4th quarter 2012 21,000.00 Prevention of corruption MAd 1st – 4th quarter 2012 21,000.00 Public procurement seminar MAd 1st – 4th quarter 2012 108,000.00 Public access to information - basic course MAd 1st – 4th quarter 2012 2,800.00 Public access to information - advanced course MAd 1st – 4th quarter 2012 2,800.00 Training to boost the capacities of the managing authority MAd 1st – 4th quarter 2012 40,000.00 Implementing an e-learning training programme in the field of combating MAd 1st – 4th quarter 2012 110,000.00 corruption TECHNICAL AND IT EQUIPMENT

Improvement of the IT system MAd 2012 State Budget

Continuous maintenance of the existing office premises and equipment MAd 2012 State Budget

OTHER Co-financing of the IPA 2008 project "Implementation of the General HRK 1,216,000.00 of national co- Administrative Procedure Act" MAd 1st – 2rd quarter 2012 financing of the project from the IPA 2008 pre-accession programme Implementing the Twinning IPA 2009 project ―Technical assistance for the further strengthening of the Managing Authority of the Operational HRK 550,000.00 of national co- Programme - Administrative Capacity Development to prepare it to MAd 2nd – 3rd quarter 2012 financing of the project from the IPA perform its duties and responsibilities concerning the management and 2009 pre-accession programme implementation of the Operational Programme" Developing additional training programmes for current and future leading State School for Public 1st – 4th quarter 2012 7,200.00 civil servants Administration Adjusting current training programmes and developing new ones in conformity with the current and future needs of the civil service (acquiring State School for Public 1st – 4th quarter 2012 95,000.00 knowledge and developing skills needed to meet the obligations of EU Administration accession and membership). Developing new programmes with appropriate contents concerning the ethical conduct of civil servants in their mutual relations, in their relations towards the public and other users of their services, and concerning non- MAd 1st – 4th quarter 2012 45,600.00 corruptive behaviour in the civil service in line with the topic and purpose of the programme that is being implemented. Improvements are planned in the access to information about training programmes in the area of fighting corruption (producing flyers, posters, MAd 1st – 4th quarter 2012 15,000.00 brochures and newsletters). Holding meetings with ethics commissioners in order to stress the MAd, ethics commissioners 1st – 4th quarter 2012 No additional funds are needed importance of ethical conduct Organising and holding meetings with civil society organisations with the aim of encouraging the co-operation of civil society in the conducting MAd, all state authorities 1st – 4th quarter 2012 15,000.00 training about the suppression of corruption.

1.3 HUMAN RIGHTS AND PROTECTION OF MINORITIES Legislative activities c) Strategies, Action Plans or Programmes

Competent To be submitted for Government procedure No. Measure authority National Programme for the Protection and Promotion of Human Office for Human Rights and 1 2nd quarter 2012 Rights 2012 - 1215 National Minority Rights Office for Co-operation with NGOs National Strategy for Creating an Enabling Environment for Civil 2 of the Government of the Republic 1st quarter 2012 Society Development 2012 – 2016 of Croatia Office for Co-operation with NGOs Action Plan for the Implementation of the "Open Government 3 of the Government of the Republic 1st quarter 2012 Partnership" Global Initiative in the Republic of Croatia of Croatia Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Office for Human Rights and Recruitment of one member of staff 2nd quarter 2012 HRK 160,000.00 National Minority Rights Office for Co-operation with NGOs Recruitment of four members of staff in the Office for Co-operation with of the Government of the Republic 3rd quarter 2012 HRK 360,000.00 NGOs of Croatia Gender equality

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES

Recruitment of a trainee/expert assistant Office for Gender Equality 1st quarter 2012 HRK 70,000.00

Free Legal Aid

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline OTHER EUR 207,000 IPA 2009; EUR 23,000 IPA 2009 - Improvement of the System of Free Legal Aid MJ 2012 State Budget Probation

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES

Recruitment of 40 probation officers MJ 3rd quarter 2012 HRK 2,145,600.00 EDUCATION AND TRAINING Professional development of probation officers MJ 4th quarter 2012 HRK 100,000.00 OTHER Implementation of IPA project "Development of a Probation System in the MJ 2012 EUR 165,000 Republic of Croatia" Procurement of vehicles MJ 2nd quarter 2012 HRK 1,000,000

Rights of national minorities

Legislative activities c) Strategies, Action Plans or Programmes

Competent To be submitted for Government procedure No. Measure authority Office for Human Rights and 1 National Plan for the Roma 1st quarter 2012 National Minority Rights

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Employment of one trainee in the Office for Human Rights and National Office for Human Rights and 1st quarter 2012 HRK 85,000 Minority Rights National Minority Rights EDUCATION AND TRAINING Office for Human Rights and (free programmes of MAd, CODEF, Strengthening capacities for managing EU funded projects 2nd quarter 2012 National Minority Rights MFEA and CFCA) Office for Human Rights and Training programme for leading civil servants 2nd quarter 2012 (free programmes of MAd) National Minority Rights Office for Human Rights and Developing professional knowledge of foreign languages 2nd quarter 2012 HRK 25,000 National Minority Rights Office for Human Rights and Procurement of additional IT equipment 3rd quarter 2012 HRK 22,000 National Minority Rights OTHER MAd, Local Democracy Academy, Implementation of the Constitutional Act on the Rights of National Office for Human Rights and 1st – 4th quarter 2012 HRK 520,000 and within regular funds Minorities National Minority Rights, Council for National Minorities Implementation of the Action Plan for the Implementation of the MAd 1st – 4th quarter 2012 Constitutional Act on the Rights of National Minorities 2011 – 2013

II. ECONOMIC CRITERIA

2.1. MID-TERM PRIORITIES IN ECONOMIC POLICY The Government of the Republic of Croatia will focus on maintaining macroeconomic stability and creating the conditions for recovery and stable economic growth. Fiscal policy measures will help in achieving this objective. Close co-ordination between monetary and fiscal policy is also required. Fiscal policy will be directed at consolidating public finances, for which the strict implementation of the Fiscal Responsibility Act is of great importance. The Programme of the Government of the Republic of Croatia for the 2011-2015 term of office is based on the following key objectives: - GDP growth and employment on the basis of a new investment cycle, growth in production and competitiveness, new industrialisation, export and domestic demand; - sustainable growth in public revenues and adjusting budget expenditures to fiscal capacity and developmental needs, which especially refers to public administration costs, material costs, subsidies and transfers to local self-government; - intense investment in knowledge and education as important factors of the country‘s economic and social development; - eradication of corruption in all spheres of public government and the final establishment of an efficient and just judicial system, effective state administration and responsible management of public enterprises and state property; - reform of the tax system aimed at lifting the tax burden on the input side of production for the purpose of stimulating investment, reinvestment and cost competitiveness, as well as shifting the tax burden from labour to capital in order to achieve greater social equity in the tax system; - consolidation of public finances, providing the conditions to reduce illiquidity and ensure a well-functioning payment system; - decentralisation of financial revenues and increased authority for local and regional self-government, as well as balancing of regional development; - alignment of the basic development leverages, such as energy, transportation infrastructure, environmental protection, food manufacturing, tourism and education, with the efficient use of EU funds available in these areas; - protection of workers‘ rights and the right to fair compensation for work, enhanced competitiveness of the labour market and maintenance of the social welfare system to provide equal opportunities for the most sensitive groups of society; - improvement of the pension system by eliminating deficiencies and injustice and by introducing criteria for acquiring and exercising pension rights sustainable in the long run; establishment and maintenance of a solidary, efficient and universally available health-care system.

2.2 EXISTENCE OF A FUNCTIONING MARKET ECONOMY

2.2.1 Current economic developments Gross domestic product Gross domestic product recorded a real year-on-year stagnation in the first half of 2011, as a result of a real decline of 0.8% in the first quarter and an increase of 0.8% in the second quarter. The year-on-year GDP deflator stood at 2.3% in the first half of 2011. Nominal gross domestic product amounted to HRK 164,793m, recording an increase of 2.3% on a year-on-year basis. Analysing individual expenditure components of gross domestic product, gross fixed capital formation recorded the largest real year-on-year decline in the first half of 2011, amounting to 7.0%. Gross fixed capital formation decreased by 6.7% in real terms in the first quarter and by 7.3% in the second quarter. A reduction in imports of goods and services stood at 5.7% in the first half of 2011, as a result of a 5.3% fall in the first quarter and a 6.0% fall in the second quarter. Exports of goods and services recorded a real year-on-year fall of 4.3% in the first half of the year, due to a decrease of 11.1% in the first quarter and an increase of 1.1% in the second quarter. Coverage of imports of goods and services by exports of goods and services was 87.2%, expressed in current prices, in the first half of 2011. Personal consumption rose by 0.3% in the first half of the year, on account of a drop of 0.1% in the first quarter and a rise of 0.6% in the second quarter. Government consumption recorded a real increase of 0.4% in the first half of the year, as a result of a 0.9% reduction in the first quarter and 1.7% growth in the second quarter. Assuming stabilisation of macroeconomic conditions in the international environment and the absence of new shocks, a mild recovery of economic activity is expected in 2012, accelerating in the following years of the mid-term period. Gross value added

Gross value added stagnated in real terms, year-on-year, in the first half of 2011, resulting from a 0.9% drop in the first quarter and a 0.8% increase in the second quarter of 2011. Analysing individual activities, the strongest year-on-year growth in the first half of 2011 was recorded by hotels and restaurants (2.4%), financial intermediation1 (1.6%), transport, storage and communication (1.2%), trade2 (0.7%), agriculture3 (0.7%) and public administration4 (0.1%). A real reduction in gross value added in the first half of the year was recorded in construction (-10.6%) and industry5 (-0.1%).

1 This category includes financial intermediation, real estate, renting and business activities. 2 This category includes the wholesale and retail trade, the repair of motor vehicles and motorcycles, and personal and household goods. 3 Includes agriculture, hunting, forestry and fishing. 4 This category includes public administration and defence, social security, education, health care and social work, and other community, social and household activities. 5 Includes mining and quarrying, manufacturing and the supply of electricity, gas and water. Analysing the share of individual activities in the total gross value added at constant prices of the previous year (reference year 2000), the following activities recorded the largest share in the first half of 2011: industry (21.5%), financial intermediation (20.8%) and public administration (18.0%). The share of trade in total value added stood at 12.9%, followed by transport, storage and communication at 10.0%, agriculture at 5.9%, construction at 5.8%, and hotels and restaurants at 3.6%. Balance of payments In the first half of 2011, a two-year downward trend in the balance of payments current account deficit was halted. This change can mainly be explained by movements in trade in goods, primarily a deceleration in the growth of exports of goods, while imports continued to stagnate. In contrast to the foreign trade balance, transactions in the factor income account exerted pressures which led to a rise in the total deficit in the first half of 2011. The balance of current transfers also deteriorated. Only trade in services had favourable effects on the overall balance, mostly on account of a rise in tourism revenues. In the second half of 2011, a gradual improvement in the current account deficit is expected, as is a balancing out at the level of the entire year, due to the favourable impact of the peak tourist season and generally faster growth of revenues over expenditures. Although the current account deficit in the first half of 2011 was almost the same as in the previous year, it was nevertheless accompanied by a considerably larger foreign capital inflow. These inflows were exclusively related to the heavier borrowing of banks and central government, whereas there were no signs of significant recovery in corporate borrowing. Similarly, direct equity investments were still very limited and showed no signs of recovery. Of the realised EUR 0.7bn of investment, only a smaller portion was invested in production capacity, while the major part related either to an exchange of part of the debt receivables of individual foreign investors for equity participation in those companies, or the use of the funds received from owners for the repayment of external debts. The second half of 2011 could see net outflows of capital, mostly as a result of a seasonal growth in banks' foreign assets, related to the inflow of foreign exchange from tourism. Banks could also improve their foreign position through a reduction of external debt, whereas other sectors might be reluctant to borrow abroad by the end of the year.

International reserves and external debt Following its increase in the first half of 2011 of EUR 0.9bn (excluding exchange rate fluctuations), external debt dropped in the following two months by almost the same amount. Such developments were mostly affected by the common seasonal deleveraging of banks, whereas the central government increased its debt with new issues of eurobonds worth EUR 750m. Public enterprises continued to borrow rather intensely in the first quarter. This trend was halted in the second quarter and was stable in the summer months. Private enterprises also used slightly more funds from abroad in the first quarter, and mostly only refinanced due foreign liabilities by the end of August. Deleveraging of non-banking financial institutions, recorded from as early as the end of 2009, somewhat stabilised in the first eight months of 2011. No further major borrowing by the central government is expected by the end of 2011, and the same holds true for companies, while banks will increase mildly their foreign liabilities by the end of the year. Debt balance towards affiliated companies should be reduced, after a part of the debt based on direct investments (including round trip investments) is converted into capital. At the end of the year, the relative indicator of external debt is not likely to exceed 99% of GDP. Gross international reserves stood at EUR 11.2bn at end-October 2011, or EUR 0.6bn more than at the end of the previous year. Their strong growth of almost EUR 1.0bn was recorded in the first quarter and was the result of the purchase of foreign exchange from the government, raised by issuing bonds on the foreign market. Later in the year, the stock of international reserves did not change significantly until the third quarter. At that time, due to depreciation pressures on the movements of the kuna exchange rate against the euro, the CNB intervened on the foreign exchange market on two occasions, selling a total of EUR 0.4bn to banks.

Employment and unemployment

According to the labour force survey, the working age population in the first half of 2011 included 3,760,500 persons, of whom 45.6% were either working or actively seeking employment, i.e. those who can be classified as the labour force. In comparison with the results of the survey from the first half of 2010, the working age population increased by 22,000 and the category of the labour force was reduced by 38,500. Total employment in the first half of 2011 averaged 1,478,000, which is 70,500 less than in the same period of 2010. Unemployment rose by 32,000, amounting to 238,500. Accordingly, in the first half of 2011, the labour force survey unemployment rate stood at 13.9% on average, which is an increase of 2.1 percentage points compared to the first half of 2010.

Labour market data obtained from administrative sources also point to an upward trend in unemployment, i.e. a drop in the number of employed persons, in year-on-year terms. Average unemployment increased by 6,689 in the first nine months of 2011, or by 2.2%, compared to the same period of 2010, while average employment was reduced by 38,636 or 2.7% year-on-year in the same period. The administrative unemployment rate averaged 17.9% in the first nine months of 2011, which is an increase of 0.7 percentage points relative to the same period of 2010.

Prices In the first five months of 2011, inflation trended upwards, reaching 2.5% in May, which is a 0.7 percentage point increase compared to December 2010. Inflation dropped to 2.0% in June, stabilising around that lower level in the following two months, only to rise again mildly to 2.2% in September. Accelerating inflation in the first five months can be accounted for by an increase in prices of food raw materials and energy products on the world market as of mid-2010. This resulted, with a certain time lag, in a rise in prices of processed foodstuff on the domestic market. Energy prices also increased in the first five months of 2011, but their annual growth rate decreased due to a favourable base period effect. Deceleration of inflation which followed was mainly a consequence of a reduced annual rate of change in the prices of unprocessed foodstuff. Domestic factors, such as weak personal consumption and reduced unit labour costs at the annual level, also contributed to low inflation. The above factors caused deflationary pressures on the prices of products with higher price elasticity of demand (e.g. industrial products, excluding food, energy and services). No significant changes in the movements of inflation are expected by the end of 2011, so that low and stable inflation is projected for the whole of 2011.

2.2.2 Monetary and fiscal policy

Monetary and exchange rate policy The Croatian National Bank (CNB) maintains stability of the nominal exchange rate of the kuna against the euro, since this bilateral exchange rate represents the nominal anchor of monetary policy for maintaining price stability. In the conditions of an extremely high level of euroisation of the domestic banking system, the openness of the Croatian economy and a high level of external debt, exchange rate stability represents a prerequisite for the stability of the overall financial system.

The main characteristic of the monetary environment in the first half of 2011 was abundant kuna liquidity, which the central bank supported with the aim of starting a spillover of excess free reserves, to the largest extent possible, into a revival of banks‘ lending activity. Accordingly, in March 2011, the CNB improved the foreign exchange liquidity of the system by reducing the rate of the minimum required foreign currency claims from 20% to 17%, as a result of which approximately EUR 850m (almost 2% of GDP) was released at the system level. However, in the third quarter, depreciation pressures on the domestic currency appeared. In order to preserve exchange rate stability, the CNB intervened twice (in July and in September) on the foreign exchange market, selling approximately EUR 0.4bn. Additionally, in September, the central bank raised the rate of reserve requirement from 13% to 14%, which, together with the previously mentioned foreign exchange transactions, reduced the kuna liquidity of the banking system, thus stabilising the exchange rate of the domestic currency. As regards bank placements, in the first nine months of 2011, movements similar to those in the same period of the previous year were recorded. A mild annual growth in placements to the non-banking sector (3.6% at the end of September, excluding the exchange rate effect) largely related to corporate loans (7.3%), while household loans still did not recover. Bank placements to the central government recorded strong growth, which was especially pronounced early in the year. On the other hand, monetary aggregates recorded somewhat less favourable movements compared to the same period of 2010. At the end of September, money (M1) recorded an annual fall of 1.2%, mostly on account of a decrease in corporate demand deposits. A reduction in savings and time deposits of the same sector also contributed to a somewhat slower growth in total liquid assets (M4), amounting to 3.7% at the end of September 2011.

The absence of a more significant recovery of monetary and credit aggregates in 2011 was the consequence of continued unfavourable movements in the real sector of the economy, i.e. reduced demand for loans, especially by households. The share of partly or fully irrecoverable bank placements in total placements continued to rise, reaching 12.2% in mid-2011. Despite this, such movements did not undermine the stability of the banking system in Croatia, which remained highly capitalised, with an average capital adequacy ratio of 18.9% at the end of June 2011.

Exchange rate policy The exchange rate of the kuna against the euro was stable in the first half of 2011, in conditions of balanced supply and demand on the foreign exchange market. At end-June, the exchange rate stood at 7.37 HRK/EUR, a drop of only 0.2% relative to the exchange rate recorded at the end of December 2010. In the first half of the year, the central bank purchased from the Ministry of Finance a considerable amount of foreign exchange (a total of EUR 858m), thus preventing possible appreciation pressures on the kuna. In the third quarter, depreciation pressures on the exchange rate of the kuna against the euro prevailed, which was, in the conditions of abundant kuna liquidity, a result of increased risk premium, the partial withdrawal of deposits of foreign investors from the Treasury bills market, and the associated increased volume of the banks‘ sale of foreign exchange to foreign banks, as well as due to the speculative behaviour of individual domestic banks. In such conditions, the central bank participated twice during the third quarter in the foreign exchange market (on 25 July and 19 September), in order to mitigate the nominal depreciation of the kuna, by selling a total of EUR 419.4m to banks. In addition to foreign exchange interventions, depreciation pressures on the exchange rate of the kuna against the euro were also mitigated by the central bank‘s decision to raise the rate of reserve requirement in October. In the first week of October, the kuna exchange rate against the euro depreciated, reaching 7.51 HRK/EUR on 7 October. Later in October, the kuna mainly appreciated against the euro, helped in part also by the sale of foreign exchange of the Ministry of Finance to banks. At the end of October, the exchange rate stood at 7.49 HRK/EUR, which is a 1.2% rise compared to the exchange rate recorded at the end of December 2010. In the first ten months of 2011, the kuna weakened against the Swiss franc, Czech koruna, Japanese yen and Swedish krona. In contrast, the kuna strengthened against the Polish zloty, Hungarian forint, US dollar and the British pound sterling. As regards the exchange rate of the kuna against the Swiss franc, following the continuous growth in the first eight months of 2011, it stabilised again at the end of the third quarter. More specifically, in early September, the Swiss central bank announced that it would not allow a strengthening of the Swiss franc against the euro, below a limit of 1.2 CHF/EUR, which, in conditions of a stable exchange rate of the kuna against the euro, also determined the exchange rate of the kuna against the Swiss franc. In addition to the depreciation of the exchange rate of the kuna against the euro, the aforementioned exchange rate movements in the observed period resulted in the appreciation of the index of the daily kuna nominal exchange rate by only 0.4%, largely on account of the appreciation of the kuna exchange rate against the US dollar. The latest data available show that a mild depreciation of the index of the real effective exchange rate of the kuna deflated by consumer prices (of 0.5%) was recorded in the first eight months of 2011, whereas the index deflated by producer prices appreciated moderately (by 0.7%). Data on movements in the index of the real effective exchange rate of the kuna deflated by unit labour costs are available for the first quarter of 2011, pointing to the improved cost competitiveness of exports, i.e. showing that a real effective depreciation of the kuna was recorded in the overall economy and industry (1.2% and 3.4%, respectively, relative to the previous quarter). Fiscal policy The world economic crisis and its effects had a significant impact on Croatian public finances in 2010. Fiscal policy faced the challenge of adjusting the expenditure side of the budget to real capacities in conditions of crisis. Certain measures had to be taken to ensure stability and liquidity of public finances, i.e. measures aimed at reducing and controlling expenditures. Accordingly, total net lending/borrowing of consolidated general government, in accordance with ESA 95 methodology, amounted to -4.9% of gross domestic product, which is a 0.3 percentage point reduction compared to that planned. Such an outturn also reflected in the level of public debt, so that total public debt reached 41.2% of GDP at the end of 2010. In 2011, total revenues of consolidated general government were planned to be 1.6 percentage points lower than in the previous year, i.e. at the level of 35.4% of GDP. This can be accounted for by certain changes in the revenue side of the state budget, which included abolishing a special tax on salaries, pensions and other income, as well as changes in the income tax system. Furthermore, the fiscal policy of the Republic of Croatia in 2011 was also determined by two legal acts. One is the Conclusion of the Parliament on determining the total amount of state budget expenditures at the level of expenditures established by the plan for 2010, and the other one is the Fiscal Responsibility Act (OG 139/10), according to which planned state budget expenditures should be reduced by at least 1 percentage point annually in terms of the GDP share, until the general budget primary balance is zero or positive. The application of this Act is planned from 2012, implying that the first testing of the implementation of the fiscal rule will be evident by comparing the plans, i.e. the 2012 budget outturn relative to 2011. The 2011 budget execution was in line with the plan and there was no need for a budget review. In the first half of 2011, net lending/borrowing of consolidated general government amounted to -2.6% of GDP, whereas preliminary data for the entire year at the state budget level suggest that realised net lending/borrowing is lower than was planned. In the forthcoming mid-term period, the process of the Republic of Croatia‘s accession to the EU and its full EU membership will have a significant effect on both the revenue and expenditure sides of the budget. In the medium-term, expenditures will also be determined by the Fiscal Responsibility Act. In order to monitor the application of the indicated fiscal rules determined by the Act and to improve the public finance system, a Fiscal Policy Committee has been established, consisting of representatives of seven independent institutions, appointed by the Government for a period of five years. The Committee convenes at least once every four months and a minimum of twice a year. The Committee must inform the public of its views. General government debt At end-2010, general government debt amounted to HRK 138.0bn or 41.2% of GDP. At the end of 2010, the foreign component of the debt accounted for 35.3% of total general government debt, whereas the domestic component accounted for 64.7% of total general government debt. In 2011, the Republic of Croatia borrowed on two occasions on the foreign market. In March 2011, a 10-year bond was issued on the US market, worth USD 1.5bn with a coupon rate of 6.375%. In parallel to making arrangements concerning this bond, a currency risk hedge was carried out, as well as a conversion of US dollar borrowing into the euro. In June 2011, helped by the economic recovery, a stable credit rating and the conclusion of negotiations concerning EU accession, government eurobonds were issued, worth EUR 750m, maturing in 2018 and with a coupon rate of 5.875%. Furthermore, in July 2011, a five-year kuna bond was issued on the domestic market, worth HRK 1.5bn and at an annual coupon rate of 5.75%, maturing in July 2016, as well as a bond indexed to foreign currency, worth EUR 600m, at an annual coupon rate of 6.50%, maturing in July 2022.

Part of the total financing needs in 2011 was also settled via short-term instruments, primarily syndicated loans granted by domestic banks and Treasury bills. Accordingly, at end-June 2011, general government debt stood at HRK 145.1bn or 41.7% of GDP, with the share of the domestic component reaching 66.4%, and the foreign component 33.6%.

2.2.3 Products market functioning

State property management In accordance with the set objectives and measures anticipating the consolidation of state property and its more efficient management, the Agency for State Property Management (hereinafter: ASPM ) has been established through a merger of the Croatian Privatisation Fund and the Central State Office for State Property Management. ASPM became operative on 1 April 2011. The institutional framework for state property management is regulated by the Act on State Property Management (Official Gazette 145/10, hereinafter: the Act). Pursuant to the Act, the following pieces of subordinate legislation were adopted: . Regulation on the sale of shares and interests in companies owned by the Republic of Croatia, institutes and other legal persons whose founder is the Republic of Croatia (OG 64/11); . Regulation on the method of disposal in exchanging, donating and establishing a right of pledge on shares and interests (Official Gazette 109/11); . Regulation on disposing of real estate in the ownership of the Republic of Croatia (Official Gazette 55/11); . Regulation on disposing of real estate granted for use to the state administration bodies or other entities which are state budget beneficiaries and other persons (Official Gazette 80/11); . Regulation on exercising a right of construction and servitude on real properties in the ownership of the Republic of Croatia (Official Gazette 78/11); . Regulation on the state property register (Official Gazette 55/11); . Regulation on donating real estate in the ownership of the Republic of Croatia (Official Gazette 123/11 and 129/11). As determined by the law, state property management is based, in the long run, on the Strategy adopted by the Croatian Parliament for a four-year period, while the Management plan is adopted by the Government of the Republic of Croatia for a period of one year. The draft proposal of the Strategy, whose adoption is planned in 2012, places emphasis on: activating state property and putting it in the function of economic growth and promoting investments, the protection of the national interests of the Republic of Croatia, maximising rationalisation in the use of state property and creating a sustainable state property management system in the long run, in accordance with the legislation and the relevant EU acquis. In order to achieve the indicated strategic determinants, the Act also envisages and puts into operation a comprehensive set of methods for state property management, in the form of shares, interests and real estate. In contrast to the Privatisation Act, which provided for only two methods of selling shares and interests, the Act prescribes seven methods of selling shares and interests, as part of managing state property in the form of shares and interests, which are more active and suitable for the modern capital market and economic developments. The sale of shares and interests will be performed via public offerings (initial public offerings), public tenders (public auctions), public collection of bids, sale on the regulated capital market, sale by accepting a takeover bid, and sale by accepting a squeeze-out bid and public call for recapitalisation. The Act also allows for a combination of the stated methods for the purpose of finding a method that is optimal for an individual company, which will certainly have a positive impact on the privatisation of companies with inherited operational difficulties, which are actually predominant in the state portfolio. It should be noted that the process of the transfer of shares and interests to ASMP is still underway and is expected to be completed during 2012. As at 15 November 2011, the ASPM portfolio consisted of 681 companies with a total nominal value of equity capital amounting to HRK 91.913bn, whereas the total nominal value of the state portfolio stood at HRK 40.517bn. At the same time, the majority of the portfolio comprises companies in difficulties, which are, as such, not attractive to potential investors and require extensive restructuring and consolidation before or during the privatisation itself.

Table 1: State property in the form of shares and interests as at 15 November 2011

Total nominal Total nominal Number of value of equity value of state Description companies as capital portfolio at 15 Nov 2011 (in HRK bn) (in HRK bn)

portfolio up to 49.99% of equity capital 442 44.609 5.909

portfolio above 50% of equity capital 65 37.563 34.146

unavailable portfolio – ownership up to 172 9.726 0.447 50% (reserved shares)

unavailable portfolio – ownership above 2 0.015 0.015 50% (reserved shares) TOTAL 681 91.913 40.517 companies not carrying on a business 56 activity Source: ASPM

The structure of shares in the equity capital of the indicated companies points to the conclusion that dealing with the remaining portfolio requires an extremely differentiated approach, taking into account the most appropriate combination of methods of sale of shares and interests. The Act provides for such a methodology, due to which a more successful and intense privatisation process can be anticipated in the coming years. Unfortunately, the recession crisis and decelerated economic growth still have a negative impact on the interest of potential investors in investment, acquisition of shares and takeover of companies. In such conditions, and taking into account that 2011 was a turning point in the modification of the entire legislative and institutional framework, from the moment of its establishment AUDIO has published tenders for the sale of shares in 47 companies, of which only 6 have been completed successfully, earning revenue of about HRK 4.3m, whereas 6 other companies have undergone bankruptcy or winding-up procedures. With the establishment of ASPM, state property management has placed significant emphasis on managing real estate in the ownership of the Republic of Croatia. In this regard, ASPM has been carrying out a range of activities, as provided for by law, in accordance with the Strategy and Management Plan. In addition to regular tasks, directed, for instance, at current and investment maintenance, making proposals for spatial solutions and the compliance of real estate with legal requirements, the management of state property in the form of real estate also focuses on activating real estate for the purpose of stimulating economic activity, attracting new investments, economic growth and development in general. Consequently, ASPM, as provided for in the Act, assumes competence for the implementation of activities aimed at disposing of real estate by sale, lease or rent, through the recapitalisation of companies by including real properties in the equity capital of companies, by donation or exchange, through the establishment of a right of pledge or the establishment of a right of servitude on a real estate, dissolution of co-ownership of real estate, joint construction or financing of construction, and other methods of disposal. As at 15 November 2011, state property in the form of real estate managed by ASPM encompassed construction plots, commercial real estate, apartments owned by the Republic of Croatia, residential buildings and diplomatic and consular representative offices. The sale of real estate properties will be carried out in several ways, primarily through public tenders and a public collection of bids. The Act also provides for direct negotiations in the case of the dissolution of co-ownership and the establishment of servitude rights and a direct deal in special cases, as provided for by the Act and the Regulation on disposing of real estate in the ownership of the Republic of Croatia. From 1 April 2011 to 15 November 2011, ASPM sold a total of 22 real estate properties, earning revenue of HRK 7.9m from that activity. One of the key prerequisites for the efficient implementation of the Act and one of the strategic determinants in the segment of real estate management is the establishment of a comprehensive register of real estate properties owned by the Republic of Croatia, an objective planned to be accomplished during 2012. Accordingly, revenues based on the sale and disposal of real estate in general are planned to be intensified in the coming years, and especially after the establishment of this register.

2.2.4 Financial sector

Total financial sector assets continued to grow mildly in the first nine months of 2011, reaching HRK 534.5bn at end-September, which is an increase of HRK 14.2bn or 2.7% compared to the end of 2010. In this period, divergent movements of assets of individual types of intermediaries continued, so that growth in total assets of the sector was the result of a rise in assets of banks, compulsory and voluntary pension funds, insurance companies and housing savings banks, whereas the assets of leasing and factoring companies decreased further. Open-end investment funds also recorded a reduction in total assets as a consequence of turbulences on the financial markets. A moderate growth (3.3%) in banking sector assets continued in the first three quarters of 2011, which led to a mild growth in the banking sector‘s share in the financial sector from 75.3% at end-2010 to 75.6%. Similar to the end of 2010, banks in private ownership controlled 95.6% of total bank assets at end-September 2011, whereas banks in foreign ownership controlled 90.3% of total bank assets. Abundant liquidity of the system contributed to a revival of corporate lending in 2010 and 2011 which, along with rather unfavourable GDP movements, brought about a rise in the ratio of corporate loans to GDP from 28.2% at end-2009 to 30.5% at end-2010 and 31.3% at the end of September 2011. Somewhat easier access to foreign financial markets, during most of the observed period, allowed for heavier external borrowing of the state and deceleration of its borrowing from domestic banks. Following a rise in the ratio of loans granted to government units to GDP from 6.2% to 9.4% in 2009, that ratio increased to 10.3% in 2010 and additionally to 10.9% by the end of September 2011. As in 2010, household demand for loans remained poor in the first three quarters of 2011. Despite a mild depreciation of the kuna against the euro and a strong appreciation of the exchange rate of the Swiss franc, increasing the nominal amount of household loans (due to the predominant share of loans indexed to foreign currency), poor demand for loans in that sector, together with slightly higher GDP, resulted in a moderate reduction in the ratio of household loans to GDP to 35.7% (from 36.3% at end-2010). In conditions of still rather weak credit activity and increased materialisation of credit risk, which was evident in the first three quarters of 2011 in the continued strong growth of the share of bad loans in total loans (from 11.2% at the end of 2010 to 12.2%), annual value adjustment costs continued to grow (from 7% in the first nine months of 2011, after a 6% increase in 2010). In order to support their profitability, after the escalation of the crisis, banks widened their interest rate spread, which traditionally accounts for the largest part of their earnings. Accordingly, the ratio of the annual net interest income to average bank assets rose to 2.9% by the end of 2010 and to 3.0% by end-September 2011. An increased net interest rate spread and restrictive cost management led to a mild growth in banks‘ profitability ratios. Accordingly, banks‘ capital profitability, which was considerably reduced in the course of 2009, from 9.9% to 6.4%, rose to 6.6% in 2010 and to 6.8% in September 2011. Owing to a continued inflow of payments, compulsory pension funds increased their share in the total assets of the financial sector from 7.0% at end-2010 to 7.4% in September 2011, thus reinforcing their second position in terms of the share in financial intermediaries. Insurance companies continued to record stable growth of assets, accompanied by a moderate increase in their share in the sector‘s total assets (from 5.8% to 5.9% in the first six months of 2011). At the same time, increased credit risk, together with poor demand for loans, resulted in a fall in leasing companies‘ assets from 5.6% to 5.0% of total assets in the first six months of 2011. Just as in 2010, investment funds‘ assets increased in the first six months of 2011, especially in the segment of the least risky money market funds and bond funds. New payments and a stable market in the first six months of 2011 resulted in a 16.0% growth in the assets of these intermediaries, which increased their relative share to 3.0%. However, by end-September, the total assets of these intermediaries decreased, their share falling to 2.5% at end-September, under the influence of a decrease in the prices of domestic and foreign shares and bonds. Movements on the domestic capital market corresponded to those on the markets in the region. Following a 5.3% growth in 2010, in the first six months of 2011 the CROBEX market index went up by 5.7%. As a result of a new deepening of the financial crisis in the eurozone, the third quarter saw a significant decrease in the value of all the world‘s indices, including the domestic CROBEX, which went down by 12.2% at end-September compared to the level recorded at the end of 2010. Similar developments marked the bond market: after a relatively stable beginning of the year, CROBIS, i.e. the index of bond price movements on the Zagreb Stock Exchange, recorded considerable growth in the following few months. In early summer, that index fell sharply under the influence of movements in the international market, but it was nevertheless 2.6% higher at end- June than at the beginning of the year, only to fall sharply in the summer months, reaching at end-September a level that was 1.9% lower than that recorded at the beginning of the year. Market capitalisation of shares was reduced mainly as a consequence of movements in share prices, standing at 41.2% of GDP at end-September compared to 42.1% at the beginning of the year. In the observed period, several new government bonds were issued on the domestic market: in November 2010, a HRK 4.0bn bond was issued and in July 2011, two more bonds worth HRK 1.5bn and EUR 600m (in kuna indexed to foreign currency) were issued. These issues increased the market capitalisation of bonds, despite a decrease in their price, so that it stood at 16.2% of GDP at end-September relative to 15.8% at the beginning of the year.

2.3 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU

2.3.1 Human capital

Education PRESCHOOL EDUCATION IN THE SCHOOL YEAR 2011/2012 Preschool activity has been regulated as an education sub-system in the Republic of Croatia since 1997 (Preschool Education Act, Official Gazette 10/97 and 107/07). In the school year 2011/12, total coverage of preschool age children by regular programmes (five-hour and ten-hour programmes) is 64%. The coverage of children by shorter programmes is about 28%. In the year preceding the beginning of primary school, 99.60% of children are covered by the preschool education programmes, both by regular kindergarten programmes and by the programmes of preschool. In the school year 2011/12, the programmes for children of early and preschool age in the Republic of Croatia are being carried out in 701 preschool institutions. The total number of kindergartens amounts to 701 kindergartens (total number of facilities: 1,598). There are 266 (37.86%) private kindergartens (of these, the founders of 202 are natural persons, 50 were founded by religious communities and 14 by associations). There are 435 (62.14%) town/municipal/county kindergartens. The total number of children amounts to 152,284 (64%). A total of 29,320 children (19.40%) attend private kindergartens and 122,194 children (80.60%) attend town/municipal/county kindergartens. The total number of employees comes to 16,133, of whom 10,021 are educational workers and 6,112 other workers. Professional associates are made up of 721 professional associates (314 pedagogues, 173 psychologists, 234 experts from the faculty of education and rehabilitation (134 defectologists and rehabilitators and 100 logopaedic specialists) and 216 senior nurses – heads of health service). With regard to training centres, 61 kindergartens in the Republic of Croatia have been designated as training centres of higher-education institutions for the professional training of educators and professional associates. In terms of professional and development centres, 14 kindergartens have been designated, on account of their quality, as centres of excellence for the professional training of educational workers in kindergartens. Regarding alternative programmes in kindergartens, there are 5 kindergartens implementing work programmes with preschool age children exclusively according to the principles and pedagogic approaches of Montessori pedagogy, and Montessori programmes run in 11 regular kindergartens with one and/or two educational groups in Zagreb, Split and Rijeka. Five Waldorf kindergartens, all in private ownership (two in Zagreb and one in Rijeka, Split and Samobor), work according to the principles of Rudolf Steiner's pedagogy. There is one educational group with a Waldorf programme established in six kindergartens in Zagreb, Čakovec and Split. The kindergarten ZRAKA SUNCA that operates in Kriţevci implements the pedagogy of the communion of the Agazzi sisters, founded by Kiara Lubich. PRIMARY SCHOOL EDUCATION IN THE SCHOOL YEAR 2011/2012 is carried out in 964 primary schools. Counties, municipalities and cities are the founders of 947 (98.24%) primary schools, the founders of three primary schools are religious communities (0.31%), whereas other legal and natural persons are the founders of 15 primary schools (1.56%). Primary schools by programmes: there are 850 primary schools with general education programmes, one primary school with a general education and international programme (Matija Gubec in Zagreb), two primary schools with alternative programmes (Waldorf programme in Zagreb and Rijeka), one primary school where teaching is organised under the general education programme with the application of alternative methods (Montessori), one school with a general education programme for adults, 19 primary schools with special programmes for children with disabilities and 90 primary school institutions with arts programmes (music and dance programmes). Number of pupils and classes: in primary schools with general education and with special and alternative programmes, there are 346,347 pupils in 18,911 classes, of which 16,954 are regular classes, 1,902 combined classes and 55 hospital classes where education is organised in regular and combined classes, depending on the number of children undergoing hospital treatment during the year. Pupils with disabilities: of the total number of pupils in primary schools, 17,580 (5.08%) are children with disabilities. 2,280 of whom are pupils in schools with special programmes for children with disabilities, whereas the others are pupils in regular classes or classes with special programmes in regular primary schools. Employees in primary school institutions: according to the data of the Ministry of Science, Education and Sports for the school year 2011/2012, in November there were 39,855 full time employees or 47,052 persons in total. Of this number, in total 32,427 persons were employed as teachers or professional associates, of whom. 29,430 were full time employees.

Employment by sector

According to the labour force survey data, in the first half of 2011, employment averaged 1,478,000. Of the total employed, 15.2% were employed in agriculture, forestry and fishing, which is a decrease of 3.2% compared to the same period of 2010. Mining and quarrying employed 0.7% of the total employed. The largest number of the employed (16.7%) worked in manufacturing, but that number remained the same as in the first half of 2010. The share of the employed in electricity, gas, steam and air conditioning supply stood at 1.3% in the first half of 2011 and the same share of the total employed worked in water supply, sewerage, waste water management and environmental remediation activities. Construction employed 7.2% of the total employed persons, a 9.7% reduction compared to the first half of 2010. The wholesale and retail trade, repair of motor vehicles and motorcycles employed 12.9% of the total number of the employed, which is an 8.2% decrease compared to the same period of 2010. Transportation and storage accounted for 6.4% of the employed, a 6.0% decrease year-on-year, while accommodation and food service activities accounted for 5.1% of the employed, or 13.2% less than in the same period of the previous year. Information and communication employed 2.3% and financial and insurance activities 2.4% of the employed. A total of 3.8% of the employed worked in professional, scientific and technical activities and 1.7% in administrative and support service activities. Public administration and defence, and compulsory social insurance employed 6.8% of the total employed, which is a 2.4% decrease compared to the first half of 2010. Education employed 6.5% of the employed, a 3.5% increase, while human health and social work activities employed 5.9% of the employed, or 9.3% less than in the same period of the previous year. The share of those employed in arts, entertainment and recreation stood at 1.4%, and those employed in other service activities at 1.9%.

Electronic communications and postal services In the field of electronic communications, with the adoption of the Act on Amendments to the Electronic Communications Act (Official Gazette 90/11), which entered into force on 10 August 2011, the Republic of Croatia has fully aligned its legislation with the revised EU regulatory framework of November 2009. In 2012, subordinate legislation in the field of electronic communications is planned to be harmonised with the provisions of the Act on Amendments to the Electronic Communications Act.

In 2012, the recruitment of four new employees in the Directorate for Electronic Communications and Postal Service is planned. These employees will be engaged in electronic communications tasks (excluding tasks relating to R&TT equipment and electromagnetic compatibility), of whom two will be posted in the Electronic Communications Department and two employees in the Information Society Department. At present, the Directorate for Electronic Communications and Postal Service has 10 employees, of whom eight (together with the Director of the Directorate) have a bachelor‘s degree in the field of electrical engineering, transportation, law and economics. However, only four employees are engaged in tasks of electronic communications.

In its final Report on fulfilling the requirements of Chapter 10: Information Society and Media, the Republic of Croatia undertook to fill the capacity gaps in the Directorate for Electronic Communications and Postal Service of what was then the Ministry of the Sea, Transport and Infrastructure to enable it to carry out the prescribed activities and tasks. However, in the period since September 2008, a total of 11 employees have left the Directorate and two employees arrived through secondment. Taking into account the fact that this is the only Directorate within this Ministry which has, within its competence, two different administrative fields (electronic communications and postal services), it is necessary to conduct the planned recruitment. In 2012, Croatian Post and Electronic Communications Agency (HAKOM) employees will undergo training through graduate and postgraduate studies, research projects, seminars, conferences, working groups, professional workshops and seminars, foreign language courses (English and French) and other forms of training. HAKOM will especially encourage its employees to participate in further training in the form of the university specialist multidisciplinary study of electronic communications (law, economics, electrical engineering), which will allow participants to acquire economic, legal and technical competences in the regulation of electronic communications and the ability to apply the regulatory framework and to deal with regulatory issues. Strengthening HAKOM administrative capacity is aimed at enhancing efficiency by means of improving its business processes and continuing the professional training of its employees. In the professional training and education of its employees, HAKOM will pay special attention to the following areas: modelling and redefining business processes, market analysis, the development of broadband networks and services, the implementation of cost model projects, the regulation of the postal services market, and the project ―e-Agencija‖ (e-Agency).

State aid

According to data of the Croatian Competition Agency, more aid was granted in Croatia in 2010 compared to 2009, and its share in GDP also increased. Total state aid granted in 2010 amounted to HRK 9,381.5m, which is 8% more than in 2009, whereas the share of total aid in GDP stood at 2.8% in 2010, a 0.21 percentage point rise compared to 2009, when it stood at 2.59%.

In 2010, aid per employed person amounted to HRK 6,789.9, up 13.27% relative to 2009, when that aid stood at HRK 5,994.2. Per capita state aid increased from HRK 1,975.4 in 2009 to HRK 2,132.2 in 2010, which is a 7.94% growth.

As regards individual state aid instruments, the upward trend of subsidies, which comprised 72.57% of total state aid, was halted in 2009, but the share of state guarantees (18.45%) increased. They are followed by tax exemptions with an 8.45% share, aid in the form of more favourable loans, accounting for 0.49% of total state aid, and aid in the form of shares in equity with a 0.04% share.

According to categories of state aid, aid for horizontal purposes and regional goals accounted for 10.08% of the total amount of state aid in 2010, while aid for special sectors in the field of industry and services accounted for 44.18% (of which the greatest part related to transport, shipbuilding and radio and television broadcasting). Another 42.71% of the total allocated state aid went to agriculture and fisheries, while state aid at the local level amounted to 3.03%. Total state aid, excluding agriculture and fisheries, amounted to HRK 5,374.6m in 2010, representing 1.61% of GDP, while aid excluding agriculture, fisheries and transport amounted to HRK 3,850.1m or 1.15% of GDP. Trade integration

According to national accounts data, the share of exports of goods and services in GDP expressed in current prices was 32.6% in the first half of 2011, while the share of imports of goods and services amounted to 37.4%. Analysing only trade in goods, the share of exports of goods in GDP was 20.1% in the first half of the year, while the share of imports of goods accounted for 32.8% of GDP.

In the first nine months of 2011, exports of goods increased by 7.4% year-on-year and imports of goods went up 1.4%. If the category of other means of transport, which distorts the trend of total trade in goods movements, is excluded from the exports and imports of goods, exports of goods increased by 5.2% and imports by 1.2% year-on-year in the first nine months of 2011. Coverage of imports of goods by exports of goods in the first nine months of 2011 was 61.3%, up 3.5 percentage points over the same period in 2010. Analysing trade in goods by activity, the largest contribution to exports growth in the first nine months of 2011 was made by the manufacture of other transport equipment (21.3% year-on-year growth), the manufacture of coke and refined petroleum products (13.6%), the manufacture of machinery and equipment (20.6%), the manufacture of basic metals (31.0%) and the manufacture of chemicals and chemical products (12.9%). The categories that contributed most to the growth of imports of goods in the first nine months of 2011 were: the extraction of crude petroleum and natural gas (10.6% year-on-year growth), the manufacture of coke and refined petroleum products (22.9%), electricity, gas, steam and air conditioning supply (51.1%), the manufacture of food products (4.9%) and the manufacture of basic metals (4.9%). In terms of the structure of exports of goods by country, the following countries accounted for the largest share in the total Croatian exports of goods in the first nine months of 2011: Italy (16.4%), followed by Bosnia and Herzegovina (11.8%), Germany (9.9%), Slovenia (7.7%) and Luxembourg (5.5%). Exports of goods to the following countries increased relative to the first nine months of 2010: to Luxembourg (by 222.5%), Bosnia and Herzegovina (by 10.5%) and Slovenia (by 7.8%), while exports to the following countries decreased: to Italy (-9.5%) and Germany (-0.7%). Exports to EU countries accounted for 60.6% of the total Croatian exports of goods in the first nine months of 2011, up 5.0% over the same period of 2010. Imports from EU countries accounted for 60.5% of the total Croatian imports of goods, which is a 3.4% rise compared to the same period of the previous year.

2.4 MAASTRICHT CRITERIA

In 2010, the deficit/surplus, i.e. net lending/borrowing of consolidated general government, amounted to -4.9% of GDP, in accordance with the ESA 95 methodology. In 2011, net lending/borrowing of consolidated general government is planned at -5.4% of GDP, but the preliminary data for the state budget level point to smaller net lending/borrowing than planned. The forthcoming mid-term period will be marked by the implementation of fiscal consolidation and the narrowing of fiscal imbalances.

Inflation One of the fundamental characteristics of the macroeconomic environment in 2010 was low consumer price inflation, resulting in a reduction of the average annual rate from 2.4% in 2009 to 1.1% in 2010. In addition to a fall in domestic demand, the slow-down of consumer price inflation was also affected by a reduction of unit labour costs. On the other hand, pressures on inflation acceleration were mainly a consequence of a rise in the prices of crude oil and food and other raw materials on the world‘s market. These pressures were intensified by the depreciation of the kuna against the US dollar. A favourable base period effect also contributed to a deceleration of consumer price inflation in 2010, in view of the fact that administrative prices had increased considerably in the previous year. In the first five months of 2011, inflation trended upwards, reaching 2.5% in May. The main reason for this inflation acceleration was the rise in the prices of food raw materials and energy on the world‘s market as of mid-2010. This resulted, with a certain time lag, in a rise in prices of processed foodstuff on the domestic market. Energy prices also increased in the first five months of 2011, but their annual growth rate decreased due to a favourable base period effect. In June, inflation dropped to 2.0%, holding steady around that level in the following two months, only to rise mildly to 2.2% in September. Such a deceleration of inflation was mainly the consequence of a reduced annual rate of change in the prices of unprocessed foodstuff. Domestic factors, such as weak personal consumption and reduced unit labour costs at the annual level, also contributed to low inflation. From October 2010 to September 2011, Croatia recorded an average annual inflation rate of 2% measured by the harmonised index of consumer prices (HICP), which was below the estimated reference value of 2.9%, implying that the Republic of Croatia met the Maastricht criterion of price stability in the observed period.

Exchange rate stability Stability of the exchange rate of the kuna against the euro was maintained in 2010, thus contributing to the stability of domestic prices and to the overall macroeconomic environment. In the first five months of 2011, supply and demand for foreign exchange were balanced, whereas appreciation pressures on the kuna strengthened in June. They were related to the activities of market participants in view of the expected new issue of domestic government bonds indexed to foreign currency and the expectation of an additional inflow of capital based on the borrowing of public enterprises. The kuna also strengthened as a result of a fall in corporate demand for foreign exchange and the beginning of the tourist season. In the second part of the third quarter, and especially in the fourth quarter, depreciation pressures prevailed, which can mostly be accounted for by increased demand for foreign exchange from the banking sector (due to the repayment of foreign liabilities and profit distribution to foreign owners) and companies (due to payments for imports). In December, the exchange rate of the kuna against the euro stabilised, standing at 7.39 HRK/EUR at the end of the year. In 2010, the CNB intervened five times on the foreign exchange market. The first three interventions (in June and in July) were directed at mitigating the appreciation of the kuna against the euro, whereas the last two (in November) mitigated depreciation pressures on the domestic currency. The net effect of the CNB‘s foreign exchange interventions was relatively low. The exchange rate of the kuna against the euro was stable in the first half of 2011, in conditions of balanced supply and demand on the foreign exchange market. In the third quarter, depreciation pressures on the exchange rate of the kuna against the euro prevailed, which was, in the conditions of abundant kuna liquidity, the result of an increased risk premium, the partial withdrawal of the deposits of foreign investors from the T-bill market, and the associated increased volume of banks‘ sale of foreign exchange to foreign banks, as well as the speculative behaviour of individual domestic banks. The central bank participated twice during the third quarter in the foreign exchange market in order to mitigate the nominal depreciation of the kuna. In addition to foreign exchange interventions, depreciation pressures were also mitigated by the central bank decision to raise the rate of the reserve requirement in October. At the end of October, the exchange rate stood at 7.49 HRK/EUR, which is a 1.2% rise compared to the exchange rate recorded at the end of December 2010.

Long-term interest rates

In March 2010, the Ministry of Finance of the Republic of Croatia issued a new series of 10-year kuna bonds paying a fixed interest rate of 6.75%, with the second tranche of that bond being issued in July 2010. For the purpose of assessing whether the long-term interest rate criterion is met, the reference interest rate of the Republic of Croatia was calculated by means of gross yield to maturity on the aforementioned issue of 10-year bonds. The long-term interest rate in Croatia, calculated in this manner, amounted to 6.3% in the observed period from October 2010 to September 2011. The estimated reference value for the Maastricht criterion of long-term interest rates was 7.5%, which implies that the Republic of Croatia met the standard set by Article 4 of the Protocol on the Convergence Criteria relating to the level of long-term interest rates in the EU Member States in the observed period. 3.1. FREE MOVEMENT OF GOODS General principles Negotiations on Chapter 1 – Free Movement of Goods were formally opened at the meeting of the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union held on 25 July 2008. After the opening of the negotiations, Croatia carried out a number of activities and measures with the aim of meeting the benchmarks for the provisional closing of this chapter, and continued to align its legislation with the acquis in the field in question. As a result of the activities taken, Chapter 1 was provisionally closed at the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union held in Brussels on 19 April 2010.

3.1.1 Horizontal measures Implementation of the activities of alignment and implementation of the technical regulations of the Republic of Croatia with the acquis and improvement of the legal and institutional framework in the field of technical legislation, in accordance with the legislation and practice of the EU will continue in 2012. The process of amending the current Act on Technical Requirements for Products and on Conformity Assessment (OG 20/10) is ongoing and these activities are planned to be completed in the second quarter of 2012. Amendments to the Act will be drawn up taking into consideration comments received from the EC and in accordance with the agreement reached with EC representatives at the meeting held in Zagreb on 14 December 2010, with the aim of alignment with Regulation (EC) No 765/2008 and Decision No 768/2008/EC. For the said purpose, in June 2011 the Ministry of the Economy initiated the formation of a working group for processing EC comments and drawing up a proposal of amendments to the said Act. The working group consists of representatives of the Ministry of Finance (Customs Directorate), State Inspectorate and Ministry of the Economy. Amongst other things, provisions will be incorporated that would represent the legal basis for establishing an interdepartmental working group for simpler co-ordination of the alignment of the legislation, considering that, in accordance with the review of the New Approach, all New Approach Directives that will have to be transposed into the Croatian legal system in the forthcoming period are being amended. The legislative amendments will also include incorporation of a provision prescribing that the above mentioned regulations must be adopted with the approval of the minister competent for the economy and, pursuant to the Act (horizontal legislation), a provision providing for the possibility of recognising examination certificates from abroad, under the conditions prescribed in the said Act, where the foregoing is not stipulated in special regulations regulating the field of free movement of goods. Amendments to the Regulation on formal notification procedures in the field of standards, technical regulations, and regulations on information society services (OG 28/09, 154/09) are planned for adoption in the fourth quarter of 2012. These will be aligned with EC comments and the new legislative framework in the field of standardisation that is in the process of adoption in the EU (Regulation of the European Parliament and of the Council on European standardisation amending Council Directive 89/686/EEC and 93/15/EEC and Directives 94/9/EC, 95/16/EC, 97/23/EC, 98/34/EC, 2004/22/EC, 2007/23/EC, 2009/105/EC and 2009/23/EC of the European Parliament and of the Council). Further to the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods of November 2007 and the Conclusion of the Government of the Republic of Croatia of 29 November 2007, entrusting the Ministry of the Economy with the duty of reporting to the Government of the Republic of Croatia twice a year concerning the implementation of the Strategy, two semi-annual reports will be adopted in 2012: Report on the Implementation of the Strategy for the Implementation of the Acquis Communautaire in the Field of Free Movement of Goods for the period July–December 2011; and Report on the Implementation of the Strategy for the Implementation of the Acquis Communautaire in the Field of Free Movement of Goods for the period January–June 2012. Pursuant to the Action Plan for the Compliance with Articles 34–36 of the Treaty on the Functioning of the European Union (November 2007) and the Conclusion of the Government of the Republic of Croatia of 29 November 2007, by which the Ministry of the Economy is obligated to submit a progress report to the Government of the Republic of Croatia twice a year on progress in the implementation of the Action Plan, two semi-annual reports will be adopted in 2012:  Report on the Implementation of the Action Plan for the Compliance with Articles 34–36 of the Treaty on the Functioning of the European Union for the period July– December 2011; and  Report on the Implementation of the Action Plan for the Compliance with Articles 34–36 of the Treaty on the Functioning of the European Union for the period January–June 2012. Preparations will continue for the establishment of the Central Contact Point (CCP) for products within the meaning of Articles 9 and 10 of Regulation (EC) No 764/2008 of the European Parliament and of the Council of 9 July 2008 laying down procedures relating to the application of certain national technical rules to products lawfully marketed in another Member State and repealing Decision No 3052/95/EC. The organisational unit within the Ministry of the Economy engaged in the activities of internal market co- ordination will be the contact point responsible for implementation of the Regulation. Continued consultations and negotiations connected with the conclusion of the ACAA (Agreement on Conformity Assessment and Acceptance of Industrial Products) is foreseen in 2012 for the following fields: recreational craft, personal protective equipment (protective gloves), low voltage equipment, electromagnetic compatibility and radio equipment and telecommunications terminal equipment and gas appliances, and continued consultations and negotiations connected with the conclusion of the ACAA in the field of New Approach Directives that are not included in the first round of negotiations. Administrative capacities will be further strengthened in 2012 with the recruitment of two employees to the organisational unit within the Ministry of the Economy engaged in the activities of internal market co-ordination. Strengthening of administrative capacities will be carried out through continued training of employees in the field of notification for the implementation of the Regulation on formal notification procedures in the field of standards, technical regulations, and regulations on information society services (OG 28/09, 154/09) transposing the provisions of Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations and Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998 amending Directive 98/34/EC. Employee training is planned in the area of SOLVIT, the on-line resolution of problems resulting from disputable implementation of regulations governing the internal market without the initiation of the court procedure (mediation) and in the establishment of a contact point for products within the meaning of Regulation (EC) No 764/2008. The organisational unit within the Ministry of the Economy engaged in the activities of internal market co-ordination will be the contact point responsible for implementation of the Regulation. Training of employees in 2012 will also be carried out through training programmes of the Training Centre for Civil Servants of the Ministry of Administration. Employees of the organisational unit within the Ministry of the Economy engaged in the activities of internal market co-ordination will also continue to take part as observers in the work of the committee "Senior Officials Group on Standardisation and Conformity Assessment Policy" (SOGS) and the Committee 98/34, and in the workshops "Hands on Training" of the regional multi-user project IPA 2011, at ISO workshops connected with conformity assessment and social responsibility, and will take part in further work of CROLAB, EUROLAB and CEFTA.

Standardisation In line with the obligations of the Croatian Standards Institute (CSI) arising from membership of the European standardisation organisations, CEN and CENELEC, the CSI will take active part in the administrative and technical bodies and committees of the said organisations and continuously monitor the development of standards at the European level to maintain the schedule of acceptance of European standards in the national standardisation system in line with the schedule of their development at the European level, within the deadlines established by CEN and CENELEC. In addition, it will monitor the development of standards at the international level and, whenever necessary (where there are no adequate European standards), will include such standards in the national standardisation system at the proposal of the CSI's technical committees. The CSI will strengthen co-operation with the users of standards in industry and other parties interested in the implementation of standards (state administration bodies, testing and certification laboratories, scientific and educational institutions, chambers, professional associations, etc.) and will encourage Croatian experts to participate in the work of national, European and international technical committees in accordance with the needs of the Croatian economy. The CSI will draw up lists of standards for state administration bodies which are used to implement the aligned legislation which is based on the New Approach Directives for the purpose of their publication in the Official Gazette. The catalogue of Croatian standards will be continuously updated and provide interested users of standards with all other information about Croatian, European and international standards. In 2012, the CSI plans to finish the activities of translating the European standards in the field of construction (Eurocodes) and the drawing up of national additions to such standards, including seismic and climatic parameters specific to the geographic area of the Republic of Croatia. The CSI will intensify work on the translation of European standards into Croatian for the purposes of industry and state administration bodies and on the development of a terminological basis for standardisation work, thereby facilitating the implementation thereof for a wider circle of national users. Work on the improvement of the IT system, including the improvement of content on the CSI's website and replacement of old IT equipment will continue. Notification activities within the meaning of the Agreement on Technical Barriers to Trade (TBT) with the World Trade Organisation (WTO) will continue, and the Secretariat of the WTO will continue to be notified of technical regulations, standards and conformity assessment procedures during the procedure of their adoption in the Republic of Croatia, in accordance with the obligations arising from the said Agreement. The CSI will continue to work on the promotion of standardisation and the use of standards by organising seminars and workshops on the implementation of standards in the technical legislation and public procurement, independently or in co-operation with other bodies for the purpose of training users of standards. In addition, activities on the training of CSI's employees will continue. Accreditation In September 2011, the European Cooperation for Accreditation (EA) launched the procedure of regular re-evaluation of the Croatian Accreditation Agency (CAA). According to the regular EA procedure (in line with EA 2/02), completion of the procedure and results of the regular re-evaluation of the CAA will be on the agenda of a session of the Multilateral Agreement Council (EA-MAC) scheduled for April 2012. Further to the said re-evaluation procedure, the CAA expects to retain the status of a signatory of the Multilateral Agreement on the Recognition of Accreditation with the EA (EA-MLA) for all accreditation schemes: calibration laboratories, testing laboratories, including medical laboratories, inspection bodies, certification bodies for the quality management system (QMS), certification bodies for the environment management system (EMS), certification bodies for products, and certification bodies for personnel. By keeping the status of an EA MLA signatory, in 2012 the CAA will keep the status of a signatory of the Agreement on Mutual Recognition of Accreditation with the International Laboratory Accreditation Cooperation (ILAC MRA) for testing and calibration laboratories and inspection bodies. In line with the international obligations assumed, in 2012 the CAA will continue to pursue active involvement in the work of EA's administrative and professional bodies: EA General Assembly (EA GA), EA Executive Committee (EA EX), Multilateral Agreement Council (EA MAC), Horizontal Harmonisation Committee (EA HHC), Certification Committee (EA CC), Inspection Committee (EA IC), Laboratories Committee (EA LC), Communications and Publications Committee (EA CPC), working groups and other ad hoc expert groups. Through participation in the work of the EA managerial and expert bodies, the CAA develops co-operation, harmonises work and exchanges experiences with the accreditation bodies of other EA Member States. The CAA has 26 full-time employees and 24 leading assessors, 50 assessors and 133 experts (as on 7 December 2011). Leading assessors are mostly employees, while assessors and experts are external associates. In view of continued growth in the number of accreditation applications and to ensure the timely performance of supervision of the accredited bodies of the CAA, administrative capacity strengthening will continue in 2012. In that regard, in 2012 the CAA will recruit three new employees for the implementation of accreditation procedures. With the aim of improving and maintaining the competence of employees and external associates (assessors) and harmonising their work, in 2012 the CAA will organise internal training, seminars and the exchange of experiences for CAA's assessors and employees. In addition, the CAA will take part in national and regional technical support projects (e.g., regional IPA 2011 project, regional PTB project), as part of which seminars for assessors are organised in various fields, and employees will be enabled to take part in specialised professional seminars, workshops and conferences. The CAA accredited 268 conformity assessment bodies in total (as on 7 December 2011): 20 calibration laboratories, 149 testing laboratories, five medical laboratories, 69 inspection bodies, five certification bodies for the quality management system (QMS), one certification body for the environment management system (EMS), three certification bodies for personnel, and 16 certification bodies for products. In 2012, the CAA will continue to supervise accredited bodies and issue new accreditations further to procedures underway and applications received in various areas. In 2012, the CAA will develop new accreditation schemes and new areas of activity in close co-operation with state administration bodies. It will also continue co-operation on the maintenance of the conformity assessment system and the implementation of accreditation procedures for conformity assessment bodies to whom the competent state administration bodies issue authorisations for the implementation of technical regulations in the field of food safety, safety of industrial products, environmental protection, protection of health, protection of consumers and other fields of public interest. In 2012, the CAA will continue to make the e-Register of Accredited Bodies available to the public on its website (www.akreditacija.hr). If the EA ensures the preconditions, the CAA will provide for technical expansion of the automatic data exchange about accredited bodies with the EA's website (EA Search Facility). For the time being, data about accredited testing and calibration laboratories are exchanged, where the expansion would enable searches of accredited inspection bodies from the Republic of Croatia at the EA's website.

Metrology State Office for Metrology (SOM) In 2012, representatives of the State Office for Metrology (SOM) will continue to pursue active work in the relevant European and international metrology institutions, primarily relating to the working groups of WELMEC (European Cooperation in Legal Metrology) and OIML (International Organization of Legal Metrology), in which SOM is an associate member and a full-fledged member, respectively. For the purpose of further strengthening regional co-operation, in 2012 SOM intends to take active part in the work of EURAMET Focus Group relating to further development of the metrology infrastructure in the region. Along with Croatia, metrology institutes from countries in the region are also involved in its work: Republic of Albania, Bosnia and Herzegovina, Montenegro, Republic of Serbia and Republic of Macedonia. In 2012, the State Office for Metrology will be actively involved in the implementation of the 2011 Multiuser IPA Programme "Quality Infrastructure in the Western Balkans and Turkey". The main purpose of this project is to improve the infrastructure of quality in the countries of the western Balkans for the purpose of further strengthening mutual economic co-operation and trade and raising the level of trust. Submission of the Proposal of the Strategy of the State Office for Metrology (2011–2015) to the procedure of the Government and the Croatian Parliament is planned in the first quarter of 2012. The need to draw up the Strategy of the State Office for Metrology (2011–2015) arose from the fact that the present National Strategy for Metrology (2008– 2013), accepted by the Government of the Republic of Croatia on 15 May 2008, formulates three possible options for the institutional restructuring of the State Office for Metrology. After the Act on Amendments to the Metrology Act (OG 111/07) foresaw the establishment of the Croatian Metrology Institute and after the Government of the Republic of Croatia adopted the Regulation on the establishment of the Croatian Metrology Institute (OG 77/08), transformation of the national metrology system at the national level began, i.e. detachment of basic metrology from the state administration system. Accordingly, SOM, as the central body of state administration, retained the right to manage and decide on issues pertaining to legal metrology, precious metals and type-approval, while the Croatian Metrology Institute (CMI) was formed as a scientific institution in the field of basic and scientific metrology, which will be active under the competence of the Ministry of Science, Education and Sports. The said concept was confirmed after the Government of the Republic of Croatia, at its session of 28 January 2010, adopted the Report on the Fulfilment of Obligations under Chapter 1 – Free Movement of Goods, which states ―the State Office for Metrology, represented in the Government of the Republic of Croatia through the Ministry of the Economy, Labour and Entrepreneurship further maintains the area of legal metrology relating to precious metals and type-approval of motor vehicles‖ (p. 10, paragraph 5). Preparation of the Proposal of the Strategy of the State Office for Metrology (2011–2015) should serve to provide a response in all strategically important issues concerning metrology as one of the key factors of the national infrastructure of quality. It should also provide answers to key issues concerning the forthcoming changes in the performance of the metrology activity and the restructuring of the metrology infrastructure as such. During the drawing up of the Strategy of the State Office for Metrology (2011–2015), special care was taken to keep it completely in line with the strategic goals of the Republic of Croatia with respect to which consensus had been reached. With the aim of further improvement of the system of management of SOM, the process of introducing the quality system by phases will continue in 2012. The foregoing also refers to the process of IT integration of the system of legal metrology which should contribute to the overall general quality of the manageability of the system of legal metrology at the national level. Submission of the new Proposal of the Metrology Act to the procedure of the Government and the Croatian Parliament is expected by the third quarter of 2012. The new Metrology Act will propose comprehensive solutions in the field of legal metrology, especially from the aspect of competence of SOM and authorised legal and natural persons (authorised economic operators), in the performance of metrology work within the national metrology system for the purpose of ensuring the continuity and quality of metrology work in the best possible way. The key priorities in 2012 are the following: continued active co-operation with state administration bodies with which co-operation can be developed in the field of metrology; continued promotional activities in the field of metrology for the purpose of further raising awareness of the importance of measuring and metrology among the public and the community at large; monitoring new areas in the field of metrology with the intention of improving the national metrology infrastructure; strengthening regional co-operation and the development of good neighbourly relations in the field of legal metrology with the relevant metrology institutions in the region (signing the Memorandum of Understanding and Cooperation); preparation of the new Precious Metals Act; completion of preliminary actions concerning membership in the EMLMF (Euro-Mediterranean Legal Metrology Forum); continued preliminary actions relating to the establishment of the Centre of Excellence in Metrology; establishment of the system of EENC - European Electronic Toll Collection.

Croatian Metrology Institute (CMI) The closing of negotiations on the distribution of employees and property between the CMI and SOM and the signing of the Distribution Study in March 2011 accelerated the transfer of the relevant functions, employees and equipment in the CMI. The Statute of the CMI was adopted on 29 March 2011, and the Government of the Republic of Croatia adopted a decision appointing the Institute director at its session in October 2011. CMI's activities planned for 2012 include: recruitment of two new employees; improvement of contractual relations between the CMI and the national calibration laboratories (NCLs) competent for national measurement standards (first/second quarter of 2012); establishment of contacts with regional national metrology institutes; development of the CMI's organisational and investment strategy in accordance with the National Metrology Strategy (third/fourth quarter of 2012), activities of presenting the CMI as an open platform for scientific metrology through public action, issuing a publication on the CMI and the establishment of its website (third quarter of 2012).

Market surveillance According to the 2012 Work Programme, the State Inspectorate will carry out inspections of the implementation of regulations in the field of technical legislation within the competence of the State Inspectorate. The Programme for 2012 plans the implementation of administrative surveillance of products (electrical equipment, textile products and footwear, gas appliances, construction products, personal protective equipment, etc.), and the sampling of products (electrical equipment, and products covered by the General Product Safety Directive: children's clothing with laces, children's furniture and equipment for children, children‘s bicycles, ladders) placed on the market in the Republic of Croatia. In the 2012 State Budget, funds have been earmarked for the testing of sampled products, and the inspections will include general use items, products intended for children and products that showed a high level of non-conformity during the implementation of surveillance in previous years. Strengthening of co-operation continues with the Customs Administration, i.e. the establishment of a mutual exchange of information with the Customs Service and in relation to the implementation of the Act on Technical Requirements for Products and on Conformity Assessment (OG 20/10). The State Inspectorate will continue to co-ordinate the work of the Commission for co-ordination and communication by and between inspections in charge of the supervision of products placed on the market and/or made available on the market of the Republic of Croatia according to the Plan of Work for 2012. Activities necessary for introducing the system of quality management in the field of surveillance of technical products will also continue, as will further development of the e- Register information system. Preparations continue for RAPEX, with the State Inspectorate as the contact point. Education and training of inspectors connected with RAPEX and in co-operation with other RAPEX contact points will also continue, with the aim of achieving readiness for its implementation as of the accession of the Republic of Croatia to the European Union. In 2012, co-operation will be ongoing with other central bodies of state administration, especially in connection with the co-ordination of inspections, and with expert institutions for the testing of samples, and the informing of the public on activities in the field of surveillance of technical products and informing through the website of the State Inspectorate and the media about dangerous products found on the market of the Republic of Croatia posing a risk to consumer health and safety. There will also be further training of market inspectors in the field of implementation of the New Approach Directives that will be carried out by experts of the State Inspectorate who underwent training for specific directives.

3.1.2 Old Approach Directives Medicinal products for human use In 2012, further alignment of the regulations in the field of medicinal products with the acquis will continue. The Ordinance on good laboratory practice, which must be aligned with Directive 2004/10/EC on the harmonisation of laws, regulations and administrative provisions relating to the application of the principles of good laboratory practice and the verification of their applications for tests on chemical substances and Directive 2004/9/EC on the inspection and verification of good laboratory practice (GLP), is planned for adoption. In 2012, the drawing up of the new Medicinal Products Act will begin and should be adopted in the first quarter of 2013. The Act will enter into force on the date of accession of the Republic of Croatia to the European Union when the Medicinal Products Act now in force will cease to have effect. The Act will be fully aligned with Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on medicinal products for human use with its amendments. Chemicals1 In 2012, further alignment of the national legislation with the new acquis and the implementation of legislation and subordinate legislation will continue. In 2012, adoption of the following act is planned: Act on the Implementation of Regulation (EC) No Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006. In 2012, adoption of the following subordinate legislation is planned: Ordinance on amendments to the Ordinance on the list of existing active substances permitted in biocidal products (alignment with Commission Directives 2011/10/EU, 2011/11/EU, 2011/12/EU, 2011/13/EU, 2011/71/EU, 2011/66/EU, 2011/67/EU and 2011/69/EU); Ordinance on amendments to the Ordinance on the list of existing active substances not permitted in biocidal products (alignment with Commission Decision 2011/391/EU); List of biocidal products granted marketing authorisation (implementation of Article 118 of Directive 98/8/EC on biocidal products); List on amendments to the List of dangerous chemicals whose placing on the market is prohibited or restricted (alignment with Commission Regulation (EU) No 207/2011, Commission Regulation (EU) No 366/2011, Commission Regulation (EU) No 494/2011, and Commission Regulation (EU) No 1102/2008); List of products subject to the approval issuing procedure at the European Union level (alignment with Commission Regulation (EU) No 143/2011); Ordinance on amendments to the Ordinance on classification, labelling and packaging of dangerous chemicals (OG 64/11) (alignment with the Commission Regulation (EU) No 286/2011); Ordinance on amendments to the Ordinance on classification, labelling and packaging of dangerous chemicals (OG 23/08, 64/09 and 113/10) (alignment with the Commission Regulation (EU) No 1152/2010); Ordinance on amendments to the Ordinance on the import and export of dangerous chemicals (OG 73/09, 104/10) (alignment with Commission Regulation (EU) No 214/2011 and the Commission Regulation (EU) No 834/2011). Detergents The Act on the Implementation of Regulation (EC) No 648/2004 of the European Parliament and of the Council of 31 March 2004 on detergents, and the National Programme for Supervising Conformity with the Principles of Good Laboratory Practice is planned to be adopted in 2012.

1 Adoption of acts and subordinate legislation planned in 2012 is also outlined in Chapter 3.27. Environment Toys In 2012, adoption of the Ordinance on amendments to the Ordinance on toy safety for its full alignment with Directive 2009/48/EC of the European Parliament and of the Council of 18 June 2009 on toy safety is planned, and comments received from the European Commission will be taken into account. Veterinary medicinal products With respect to the strengthening of administrative capacities, the recruitment of six expert assistants for veterinary medicinal products is planned in the Department for Veterinary Medicinal Products within the Veterinary Directorate of the Ministry of Agriculture. Motor vehicles In 2012, transposition of ten EU regulatory acts is planned (three directives and seven regulations) in the form of ten ordinances (as shown in the tables). In 2012, representatives of the State Office for Metrology - Department for the Type-approval of Motor Vehicles will continue to take part as observers at meetings and working groups concerning motor vehicles, agricultural tractors and emissions of pollutants from non-road machinery organised by the European Commission. As part of the IPA 2010 - FFRAC Programme, the second quarter of 2012 will see the commencement of the Twinning project "Creating a comprehensive information system for the type-approval of vehicles and parts". This project will enable the initiation of preliminary actions that should finally lead to the establishment of an appropriate special information system connected with the type-approval of vehicles and their parts, as one of the key preconditions for quality implementation of the system of type-approval. Further to the new Roads Act (OG 84/11) of 20 July 2011, introduction of an electronic system for toll collection and interoperability (EENC) is planned. Accordingly, the State Office for Metrology has been appointed as the competent institution for the issuance of certificates on the meeting of technical conditions and interoperability elements. Emissions of pollutants from engines installed in non-road mobile machinery Development of the acquis in the field of pollutants from engines installed in non-road mobile machinery and preparations for the establishment of a system for the supervision and testing of emissions from non-road machinery will continue to be regularly monitored, in line with the relevant provisions of the Ordinance on the emission of pollutants into the air from internal combustion engines installed in non-road mobile machinery (OG 16/09). Prepackaged products Drawing up of an updated version of the Ordinance on metrological requirements for prepackaged products with the same nominal quantities of contents marked by weight or by volume and of the Ordinance on metrological requirements for bottles used as measuring containers is underway, in line with comments received from the EC. Adoption is expected by the end of the fourth quarter of 2012. Measurement units Appropriate amendments of the Ordinance on units of measurement are planned. They should be adopted by the third quarter of 2012 at the latest.

3.1.3 New Approach Directives

Ecodesign requirements for energy-related products (EUP) In the second quarter of 2012, adoption of the Ordinance on amendments to the Ordinance on the setting of ecodesign requirements for energy-related products is planned, for the purpose of its alignment with Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products. Efficiency requirements for new hot-water boilers fired with liquid and gaseous fuels In the second quarter of 2012, adoption of the Ordinance on amendments to the Ordinance on requirements for new hot-water boilers fired with liquid and gaseous fuels is planned, for the purpose of its alignment with Directive 2008/28/EC of the European Parliament and of the Council of 11 March 2008. Gas appliances In the second quarter of 2012, adoption of the Ordinance on amendments to the Ordinance on gas appliances is planned, for the purpose of alignment with Directive 2009/142/EC of the European Parliament and of the Council of 30 November 2009 and comments of the European Commission. Construction products In 2012, amendments to the Act on Construction Products (OG 86/08) will be adopted in a way to ensure implementation of the transitional provisions that the Republic of Croatia cannot implement, considering that the Regulation on construction products does not apply directly in the legal system of the Republic of Croatia. Further to the said changes, the commencement of authorisation and notification of Croatian bodies for the assessment of conformity of construction products in line with the Regulation will be carried out. Meanwhile, the administrative capacities will be strengthened in the Ministry of Construction and Physical Planning, in the part in which it is necessary for the MCPP to fulfil conditions set for the notifying authority, and to carry out control procedures ensuring accurate implementation of the legislation on construction products. For such purpose, an appropriate module of the REGIS IT system will be developed to include information about the existing documents. Training will also be held for employees of MCPP, and training for economic operators to raise their awareness of changes in the field of construction products. Recreational crafts and marine equipment In relation to strengthening the administrative capacity for the surveillance of placing products on the market, and in accordance with the Action Plan for the meeting of recommendations of the peer-review mission of the European Commission and the European Maritime Safety Agency (EMSA) of June 2009, relating to marine equipment and recreational craft, amendments to the Regulation on the internal structure of the Ministry of Maritime Affairs, Transport and Infrastructure will be adopted in the part concerning the Directorate for Maritime Safety, for the purpose of establishing a special department within the inspection service competent for the performance of the surveillance of placing products on the market. In the fourth quarter of 2012, it is necessary to recruit three inspectors for navigation safety in the organisational unit competent for market surveillance. Furthermore, throughout 2012, training will be organised for authorised market surveillance officers concerning placing on the market of maritime equipment and recreational craft, and concerning co-operation with other competent bodies (State Inspectorate, Customs Administration) in accordance with the prescribed procedures. Adoption of the abovementioned amendments to the Regulation on the internal organisation of the Ministry of Maritime Affairs, Transport and Infrastructure and the recruitment of the said inspectors for maritime safety will be the basis for all further activities in the field of surveillance of the placing on the market of recreational craft and the meeting of all obligations assumed within the framework of the negotiations with the European Union in this field. Radio equipment and telecommunications terminal equipment (RTT equipment) The Ministry of Maritime Affairs, Transport and Infrastructure drew up a proposal of the Ordinance on radio equipment and telecommunications terminal equipment, thereby fully transposing Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity into the Croatian legislation. The proposal of the said Ordinance was submitted to the European Commission for final deliberation, and following alignment with the final opinion, the Ordinance is planned to be adopted. In relation to strengthening administrative capacities, according to the structure of the MMATI, the work posts of section head and expert adviser were formed in the Directorate for Electronic Communications and Post, Department for Electronic Communications, Section for Expert/Technical and Economic Affairs. Amongst other things, these positions are in charge of co-operation in the preparation and drawing up of draft proposals of legislation and other regulations, proposals of strategies, studies, guidelines and programmes within the field of radio equipment and telecommunications terminal equipment, and proposals of action plans for their implementation. The recruitment of new staff is planned in 2012. Electromagnetic compatibility (EMC) In relation to strengthening administrative capacities, according to the structure of the MMATI, the work posts of section head and expert adviser were formed in the Directorate for Electronic Communications and Post, Department for Electronic Communications, Section for Expert/Technical and Economic Affairs. Amongst other things, they are in charge of co-operation in the preparation and drawing up of draft proposals of legislation and other regulations, proposals of strategies, studies, guidelines and programmes within the field of electromagnetic compatibility, and proposals of action plans for their implementation. The recruitment of new personnel to the said work posts is planned in 2012, and this is included in the tables concerning administrative needs in the field of radio equipment and telecommunications terminal equipment. Cableway installations designed to carry persons In terms of the administrative capacity in this field, the Ministry of Maritime Affairs, Transport and Infrastructure plans to recruit two employees in 2012, in line with the objective possibilities and needs presented in the 2011 plan. In view of the specific qualifications structure and professional conditions that are presently not met by employees of the Ministry and other state administration bodies, filling the said working posts cannot be carried out by reassignment or in some other way. Therefore, it is planned to ensure an amount from the budget that includes the salary, other remuneration, and funds needed for the professional training of employees. Measuring instruments Adoption of the new Ordinance on technical and metrological requirements for measuring instruments is planned in the second quarter of 2012. In 2012, the State Office for Metrology will continue to monitor developments in the field of implementation of the Directive on measuring instruments (2004/22/EC) and the Directive on non-automatic weighing instruments (2009/23/EC) and to proceed with the training of authorised officers for further improvement of capacity in the field of implementation of the Directive on measuring instruments and the Directive on non-automatic weighing instruments.

Non-automatic weighing instruments Adoption of the Ordinance on amendments to the Ordinance on metrological and essential requirements for non-automatic weighing instruments is envisaged in the second quarter of 2012. Potentially explosive atmospheres (ATEX) In 2012, activities will proceed on the monitoring the list of harmonised European standards in the field of the ATEX Directive (94/9/EC) published in the Official Journal of the EU, their transposition into the Croatian standards and their publication in the Official Gazette. Furthermore, in 2012, the Ordinance on reaction to fire and other requirements that must be satisfied by buildings in the case of fire is planned for adoption, thereby aligning the Croatian legislation with the relevant decisions of the EC following the Directive on Construction Products (89/106/EEC) in the part relating to reaction and resistance to fire. Regarding the strengthening of administrative capacity, in 2012, it is planned to continue recruiting new staff in the competent services and carrying out education and training for employees through seminars concerning the implementation of the ATEX Directive, and the procurement and upgrading of technical (information) equipment and vehicles, necessary for the performance of duties. Explosives for civil use and pyrotechnic articles Following the adoption of the Act on Amendments to the Dangerous Goods Transport Act, adoption of the Ordinance on the appearance and form of the document for the transport of explosive substances within the EU, in line with Commission Decision 2004/388/EC of 15 April 2004 on an Intra-Community transfer of explosives document is planned for 2012. The Ministry of Maritime Affairs, Transport and Infrastructure is responsible for adopting the Act on Amendments to the Dangerous Goods Transport Act and submitting it to Government procedure. In addition, in 2012, the list of adopted harmonised standards following Directive 2007/23/EC will be published. The list of harmonised European standards in the field of explosive substances published in the Official Journal of the EC will continue to be monitored, and will be transposed into the Croatian standards and published in the Official Gazette. Regarding the strengthening of administrative capacity, the recruitment of new employees in the competent services will continue in 2012, as will education and training for employees through seminars concerning the production and trading in explosive substances and English language courses, and the procurement and upgrading of technical (IT) equipment and vehicles necessary for the performance of duties.

3.1.4 Procedural issues Notification procedures Further activities connected with the contact point regarding formal notification in the field of standards, technical regulations, and regulations on information society services will continue in 2012, including preparations for the establishment of the Central Contact Point (CCP) within the Ministry of the Economy, drawing up of a proposal of the form (for the submission of notifications to the CCP) pursuant to Article 6, paragraph 2 of the Regulation on formal notification procedures in the field of standards, technical regulations and regulations on information society services (OG 28/09, 154/09), and the organisation and holding of training in the field of notification. The contact point for formal notifications in the Republic of Croatia is the organisational unit within the Ministry of the Economy engaged in the activities of internal market co-ordination. Weapons The Final Proposal of the Act on Amendments to the Weapons Act is scheduled to be submitted for its second reading in the Croatian Parliament in the first quarter of 2012. After adoption of the Act, the Ordinance on the special criteria that must be satisfied by institutions and other legal persons to train citizens in proper use of weapons is planned for adoption in the second quarter of 2012. Training will be organised for approximately 130 employees concerning weapons in police administrations and police stations, especially with respect to resolving the issue of procurement and registration of weapons and, in that sense, detecting potential forgeries, determining the brand and model of weapons, resolving cases within the legally prescribed time limits, and updated and accurate entry of data in the Information System of the Ministry of the Interior. IT improvement of the competent organisational units in police administrations and police stations will be carried out through the procurement of information equipment to accelerate the process of issuing approvals for the acquisition of weapons and the drawing up of weapons licences. Modernisation of the register of citizens' weapons on the portal of the Information System of the Ministry of the Interior is planned for the third quarter of 2012.

3.1.5 Free movement of cultural goods Alignment of the Ordinance on conditions for issuing licences for the export and movement of cultural goods from the Republic of Croatia (OG 141/06) with the acquis, i.e. Council Regulation (EC) No 116/2009 of 18 December 2008 on the export of cultural goods (Codified version) is envisaged in 2012.

3.1.1 Horizontal measures

Legislative measures a) Legislative measures

To be submitted for Ordinal Competent Numbe Legislative measure To be aligned with the following acts of the acquis Government r authority procedure Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products. Act on Amendments to the Act on Technical 32008R0765 1 Requirements for Products and on Conformity ME 2nd quarter 2012 Assessment Decision No 768/2008/EC of the European Parliament and of the Council of 9 July 2008 on a common framework for the marketing of products and repealing Council Decision 93/465/EEC

32008D0768

b) Subordinate legislation

Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the Regulation on amendments to the provision of information in the field of Regulation on formal notification in the Act on Technical Requirements for Products technical standards and regulations field of standards, technical 1 ME and on Conformity Assessment (OG 20/10), 4th quarter 2012 regulations, and regulations Article 20 31998L0034 concerning information society services Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998 amending Directive 98/34/EC 31998L0048

c) Strategies and action plans or programmes

Ordinal Competent To be submitted for Measure Number authority Government procedure

Report on the Implementation of the Strategy for the Implementation 1 of the Acquis Communautaire in the Field of Free Movement of Goods ME 1st quarter 2012 for the period July–December 2011

Report on the Implementation of the Strategy for the Implementation 2 of the Acquis Communautaire in the Field of Free Movement of Goods ME 3rd quarter 2012 for the period January–June 2012

Report on the Implementation of the Action Plan for Alignment with 3 Articles 34–36 of the Treaty on the Functioning of the European Union ME 1st quarter 2012 for the period July–December 2011

Report on the Implementation of the Action Plan for Alignment with 4 Articles 34–36 of the Treaty on the Functioning of the European Union ME 3rd quarter 2012 for the period January–June 2012

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES Recruitment of two employees in the organisational unit within the Ministry of the Economy engaged in the activities of internal market co- ME In 2012 HRK 198,400.00 ordination

EDUCATION AND TRAINING

Training of employees in the field of notification for the implementation of the Regulation on formal notification in the field of standards, technical regulations, and regulations concerning information society services (OG 28/09, 154/09) transposing Directive 98/34/EC of the European ME - Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and In 2012 regulations and Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998 amending Directive 98/34/EC

Further education of employees in the field of notification and work on the SOLVIT system, on-line resolution of problems arising from the disputable ME - application of regulations governing the internal market, and without the initiation of court proceedings (mediation). In 2012

Training of employees for work at the contact point for products within the meaning of Regulation (EC) No 764/2008 of the European Parliament and of the Council of 9 July 2008 laying down procedures relating to the application of certain national technical rules for products lawfully ME - marketed in another Member State and repealing Decision No 3052/95/EC. The organisational unit within the Ministry of the Economy In 2012 engaged in the activities of internal market co-ordination will be the contact point responsible for implementation of the Regulation.

Education of employees through training programmes of the Training ME In 2012 - Centre for Civil Servants of the Ministry of Administration.

OTHER

Preparations for the establishment of the contact point within the Ministry of the Economy for products within the meaning of Regulation (EC) No 764/2008 of the European Parliament and of the Council of 9 July 2008 ME - laying down procedures relating to the application of certain national In 2012 technical rules to products lawfully marketed in another Member State and repealing Decision No 3052/95/EC.

ACAA:

- continued consultations and negotiations concerning the conclusion of the ACAA for the following fields: recreational craft, personal protective equipment (protective gloves), low voltage equipment, gas appliances, electromagnetic compatibility and radio equipment and ME - telecommunications terminal equipment;

- continued consultations and negotiations concerning the conclusion of In 2012 the ACAA in the field of New Approach Directives not included in the first round of negotiations.

Standardisation

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

EDUCATION AND TRAINING

Professional training of CSI employees in the field of standardisation CSI HRK 50,000.00 through participation in the seminars and workshops of European and In 2012 international standardisation organisations

Professional training in the form of English language courses for CSI CSI HRK 100,000.00 employees In 2012

Training of CSI employees in the professional services of the Institute (IT CSI HRK 20,000.00 experts, accounting, human resources) In 2012

TECHNICAL AND IT EQUIPMENT

Upgrading the IT system to ensure more effective standardisation work CSI In 2012 HRK 200,000.00

Replacing old IT equipment CSI In 2012 HRK 70,000.00

Improving the content of the CSI's website, including on-line sale of In 2012 CSI HRK 250,000.00 standards

Accreditation

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of three new employees for work on accreditation (as the CAA 4th quarter 2012 HRK 120,000.00 result of retirement)

EDUCATION AND TRAINING Training of CAA employees and assessors CAA continuous HRK 50,000.00

TECHNICAL AND IT EQUIPMENT Maintenance of the existing equipment and premises CAA continuous HRK 60,000.00

Metrology

SOM

Legislative measures

c) Strategies and action plans or programmes

Ordinal Competent To be submitted for Measure Number authority Government procedure

1 Strategy of the State Office for Metrology (2011–2015) SOM 1st quarter 2012

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of 19 new employees SOM In 2012 HRK 2,928,080.00

In 2012

Recruitment of three employees in the Type-approval Department SOM (in line with the deadlines HRK 432,000.00 set out in the Roads Act (OG 84/11)

EDUCATION AND TRAINING

Education of employees through training programmes of the Training In 2012 SOM - Centre for Civil Servants of the Ministry of Administration

Education of employees as part of EU funds management programmes SOM In 2012 -

TECHNICAL AND IT EQUIPMENT Procurement of office IT equipment SOM In 2012 HRK 300,000.00

Procurement of the network infrastructure and servers SOM In 2012 HRK 100,000.00

OTHER

Cofinancing the Twinning light project: "Creating a comprehensive SOM HRK 166,665.00 information system for the type-approval of vehicles and their parts", as 3rd/4th quarter 2012 part of IPA 2010 FFRAC

Consolidation of business premises - providing for a single location for all In 2012 SOM HRK 30,000.00 laboratories and offices in the City of Zagreb

CMI

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of two new employees CMI 1st quarter 2012 HRK 150,000.00

EDUCATION AND TRAINING Professional training of CMI employees CMI In 2012 HRK 16,000.00

Business travels of CMI representatives to EURAMET's technical In 2012 committees, EURAMET's general assemblies and representation of CMI CMI HRK 172,000.00 at conferences

TECHNICAL AND IT EQUIPMENT Procurement of IT equipment and applications for performing regular In 2012 CMI HRK 150,000.00 activities

Procurement of measurement instruments for national laboratories CMI In 2012 HRK 1,000,000.00

OTHER Intellectual services (design of website, brochures, etc.) CMI In 2012 HRK 50,000.00

Other services (provided by NCLs) CMI In 2012 HRK 1,500,000.00 Membership fees in international and other organisations CMI In 2012 HRK 400,000.00

Market surveillance

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

EDUCATION AND TRAINING

Professional development of market inspectors in the implementation of continuous eight EU Directives (Croatian regulations), the RAPEX system and the SI - Guide for Risk Assessment and Valuation

3.1.2 Old Approach Directives

Medicinal products for human use

Legislative measures

b) Subordinate legislation

To be Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of the submitted for Subordinate legislation Number subordinate legislation acquis authority Government procedure

Directive 2004/10/EC of the European Parliament and of the Council of 11 February 2004 on the harmonisation of laws, regulations and administrative provisions relating to the application of the principles of good laboratory practice and the verification of their applications for tests on Medicinal Products Act (OG 71/07, 45/09, chemical substances 124/11), Article 10 1 Ordinance on good laboratory practice MH 2nd quarter 2012 32004L0010

Directive 2004/9/EC of the European Parliament and of the Council of 11 February 2004 on the inspection and verification of good laboratory practice (GLP)

32004L0009

Chemicals2

Legislative measures

2 Adoption of legislation and subordinate legislation planned in 2012 is also outlined in Chapter 3.27. Environment a) Legislative measures

Ordin To be submitted for al Competent Legislative measure To be aligned with the following acts of the acquis Numb Government authority er procedure

Act on the Implementation of Regulation (EC) No Regulation (EC) No 1272/2008 of the European Parliament and of the Council Regulation (EC) No 1272/2008 of the European of 16 December 2008 on classification, labelling and packaging of substances Parliament and of the Council of 16 December 2008 and mixtures, amending and repealing Directives 67/548/EEC and st 1 on classification, labelling and packaging of MH 1 quarter 2012 substances and mixtures, amending and repealing 1999/45/EC, and amending Regulation (EC) No 1907/2006 Directives 67/548/EEC and 1999/45/EC, and 32008R1272 amending Regulation (EC) No 1907/2006

b) Subordinate legislation

To be submitted for Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of Subordinate legislation Government Number authority subordinate legislation the acquis procedure

Article 18 of Directive 98/8/EC concerning Act on Biocidal Products (OG 63/07, 35/08 the placing of biocidal products on the List of biocidal products granted nd 1 MH market 2 quarter 2012 marketing authorisation and 56/10), Article 23 31998L0008

Commission Directive 2011/10/EU of 8 February 2011 amending Directive 98/8/EC

of the European Parliament and of the Council to include bifenthrin as an active MH Act on Biocidal Products (OG 63/07, 35/08 substance in Annex I thereto and 56/10), Article 7, paragraph 2 32001L0010 Deadline for the alignment of Member States Ordinance on amendments to the with this Directive: 31 January 2012 2 Ordinance on the list of existing active 1st quarter 2012 substances permitted in biocidal products Commission Directive 2011/11/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include (Z,E)-tetradeca-9,12- dienyl acetate as an active substance in Annexes I and IA thereto 32001L0011 Deadline for the alignment of Member States with this Directive: 31 January 2012 Commission Directive 2011/12/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include fenoxycarb as an active substance in Annex I thereto 32001L0012 Deadline by which the Member States must achieve conformity with the said Directive: 31 January 2012 Commission Directive 2011/66/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include 4,5-Dichloro-2-octyl-2H-isothiazol-3- one as an active substance in Annex I thereto 32001L0066 Deadline for the alignment of Member States with this Directive: 30 June 2012 Commission Directive 2011/67/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include abamectin as an active substance in Annex I thereto 32001L0067 Deadline for the alignment of Member States with this Directive: 30 June 2012

Commission Directive 2011/69/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include imidacloprid as an active substance in Annex I thereto 32001L0069 Deadline for the alignment of Member States with this Directive: 30 June 2012

Commission Directive 2011/78/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include Bacillus thuringiensis subsp. israelensis Serotype H14, Strain AM65-52 as an active substance in Annex I thereto 32001L0078 Deadline for the alignment of Member States with this Directive: 30 September 2011 Commission Directive 2011/79/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include fipronil as an active substance in Annex I thereto 32001L0079 Deadline for the alignment of Member States with this Directive: 30 September 2011 Commission Directive 2011/80/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include lambda-cyhalothrin as an active substance in Annex I thereto 32001L0080 Deadline for the alignment of Member States with this Directive: 30 September 2011 Commission Directive 2011/81/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include deltamethrin as an active substance in Annex I thereto 32001L0081 Deadline for the alignment of Member States with this Directive: 30 September 2011 Commission Directive 2011/71/EU of 26 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include creosote as an active substance in Annex I thereto 32001L0071 Deadline for the alignment of Member States with this Directive: 31 April 2012 Commission Directive 2011/13/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include nonanoic acid as an active substance in Annex I thereto 32001L0013 Deadline for the alignment of Member States with this Directive: 31 January 2012

Ordinance on amendments to the 2011/391/EU: Commission Decision of 1 Ordinance on the list of existing active Act on Biocidal Products (OG 63/07, 35/08 July 2011 concerning the non-inclusion of 3 MH certain substances in Annex I, IA or IB to 1st quarter 2012 substances not permitted in biocidal and 56/10), Article 7, paragraph 2 Directive 98/8/EC concerning biocidal products products 32011D0391 Commission Regulation (EU) No 207/2011 of 2 March 2011 amending Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (Diphenylether, pentabromo derivative and PFOS)

32011R0207 Commission Regulation (EU) No 336/2011 of 14 April 2011 amending Regulation (EC) List of amendments to the List of Chemicals Act (OG 150/05, 53/08, 49/11), No 1907/2006 of the European Parliament 4 MH 1st quarter 2012 dangerous chemicals whose placing Article 53, paragraph 2 and of the Council on the Registration, on the market is prohibited or Evaluation, Authorisation and Restriction of restricted Chemicals (REACH) as regards Annex XVII (Acrylamide)

32011R0366 Commission Regulation (EU) No 494/2011 of 20 May 2011 amending Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (Cadmium)

32011R0494 Regulation (EC) No Regulation (EC) No 1102/2008 of the European Parliament and of the Council of 22 October 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury (Text with EEA relevance)

32008R0494 Commission Regulation (EU) No 143/2011 of 17 February 2011 amending Annex XIV to Chemicals Act (OG 150/05, 53/08, 49/11), Regulation (EC) No 1907/2006 of the 5 List of products subject to the MH 1st quarter 2012 approval issuing procedure at Article 53a European Parliament and of the Council on European Union level the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) 32011R0143 Commission Regulation (EU) No 214/2011 of 3 March 2011 amending Annexes I and V to Regulation (EC) No 689/2008 of the European Parliament and of the Council concerning the export and import of dangerous chemicals Chemicals Act (OG 150/05, 53/08, 49/11), 6 Ordinance on amendments to the MH 32011R0214 1st quarter 2012 Ordinance on the export and import of Article 55c, paragraph 4 dangerous chemicals Commission Regulation (EU) No 834/2011 of 3 August 2011 amending Annex I to Regulation (EC) No 689/2008 of the European Parliament and of the Council concerning the export and import of dangerous chemicals

32011R0834 Commission Regulation (EU) No 286/2011 of 10 March 2011 amending, for the Ordinance on amendments to the purposes of its adaptation to technical and Chemicals Act (OG 150/05, 53/08, 49/11), 7 Ordinance on classification, labelling MH scientific progress, Regulation (EC) No 2nd quarter 2012 and packaging of dangerous Article 28, paragraph 2 1272/2008 of the European Parliament and chemicals (OG 23/08, 64/09 and of the Council on classification, labelling and 113/10) packaging of substances and mixtures

32011R0286 Commission Regulation (EU) No 1152/2010 of 8 December 2010 amending, for the purpose of its adaptation to technical Ordinance on amendments to the progress, Regulation (EC) No 440/2008 Chemicals Act (OG 150/05, 53/08, 49/11), 8 Ordinance on classification, labelling MH laying down test methods pursuant to 2nd quarter 2012 and packaging of dangerous Article 28, paragraph 2 Regulation (EC) No 1907/2006 of the chemicals (OG 23/08, 64/09 and European Parliament and of the Council on 113/10) the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH)

32010R1152

Detergents

Legislative measures a) Legislative measures

Ordin To be submitted for al Competent Legislative measure To be aligned with the following acts of the acquis Numb Government authority er procedure

Regulation (EC) No 648/2004 of the European Parliament and of the Council Act on the Implementation of Regulation (EC) No 1 648/2004 of the European Parliament and of the MH of 31 March 2004 on detergents 1st quarter 2012 Council of 31 March 2004 on detergents 32004R0648

c) Strategies and action plans or programmes

Ordinal Competent To be submitted for Measure Number authority Government procedure

2nd quarter 2012

National Programme for Supervising Conformity with the Principles of MH (to be adopted by the Minister, not to be submitted for 1 Good Laboratory Practice in accordance with Article 2, paragraph 1, Government procedure) item 31 of the Ordinance on good laboratory practice (OG 38/08)

Toys

Legislative measures

b) Subordinate legislation

Directive 2009/48/EC of the European Ordinance on amendments to the Act on General Use Items (OG 85/06, 75/09 Parliament and of the Council of 18 June 2009 1 MH 2nd quarter 2012 Ordinance on toy safety and 43/10), Article 7, paragraph 3 on toy safety

32009L0048

Veterinary medicinal products

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Planned recruitment of six expert assistants for veterinary medicinal MA In 2012 HRK 504,000.00 products in the Veterinary Directorate

EDUCATION AND TRAINING

Training of employees in the field of veterinary-medicinal products MA In 2012 HRK 20,000.00

Motor vehicles

Legislative measures

b) Subordinate legislation

Commission Directive 2008/89/EC of 24 Ordinance on the type-approval of September 2008 amending, for the purposes of motor vehicles and their trailers Road Traffic Safety Act its adaptation to technical progress, Council 1 concerning the installation of lighting SOM Directive 76/756/EEC concerning the 1st quarter 2012 and light-signalling devices – Vehicle (OG 67/08, 68/10, 74/11), Article 275 installation of lighting and light-signalling Ordinance 120 (Issue 02) devices on motor vehicles and their trailers 32008L0089

Directive 2009/139/EC of the European Ordinance on the type-approval of Road Traffic Safety Act Parliament and of the Council of 25 November two- or three-wheeled motor vehicles 2009 on statutory markings for two- or three- st 2 SOM 1 quarter 2012 relating to statutory markings - Vehicle (OG 67/08, 68/10, 74/11), Article 275 wheel motor vehicles Ordinance 207 (Issue 02) 32009L0139

Road Traffic Safety Act Commission Regulation (EU) No 459/2011 of st 3 Ordinance on amendments to the SOM 1 quarter 2012 Ordinance on the type-approval of (OG 67/08, 68/10, 74/11), Article 275 12 May 2011 amending Regulation (EC) No motor vehicles with regard to the 631/2009 laying down detailed rules for the protection of pedestrians and other implementation of Annex I to Regulation (EC) vulnerable road users - Vehicle No 78/2009 of the European Parliament and of Ordinance 158 (Issue 01) the Council on the type-approval of motor vehicles with regard to the protection of pedestrians and other vulnerable road users

32011R0459

Commission Directive 2010/26/EU of 31 March Ordinance on amendments to the 2010 amending Directive 97/68/EC of the Ordinance relating to measures European Parliament and of the Council on the against the emission of gaseous and Road Traffic Safety Act approximation of the laws of the Member States relating to measures against the 4 particulate pollutants from internal SOM 1st quarter 2012 combustion engines to be installed in (OG 67/08, 68/10, 74/11), Article 275 emission of gaseous and particulate pollutants non-road mobile machinery - Vehicle from internal combustion engines to be Ordinance 401 (Issue 00) installed in non-road mobile machinery 32009L0026 Commission Regulation (EU) No 183/2011 of 22 February 2011 amending Annexes IV and VI to Directive 2007/46/EC of the European Parliament and of the Council establishing a framework for the approval of motor vehicles and their trailers and of systems, components and separate technical units intended for such vehicles (Framework Directive)

Ordinance on amendments to the Road Traffic Safety Act 32011R0183 Ordinance on the EU type-approval 5 SOM 2nd quarter 2012 and individual approval of motor (OG 67/08, 68/10, 74/11), Article 275 Commission Regulation (EU) No 678/2011 of vehicles (Issue 00) 14 July 2011 replacing Annex II and amending Annexes IV, IX and XI to Directive 2007/46/EC of the European Parliament and of the Council establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles (Framework Directive)

32011R0678

Commission Regulation (EU) No 566/2011 of 8 Ordinance on amendments to the June 2011 amending Regulation (EC) No Ordinance on the type-approval of Road Traffic Safety Act 715/2007 of the European Parliament and of motor vehicles relating to measures the Council and Commission Regulation (EC) SOM 2nd quarter 2012 6 for reducing the emission of pollutants (OG 67/08, 68/10, 74/11), Article 275 No 692/2008 as regards access to vehicle from their engines - Vehicle Ordinance repair and maintenance information 102 (Issue 01) 32011L0566 Directive 2011/72/EU of the European Ordinance on amendments to the Parliament and of the Council of 14 September Ordinance on the type-approval Road Traffic Safety Act 2011 amending Directive 2000/25/EC as procedures for agricultural or forestry regards the provisions for tractors placed on 7 SOM 3rd quarter 2012 tractors as regards the emission of (OG 67/08, 68/10, 74/11), Article 275 the market under the flexibility scheme, pollutants from their engines - Vehicle including the Corrigendum Ordinance 323 (Issue 00) 32011L0072

Commission Regulation (EU) No 582/2011 of 25 May 2011 implementing and amending Regulation (EC) No 595/2009 of the European Parliament and of the Council with respect to emissions from heavy duty vehicles (Euro VI) and amending Annexes I and III to Directive 2007/46/EC of the European Parliament and of the Council (the part relating to Directive 2007/46/EC) 32011R0582

Regulation (EC) No 595/2009 of the European Parliament and of the Council of 18 June 2009 on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI) and on access to vehicle repair and maintenance information and amending Regulation (EC) No 715/2007 and Directive 2007/46/EC and repealing Ordinance on amendments to the Directives 80/1269/EEC, 2005/55/EC and Ordinance on the type-approval 2005/78/EC (except the part relating to procedure for compression-ignition Regulation (EC) No 715/2009). engines and gas engines for use in Road Traffic Safety Act vehicles, and vehicles equipped with SOM 32009R0595 4th quarter 2012 9 such engines, as regards the emission (OG 67/08, 68/10, 74/11), Article 275 control of gaseous pollutants and Commission Regulation (EU) No 582/2011 of polluting particles from engines – 25 May 2011 implementing and amending Vehicle Ordinance 141 (Issue 01) Regulation (EC) No 595/2009 of the European Parliament and of the Council with respect to emissions from heavy duty vehicles (Euro VI) and amending Annexes I and III to Directive 2007/46/EC of the European Parliament and of the Council (the part relating to Regulation (EC) No 595/2009)

32011R0582 Prepackaged products

Legislative measures

b) Subordinate legislation

Directive 2007/45/EC of the European Parliament and of the Council of 5 September 2007 laying down rules on nominal quantities for prepacked products, repealing Council Directives 75/106/EEC and 80/232/EEC, and Ordinance on metrological amending Council Directive 76/211/EEC requirements for prepackaged Metrology Act (OG 163/03, 194/03, 111/07), products with the same nominal SOM 4th quarter 2012 1 Articles 35, 36 and 39 32007L0045 quantities of contents marked by weight or by volume Council Directive 76/211/EEC of 20 January 1976 on the approximation of the laws of the Member States relating to the making-up by weight or by volume of certain prepackaged products 31976L0211

Council Directive 75/107/EEC of 19 December Ordinance on metrological 1974 on the approximation of the laws of the Metrology Act (OG 163/03, 194/03, Member States relating to bottles used as requirements for bottles used as SOM 3rd quarter 2012 2 03.111/07), Article 40 measuring containers measuring containers 31975L0107

Measurement units

Legislative measures

b) Subordinate legislation

To be submitted Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of the for Subordinate legislation Number authority subordinate legislation acquis Government procedure Council Directive 80/181/EEC of 20 December 1979 on the approximation of the laws of the Member States relating to units of measurement

31980L181

Metrology Act (OG 163/03, 194/03, 111/07), Ordinance on units of measurement SOM 4th quarter 2012 1 Article 10 Directive 2009/3/EC of the European Parliament and of the Council of 11 March 2009 amending Council Directive 80/181/EEC on the approximation of the laws of the Member States relating to units of measurement

312009L003

3.1.3 New Approach Directives

Ecodesign requirements for energy-related products (EUP)

Legislative measures

b) Subordinate legislation

To be submitted Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of the for Subordinate legislation Number subordinate legislation acquis authority Government procedure

Directive 2009/125/EC of the European Parliament Ordinance on amendments to the and of the Council of 21 October 2009 establishing Act on Technical Requirements for Ordinance on the setting of ecodesign a framework for the setting of ecodesign 1 ME Products and on Conformity Assessment 2nd quarter 2012 requirements for energy-related requirements for energy-related products (OG 20/10), Article 5, paragraph 1 products 32009L0125

Requirements for new hot-water boilers fired with liquid and gaseous fuels Legislative measures b) Subordinate legislation

Directive 2008/28/EC of the European Parliament

and of the Council of 11 March 2008 amending Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy- Ordinance on amendments to the Act on Technical Requirements for using products, as well as Council Directive Ordinance on efficiency requirements 1 ME Products and on Conformity Assessment 92/42/EEC and Directives 96/57/EC and 2nd quarter 2012 for new hot-water boilers fired with (OG 20/10), Article 5, paragraph 1 2000/55/EC, as regards the implementing powers liquid or gaseous fuels conferred on the Commission

32008L0028

Gas appliances

Legislative measures

b) Subordinate legislation

Directive 2009/142/EC of the European Parliament

and of the Council of 30 November 2009 relating to Act on Technical Requirements for Ordinance on amendments to the gas appliances 1 ME Products and on Conformity Assessment 2nd quarter 2012 Ordinance on gas appliances (OG 20/10), Article 5, paragraph 1

32009L0142

Construction products

Legislative measures

a) Legislative measures

To be submitted for Ordinal Competent Numbe Legislative measure To be aligned with the following acts of the acquis Government authority r procedure

Regulation (EC) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the marketing of rd Act on Amendments to the Construction Products 3 quarter 2012 1 MCPP construction products and repealing Council Directive 89/106/EEC Act 32011R0305

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of four employees for normative and expert-analytical work concerning the implementation of the acquis in the field of construction products (the obligation to set up the national information point, the MCPP 2nd quarter 2012 HRK 480,000.00 strengthening of MCPP as the notifying authority, control of manufacturers and authorised persons and projects and buildings regarding the implementation of the system of construction products)

Recruitment of two employees for inspection work concerning implementation of the acquis in the field of construction products (the obligation to set up the national information point, the strengthening of MCPP 2nd quarter 2012 HRK 270,000.00 MCPP as the notifying authority, control of manufacturers and authorised persons and projects and buildings regarding the implementation of the system of construction products)

EDUCATION AND TRAINING Training of persons engaged in issues pertaining to construction products MCPP continuous HRK 20,000.00

Training of economic entities on changes in the system of construction continuous MCPP HRK 50,000.00 products

TECHNICAL AND IT EQUIPMENT Upgrading of the REGIS IT application with a module for monitoring the work of bodies authorised to work according to the Regulation on MCPP HRK 240,000.00 construction products and other issues related to construction products 2nd quarter 2012 OTHER Work of the commission for construction products MCPP continuous 20,000.00

Costs of surveillance of the system regulating issues pertaining to continuous MCPP 100,000.00 construction products

Other services connected with the system of construction products continuous MCPP 40,000.00 (standards, student employment – data entry in the IT system, etc.)

Recreational craft and marine equipment

Legislative measures

b) Subordinate legislation

Commission Directive 2009/26/EC of 6 April 2009 amending Council Directive 96/98/EC on marine equipment

32009L0026 Regulation on the internal organisation of the Ministry of the Sea, Transport Maritime Code (OG 181/04, 76/07, Council Directive 96/98/EC of 20 December 1996 1. and Infrastructure - in the part MMATI 146/08, 61/11), Article 77, paragraph 3, on marine equipment 1st quarter 2012 regarding the Directorate for Maritime and Article 78, paragraphs 2 and 3 31996L0098 Safety

Directive 94/25/EC of the European Parliament and of the Council of 16 June 1994 relating to recreational craft

31994L0025 Directive 2003/44/EC of the European Parliament and of the Council of 16 June 2003 amending Directive 94/25/EC relating to recreational craft

32003L0044

Regulation (EC) No 1882/2003 of the European Parliament and of the Council of 29 September 2003 adapting to Council Decision 1999/468/EC the provisions relating to committees which assist the Commission in the exercise of its implementing powers laid down in instruments subject to the procedure referred to in Article 251 of the EC Treaty

32003R1882

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of three inspectors for navigation safety in the organisational MMATI 2nd quarter 2012 HRK 220,000.00 unit competent for surveillance of placing on the market

EDUCATION AND TRAINING

Organisation and holding of training for authorised staff involved in the surveillance of placing marine equipment and recreational craft on the market, and for co-operation with other competent bodies (State MMATI In 2012 HRK 20,000.00 Inspectorate, Customs Administration) in accordance with the prescribed procedures

OTHER

Formation of an organisational unit competent for the surveillance of 2nd quarter 2012 placing on the market of marine equipment and recreational craft within MMATI - the Directorate for Maritime Safety, Protection of the Sea and Inland Waterways

Implementation of the Action Plan for satisfying the recommendations of the Peer Mission of the European Commission and of the European MMATI - Maritime Safety Agency (EMSA) of June 2009 - Activities for 2010 and 2nd quarter 2012 2011 in the part relating to marine equipment

Radio and telecommunication terminal equipment

Legislative measures

b) Subordinate legislation

To be submitted for Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of the Subordinate legislation Government Number authority subordinate legislation acquis procedure

Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio Ordinance on radio equipment and Act on Technical Requirements for equipment and telecommunications terminal 1. telecommunications terminal MMATI Products and on Conformity Assessment equipment and the mutual recognition of their 2nd quarter 2012 equipment (OG 20/10), Article 5, paragraph 1 conformity

31999L0005

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES Recruitment of two employees in the MMATI Directorate for Electronic Communications and the Post, Department for Electronic MMATI 3rd quarter 2012 HRK 220,000.00 Communications, Section for Expert/Technical and Economic Affairs

Electromagnetic compatibility (EMC)

Legislative measures

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of two employees in the MMATI Directorate for Electronic Communications and the Post, Department for Electronic MMATI 3rd quarter 2012 HRK 220,000.00 Communications, Section for Expert/Technical and Economic Affairs

Cableway installations designed to carry persons

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES Recruitment of new employees - cableway installations:

Senior expert advisor - one employee MMATI 3rd quarter 2012 HRK 150,000.00

Expert advisor - one employee

Measuring instruments

Legislative measures

b) Subordinate legislation

Directive 2004/22/EC of the European Metrology Act (OG 163/03, 194/03, 111/07), Parliament and of the Council of 30 March Article 16, paragraph 3 2004 on measuring instruments

32004L0022 Ordinance on technical and metrological requirements for SOM 2nd quarter 2012 1. Act on Technical Requirements for Products Commission Directive 2009/137/EC of 11 measuring instruments and on Conformity Assessment (OG 20/10), November 2009 amending Directive Article 5 2004/22/EC of the European Parliament and of the Council of 30 March 2004 32009L0137

Non-automatic weighing instruments

Legislative measures

b) Subordinate legislation

Metrology Act (OG 163/03, 194/03, 111/07), Article 16, paragraph 3 Council Directive 90/384/EEC of 20 June 1990 Amendments to the Ordinance on on the harmonization of the laws of the metrological and essential SOM Member States relating to non-automatic 2nd quarter 2012 1. Act on Technical Requirements for Products requirements for non-automatic weighing instruments weighing instruments and on Conformity Assessment (OG 20/10), Article 5 31990L0384

Potentially explosive atmospheres (ATEX)

Legislative measures

b) Subordinate legislation

2003/43/EC: Commission Decision of 17 January 2003 establishing the classes of reaction-to-fire performance for certain construction products

32003D0043

Ordinance on reaction to fire and other Fire Protection Act (OG 92/10), Article 26, Corrigendum, 8.2.2003. 1. requirements that must be satisfied by MI 3rd quarter 2012 paragraph 1 buildings in the case of fire 32003D0043R(01)

2000/147/EC: Commission Decision of 8 February 2000 implementing Council Directive 89/106/EEC as regards the classification of the reaction to fire performance of construction products 32000D0147

Corrigendum, 24.3.2001.

32000D0147R(02)

2000/367/EC: Commission Decision of 3 May 2000 implementing Council Directive 89/106/EEC as regards the classification of the resistance to fire performance of construction products, construction works and parts thereof

32000D0367

Corrigendum, 14.8.2001.

32000D0367R(01)

2000/553/EC: Commission Decision of 6 September 2000 implementing Council Directive 89/106/EEC as regards the external fire performance of roof coverings

32000D0553

2001/671/EC: Commission Decision of 21 August 2001 implementing Council Directive 89/106/EEC as regards the classification of the external fire performance of roofs and roof coverings

32001D0671 2005/610/EC: Commission Decision of 9 August 2005 establishing the classes of reaction-to-fire performance for certain construction products

32005D0610

c) Strategies and action plans or programmes

Ordinal Competent To be submitted for Measure Number authority Government procedure

1. National Fire Protection Strategy 2012–2021 MI 2nd quarter 2012

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

Recruitment of one employee in the Sector for Inspection MI 4th quarter 2012 HRK 36,000.00

Recruitment of ten employees in the Interior Inspectorates of police PA 4th quarter 2012 HRK 286,000.00 administrations

EDUCATION AND TRAINING Organisation of a one-day seminar concerning the implementation of the MI 2nd quarter 2012 HRK 15,000.00 ATEX Directive

TECHNICAL AND IT EQUIPMENT

Procurement of new and supplementing the existing prescribed personal MI 2nd quarter 2012 HRK 750,000.00 protective and technical equipment PA

Explosives for civil use and pyrotechnic articles

Legislative measures

b) Subordinate legislation

2004/388/EC: Commission Decision of 15 April Ordinance on the appearance and form Act on Amendments to the Dangerous 2004 on an Intra-Community transfer of 1. of documents for the transport of MI Goods Transport Act (in the process of explosives document 4th quarter 2012 explosive substances within the EU adoption) 32004D0388

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES Recruitment of one employee in the Sector for Inspection MI 4th quarter 2012 HRK 36,000.00

Recruitment of ten employees in the Inspectorates of the Interior in police PA 4th quarter 2012 HRK 286,000.00 administrations

EDUCATION AND TRAINING

Organisation of a one-day seminar concerning trading in explosive substances MI 2nd quarter 2012 HRK 15,000.00

Sending one employee from the headquarters for a 14-week intensive English MI 1st quarter 2012 HRK 1,400.00 language learning course

TECHNICAL AND IT EQUIPMENT

Procurement of new and supplementing the existing prescribed personal MI, PA 4th quarter 2012 HRK 75,000 protective and technical equipment

3.1.4 Procedural issues

Notification procedures

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

OTHER

Preparations for the setting up of the Contact Point - Central Contact ME In 2012 - Point (CCP) within the Ministry of the Economy

Drawing up of a proposal of the Form (for the submission of notifications to CCP) pursuant to Article 6, paragraph 2 of the Regulation on formal ME - notification procedures in the field of standards, technical regulations and In 2012 regulations on information society services (OG 28/09, 154/09)

Weapons

Legislative measures

a) Legislative measures

To be submitted for Ordinal Competent Numbe Legislative measure To be aligned with the following acts of the acquis Government authority r procedure

Directive 2008/51/EC of the European Parliament and of the Council of 21 1. Act on Amendments to the Weapons Act MI May 2008 amending Council Directive 91/477/EEC on control of the 1st quarter 2012 acquisition and possession of weapons

32008L0051

b) Subordinate legislation

To be submitted for Ordinal Competent Legal basis for the adoption of To be aligned with the following acts of Subordinate legislation Number subordinate legislation the acquis Government authority procedure Council Directive 91/477/EEC of 18 June Ordinance on the special criteria that 1991 on control of the acquisition and must be satisfied by institutions and Act on Amendments to the Weapons Act (in possession of weapons as amended by 1. MI 2nd quarter 2012 other legal persons to train citizens in the process of adoption) Directive 2008/51/EC proper use of weapons 32008L0051

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

EDUCATION AND TRAINING

Education of approx. 130 employees concerning weapons in police administrations and police stations, especially with respect to resolving the issue of procurement and registration of weapons, and in that sense 2nd quarter 2012 detecting potential forgeries, determining the brand and model of MI HRK 30,000.00 weapons, resolving cases within the legally prescribed time limits, and updated and accurate entry of data in the Information System of the Ministry of the Interior.

TECHNICAL AND IT EQUIPMENT IT improvement of the competent organisational unit in police administrations and police stations through the procurement of MI HRK 30,000.00 information equipment to accelerate the process of issuing approvals for 3rd quarter 2012 the acquisition of weapons and the drawing up of weapons licence.

MISCELLANEOUS

Modernisation of the citizens' weapons records on the portal of the 3rd quarter 2012 As part of the regular activities of the MI Information System of the Ministry of the Interior. Ministry of the Interior

3.1.5 Free movement of cultural goods

Legislative measures

b) Subordinate legislation

Ordinance on amendments to the Act on Amendments to the Act on the Council Regulation (EC) No 116/2009 of 18 Ordinance on conditions for issuing Protection and Preservation of Cultural December 2008 on the export of cultural 1. licences for the export and movement MC 2nd quarter 2012 Goods (OG 69/99, 151/03, 87/09, 88/10, goods (Codified version) of cultural goods from the Republic of 61/11), Article 68, paragraph 5 Croatia 32009R0116

3.2. FREEDOM OF MOVEMENT FOR WORKERS Activities aimed at strengthening administrative capacity and preparing for the implementation of regulations for the co-ordination of social security systems are underway. The Republic of Croatia will be fully prepared to apply European regulations for the co-ordination of social security systems by the date of accession to the EU. In order to best prepare for the electronic exchange of data in the social security system, the Republic of Croatia started to participate in the work of the Technical Commission and, as of January 2012, it also participates as an observer in the work of the Administrative Commission for the Coordination of Social Security Systems. The Republic of Croatia also adopted an act designating one of the institutions in the system (the Central Registry of Insured Persons) as the Access Point for electronic data exchange. Further activities related to the preparation and improvement of the system for electronic data exchange at the national level will be carried out as part of the twinning project "Strengthening the administrative capacity of the competent authorities and implementation agencies for the coordination of social security schemes", which started in late October 2011. The main project beneficiary and co-ordinator is the Ministry of Labour and the Pension System. Other users include the Ministry of Health, Ministry of Social Policy and Youth and the following competent institutions: the Croatian Pension Insurance Institute, Croatian Institute for Health Insurance, Croatian Employment Service, and the Central Registry of Employees. As part of the project, training will be carried out during 2012 for public and civil servants who will work on the application of EU regulations for the co-ordination of social security systems, and for those who will later train others, according to the "train-the-trainers" principle, so as to ensure the transfer of knowledge and continuity in the application of acquired knowledge. An analytical study will also be prepared on the impact of freedom of movement for workers on the Croatian administrative system as well as an assessment of the financial impact on the Croatian health care system. A strategy will be developed for raising awareness on the freedom of movement for workers, in order to establish a system for providing information to migrant workers on their social security rights. As regards the introduction of the European Health Insurance Card (EHIC), the Ordinance on the European Health Insurance Card was adopted (OG 153/11). In the area of strengthening administrative structures, progress has been made in all institutions engaged in co-ordination, except for the Ministry of Labour and the Pension System, which requires further strengthening administrative capacity to efficiently carry out responsibilities related to co-ordination of social security systems. Further progress must also be focused on strengthening administrative capacity in the field of family benefits from the scope of the Ministry of Social Policy and Youth, in relation to the EU co- ordination of social security systems, to ensure that the Republic of Croatia is fully prepared for the implementation of regulations in this extremely sensitive field by the date of accession to the EU.

Administrative capacity

Measure Competent authority Adoption/implementation deadline Planned budgetary funds

RECRUITMENT OF NEW EMPLOYEES Strengthening the administrative structure – recruitment of one MSPY 2nd quarter 2012 HRK 74 365.42 new employee. EDUCATION AND TRAINING Implementation of the twinning project "Strengthening the The Republic of Croatia will contribute administrative capacity of the competent authorities and MLPS 1st quarter 2012 5% of the project value (project value implementation agencies for the coordination of social security is EUR 1 million) schemes".

3.3. RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES

The entry into force of the Services Act (OG 80/11) provided a general legal framework for services from the scope of application of the Services Directive and laid down the obligation to align special legislation with the Services Act. A part of the provisions, primarily those concerning the freedom to provide services in the territory of the Republic of Croatia, will enter into force on the date of accession of the Republic of Croatia to the European Union. The alignment of the remaining provisions is in progress and will be completed in 2012. The establishment of a single electronic contact point for services in May 2011 marked the end of the first stage of its set-up. In 2012, during the second stage, activities on the establishment of electronic procedures will continue so that service providers from signatory countries of the European Economic Area can register their establishments in the Republic of Croatia remotely, by electronic means, under terms equivalent to those for Croatian citizens. The administrative structure for the coordination of all activities related to the implementation of the Services Directive was established in 2011.The appointed coordinators participate in the preparation of the Report on the Implementation of the Implementation Plan of the Services Directive and will act as competent authorities for activities related to administrative cooperation of the Republic of Croatia with European Union Member States and the European Commission through the IMI (Internal Market Information) system. Further alignment of the Act on Amendments to the Act on Mediation in Real Estate Sale (OG 107/07) with provisions of the Services Directive and the Services Act (OG 80/01) is planned for the first quarter of 2012. The adoption of the Ordinance on the administrative structure for the implementation of the Services Act is planned in the first quarter of 2012, pursuant to Article 38 of the Services Act. This Ordinance will prescribe the scope of activities of the national IMI coordinator, the national coordinator for services and the notification coordinator, and will incorporate some of the provisions of the Services Directive not regulated by the Services Act. In 2012, the Fifth Report on the Implementation of the Implementation Plan for the Services Directive will be prepared for the period from October 2011 to March 2012, and the Sixth Report on the Implementation of the Implementation Plan for the Services Directive for the period from April 2012 to September 2012. For the purpose of strengthening administrative capacity and training staff for the implementation and application of the Services Directive, the Ministry of the Economy will prepare, together with the Ministry of Regional Development and European Union Funds a Twinning light project from component I of the EU instrument for pre-accession assistance entitled "Transition Assistance and Institution Building", as part of the IPA 2010 programme ―A Flexible Facility for Reinforcement of Administrative Capacity‖. The approved project funds amount to EUR 222,222 and the Republic of Croatia participates with the obligatory 10% of funds (EUR 22,222). Signing of the contract is planned during the first half of 2012, while the beginning of the project is envisaged for the third quarter of 2012. Furthermore, strengthening administrative capacity in the part relating to the recognition of foreign diplomas and professional qualifications is necessary for the implementation of obligations from the Services Act and the Act on Regulated Professions and Recognition of Foreign Professional Qualifications and the Act on Architectural and Engineering Tasks and Activities in Physical Planning and Building. This obligation was envisaged in last year's programme, but was not fulfilled. Training of local and regional self-government bodies in county chambers of the economy and chambers of trades and crafts for the implementation of the Services Directive and the Services Act will include seminars and workshops organised by employees of the CCE, CCTC and ME. The intended purpose will be to familiarize economic entities, primarily small and medium sized enterprises and craftsmen, with legislation in the sector of services in the internal market, and with the single contact points in the Republic of Croatia and other European Union Member States. In accordance with the valid Regulation on internal organisation of the Ministry of the Economy (OG 41/08, 81/10, 131/10), the Department for the Development of Services in the Internal Market should have four employees. However, since one employee left the Department in November 2011, the functioning of the Department and the fulfilment of planned tasks has been jeopardized. For this reason, it is necessary to recruit one employee in the first quarter of 2012. One of the obligations undertaken during the negotiations was to strengthen the administrative capacity of the Department for the Development of Services in the Internal Market so that all activities related to the implementation of the Services Directive could be completed on time, i.e. by the date of accession of the Republic of Croatia to the European Union. Considering the complexity of the sector, the organisational structure of the Department with only four employees is the absolute minimum. The Regulation on the internal organisation of the Ministry of the Economy will have to be amended in 2012 to accommodate the recruitment of at least seven employees before the accession of the Republic of Croatia to the European Union. Furthermore, since one of the preconditions for the implementation of the Twinning light project is sufficient administrative capacity of the Department, the recruitment of one employee to the Department for the Development of Services in the Internal Market is necessary in the third quarter of 2012 when the project is scheduled to start. In relation to the mutual recognition of professional qualifications, revision of the List of Regulated Professions in the Republic of Croatia is planned in 2012 (hereinafter: the List). The List represents a starting point for the development of the National Database of Information on Regulated Professions and on the Recognition of Foreign Professional Qualifications (hereinafter: the Database), which will be kept by the contact point - the National ENIC/NARIC Office (an information centre for academic mobility and recognition of foreign higher education qualifications with the Agency for Science and Higher Education. Revisions of the List and building of the Database will be carried out, in addition to the national coordinator for regulated professions, by members of the Commission for the Interministerial Coordination of Regulated Professions. Members of the Commission will also act as appointed delegated coordinators for regulated professions that will be trained for work in the IMI system. The completion of the revision of the List is planned for the first quarter of 2012 so that necessary data could be entered into the Database. It is planned that all data will be entered into the Database by the end of 2012. Concerning regulated professions, activities in 2012 include the continuation of work on the coordination of study programmes in the academic fields of biomedicine and health (nursing, midwifery, doctors of medicine, doctors of dental medicine, pharmacy) with Directive 2005/36/EC, the establishment and coordination of activities of the Internal Working Group of the Ministry of Science, Education and Sports on regulated professions in preschool, elementary, secondary and higher education and participation in the preparation and implementation of the EC peer mission. In the area of postal services, the adopted Postal Services Act (OG 88/09 and 61/11) incorporated the EU acquis from the First and the Second Postal Directives, which was an obligation arising from benchmarks for closing negotiations on Chapter 3 - Right of Establishment and Freedom to Provide Services. This Act also incorporated certain provisions of the 2008 Third Postal Directive, pursuant to which Croatia, in agreement with the European Commission, requested a postponement of complete liberalisation of the postal services markets, or, more precisely, the possibility to reserve services for the provider of universal postal services (public operator) until 31 December 2012. Upon the completion of negotiations in Chapter 3, Croatia was granted a transitional period until the end of 2012 to achieve complete liberalisation of the postal market but was obliged to prepare the market for complete liberalisation by adopting a new Postal Services Act during this period. The new Postal Services Act will completely incorporate the EU acquis from the Third Postal Directive which implies, above all, complete liberalisation of the postal services market as of 1 January 2013, ensuring the provision of universal postal services and the determination of the manner of financing the obligatory provision of universal postal services. Recruitment of new staff is planned for 2012 since this measure was not fulfilled in 2011. HAKOM is planning to continue with the implementation of the IPA 2009 Twinning light project ―Support to HAKOM in the area of accounting separation of postal services‖, which started in November 2011. The expected duration of the project is nine months and its completion is envisaged for August 2012. The main objectives of this project include preparations for the implementation of accounting separation and the drafting of a manual for accounting separation, and training of HAKOM's employees in the area of accounting separation. In this manner, the administrative and regulatory capacity of HAKOM in the area of accounting separation will be reinforced in compliance with EU Postal Directives.

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2006/123/EC on services in the internal market Act on Amendments to the Real Estate 1. ME 32006L0123 1st quarter 2012 Brokerage Act 28 December 2009

Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service (First Postal Directive) 31997L0067 10 February 1999 Directive 2002/39/EC of the European Parliament and of the Council of 10 June 2. Postal Services Act MMTI 2002 amending Directive 97/67/EC with regard to the further opening to 3rd quarter 2012 competition of Community postal services (Second Postal Directive) 32002L0039 31 December 2002 Directive 2008/6/EC of the European Parliament and of the Council of 10 June 2002 amending Directive 97/67/EC with regard to the further opening to competition of Community postal services (Third Postal Directive) 32008L0006 31 December 2002

b) Subordinate legislation

Legal basis for the To be submitted for Competent adoption of No. Subordinate legislation To be aligned with the following acts of the acquis Government authority subordinate procedure legislation Services Act Directive 2006/123/EC on services in the internal market Ordinance on the administrative structure 1. ME (OG 80/11), 32006L0123 1st quarter 2012 for implementation of the Services Act Article 38 28 December 2009

c) Strategies and Action Plans or Programmes

Competent To be submitted for No. Measure authority Government procedure

Fifth Report on the Implementation of the Implementation Plan for the Services Directive for the period between 1 ME 2nd quarter 2012 October 2011 and March 2012

Sixth Report on the Implementation of the Implementation Plan for the Services Directive for the period between 2 ME 4th quarter 2012 April 2012 and September 2012

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of one employee in the Department for the Development of Services ME 1st quarter 2012 HRK 100,000.00 in the Internal Market Recruitment of one employee in the Department for the Development of Services ME 3rd quarter 2012 HRK 60,000.00 in the Internal Market Recruitment of two employees in the Postal Services Department of the 2nd MMTI HRK 220,000.00 Directorate for Electronic Communications and Post of the MMTI quarter 2012 Opening of a new position for normative and analytical tasks for implementation of the acquis on recognition of foreign diplomas and professional qualifications in MCPP 4th quarter 2012 State Budget construction EDUCATION AND TRAINING Twinning Light project (―Strengthening Croatian Administrative Capacities for Implementing the Services Directive‖) from Component I of the EU Instrument for 3rd quarter 2012 (beginning)- HRK 170,000.00 ME Pre-Accession Assistance, within the IPA 2010 programme ―A Flexible Facility for 2nd quarter 2013 (end) ( EUR 22,222) Reinforcement of Administrative Capacity‖ Seminars and workshops for bodies of local and regional self-government and for CCE, CCTC, ME 4th quarter 2012 - business entities Education and training of civil servants MCPP continuous State Budget OTHER Implementation of the IPA 2009 Twinning light project ―Support to HAKOM in the EU funds as part of IPA HAKOM 3rd quarter 2012 area of accounting separation of postal services‖ programme

3.4. FREE MOVEMENT OF CAPITAL

3.4.1. Movement of capital and current payments

As full alignment with the acquis communautaire has been achieved in this field, no activities are planned for 2012.

3.4.2. Anti-money laundering

In 2012, the Anti-Money Laundering Office and the Financial Inspectorate of the Ministry of Finance will continue to pursue activities aimed at strengthening the system for the prevention of money laundering and financing of terrorism. To this end, new employees will be recruited in the area of prevention and supervision of persons subject to the application and implementation of the Anti-Money Laundering and Terrorist Financing Act and in the area of IT support to the Anti-Money Laundering Office in line with the measures adopted by the Croatian Government regarding new recruitment in the state administration. Also, further training will be provided for employees of the Anti-Money Laundering Office and the Financial Inspectorate, and to persons subject to the implementation of the Anti-Money Laundering and Terrorist Financing Act. Training in the field of anti-money laundering and financing of terrorism associated with corruption-related criminal offences will also continue to be provided by the Anti-Money Laundering Office for employees of the Tax Administration, Customs Administration, Financial Police, Financial Inspectorate, Office for the Prevention of Corruption and Organised Crime (USKOK) and National Office for the Suppression of Corruption and Organised Crime (PNUSKOK).

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of employees for supervision of the application and implementation of the measures contained in the Anti-Money MF, Financial Inspectorate 2012 State Budget Laundering and Terrorist Financing Act, in line with the measures adopted by the Croatian Government regarding new recruitment Recruitment of two employees in the field of prevention and supervision of persons subject to the implementation of the Anti- Money Laundering and Terrorist Financing Act, and in the field of IT MF, Anti-Money Laundering 2012 State Budget support to the Office, in line with the measures adopted by the Office Croatian Government regarding new recruitment in the state administration EDUCATION AND TRAINING Training of employees of the Financial Inspectorate in the field of MF, Financial Inspectorate 2012 No additional expenses supervision and misdemeanour proceedings Training of persons subject to the application and implementation of the measures contained in the Anti-Money Laundering and Terrorist MF, Financial Inspectorate 2012 No additional expenses Financing Act MF, Anti-Money Laundering Training of employees of the Anti-Money Laundering Office 2012 No additional expenses Office Training of persons subject to the application and implementation of MF, Anti-Money Laundering the measures contained in the Anti-Money Laundering and Terrorist 2012 No additional expenses Office Financing Act Training provided by the Anti-Money Laundering Office for employees of the Tax Administration, Customs Administration, the MF, Anti-Money Laundering Financial Police, USKOK and PNUSKOK in the field of anti-money No additional expenses Office 2012 laundering and terrorist financing associated with corruption-related criminal offences TECHNICAL AND IT EQUIPMENT Procurement of equipment for the processing of data on persons subject to the application and implementation of the measures MF, Financial Inspectorate 2012 approx. HRK 55,000.00 contained in the Anti-Money Laundering and Terrorist Financing Act (scanner) according to the means available

3.5. PUBLIC PROCUREMENT

Subordinate legislation is planned for adoption in 2012, pursuant to the new Public Procurement Act (OG 90/11), which will result in further alignment with the relevant part of the acquis. The Ministry of the Economy (ME) will proceed with regular activities concerning the implementation of the established legislative framework, in particular through supervision, advisory activities and co-ordination of various training programmes in the field of public procurement (with the participation of other public procurement institutions). With regard to training, ME will continue with activities within the scope of the IPA Multi-Beneficiary Programme "Training in Public Procurement in the Western Balkans and Turkey". The IPA 2010 FFRAC Twinning light project ―Further Strengthening of the PPP System in the Republic of Croatia‖ will be implemented in 2012, with a view to further strengthening of human resources at the Agency for Public Private Partnership (APPP) and other relevant authorities, relating to the management of project preparation and implementation under the public private partnership model. In addition, education in the area of public private partnerships will continue for public sector bodies (at the central and local levels) in charge of the preparation and implementation of PPP projects, based on the prepared training programme. These education programmes will be implemented by the APPP staff. Furthermore, in 2012 the APPP staff will also provide training in the area of public procurement. In 2012, the State Commission for the Supervision of Public Procurement Procedures (SC) will place special importance on training for SC staff regarding the institutes and current developments in the area of legal protection at the normative level and in practice. The year 2012 will see a special emphasis on additional training in the context of expanding the scope of work of SC in accordance with the provisions of the Public Procurement Act (OG 90/11) relating to Directive 2007/66/EC, and in the context of preparations for public procurement procedures for EU Cohesion and Structural Funds after accession to full EU membership. With regard to the foregoing and the fact that the scope of work of SC is constantly and significantly increasing, it is necessary to recruit two additional expert advisors. The State Office for Central Procurement (SOCP) currently employs 14 civil servants, and the recruitment of two additional office advisors is planned in the second quarter of 2012 to strengthen the Department for the Analysis and Control of Central Public Procurement. Adoption of the Act on Amendments to the Concessions Act is planned in the second quarter of 2012. Amendments to the current Act will in no way prejudice the provisions and principles of the acquis. Certain legal provisions will be defined in the follow-up to the consultations of the European Commission with the Member States concerning the initiative to amend the concession rules at the level of Directive 2004/18/EC and Directive 2004/17/EC and judgements of the European Court. The amendments will include almost all the chapters of the Act, also taking into consideration the new Public Procurement Act, which enters into force on 1 January 2012, and the new General Administrative Procedures Act (OG 47/09). The new solutions will be directed towards a clearer, more detailed and more transparent definition of the procedures for the award of concessions, concession contracts, methods for their termination and the concessions policy in general, for the benefit of the public sector, concession providers, investors and financial institutions, citizens and service users. MF is planning close co-ordination with the European Commission, with the regular submission of the Draft proposal of the Act for review and approval in all drafting stages to ensure compliance with all the principles and rules arising from the acquis. In accordance with the amendments to the Concessions Act, amendments are also planned for the Ordinance on the establishment and keeping of the Concessions Register, allowing for better statistical control and more efficient supervision of concession contracts, and ensuring the fulfilment of the obligations of concession providers and concessionaires. The new Ordinance will provide a higher level of alignment with the Concessions Act and will implement terminology and data structuring in accordance with the practices of the European Union. The draft proposal of this subordinate act will also be sent to the European Commission for review and approval. All measures described in the part pertaining to concessions will be consolidated in the Action Plan for the improvement of the system of concessions and public private partnership in the Republic of Croatia. The Action Plan will define the measures, methods of implementation, competent authorities and time limits for their enforcement and its adoption by the Government is envisaged in the third quarter of 2012. With regard to administrative capacity in the area of concessions, the recruitment of two new employees is planned in the second quarter of 2012, to continue with training for existing and new employees through training sessions and seminars in the country and abroad. Training will also continue for concession providers, through one-day seminars organised by MF, in accordance with the training plan implemented within the framework of the Twinning project. Improvement of the Concessions Register through amendments to the Ordinance on the establishment and keeping of the Concessions Register envisages technical implementation within the electronic application of the Concession Register itself. Improvement of the Register is planned by expanding the scope of the data included, its systematisation and by additional data browsing and retrieval options. The implementation of this measure is planned for the first quarter of 2012.

Legislative activities a) Legal measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts 32004L0018 31 January 2006

1. Act on Amendments to the Concessions Act MF Directive 2004/17/EC of the European Parliament and of the Council of 31 2nd quarter 2012 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors 32004L0017 31 January 2006 Interpretative statements and communications of the EC, case law of the European Court

b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No Subordinate legislation Government authority subordinate legislation the acquis procedure Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting Regulation on public procurement for ME, Public Procurement Act (OG 90/11), Article 1. authorities or entities in the fields of defence 2nd quarter 2012 defence and security purposes Government 11, paragraph 4 and security, and amending Directives 2004/17/EC and 2004/18/EC (OJ L 216, 20. 8.2009.) 32009L0081 21 August 2011 Commission Regulation (EC) No 213/2008 of 28 November 2007 amending Regulation (EC) No 2195/2002 of the European Parliament and of the Council on the Regulation on the conditions for applying Common Procurement Vocabulary (CPV) and Public Procurement Act (OG 90/11), Article 2. the Common Procurement Vocabulary ME Directives 2004/17/EC and 2004/18/EC of the 1st quarter 2012 57, paragraph 2 (CPV) European Parliament and of the Council on public procurement procedures, as regards the revision of the CPV 32008R0213 15 September 2008 Commission Implementing Regulation (EU) No 842/2011 of 19 August 2011 establishing Public Procurement Act (OG 90/11), Article standard forms for the publication of notices ME, 3. Regulation on public procurement notices 18, paragraph 12, Article 55, paragraph 5 in the field of public procurement and 1st quarter 2012 Government and Article 122, paragraph 6 repealing Regulation (EC) No 1564/2005 32011R0842 16 September 2011 c) Strategies and Actions Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

Action Plan for the improvement of the system of concessions and public 1. MF, APPP 3rd quarter 2012 private partnership in the Republic of Croatia

Administrative capacity

Measure Competent authority Adoption/implementation deadline Planned budgetary funds

RECRUITMENT OF NEW EMPLOYEES

2 expert advisors DKOM 4th quarter 2012 HRK 320,000 2 Office advisors SOCP 2nd quarter 2012 HRK 200,000 Strengthening the administrative capacity of the Economy Directorate, MF 2nd quarter 2012 HRK 100,000 the Department for Concessions by recruiting two new employees EDUCATION AND TRAINING Coordinating the implementation of various training programmes in the ME continuous - area of public procurement Implementation of the IPA Multi-Beneficiary project "Training in Public ME continuous - Procurement in the Western Balkans and Turkey" Training programme in the area of PPP APPP continuous HRK 150,000 Professional workshops organised in accordance with the special requirements of DKOM employees concerning the institutes and current DKOM continuous - developments at normative and practical levels Education and training of employees SOCP continuous HRK 40,000 Education of employees of the Economy Directorate, the Department for MF continuous HRK 100,000 Concessions through training and seminars in the country and abroad Implementing training for concession providers by the Ministry of Finance through one-day seminars in the area of concessions and fiscal MF as of 2nd quarter 2012 HRK 50,000 issues concerning PPP projects TECHNICAL AND IT EQUIPMENT Concessions Register – introducing new technical solutions aimed at MF (FINA) 1st quarter 2012 HRK 200,000 improving the efficiency of the electronic data base

3.6. COMPANY LAW Legislative activity planned to be undertaken in 2012 is the drafting the Draft proposal of the Act on Amendments to the Companies Act in the fourth quarter of 2012, with the aim to implement Directive 2009/109/EC of the European Parliament and of the Council of 16 September 2009 amending Council Directives 77/91/EEC, 78/855/EEC and 82/891/EEC, and Directive 2005/56/EC as regards reporting and documentation requirements in the case of mergers and divisions, whereby also comments sent by the European Commission related to implementation of the Directive 2007/36 will be taken into account. The Department for Commercial and Company Law, acting within the framework of the Directorate for Civil, Commercial and Administrative Law of the Ministry of Justice, performs administrative and expert activities related to drafting proposals of acts and subordinate legislation and other regulations in the area of commercial and company law, bankruptcy law and court registry entries. The Department is also responsible for conducting analyses and making proposals for the alignment of these regulations with EU law, implementing these laws within its scope of activities, preparing expert opinions on the draft proposals of regulations drawn up by other central state administration bodies and other activities under its competence. According to the prescribed framework for the numbers of civil servants and civil service employees in the Ministry of Justice, the Department should have three employees (a department head and two senior administrative advisers). Currently, these posts are not filled.

Legislative activities a) Legislative measures

To be submitted for Competent Government No Legislative measure To be aligned with the following acts of the acquis institution procedure

Directive 2009/109/EC of the European Parliament and of the Council of 16 September 2009 amending Council Directives 77/91/EEC, 78/855/EEC and 82/891/EEC, and Directive 2005/56/EC as regards reporting and 4th quarter 2012 1. Companies Act MJ documentation requirements in the case of mergers and divisions, whereby

also comments sent by the European Commission related to implementation of the Directive 2007/36 will be taken into account. 32009D0109

3.7. INTELLECTUAL PROPERTY LAW

No new activities are planned for 2012 with regard to the alignment of the legislation with the acquis on intellectual property, since all the necessary amendments were made in 2009. However, in accordance with the obligation to maintain alignment with new EU legislation, the development of the acquis in the field of intellectual property will be monitored and the national legislation will be aligned if necessary. In this context, the obligations arising from pre-accession negotiations on Chapter 7 will be fulfilled regularly as planned, including further strengthening the administrative capacity of all institutions responsible for implementing intellectual property rights and participation in the activities of inter-departmental bodies charged with implementing intellectual property rights (which were founded in 2009). The continued performance of measures in the National Strategy for the Development of the Intellectual Property System for the period 2010–2012, adopted by the Croatian Government on 1 April 2010, is also planned. The established model of co-operation between authorities aimed at strengthening the implementation of intellectual property rights will continue to operate regularly, and special emphasis will be placed on activities to increase the level of public awareness on the protection of intellectual property rights.

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline EDUCATION AND TRAINING Seminar for border and inland customs offices – recognition of counterfeit MF – CA 1st quarter 2012 - goods in cross-border traffic Seminar for port customs offices in postal and courier services – MF - CA 2nd quarter 2012 - recognition of counterfeit goods in postal and courier traffic Transfer of knowledge in the field of IPR through PHARE 2006 IPR- SI 3rd quarter 2012 HRK 13,000.00 trained trainers Transfer of knowledge in the field of IPR through PHARE 2006 IPR- MI 3 rd quarter 2012 - trained trainers, or other suitable means OTHER The established model of co-operation between authorities aimed at strengthening the implementation of intellectual property rights will continue to operate regularly, and special emphasis will be placed on SIPO, SI, MF - CA, MI, MJ 2012 HRK 100,000.00 activities to increase the level of public awareness on the protection of intellectual property rights.

3.8. COMPETITION POLICY

3.8.1. Anti-trust and merger control

With the new Competition Act (OG 79/09) and new procedural rules coming into force during 2010 and 2011, the Croatian legislative framework has been completed and fully aligned with the acquis in the area of competition rules. However, further adjustment is needed with a view to meeting the criteria for the accession of the Republic of Croatia to the European Union. Namely, from the date of accession to the European Union, the acquis will be applied together with the Croatian legislation in the area of competition law and the legislative framework will have to be further adjusted to this regime. To that end, the Croatian Competition Agency plans to launch an initiative for amendments to the Competition Act in the fourth quarter of 2012.

Focusing its priorities on fighting cartels, the Croatian Competition Agency plans to carry out market ―screening‖ for particular markets in the Republic of Croatia where anticompetitive behaviour of undertakings is likely. These market studies are planned within assistance projects under the IPA programme.

Furthermore, upon accession to the European Union, the Croatian Competition Agency will become a member of the European Competition Network (ECN). This means that the Agency's expert staff will be included in the ECN Interactive and ADO information exchange and disclosure systems on a daily basis. To that end, the necessary upgrading of the IT equipment of the Croatian Competition Agency will be carried out within the assistance of IPA projects.

3.8.2. State aid

The Committee for monitoring and preparing the publishing of the lists of rules and state aid rules, established pursuant to the Regulation on State Aid (OG 50/06), continues to monitor the revisions and all updates of the EU legislation, and accordingly to draft proposals of decisions on the publication of state aid rules in relevant areas. As in previous years, based on new EU rules the Committee drafts proposals of decisions on the publication of those same rules in the Republic of Croatia. The proposals are then submitted for adoption to the Government of the Republic of Croatia by the finance minister. In 2012, as in previous years, the publication of the decisions on the publication of the rules on state aid is expected in areas which have not yet been regulated by decisions of the Government of the Republic of Croatia, and which will be regulated by EU rules in 2012. Since it is impossible to foresee all future legislative acts, the Committee will act ad hoc, by promptly monitoring the relevant EU state aid rules.

In the area of state aid control, it will also be necessary to adjust the relevant legislation to the criteria arising from EU membership. Given that the responsibility for state aid control will be shifted from the member state to the European Commission following accession to the EU, in Croatia it will first be necessary to work out an appropriate concept, i.e. mode of communication with the European Commission regarding the notification of state aid schemes or individual aid. Also, it will be necessary to decide on the manner of conducting state aid control and notification to the European Commission regarding state aid granted under the general block exemption regulations, exempted from approval by the European Commission, as well as to ensure the implementation of measures regarding possible recovery orders and to ensure the compliance of projects under the EU Structural Funds with the acquis in the area of state aid. In that respect, the Croatian Competition Agency will launch an initiative for amendments to the State Aid Act in the last quarter of 2012. In 2011, state aid grantors that will be included in the implementation of projects financed from the EU Structural Funds pointed out the need for additional knowledge on interaction between structural funds and issues regarding state aid rules. In order to ensure the maximum alignment of project proposals and thus also the maximum utilization of resources, in 2012, the Croatian Competition Agency plans to set up a contact point for consultations of the competent authorities on state aid issues relating to concrete project proposals, realized with the assistance from the IPA project.

8.1. Competition law

Legislative activities a) Legislative measures

To be submitted for Competent No Legislative measure To be aligned with the following acts of the acquis Government authority procedure Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty 32003R0001 Commission Regulation (EC) No 802/2004 of 7 April 2004 implementing Council Regulation (EC) No 139/2004 on the control of concentrations between undertakings 32004R0802 Commission Notice on the rules for access to the Commission file in cases pursuant to Articles 81 and 82 of the EC Treaty, Articles 53, 54 and 57 of the EEA Agreement and Council Regulation (EC) No 139/2004 1. 52005XC1222(03) 4th quarter 2012 Act on the Amendments to the Competition Act ME Commission Notice on the handling of complaints by the Commission under Articles 81 and 82 of the EC Treaty 52004XC0427(04) Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 52005XC0305(03) Guidelines on the method of setting fines imposed pursuant to Article 23(2)(a) of Regulation No 1/2003 52006XC0901(01) Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) 32004R0139

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Employment of two new employees to carry out jobs relating to anti-trust CCA During 2012 approx. HRK 300,000 and merger control Technical assistance (technical assistance project in the area of anti- IPA Project trust and merger control) CCA 3rd quarter 2012 (EUR 200,000, of that EUR 20,000

national co- financing) Technical assistance (purchase of IT equipment necessary for the IPA Project participation in ECN Interactive) CCA 4th quarter 2012 (EUR 400,000, of that EUR 60,000 national co-financing)

3.8.2. State aid

Legislative activities a) Legislative measures

No Legislative measure Competent authority To be aligned with the following acts of the acquis To be submitted for Government procedure

1. 4th quarter 2012 Act on the Amendments to the State Aid Act MF Treaty on the Functioning of the European Union

Administrative capacity

Competent Adoption/implementation Measure Planned budgetary funds authority deadline

RECRUITMENT OF NEW EMPLOYEES

Employment of two new employees to carry out jobs relating to state aid CCA During 2012 HRK 300,000 OTHER Setting up a contact point for consultations among competent authorities on state aid IPA Project issues relating to concrete project proposals CCA 2nd quarter 2012 (EUR 200,000, of that HRK 20,000 national co-financing)

3.9. FINANCIAL SERVICES

3.9.1. Banking

During 2012, the existing legislative framework in the field of banking is planned to be aligned with Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims.

Also during 2012, alignment is planned with amendments to the Capital Requirements Directive, namely Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (Official Journal of the European Union L329; 14.12.2010). Two deadlines were set for Member States to align with this Directive: the first deadline was 1 January 2011, and it referred to points 3, 4, 16 and 17 of Article 1 and points 1, 2(c), 3 and 5(b)(iii) of Annex I, while 31 December 2011 was set as the deadline for alignment with the remaining provisions of the Directive.

3.9.2. Insurance and investment funds

In the field of insurance, plans for 2012 include the drafting of a new legislative framework that will transpose Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) into the Croatian legislation. Plans for 2012 also include the drafting of a new legislative framework in the field of investment funds that will transpose Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) into the Croatian legislation. Furthermore, a new legislative framework in the field of venture capital funds transposing Directive 2011/6/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 into the Croatian legislation will be drafted in 2012.

3.9.1. Banking

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure

Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (Official Journal of the European Union L329; 14.12.2010) MF, 1. Act on Amendments to the Credit Institutions Act 32010L0076 4th quarter 2012 CNB

Two deadlines for alignment of Member States with this Directive: first deadline was 1 January 2011 for points 3, 4, 16 and 17 of Article 1 and points 1, 2(c), 3 and 5(b)(iii) of Annex I, while the deadline for the remaining provisions of the Directive was 31 December 2011

Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral Act on Settlement Finality in Payment and MF, 2. arrangements as regards linked systems and credit claims 2nd quarter 2012 Financial Instrument Settlement Systems CNB 32009L0044

Deadline for alignment of Member States with this Directive: 30 December 2010

3.9.2. Insurance and investment funds

Legislative activities a) Legislative measures To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure

Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral MF 1. Act on Amendments to the Financial Collateral Act arrangements as regards linked systems and credit claims 2nd quarter 2012

32009L0044

Deadline for alignment of Member States with this Directive: 30 December 2010

2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and MF, 2. Insurance Act Reinsurance (Solvency II) 4th quarter 2012 HANFA 32009L0138

Deadline for alignment of Member States with this Directive: 30 March 2013 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions MF, relating to undertakings for collective investment in transferable securities 3. Investment Funds Act 3rd quarter 2012 HANFA (UCITS) 32009L0065 Deadline for alignment of Member States with this Directive: 1 July 2011 Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives MF, 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) 4. Alternative Funds Act 3rd quarter 2012 HANFA No 1095/2010 32011L0061 Deadline for alignment of Member States with this Directive: 22 July 2013 b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government institution subordinate legislation the acquis procedure Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to Subordinate legislation based on the MF 1. Investment Funds Act undertakings for collective investment in 3rd quarter 2012 Investment Funds Act HANFA transferable securities (UCITS) 32009L0065 Deadline for alignment of Member States with this Directive: 1 July 2011

3.10. INFORMATION SOCIETY AND THE MEDIA

3.10.1. Electronic communications The Republic of Croatia fully aligned its legislation in the field of electronic communication with the amended EU regulatory framework of November 2009 by adopting the Act on Amendments to the Electronic Communications Act (OG 90/11), which entered into force on 10 August 2011. In 2012, subordinate regulations on electronic communication are to be aligned with the provisions of the Act on Amendments to the Electronic Communications Act. In 2012, recruitment of four new employees in the Electronic Communications and Postal Service Directorate is planned. These employees will be engaged in electronic communications tasks (excluding radio and television equipment and electromagnetic compatibility), with two persons posted in the Department for Electronic Communications, and two in the Department for the Information Society. At present, the Electronic Communications and Postal Service Directorate has ten employees, eight of which hold degrees in the fields of electrical engineering, transport, law and economics. Only four employees are engaged in electronic communications tasks. Employees of the Croatian Post and Electronic Communications Agency (HAKOM) will undergo professional development through graduate and postgraduate courses, research projects, seminars, conferences, working groups, expert workshops and courses, foreign language courses (English and French), and other forms of training. HAKOM will particularly encourage their employees to pursue further education in the university specialist multidisciplinary course programme in Electronic Communications (law, economics, electrical engineering). The programme provides students with economic, legal and technological competencies in the field of regulation of electronic communications, the ability to implement the regulatory framework, and to solve regulatory problems. The goal of the strengthening of administrative capacity of HAKOM is to increase efficiency through optimisation of business processes and continued training of their employees. In the professional development of employees, HAKOM will focus in particular on modelling and redefining business processes, market analysis, development of broadband networks and services, implementation of the cost models project, regulation of the postal services market, and the e-Agency project.

3.10.2. Information society services e-Business In December 2010, the European Commission adopted the Decision setting up the European Multi-Stakeholder Forum on Electronic Invoicing (e-invoicing) (C(2010)8467 final), which added additional emphasis on the importance of introducing e-invoicing for the acceleration of economic development and increasing the competitiveness of the Croatian economy. In September 2011, the Republic of Croatia was granted observer status in the Forum. EU Member States are required to establish national Multi-Stakeholder Forums on e-Invoicing. In view of this, the Croatian Multi-Stakeholder Forum on e-Invoicing is planned to be set up in 2012. In 2012, sessions of the National e-Business Council will be held. Preparations for accreditation of certification service providers in the field of electronic signatures are also planned for 2012, in accordance with the Amendments to the Electronic Signature Act and the Decision of the Government of Croatia designating the Croatian Accreditation Agency (HAA) as the responsible national body for the accreditation of state bodies. Preparations are underway, and the Ministry of Economy will publish the Trusted List of certification service providers in the field of electronic signatures, in accordance with Commission Decision 2009/767/EC and its amendment in Commission Decision 2010/425/EU. The Department's employees will undergo professional development in 2012 through research projects, seminars, conferences, working groups, expert workshops and courses, and other forms of training.

3.10.1. Electronic communications

Legislative activities b) Subordinate legislation

To be Competent Legal basis for the adoption of submitted for No Subordinate legislation To be aligned with the following acts of the acquis authority subordinate legislation Government procedure Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009 amending Directives 2002/21/EC on a common regulatory framework for electronic communications networks and Ordinance on conditions for services, 2002/19/EC on access to, and interconnection Electronic Communications Act (OG 1. assignment and use of the radio HAKOM of, electronic communications networks and associated 1st quarter 2012 73/08 and 90/11), Article 82 frequency spectrum facilities, and 2002/20/EC on the authorisation of electronic communications networks and services 32009L0140 Deadline for implementation in Member States: 25 May 2011 Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009 amending Directive 2002/22/EC on universal service and users‘ rights Electronic Communications Act (OG 2nd quarter 2. Ordinance on number transferability HAKOM relating to electronic communications networks and 73/08 and 90/11), Article 76 services, Directive 2002/58/EC concerning the 2012 processing of personal data and the protection of privacy in the electronic communications sector and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws 32009L0136 25 May 2011 Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009 amending Directives 2002/21/EC on a common regulatory framework for electronic communications networks and services, 2002/19/EC on access to, and interconnection Ordinance on the assignment of Electronic Communications Act (OG 2nd quarter 3. HAKOM of, electronic communications networks and associated addresses and numbers 73/08 and 90/11), Article 70 facilities, and 2002/20/EC on the authorisation of 2012 electronic communications networks and services 32009L0140 Deadline for implementation in Member States: 25 May 2011 Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009 amending Directive 2002/22/EC on universal service and users‘ rights relating to electronic communications networks and services, Directive 2002/58/EC concerning the processing of personal data and the protection of Ordinance on universal services in Electronic Communications Act (OG 4. HAKOM privacy in the electronic communications sector and 3rd quarter 2012 electronic communications 73/08 and 90/11), Article 35 Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws 32009L0136 Deadline for implementation in Member States: 25 May 2011 Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009 amending Directive Ordinance on the public directory and Electronic Communications Act (OG 5. HAKOM 2002/22/EC on universal service and users‘ rights 4th quarter 2012 the public directory enquiry service 73/08 and 90/11), Article 47 relating to electronic communications networks and services, Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws 32009L0136 Deadline for implementation in Member States: 25 May 2011 Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009 amending Directive 2002/22/EC on universal service and users‘ rights relating to electronic communications networks and services, Directive 2002/58/EC concerning the Ordinance on the manner and processing of personal data and the protection of conditions of prevention and Electronic Communications Act (OG 6. HAKOM privacy in the electronic communications sector and 4th quarter 2012 suppression of abuse and fraud in the 73/08 and 90/11), Article 107 Regulation (EC) No 2006/2004 on cooperation between provision of electronic mail services national authorities responsible for the enforcement of consumer protection laws 32009L0136 Deadline for implementation in Member States: 25 May 2011

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of two employees in the MMTC Electronic Communications and Postal Service Directorate, Department for Electronic MMTC 2nd quarter 2012 HRK 220,000.00 Communications Recruitment of two employees in the MMTC Electronic Communications MMTC 2nd quarter 2012 HRK 220,000.00 and Postal Service Directorate, Department for the Information Society EDUCATION AND TRAINING Training of HAKOM employees – foreign language courses and general In line with HAKOM‘s Financial plan for HAKOM During 2012 and professional training in accordance with the Training Plan for 2012 2012

3.10.2. Information society services Legislative measures b) Subordinate legislation

To be Competent Legal basis for the adoption of To be aligned with the following acts of the submitted to No Subordinate legislation authority subordinate legislation acquis Government Procedure Ordinance on amendments to the Ordinance on generating electronic signatures, use of the e-signature Electronic Signature Act (OG 10/02 and Directive 1999/93/EC of the European Parliament 1. creation devices, general and specific ME 80/08), Article 7, Article 18, paragraph 6 and and of the Council of 13 December 1999 on a 1st quarter 2012 terms and conditions for certification Article 32, paragraph 2 Community framework for electronic signatures authorities issuing time stamps and certificates

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline EDUCATION AND TRAINING Education of ME employees – courses and general and professional In line with the Financial plan of ME for ME During 2012 training in accordance with the Training Plan for 2012 2012

3.11. AGRICULTURE AND RURAL DEVELOPMENT

Paying Agency for Agriculture, Fisheries and Rural Development and IACS

In 2012, the implementation of national aid schemes will continue in accordance with the Act on State Aid to Agriculture and Rural Development (OG 90/10, 124/11) and the IPARD pre-accession programme. The Paying Agency will further develop and upgrade its capacities and systems to prepare the accreditation and to implement EU pre- accession funds. By the end of 2012, the Agency plans to be accredited for the management and control system relevant for horizontal issues and EAGF direct payments that will be implemented until 2013. During 2013, the Agency plans two additional accreditation phases with a six-month interval, to become functional, operational and fully compliant with the EU criteria for the implementation of the overall Common Agricultural Policy.

In order for the entire system and resources of the Paying Agency to be prepared for accreditation, the following activities are planned be to undertaken by the end of 2012:  launching of a recruitment competition and the filling of vacant posts (for the central office and regional offices);  provision of training for existing and new staff;  preparation and updating of a functional specification for an IT system and the development of the IT system;  an information campaign on the Common Agricultural Policy;  preparation of written procedures for business processes of the Paying Agency at all levels;  implementation of national aid schemes;  establishment of a system for the preparation and administration of aid applications;  establishment of a system for on-the-spot controls (eligibility and cross-compliance);  establishment of a system for making payments, accounting and reporting.

LPIS (ARKOD)

During 2012, the Paying Agency will continue to update the ARKOD system by amending initial registrations of agricultural holdings, which were completed in 2010, and entering possible new registrations, in order to meet very exacting requirements with respect to continuing maintenance of the quality of data in the system.

With regard to the acquisition of new digital orthophoto maps (DOMs) to replace the DOM sheets from 2006/2007, following a framework contract for a three-year cycle of updating that was signed in November 2010, the first contract for 2010 was signed with the selected contractor in late November 2010. The 2011 contract, which envisaged aerial photography covering approximately 52% of the territory of the Republic of Croatia, was completed by the end of July 2011. The new DOMs will be submitted to the Paying Agency by mid-December 2011. A contract for 2012 is expected to be signed in the forthcoming period. In this context, the ARKOD system will be updated following each new submission of DOM datasets.

In 2012, the Paying Agency will continue with the visual and automatic control of the quality of all spatial data in the ARKOD system, in accordance with the methodology developed within the framework of quality control projects.

Once software specifications for a system for the identification and registration of payment entitlements are prepared under the IPA 2007 TW and TA projects by the end of 2011, the completion of the software and the necessary manuals is planned for the end of January 2012. Training of staff will be conducted during February 2012. The related information campaign will be carried out during March 2012.

FADN

The FADN pilot survey in 2011 for the 2010 accounting year was conducted in 21 counties on a sample of 510 agricultural holdings. The target number of holdings to be covered by the 2012 survey is just under 800, and the final objective for 2013 is to reach a representative sample, which currently comprises about 1,250 holdings. However, the sample is planned to be revised, subject to approval by the European Commission. The Croatia 2011 Progress Report, published by the European Commission in October 2011 together with the 2011–2012 Enlargement Strategy, again emphasises the need for strengthening administrative and budgetary capacities of the FADN. Since there was no recruitment in 2011 of two additional staff members in the MA's Agricultural Policy Planning and Analysis Department and three additional staff members in the Croatian Agricultural Chamber – Croatian Agricultural Extension Institute, as the FADN implementing agency, it is necessary to ensure that the planned recruitment is done in 2012. If activities related to the recruitment of new staff are not carried out in a timely manner, the final objective of increasing the size of the sample of agricultural holdings will hardly be achievable.

Market price information system for agricultural markets

Under the EU legislation, Member States are required to establish a market information system or a system for the monitoring and reporting of the prices and quantities of agricultural products recorded on representative markets, so as to enable the implementation of measures of the EU's Common Organisation of Markets.

For the purpose of fully implementing the Agricultural Market Organisation Act and the Ordinance on collecting data and reporting on prices of agricultural products, it is necessary to strengthen human resources in the Section for the Market Information System in Agriculture (TISUP) of the Ministry of Agriculture. This is in accordance with the decision of the Government of the Republic of Croatia of February 2010 on accepting the Action Plan, the recommendation of the audit mission of the European Commission carried out in October 2010 and the recommendation P3 of the audit report of the Independent Internal Audit Service of the MA. This would create the necessary conditions for the full implementation of a price reporting system, i.e. the start of monitoring of the remaining groups of products: pig carcases, sheep and lamb carcases, poultry and eggs, fresh fruit and vegetables (after accession, imports from third countries) and tobacco.

In 2012, TISUP plans to complete all preparatory work in order to begin monitoring the prices and quantities on the representative domestic market of those groups of agricultural products not yet covered. It will also increase its efforts to strengthen human resources to reach the necessary staffing level of eight employees in accordance with the work load analysis, the decision of the Government of the Republic of Croatia of February 2010 on accepting the Action Plan, and recommendation P3 of the audit report of the Independent Internal Audit Service of the MA. The price reporting system should be fully implemented by the end of 2012, as the obligation to submit information to the EC's Directorate General for Agriculture (DG AGRI) begins with the submission of data to a test database prior to the date of accession to full membership.

Agricultural production

Livestock breeding

The Ordinance on marketing standards for eggs for hatching and farmyard poultry chicks will be issued in 2012. This Ordinance will bring about alignment with the provisions of Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) and Commission Regulation (EC) No 617/2008 of 27 October 2008 laying down detailed rules for implementing Regulation (EC) No 1234/2007 as regards marketing standards for eggs for hatching and farmyard poultry chicks. It will lay down the conditions and procedures for the implementation of marketing standards in the poultry eggs sector, which would concern marketing standards and, in certain cases, production.

Activities of the Paying Agency for Agriculture, Fisheries and Rural Development in the field of livestock breeding

In 2012, as regards the organisation of agricultural markets in the field of livestock breeding, the Paying Agency for Agriculture, Fisheries and Rural Development will continue to strengthen administrative capacities, prepare control plans and written procedures and develop IT support. All these activities will continue until the second quarter of 2013, although their completion was initially planned for an earlier date - June 2011. The deadlines for these activities had to be postponed because not all the measures to be implemented had been defined. The accreditation for the implementation system for measures to organise agricultural markets in the field of livestock breeding is expected to be obtained by the end of June 2013.

Plant production

Activities of the Paying Agency for Agriculture, Fisheries and Rural Development in the field of plant production

In 2012, as regards the organisation of agricultural markets in the field of plant production, the Paying Agency for Agriculture, Fisheries and Rural Development will continue to strengthen administrative capacities, prepare control plans and written procedures and develop IT support. All these activities will continue until the second quarter of 2013, although their completion was initially planned for an earlier date - June 2011. Namely, the Action Plan has been adapted in certain aspects, following the setting of a tentative accession date and the defining of measures that will be implemented after the Republic of Croatia becomes a Member State. The accreditation for the system for the implementation of measures for the organisation of agricultural markets in the field of plant production is expected to be obtained by the end of June 2013.

Fruit and vegetables

The new Ordinance on marketing standards for fruit and vegetables will be issued in 2012. This Ordinance will bring about alignment with the provisions of Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sectors. The Ordinance will lay down the marketing standards for fruit and vegetables, the conditions and methods for conducting checks and reporting on the conformity of fruit and vegetables to the prescribed marketing standards, the detailed method and procedure for conducting inspectional supervision and the measures and actions to be taken by inspectors. Wine production

The Ordinance on protected designations of origin, traditional terms and labelling of wine will be issued in 2012. This Ordinance will bring about alignment, at the national level, with the provisions of Commission Regulation (EC) No 607/2009 of 14 July 2009 laying down certain detailed rules for the implementation of Council Regulation (EC) No 479/2008 as regards protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products. It will lay down the conditions and requirements for the labelling of products with designations of origin and traditional terms, and a system for the control of wines with designation of origin and varietal wines.

Agricultural inspection – administrative capacities

In 2012, the Sector for Agricultural Inspections of the Directorate for Agricultural and Phytosanitary Inspection will carry out activities related to strengthening administrative capacities of inspections in agriculture that are necessary to fulfil the obligations under Chapters 11 and 12.

For the purpose of fulfilling the obligations under Chapter 11, it is planned to employ three inspectors. New inspectors will be recruited to the posts classified and described by the Ordinance on the internal order of the Ministry.

In order to strengthen administrative capacities, plans include providing education and training to the staff of the Directorate. This will be carried out through training courses delivered by scientific educational institutions (foreign languages, doctoral studies), the State School for Public Administration and under TAIEX projects, and through other seminars and workshops organised for inspectors by the Ministry with the aim of improving their knowledge and professional skills needed to carry out inspectional supervision of the application of the legislation transposing the acquis.

In order to create conditions for performing efficient and high-quality inspections, the plan for 2012 is to purchase new and replace obsolete desktop computers with printers, laptop computers with portable printers and mobile apparatus, and to purchase copy machines, digital cameras, GPS devices and other necessary equipment.

Further plans in 2012 aimed at creating the conditions for performing efficient and high-quality inspections are to furnish and equip official premises for the needs of agricultural inspections in certain regional units of the Ministry.

Vertical legislation

Further alignment with the EU legislation will take place in 2012. The Ordinance on marketing standards for spreadable fats is planned to be drafted pursuant to the Agricultural Market Organisation Act (OG 149/09, 22/11) and the Food Act (OG 46/07, 84/08 and 55/11).

Rural development

Activities of the Paying Agency for Agriculture, Fisheries and Rural Development

Taking into account the fact that the Republic of Croatia will implement the IPARD programme until the end of 2013 and also taking into account that the Paying Agency needs to prepare procedures and software applications for the new programming period 2014–2020, the Managing Authority (MA) has defined the criteria for 13 rural development measures. The majority of the defined criteria will be used for the new programming period (with necessary modifications in accordance with the future EU legislation that will be prepared for this new programming period).

For the Paying Agency to become fully operational for the implementation of rural development measures by 1 January 2014, the Managing Authority and the Paying Agency have agreed and prepared a modified plan for the implementation of rural development measures for the new programming period (2014–2020), which defines the main activities and deadlines for 2012. In accordance with the plan, the Managing Authority will define and prepare drafts for the new measures, and the Paying Agency will adapt the existing procedures and software applications and develop new ones for the new rural development measures.

Organic production

In 2012, as regards organic production, further alignment of legislation will be carried out. Pursuant to the Act on Organic Production and Labelling of Organic Products (OG 139/10), the Ordinance on organic plant production and organic livestock breeding is planned to be issued. The Ordinance will lay down the minimum requirements for organic plant production and organic livestock breeding and will bring about further alignment with Commission Regulation (EC) No 889/2008 of 5 September 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007 on organic production and labelling of organic products with regard to organic production, labelling and control.

Quality policy

In 2012, further alignment with EU legislation will be carried out and the following pieces of legislation are planned to be drafted:

– Act on Designations of Origin, Geographical Indications and the Traditional Speciality Logo for Agricultural Products and Foodstuffs, – Ordinance on designations of origin and geographical indications for agricultural products and foodstuffs, – Ordinance on the traditional speciality logo for agricultural products and foodstuffs. Legislative activities

a) Legislative measures

To be submitted to Competent No Legislative measure To be aligned with the following acts of the acquis Government authority procedure Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and Act on Designations of Origin, foodstuffs Geographical Indications and the 1. MA 32006R0510 1st quarter 2012 Traditional Speciality Logo for Agricultural Council Regulation (EC) No 509/2006 of 20 March 2006 on agricultural products and Products and Foodstuffs foodstuffs as traditional specialities guaranteed 32006R0509

b) Subordinate legislation

To be submitted to Competent Legal basis for the adoption of To be aligned with the following acts of the No Subordinate legislation Government authority subordinate legislation acquis Procedure Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products Ordinance on marketing standards for Agricultural Market Organisation Act (OG 32007R1234 1. eggs for hatching and farmyard poultry MA 149/09 and 22/11), Art. 18, para. 3, Art. Commission Regulation (EC) No 617/2008 of 27 4th quarter 2012 chicks 34 October 2008 laying down detailed rules for implementing Regulation (EC) No 1234/2007 as regards marketing standards for eggs for hatching and farmyard poultry chicks 32008R0617 Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation Ordinance on marketing standards for Agricultural Market Organisation Act (OG 2. MA (EC) No 1234/2007 in respect of the fruit and 1st quarter 2012 fruit and vegetables 149/09, 22/11) vegetables and processed fruit and vegetables sectors 32011R0543 Commission Regulation (EC) No 607/2009 of 14 July 2009 laying down certain detailed rules for Agricultural Market Organisation Act (OG the implementation of Council Regulation (EC) No Ordinance on protected designations of 149/09, 22/11), Art. 19, para. 1 and 3 479/2008 as regards protected designations of 3. origin, traditional terms and labelling of MA 3rd quarter 2012 origin and geographical indications, traditional wine Wine Act (new Act under preparation) terms, labelling and presentation of certain wine

sector products 32009R0607 Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products Agricultural Market Organisation Act (OG 32007R1234 149/09, 22/11), Art. 18, para. 3 Commission Regulation (EC) No 445/2007 of

4. Ordinance on marketing standards for MA 23 April 2007 laying down certain detailed 1st quarter 2012 Food Act (OG 46/07, 84/08 and 55/11), spreadable fats rules for the application of Council Regulation Art. 94, para. 2 (EC) No 2991/94 laying down standards for

spreadable fats and of Council Regulation (EEC) No 1898/87 on the protection of designations used in the marketing of milk and milk products 32007R0445 Commission Regulation (EC) No 889/2008 of 5 September 2008 laying down detailed rules for Act on Organic Production and Labelling the implementation of Council Regulation (EC) No Ordinance on organic plant production 5. MA of Organic Products (OG 139/10), Art. 13 834/2007 on organic production and labelling of 4th quarter 2012 and organic livestock breeding and Art. 14 organic products with regard to organic production, labelling and control 32008R0889 Commission Regulation (EC) No 1898/2006 of 14 Act on Designations of Origin, December 2006 laying down detailed rules of Ordinance on designations of origin Geographical Indications and the implementation of Council Regulation (EC) No 6. and geographical indications for MA Traditional Speciality Logo for Agricultural 510/2006 on the protection of geographical 1st quarter 2012 agricultural products and foodstuffs Products and Foodstuffs (to be adopted indications and designations of origin for in 2012) agricultural products and foodstuffs 32006R1898 Commission Regulation (EC) No 1216/2007 of 18 Act on Designations of Origin, October 2007 laying down detailed rules for the Ordinance on the traditional speciality Geographical Indications and the implementation of Council Regulation (EC) No 7. logo for agricultural products and MA Traditional Speciality Logo for Agricultural 2nd quarter 2012 509/2006 on agricultural products and foodstuffs foodstuffs Products and Foodstuffs (to be adopted as traditional specialities guaranteed in 2012) 32007R1216

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES The Ordinance on amendments to the Ordinance on the internal order and job classification of 30 July 2010 classified and described 532 posts, of which 290 in the central office and 242 in regional offices. The Paying Agency currently employs 473 people, of whom 244 are employed in the Paying Agency 1st – 4th quarters 2012 State Budget central office and 229 in the regional offices. For classified and described posts not filled through a recruitment competition in 2011, recruitment competitions will be launched in 2012. To meet the needs of FADN, and taking into account the 2011 Progress Report on Croatia and in order to strengthen administrative capacities, it is necessary to recruit two staff members to the Agricultural Policy Planning and Analysis Department of the MA's Directorate for Agricultural MA 1st – 4th quarters 2012 State Budget Policy and International Co-operation and three staff members to the Croatian Agricultural Chamber – the Croatian Agricultural Extension Institute, which is the FADN implementing agency. For the purpose of fully implementing the Agricultural Market Organisation Act and the Ordinance on collecting data and reporting on prices of agricultural products, it is necessary to strengthen human resources in TISUP and increase the number of employees from the current four to eight, in accordance with a work load analysis, the MA 1st – 4th quarters 2012 State Budget decision of the Government of the Republic of Croatia of February 2010 on accepting the Action Plan, the recommendation of the audit mission of the European Commission carried out in October 2010 and the recommendation P3 of the audit report of the MA's Independent Internal Audit Service. In order to strengthen administrative capacities, and due to an increase in the volume of work resulting from alignment of legislation with EU State Budget (gross HRK 79,026.60 MA 1st quarter 2012 legislation, it is necessary to employ an additional staff member, a annually) specialist in livestock production. In order to maintain administrative capacity, and because of an increase in the volume of work resulting from the fact that two employees left the State Budget (gross HRK 79,026.60 MA 1st quarter 2012 Department for Wine and Spirits in 2011, is necessary to employ one staff annually) member, a specialist in viticulture and enology. In order to strengthen administrative capacities, and due to an increase in the volume of work resulting from alignment of legislation with the EU State Budget (gross HRK 79,026.60 MA 2nd quarter 2012 legislation, it is necessary to employ an additional staff member, a annually) specialist in plant production. Recruitment of three inspectors in the Sector for Agricultural Inspections MA 1st quarter 2012 State Budget (approx. HRK 300,000) of the Directorate for Agricultural and Phytosanitary Inspection EDUCATION AND TRAINING 1st quarter 2012 - IPA 2007 project ―Support to the establishment of a fully operational

Paying Agency in line with EU standards‖ - TA 1st quarter 2012 - IPA 2007 project ―Capacity building of the Croatian Paying Agency‖ – EU funds TW MA-Paying Agency State Budget - TAIEX 1st – 4th quarters 2012 - Bilateral co-operation 1st – 4th quarters 2012 - Paying Agency – internal 1st – 4th quarters 2012 TISUP – Individual training plan; MA: improvement of knowledge of foreign languages; MA 1st – 4th quarters 2012 State Budget Advanced use of MS Office tools Education and training of the staff of the Directorate for Agricultural and Phytosanitary Inspection (foreign languages, doctoral studies, TAIEX MA During 2012 State Budget (approx. HRK 350,000) projects, workshops, seminars) TECHNICAL AND IT EQUIPMENT A logical continuation of the ISO 27002 project, and an important segment of information security, is the "Establishment of Business Continuity", which is a direction in which the organisation of information security of the Paying Agency should develop. The Agency has decided to elaborate and implement this segment of the ISO standard, and to this end a decision was made to launch a public procurement procedure in order to establish business continuity and, accordingly, to set up a secondary location to ensure the continuing performance of tasks that the Agency must fulfil. Project documentation and specifications for equipment and licences have been prepared, and the project task, which State Budget the tenderer must fully complete, has been described. The completion of 1. WORKS/SERVICES (approx. this project is planned for the end of 2012. HRK 350,000) Public procurement A tendering procedure is also underway to acquire licences for 2. EQUIPMENT – PRIMARY procedure is planned to be information security tools, such as Microsoft SCOM (monitoring), Paying Agency/Contractor LOCATION (approx. HRK announced in January Microsoft SCCM (deploying) and help desk management. Also, within the 1,795,000) 2012 project "Establishment of Business Continuity", it is planned to purchase 3. EQUIPMENT - SECONDARY tools such as Security Information and Event Management (SIEM) tools LOCATION (approx. HRK (event log cross checker), etc. 2,895,000) Also under the project "Establishment of Business Continuity" it is planned to purchase IT equipment and licences related to: - blade servers - data storage devices - data deduplication devices - communication devices for connecting two locations - communication devices for expanding the capacity - licences for synchronisation of data at locations - additional licences for data storage procedure. It is planned to purchase desktop and laptop computers in 2012. Some of Public procurement State Budget the new computers will replace old ones and some will be used by new procedure is planned to be Desktop computers and laptops: employees. A certain number of laptop computers are defective and need Paying Agency announced in the 1st approx. HRK 725,000 to be replaced. It is also planned to purchase printers together with quarter of 2012 Printers: approx. HRK 160,000 computers. Procurement of desktop computers with printers, laptop computers with portable printers, copy machines, mobile apparatus, digital cameras, GPS MA 2012 State Budget (approx. HRK 250,000) devices, penetrometers, refractometers, scales and other devices for the needs of agricultural inspections OTHER Furnishing and equipping the official premises for the needs of MA 2012 State Budget (approx. HRK 600,000) agricultural inspections in regional units of the Ministry

3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY

3.12.1. Food safety

The Directorate for Food Safety and Quality of the Ministry of Agriculture (MA) has been continuously working on transposing the acquis in the area of food and feed safety. Any new acquis adopted at the EU level, including in the area of official controls and emergency measures or special import conditions for certain food and feed posing a known or emerging risk to human or animal health or to the environment, is immediately transposed into the legislation of the Republic of Croatia. In 2012, it is planned to undertake activities to fully align the Food Act (OG 46/07, 84/08 and 55/11) with Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety.

In the area of food safety, in 2012 the Ministry of Health will continue with the further alignment of legislation by amending the existing regulations. To this end, the plan is to amend four existing ordinances and to issue one new ordinance: 1. Ordinance on amendments to the Ordinance on the sampling plan and methods of analysis for the official control of the levels of mycotoxins in foodstuffs (OG 45/08); 2. Ordinance on amendments to the Ordinance on food additives (OG 62/10, 62/11); 3. Ordinance on amendments to the Ordinance laying down the methods of sampling and analysis for the official control of the levels of lead, cadmium, mercury, inorganic tin, 3-MCPD and benzo(a)pyrene in foodstuffs (OG 45/08); 4. Ordinance on amendments to the Ordinance on maximum levels for certain contaminants in foodstuffs (OG 154/08, 78/11); 5. Ordinance laying down the methods of sampling and analysis for the official control of feed as regards the presence of genetically modified material for which an authorisation procedure is pending or the authorisation of which has expired.

With regard to other activities in the area of food safety, the priorities of the Ministry of Health are aimed at strengthening administrative capacities and implementing legislation, in particular relating to the establishment and implementation of official controls. To this end, it is planned to: - continue to provide training for inspectors on new regulations and official control techniques, by using national resources and TAIEX assistance, - further align the implementation of official controls with EU requirements by:  implementing and applying the legislative framework,  further developing instructions and guidelines for conducting official controls,  expanding the programme for registering food business operators in order to ensure that official controls are planned in a transparent and risk-based way.

3.12.2. Veterinary policy

In 2012, work will continue on aligning legislation in accordance with the Croatian Strategy for the Transposition and Implementation of the acquis in Chapter 12 - Food Safety, Veterinary and Phytosanitary Policy into the national legislation. The Strategy is regularly updated to take account of newly published legislation of the European Union. Veterinary inspections of agricultural holdings, carried out since 2008, will continue to be conducted to control the implementation of measures and programmes in the veterinary field, the identification and registration of animals, animal health and welfare, the implementation of ordered measures and programmes and the keeping of farm records. During veterinary inspections of agricultural holdings, animal keepers will be advised about cross-compliance requirements that they must meet in order to receive state aid.

In 2011, the Veterinary Directorate continued to award contracts on the delegation of official control tasks to control bodies accredited in accordance with the standard HRN EN ISO/IEC 17020:2005, in accordance with the Ordinance on the conditions to be fulfilled by veterinary organisations, veterinary practices and veterinary services in conducting veterinary activities (OG 45/09, 80/10).

By December 2011, 28 veterinary organisations were accredited and awarded Contracts delegating official control tasks to a control body, and 46 veterinary organisations are in the process of being accredited. Activities relating to the conclusion of such contracts with control bodies will be completed in late 2011.

In 2012, if necessary, a public competition will be held, pursuant to which some of the official control tasks will be delegated to control bodies in certain epizootological units where there is an insufficient number of official veterinarians.

With regard to the establishment of the Central Veterinary Information System (CVIS), as defined by the Veterinary Act (OG 41/07, 55/11), the project financed by the World Bank is expected to be completed and fully implemented on 20 January 2012.

The 2009 plan for the strengthening of administrative capacities provided for the recruitment of 24 staff members to the Veterinary Directorate, but only five persons were recruited, with further recruitment planned for 2010 and 2011. As the 2010 and 2011 recruitment plans were not completed, efforts will be made to complete them in 2012.

In 2012, it is also planned to continue to strengthen the administrative capacities of veterinary inspection services.

Zootechnics

In 2012, it is planned to issue the Ordinance laying down the criteria for recognition and supervision of breeding organisations which maintain and establish herd-books for pure-bred breeding pigs and the Ordinance laying down the criteria governing entry in herd-books for pure-bred breeding pigs. The Ordinance laying down the criteria for recognition and supervision of breeding organisations which maintain and establish herd-books for pure-bred breeding pigs will be aligned with Commission Decision 89/501/EEC of 18 July 1989 laying down the criteria for approval and supervision of breeders' associations and breeding organizations which establish or maintain herd-books for pure-bred breeding pigs. This Ordinance will lay down the criteria for approval and supervision of breeding organisations which maintain and establish herd-books for pure- bred breeding pigs. The Ordinance laying down the criteria governing entry in herd-books for pure-bred breeding pigs will set out detailed requirements for the entry of pure- bred breeding pigs in herd-books in accordance with Commission Decision 89/502/EEC laying down the criteria governing entry in herd-books for pure-bred breeding pigs.

3.12.3. Phytosanitary policy

In 2012, work will continue on aligning legislation with new and amended EU legislation and on adopting the required programmes in the phytosanitary field. To this end, the following legislative activities are planned.

In the area of plant protection products and pesticide residues, it is planned to finalise and publish the Ordinance establishing a framework for action to achieve the sustainable use of pesticides, with the aim of achieving alignment with the provisions of Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides. Pursuant to this ordinance, the National Action Plan to reduce risks and impacts of pesticide use on human and animal health and the environment will be drafted and submitted to the Government of the Republic of Croatia for adoption.

Work will also continue on further aligning of the status of active substances with the Commission Implementing Regulation (EU) No 540/2011 of 25 May 2011 implementing Regulation (EC) No 1107/2009 of the European Parliament and of the Council as regards the list of approved active substances, and with amendments to Regulation (EC) No 396/2005 of the European Parliament and of the Council of 23 February 2005 on maximum residue levels of pesticides in or on food and feed of plant and animal origin and amending Council Directive 91/414/EEC. In 2012, work will begin on drafting legislation for direct application of this Regulation as from the date of accession to the EU.

During Croatia's pre-accession period, the EU has adopted a new package of legislation on plant protection products (Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC, and Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides). Given the comprehensive and complex nature of these pieces of legislation, the EU has set different deadlines for the application of certain provisions (2012–2016). Thus, even in Member States the application of these pieces of legislation is currently underway. For example, the new plant protection products (PPP) registration system, i.e. the "zonal authorisation system", began in July 2011. Deadlines for setting up systems of training for professional users of PPPs and systems for mandatory regular inspection of pesticide application equipment have started to run. In practical terms, this means that several tens of thousands of users are to be trained on their new obligations and educated before the expiry of the deadlines set out in the EU legislation. Also, the EU is developing a new plant health regime and drafting new pieces of legislation that will replace the existing ones relating to Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community, and those concerning the setting up a of plant passport system.

Therefore, it is necessary to revise the existing Croatian Phytosanitary Strategy to include the new objectives ensuing from the new EU legislation package, and to set deadlines for preparing action plans and programmes in the phytosanitary field.

One of the key priorities at the beginning of 2012 is to finalise the implementation of the Phytosanitary Information System, or, more specifically, to put into operation all three sub-systems – Plant Health and Seeds and Planting Material, Plant Protection Products and Phytosanitary Inspection – so that they are available for use by all users (staff of the MA and related professional institutions and external users: importers/exporters and distributors of certain plants and plant products and plant protection products).

The following obligations result from accession to the EU pursuant to the legislation implemented in previous years. By their nature, they must be satisfied in 2012 on an ongoing basis:

- adoption and implementation of the 2012 Annual National Programme for Post-registration Control of Plant Protection Products; - adoption and co-ordination of implementation of the 2012 Annual National Monitoring Programme for Pesticide Residues in Food of Plant Origin, - amendments of the current Re-evaluation Programme for Plant Protection Products Registered in the Republic of Croatia and classified into groups 6 to 8 of that Programme; - adoption and implementation of the 2012 programmes of specific surveys for certain organisms harmful to plants; - new registrations in the Phytosanitary Register of persons obliged to be registered, at their request; - granting of authorisations for issuing plant passports to keepers of certain plants and plant products which must be plant passported when moved from the place of production, at the request of those persons; - continuation of registration of plant protection products; - continuation of work on the adopted Re-evaluation (re-registration) Programme for Plant Protection Products with the aim of finalising as many re-evaluations as possible for plant protection products of groups 1 to 5 covered by that Programme, in accordance with the uniform principles for evaluation (procedures in progress); - continuation of withdrawal of authorisations for those plant protection products in the Republic of Croatia that contain active substances for which directives on non- inclusion in the list of approved active substances included in Regulation (EU) No 540/2011 have been adopted at the EU level; - continuation of withdrawal of authorisations for those plant protection products for which the holders of authorisation or their legal representatives fail to submit the additional documents for the re-evaluation of plant protection products in accordance with the uniform principles for evaluation within the prescribed period; - completion of the process of entering data on active substances and registered plant protection products into the Phytosanitary Information System (FIS), enabling the preparation of the necessary reports and making it possible for interested users to consult the necessary data through a web browser by the end of the second quarter of 2012; - setting up of a register of distributors and importers of plant protection products through the use of electronic FIS forms by mid-2012 at the latest, and the introduction of the obligation to report quantities of plant protection products produced, imported, purchased and sold; - setting up of a system of training for professional users of plant protection products in accordance with the future Ordinance establishing a framework for action to achieve the sustainable use of pesticides, which includes the accreditation of legal persons who will provide training, accreditation of examiners, development of handbooks for preparation for exams, keeping of training records, issuing of certificates, etc; - setting up o a system for mandatory regular inspection of pesticide application equipment f, which includes the provision of mandatory training, accreditation of testing stations for conducting mandatory regular inspections, keeping of records of conducted inspections, etc; - creation of prerequisites for the implementation of the principles of integrated plant protection; - entry of data on all the persons required to be registered into the Phytosanitary Register module of the FIS, through the use of electronic FIS forms by the end of 2012 at the latest. The allocation of the necessary administrative resources is a prerequisite for complying with these deadlines.

Administrative capacities

Education and technical support

In 2012, employees will be trained in keeping and maintaining the Phytosanitary Information System and the staff of the Phytosanitary Sector will receive education under the programmes organised by the Ministry of Regional Development and European Union Funds (MRDEUF). Training and technical support activities organised by the EU under the "Better Training for Safer Food― programme and focusing on plant health and evaluation and registration of plant protection products will continue, as will activities under other programmes of the EU, FAO, EPPO and similar organisations (TAIEX etc.), related to:

o Procedures for registration of plant protection programmes, with the aim of collecting information on the experience of EU Member States, given the fact that Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the market has been fully replaced by Regulation (EC) No 1107/2009, which introduces the new "zonal authorisation system" for plant protection products in the EU. The Regulation will be directly applicable in the Republic of Croatia as from the date of accession to the EU, and therefore additional efforts are to be made to acquire practical experience for its smooth application. For the direct application of the Regulation, it will be necessary to begin preparing the new Act on Plant Protection Products, which is planned to be adopted by the end of the second quarter of 2013.

o Plant health controls on plants subject to the plant passport regime, plant health controls for potatoes under the potato control directives, plant health controls on imported plants, and inspections in cases where emergency phytosanitary measures have been adopted. A new plant health regime is being developed in the EU, in particular as regards Council Directive 2000/29/EC and directives governing the set up of a plant passport system, which will be replaced by regulations that will be directly applicable in the Republic of Croatia as from the date of its accession to the European Union.

New recruitments

Due to the anti-recession measures, the recruitment of new employees, as provided for in the Ordinance on the internal order of the MA of 23 April 2008 and in the plans set out in the previous Programmes for the Adoption and Implementation of the acquis, has not been conducted according to the set deadlines, unlike in other organisational units of the MA involved in the adaptation process. Therefore, it is expected that in 2012 priority will be given to recruiting staff to perform tasks in the area of phytosanitary policy.

With regard to recruitment of staff to the Phytosanitary Sector, priority in 2012 should be given to the Plant Protection Products Department, and vacant positions in the remaining two departments of the Sector should be filled by the end of 2012. Namely, it should be taken into account that two employees who are temporarily performing tasks related to the registration of plant protection products were provided training under EU-financed projects so that they could be recruited to fill the classified and described but still vacant positions. In addition, a new employee should be urgently employed to fill the classified and described but still vacant position for performing new tasks related to the sustainable use of pesticides.

After FIS is put into full operation, an additional employee who will be responsible for managing and updating the sub-systems falling under the competence of the Phytosanitary Sector will need to be recruited by the beginning of 2013, so that the functioning of the system is not jeopardised prior to the accession of the Republic of Croatia to the EU.

Phytosanitary inspection - administrative capacities

Due to an increase in the volume of tasks falling within the competence of the Phytosanitary Inspection, the plan for 2012 is to recruit at least three phytosanitary inspectors to fill the classified and described but still vacant positions pursuant to the Ordinance on the internal order of the MA. The remaining nine phytosanitary inspectors will be recruited gradually until the accession of the Republic of Croatia to the European Union, to fill positions that have already been classified and described, but are still vacant.

With a view to further strengthening administrative capacities related to the implementation of national plant health legislation aligned with the acquis, in 2012 it is planned to continue providing education and training for the staff of the Phytosanitary Inspection Sector through national and international seminars and workshops and educational programmes conducted by the State School for Public Administration.

For the purpose of beginning to apply the Phytosanitary Information System prepared under the project "Design, Development and Implementation of the Phytosanitary Sector Information System", it is planned to supplement and modernise the existing IT equipment used for phytosanitary inspection purposes.

It is also planned to continue the procurement of office, inspection, navigation and laboratory equipment necessary for the work of phytosanitary inspectors.

Activities planned within the IPA 2008 project ―Continued Support for Capacity Strengthening of the Veterinary, Phytosanitary and Sanitary Border Inspection Posts― and the IPA 2009 project “Upgrading of Four Selected Long-term Veterinary and Phytosanitary Border Inspection Posts― will continue in 2012. The construction and equipping of border phytosanitary, veterinary and sanitary inspection facilities at Zagreb Airport (IPA 2008 project) is expected to be completed in the second quarter of 2012. The construction and equipping of border veterinary, phytosanitary and sanitary inspection facilities at the Port of Rijeka is planned to be financed through State Budget funds. The construction and equipping of border veterinary and phytosanitary inspection facilities at the Stara Gradiška border crossing (IPA 2009 project) is expected to be completed in the third quarter of 2012. The contract for execution of works at the border crossings at Metković, Karasovići and Ploče was cancelled due to the contractor's inability to meet FIDIC requirements and a new public competition will be launched. The construction of border veterinary and phytosanitary inspection facilities at the border crossings at Metković, Karasovići and Ploče is expected to be completed in the fourth quarter of 2012.

An evaluation report concerning the procurement of equipment for phytosanitary, veterinary and sanitary inspection posts at the border crossings at Zagreb Airport and Bajakovo (IPA 2008) has been prepared and the Central Financing and Contracting Agency (CFCA) will submit it for approval to the European Union Delegation.

Agricultural inspection – administrative capacities

In 2012, the Sector for Agricultural Inspections of the Directorate for Agricultural and Phytosanitary Inspection will carry out activities related to strengthening administrative capacities of inspections in agriculture, which are necessary to fulfil the obligations under Chapter 12.

For the purpose of fulfilling the obligations under Chapter 12, the employment of two inspectors is planned. New inspectors will be recruited to the posts classified and described by the Ordinance on the internal order of the Ministry. In order to strengthen administrative capacities, it is planned to provide education and training to the staff of the Directorate through training courses delivered by scientific educational institutions (foreign languages, doctoral studies), the State School for Public Administration and under TAIEX projects, and through other seminars and workshops that the Ministry organises for inspectors with the aim of improving their knowledge and professional skills needed to carry out inspectional supervision of the application of the legislation transposing the acquis. In order to create the conditions for performing efficient and high-quality inspections, the plan for 2012 is to acquire new and replace obsolete desktop computers, desktop printers, laptops, mobile printers and mobile apparatus, and to purchase copy machines, digital cameras, GPS devices and other necessary equipment.

Also in order to create conditions for performing efficient and high-quality inspections, the plan for 2012 is to furnish and equip official premises for the needs of agricultural inspections in certain regional units of the Ministry.

Legislative activities

a) Legislative measures

To be submitted to Competent No Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2010/63/EU of the European Parliament and of the Council of 22 September 2010 on the protection of animals used for scientific purposes 32010L0063 Member States must comply with this Directive by 10 November 2012 Council Directive 83/129/EEC of 28 March 1983 concerning the importation into Member States of skins of certain seal pups and products derived therefrom 31983L0129 Regulation (EC) No 1007/2009 of the European Parliament and of the Council of 16 September 2009 on trade in seal products Act on Amendments to the Animal 32009R1007 1. MA 4th quarter 2012 Protection Act Commission Regulation (EU) No 737/2010 of 10 August 2010 laying down detailed rules for the implementation of Regulation (EC) No 1007/2009 of the European Parliament and of the Council on trade in seal products 32010R0737 Council Regulation (EEC) No 3254/91 of 4 November 1991 prohibiting the use of leghold traps in the Community and the introduction into the Community of pelts and manufactured goods of certain wild animal species originating in countries which catch them by means of leghold traps or trapping methods which do not meet international humane trapping standards 31991R3254 Regulation (EC) No 882/2004 of the European Parliament and of the Council of 29 April 2004 on official controls performed to ensure the verification of compliance with feed and food law, animal health and animal welfare rules 2. Veterinary Inspection Act MA 32004R0882 4th quarter 2012 Regulation (EC) No 852/2004 of the European Parliament and of the Council of 29 April 2004 on the hygiene of foodstuffs 32004R0852

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Regulation (EC) No 853/2004 of the European Parliament and of the Council of 29 April 2004 laying down specific hygiene rules for food of animal origin 32004R0853 Regulation (EC) No 854/2004 of the European Parliament and of the Council of 29 April 2004 laying down specific rules for the organisation of official controls on products of animal origin intended for human consumption 32004R0854 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety 32002R0178

b) Subordinate legislation

To be submitted Competent Legal basis for the adoption of To be aligned with the following acts of the No Subordinate legislation to Government authority subordinate legislation acquis Procedure Commission Regulation (EU) No 178/2010 of 2 Ordinance on amendments to the March 2010 amending Regulation (EC) No Ordinance on the sampling plan and Food Act (OG 46/07, 84/08 and 55/11), 401/2006 as regards groundnuts (peanuts), other 1. methods of analysis for the official MH 1st quarter 2012 Art. 15, para. 2, indent 3 oilseeds, tree nuts, apricot kernels, liquorice and control of the levels of mycotoxins in vegetable oil foodstuffs 32010R0178 Ordinance laying down the methods of Commission Regulation (EU) No 619/2011 of 24 sampling and analysis for the official June 2011 laying down the methods of sampling control of feed as regards presence of Act on Genetically Modified Organisms and analysis for the official control of feed as 2. genetically modified material for which MH (OG 70/05 and 137/09), Art. 65, para. 5 regards presence of genetically modified material 2nd quarter 2012 an authorisation procedure is pending for which an authorisation procedure is pending or or the authorisation of which has the authorisation of which has expired expired 32011R0619 Commission Regulation (EU) No 1129/2011 of 11 November 2011 amending Annex II to Regulation Ordinance on amendments to the Food Act (OG 46/07, 84/08 and 55/11), (EC) No 1333/2008 of the European Parliament 3. MH 1st quarter 2012 Ordinance on food additives Art. 15, para. 2, indent 4 and of the Council by establishing a Union list of food additives 32011R1129

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Commission Regulation (EU) No 1130/2011 of 11 November 2011 amending Annex III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council on food additives by establishing a Union list of food additives approved for use in food additives, food enzymes, food flavourings and nutrients 32011R1130 Commission Regulation (EU) No 1131/2011 of 11 November 2011 amending Annex II to Regulation (EC) No 1333/2008 of the European Parliament and of the Council with regard to steviol glycosides 32011R1131 Commission Regulation (EU) No 836/2011 of 19 August 2011 amending Regulation (EC) No Ordinance on amendments to the 333/2007 laying down the methods of sampling and Ordinance laying down the methods of analysis for the official control of the levels of lead, sampling and analysis for the official Food Act (OG 46/07, 84/08 and 55/11), 4. MH cadmium, mercury, inorganic tin, 3-MCPD and 4th quarter 2012 control of the levels of lead, cadmium, Art. 15, para. 2, indent 3 benzo(a)pyrene in foodstuffs mercury, inorganic tin, 3-MCPD and 32011R0836 benzo(a)pyrene in foodstuffs This Regulation shall apply from 1 September 2012. Commission Regulation (EU) No 835/2011 of 19 August 2011 amending Regulation (EC) No Ordinance on amendments to the 1881/2006 as regards maximum levels for Ordinance on maximum levels for Food Act (OG 46/07, 84/08 and 55/11), 5. MH polycyclic aromatic hydrocarbons in foodstuffs certain contaminants in foodstuffs Art . 15, para. 2, indent 3 4th quarter 2012 32011R0835

This Regulation shall apply from 1 September 2012. Commission Implementing Regulation (EU) No 739/2011 of 27 July 2011 amending Annex I to Regulation (EC) No 854/2004 of the European Ordinance on amendments to the Food Act (OG 46/07, 84/08 and 55/11), Parliament and of the Council laying down specific 6. Ordinance on official controls of MA 1st quarter 2012 Art. 65 and 85 rules for the organisation of officials controls on products of animal origin products of animal origin intended for human consumption 32011R0739

178

Ordinance on amendments to the Council Directive 64/432/EEC of 26 June 1964 on Ordinance on animal health animal health problems affecting intra-Community 7. MA Veterinary Act (OG 41/07, 55/11) 1st quarter 2012 requirements applicable to trade in trade in bovine animals and swine bovine animals and swine (OG 154/08) 31964L0432 Ordinance on the requirements for Commission Decision 2008/946/EC of 12 quarantine of aquatic animals in December 2008 implementing Council Directive accordance with the Ordinance on 2006/88/EC as regards requirements for quarantine animal health requirements for Veterinary Act (OG 41/07, 55/11), Art. 17, of aquaculture animals 8. MA 1st quarter 2012 aquaculture animals and products para. 3 thereof, and on the prevention and 32008D0946 control of certain diseases in aquatic animals Veterinary Act (OG 41/07, 55/11), Art. 85, Commission Implementing Regulation (EU) No Ordinance on amendments to the para. 4 1109/2011 of 3 November 2011 amending Annex I Ordinance on the methods of 9. MA to Regulation (EC) No 2075/2005 as regards the 2nd quarter 2012 conducting controls for Trichinella in Food Act (OG, 46/07, 84/08 and 55/11) equivalent methods for Trichinella testing meat Art. 56, para. 2, indents 4 and 5 32011R1109 Commission Regulation (EU) No 15/2011 of 10 January 2011 amending Regulation (EC) Ordinance on amendments to the Food Act (OG 46/07, 84/08 and 55/11), No 2074/2005 as regards recognised testing Ordinance on implementing measures Art. 56, para. 2, subpara. 2 and Art. 85, 10. MA methods for detecting marine biotoxins in live 2nd quarter 2012 for certain products subject to food law subpara. 1 and 2 bivalve molluscs (OG 154/08) 32011R0015 The Regulation applies from 1 July 2011. Commission Regulation (EU) No 575/2011 of 16 Ordinance on the Catalogue of feed Food Act (OG 46/07, 84/08 and 55/11), 11. MA June 2011 on the Catalogue of feed materials 2nd quarter 2012 materials Art. 17, para. 4 and Art. 65, second indent 32011R0575 Commission Regulation (EU) No 2010/1070 of 22 Ordinance on amendments to the November 2010 amending Commission Directive Ordinance establishing a list of Food Act (OG 46/07, 84/08 and 55/11), 2008/38/EC of 5 March 2008 establishing a list of 12. MA 2nd quarter 2012 intended uses of animal feedingstuffs Art. 65, indents 3, 5 and 7 intended uses of animal feedingstuffs for particular for particular nutritional purposes nutritional purposes 32010R1070 Commission Regulation (EU) No 574/2011 of 16 Ordinance on amendments to the June 2011 amending Annex I to Directive Food Act (OG 46/07, 84/08 and 55/11), 13. Ordinance on undesirable substances MA 2002/32/EC of 7 May 2002 on undesirable 3rd quarter 2012 Art. 65, indent 6 in animal feed substances in animal feed 32011R0574

179

Regulation (EC) No 1069/2009 of the European Veterinary Act (OG 41/07, 55/11), Art. 46, Parliament and of the Council of 21 October 2009 Ordinance on animal by-products and para. 4 and 5 and Art. 48, para. 2 laying down health rules as regards animal by- 14. derived products not intended for MA products and derived products not intended for 4th quarter 2012 human consumption Food Act (OG 46/07, 84/08 and 55/11) human consumption and repealing Regulation (EC) Art. 56, para. 2, subpara. 6 No 1774/2002 32009R1069 Commission Regulation (EU) No 142/2011 of 25 February 2011 implementing Regulation (EC) No Veterinary Act (OG 41/07, 55/11), Art . 46, 1069/2009 of the European Parliament and of the Ordinance implementing the Ordinance para. 4 and 5 and Art. 48, para. 2 Council laying down health rules as regards animal on animal by-products and derived by-products and derived products not intended for 15. MA 4th quarter 2012 products not intended for human Food Act (OG 46/07, 84/08 and 55/11), human consumption and implementing Council consumption Art. 56, para. 2, subpara. 6 Directive 97/78/EC as regards certain samples and items exempt from veterinary checks at the border under that Directive 32011R0142 Council Directive 2009/156/EC of 30 November Ordinance on animal health conditions 2009 on animal health conditions governing the governing the movement and 16. MA Veterinary Act (OG 41/07, 55/11) movement and importation from third countries of 2nd quarter 2012 importation from third countries of equidae equidae (OG 154/08) – amendment 32009L0156 Commission Decision 89/501/EEC of 18 July 1989 Ordinance laying down the criteria for laying down the criteria for approval and Livestock Act (OG 70/97, 36/98, 151/03 approval of breeding organisations supervision of breeders' associations and breeding 17. MA and 132/06) Art. 41, para. 3 2nd quarter 2012 which establish or maintain herd- organizations which establish or maintain herd-

books for pure-bred breeding pigs books for pure-bred breeding pigs 31989D0501 Commission Decision 89/502/EEC of 18 July 1989 Ordinance on the keeping of herd- Livestock Act (OG 70/97, 36/98, 151/03 laying down the criteria governing entry in herd- 18. books and entry in herd-books of pure- MA and 132/06) Art. 3a, para. 3 3rd quarter 2012 books for pure-bred breeding pigs bred breeding pigs 31989D0502 Directive 2009/128/EC of the European Parliament Ordinance establishing a framework Act on Plant Protection Products (OG and of the Council of 21 October 2009 establishing 19. for action to achieve the sustainable MA 70/05), Art. 5, 6, 8, 9, 11, 37, 38, 39, 41, a framework for Community action to achieve the 2nd quarter 2012 use of pesticides 43 and 67 sustainable use of pesticides 32009L0128

180

Commission Regulation (EU) No 517/2011 of 25 May 2011 implementing Regulation (EC) No Ordinance on amendments to the 2160/2003 of the European Parliament and of the Ordinance concerning the testing Council as regards a Union target for the reduction scheme for the reduction of the Veterinary Act (OG 41/07, 55/11), Art. 17, 20. MA of the prevalence of certain Salmonella serotypes 1st quarter 2012 prevalence of certain Salmonella para. 3 in laying hens of Gallus gallus and amending serotypes in laying hens of Gallus Regulation (EC) No 2160/2003 and Commission gallus (OG 107/07). Regulation (EU) No 200/2010 32011R0517 Regulation (EC) No 2160/2003 of the European Amendments to the Ordinance on the Parliament and of the Council of 17 November control of salmonella and other Veterinary Act (OG 41/07, 55/11), Art. 17, 21. MA 2003 on the control of salmonella and other 1st quarter 2012 specified food-borne zoonotic agents para. 3 specified food-borne zoonotic agents (OG 107/07) 32003R2160 Food Act (OG 46/07, 84/08 and 55/11), Commission Implementing Regulation (EU) No Art. 20, para. 5 and Art. 56, para. 2, 931/2011 of 19 September 2011 on the traceability Ordinance on the traceability subpara. 5 requirements set by Regulation (EC) No 178/2002 22. MA 1st quarter 2012 requirements for food of animal origin of the European Parliament and of the Council for Veterinary Act (OG 41/07, 55/11), Art. 85, food of animal origin para. 4 32011R0931 Ordinance on amendments to the Ordinance on animal health Commission Regulation (EU) No 176/2010 of 2 requirements governing trade in and March 2010 amending Annex D to Council imports of animals, semen, ova and Directive 92/65/EEC as regards semen collection embryos not subject to animal health and storage centres, embryo collection and 23. MA Veterinary Act (OG 41/07), Art. 17, para. 3 1st quarter 2012 requirements laid down in Annex A, production teams, and conditions for donor animals Part I of the Ordinance on veterinary of the equine, ovine and caprine species and for and zootechnical checks of certain handling semen, ova and embryos of those species animals and products in trade with the 32010R0176 Member States of the European Union Commission Regulation (EU) No 1034/2010 of 15 Veterinary Act (OG 41/07 and 55/11), Art, Ordinance on amendments to the November 2010 amending Regulation (EC) No 35, para. 9 Ordinance on the obligatory 1082/2003 as regards checks concerning the 24. MA 1st quarter 2012 identification and registration of bovine requirements for the identification and registration Livestock Act (OG 70/97, 36/98, 151/03 animals of bovine animals (OJ L 298, 16.11.2010) and 132/06), Art. 4, para. 3 32010R1034

181

Commission Decision 2006/968/EC of 15 December 2006 implementing Council Regulation (EC) No 21/2004 as regards guidelines and procedures for the electronic identification of ovine and caprine animals (OJ L 401, 30. 12. 2006); Ordinance on guidelines and 32006D0968 procedures for the electronic Veterinary Act (OG 41/07 and 55/11), Art, 25. MA Commission Decision 2010/280/EU of 12 May 1st quarter 2012 identification of ovine and caprine 35, para. 9 animals 2010 amending Decision 2006/968/EC implementing Council Regulation (EC) No 21/2004 as regards guidelines and procedures for the electronic identification of ovine and caprine animals (OJ L 124, 20. 5. 2010) 32010D0280 Commission Decision 96/78/EC of 10 January Ordinance on the keeping of stud- 1996 laying down the criteria for entry and Livestock Act (OG 70/97, 36/98, 151/03 26. books and entry of equidae in stud- MA registration of equidae in stud-books for breeding 1st quarter 2012 and 132/06) Art. 3, para. 3 books purposes 31996D0078

182 c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

1. Plan for Food and Feed Crisis Management MA 1st quarter 2012

2. Phytosanitary Strategy MA 1st quarter 2012 2012 programmes of specific surveys for organisms harmful 3. MA 1st quarter 2012 to plants 2012 Programme for Post-registration Control of Plant 4. MA 1st quarter 2012 Protection Products 2012 National Monitoring Programme for Pesticide Residues 5. MA 2nd quarter 2012 in Food of Plant Origin National Action Plan to reduce risks and impacts of pesticide 6. MA 4th quarter 2012 use on human and animal health and the environment

183

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Further recruitment for remaining vacant positions in the Veterinary By the time of accession to MA State Budget Directorate the EU Further recruitment to the Veterinary Inspection Directorate as follows: - recruitment of two border veterinary inspectors, one of which at the veterinary border inspection post (veterinary BIP) Rupa and the other at the Port of Rijeka BIP; - recruitment of one employee at the veterinary BIP Karasovići; - recruitment of seven administrative staff members at seven long-term veterinary BIPs – Bajakovo, Zagreb Airport, Port of Rijeka, Metković, Beginning of 2012 Karasovići, Port of Ploče, Stara Gradiška;

- recruitment of seven technical staff members at seven long-term MA State Budget By the time of accession to veterinary BIPs – Bajakovo, Zagreb Airport, Port of Rijeka, Metković, the EU Karasovići, Port of Ploče, Stara Gradiška; - recruitment of three employees at the Department for International Trade: one employee at the Section for Trade with EU Member States (expert assistant) and two employees at the Section for Trade with non- EU Member States (a senior expert assistant and an adviser); - recruitment of four employees in the Risk Analysis Department (one expert assistant, two senior advisers and one junior administrative clerk) In order to strengthen administrative capacities, and due to an increase in the volume of work resulting from alignment of legislation with EU State Budget (gross HRK 79,026.60 MA 1st quarter 2012 legislation, it is necessary to employ an additional staff member, a annually) specialist in zootechnics. Recruitment of seven staff members to the Phytosanitary Sector – continuation of the planned, but not completed recruitment (in MA 4th quarter 2012 State Budget accordance with the Programmes for the Transposition and Implementation of the acquis from 2008 to 2012) Recruitment of one employee in the Department for Support, Co- ordination and Co-operation with the EU (classified and described but still MA 2nd quarter 2012 State Budget (HRK 100,000.00) vacant post) Recruitment of one employee in the Plant Health Department to fill a MA 3rd quarter 2012 State Budget (HRK 100,000.00) classified and described but still vacant post

184

Recruitment of at least three employees in the Phytosanitary Inspection Sector, in accordance with the current job classification pursuant to the MA 1st quarter 2012 State Budget (approx. HRK 300,000) Ordinance on the internal order of the MA Recruitment of two inspectors in the Sector for Agricultural Inspections of MA 1st quarter 2012 State Budget (approx. HRK 200,000) the Directorate for Agricultural and Phytosanitary Inspection EDUCATION AND TRAINING State Budget Continuation of training of staff members of the Veterinary Directorate MA 1st, 2nd, 3rd and 4th quarter TAIEX Continuation of training of staff members of the Veterinary Inspection State Budget MA 1st, 2nd, 3rd and 4th quarter Directorate TAIEX Provision of training is one of the priorities of the Veterinary Directorate in 2012. Therefore, in the fourth quarter of 2011, the Directorate will prepare 1st, 2nd, 3rd and 4th quarter State Budget the ―Training programme for veterinarians, authorised and official MA TAIEX veterinarians, veterinary inspectors and other interested natural and legal persons‖ Further training of the staff of the Phytosanitary Sector in accordance State Budget and EU programmes and MA 2012 with the alignment and implementation of phytosanitary legislation funds Further education of phytosanitary inspectors through national and MA 2012 State Budget, EU financial resources international workshops, training courses, seminars and study visits TECHNICAL AND IT EQUIPMENT Procurement of desktop computers, laptop computers, scanners and other IT equipment for the needs of the Phytosanitary Information System MA By the end of 2012 State Budget (FIS) Supplementing and modernisation of the existing IT equipment necessary for the work of phytosanitary inspectors in implementing the MA 4th quarter 2012 State Budget new information system (desktop computers, printers, Web'n'walk, scanners) Further procurement of office, inspection, navigation and laboratory MA 4th quarter 2012 State Budget equipment necessary for the work of the Phytosanitary Inspection OTHER Construction and equipping of border phytosanitary, veterinary and 25% State Budget and 75% MA + MH 2nd quarter 2012 sanitary inspection facilities at Zagreb Airport (IPA 2008 project) pre-accession funds (IPA 2008) Construction of border veterinary inspection facilities and the equipping of 25% State Budget and 75% border phytosanitary, veterinary and sanitary inspection facilities at the MA + MH 2nd quarter 2012 pre-accession funds (IPA 2008) Bajakovo border crossings (IPA 2008 project) Construction and equipping of border veterinary, phytosanitary and State Budget MA + MH 4th quarter 2012 sanitary inspection facilities at the Port of Rijeka 185

Construction and equipping of border veterinary and phytosanitary 25% State Budget and 75% inspection facilities at the Stara Gradiška border crossing (IPA 2009 MA 3rd quarter 2012 pre-accession funds (IPA 2009) project) Construction and equipping of border veterinary and phytosanitary 25% State Budget and 75% inspection facilities at the border crossings at Metković, Ploče and MA 4th quarter 2012 pre-accession funds (IPA 2009) Karasovići (IPA 2009 project)

186

3.13. FISHERIES

For the purpose of alignment with the acquis in the area of resource and fleet management, plans are in place to adopt the Ordinance on documentation accompanying bluefin tuna, swordfish and bigeye tuna on the market in the second quarter of 2012. This Ordinance will ensure the further alignment of the existing Croatian legislation with that of the EU. Adoption of the Ordinance on the use of alien and locally absent species in aquaculture is planned in the third quarter, while adoption of the Ordinance on electronic reporting of data in fisheries is planned for the fourth quarter.

For the purpose of alignment with the acquis in the area of structural and market policies, the adoption of two subordinate regulations is planned for the second quarter of 2012: Ordinance on the manner of calculating aid for producer organisations in fisheries, and the Ordinance on specific recognition of producers' organisations in fisheries in order to improve the quality of their products. Alignment in the third quarter will continue through the Ordinance on the conditions for the recognition of interbranch organisations and the Ordinance on the notification of the prices of imported fishery products. The adoption of the Ordinance on informing consumers about fisheries products and aquaculture in the sense of trade names is envisaged for fourth quarter.

As for the implementing measures, the adoption of the National Strategic Plan as defined by Council Regulation (EC) No 1198/2006 of 26 July 2006 on the European Fisheries Fund is planned for the third quarter. This measure has been transferred from 2011 in light of the necessary amendments due to changes in the framework of financing mechanisms at the EU level, and due to the fact that the Republic of Croatia will use funds from the European Fisheries Fund pursuant to the current legal framework only during the second half of 2013. Drafting of the Operative Programme, ensuing from the National Strategic Plan, is planned for the fourth quarter of 2012.

The Fisheries Directorate will develop the National Plan for data collection and its adoption is envisaged for the first quarter of 2012. This measure has been transferred from 2011 due to the necessary technical supplementation in the segment of sampling coverage and methods of data collection.

Due to the need to establish an overall mechanism for the implementation of EU structural mechanisms, the recruitment of five persons is envisaged in 2012 in the structural support sector, and a further three persons in the fleet and resource management sector. Furthermore, the recruitment of five inspectors is planned pursuant to the Action Plan for strengthening administrative capacities in the area of supervision and control. During 2012, procurement of AIS transponders is planned for the purpose of upgrading the fishing fleet monitoring system in line with the provisions of Council Regulation (EC) No. 1224/2009 of 20 November 2009 establishing a Community control system for ensuring compliance with the rules of the common fisheries policy. In that sense, the process of programming the project in the framework of the IPA TAIB 2012 programme has begun.

With the aim of further strengthening of the administrative capacity of the Fisheries Directorate, a Twinning component from the IPA framework will be carried out in 2012.

187

Legislative measures b) Subordinate legislation

To be submitted Responsible Legal basis for adoption of the to government No. Subordinate act authorities EU acquis with which the measure is aligned subordinate act procedure

Commission Regulation (EC) No 1985/2006 of 22 December 2006 laying down detailed rules for Ordinance on the manner of Act on Structural Aid and Market calculating aid granted by Member States to 2nd 1. calculating aid to producer MA Organisation in Fisheries (OG 153/09 and producer organisations in the fisheries and quarter 2012 organisations in fisheries 127/10), Art. 23 aquaculture sector 32006R1985 Commission Regulation (EC) No 1924/2000 of 11 September 2000 laying down detailed rules for the Ordinance on specific recognition of application of Council Regulation (EC) No Act on Structural Aid and Market producers' organisations in fisheries 104/2000 as regards the grant of specific 2. MA Organisation in Fisheries (OG 153/09 and 2nd quarter 2012 in order to improve the quality of their recognition to producers' organisations in the 127/10), Art. 23 products fisheries sector in order to improve the quality of their products 32000R1924 Council Regulation (EC) No 1984/2003 of 8 April 2003 introducing a system for the statistical monitoring of trade in bluefin tuna, swordfish and bigeye tuna within the Community Ordinance on the documentation 32003R1984 accompanying bluefin tuna, Marine Fisheries Act (OG 53/10, 127/10 3. MA 2nd quarter 2012 swordfish and bigeye tuna on the and 55/11), Art. 65 Regulation (EU) No 640/2010 of the European market Parliament and of the Council of 7 July 2010 establishing a catch documentation programme for bluefin tuna Thunnus thynnus and amending Council Regulation (EC) No 1984/2003 32010R0640 Commission Regulation (EC) No 1813/2001 of 14 September 2001 laying down the detailed rules for Ordinance on conditions for the Act on Structural Aid and Market the application of Council Regulation (EC) No 3rd quarter 2012 4. recognition of interbranch MA Organisation in Fisheries (OG 153/09 and 104/2000 as regards the conditions for, the grant of organisations 127/10), Art. 23 and the withdrawal of recognition of interbranch organisations

188

32001R1813

Commission Regulation (EC) No 708/2007 of 11 June 2007 concerning use of alien and locally absent species in aquaculture 32007R0708 Ordinance on the use of alien and Marine Fisheries Act (OG 53/10, 127/10 5. MA 3rd quarter 2012 locally absent species in aquaculture and 55/11) Commission Regulation (EC) No 535/2008 of 13 June 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 708/2007 32008R0535 Commission Regulation (EC) No 2306/2002 of 20 December 2002 laying down detailed rules for the Act on Structural Aid and Market Ordinance on the notification of the application of Council Regulation (EC) No 3rd quarter 2012 6. MA Organisation in Fisheries (OG 153/09 and prices of imported fishery products 104/2000 as regards the notification of the prices of 127/10), Art. 27 imported fishery products 32002R2306 Commission Regulation (EC) No 2065/2001 of 22 Ordinance on informing consumers October 2001 laying down detailed rules for the Act on Structural Aid and Market about fishery and aquaculture application of Council Regulation (EC) No 4th quarter 2012 7. MA Organisation in Fisheries (OG 153/09 and products in the sense of trade names 104/2000 as regards informing consumers about 127/10), Art. 29 fishery and aquaculture products 32065R2001 Commission Regulation (EC) No 1303/2007 of 5 November 2007 laying down detailed rules for the Ordinance on electronic reporting of Marine Fisheries Act (OG 53/10, 127/10 implementation of Council Regulation (EC) No 4th quarter 2012 8. MA data in fisheries and 55/11) 1966/2006 on electronic recording and reporting of fishing activities and on means of remote sensing 32007R1303

189 c) Strategies and Action Plans or Programmes

Responsible authorities To be submitted to government procedure No. Name of measure

1. National Plan for the collection of data in fisheries MA 1st quarter 2012 National Strategic Plan for the implementation of the 2. MA 3rd quarter 2012 European Fisheries Fund Operative Programme for the implementation of the European 3. MA 4th quarter 2012 Fisheries Fund

Administrative capacities

Deadline for adoption / Name of measure Responsible authorities Planned amount of budget funds implementation EMPLOYMENT OF NEW PERSONNEL Strengthening capacities for the implementation of EU structural MA 3rd quarter State budget mechanisms Strengthening the capacities of the Centre for Fisheries Monitoring MA 3rd quarter State budget Strengthening the capacities of the fisheries inspection service MA 3rd quarter State budget OTHER

IPA Twinning project MA

190

3.14. TRANSPORT POLICY

3.14.1. Road Transport The process of aligning Croatian legislation with the acquis in the field of road transport will continue in 2012. A new Ordinance on driving licences will be adopted in the third quarter of 2012 on the basis of the Road Traffic Safety Act. In this manner, legislation will be aligned with Directive 2006/126 and Directive 2011/94 of the European Parliament and of the Council of 28 November 2011. Alignment with the EU acquis will also continue in the area of social legislation. The adoption of the Act on Amendments to the Act on Working Time, Compulsory Rest Periods for Mobile Workers and Recording Equipment in Road Transport is expected in the fourth quarter of 2012, including its further alignment with the EU acquis. The Ordinance on recording equipment and speed limitation devices (OG 48/09) will be amended in the fourth quarter of 2012 and aligned with Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities and with Council Regulation (EEC) No. 3821/85 of 20 December 1985 on recording equipment in road transport. In 2011, a twinning contract was signed on the basis of the IPA 2008 Programme – Component I – Efficient Functioning of the Control System for Roadside Inspections. The implementation of activities related to this contract started on 6 June 2011 and will continue for 21 months. The supply contract signed in 2010 was reactivated with the signing of an Annex to the contract in 2011, and the implementation of some of the activities related to this contract will continue in 2012. The purpose of the project is the further alignment of legislation in the field of road traffic safety with the European Union acquis, the introduction of an efficient control system, including inspections in company premises, particularly taking into account driving time and compulsory rest periods. The project will ensure the strengthening of the capacity of institutions competent for inspection supervision and of other stakeholders. The project is divided into five components as follows: Component 1: "Alignment and implementation of legislation"; Component 2: "Institutional implementation"; Component 3: "The information system"; Component 4: "Training"; Component 5: "Dissemination of information and an improved level of information". Following a job vacancy announcement published in late 2010 for the recruitment of 23 road traffic inspectors into the civil service in 2011, a total of 15 civil servants were recruited (the other vacancies still have not been filled due to an ongoing appeal procedure, and a part of the job vacancy announcement was annulled because the candidates did not comply with the required conditions). The procedure must therefore be repeated in the course of 2012. The preparation of a new organisational system of road traffic inspection is in progress aimed at more efficient and more effective operation and at the fulfilment of the undertaken obligations. The above-mentioned activities will contribute to the improvement of the administrative capacity and efficiency of the Road Transport Inspection and will create the conditions for the complete implementation of the European Union acquis in the area of road traffic safety and social conditions pursuant to Article 17 of Regulation (EC) 561/2006) and Article 13 of Council Directive 2002/15/EC.

3.14.2. Railway transport The process of aligning national legislation with the EU acquis by means of adopting subordinate legislation pursuant to the Railway Safety Act will continue in 2012 with the adoption of the Act on the Establishment of the Agency for the Investigation of Maritime, Air and Railway Accidents, and subordinate legislation adopted pursuant to the Railway Safety Act. The adoption of the following subordinate legislation is envisaged for the period in question: the Ordinance on the manner, programme, vocational

191 education, in-service training and testing of operating workers in rail transport, and the Ordinance on Amendments to the Ordinance on the working time of operating workers in railway traffic. In relation to administrative capacity, the organisational unit of the Ministry of Maritime Affairs, Transport and Infrastructure competent for railway traffic is planning to recruit new staff in 2012 in accordance with what is possible and pursuant to the employment needs expressed, but not fulfilled, in the 2008 plan.

3.14.4. Inland navigation The implementation of measures aimed at establishing the National RIS Centre will continue in 2012 pursuant to the Inland Waterways Navigation and Ports Act (OG 109/07 and 132/07) and the Ordinance on River Information Services in inland waterway transport (OG 99/08), in compliance with Directive 2005/44/EC. Further implementation of the Strategy of Inland Waterway Transport Development in the Republic of Croatia 2008-2018 (OG 65/08) is also planned. The Strategy was prepared on the basis of the European Action Plan for Inland Waterway Transport – NAIADES. Further alignment of legislation with the EU acquis is planned in 2012 through amendments to the Ordinance on a technical supervisory body for the certification of inland waterway vessels (OG 99/08) which will be aligned with Directive 2006/87/EC laying down technical requirements for inland waterway vessels. It is planned for four new people to be recruited in 2012 to the National RIS Centre given that this measure was not implemented in 2011. Concerning education and training activities envisaged in item 6 of the Strategy of Inland Waterway Transport Development in the Republic of Croatia 2008-2018, scholarships will be granted to 19 secondary-level students and 4 university students in the 2011/2012 school year in accordance with the Decision on requirements for the granting of scholarships to regular students of undergraduate and graduate university studies in the waterways field of the Faculty of Transport and Traffic Sciences in Zagreb, and to students of nautical high schools.

3.14.5. Air Transport Further alignment with the EU acquis is planned in 2012. More precisely, the adoption of the Act on Amendments to the Act on the Establishment of the Croatian Air Traffic Control and the Act on the Establishment of the Agency for the Investigation of Maritime, Air and Railway Accidents has been envisaged for 2012. The adoption of seven pieces of subordinate legislation is planned for the first quarter of 2012: the Ordinance on Amendments to the Ordinance on the establishment of the requirements for automatic systems for the exchange of flight data for the purpose of notification, co-ordination and transfer of flights between air traffic control units, the Ordinance on the co-ordinated allocation and use of Mode S interrogator codes for the single European sky, the Ordinance on Amendments to the Ordinance on the conditions and manner of issuing certificates for service providers in air transport, the Ordinance on airport charges, the Ordinance on the air traffic controller licence and authorisations, the Ordinance on the fees and charges levied by EASA, and the Ordinance on the establishment of en route and terminal charges. The adoption of two pieces of subordinate legislation is planned for the second quarter of 2012: the Ordinance on amendments to the Ordinance on the establishment of service efficiency measurement programmes in air transport and network functions and the Ordinance on reporting about security related occurrences. The adoption of the Ordinance on requirements on data link services for the single European sky is planned for the fourth quarter of 2012.

192

In addition to subordinate legislation, it is also planned to adopt the updated National Civil Aviation Safety Programme aligned with a series of EU Regulations in the third quarter of 2012. The adoption of the National Civil Aviation Safety Quality Control Programme is planned for the third quarter of 2012. The adoption of this Programme will satisfy the findings of the peer review of the implementation of the Multilateral Agreement between the European Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the former Yugoslav Republic of Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of Norway, Romania, the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo [1] on the establishment of a European Common Aviation Area (ECAA Agreement). The following IPA 2009 project, which started in 2009, will also continue in 2012: ‗‘Reinforcement of the administrative and technical capacity with a view to ensuring efficient performance of the activities of the Croatian Civil Aviation Agency (CCAA) and enhancement of the administrative and technical capacity of the Accident Investigation Body (AIB)‘‘ consisting of two components - Twinning and Supply Contract.

3.14.6. Maritime Transport

The Act on Amendments to the Maritime Code will complete the necessary amendments in order to ensure the implementation of Regulation 3577/92/EC applying the principle of freedom to provide services in maritime transport within Member States (maritime cabotage). This Act will also be aligned with Directive 2009/20/EC on the insurance of shipowners for maritime claims by laying down the obligation of shipowners to insure their ships or provide some other financial collateral pursuant to the Convention on Limitation of Liability for Maritime Claims of 1976 amended by Protocol of 1996. It will also be aligned with Directive 2005/35 on ship-source pollution and on the introduction of penalties for infringements as amended by Directive 2009/123, in the part not covered by the Criminal Code. Croatian legislation will be fully aligned with Directive 2009/13/EC of 16 February 2009 implementing the Agreement concluded by the European Community Shipowners‘ Associations (ECSA) and the European Transport Workers‘ Federation (ETF) on the Maritime Labour Convention, 2006, and amending Directive 1999/63/EC. Implementation of the standards from the Maritime Labour Convention ratified by the Republic of Croatia on 23 October 2009 will also be completed. Full alignment with Directive 2009/21 on compliance with flag State requirements will also be ensured. With the ratification of the 2002 Protocol of the 1974 Athens Convention relating to the Carriage of Passengers and Their Luggage by Sea, Croatian legislation with be aligned with Regulation (EC) No. 392/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of accidents. The adoption of the Act on the Establishment of the Agency for the Investigation of Maritime, Air and Railway Accidents will complete alignment with the acquis in the part referring to the establishment of an independent maritime accident investigation body, which is an obligation laid down in Directive 2009/18 establishing the fundamental principles governing the investigation of accidents in the maritime transport sector. The adoption of a new Regulation on the conditions and validation of criteria for the granting of concessions for liner coastal maritime transport fulfils the preconditions for the implementation of Council Regulation No. 3577/92 applying the principle of freedom to provide services to maritime transport within Member States. In accordance with the obligations taken over by the Republic of Croatia within the framework of accession negotiations with the EU concerning the strengthening of administrative capacity in the part referring to maritime transport, the Act on Amendments to the Maritime Code (OG 146/2008), the "Preliminary Human Resources Study in the VTMIS Service" prepared as part of the twinning contract (PHARE 05), and the Action Plan for the fulfilment of recommendations of the Peer-review mission of the

193

European Commission and the European Maritime Safety Agency (EMSA) of June 2009, the year 2012 will see the continuation of activities aimed at strengthening administrative capacity in the part referring to maritime transport. Therefore, the establishment of the Vessel Traffic Management and Information Service (VTMIS) will be necessary in 2012, as will the establishment of an organisational unit for the drafting of technical rules for the statutory certification and monitoring of recognised organisations within the Ministry of Maritime Affairs, Transport and Infrastructure. The procedure for the establishment of the Agency for the Investigation of Maritime, Air and Railway Accidents will also be conducted. The recruitment of 17 navigation safety inspectors is planned in the second quarter of 2012 in the Inspection Service and another 14 employees in the Vessel Traffic Management and Information Service (VTMIS) in the Ministry of Maritime Affairs, Transport and Infrastructure for the purpose of monitoring and managing maritime transport. The equipping of the Vessel Traffic Management and Information Service with the VTMIS maritime radio-communications system is also planned for 2012 as part of an Integrated Maritime Information System with the possibility to exchange information in accordance with acts adopted pursuant to Regulation (EC) No. 1406/2002 establishing a European Maritime Safety Agency. One employee needs to be recruited to the Directorate for Maritime Traffic, Maritime Domain and Ports in the second quarter in order to strengthen administrative capacity for the alignment of Croatian legislation with EU legislation. Two employees are needed for the co-ordination and implementation of European Union programmes and projects.

3.14. General: measure relates to railway, air and maritime transport a). Legislative activities

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety on the Community's railways 32004L0049 Regulation (EU) No. 996/2010 on the investigation and prevention of accidents and incidents in civil aviation and repealing Directive 94/56/EC Act on the Establishment of the Agency for the 32010R0996 1. Investigation of Maritime, Air and Railway MMATI 2nd quarter 2012 Accidents Directive 2009/18/EC of the European Parliament and of the Council of 23 April 2009 establishing the fundamental principles governing the investigation of accidents in the maritime transport sector and amending Council Directive 1999/35/EC and Directive 2002/59/EC of the European Parliament and of the Council 32009L0018

194

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Establishment of the Agency for the Investigation of Maritime, Air and GRC/MMATI 4th quarter 2012 Railway Accidents

3.14.1. Road Transport

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulation (EEC) No. 3820/85 and (EEC) No. 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC 32006R0022 Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities Act on Amendments to the Act on Working Time, 32002L0015 4th quarter 2012 1. Compulsory Rest Periods of Mobile Workers and MMATI Commission Directive 2009/5/EC of 30 January 2009 amending Annex III to

Recording Devices in Road Transport Directive 2006/22/EC of the European Parliament and of the Council on minimum conditions for the implementation of Council Regulations (EEC) Nos 3820/85 and 3821/85 concerning social legislation relating to road transport activities. 32009L0005 Regulation (EC) No. 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport and amending Council Regulations (EEC) No. 3821/85 and (EC) No. 2135/98 and repealing Council Regulation (EEC) No. 3820/85 195

32006R0561 Council Regulation (EEC) No. 3821/85 of 20 December 1985 on recording equipment in road transport.

31985R3821

Council Regulation (EC) No. 2135/98 of 24 September 1998 amending Regulation (EEC) No. 3821/85 of 20 December 1985 on recording equipment in road transport and Directive 88/599/EEC concerning the application of Regulations (EEC) No. 3820/85 and (EEC) No. 3821/85

31998R2135

b) Subordinate legislation

Directive 2011/94 of the European Parliament Road Traffic Safety Act (OG 7/08 74/11218). 1. Ordinance on driving licences MI and of the Council of 28 November 2011 1st quarter 2012

amending Directive 2006/126/EC

Deadline by which Member States must align with this Directive: 19 January 2011 for laws and regulations 19 January 2013 implementation of provisions Ordinance amending the Ordinance on Act on Amendments to the Act Directive 2002/15/EC of the European 2 recording equipment and speed MMATI on Working Time, Compulsory Parliament and of the Council of 11 March 4th quarter 2012 limitation devices Rest Periods of Mobile Workers and 2002 on the organisation of the working time 196

Recording Devices in Road Transport (OG of persons performing mobile road transport 60/08 and 124/10). activities (Article 19, paragraph 2, Article 20, 32002L0015 paragraph 10 and Article 22, paragraph 2). Council Regulation (EEC) No. 3821/85 of 20 December 1985 on recording equipment in road transport. 31985R3821

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline EDUCATION AND TRAINING IPA 2008 (twinning contract ) – strengthening of administrative capacity for roadside inspection through education and training for the MMATI 4th quarter 2012 HRK 150,000.00 implementation of EU legislation for the purpose of standardisation and for MI the introduction of new inspection methods TECHNICAL AND IT EQUIPMENT IPA 2008 (supply contract) – procurement of equipment for the technical MMATI inspection of vehicles and IT equipment (personal computers and laptops, 4th quarter 2012 HRK 787,500.00 MI servers)

197

3.14.2. Railway transport b) Subordinate legislation

To be submitted Competent Legal basis for the adoption of To be aligned with the following acts of the for No. Subordinate legislation authority subordinate legislation acquis Government procedure Directive 2007/59/EC of the European Parliament and of the Council of 23 October Ordinance on the manner, programme, Railway Safety Act (OG 40/07), Article 44, 2007 on the certification of train drivers vocational education, in-service 1. MMATI paragraph 5 operating locomotives and trains on the railway 3rd quarter 2012 training and testing of operating system in the Community workers in rail transport 32007L0059

Council Directive 2005/47/EC of 18 July 2005 on the Agreement between the Community of European Railways (CER) and the European Ordinance on amendments to the Transport Workers‘ Federation (ETF) on certain Railway Safety Act (OG 40/07), Article 49, 2. Ordinance on working time of MMATI aspects of the working conditions of mobile 2nd quarter 2012 paragraph 7 operating workers in rail transport workers engaged in interoperable cross-border services in the railway sector 32005L0047

198

3.14. 4. Inland navigation b) Subordinate legislation

To be submitted Competent Legal basis for the adoption of To be aligned with the following acts of the for No. Subordinate legislation authority subordinate legislation acquis Government procedure Directive 2006/87/EC of the European Ordinance on amendments to the Parliament and of the Council of 12 December Ordinance on a technical supervisory Act on Inland Waterways Navigation and 1. MMATI 2006 laying down technical requirements for 3rd quarter 2012 body for the certification of inland Ports (OG 109/07 and 132/07) inland waterway vessels and repealing Council waterway vessels Directive 82/714/EEC

3.14.5. Air Transport a) Legislative measures

To be submitted Competent for No. Legislative measure To be aligned with the following acts of the acquis authority Government procedure

Commission Regulation (EC) No. 1794/2006 of 6 December 2006 laying down a common charging scheme for air navigation services Act on Amendments to the Act on the 1. MMATI 4th quarter 2012 Establishment of the Croatian Air Traffic Control Commission Regulation (EU) No. 1191/2010 of 16 December 2010 amending Regulation (EC) No. 1794/2006 of 6 December 2006 laying down a common charging scheme for air navigation services

199 b) Subordinate legislation

To be submitted Competent Legal basis for the adoption of To be aligned with the following acts of the for No. Subordinate legislation authority subordinate legislation acquis Government procedure Commission Regulation 805/2011 laying down Ordinance on the air traffic controller 1. MMATI Air Traffic Act (OG 69/0, 84/119), Article 142. detailed rules for air traffic controllers‘ licences 1st quarter 2012 licence and authorisations and certain certificates Commission Regulation (EC) 593/2007 of 31 May 2007 on the fees and charges levied by EASA

32007R0593

Commission Regulation (EC) 1346/2008 of 23 Ordinance on the fees and charges December 2008 amending Regulation (EC) No. 2. MMATI Air Traffic Act (OG 69/09, 84/11), Article 149. 1st quarter 2012 levied by EASA 593/2007 of 31 May 2007 on the fees and charges levied by EASA

32008R1356

Commission Regulation 1191/2010 amending Regulation 1794/2006

Commission Regulation (EC) 593/2007 of 31 May 2007 on the fees and charges levied by EASA

32007R0593 Ordinance on the establishment of en 3. MMATI Air Traffic Act (OG 69/09, 84/11), Article 142. 1st quarter 2012 route and terminal charges. Commission Regulation (EC) 1346/2008 of 23 December 2008 amending Regulation (EC) No. 593/2007 of 31 May 2007 on the fees and charges levied by EASA

32008R1356 200

Commission Regulation1191/2010 amending Regulation 1794/2006

Ordinance on amendments to the Commission Regulation (EC) No. 283/2011 of Ordinance on the establishment of the 22 March 2011 amending Regulation 633/2007 requirements for automatic systems in relation to transitional provisions referred to in 4. for the exchange of flight data for the MMATI Air Traffic Act (OG 69/09, 84/11), Article 149. Article 7 1st quarter 2012 purpose of notification, co-ordination 32011R0283 and transfer of flights between air Deadline by which Member States must align traffic control units with this Directive: 31 December 2014 Commission Regulation (EC) No. 262/2009 of 30 March 2009 laying down requirements for Ordinance on co-ordinated allocation Air Traffic Act (OG 69/09, 84/11), Article 149, the coordinated allocation and use of Mode S 5. and use of Mode S interrogator codes MMATI 1st quarter 2012 paragraph 3 interrogator codes for the single European sky for the single European sky 32009R0262

Commission Regulation (EU) No. 1034/2011 of 17 October 2011 on safety oversight in air traffic management and air navigation services and amending Regulation (EU) No. 691/2010 32011R1034

Ordinance on amendments to the Commission Regulation (EU) No. 1035/2011 of Ordinance on the conditions and Air Traffic Act (OG 69/09, 84/11), Article 142, 6. MMATI 17 October 2011 laying down common 1st quarter 2012 manner for the issuing of certificates item 6 requirements for the provision of air navigation for service providers in air transport services and amending Regulations (EC) No. 48482/2008 and (EU) No. 691/2010 32011R1035 Deadline by which Member States must align with this Directive: enters into force on the 20th day from the date of its publication in the Official Journal of the European Union Air Traffic Act (OG 69/09, 84/11), Article 142, Directive 2009/12/EC of the European 7. Ordinance on airport charges MMATI 1st quarter 2012 item 8 Parliament and of the Council of 11 March 2009 on airport charges

201

32009L0012

Commission Regulation (EU) No. 677/2011 of 7 Ordinance on amendments to the July 2011 laying down detailed rules for the rdinance on the establishment of O Air Traffic Act (OG 69/09, 84/11), Article 149, implementation of air traffic management (ATM) 8. service efficiency measurement MMATI 2nd quarter 2012 paragraph 3 network functions and amending Regulation programmes in air transport and (EU) No. 691/2010 network functions 32011R0677 Directive 2003/42/EC of the European Parliament and of the Council of 13 July 2003 on occurrence reporting in civil aviation 32003L0042 Commission Regulation (EC) 1321/2007 of 12 November 2007 laying down implementing rules for the integration into a central repository of information on civil aviation occurrences exchanged in accordance with Directive Ordinance on reporting about security Air Traffic Act (OG 69/09, 84/11), Article 142, 2003/42/EC of the European Parliament and of 9. MMATI 2nd quarter 2012 related occurrences item 7 the Council 32007R1321 Commission Regulation (EC) 1330/2007 of 24 September 2007 laying down implementing rules for the dissemination to interested parties of information on civil aviation occurrences referred to in Article 7(2) of Directive 2003/42/EC of the European Parliament and of the Council 32007R1330 Commission Regulation (EU) No. 29/2009 of 7 February 2009 laying down requirements on Ordinance on requirements on data data link services for the single European sky. Air Traffic Act (OG 69/09, 84/11), Article 149, 10. link services for the single European MMATI 4th quarter 2012 paragraph 3 32009R0029 sky Deadline by which Member States must align with the mentioned Directive: applicable as of 7 February 2013 c) Strategies and Action Plans or Programmes 202

Competent To be submitted for No. Measure authority Government procedure

National Civil Aviation Safety 1. National Civil Aviation Safety Programme 3rd quarter 2012 Commission National Civil Aviation Safety 2. National Civil Aviation Safety Quality Control Programme 3rd quarter 2012 Commission

203

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES The recruitment of 5 new employees is planned in the organisational unit competent for air traffic to carry out activities related to alignment with the MMATI 2nd quarter 2012 HRK 400,000.00 EU acquis. EDUCATION AND TRAINING Implementation of the twinning contract – between the Ministry of Maritime Affairs, Transport and Infrastructure, the Civil Aviation Agency, the Aircraft Accident and Incident Investigation Agency and a partner HRK 252,094.00 country within the IPA 2009 project ''Reinforcement of the administrative MMATI 2012 (Aircraft Accident and Incident and technical capacity with a view to ensuring efficient performance of Investigation Agency) the activities of the Croatian Civil Aviation Agency (CCAA) and enhancement of the administrative and technical capacity of the Accident Investigation Body (AIB)'' Education and training of employees of the Aircraft Accident and Incident HRK 100,000.00 Investigation Agency will be carried out in accordance with the 2012 MMATI 2012 (Aircraft Accident and Incident Training Plan Investigation Agency) Education and training of employees of the organisational unit competent MMATI 2012 HRK 60,000.00 for air traffic will be carried out in accordance with the 2011 Training Plan TECHNICAL AND IT EQUIPMENT Implementation of the Contract on the supply of computer and other equipment (supply contract) – between the Ministry of Maritime Affairs, Transport and Infrastructure, the Civil Aviation Agency, the Aircraft Accident and Incident Investigation Agency and a partner country within HRK 504,187.00 the IPA 2009 project ''Reinforcement of the administrative and technical MMATI 2012 (Aircraft Accident and Incident capacity with a view to ensuring efficient performance of the activities of Investigation Agency) the Croatian Civil Aviation Agency (CCAA) and enhancement of the administrative and technical capacity of the Accident Investigation Body (AIB)'' HRK 250,000.00 Procurement of technical and IT equipment for employees of the Aircraft MMATI 2012 (Aircraft Accident and Incident Accident Investigation Agency. Investigation Agency) Procurement of technical and IT equipment for employees of the MMATI 2012 HRK 40,000.00 organisational unit competent for air traffic

204

3.14.6. Maritime Transport

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure

Council Regulation (EEC) No. 3577/92 of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage). 31992R3577 Directive 2009/20/EC of the European Parliament and of the Council of 23 April 2009 on the insurance of shipowners for maritime claims (Text with EEA Relevance) 32009L0020 Directive 2005/35/EC of the European Parliament and of the Council of 7 September 2005 on ship-source pollution and on the introduction of penalties 3rd quarter 2012 1. Act on Amendments to the Maritime Code MMATI for infringements

32005L0035 Directive 2009/123/EC of the European Parliament and of the Council of 21 October 2009 amending Directive 2005/35/EC on ship-source pollution and on the introduction of penalties for infringements 32009L0123

Directive 2009/21/EC of the European Parliament and of the Council of 23 April 2009 on compliance with flag State requirements

205

Directive 2009/13/EC of the 16 February 2009 implementing the Agreement concluded by the European Community Shipowners‘ Associations (ECSA) and the European Transport Workers‘ Federation (ETF) on the Maritime Labour Convention, 2006, and amending Directive 1999/63/EC 32009L0013 Regulation (EC) No. 392/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of Act on the ratification of the Athens Convention accidents. 2. relating to the Carriage of Passengers and Their MMATI 3rd quarter 2012 32009R0392 Luggage by Sea Deadline by which Member States must align with this Directive: at the latest by 31 December 2012 Council Regulation No. 3577/92 of 7 December 1992 applying the principle of Act on Amendments to the Act on Liner Shipping freedom to provide services to maritime transport within Member States 4th quarter 2012 3. MMATI and Seasonal Coastal Maritime Transport (maritime cabotage). 31992R3577 b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure Council Regulation No. 3577/92 of 7 Regulation on the conditions and Act on Liner Shipping and Seasonal Coastal December 1992 applying the principle of evaluation of criteria for the granting of Maritime Transport (OG 33/2006, 38/2009 freedom to provide services to maritime 1. concessions for public transport in MMATI and 87/2009) Article 39 and Article 46, 4th quarter 2012 transport within Member States (maritime liner coastal maritime transport paragraph 3. cabotage).

31992R3577

206

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of 1 employee to strengthen administrative capacity for the preparation and alignment of Croatian legislation with EU legislation and 2 employees for the co-ordination and implementation of EU programmes GRC/MMATI/MAd 2nd quarter 2012 HRK 150,000.00 and projects in the Directorate for Maritime Traffic, Maritime Domain and Ports Recruitment of 17 navigation safety inspectors GRC/MMATI/MAd 2nd quarter 2012 HRK 1,800,000.00 Recruitment of 14 employees to the Vessel Traffic Management and GRC/MMATI/MAd 2nd quarter 2012 HRK 700,000.00 Information Service (VTMIS) TECHNICAL AND IT EQUIPMENT Establishment of the information-communication VTMIS system as part of the integrated maritime information system with the possibility to MMATI 3rd quarter 2012 HRK 7,080,000.00 exchange data in accordance with acts based on Regulation (EC) No. 1406/2002 establishing a European Maritime Safety Agency. ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Establishment of the VTMIS Service (Vessel Traffic Management and Information System) in the Ministry of Maritime Affairs, Transport and GRC/MMATI 2nd quarter 2012 - Infrastructure, Directorate for Maritime Traffic, Maritime Domain and Ports Establishment of an organisational unit for the preparation of technical rules for statutory certification and control of recognised organisation GRC/MMATI 2nd quarter 2012 - within the Directorate for Maritime Traffic, Maritime Domain and Ports OTHER Implementation of the Action Plan for meeting the recommendations of the Peer Mission of the European Commission and the European MMATI 4th quarter 2012 - Maritime Safety Agency (EMSA) of June 2009 – activities for 2012

207

3.15. Energy

3.15.1. Internal energy market With the signing of the Treaty Establishing the Energy Community, the Republic of Croatia undertook to transpose and apply the acquis communautaire in the energy sector, and has fulfilled its obligation up to the point of the adoption of the Third European Legislative Package on Energy. After the provisional closing of Chapter 15 – Energy, the European Commission has continued to monitor Croatia‘s further progress through monitoring tables. Measures which are monitored and communicated to the European Commission consist of activities on the implementation of the Third Package and activities related to the establishment of compulsory stocks of oil and petroleum products with the goal of increasing the security of supply. The European Commission has been informed through the monitoring tables that the Ministry of the Economy has performed an analysis of the implementation of the Third European Energy Package. The Ministry has also taken further steps and preparatory studies required for drafting amendments to the energy legislation were prepared by the end of 2010 and draft acts prepared in 2011. The first working meeting with representatives of the European Commission was held and particular guidelines and explanations were given. The amendments to the Oil and Petroleum Products Market Act were adopted in 2011, thus in the largest extent aligning the Croatian legislative framework in the field of the security of supply of oil and petroleum products with the new EU Directive on minimum stocks of crude oil and/or petroleum products, which Member States are obliged to apply by 31 December 2012. Additional training of experts from the Ministry of the Economy – Service for Energy Policy, Strategy and EU Projects – is carried out within the project IPA (I) 2008 ―Monitoring Dependence and Vulnerability of the Energy Supply System with the Scope on Security of Supply‖ under contract no. 2008-0303-030101, and IPA 2009 FPP RAC "Reinforcement and Further Development of Internal Energy Market with the Scope of Energy Community Treaty". Contracting of the latter project with Austrian partners is in progress and the project will be implemented in 2012 and 2013.

In order to transpose the Third Energy Package, in 2012 it is necessary to finalize the preparation and adopt the Energy Act, the Act on the Regulation of Energy Activities, the Electricity Market Act and the Gas Market Act. In order to fully transpose the Directive on minimum stocks of crude oil and/or petroleum products, in 2012 it is necessary to prepare and adopt two additional subordinate regulations quantifying the obligation of maintaining compulsory stocks and reporting on the state of stocks and on procedures in the event of an extraordinary disturbance in the market supply. Further implementation of the existing legislative framework is also required.

3.15. 2. Renewable energy sources and energy efficiency

For the purpose of implementing associated EU energy regulations in the field of renewable energy sources and energy efficiency, preparations are underway on the drafting of the Renewable Energy Sources Act and its associated implementing regulations and action plan. It is necessary to adopt the Renewable Energy Sources Act with its associated implementing regulations and action plan, and the Act on Amendments to the Act on Efficient Energy Use in Direct Consumption with the purpose of expanding the scope of energy efficiency to primary energy, prescribing obligations of suppliers to realize energy savings (introduction of white certificate scheme) and defining clear duties and authorities of institutions in adopting, implementing and controlling the energy efficiency policy in the Republic of Croatia. The draft Energy Efficiency Act is prepared by the Ministry of the Economy in cooperation with the Ministry of Construction and Physical Planning which is responsible for aligning the Act with the requirements of the Directive on the energy performance of buildings (2010/31/EU). Based on the Energy Efficiency Act, ME and MCPP will prepare and adopt a series of ordinances regulating the field of energy efficiency, whereas the following ordinances are under the competence of MCPP: Ordinance on energy audits of structures and energy certification of buildings, Ordinance on conditions and criteria for persons who perform energy audits of structures and energy certification of buildings, and Ordinance on the implementation of energy efficiency projects in the public sector. MCPP will also cooperate with ME on the adoption of other ordinances under the direct competence of ME, especially on the adoption of the Ordinance on the methodology for monitoring, measurement and verification of energy savings. 208

Furthermore, it is necessary to prepare an incentives system for the application of energy services (ESCO projects), especially in the public sector, and to prepare the programme for the reconstruction of existing buildings, in cooperation with the Ministry of Construction and Physical Planning. Relating to the implementation of the acquis communautaire in the field of labelling the energy efficiency of energy consuming products, in 2012 it is required to adopt the relevant ordinances pursuant to the adoption of regulations for individual groups of household appliances, i.e. energy consuming products.

In terms of strengthening administrative capacities related to Croatia‘s accession to the EU, it is necessary to recruit experts to fill existing vacancies in order to be able to efficiently perform all the tasks and new obligations resulting from the newly adopted acts, respecting the set deadlines.

3.15.3. Nuclear safety and radiation protection

In 2012, emphasis will be placed on alignment with the relevant EU acquis, implementation of existing legislation in the field of protection against ionising radiation and nuclear safety, and on the strengthening of administrative capacities as stated in the fourth closing benchmark for Chapter 15 – Energy: ―Croatia demonstrates that it will have by the time of accession adequate administrative capacity to properly implement and enforce the relevant legislation in all areas related to nuclear safety.‖

The State Office for Radiological and Nuclear Safety currently employs 25 civil servants. In 2011, three civil servants were hired, while two civil servants requested transfer to another state administration body, so the number of civil servants is increased by one in relation to the previous year. The Regulation on the internal organisation of the State Office for Radiological and Nuclear Safety prescribes 38 work post categories with 49 employed civil servants. Therefore, in the period from 2012 to 2015 it is planned to increase the number of employees by five civil servants each year, with the objective of meeting the requirements set during negotiations on Chapter 15, bearing in mind the greater amount of work arising from legal and international obligations.

3.15.1. Internal energy market

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC 1. Energy Act ME 32009L0072 2nd quarter 2012 Deadline for the alignment of Member States with this Directive: 3 March 2011 Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and 209

repealing Directive 2003/55/EC 32009L0073 Deadline for the alignment of Member States with this Directive: 3 March 2011 Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators 32009R0713 Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 32009R0714 Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 32009R0715 Regulation (EC) No 713/2009 of the European Parliament and of the Council Act on Amendments to the Act on the Regulation of of 13 July 2009 establishing an Agency for the Cooperation of Energy 2. ME 3rd quarter 2012 Energy Activities Regulators 32009R0713 Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC 32009L0072 3. Act on Amendments to the Electricity Market Act ME Deadline for the alignment of Member States with this Directive: 3 March 2011 3rd quarter 2012 Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 32009R0714 Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC 32009L0073 4. Act on Amendments to the Gas Market Act ME Deadline for the alignment of Member States with this Directive: 3 March 2011 1st quarter 2012 Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 32009R0715

210

a) Subordinate legislation

Competent To be aligned with the following acts of To be submitted for Government No. Legislative measure No. authority the acquis procedure

Ordinance on the calculation of average daily net imports, average Directive 2009/119/EC of 14 September 2009 Oil and Petroleum Products Market Act 1. daily consumption and quantities of ME on minimum stocks of crude oil and/or 3rd quarter 2012 (OG 57/06 and 18/11), Art. 11, par. 8 compulsory stocks of oil and petroleum products petroleum products Intervention Plan in the event of Directive 2009/119/EC of 14 September 2009 Oil and Petroleum Products Market Act 2. extraordinary disturbance in market ME on minimum stocks of crude oil and/or 4th quarter 2012 (OG 57/06 and 18/11), Art. 8, par. 4 supply of oil and petroleum products petroleum products

3.15. 2. Renewable energy sources and energy efficiency

Legislative activities a) Legislative measures To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC 1. Renewable Energy Sources Act ME 4th quarter 2012 32009L0028 Deadline for the alignment of Member States with this Directive: 5 December 2010

Directive 2006/32/EC on energy end-use efficiency and energy services ME 2. Energy Efficiency Act Directive 2010/31/EU on the energy performance of buildings 1st quarter 2012 MCPP

211

b) Subordinate legislation

To be aligned with Competent No Action plans and programmes Legal basis for the adoption of subordinate legislation the following acts authority of the acquis Directive 2010/31/EU on the energy performance of buildings Ordinance on energy audits of structures and 1. MCPP Directive 2006/32/EC on energy end-use efficiency and energy services 1st quarter 2012 energy certification of buildings

Ordinance on conditions and criteria for persons Directive 2010/31/EU on the energy performance of buildings 2. who perform energy audits of structures and MCPP Directive 2006/32/EC on energy end-use efficiency and energy services 1st quarter 2012 energy certification of buildings Ordinance on the methodology for monitoring, Directive 2006/32/EC on energy end-use efficiency and energy services 3. ME 1st quarter 2012 measurement and verification of energy savings Ordinance on the implementation of energy Directive 2006/32/EC on energy end-use efficiency and energy services 4. MCPP 1st quarter 2012 efficiency projects in the public sector c) Strategies and Action Plans or Programmes

No Measure Competent authority To be submitted for Government procedure

1. National Action Plan for renewable energy sources ME 2nd quarter 2012

ME 2. National Action Plan for energy efficiency 1st quarter 2012 MCPP National Plan for increasing the number of buildings with near zero 3. MCPP 2nd quarter 2012 energy consumption National programmes for reconstruction of buildings (for different 4. MCPP 2nd quarter 2012 building categories)

212

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of 20 employees in relation to planning, monitoring and implementing energy efficiency measures at the new Directorate for MCPP 2nd and 3rd quarter 2012 HRK 400,000.00 Energy Efficiency, Strategic Planning and International Cooperation Recruitment of 13 employees in charge of monitoring EU-related issues ME 2nd quarter 2012 HRK 4,000,000.00 at the Directorate for Energy and Implementation of Legislative Measures IT SUPPORT Establishment of the Register of energy certificates (web system for MCPP 2nd quarter 2012 HRK 200,000.00 implementation, monitoring and control of issuing energy certificates) Establishment of the Register of persons authorised to perform energy audits (web system for implementation, monitoring and control of the MCPP 2nd quarter 2012 HRK 200,000.00 work of persons authorised to perform energy audits) Establishment of the system for implementation of energy efficiency projects (web system for implementation, monitoring and control of MCPP 2nd quarter 2012 HRK 200,000.00 energy efficiency projects) Establishment of the energy efficiency information system (energy management) for the public sector (upgrading and creating a web system for implementation, monitoring and control of direct energy consumption MCPP 3rd quarter 2012 HRK 400,000.00 of the public sector for public sector buildings, public lighting and public companies) Establishment of the Register of Biofuels (web system for producers, ME 4th quarter 2012 HRK 500,000.00 distributors and public users of biofuels) Establishment of the web system for monitoring, measurement and ME 4th quarter 2012 HRK 1,000,000.00 verification of energy savings EPEEF ADMINISTRATIVE CAPACITY STRENGTHENING Twinning project IPA (I) 2008 – Monitoring Dependence and Vulnerability HRK 7,500,000.00 (EU funds) of Energy Supply System with the Scope on Security of Supply - ME end of 2013 HRK 825,000.00 national funding administrative capacity training (State Budget) Twinning project IPA (I) FPP RAC 2009 – Reinforcement and Further HRK 3,375,000.00 (EU funds) Development of Internal Energy Market with the Scope of Energy ME end of 2013 HRK 375,000.00 national funding Community Treaty - administrative capacity training (State Budget)

213

3.15.3. Nuclear safety and radiation protection b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No Subordinate legislation Government authority subordinate legislation the acquis Procedure

Council Directive 97/43/Euratom of 30 June Ordinance on the conditions for 1997 on health protection of individuals Act on Radiological and Nuclear Safety 1. application of ionising radiation SORNS against the dangers of ionizing radiation in 4th quarter 2012 (OG 28/10), Art. 27, par. 2 sources in medicine and dentistry relation to medical exposure 31997L0043 Council Directive 96/29/Euratom of 13 May 1996 laying down basic safety standards for the protection of the health of workers and Ordinance on the conditions and the general public against the dangers arising measures for protection against from ionizing radiation ionising radiation for carrying out Act on Radiological and Nuclear Safety 2. SORNS 31996L0029 4th quarter 2012 activities involving x-ray units, (OG 28/10), Art. 33, par. 2 and 3 accelerators and other devices Council Directive 97/43/Euratom of 30 June generating ionising radiation 1997 on health protection of individuals against the dangers of ionizing radiation in relation to medical exposure 31997L0043 Council Directive 96/29/Euratom of 13 May 1996 laying down basic safety standards for Ordinance on the conditions and the protection of the health of workers and measures for protection against Act on Radiological and Nuclear Safety the general public against the dangers arising 3. SORNS 4th quarter 2012 ionising radiation for carrying out (OG 28/10), Art. 33, par. 2 and 3 from ionizing radiation activities with radioactive sources 31996L0029 Council Directive 97/43/Euratom of 30 June 1997 on health protection of individuals

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against the dangers of ionizing radiation in relation to medical exposure 31997L0043 Council Directive 2006/117/Euratom of 20 Ordinance on the supervision and November 2006 on the supervision and control of shipments of radioactive Act on Radiological and Nuclear Safety control of shipments of radioactive waste and 4. SORNS 4th quarter 2012 waste, spent fuel and high activity (OG 28/10), Art. 64, par. 5 spent fuel radioactive sources 32006L0117 Council Directive 2003/122/Euratom of 22 Ordinance on authorisations and Act on Radiological and Nuclear Safety December 2003 on the control of high-activity licences for use and transport of 5. SORNS (OG 28/10), Article 8 sealed radioactive sources and orphan 1st quarter 2012 ionising radiation sources sources

32003L0122 Ordinance on the measurement of the Council Directive 2003/122/Euratom of 22 personal dose, testing of ionising December 2003 on the control of high-activity SORNS Act on Radiological and Nuclear Safety 6. radiation sources, working conditions sealed radioactive sources and orphan 1st quarter 2012 (OG 28/10), Article 77 and on reports and registers sources 32003L0122 Council Directive 89/618/Euratom of 27 Regulation on measures for November 1989 on informing the general GRC protection against ionising Act on Radiological and Nuclear Safety public about health protection measures to be 7. 2nd quarter 2012 radiation and interventions in the (OG 28/10), Article 65 applied and steps to be taken in the event of (SORNS) case of an emergency a radiological emergency 31989L0618

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES

Recruitment of five civil servants SORNS 3rd quarter 2012 HRK 300,000.00

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3.16 TAXATION The enactment of the Value Added Tax Act, planned for the fourth quarter of 2012, will align this Act with the following Directives: Council Directive 2006/112/ EC, Council Directive 2006/138/EC, Council Directive 2008/8/EC, Council Directive 2008/9/EC, Council Directive 2009/162/EC, Council Directive 2009/47/EC, Council Directive 2009/69/EC, Council Directive 2008/117/EC, Council Directive 2010/45/EU and Council Directive 86/560/EEC. The Excise Duties Act (OG 83/09) that entered into force on 1 January 2010 and the implementing regulations in the form of the Ordinance on excise duties and the Ordinance on implementation of the Excise Duties Act concerning blue-dyed gas oil for use in agriculture, fishing and aquaculture, transpose the provisions of the acquis communautaire in the area of harmonised excise duties, thus largely aligning the taxation system for products subject to excise duties (alcohol and alcoholic beverages, tobacco products, energy products and electricity) with the acquis communautaire. As a consequence, the taxation system for these products is the same as in the EU Member States. Taking into account the obligations assumed under the pre-accession negotiations which relate to further alignment of the national excise duty legislation in the area of harmonised excise duties with the acquis communautaire, so as to achieve full alignment on the date of accession, a new Excise Duties Act is planned to be enacted by the end of 2012. The new Act would include all the provisions and principles of the currently applicable Excise Duties Act and transpose the following directives:  Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC, which, among others, introduces a legislative framework for electronic monitoring and control system for the movement of excise goods under suspension of excise duty and prescribes the procedure for monitoring such movement of excise goods under suspension of excise duties (in contrast with the previous provisions of the acquis that provided for a paper document that had to accompany such movements of excise duties);  In the energy sector: Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity, regarding electricity, natural gas, coal and coke. As regards electricity and natural gas, alignment will include the determination of the occurrence of a chargeable event, i.e. the moment of excise duty chargeability, the definition of excise duty payer, submission of excise duty accounts and reports, excise duty payment, exemption from excise duty payment and records maintained by an excise duty payer. As regards coal and coke, taxation rules will be introduced that are in line with taxation of other energy products or special rules for coal and coke in accordance with the said Directive. The Excise Duties Act will also implement the Commission Implementing Decision (2011/545/EU) of 16 September 2011 concerning the application of the control and movement provisions of Council Directive 2008/118/EC to products falling within CN code 3811, in accordance with Article 20(2) of Council Directive 2003/96/EC, applied as of 1 July 2012;  In the area of tobacco products: Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco, in the part thereof relating to changes in the definitions of tobacco products, determination of the minimum amount of excise duties imposed on tobacco products (cigarettes, cigars, cigarillos and other smoking tobacco) as well as the introduction of a new manner of calculating excise duties on cigarettes in relation to the average weighted selling price of cigarettes released for consumption, instead of the presently used top-selling price category. As regards the taxation of tobacco products (cigarettes), it should be noted that a transitional period has been granted to the Republic of Croatia until 31 December 2017, when the level of taxation of cigarettes is required to be equal to that provided for by the acquis communautaire, i.e. 60% of the average weighted selling price of cigarettes released for consumption and a minimum amount of EUR 90 per 1,000 pieces of cigarettes. The transitional period is subject to the condition that the excise duty on cigarettes from 1 January 2014 must be a minimum of EUR 77 per 1,000 pieces of cigarettes, irrespective of the weighted average selling price. The transitional period has been granted subject to the gradual implementation of excise duties on cigarettes, with the Republic of Croatia having undertaken in the course of accession negotiations to align the national excise duty legislation with the stated EU directives until the date of accession. Implementing regulations with provisions regulating the procedures related to the provisions of the new Excise Duties Act are also planned to be adopted by end-2012: 216

 Ordinance on excise duties,  Ordinance on movement of excise goods under suspension of excise duty based on an electronic accompanying document, and  Ordinance on implementation of the excise duties act concerning blue-dyed gas oil for uses in agriculture, fishing and aquaculture.

The enactment of Amendments to the General Tax Act for the purpose of its alignment with Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures and Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC is planned for the fourth quarter of 2012. Administrative capacities In the framework of an IPA 2008 leftover programme, a project entitled ―IT System development on information exchange on taxation of savings income in the form of interest payments‖ – Framework agreement was approved. This project was proposed with a view to developing software that would facilitate the exchange of information on savings income in the form of interest payments between the Tax Administration and banking institutions, for the purpose of preventing tax evasion. Project activities are scheduled to begin in the fourth quarter of 2012. In the framework of the IPA 2008 programme ―Instrument for project preparation and strengthening of administrative capacities‖, project activities under the project entitled ―Strengthening of the Tax Administration in the fight against corruption‖ will be completed in February 2012. In the framework of the IPA 2009 programme, a project entitled ―Enhancement of the administrative capacity of the Croatian Tax Administration in the field of audit‖ has been approved. Project activities are scheduled to begin in the second quarter of 2012. The aim of the project is to strengthen the capacity of the Croatian Tax Administration in the field of audit through three components: 1. strengthening the overall audit system; 2. establishment of the E-audit function, and 3.strengthening the administrative capacity in the area of VAT audit. In the framework of the IPA 2010 programme, a project under the title: ―Enhancement of the CTA administrative and institutional capacity in the field of application of VAT EU common system‖ was approved and project activities are scheduled to begin in the second quarter of 2012. The aim of the project lies in strengthening the administrative and institutional capacities of the Tax Administration with a view to successful implementation of the EU common market VAT regulations, with an emphasis on improved work processes and VAT-related EU common market procedures. In the framework of the IPA 2010 FF RAC programme, a project entitled ―Strengthening the administrative capacity of the Croatian Tax Administration on mutual cooperation in the field of taxation‖ was approved. This Twinning light project was proposed for the purpose of strengthening administrative capacity in the area of international exchange of information in the field of taxation. The aim of the project is planned to be achieved by updating the existing work process manuals and further staff training. Project activities are scheduled to begin in the fourth quarter of 2012. In 2012, the Tax Administration will conduct a number of activities (sub-projects) in the framework of the Revenue Administration Modernization Project (RAMP) financed by a World Bank loan. Key activities with a major impact on administrative capacity building include: 1) beginning of construction of a Disaster Recovery Centre in Vinkovci; 2) implementation of business processes reengineering through several sub-projects; 3) realisation of the introduction of the electronic audit project; 4) realisation of the external and internal communication improvement project; 5) realisation of the e-learning introduction project, and 6) start of activities on the establishment of compliance risk management.

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As regards administrative capacity strengthening in 2012, the Tax Administration and the Customs Administration will continue to regularly and actively participate in the activities of the 2013 FISCALIS programme in accordance with the work plan. As regards ICT infrastructure enhancement of the Tax Administration, computer network capacity upgrading has been successfully completed and further activities on installing new information technology equipment are underway. Further activities on VIES and VES systems maintenance and development are planned for 2012. As regards personal identification numbers and their use in property declarations, further activities have been planned towards networking with institutions in charge of real estate property records and accounts, and networking with land registries and the banking system. With a view to implementing all the activities necessary for implementation of the acquis communautaire, five new employees are planned to be recruited in the Information System Department of the Central Office of the Tax Administration in the first quarter of 2012. With a view to implementing all the activities necessary for the implementation of EU-funded projects, three new employees are planned to be recruited in the Department for International Cooperation and European Integration of the Central Office of the Tax Administration in the third quarter of 2012. As regards strengthening of administrative capacities of the Customs Administration, and in line with the 2012 training plan, educational programmes will be provided to customs officials and business operators regarding changes in excise legislation and the introduction and implementation of the new electronic excise movement and control system (EMCS) that will be implemented in the Excise Duties Act. In 2012, the Customs Administration will continue with further development of information systems in terms of interconnectivity and interoperability with information systems of EU Member States and the European Commission, such as SEED (System for the exchange of excise data), EMCS (Excise movement and control system) and Risk analysis management. Further activities will also be targeted towards the development and adjustment of the national customs and excise duty systems necessary for smooth customs and excise duty operations prior to and upon accession of the Republic of Croatia to the European Union. For the purpose of implementing the above obligations and other obligations assumed in the course of accession negotiations, the Service for Excise Duties will require new recruitments to fill vacant posts. Therefore, further to the recruitment procedures conducted in 2011, seven new recruitments are planned to be made in the first quarter of 2012.

Legislative activities a) Legislative measures

218

To be submitted for No. Legislative measure Competent authority To be aligned with the following acts of the acquis Government procedure

Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC 32008L0118 Time limit for alignment by Member States with this Directive: 1 April 2010. Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco (codification) 32011L0064 1. Excise Duties Act MF - CA 4th quarter 2012 Time limit for alignment by Member States with this Directive: 1 January 2011.

Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity 32003L0096 Time limit for alignment by Member States with this Directive: 31 December 2003. Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax 32006L0112

Implemented

Council Directive 2006/138/EC of 19 December 2006 amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the value added tax arrangements applicable to radio and television broadcasting services and certain electronically supplied services . 32006L0138

th 2. Value Added Tax Act MF - TA Implemented 4 quarter 2012

Council Directive 2008/8/EC of 12 February 2008 amending Directive

2006/112/EC as regards the place of supply of services

32008L0008

One part of the Directive has been implemented and the remaining parts will be aligned as at : 31 December 2012 31 December 2014. Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 219

2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State 32008L0009

Implemented Council Directive 2009/162/EU of 22 December 2009 amending various provisions of Directive 2006/112/EC on the common system of value added tax 32009L0162

Implemented Council Directive 2009/47/EC of 5 May 2009 amending Directive 2006/112/EC as regards reduced rates of value added tax 32009L0047

Implemented Council Directive 2009/69/EC of 25 June 2009 amending Directive 2006/112/EC on the common system of value added tax as regards tax evasion linked to imports 32009L0069

Implemented Council Directive 2008/117/EC of 16 December 2008 amending Directive 2006/112/EC on the common system of value added tax to combat tax evasion connected with intra-Community transactions 32008L0117

Implemented Council Directive 2010/45/EU of 13 July 2010 amending Directive 2006/112/EC on the common system of value added tax as regards the rules on invoicing 32010L0045

Time limit for alignment: 31 December 2012 Thirteenth Council Directive of 17 November 1986 on the harmonization of the laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in Community territory 31986L0560

Implemented

220

Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures 32010L0024 Time limit for alignment by Member States with this Directive: 1 January 2012.

Council Directive 2011/16/EU of 15 February 2011 on administrative 3. General Tax Act MF - TA 4th quarter 2012 cooperation in the field of taxation and repealing Directive 77/799/EEC

32011L0016

Time limit for alignment by Member States with this Directive: 1 January 2013; except for Article 8 of this Directive where the time limit for alignment is set at 1 January 2015.

b) Subordinate legislation

Legal basis for the To be submitted for To be aligned with the following acts of the No. Subordinate legislation Competent authority adoption of subordinate Government acquis legislation procedure Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC 32008L0118 Time limit for alignment by Member States with this Directive: 1 April 2010. 1. Ordinance on excise duties MF - CA Excise Duties Act Council Directive 2011/64/EU of 21 June 2011 4th quarter 2012 on the structure and rates of excise duty applied to manufactured tobacco (codification) 32011L0064 Time limit for alignment by Member States with this Directive: 1 January 2011; a transition period has been granted to Croatia in the area of taxation of cigarettes.

221

Commission Regulation (EC) No 684/2009 of 24 July 2009 implementing Council Directive 2008/118/EC as regards the computerised procedures for the movement of excise goods under suspension of excise duty 32009R0684 Time limit for alignment by Member States with this Regulation: 1 April 2010, except Article 6 that will start to be applied from 1 December 2012. Council Directive 2003/96/EC of 27 October 2003 Ordinance on the implementation restructuring the Community framework for the of the Excise Duties Act taxation of energy products and electricity th 2. concerning blue-dyed gas oil for MF - CA Excise Duties Act 32003L0096 4 quarter 2012 use in agriculture, fishing and aquaculture Time limit for alignment by Member States with this Directive: 31 December 2003. Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for Ordinance on the movement of excise duty and repealing Directive 92/12/EEC excise goods under suspension of 3. MF - CA Excise Duties Act 32008L0118 4th quarter 2012 excise duty based on an electronic Time limit for alignment by Member States with this accompanying document Directive: 1 April 2010.

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223 c) Strategies and action plans or programmes Administrative capacities

Adoption/implementation Measure Competent institution Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of seven new employees in the Service for Excise Duties MF – CA 1st quarter 2012 HRK 660,000 of the Central Office of the Customs Administration

Recruitment of five new employees in the Information System MF – TA 1st quarter 2012 HRK 515,000 Department of the Central Office of the Tax Administration

Recruitment of three new employees in the Department for International Cooperation and European Integration of the Central MF – TA 1st quarter 2012 HRK 300,000 Office of the Tax Administration

EDUCATION AND TRAINING 60% of the funding provided by IPA and Participation in Fiscalis programme MF – TA/CA 2012 40% by the State budget Education of employees and business operators about excise duty MF – CA 2012 Funding secured through regular operations legislation and EMCS implementation

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3.17. ECONOMIC AND MONETARY UNION

3.17.1. Coordination of economic and fiscal policies

In order to achieve the goals set by the Croatian Government, i.e. to preserve macroeconomic stability and create the necessary conditions for recovery and economic growth, close coordination of economic and fiscal policies is necessary. In the following mid-term period, maintenance of price stability will remain the objective of monetary policy, while fiscal policy will be geared towards consolidation of public finance. In this respect, it is of crucial importance to ensure strict implementation of the Fiscal Responsibility Act, i.e. of its provisions and the prescribed fiscal rules.

As adverse macroeconomic conditions continued throughout 2010, net lending/borrowing (deficit/surplus under ESA 95 methodology) equalled -4.9% of GDP. For 2011, net lending/borrowing of the consolidated general government was planned at the level of -5.4% of GDP, and according to preliminary data, it is evident that realisation was lower than planned.

The Government will continue to insist on stronger coordination of fiscal and monetary policies through sufficient liquidity within the system, more acceptable, lower interest rates and overall monetary stability, with a focus on maintaining stability of the HRK exchange rate in circumstances of substantial currency risk.

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3.18 STATISTICS

In the context of the process of accession of the Republic of Croatia to the European Union (EU), the Central Bureau of Statistics (CBS) has made significant headway in the alignment of the official national statistics with the legislative framework and practices of the European Statistical System. In 2012, the CBS will continue with the implementation of activities aimed at aligning the official statistics so as to achieve the set objectives and meet the obligations assumed in the process of accession of the Republic of Croatia to the EU. It will continue to improve the national accounts statistics in line with ESA 95, mainly through a reclassification of annual and quarterly data series on the gross domestic product (GDP) from the National Classification of Activities (NKD) 2002 to NKD 2007 and improved calculation of annual and quarterly GDP at constant prices. It will also work on the development of quarterly sectoral accounts and regular compilation of supply and use and Input/Output tables.

Further to setting up the Economic Accounts for Agriculture (EAA) at the national level, the CBS will also work on setting up the Regional Economic Accounts for Agriculture (REAA). REAA provides information on the specific relationship between national and regional data. To set up these accounts, it is necessary to select the method of calculation, define data sources and make data calculation/data compilation.

Thorough preparations are underway for the introduction of Intrastat (statistics on the trade in goods between EU Member States) into the statistical system of the Republic of Croatia. In this context, activities in 2012 will include alignment of the Intrastat methodology with the Instructions for reporting units, improvement of Intrastat applications based on the analysis of the data obtained in pilot surveys, and the description and elaboration of parameters needed for verifying the authenticity of Intrastat data collected via an application of the Customs Administration of the Ministry of Finance. There are also plans to conduct an analysis of historical data of the statistics of trade in goods between the Republic of Croatia and EU Member States for the purpose of determining reporting units and inclusion thresholds for future regular Intrastat surveys. In cooperation with the Ministry of Finance - Customs Administration, continuous education will be organised for reporting entities, and the general public will be informed about Intrastat through seminars, the CBS website and the publication of articles related to this topic. The application of the Ministry of Finance - Customs Administration for the Intrastat system will be further developed.

In the framework of short-term statistics, great efforts have been invested in the production of an entire set of short-term statistics in line with the acquis (Council Regulation (EC) No 1165/98 of 19 May 1998 concerning short-term statistics and its amendments, Regulation (EC) No 1158/2005 of the European Parliament and of the Council of 6 July 2005 amending Council Regulation (EC) No 1165/98 concerning short-term statistics, Commission Regulation (EC) No 1503/2006 of 28 September 2006 implementing and amending Council Regulation (EC) No 1165/98 concerning short-term statistics as regards definitions of variables, list of variables and frequency of data compilation and Commission Regulation (EC) No 472/2008 of 29 May 2008 implementing Council Regulation (EC) No 1165/98 concerning short-term statistics as regards the first base year to be applied for time series in NACE Revision 2 and, for time series prior to 2009 to be transmitted according to NACE Revision 2, the level of detail, the form, the first reference period, and the reference period). Activities in 2012 will be targeted towards further development of the services producer price index (SPPI), including the production of new sub-indices and improvement of existing ones, mainly for the purpose of time series recalculation of the missing turnover indices in industry and industrial orders indices for the period 2000–2004, with the ultimate aim of achieving full alignment with the EU legislation concerning short-term statistics.

In line with Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and on labour costs, a survey on the structure of earnings will be conducted for the first time in 2012. In the course of this survey, employee data by age, sex, profession, educational background, length of service, type of work relationship, working hours and the structure of gross earnings (gross salary and mandatory deductions from salary) will be collected.

226

Legislative activities a) Legislative measures

To be submitted for Competent Number Legislative measure To be aligned with the following acts of the acquis Government institution procedure Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the Act on Amendments to the Official Statistics transmission of data subject to statistical confidentiality to the Statistical Office 1 CBS 1st quarter 2012 Act of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities 32009R0223

Administrative capacities

Adoption/implementation Measure Competent institution Planned budgetary funds deadline OTHER National accounts statistics 1. Reclassification of annual and quarterly GDP data series from NKD 2002 to NKD 2007 2. Improvement of annual and quarterly GDP calculation at constant prices CBS 4th quarter 2012 HRK 300,000 + MB IPA 2009 3. Development of quarterly sectoral accounts and regular compilation of supply and use and Input/Output tables

Regional Economic Accounts for Agriculture Set up and calculation of Economic Accounts for Agriculture by statistical CBS 4th quarter 2012 MB IPA 2009 spatial units at level 2

Statistics of the trade in goods between EU Member States (Intrastat) 1) Adjustment of the Intrastat application on the basis of analysis of the data CBS 1st quarter 2012 IPA 2008 collected in a pilot survey

227

2) Alignment of Intrastat methodology with the Instructions for reporting units CBS 2nd quarter 2012 HRK 10,000 3) Description and a detailed elaboration of the parameters for verifying the authenticity of the collected Intrastat data in the application of the Customs CBS 2nd quarter 2012 HRK 30,000 Administration

4) Analysis of historical data of the statistics of trade in goods between the Republic of Croatia and EU Member States for the purpose of determining CBS 4th quarter 2012 HRK 10,000 reporting units and inclusion thresholds

5) Continuous education of reporting entities and provision of information about Intrastat to the general public through seminars, the CBS website and CBS 4th quarter 2012 HRK 60,000 the publication of articles related to this topic MF - CA

Short-term statistics (STS) Improvement of the existing and compilation of new STS indicators 1) Annex A to the STS regulation: IPA 2009 CBS 3rd quarter 2012 Preparation of recalculated monthly data series from 2000 to 2005 for + IPA 2009 FPP RAC turnover indices in industry (variable A: 120-122) and industrial orders indices (variable A: 130-132)

2) Annex D to the STS regulation: Preparation of data series for 1 SPPI sub-index (sub-index of the services HRK 45,000 + IPA 2009 CBS 2nd quarter 2012 producer price index) from 2006 to 2010 (variable D:310). + IPA 2009 FPP RAC

3) Annex D to the STS regulation: Drafting of a methodology for 1 new SPPI sub-index (sub-index of the HRK 45,000 services producer price index) (variable D:310) CBS 4th quarter 2012 + IPA 2009 + IPA 2009 FPP RAC

Labour market statistics Collection of data on the structure of earnings and submission of data to CBS HRK 75,000 EUROSTAT 2nd quarter 2012

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3.19. SOCIAL POLICY AND EMPLOYMENT

Although the Republic of Croatia has met nearly all the obligations undertaken in the negotiating process for Chapter 19, some minor items remain to be aligned in the field of labour legislation, in special regulations outside the scope of the Labour Act, as well as in the field of anti-discrimination and equal opportunities. Strengthening administrative capacity needs to continue in all subchapters, as this was not completed by the end of 2011 due to limited fiscal resources and the partial ban on new recruitment. In the coming period, Croatia will continue its activities in the implementation of the Joint Inclusion Memorandum through the adopted National Plan for Social Inclusion 2011 – 2012, and in the implementation of the Joint Assessment of Employment Policy Priorities through the National Employment Promotion Plan 2011 – 2012, the results of which will continue to be reported annually. Health and safety at work In the coming period, Croatia will continue efforts to strengthen the administrative capacity of the Croatian Institute for Health Protection and Safety at Work, and to establish links between responsible institutions in this area. Activities aimed at strengthening the administrative capacity of the State Inspectorate labour inspection service will continue by increasing the total number of labour inspectors for occupational safety and health, and providing additional training. By the end of 2012, the number of inspectors for this area is planned to increase by 20, to a total of 130 inspectors. Additional training of labour inspectors for occupational safety and health is carried out as part of an IPA 2007 project, Contract No. HR/2007/IB/OT/01 2007-0303- 050101. Anti-discrimination and equal opportunities In 2012, the Office for Gender Equality of the Government of the Republic of Croatia will continue to implement the provisions of the Gender Equality Act and measures laid out in the National Policy for Promoting Gender Equality for the period 2011 to 2015, with special emphasis on the implementation of measures related to the European Strategy for Equality between Women and Men 2010 – 2015, as part of the communication strategy of the Republic of Croatia for accession to the EU. The Office for Gender Equality is required to report to the European Commission on the implementation of national policy measures under negotiating Chapter 19. The Office for Gender Equality will also continue to participate in the two-year Programme for the exchange of good practices on gender equality under Component V of the PROGRESS Community Programme – Gender Equality. With regard to strengthening administrative capacity, it is planned to employ one trainee–expert assistant to co-ordinate the implementation of measures laid out in the National Policy for Promoting Gender Equality for the period from 2011 to 2015, and for participation in the implementation of Component V of the PROGRESS Community Programme – Gender Equality. In early 2011, the Act on Amendments to the Act on Maternity and Parental Benefits (OG 34/11) was adopted. The Act is aligned with Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (tenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) and with Council Directive 2004/83/EC of 29 April 2004 on minimum standards for the qualification and status of third country nationals or stateless persons as refugees or as persons who otherwise need international protection and the content of the protection granted.

229

Pursuant to the Act, the Ordinance on conditions and procedures for exercising the right to breastfeeding breaks, the right to leave for pregnant workers, the right to leave for workers who have recently given birth, and the right to leave for breastfeeding workers was adopted (OG 112/11). During 2012, further alignment will continue of the Act on Maternity and Parental Benefits with Council Directive 2010/18/EU of 8 March 2010 implementing the revised Framework Agreement on parental leave concluded by BUSINESSEUROPE, UEAPME, CEEP and ETUC and repealing Directive 96/34/EC.

Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Council Directive 2010/18/EU of 8 March 2010 implementing the revised Framework Agreement on parental leave concluded by BUSINESSEUROPE, 1. Act on Maternity and Parental Benefits MSPY 4th quarter 2012 UEAPME, CEEP and ETUC and repealing Directive 96/34/EC 32010L0018 Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of 2. Occupational Safety and Health Act MLPS pregnant workers and workers who have recently given birth or are 3rd quarter 2012 breastfeeding 31992L0085 Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin 32000L0043 3. Anti-discrimination Act MSPY 2nd quarter 2012 Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation 32000L0078

230

Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure Council Directive 2005/47/EC of 18 July 2005 on the Agreement between the Community of European Railways (CER) and the European Ordinance on working time of Railway Safety Act (OG 40/07), Article 49, Transport Workers‘ Federation (ETF) on 1. operating workers engaged in rail MMTC 2nd quarter 2012 paragraph 7 certain aspects of the working conditions of transport mobile workers engaged in interoperable cross-border services in the railway sector 32005L0047 Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and Occupational Safety and Health Act, Article 2. Ordinance on risk assessment MLPS workers who have recently given birth or are 4th quarter 2012 13, paragraph 5 breastfeeding (tenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) 31992L0085

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES

Recruitment of new employees in the Ministry of Labour and the Pension System until fully staffed (refers to Directorates for Labour, MLPS 4th quarter 2012 Depending on budgetary funds Pension Insurance, EU projects) New independent Service for Social Dialogue in the Ministry of MLPS 4th quarter 2012 HRK 110 000.00 Labour and the Pension System, eight employees planned Recruitment of ten new employees MH and CIHPSW 2nd/3rd quarter 2012 HRK 661 224.00 + HRK 121,316.44

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Recruitment of 20 new labour inspectors for occupational safety and 2nd quarter 2012 HRK 182 700.00 health in the State Inspectorate; five inspectors in the 2nd quarter, SI 3rd quarter 2012 HRK 365 400.00 five in the 3rd quarter, and ten in the 4th quarter 4th quarter 2012 HRK 800 800.00

Trainee-expert assistance in the Office for Gender Equality Office for Gender Equality 1st quarter 2012 HRK 70 000.00

Expert advisor to the Ombudsman for EU programmes and funds Ombudsman for Gender Equality During 2012 and related forms of international funding and co-operation Strengthening administrative capacity – recruitment of one new MSPY 2nd quarter 2012 HRK 74 365.42 employee Recruitment of two employees in the Department for Programmes MSPY 2nd quarter 2012 HRK 239 158.60 and Projects Recruitment of three employees in the Department for EU Affairs MSPY 2nd quarter 2012 HRK 395 490.00 and Programmes EDUCATION AND TRAINING Twinning project IPA (I) 2007 – Strengthening institutions related to occupational safety and health MLPS, CIHI, CIHPSW By the end of 2012 HRK 4 389 000.00 (EU funds) Funds have been secured under the Twinning project IPA (I) 2007 – Training of labour inspectors for regular activity "Administration and SI 1st and 2nd quarter 2012 occupational safety and health Management of the State Inspectorate" Training of social partners for sectoral and tripartite social dialogue MLPS 2nd quarter 2012 Depending on budgetary funds TECHNICAL AND IT EQUIPMENT New database, four application programmes MH and CIHPSW 2nd/3rd quarter 2012 HRK 60 000.00 + HRK 70 000.00 Vibration measuring device MH and CIHPSW 2nd/3rd quarter 2012 HRK 150 000.00

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3.20. ENTREPRENEURSHIP AND INDUSTRIAL POLICY

In 2012, implementation of the following strategies for small enterprises will continue: 1. Women's Entrepreneurship Development Strategy 2010–2013, 2. Entrepreneurial Learning Strategy 2010–2014, 3. Cluster Development Strategy 2011–2020. As regards the alignment of the definition of small and medium-sized entrepreneurship under the Small Business Development Promotion Act (OG 29/02 and 63/07) with the EU definition, and in view of the newly adopted Act on Regulatory Impact Assessment (OG 90/11), the Ministry of Entrepreneurship and Crafts is responsible for drafting the regulation as the central body of state administration which is authorised, in line with its prescribed scope of work, to submit the regulation to the Government of the Republic of Croatia for adoption. The impact of amendments to the Act must be assessed. As part of the development of the regulatory impact assessment system, an IPA-funded project entitled "Improving information to the Croatian business community — Bizimpact II" will begin in August 2012. This project is a continuation of the project of the same name carried out in the period 2007–2009 using funds from CARDS 2004. The main activity of the project is an economic regulatory impact assessment, and special activities refer to EU guidelines and the implementation of regulatory impact assessment in small business, including the EU Small Business Act. As part of the implementation of the IPA 2007 twinning project "Development of the Regulatory Impact Assessment System", the Legislation Office of the Government of the Republic of Croatia, in cooperation with its twinning partners, Great Britain and Estonia, will continue activities in 2012 aimed at further strengthening of the legislative framework, building administrative capacity in the field of regulatory impact assessment, and implementing the communication strategy to increase public awareness on the importance of regulatory impact assessment. The Act on Regulatory Impact Assessment entered into force on 1 January 2012, and full normative unity will be achieved with the adoption of the Regulation on criteria for the Preliminary Assessment, the method of carrying out the regulatory impact assessment and public consultation procedure, which is planned for the first half of 2012. The Regulation will lay down in detail the methodology (guidelines) for regulatory impact assessment, technical instructions, and forms for all key stages in the procedure, starting from the Preliminary Assessment, up to the submission of the Proposal Statement and the Draft Regulation Proposal for adoption. In the same period, it is planned to adopt the Regulatory Impact Assessment Strategy with the Action Plan, laying down areas of future action with the aim of achieving general and specific goals in the regulatory impact assessment system, strategic measures to be carried out, bodies responsible for those measures, the schedule for their implementation, the required funds, and the supervision and evaluation of their implementation. In the field of strengthening administrative capacity, intensive training on regulatory impact assessment will continue for civil servants, representatives of the interested public, and members of parliament. Implementation of pilot projects related to select regulatory acts will also continue in cooperation with the responsible ministries. In order to raise awareness on the importance of regulatory impact assessment, several public events will be organised, and a seminar for the press will be held near the end of the first half of 2012, when it will be possible to report on the status of the implementation of the Act on Regulatory Impact Assessment and the outcomes of the pilot projects.

Revision of the Industrial Policy Strategy The strategic document adopted by the Government of the Republic of Croatia in 2008, entitled "The Industrial Policy of the Republic of Croatia in Preparation for Accession to 233 the EU", laid down the main goals for Croatia's industrial policy for the period 2008–2013. The overall industrial policy is based on measures and activities to encourage industrial growth and the development of industry. In light of the recent global financial and economic crisis, which has primarily resulted in a negative economic growth, including industrial growth, the industrial policy measures have only partially been implemented. Given that the industrial policy measures proposed in the umbrella document "Industrial Policy in Preparation for Accession to the EU" are based on analyses of the current situation and the developments foreseeable at the time of its preparation, the implementation of the industrial policy measures needs to be revised and amended if necessary, in particular in the field of activities relating to the development of industry and their connection to sustainable development. The financial and economic crisis has caused disturbances in all industrial sectors. The revised Industrial Policy Strategy will also contain analyses of the new situation in individual sectors and measures to be taken to ensure recovery and further growth.

Increasing the competitiveness of the Croatian economy and encouraging investment With the aim of developing a competitive economy based on efficient use of resources, knowledge and innovations, and resulting in economic, social and territorial cohesion and increased competitiveness of the Croatian economy, an economic development strategy will be drawn up for the Republic of Croatia. The development strategy will define the economic policy instruments and measures, and identify the priority sectors that could potentially be competitive on the global market. To ensure a proactive approach to attracting investment in priority sectors for the development of the Croatian economy, the Investment Promotion Strategy will be drafted, and the existing law on encouraging investment will be revised.

Legislative activities c) Strategies and Action Plans or Programmes

Competent No Measure To be submitted for Government procedure authority

1. Revision of the Industrial Policy Strategy ME 4th quarter 2012

2. Development of the Economic Development Strategy ME 4th quarter 2012

3. Revision of the Investment Promotion Act ME 3rd quarter 2012

4. Development of the Investment Promotion Strategy ME 4th quarter 2012

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Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of two employees for economic regulatory impact ME 4th quarter 2012 Approx HRK 50,000.00 (gross salary) assessment pursuant to the Investment Promotion Act Recruitment of two employees for economic regulatory impact assessment pursuant to activities and tasks under the Act on Regulatory MEC 2nd quarter 2012 Approx HRK 150,000.00 (gross salary) Impact Assessment (OG 90/11) EDUCATION AND TRAINING Legislation Office of the Professional education and training in the field of regulatory impact Government of the Republic of continuous 2012 assessment Croatia Professional education and training in the field of economic regulatory MEC continuous 2012 impact assessment OTHER Restructuring of ME in accordance with the State Administration Reform MG, MPO continuous 2012 Strategy

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3.21. TRANS-EUROPEAN NETWORKS

3.21.1. Road Networks

The Republic of Croatia participates regularly as an observer in the work of the Committee drafting the Trans-European Transport Network Guidelines. Croatia also continues its active role in activities defined in the Memorandum of Understanding on the Development of the South-East Europe Core Regional Transport Network.

Development of the Croatian transport network, which has been fully aligned with the development of the Trans-European Transport Network and the South-East Europe Core Regional Transport Network, will continue in 2012.

As regards the development of railway infrastructure, the ISPA-financed project "Rehabilitation of the railway line Vinkovci – Tovarnik – state border" will be completed and the railway line opened for traffic in early 2012. The state commission is currently carrying out tests, performing certification and preparing for trial operation. After the European Commission approved the project entitled "Rehabilitation and reconstruction of the railway line Novska – Okučani", the procurement process commenced. Implementation of the project "Signalling and safety system at Zagreb main railway station" is underway, and completion is planned in November 2012. Several other projects for the rehabilitation of railway lines on corridors Vb and X are being prepared for co-financing through EU structural funds and the Cohesion Fund. Seven projects share in the co- financing of the preparation of project documentation through IPA 2010 – 2011. In addition, IPA 2012 – 2013 will be used to finance the commencement of works on the large project entitled "Rehabilitation and reconstruction of the railway line Dugo Selo – Kriţevci", which will continue through structural instruments after the accession of the Republic of Croatia to the EU.

In the inland waterways sector, implementation of the project "Rehabilitation of the Sava river waterway" will continue, as will the preparation of the project technical documentation for a number of port infrastructure rehabilitation and construction projects. The execution of these projects is planned to be co-financed through EU structural instruments.

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3.22. REGIONAL POLICY AND CO-ORDINATION OF STRUCTURAL INSTRUMENTS

Upon meeting all seven closing benchmarks, Chapter 22 was provisionally closed at the Intergovernmental Conference held on 19 April 2011.

An overview of activities directly related to preparations for the management of the EU Cohesion Policy funds is given below.

3.22.1. Administrative capacity

Implementation of the measures planned in the Organisational Development Strategies and the division of tasks of individual bodies involved in EU funds management (employment, organisation, training and the like) will continue in 2012. Those measures are of key importance for preparing the relevant bodies for EU funds management upon accession of the Republic of Croatia to the EU.

In 2012, information and training activities for staff in charge of EU funds management will also continue. These activities will be carried out by the Ministry of Finance and other bodies involved in the EU funds management system that are responsible for training various stakeholders in the system.

New recruitments will continue in 2012 in bodies competent for EU funds management in accordance with the preparation plans for transition to the expanded decentralised IPA funds management system (following receipt of EDIS accreditation) and the plans for the switch-over to decentralised management of the EU Cohesion Policy funds upon accession to the EU, following the acquisition of the Compliance Assessment accreditation.

During 2012, all bodies envisaged as managing authorities in the management system for funds granted from EU structural instruments, i.e. audit authorities, certifying authorities and coordinating authorities, must draft and adopt internal procedure manuals for activities under their competence. The preparation of the these manuals will be coordinated by the Ministry of Finance, which will at the same time assess the manuals as a precondition for initiating the accreditation process for decentralised management of EU structural instruments (Compliance Assessment).

Additional assistance in preparations for the use of EU structural instruments is envisaged during 2012 under several EU projects financed from Components I, III and IV of the IPA Programme. Under these programmes, consultancy services will be provided to the competent line bodies to assist with the establishment of the EU funds management system and with the training of relevant staff.

3.22.2. Programming

In the course of 2012, preparation of Operational Programmes envisaged in the National Strategic Reference Framework (NSRF) is planned to be completed and public consultations3 with relevant partners will continue. Individual measures within the mentioned programmes will be elaborated in detail as part of separate programme documents (Programme Complements), which will be adopted as national documents by the Croatian Government. Also in 2012, development of Operational Programmes

3 The first round of consultations with relevant partners in the Republic of Croatia was held in June 2010 and the second round of consultations on the Operational Programme for Regional Competitiveness and on the Operational Programme for Human Resources Development in November 2011. Consultations on the Operational Programme for Environmental Protection and on the Operational Programme for Transport were planned to take place in late 2011. 237 envisaged as part of Objective 3 of the Cohesion Policy will be completed (Slovenia–Croatia Cross-border Cooperation Operational Programme and Hungary–Croatia Cross- border Cooperation Operational Programme).

The NSRF document will be amended in accordance with the development of operational programmes. Drafting of the NSRF and coordination of the preparation of these operational programmes is under the competence of the Ministry of Regional Development and EU Funds, which will continue to provide support to managing authorities responsible for individual operational programmes in all aspects and at all programming levels.

Following partner consultations in the Republic of Croatia and consultations with the competent European Commission services, amendments of the abovementioned programme documents are planned, in addition to ex ante evaluation of the NSRF document and the corresponding operational programmes. The evaluation will be organised by the Ministry of Regional Development and EU Funds, and it will be financed from Component I of the IPA Programme. The evaluation is planned to start during the first quarter of 2012.

With regard to the above-mentioned documents, the Strategic Environmental Impact Assessment is planned to be completed in 2012.

The NSRF document and the associated operational programmes will be submitted to the European Commission for adoption six months before the Republic of Croatia becomes a full member of the European Union.

The drafting of operational programmes for the 2014–2020 budgetary period will begin in early 2012.

Activities concerning preparation of project proposals and the associated programme documentation for projects envisaged to be funded from structural instruments will continue during 2012.

In relation to programming within the IPA Programme or, more precisely, within the framework of Component II ―Cross-border Cooperation‖, the second adjustment of the existing operational programmes is in progress (currently programmed for the period 2007–2013, but with stated allocations for the period 2007–2011). The adjustment of the operational programmes for cross-border cooperation programmes between Croatia and IPA countries (Serbia, Montenegro, Bosnia and Herzegovina) and of the operational programmes for transnational cooperation (Mediterranean, South East Europe) and the signing of corresponding Financing Agreements will enable the use of additional funds to carry out activities in the budgetary period from 2007 to the end of 2013. The funds necessary for the implementation of activities in the period from Croatia‘s accession to the European Union until the end of 2013 (EUR 1.25 million) will be drawn from allocations under Component I of the IPA Programme. The adjustment of the operational programmes for the Hungary–Croatia and Slovenia–Croatia Cross-border Cooperation Programmes and the Adriatic Cross-border Cooperation Programme, and the signing of corresponding Financing Agreements will allow for the use of additional funds for activities in the budgetary period from 2007 until mid-2013.

With regard to programming within the IPA Programme or, more specifically, Component III ―Regional Development‖ and Component IV ―Human Resources Development‖ as predecessors of structural funds, the second adjustment of the existing operational programmes (currently programmed for the period 2007–2011) and of the financial agreements is in progress, and it should also cover the time until EU accession. This will permit the use of additional funds for the performance of activities programmed in the operational programmes for transport, environment, regional competitiveness and human resources development for the period from 2007 until mid-2013. The entry into force of those financing agreements is envisaged by the end of 2012. In the course of 2012, the drafting and completion of Operation Identification Sheets (OIS) will continue as necessary for individual operations under these operational programmes. These will be aligned with the competent services of the European Commission before the project tender documentation is submitted to the Delegation of the European Union to the Republic of Croatia for approval. 238

3.22.3. Monitoring and evaluation

The Evaluation Strategy for European Structural Instruments is planned to be adopted by the Croatian Government in the first quarter of 2012. The draft Strategy was prepared by the Central Office for Development Strategy and Coordination of EU Funds. After being coordinated with the competent European Commission services, the draft Strategy was sent to the relevant state administration bodies for consideration in early November 2011. The establishment of an interministerial working group for evaluation is planned in the second quarter of 2012. This group will ensure systematic and efficient implementation of activities envisaged under the Strategy.

A technical assistance contract within the IPA 2008 Project Support to the Management, Monitoring and Evaluation of the Structural Funds in Croatia was signed in November 2011. This contract will provide the basis for the financing of the ex ante evaluation of programme documents for the use of EU funds in the period after Croatia‘s accession to the European Union. The project will be carried out during 2012, and project activities will be coordinated by the Ministry of Regional Development and EU Funds in cooperation with bodies competent for individual operational programmes comprised in the NSRF document.

It is also envisaged that the second technical assistance contract within the framework of this IPA 2008 project will start in the third quarter of 2012. This contract will finance the establishment of an IT system for the monitoring of implementation of programmes and projects financed from the EU Structural Funds (Management Information System, MIS). Project activities will be coordinated by the Ministry of Finance and the Ministry of Regional Development and EU Funds in cooperation with the interministerial working group established for the purpose of establishment of the MIS system.

3.22.4. Financial management and control

Audit missions will continue in 2012. European Commission auditors, auditors of the Agency for the Audit of European Union Programmes Implementation System and internal auditors of individual bodies will inspect the work of institutions competent for the management of EU funds. These audits will take place in accordance with the annual audit plans of the above-mentioned bodies. During 2012, the auditors of the Agency for the Audit of European Union Programmes Implementation System will focus on audits of operations and on-site checks of end beneficiaries.

For the purpose of strengthening the capacity of the Agency for the Audit of European Union Programmes Implementation System as an Audit Body within the EU funds system, the IPA 2009 Twinning project ―Strengthening of Administrative Capacity of the Agency for the Audit of European Union Programmes Implementation System (Audit Authority) for the Audit of EU Cohesion, Agricultural and Fisheries Instruments‖ will also begin in 2012.

Activities in the fields of the Public Internal Financial Control (PIFC) system and the Protection of EU Financial Interests, as it concerns the AFCOS system, are described in greater detail in Chapter 3.32 - Financial Supervision.

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Legislative activities c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

1. Evaluation Strategy for European Structural Instruments MRDEUF 1st quarter 2012

IPA Operational Programme “Transport” 2007-1H2013 – 2. MMTC 3rd quarter 2012 amendments IPA Operational Programme “Environmental Protection” 2007- 3. MENP 3rd quarter 2012 1H2013 - amendments IPA Operational Programme “Regional Competitiveness” 2007- 4. ME 3rd quarter 2012 1H2013 – amendments IPA Operational Programme “Human Resources Development” 5. MLPS 3rd quarter 2012 2007-1H2013 – amendments

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Administrative capacity

Measure Competent authority Adoption/implementation deadline Planned budgetary funds

RECRUITMENT OF NEW EMPLOYEES Recruitment of eight new employees in accordance with the Organisational Development Strategy (ODS) for the Coordinating MRDEUF 3rd quarter 2012 HRK 472,000.00 Authority Recruitment of two new employees in accordance with the Organisational Development Strategy (ODS) for the Certifying MF 4th quarter 2012 cca HRK 15,000.00 Authority Recruitment of 22 new employees in accordance with the Organisational Development Strategy (ODS) for the OP MMTC 4th quarter 2012 cca HRK 1,300,000.00 “Transport”4 Recruitment of four new employees in accordance with the Organisational Development Strategy (ODS) for the OP ME 4th quarter 2012 cca 200,000.00 “Regional Competitiveness”5 Recruitment of new employees in accordance with the Organisational Development Strategy (ODS) for the OP “Human MLPS 4th quarter 2012 depending on state budgetary funds Resources Development” Recruitment of seven new employees (plus two employees whose recruitment is expected in late 2011/early 2012) in MENP 4th quarter 2012 HRK 960,000.00 accordance with the Government Decision6 on recruitment from March 2011 Recruitment of two new employees in accordance with the Organisational Development Strategy (ODS) for the OP “Human MSES 4th quarter 2012 HRK 303,000.00 Resources Development” Recruitment of one new employee in accordance with the Organisational Development Strategy (ODS) for the OP “Human MH 1st quarter 2012 HRK 108,943.00 Resources Development”

4 Since the planned recruitment of fourteen new employees in accordance with ODS did not take place in 2011, the same number of employees will be recruited in 2012 plus eight more employees foreseen for recruitment in 2012. The amount of budgetary funds in the table covers a total of 22 new employees to be recruited in 2012. 5 Since the recruitment of six new employees was planned for 2011, and only four employees were actually recruited, two additional employees will be recruited in 2012. Together with the two employees planned for recruitment in 2012, this totals four new employees. 6 Decision on activities to be carried out by the Ministries and other institutions involved in the implementation of the IPA Programme during 2011 in order to be issued a licence to operate the system for managing the EU pre-accession programmes, without ex-ante checks by the EU Delegation, and a licence to implement EU structural instruments in the Republic of Croatia. 241

Recruitment of eight new employees7 in late 2011/early 2012 in accordance with the Government Decision on recruitment from MA 4th quarter 2012 HRK 1,100,000.00 March 2011 Recruitment of five new employees in accordance with the Organisational Development Strategy (ODS) for the OP MAD 4th quarter 2012 HRK 650,000.00 “Administrative Capacity Development” Recruitment of four new employees in accordance with the HRK 360,000.00 Organisational Development Strategy (ODS) for the OP “Human OCNGO 3rd quarter 2012

Resources Development” Extra-budgetary fund – funds Recruitment of ten new employees pursuant to the Government EPEEF 4th quarter 20112 foreseen in the Fund 2012 Budget; Decision8 on recruitment from March 2011 line item Administration Recruitment of eleven new employees in accordance with the Organisational Development Strategy (ODS) for the OP HAMAG 4th quarter 2012 HRK 1,593,108.00 “Regional Competitiveness” Recruitment of 29 new employees at the BICRO Agency (transfer of employees from BICRO d.o.o. in accordance with the 1st quarter 2012 HRK 5,800,100.00 Regulation on establishment of the Agency)9 BICRO Recruitment of three new employees in accordance with the 3rd/4th quarter 2012 HRK 600,000.00 Organisational Development Strategy (ODS) Recruitment of twelve new employees in accordance with the Organisational Development Strategy (ODS) for the OP ARD 4th quarter 2012 HRK 780,000 “Regional Competitiveness” Recruitment of six new employees in accordance with the Organisational Development Dtrategy (ODS) for the OP “Human HES 4th quarter 2012 HRK 810,000.00 Resources Development” Recruitment of two new employees in accordance with the Organisational Development Strategy (ODS) for the OP “Human AVETAE 4th quarter 2012 HRK 220,000.00 Resources Development”

7 For 2012, the International Projects Department has foreseen the recruitment of eight new employees, included in the total number of employees that the Directorate for Water Management Policy and International Projects plans to recruit in 2012, as stated in the draft of Chapter 27 Environment of the Programme. 8 Decision on activities to be carried out by Ministries and other institutions involved in the implementation of the IPA Programme during 2011 in order to be issued a licence to operate the system for managing the EU pre-accession programmes, without ex-ante checks by the EU Delegation, and a licence to implement EU structural instruments in the Republic of Croatia. 9 The Business Innovation Agency of the Republic of Croatia was established in March 2011, in accordance with the Regulation on the establishment of the Agency adopted by the Croatian Government on 11 November 2010, with the purpose of assuming the rights and obligations of the Croatian Business Innovation Centre – BICRO d.o.o., including also the role of Intermediate Body for EU funds. In accordance with the Organisation Development Strategy, BICRO d.o.o. planned to recruit sixteen employees during 2010 and 2011, and the recruitment plan also related to preparations for implementing 2012/2013 structural instruments. The Administrative Capacity table shows the total number of employees of the Business Innovation Agency expected to be recruited during 2012. The number also includes 29 current employees of BICRO d.o.o. Given the expected expansion in workload and in accordance with the Organisational Development Strategy (ODS), it is necessary to recruit three more employees by the end of 2012. 242

Recruitment of three new employees in accordance with the National Foundation for Civil Organisational Development Strategy (ODS) for the OP “Human 4th quarter 2012 HRK 420,000.00 Society Development Resources Development” Recruitment of new employees in accordance with the CFCA continuous HRK 2,088,000.00 Ordinance on internal organisation and job classification10 Recruitment of three new employees in accordance with the Organisational Development Strategy (ODS) for the Audit ARPA 4th quarter 2012 HRK 435,000.00 Authority Recruitment of four new employees (job advertisement is Croatian Waters 1st quarter 2012 extra-budgetary funds expected in 1st quarter 2012), in accordance with the

Government Decision11 on recruitment from March 201 EDUCATION AND TRAINING Regular educational activities – education and training of civil continuous MRDEUF HRK 28,600.00 servants and potential beneficiaries of EU funds Regular training of representatives of bodies in the AFCOS system (person for irregularities and representatives of bodies in the AFCOS network) and of employees working on activities related to EU projects, i.e. employees whose job description continuous MF / includes acting upon reported irregularities and fraud. Training is carried out by the MF – Independent Department for Combating Irregularities and Fraud as part of its regular plan of activities. Regular training activities (“Open door”, Internal training continuous CFCA HRK 456,000.00 programmes12, Training programme for PPP, FMC of EU funds) TECHNICAL AND IT EQUIPMENT IT equipment for new employees MENP 4th quarter 2012 HRK 20,000.00 IT equipment for new employees MRDEUF 4th quarter 2012 HRK 23,000.00 IT equipment for new employees Croatian Waters 1st quarter 2012 extra-budgetary funds OTHER

10 Currently there are eleven vacant positions. The CFCA Employment Plan for 2012 will be adopted in January 2012. 11 Decision on activities to be carried out by the Ministries and other institutions involved in the implementation of the IPA Programme during 2011 in order to be issued a licence to operate the system for managing the EU pre-accession programmes, without ex-ante checks by the EU Delegation, and a licence to implement EU structural instruments in the Republic of Croatia. 12 The CFCA internal training programmes are attended also by employees of other implementing bodies (HŢI, AVET, EPEEF, HES, ARD, etc.) 243

MF, ARPA, MMTC, ME, MA, Amendments to the organisation of the relevant bodies have MLPS, MENP, MRDEUF, been adopted in accordance with the Organisational MSES, ARD, CFCA, other 2nd quarter 2012 / Development Strategies (ODS) and the division of tasks with relevant agencies and public regard to the management of EU structural funds bodies MF, ARPA, MMTC, ME, MA, Internal procedure manuals for the management of EU structural MLPS, MENP, MRDEUF, 2nd quarter 2012 / funds adopted MAD Expenses covered by the Broadcasting of the “Via the EU Funds” programme on national Delegation of the European Union to MRDEUF continuous TV (HRT 1) and eleven local TV stations Croatia, possibility of national co- financing

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3.23 JUDICIARY AND FUNDAMENTAL RIGHTS

3.23.1 JUDICIAL REFORM See I. Political criteria 1.1 Judicial reform

3.23.2 1.3 HUMAN RIGHTS AND PROTECTION OF MINORITIES See I. Political criteria 1.3 Human rights and protection of minorities

3.23.3 PERSONAL DATA PROTECTION The Act on Amendments to the Personal Data Protection Act (OG 130/11) was adopted in October 2011. This Act has been fully aligned with Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data. In 2012, through the IPA 2007 project "Capacity building of the Croatian Agency for Protection of Personal Data‖, the Personal Data Protection Agency will continue to conduct training and professional development. It will also complete the testing and inspection of the information security system in order to comply with the mandatory requirements of the ISO 27001 standard. In addition, the Agency is planning to implement the following projects in 2012: 1. ‖Enhancing capacities of the CAPPD in the field of the right of access to information‖ within the Dutch pre-accession bilateral assistance programmes; 2. "Improving access to information in public administration" as part of FFRAC 2010; 3. "Strengthening the implementation of the new Freedom of Information Act― as part of the DIV/Reuniting Europe Programme of Assistance; 4. "Perception of data protection and privacy issues by children and youth" as part of the Leonardo da Vinci programme.

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3.23.3 PERSONAL DATA PROTECTION

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline EDUCATION AND TRAINING Training within the IPA project "Capacity building of the Croatian 1st and 2nd quarters PDPA Funded from EU pre-accession funds Agency for Protection of Personal Data" 2012 TECHNICAL AND IT EQUIPMENT Testing and inspection of the information security system so that it complies with the mandatory requirements of the ISO 27001 1st and 2nd quarters PDPA Funded from EU pre-accession funds standard, through the implementation of the IPA project "Capacity 2012 building of the Croatian Agency for Protection of Personal Data" OTHER Implementing the project ‖Enhancing capacities of the CAPPD in 2nd, 3rd and 4th quarters the field of the right of access to information‖ within the Dutch pre- PDPA Funded by the Matra-flex short-term programme 2012 accession bilateral assistance programmes Implementing the project "Improving access to information in public 3rd and 4th quarters Funded from EU pre-accession funds; national PDPA administration" as part of FFRAC 2010 2012 contribution EUR 10,000 Implementing the project "Strengthening the implementation of the 1st and 2nd quarters new Freedom of Information Act― as part of the DIV/Reuniting PDPA Funded by the DIV/Reuniting Europe Programme 2012 Europe Programme of Assistance Implementing the project "Perception of data protection and privacy 1st, 2nd and 3rd quarters issues by children and youth" as part of the Leonardo da Vinci PDPA Funded from the Leonardo da Vinci programme 2012 programme

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3.23.4 CITIZEN RIGHTS

Legislative activities a) legal provisions:

To be submitted Competent No. Legislative measure To be aligned with the following acts of the acquis for Government authority procedure 95/553/EC Decision of the Representatives of the Governments of the Member States meeting within the Council of 19 December 1995 regarding protection for citizens of the European Union by diplomatic and consular representations 1 Foreign Service Act MFEA 41995D0553 4th quarter 2012 96/409/CFSP Decision of the Representatives of the Governments of the Member States meeting within the Council on 25 June 1996 on the establishment of an emergency travel document

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3. 24. JUSTICE, FREEDOM AND SECURITY 3.24.1. Asylum With a view to strengthening administrative capacities, an EUR 100,000 project entitled ―Strengthening administrative capacities for an efficient implementation of the Dublin procedure and access to EURODAC‖ has commenced within the MATRA programme. The aim of the project, which will be implemented by the Dutch Immigration and Naturalisation Office, is to train border police officers in police administrations and employees of directorates in the Ministry of the Interior in EURODAC and Dublin Regulations, and to prepare them for the implementation of these Regulations. The first project activity commenced in October 2011 and consisted of an analysis of the current state of affairs in the implementation of EURODAC in the Republic of Croatia. Six activities are planned for 2012: a two-day seminar for 15 ministry employees, four regional seminars for 100 border police officers from all police administrations in the Republic of Croatia, a study visit to the Dutch Immigration and Naturalisation Office for two ministry employees who will be in charge of EURODAC and the Dublin Procedure, and a two-day working visit of the head of the Dutch Dublin Department and an expert in EURODAC technical matters.

3.24.2. Migration In October 2011, the Croatian Parliament adopted a new Aliens Act (OG 130/11), which entered into force on 1 January 2012. The Act facilitates further alignment with Council Directive 2004/38/EC of 29 April 2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States. With a view to alignment with Council Directive 2009/50/EC, the Act also regulates the status of highly qualified third-country nationals, i.e. the issuance to them of stay and work permits, in the form of the EU Blue Card. These provisions will start to apply on the day of accession of the Republic of Croatia to the European Union. The Act is also aligned with Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing for minimum standards on sanctions and measures against employers of illegally staying third-country nationals. The Act provides that pertinent subordinate legislation will be adopted within 10 months of the entry into force of the Act. It is planned to adopt the following subordinate acts, aligned with the acquis: 1. Ordinance on the status and work of aliens in the Republic of Croatia; 2. Regulation on the manner of calculation and the amount of resources for the maintenance of an alien in the Republic of Croatia; 3. Ordinance on the manner of assessing conditions for issuing a temporary stay permit for the purpose of secondary school education; 4. Ordinance on the manner of assessing conditions for issuing a temporary stay permit for the purpose of scientific research; 5. Ordinance on the stay and work of highly qualified third-country nationals in the Republic of Croatia; 6. Ordinance on the manner of assessing conditions for the entry and stay in the Republic of Croatia of nationals of the European Economic Area member states and their family members, and for family members of Croatian nationals.

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3.24.3. Visas

Alignment of the visa system and legislative measures In 2012, preparations will be made for the implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on the Mutual Rights of Travel of Nationals of the Republic of Croatia and Nationals of the Russian Federation. It is expected that the Agreement will enter into force on 1 January 2013. Consultations will be conducted with the Republic of Turkey, whose nationals need a visa for EU Member States, but not for the Republic of Croatia, regarding a new regime of the mutual rights of travel. Efforts will be made to conclude a new bilateral agreement on mutual rights of travel which will introduce a classical visa regime. On 21 October 2011, the Croatian Parliament adopted a new Aliens Act (OG 130/11). The Act entered into force on 1 January 2012. It is aligned with Regulation (EC) No. 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) and Regulation (EC) No. 767/2008 of the European Parliament and of the Council of 9 July 2008 concerning the Visa Information System (VIS) and the exchange of data between Member States on short-stay visas (VIS Regulation). On the basis of the Act, it is planned to submit a proposal to the Croatian Government to adopt the Regulation on the visa system in the second quarter of 2012, and the Regulation on the Croatian Visa Information System in the third quarter of 2012. This is a new subordinate legislative act to regulate the Croatian Visa Information System, i.e. the entry, storage and processing of data on visa applications, and issued, denied, extended, invalidated and cancelled visas. Further alignment will thus be achieved with the VIS Regulation [Regulation (EC) No. 767/2008 of the European Parliament and of the Council of 9 July 2008 concerning the Visa Information System (VIS) and the exchange of data between Member States on short-stay visas, CELEX No. 32008R0767] and the Visa Code. In addition, in the second quarter of 2011, it is planned to adopt a new Ordinance on visas, a single subordinate act adopted by the minister competent for foreign affairs in agreement with the minister competent for the interior, to regulate the procedure of issuing visas in diplomatic missions/consular posts of the Republic of Croatia and at border crossing points. This subordinate act will also regulate the procedure of extending visas in police administrations/police stations. Full legislative coherence in the procedure of issuing visas in DMs/CPs and at BCPs will thus be achieved. In the third quarter of 2012, it is planned to adopt a new Ordinance on visa forms.

IT system – Croatian Visa Information System (Croatian Visa Database) In 2012, it is planned to further develop the Croatian Visa Database and implement new functionalities to ensure an IT connection between pertinent MI services and to facilitate the collection and storage of biometric data of visa applicants. System tests will be run in selected DMs/CPs. Preparations will also continue in the development and setting up of the Croatian Visa Information System and in the connection to the EU VIS.

Implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on the Mutual Rights of Travel of Nationals 249

In accordance with the Implementation Plan for the Preparation of the Services of Foreign and Internal Affairs for the Alignment of the Visa Regime, in 2012 it is planned to carry out measures pertaining to preparation for the implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on the Mutual Rights of Travel of Nationals, including: - devising the concept of a new work organisation; - the refurbishment of the Embassy building in accordance with Schengen standards; - procuring necessary IT infrastructure, both for the Embassy and the Ministry; - hiring necessary staff at the Embassy and training consular officers; - devising a concept and providing prior information to the public and to all interested parties.

Training and development On the basis of the amended legislation concerning visas, the Manual for Processing Visa Applications will be drawn up in the second quarter of 2012, for use by the visa authorities of the Republic of Croatia. Training and professional development of consular officers is planned as a continuing measure, and the following major areas will be covered in 2012: - correct application of visa regulations and using the CVD, i.e. the future Croatian VIS; - detection and identification of forgeries (equipment should be procured within the implementation of the IPA 2010 Project ―Support to the National Visa System―); - familiarisation with the visa acquis. In 2012, it is planned to hold consular consultations for consular officers working in DMs/CPs with regard to the adoption of the new Aliens Act, the Regulation on the Croatian VIS, and the new Ordinance on visas. In the second and fourth quarters of 2012, it is planned to hold consular courses for consular officers to be deployed in DMs/CPs and for all interested MFEA employees. A training programme is currently being conducted in the Ministry of the Interior in the following modules: EU and Schengen law, and detection and identification of forgeries. On the basis of the Plan and Programme of Simultaneous Training for Border Officers and Consular Officers with regard to the issuing of visas, in the second quarter of 2012 training will begin for the first group of so-called multipliers. This plan aims to achieve coherence in procedures, i.e. uniformity in the practice of issuing visas at border crossing points and in DMs/CPs. With a view to strengthening interdepartmental co-operation and consolidating the application of regulations, it is planned to hold regular monthly meetings of relevant services of the MFEA and the MI. At these meetings, information regarding the perceived practices of fraudulent visa applications, illegal migration, etc., will be exchanged.

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3.24.4. Border management and Schengen In April 2011 a revised Border Management Action Plan was adopted, and the Act on Amendments to the State Border Protection Act (OG 130/11) was adopted in November 2011. An interagency working group was set up for the drafting of a new Schengen Action Plan. The new Action Plan will be drafted upon the adoption of the amendments to the Schengen Borders Code and after obtaining a financial framework for the temporary instrument – the Schengen Facility Fund. The drafting is planned for the first quarter of 2012. The Government is expected to adopt the updated Action Plan for Integrated Border Management by the end of the first quarter of 2012. In 2012, it is also planned to implement the twinning light project aimed at revising the Integrated Border Management Strategy of the Republic of Croatia and the pertinent Action Plan in accordance with the European approach to integrated border management. In the first quarter of 2012, the Ordinance on amendments to the Ordinance on the procedure for carrying out state border surveillance will be adopted. The Ordinance on the content, users of operative databases, and the periods of keeping data in these databases will be adopted by the end of the year.

Organisation and staff

The Ministry of the Interior is making substantial efforts in staffing the border police. In 2011, an additional 308 police officers were deployed in the border police. In 2012, in accordance with the Action Plan for Integrated Border Management, a total of 450 police officers will be deployed in the border police.

Specialist training and development In 2011, a total of 393 border police officers completed a specialist border police course, and it is planned to provide training for an additional 800 police officers in 2012. In the course of 2011, a total of 3,800 border police officers received professional training in the following areas: EU and Schengen law, detection of forged documents, suppression of smuggling of vehicles, second line of control, risk analysis, the National Border Management Information System, maritime police duties, and suppression of human trafficking. In 2012, it is planned to continue to provide training for trainers and border police officers in the said areas, and it is expected that at least 3,000 border police officers will receive training within this system.

Border police co-operation On the basis of the Decision of the Croatian Parliament on the Ratification of the Agreement on the Accession of the Republic of Croatia to the Quadrilateral Dolga Vas Centre for Law Enforcement Co-operation of 20 April 2011, Croatian police officers have performed official duties in this Centre since 26 September 2011. In the course of 2011, negotiations were held concerning the conclusion of a new Treaty concerning Border Crossing Points, i.e. the Agreement on Border Traffic between the Republic of Croatia and Bosnia and Herzegovina (on a bilateral and trilateral basis with the EC). These negotiations are expected to be concluded by the end of 2012.

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The Agreement on Police Co-operation with Montenegro was signed in March 2011, and the Agreement on Cross-border Police Co-operation with the Italian Republic was signed in July 2011. A joint project of the Croatian and Hungarian border police is currently underway within the IPA cross-border co-operation programme 2007-2013, within which a joint information exchange centre will be set up in Mohács (Hungary) by the end of 2012.

On the basis of the Agreement between the Croatian Government and the Government of the Republic of Serbia on Police Co-operation of 2009 and the Protocol on the Establishment of a Joint Contact Service of 2010, the contact service started work on 21 June 2011. On 22 November 2011, the Rules of Procedure for a joint contact service of the police of the Republic of Croatia and of the Republic of Serbia on the Bajakovo – Batrovci border crossing point were signed, creating all the conditions for the functioning of this joint contact service.

IT and technical equipment Technical equipment In accordance with the Action Plan for the Implementation of the Integrated Border Management Strategy, in 2012 technical equipment will continue to be procured for the purposes of the border police. Apart from the procurement of equipment with budgetary funds, in 2012 more equipment is expected to be procured through EU assistance programmes, i.e. through the following projects: IPA 2008 ―Blue Border Surveillance, Phase II‖, IPA 2009 ―Modernisation of State Border Control‖, and IPA 2010 ―Integrated Border Management‖. In the course of 2011, two type A vessels and 16 type C vessels were procured for the purposes of the maritime police, and two aluminium and four rubber boats for state border surveillance on rivers. More notable equipment procured in the period includes 31 thermal vision cameras for use on vessels, 12 manual thermal vision cameras, 64 ballistic vests, 30 stereo microscopes, seven devices for checking documents with printers (Docu-Box) and 18 endoscopes. In addition, a contract was signed in 2011 between the Republic of Croatia and Bosnia and Herzegovina for the installation of the state border surveillance system on the territories of the City of Metković and the bays of Neum and Mali Ston. The installation of the system on the territory of the City of Metković was completed in 2011, while the installation in the bays of Neum and Mali Ston has been divided into two phases, the first of which was completed in 2011, and the second will be completed by the end of June 2012.

National Border Management Information System – NBMIS and preparation for joining SIS II The National Border Management Information System (NBMIS) is currently installed at 74 border crossing points (98 at the external and six at the internal border). By the end of the first quarter of 2012, the system will be fully operational at all border crossing points at the external border. By the end of 2012, the system should be available to all border police officers whose work procedures are implemented in the National Border Management Information System (external and internal border).

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Risk analysis in the border police With a view to attaining European standards in the risk analysis system, in the course of the first quarter of 2012, trainers will receive training based on the Manual for Drawing up Risk Profiles for Police Stations. In addition, for the sake of uniformity, a form for police station risk profiles will be drawn up. By the end of 2012, an improved risk analysis system will be fully implemented at the local level and the procedure will be initiated for the drawing up of a risk analysis manual for regional and national levels.

National Maritime Centre for Information Collection In the course of 2011, a location equipped with necessary IT equipment in Zadar was selected for the Centre. Agreements have been signed with the Ministry of Agriculture, Fisheries and Rural Development, and the Ministry of Maritime Affairs, Transport and Infrastructure for the purpose of setting up the Centre. In addition, web access was provided for the Vessel Monitoring System (VMS) and the Vessel Traffic Management Information System (VTMIS), which completes the first phase of the setting up of the Centre. The second phase includes establishing a software link between these systems, setting up a police vessel monitoring system via the TETRA System, which requires the installation of additional base stations in order to secure a signal across the entire maritime area, and the procurement and installation of five additional radar stations and 15 long-range cameras installed at radar stations (CCTV system). By the end of 2012, a software link will be established with the systems of other ministries and the police vessel monitoring system. The procurement of the radar stations and long-range cameras will be proposed for procurement from the Schengen Facility Fund.

3.24.5. Police co-operation and the fight against organised crime

3.24.5.1. Police co-operation In 2011, Agreements on Police Co-operation were signed with the Kingdom of Spain, the Italian Republic, Bulgaria and Montenegro, and an Agreement on enhancing co- operation in the prevention and fight against serious crime was signed with the USA. In the course of 2012, it is planned to further strengthen all forms of international co- operation of the police in uniform, in particular by continuing the implementation of the project ―International Police Co-operation of the Police in Uniform during the Tourist Season in the Republic of Croatia‖. On the basis of the experience and good results achieved in this type of international co-operation of the police in uniform during the past tourist seasons, it is planned to expand the co-operation and intensify activities carried out with other foreign police forces. In April 2011, liaison officers were deployed in Austria, Serbia, Israel and Interpol. The procedure for the selection of liaison officers to be deployed in Bosnia and Herzegovina and EUROPOL has been completed and their deployment is expected in the first quarter of 2012.

National SIRENE Office In 2011, the national SIRENE Office was set up. In the course of 2012, 15 employees will be recruited and trained, and technical and material equipment for the national SIRENE Office will be procured. 253

EUROPOL In 2012, a new liaison officer will be deployed in EUROPOL.

Crime prevention In 2011, it is planned to continue the implementation of the Community Policing Strategy, and further develop all the projects within the Strategy. Through the implementation of the Community Policing Strategy, preventive programmes and projects will continue to be intensively implemented, as will the provision of international assistance within SEPCA to the states in the region in the area of developing and implementing the community policing model. Within the projects entitled ―Advancement and Development of Crime Prevention‖ and ―Organisation of Prevention in the Community‖, it is planned to continue preventive activities and to set up Information Centres for Prevention, and Prevention Councils in towns, municipalities or counties. Through the project ―Public Relations Reform‖, activities will continue aimed at bringing the police, citizens and media representatives closer together, with a view to enhancing communication between the police and citizens, i.e. the public, and raising the level of trust in the police.

3.24.5.2. Organised crime An Organised Crime Threat Assessment (OCTA) was drawn up for the Republic of Croatia for 2011, and preparations are underway for OCTA 2012. In the course of 2011, all envisaged vacancies at PNUSKOK were filled, both in the strategic and operative departments (Zagreb, Split, Rijeka and Osijek). In 2012, it is planned to carry out a number of activities relating to the implementation of international projects in which the Ministry of the Interior participates, and which pertain to the prevention of trafficking in persons and money counterfeiting. Notable ongoing projects in these areas include: 1. The EU Pericles Programme, aimed at protecting the euro from being counterfeited, in whose implementation the Republic of Croatia is also involved. The project is coordinated by OLAF (European Anti-Fraud Office), the EC body for the protection of the financial interests of the EU, and its implementation will continue until 2013. 2. The project ―Strengthening Transnational Co-operation in Cases of Victims of Trafficking in Persons in SE Europe (TRM II)‖, whose aim, among other things, is to devise and draw up report forms with a view to developing transnational co-operation at the operative level between countries of origin, transit and destination in order to provide victims of trafficking in persons with appropriate assistance, support and protection, with particular emphasis on the protection of children and victims of labour exploitation. 3. The project ―Introduction of the Prerequisites for the Setting Up of Joint Investigation Teams for the Fight against Trafficking in Persons in South-eastern Europe‖, which will contribute to the effective fight against organised crime. This project focuses on strategic activities which will primarily secure the logistic platform necessary for future operational activities through joint investigation teams.

Co-operation in the area of trafficking in persons

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The Government Office for Human Rights prepared an annual report on the Implementation of the National Plan for the Suppression of Trafficking in Persons 2010. This document contains all the relevant statistical information regarding investigations and the prosecution and sanctioning of the perpetrators of trafficking in persons. The report was accepted by the Croatian Government on 14 July 2011. The adopted document was published on the website of the Government Office for Human Rights

3.24.6. Terrorism On 28 April 2011, the Croatian Government adopted the Action Plan for the Prevention and Suppression of Terrorism. In 2012, training will continue for police officers and other civil servants in the fight against terrorism in the form of various seminars, courses, workshops and through the co-operation and exchange of experience with other services and institutions in the country and abroad. It is also planned to implement supplementary professional training for police officers concerning anti-explosion protection from the level of the MI to police administrations in the area of the fight against terrorism, and notably in the area of procedures related to improvised explosive devices, the carrying out of preventive anti-explosion examinations and other procedures. The Ministry of the Interior will continue to actively participate in the implementation of the IPA 2008 project ―Police Co-operation: the Fight against Organised Crime‖, especially in the areas of drug trafficking and prevention of terrorism ―DET – ILECUs II‖. This ministry, in the status of EU partner, will be responsible for the component of the prevention of terrorism.

3.24.7. Co-operation in the area of drugs The Act on Amendments to the Act on the Suppression of Narcotic Drugs Abuse was adopted on 8 July 2011 (OG 84/11). The Act provides the legal basis for the functioning of the National Contact Point for the submission of samples of controlled substances. The Act meets the requirement of Article 75 of the Convention implementing the Schengen Agreement. In addition, amendments have been made to the Criminal Act, incriminating the abuse of controlled substances, i.e. doping, in sports. Final activities in the adoption of the new National Strategy for Combating Narcotic Drugs Abuse in the Republic of Croatia 2012-2017 and the Action Plan for Combating Narcotic Drugs Abuse in the Republic of Croatia 2012-2014 are being co-ordinated by the Government Office for Combating Narcotic Drugs Abuse. Final drafts of the national strategic documents will be submitted for the official opinion of competent authorities upon the adoption of the State Budget for the Republic of Croatia for 2012. In this way, the procedure will be initiated for the documents to be adopted by the Croatian Government and approved by the Croatian Parliament.

3.24.8. Judicial co-operation in civil and criminal matters As of 30 March 2011, the Republic of Croatia has been participating in the work of the European Judicial Network in civil and commercial matters as an observer, in accordance with Decision No. 568/2009/EC. From 31 August to 2 September 2011, a three-day seminar organised by TAIEX was held in Valbandon. The topic of the seminar was international judicial co-operation in criminal matters and was attended by experts, judges, prosecutors and employees of the ministries of justice from Hungary, Poland, Slovakia and the Czech Republic. In 2012, it is planned to submit for Government procedure the Act on the Legal Consequences of Conviction, Criminal Records and Rehabilitation for the purpose of alignment with Council Framework Decision 2009/315/JHA of 26 February 2009 on the organisation and content of the exchange of information extracted from the criminal record between Member States, and Council Framework Decision 2009/316/JHA of 6 April 2009 on the establishment of the European Criminal Records Information System (ECRIS) in application of Article 11 of Framework Decision 2009/315/JHA.

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3.24.9. Customs co-operation Activities planned for 2012 will mostly pertain to strengthening administrative capacities in terms of the training and professional development of customs officers authorised to exercise the powers laid down in the Customs Service Act (OG 83/09). The aim is to ensure full functionality of the mobile units in the entire customs territory of the Republic of Croatia with a view to preventing and detecting breaches of customs and other regulations, in particular with the use of the technical equipment available.

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3.24.1. Asylum

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline TRAINING MATRA Project ―Strengthening administrative capacities for an efficient implementation of the Dublin procedure and access to MI 4th quarter 2012 - EURODAC―

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3.24.2. Migration

Legislative measures b) Subordinate legislation

Legal basis for the To be submitted Competent adoption of To be aligned with the following acts No. Subordinate legislation for Government authority subordinate of the acquis procedure legislation Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals who are long-term residents 32003L0109

Council Directive 2004/81/EC of 29 April 2004 on the stay permit issued to third- country nationals who are victims of trafficking in human beings or who have been the subject of an action to facilitate illegal immigration, who cooperate with the competent authorities Ordinance on the status and work of aliens in the Republic of 1. MI Aliens Act (OG 130/11) 32004L0081 1st quarter 2012 Croatia

Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification 32003L0086

Council Directive 2004/114/EC of 13 December 2004 on the conditions of admission of third-country nationals for the purposes of studies, pupil exchange, unremunerated training or voluntary service 32004L0114

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Council Directive 2003/86/EC of 22 2. Regulation on the manner of calculation and the amount of September 2003 on the right to family 2. MI Aliens Act (OG 130/11) 1st quarter 2012 resources for the maintenance of an alien in the Republic of Croatia reunification 32003L0086 Council Directive 2004/114/EC of 13 December 2004 on the conditions of 3. Ordinance on the manner of assessing conditions for issuing a admission of third-country nationals for 3. temporary stay permit for the purpose of secondary school MSES, MI Aliens Act (OG 130/11) the purposes of studies, pupil exchange, 2nd quarter 2012 education unremunerated training or voluntary service 32004L0114 Council Directive 2005/71/EC of 12 October 2005 on a specific procedure for 4. Ordinance on the manner of assessing conditions for issuing MSES, MI Aliens Act (OG 130/11) admitting third-country nationals for the 2nd quarter 2012 4. temporary stay permits for the purpose of scientific research purposes of scientific research 32005L0071 Council Directive 2009/50/EC of 25 May 2009 on the conditions of entry and 5. Ordinance on the stay and work of highly qualified third-country residence of third-country nationals for 5. MI Aliens Act (OG 130/11) 4th quarter 2012 nationals in the Republic of Croatia the purposes of highly qualified employment 32009L0050 Directive 2004/38/EC of the European Parliament and of the Council of 29 April 6. Ordinance on the manner of assessing conditions for entry and 2004 on the right of citizens of the Union stay in the Republic of Croatia for nationals of the European 6. MI Aliens Act (OG 130/11) and their family members to move and 4th quarter 2012 Economic Area member states and their family members, and for reside freely within the territory of the family members of Croatian nationals Member States 32004L0038

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3.24.3. Visas

Legislative measures b) Subordinate legislation

Legal basis for the To be submitted Competent No. Subordinate legislation adoption of subordinate To be aligned with the following acts of the acquis for Government authority legislation procedure Council Regulation (EC) No. 539/2001 of 15 March 2001 listing the third countries whose nationals must be in possession of visas 1. Regulation on the visa system MFEA Aliens Act (OG 130/11) when crossing the external borders and those whose nationals are 2nd quarter 2012 exempt from that requirement, as amended 32001R0539 Regulation (EC) No. 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) 32009R0810 Regulation on the Croatian Visa 2. MFEA Aliens Act (OG 130/11) 3rd quarter 2012 Information System Regulation (EC) No. 767/2008 of the European Parliament and of the Council of 9 July 2008 concerning the Visa Information System (VIS) and the exchange of data between Member States on short- stay visas (VIS Regulation) 32008R0767 Regulation (EC) No. 810/2009 of the European Parliament and of 3. Ordinance on visas MFEA Aliens Act (OG 130/11) the Council of 13 July 2009 establishing a Community Code on 2nd quarter 2012 Visas (Visa Code) 32009R0810 Council Regulation (EC) No. 1683/95 of 29 May 1995 laying down a uniform format for visas, as amended 31995R1683 4. Ordinance on visa formats MFEA Aliens Act (OG 130/11) 3rd quarter 2012 Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) 260

32009R0810

Administrative capacity

Adoption / Measure Competent authority implementation Planned budgetary funds deadline OTHER IPA 2010 Project ―Support to the National Visa System‖ MFEA 2012 IPA

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3.24.4. Border management and Schengen

Legislative measures b) Subordinate legislation To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of the No. Subordinate legislation Government authority subordinate legislation acquis procedure Ordinance on amendments to the Regulation (EC) No. 562/2006 of the State Border Protection Act (OG Ordinance on the procedure for European Parliament and of the Council of 15 1. MI 173/03, 141/06, 8/07 – corr., 1st quarter 2012 carrying out state border March 2006 (Schengen Borders Code) 40/07, 146/08, 130/11) surveillance 32006R0562

Ordinance on the content, users of State Border Protection Act (OG Regulation (EC) No. 562/2006 of the operative databases, and the 2. MI 173/03, 141/06, 8/07 – corr., European Parliament and of the Council of 15 4th quarter 2012 periods of keeping of data in these 40/07, 146/08, 130/11) March 2006 (Schengen Borders Code) databases

c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

1. Schengen Action Plan MI 1st quarter 2012 2. Integrated Border Management Action Plan – updating MI 1st quarter 2012

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Administrative capacity

Adoption / implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Deployment of approximately 450 new police officers in the MI 2012 HRK 25,200,000.00 border police TECHNICAL AND IT EQUIPMENT Procurement of vessels for the maritime police (one type A and MI 1st quarter 2012 HRK 21,661,000.00 one type B vessel) Procurement of equipment according to the Action Plan for the Implementation of the Integrated Border Management Strategy MI 4th quarter 2012 HRK 58,000,000.00 (from State Budget funds) Completion of the installation of the state border surveillance system at the border between the Republic of Croatia and MI 2nd quarter 2012 HRK 3,518,013.00 Bosnia and Herzegovina in the territories of the City of Metković and the bays of Neum and Mali Ston Establishment of part of phase II of the National Maritime Centre MI 4th quarter 2012 HRK 20,000,000.00 for Information Collection Procurement of vessels for the maritime police (one type A and one type B vessel) through the IPA 2008 Project ―Blue Border MI 4th quarter 2012 HRK 8,500,000.00 Surveillance, phase II‖ (total Project budget EUR 4.6 million) Full functionality of the National Border Management Information MI 4th quarter 2012 State Budget (regular activities) System (internal and external border) Procurement of equipment through the IPA 2009 Project ―Modernisation of State Border Control‖ (10 manual and remote controlled thermal vision cameras, 12 manual thermal vision MI 4th quarter 2012 HRK 2, 700, 000.00 cameras, 200 Docu-Test devices for checking documents, and 15 Docu-Box devices for checking documents) (total Project budget EUR 1.46 million) Procurement of equipment through the IPA 2010 Project ―Integrated Border Management‖ (15 manual thermal vision cameras, 15 Docu-Box devices for checking documents, 10 MI 4th quarter 2012 HRK 8,950,000.00 explosive detectors, 115 vehicles and two type C vessels for state border surveillance on rivers) (total Project budget EUR 4.78 million) EDUCATION AND TRAINING

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Implementation of specialist training for approximately 800 MI 4th quarter 2012 HRK 5,000,000.00 border police officers Training of trainers and border police officers on the following topics: EU and Schengen law, detection of forged documents, suppression of smuggling of vehicles, second line of control, risk MI 4th quarter 2012 HRK 1,000,000.00 analysis and suppression of human trafficking (approx. 3,000 police officers) Training of police officers working on the National Border MI 4th quarter 2012 State Budget (regular activities) Management Information System Following the installation of the NBMIS, 80 multipliers will receive training and continue to provide field training to border MI 4th quarter 2012 State Budget (regular activities) police officers

3.24.5. Police co-operation and the fight against organised crime

Administrative capacity

Adoption / implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES 15 police officers for the SIRENE Office MI 4th quarter 2012 HRK 2,040,000.00 EDUCATION AND TRAINING 15 police officers for the Croatian SIRENE Office MI 1st – 4th quarter 2012 HRK 39,000.00 TECHNICAL AND IT EQUIPMENT 15 police officers for the Croatian SIRENE Officer MI 1st – 4th quarter 2012 HRK 150,000.00

3.24.7. Co-operation in the area of drugs

Legislative measures c) Strategies and Action Plans or Programmes

264

No. Measure Competent authority To be submitted for Government procedure

National Strategy for Combating Narcotic Drugs Abuse in the 1. OCNDA 2012 Republic of Croatia 2012 – 2017 Action Plan for Combating Narcotic Drugs Abuse in the 2. OCNDA 2012 Republic of Croatia 2012 – 2014

Administrative capacity

Adoption / implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of two new employees at the Government Office for OCNDA 1st/2nd quarter 2012 HRK 160,500.00 Combating Narcotic Drugs Abuse

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3.24.8. Judicial co-operation in criminal matters

Legislative measures a) Legislative measures To be submitted for Competent No. Measure To be aligned with the following acts of the acquis Government authority procedure

Council Framework Decision 2009/315/JHA of 26 February 2009 on the organisation and content of the exchange of information extracted from the criminal record between Member States 32009F0315 Act on Legal Consequences of Conviction, Criminal 1. MJ 4th quarter 2012 Records and Rehabilitation Council Decision 2009/316/JHA of 6 April 2009 on the establishment of the European Criminal Records Information System (ECRIS) in application of Article 11 of Framework Decision 2009/315/JHA 32009F0316

3.24.9. Customs co-operation

Administrative capacity

Adoption / implementation Measure Competent authority Planned budgetary funds deadline EDUCATION AND TRAINING Training of authorised customs officers in the exercise of powers in the implementation of measures of customs and excise - MF – Customs Administration 2012 control and checks in accordance with the annual Training Plan of the Customs Administration for 2012

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3.25. SCIENCE AND RESEARCH

Legislative regulations on science have been fully aligned with the acquis through previous amendments made under the National Programme for the Accession of the Republic of Croatia to the EU, Chapter 25: Science and Research. Activities foreseen for 2012 include the development of the new Science and Technology Strategy of the Republic of Croatia and the Research Infrastructure Roadmap, as part of the Second Croatian Science and Technology Project (STP II), which is to be financed by a World Bank loan. The project will continue the activities initiated in the first Science and Technology Project (STP), which ended on 31 May 2011. These include, among other things, the implementation of programmes aimed at supporting innovative entrepreneurship, the mobility of scientists and co-operation with the expatriate scientific community. New activities will be carried out with the aim of strengthening the capacity of the Republic of Croatia for the use of EU funds upon accession to the EU, with special emphasis on the scientific community and the Horizon 2020 financial framework, and with the aim of the successful integration of the Croatian science system, i.e. Croatian scientists, into the European Research Area. Implementation of measures to encourage the mobility of researchers will continue in accordance with the Action Plan for the Mobility of Researchers 2011 – 2012, as will the further strengthening of capacity for the implementation of the Seventh Framework Programme in accordance with the updated Action Plan to Strengthen Absorption Capacity for FP7 (planned to be adopted in early 2012), and for participation in the upcoming Horizon 2020 framework. The Ministry of Science, Education and Sports will continue efforts to increase administrative capacity for the implementation of the pre-accession programmes, and will continue active preparation for the use of Structural Funds upon accession to the EU. To this end, four new employees were recruited in 2011, and training of all employees engaged in the implementation of EU funds is carried out on an ongoing basis. The Business Innovation Agency of the Republic of Croatia was established on 29 March 2011 pursuant to the Regulation establishing the Agency, which was adopted by the Government of the Republic of Croatia on 11 November 2010. The Agency was established with the aim of taking over the rights and obligations of the Business Innovation Centre of Croatia (BICRO d.o.o.). In addition to the continuous efforts to shape the legislative framework, the following implementation measures are planned for 2012:  Using the Instrument for Pre-Accession Assistance, planning and developing projects to enhance the scientific and technology infrastructure and strengthen research capacity, and encouraging technology transfer and the commercial application of research findings in public scientific and research institutes.  Accumulating high quality projects aimed at strengthening human potential in science, ready to be submitted for financing from the Structural Funds immediately upon Croatia's accession to the EU.  Continuously creating and strengthening human potential in science through the research assistant programme.  Encouraging concentration of scientific potential by developing the national research infrastructure plan and forming ties with European research infrastructures.  Carrying out further measures to remove obstacles to the mobility of researchers, and to increase international and intersectoral mobility, in accordance with the Action Plan for the Mobility of Researchers 2011 – 2012.

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 Strengthening capacity for drawing funds from the Framework Programme directly into the science system through the Action Plan to Strengthen Absorption Capacity for FP7 2012 – 2013.  Through the Second Croatian Science and Technology Project, establishing the required strategic framework for further development of the science and economic system, and supporting the technology transfer offices, with the aim of strengthening the economic and science system for the more successful absorption of funds which will become available upon accession to the EU. Special emphasis will be placed on the absorption of funds directly into the science system, i.e. strengthening the absorption capacity for FP7 and Horizon 2020.

c) Strategies and Action Plans

Competent No. Measure To be submitted for Government procedure authority 1. Strategic document "Public Scientific Institutes Network" MSES 3rd quarter 2012 2. Science and Technology Strategy of the Republic of Croatia MSES 4th quarter 2012 3. Action Plan to Strengthen Absorption Capacity for FP7 2012 – 2013 MSES 2nd quarter 2012 4. Science and Society Action Plan MSES 2nd quarter 2012

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline EDUCATION AND TRAINING Training of employees for the implementation of projects financed from MSES continuous Budgetary funds will not be used the IPA pre-accession programme and structural funds in the future Continuous training of the national contact persons for the Seventh MSES continuous Budgetary funds will not be used Framework Programme for Research and Technological Development

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3.26. EDUCATION AND CULTURE

3.26.1. Community Programmes in the fields of Education and Youth Policy In the course of 2012, the Agency for Mobility and EU Programmes, the accredited national agency for the implementation of the Lifelong Learning Programme and the Youth in Action Programme, will continue to strengthen its capacity to ensure optimum use of funds. The Ministry of Science, Education and Sport, as the national body in charge of the Lifelong Learning Programme and the Ministry of Social Welfare Policy and Youth as the national body in charge of the Youth in Action Programme, will continue to implement secondary control over the Agency and issue the annual Warranty Declaration to the European Commission (in April 2012), providing guarantees for the sound management of Community funds. Representatives of the responsible national bodies will continue to participate in the work of the Committee for the Lifelong Learning Programme and the Youth in Action Programme in the status of observers.

3.26.2. Activities aimed at the integration of the Croatian education system into the European area of lifelong learning The Working Group on removing obstacles to mobility in the education system and on increasing international mobility, which was established in the Ministry of Science, Education and Sports as an inter-sector group to propose changes to legislative regulations and improvements to administrative procedures, and to encourage various activities which contribute to increased international mobility in education, will implement activities in accordance with the Action Plan to Remove Obstacles and to Increase International Mobility in Education for the period 2010 – 2102, which was adopted at the session of the Croatian Government on 30 September 2010. The first report on the activities of the Working Group will be drawn up in January 2012. Representatives of the Ministry of Science, Education and Sports participate in the activities of the European Commission Coordination Group "Education and Training 2020" and in the following individual working groups: Key Competences; Professional Development of Teachers; Languages and Employment; Modernisation of Higher Education; Entrepreneurship Education; Professional Development of VET Trainers; Quality Assessment in Adult Learning; Financing of Adult Learning; ICTs and Education; Early School Leaving. Representatives of the Ministry of Science, Education and Sports and the Agency for Vocational and Adult Education participate in activities of a working group to support the implementation of ECVET (the European Credit system for Vocational Education and Training) which was established by the Commission in 2010. In accordance with the action plans for the implementation of the Strategy for Vocational Education Development 2008 – 2013, the Agency for Vocational and Adult Education is responsible for implementing ECVET credits in the development of vocational qualifications and new vocational curricula. New vocational curricula with credits will be continuously introduced in the Croatian vocational education system, and by the academic year 2013/2014 all vocational curricula in the Republic of Croatia will have a credits system. Representatives of the Ministry of Science, Education and Sports continue to participate in activities of the Bologna Follow-Up Group (BFUG) and its working groups: Mobility, Transparency, Social Dimension of Higher Education, and International Policy Network. Following the adoption of the Act on the Croatian Qualifications Framework, it is planned to finalise the Report on the Alignment of the Croatian Qualifications Framework with the European Qualifications Framework (EQF) and the Qualifications Framework of the European Higher Education Area (QF-EHEA), the so-called Referencing Report, which

269 is being drafted by members of the Expert Team supporting the Commission for the Implementation of the Croatian Qualifications Framework, assisted by international experts. The National Report will be drawn up in 2012. 3.26.3. Reform of the education and training system Development and implementation of the Croatian Qualifications Framework (CROQF), an essential instrument in the reform of the education system will continue. In 2012, the legislative framework for the development and implementation of the CROQF will be adopted, as will the required implementing regulations. CROQF allows for better co- ordination and integration of all participants in the qualifications system, taking into consideration the demands of the labour market, and the needs of the individual and of society. Furthermore, qualification levels are determined in accordance with the prescribed descriptors for learning outcomes, and the legislative basis is established for referencing CROQF levels to EQF and QF-EHEA levels. In addition to the learning outcomes approach, the reform also includes transparent criteria and procedures for verification, evaluation and entry into the CROQF Register. General compulsory elementary and secondary education In accordance with the provisions of the Elementary and Secondary Education Act (OG 87/08, 86/09, 92/10, 105/10-corr. and 90/11) and the National Pedagogic Elementary Education Standard (OG 63/08 and 90/10), new implementing regulations are to be drafted and adopted, and initial education, professional training, development and licensing is planned for teachers with regard to students with special needs. In 2012, the following measures are planned in the field of general elementary education: Legislative measures:  Adoption of the Ordinance on the method of preparing trainee teachers for independent work during their training period and monitoring their performance, and the content, method and conditions for taking the final professional examination;  Adoption of the Ordinance on compulsory weekly working hours for teachers and expert assistants in elementary schools;  Adoption of the Ordinance on the method of conduct of teachers, expert assistants and head teachers when carrying out measures to protect students' rights and notifying any breach of those rights to competent authorities;  Adoption of the Ordinance on the classification of learning difficulties and the appropriate types of assistance to pupils with learning difficulties in elementary and secondary schools;  Adoption of the Ordinance on the procedure for identifying gifted pupils and the conditions for working with gifted pupils. Implementing measures:  Monitoring the implementation of the National Pedagogic Standard in accordance with the prescribed coefficients;  Continuing efforts on developing a more efficient Register of institutions and results of educational work of students and staff (electronic register, e-register) in accordance with the Ordinance on the common electronic register of elementary education institutions (ZEUS);  Introducing conditions for the single-shift and double-shift operation of elementary schools in accordance with the feasibility coefficient of the National Pedagogic Elementary Education Standard;

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 Implementing the National Pedagogic Elementary Education Standard in accordance with the coefficient of feasibility;  Further developing information and communication skills, competences in the first language and in foreign languages, mathematical and science literacy, and technical, entrepreneurship, and social skills in elementary schools;  Further developing the quality assurance system – self-evaluation, external evaluation and professional development of pre-school teachers, head teachers, teachers and expert assistants at national, regional and local levels;  Continuing the collection and processing of data on the results of educational work, and of students and staff in the elementary education information system (electronic register);  Developing the methodology for direct progression from elementary to secondary school, the PIRLS knowledge assessment which enables an additional comparison to be made of Croatian learning outcomes on the European scale, and instruments to encourage the self-evaluation of kindergartens and elementary schools;  Continuing the collection and processing of data using the eForm for kindergartens, and the elementary education information system;  Creating visual representations of the Croatian educational institutions for the MSES website.

In 2012, the following measures are planned in the field of secondary education: Legislative measures:  Adoption of the improved Decision on the elements and criteria for the selection of candidates for admission to secondary schools 2012 – 2013;  Adoption of the Ordinance on professional advancement of teachers;  Adoption of Amendments to the Elementary and Secondary Education Act (87/2008, 86/2009, 92/2010, 105/2010). Implementing measures: In line with the obligations arising from the National Curriculum for General Compulsory Elementary and Secondary Education, which was adopted by the Minister of Science, Education and Sports, the reform of the education system will continue in 2012 through preparation of a basic set of documents for the curricular approach to the education system:  Drawing up subject curricula – syllabi for secondary education;  Strengthening competences through professional training of workers in all three pre-tertiary education levels for the curricular approach;  Developing special education programmes for students with severe developmental disabilities;  Further developing the quality assurance system through self-evaluation of schools, implementation of state matriculation examinations, national examinations, and other forms of external evaluation, and the professional development of teachers, head teachers and expert assistants in the field of educational assessment, grading and evaluation of students' progress;

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 Announcing the call for applications to the grant scheme entitled "Integration of Underprivileged Groups into the Regular Education System", aimed at supporting formal education institutions in order to increase the number of underprivileged persons in the regular education system; supporting projects aimed at improving the quality of education of underprivileged persons, and projects that encourage the social inclusion of underprivileged persons in educational institutions;  Announcing the call for applications to the grant scheme entitled "Further Development and Implementation of the Croatian Qualifications Framework", aimed at development and modernisation of the system and qualifications in general and/or higher education; development of curricula/programmes based on learning outcomes, including course programmes based on proper use of ECTS and learning outcomes, and strengthening capacity for the implementation of pupil/student- oriented learning;  Introducing electronic applications and admissions to secondary schools: in 2011, the Ministry launched a project for the establishment of an information system for applications and admissions to secondary schools with the aim of enhancing the quality of the admission process, creating more favourable prerequisites after the completion of elementary education, optimising the administrative tasks related to applicant data, ensuring more efficient access to data, and a more transparent and a significantly more advanced method of use of the data. The system will allow for the electronic management of data and will be used as a central system for admission to educational institutions and educational programmes, improving the overall integration of elementary and secondary education. The model of the information system for applications and admissions to secondary schools will be modelled on the national information system for admissions to higher education institutions, which has proven to be very successful in applications for state matriculation examinations and degree programmes. In 2012, the following measures are planned in the field of vocational education:  Under the IPA project entitled "Strengthening of the Institutional Framework for Development of VET Occupational Standards, Qualifications and Curricula", a methodology for the development of VET occupational standards, qualifications and curricula was established through the co-operation of the Agency and international and local experts. Tools were also developed for qualification planning – sector profiles, that is, comprehensive analytical bases that combine for the first time macroeconomic indicators and data from the survey on competences required by employers, which thereby provide the basis for planning the development of the educational system and the creation of education policies. As part of this project, 26 curricula were also developed in 13 sectors, and an action plan was prepared for the comprehensive modernisation of VET qualifications/curricula. The development of occupational standards, qualifications and curricula will continue according to the new methodology;  Development of the quality assurance system in the VET system will continue. The self-evaluation of vocational schools was strengthened in accordance with the self- evaluation methodology developed in 20 pilot schools as part of the project "Vocational Education and Training Quality Assurance Development in Croatia". Preparation of the framework for the quality assurance system and a single self-evaluation methodology is underway, and will be applied in vocational schools in the course of 2012;  Announcing the call for applications to the grant scheme entitled "Modernisation of School Curricula in VET Schools in Line with the Changing Needs of the Labour Market / Economy", aimed at introducing contemporary and innovative contents/features into VET schools within the existing VET system, in line with the Vocational Education Act and the Elementary and Secondary Education Act, with a view to ensuring their labour market relevance / adaptability, raising their capacity for the provision of contemporary school-based practical training, as well as meeting the needs of a knowledge-based economy;  Announcing the call for tenders for the service contract entitled "Strengthening of the Institutional Framework for Professional Development of Vocational Subject Teachers", to be implemented with the aim of improving the system of professional development of VET teachers;  Further strengthening the capacity of sector councils, which contribute efficiently to the development of VET qualifications and curricula. 272

In 2012, the following measures are planned in the field of higher education:  Continuing the re-accreditation of higher education institutions, and external independent periodical assessment of the higher education quality assurance system by the Agency for Science and Higher Education;  Continuing co-operation with the World Bank on building capacity for the introduction of financing based on programme contracts. In September 2011, the Rectors‘ Conference approved the Proposal plan for the implementation of pilot projects for programme contracts in Croatia;  Implementing the annual plan of the Croatian expert group for the Bologna process. The group was established to support the implementation of the Bologna process in the Republic of Croatia, provide information on the Bologna process and EU initiatives and programmes in the field of higher education, advise the creators of public policies, higher education institutions and other participants on the proper implementation of the Bologna process, and to encourage and lead national dialogue on the implementation of the Bologna process;  Start implementing the IPA project of the National Information System for Higher Education and Science, as the basis for the integration of existing information and data systems. Implementation of the System will also improve the analysis of available data;  Drawing up the national strategy for the development of the higher education system by 2020. In 2012, the following measures are planned in the field of adult education:  Amendments to the Adult Education Act and implementing regulations;  Announcing the call for applications to the grant scheme entitled "Strengthening the Capacities of Adult Education Institutions". Reports for all counties of the Republic of Croatia (21 reports in total), containing relevant information on the status in the adult education sector in the context of local market needs, will serve as the basis for revising existing and/or creating new short programmes. Newly developed guidelines/methodologies will be used to improve the quality and modify the existing programmes or to draft new programmes;  Further implementing the training of adult education teachers/trainers for the professional development of adults, developed as part of the CARDS 2004 project "Adult Learning";  Analysing the implementation of the project "A Decade of Literacy" which will end in 2012, and developing a proposal for the continued co-financing of adult education from EU funds. Education of the children of migrants Pursuant to Article 43 of the Elementary and Secondary Education Act (OG 87/08, 86/09, 92/10, 105/10-corr. and 90/11), preparatory and supplementary classes must be organised for students who commence or continue their education in the Republic of Croatia. The Article stipulates that schools must provide special assistance to children who are entitled to education in the Republic of Croatia but have no knowledge or have insufficient knowledge of the Croatian language. This provision also applies to children who must attend compulsory education pursuant to the Act and who are resident in the territory of the Republic of Croatia and are dependants of a worker who is a citizen of the EU and carries on or has carried on an activity as an employed person in the territory of the Republic of Croatia. The Ordinance on the procedure for assessment of the psychological and physical condition of children/students and members of the expert commission provides for the assessment of knowledge of the Croatian language through a standardised test for children/pupils who have no knowledge or have insufficient knowledge of the Croatian language, and the appropriate form of assistance which will facilitate their inclusion in the education system, that is, acquiring competence in the Croatian language. The assessment of knowledge is to be carried out not only on 273 admission to the first year of elementary school, but also whenever required. At the beginning of the school year 2011/2012, the first tests were administered to pupils who have no knowledge or have insufficient knowledge of the Croatian language with the aim of their better inclusion in the elementary education system. On the basis of the above, a Preparatory Classes Programme will be developed, as will an Ordinance on the method of performing direct educational work, and measures for the training of teachers who perform direct educational work with these students.

Supporting the development of the education system through EU funds Support will continue in 2012 for the development of the education system through the implementation of projects from the programme period 2010 – 2011 of IPA programme component IV, "Development of Human Potential". In the programme period 2010 – 2011, support for the development of the education system expanded to all levels of the education system (from the pre-school to the higher education system). Three calls for applications to grant schemes and one call for tenders for a service contract were announced, and one more call for applications to a grant scheme, two for service contracts and two for framework contracts are under preparation. As regards the new calls for applications to grant schemes, to a total value of approx. EUR 11 million, support is planned for projects which will:  encourage equal possibilities of access to education for underprivileged persons (pre-school children/pupils/students with learning difficulties, Roma and other minorities);  strengthen the capacities of schools and staff to encourage social inclusion and innovative projects promoting social inclusion in education;  develop new qualifications in general and higher education, through projects which will develop curricula based on learning outcomes in general and higher education, and projects which will develop new teaching materials and evaluation methods and instruments;  develop new or improve existing post-secondary adult education programmes. In addition, planning of projects and the preparation of project documentation for the programme period 2012 – 2013 is underway, and as part of the preparation for the use of the European Social Fund, MSES is preparing sections of strategic documents in the education sector (National Strategic Reference Framework and the Operative programme "Development of Human Potential") and a store of project proposals in the field of education to the total amount of approx. EUR 130 million.

Legislative activities b) Subordinate legislation

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To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No Subordinate legislation Government authority subordinate legislation the acquis procedure

Ordinance on the method of performing 1. MSES Elementary and Secondary Education Act Directive 77/486/EEC on the education of the 4th quarter 2012 direct educational work children of migrant workers c) Strategies and Action Plans or Programmes

Competent No Measure To be submitted for Government procedure authority

National guidelines for establishing lifelong learning programmes at higher 1. MSES 3rd quarter 2012 education institutions

National strategy for the development of the higher education system (aligned 2. MSES 4th quarter 2012 with the priorities for science and other levels of education)

Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline

RECRUITMENT OF NEW EMPLOYEES

2 employees in the Higher Education Directorate MSES 4th quarter 2012 HRK 180,000.00

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2 employees in the Secondary Education Directorate MSES 4th quarter 2012 HRK 180,000.00

EDUCATION AND TRAINING

Education and training of employees is carried out on an ongoing basis Agency for Mobility and EU in accordance with the Agency‘s annual Work Plan and Staff Training 2011 Programmes Plan

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3.27. ENVIRONMENT

3.27.1. Horizontal legislation Based on the Sustainable Development Strategy for an enlarged EU from 2006, the Sustainable Development Strategy of the Republic of Croatia (OG 30/09) was drafted and sets the same requirements for sustainable development. The Sustainable Development Strategy will be implemented through action plans that will be prepared by the time the Republic of Croatia accedes to the EU. In 2011, the ministry competent for environmental protection initiated the process of drafting four action plans, in co-operation with other state administration bodies. The Action Plan on Education for Sustainable Development was adopted by the Government of the Republic of Croatia in April 2011. It was prepared in co-operation with all government departments in a multi-stakeholder process. The Sustainable Production and Consumption Action Plan is in the final stage of consultations for the purpose of its adoption by the Government of the Republic of Croatia in the first half of 2012. In 2012, the Ministry of Environmental and Nature Protection (MENP) plans to finalize the process of drafting the remaining two action plans: the Environmental Protection Action Plan of the Republic of Croatia and the Action Plan on Protection of the Adriatic Sea, Coast and Islands. The listed action plans will contain measures and activities related to the acquis in the part of EU policies (soft acquis) and in the part of secondary sources of the acquis. Further employment will depend on budgetary funds that will be available after adopting the final budget for 2012.

Croatian Environment Agency - CEA In accordance with the Environmental Protection Act (OG 110/07), in 2012 CEA will continue its activities on the establishment, management and maintenance of the Environmental Information System (EIS) through inclusion of CEA‘s existing databases and partner institutions into a single information system according to the information system standards of the European Environment Agency – Shared Environmental Information System (SEIS). The activities will be implemented in accordance with the EIS Management Programme 2009-2012. The same document is planned to be prepared for the period 2013-2016 as well. Considering the large number of databases and valuable data available to CEA (currently 44 databases) and with the purpose of improving their protection and management, implementation and certification is ongoing for the information security management system according to the standard ISO 27001:2005, which is integrated with the existing quality and environment management systems under ISO 9001:2008 and ISO 14001:2005 standards into a single quality, environment and information security management system. In 2011, pursuant to the Environmental Protection Act (OG 110/07), the National List of Indicators (NLI) was reviewed and its publication in the Official Gazette is expected in 2012 after final co-ordination. The NLI contains 245 data tables for drafting indicators for the purpose of monitoring environmental status and preparing the State of the Environment Report at the national level. The NLI is also a basis for upgrading EIS. In 2012, CEA will continue to strengthen its administrative capacities not only through increasing the number of employees but through their permanent training and education. In line with the approved budgetary funds, CEA plans to increase the number of its employees from the current 52 employees, plus four on a fixed term contract, to the planned 68 at the end of 2012. CEA employees are participating in the CEA Employee Education and Training Plan, which defines their permanent education and training for performing regular CEA activities. Professional training and capacity strengthening will also continue through participation of CEA and CEA employees in international projects (programmes IPA, UNEP/GEF, G2G, etc.) and through TAIEX technical assistance mechanisms. In 2012, CEA will also continue to be the main beneficiary in two projects (UNEP/GEF Data Flow System and Indicators to Enhance Integrated Management of Global Environmental Issues in Croatia and G2G Towards CAFE Directive Implementation in Croatia), and a participant in nine projects related to different topic areas for which the following implementing authorities were defined: Ministry of

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Environmental Protection, Physical Planning and Construction (MEPPPC), State Institute for Nature Protection (SINP), Ministry of the Sea, Transport and Infrastructure (MSTI) and Ministry of Health and Social Welfare (MHSW). Two new projects were approved through the G2G programmes (bilateral co-operation with the Netherlands) – topic area ―water reporting‖ and IPA I – topic area ―waste reporting‖, in which CEA will be the main beneficiary. CEA will participate in five projects, currently in preparation. In co-operation with Austrian partners, CEA has recommended its employees for participation in the international project for assistance to third countries (project with the goal of establishing a GHG register in Bosnia and Herzegovina – FP7-ENV-2012 UNDP programme). In the course of 2012, it is planned to finalize activities on the establishment of the CEA reference centre (Environmental Protection Act, OG 110/07) for the sea and to intensify activities on establishment of reference centres for other topic areas. In addition to regular maintenance, updating and upgrading of databases within the Biodiversity Information System (BIS), CEA will prepare or participate in preparing five reports and data sets (in co-operation with MENP) for the needs of international EEA/EC reporting and one report for UNEP. Access to environmental information and public participation Considering that legislation in this field is aligned with the acquis, activities in 2012 are aimed at strengthening capacities for implementation, with an emphasis on the local and regional levels. Pursuant to the Right to Access Information Act (OG 172/03, OG 144/10, OG 77/11) and Environmental Protection Act (OG 110/07), and in order to strengthen implementation of the Aarhus Convention, CEA activities will continue to include public communication through the work of the Information Centre, redesigned and improved CEA website, answers to written inquiries or inquiries made by phone and e-mail and through the functioning of the Help Desk of the Environmental Pollution Registry (EPR). In addition to published reports on individual environmental components, publications, leaflets and regular CEA publications (The Environment in Your Pocket I – 2012, Croatian and English version, EIS Catalogue) will be published or available in electronic form. Environmental impact assessment and strategic environmental assessment In 2012, efforts will be invested in training regional and local authorities with regard to implementing regulations related to carrying out the procedure of strategic environmental assessment of plans and programmes in line with the requirements of Directive 2001/42/EC and good practice of EU Member States. MENP is the main beneficiary of the IPA 2010 technical assistance project ―Strengthening capacities for strategic environmental assessment at the regional and local level‖. Tender documentation was approved by the EU Delegation in September 2011, and the beginning of the project is planned in April 2012. The project purpose is to strengthen capacities for strategic environmental assessment at the regional and local levels. Project activities include training and education of employees of the competent administrative authority for environmental protection and administrative departments in counties and in the City of Zagreb. Training courses will cover the main stages of the SEA process: screening, scoping, review, decision making and public participation. Training would include practical ‗on the job training‘ on actual documents submitted to county administrations for assessment. The project activities will also include developing guidelines and manuals for implementation of the procedure at the regional and local levels (screening, scoping, quality assurance of SEA studies review, decision making and public participation). Climate change Related to climate change at the EU level, a series of regulations have been adopted since June 2008 that regulate the reduction of greenhouse gas emissions in sectors included in the scheme for greenhouse gas emission allowance trading, as well as sectors outside the trading scheme. In the course of preparation of negotiation positions, EU Accession Treaty and further technical consultations with representatives of the European Commission, deadlines and terms for transposing and implementing the acquis were defined for Croatia. It was defined that Croatia has to fully establish the legal and institutional framework in order to be fully able to implement the emissions trading

278 scheme for installations by 1 January 2013 and for aviation activities by 1 January 2014. In addition, for the period 2013–2020 a percentage of reducing greenhouse gas emissions was adopted for sectors not included in the trading scheme (agriculture, services, transport, households, small industrial plants, the Republic of Croatia, +11% in 2020 in relation to the 2005 level). This will be implemented by determining annual allocations which may not be exceeded. The new Air Protection Act, adopted in October 2011 (OG 130/11), contains provisions aligned with the following EU acts:  Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (SL L 275, 25 Oct 2003);  Directive 2004/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol's project mechanisms (SL L 338, 13 Nov 2004);  Directive 2008/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community (SL L 8, 13 Jan 2009);  Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community (SL L 140, 5 Jun 2009);  Directive 2009/30/EC of the European Parliament and of the Council amending Directive 98/70/EC as regards the specification of petrol, diesel and gas-oil and introducing a mechanism to monitor and reduce greenhouse gas emissions and amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC (SL L 140, 5 Jun 2009);  Decision No 406/2009/EC of the European Parliament and of the Council on the effort of Member States to reduce their greenhouse gas emissions to meet the Community‘s greenhouse gas emission reduction commitments up to 2020 (SL L 140, 5 Jun 2009);  Commission Decision 2011/278/EC determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC (SL L 130, 17 May 2011). The Air Protection Act (OG 130/11) also defines the framework for implementation of the following EU acts:  Commission Decision 280/2004/EC concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol (SL L 49, 19 Feb 2004);  Commission Regulation (EU) No. 1031/2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community (SL L 302, 18 Nov 2010);  Commission Decision 2007/589/EC establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC, as last amended by Commission Decision 2011/540/EU (SL L 229, 31 Aug 2007). The Croatian legislation will be fully aligned with the new acquis communautaire in the field of climate protection adopted after June 2008 by the end of 2012. In addition to legislative activities, the focus in 2012 will also be on implementing and monitoring regulations. The following implementing regulations will be adopted in 2012: 279

- Regulation on greenhouse gas emission allowances trading; - Regulation on monitoring greenhouse gas emissions in the Republic of Croatia; - Regulation on the auctioning of greenhouse gas emission allowances; - Ordinance on monitoring greenhouse gas emissions; - Ordinance on the manner of free allocation of greenhouse gas emission allowances; - Ordinance on the keeping of the Union Registry; - Ordinance on monitoring and reporting on greenhouse gas emissions from installations and aircrafts. In 2012, it is planned to draft the Regulation on the geological storage of carbon dioxide, which will partially transpose the following into the national legislation: Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC, and Regulation (EC) No 1013/2006. The Regulation will be adopted by the Government of the Republic of Croatia at the proposal of ministries competent for mining and environmental protection. Considering the extended scope of activities in the field of climate change and ozone layer protection, as a result of intensified activities in this field at the European Union level, additional recruitment will be necessary in 2012, though the exact number of new employees will depend on the allocated budgetary funds. Within CEA activities in the field of climate change and the beginning of greenhouse gas emission trading, regular testing and maintenance of the National Greenhouse Gas Emission Inventory and its final preparations for the beginning of greenhouse gas emission trading within EU ETS (beginning in Croatia on 1 January 2013) will be carried out. The National Inventory Report on Greenhouse Gas Emissions NIR 2012 will be finalized and activities on the preparation of NIR 2013 will commence. Under the UN Framework Convention on Climate Change, activities on establishing the greenhouse gas database INES will begin. Additionally, monitoring of tonne-kilometres of aircraft operators will begin in 2012 for additional aviation activities related to Croatia‘s accession to the EU. For the purpose of preparing for the third period of emissions trading 2013–2020, all plans on monitoring greenhouse gas emissions for installations subject to the trading scheme must be evaluated. Ozone layer protection Related to ozone depleting substances and fluorinated greenhouse gases at the EU level, a series of regulations has been adopted since June 2008, regulating procedures in these matters. The new Air Protection Act, adopted in October 2011 (OG 130/11), contains provisions aligned with the following EU acts:  Regulation (EC) No 1005/2009 of the European Parliament and of the Council on substances that deplete the ozone layer (SL L 286, 31 Oct 2009), and  Regulation (EC) No 842/2006 of the European Parliament and of the Council on certain fluorinated greenhouse gases (SL L 161, 14 Jun 2006). Preparations for the implementation of the acquis communautaire in the field of ozone depleting substances and fluorinated greenhouse gases adopted by the end of 2011 will be finalized by the end of 2012. The following implementing regulations will be adopted in 2012: - Regulation on substances that deplete ozone layer and fluorinated greenhouse gases, and - Ordinance on professional training of persons handling substances that deplete the ozone layer and fluorinated greenhouse gases. 280

Reporting and co-operation with the EEA Pursuant to the Environmental Protection Act (OG 110/07), CEA prepares the quadrennial “State of the Environment Report of the Republic of Croatia”. The report is proposed to the Croatian Government by MENP, and the Government submits it to the Croatian Parliament for adoption. The report contains an overview of the state of the environment and an evaluation of the implementation of environmental protection and sustainable development policy. It is prepared by CEA in co-operation with state administration bodies and public, professional and scientific institutions and civil society organisations. Reports are available to the public. Adoption of the Report for the period 2005–2008 is planned in 2012. Preparations for drafting the Report for the period 2009–2012 are in progress. For the needs of national reporting, the preparation of 20 reports is planned in 2012 (four for air quality, two for installations and pollution sources, 14 for waste and material flows), while for the needs of international reporting 48 reports and data sets are planned for preparation and delivery, subject to available budgetary funds (23 for EEA/ROD, 14 for EC, 11 for UNEP and an additional 27 reports subject to available budgetary funds and human resources). Until Croatia‘s accession to the EU, CEA‘s co-operation with the EEA will continue at the level of ―associated membership‖ within EEA‘s co-operation with Western Balkan countries. After finalizing negotiations with the EU, Croatia was granted (and will use) the right to participate in the work of the EEA‘s Management Board as an ―observing member‖. Co-operation with EEA is comprehensive, meaning that CEA participates in all EEA programmes. In that way, through continuous work on reporting improvements by CEA, Croatia will be fully prepared to participate in the work of EEA as a full member. Civil protection Legislative alignment has been finalized and there are no further legislative activities planned for the purpose of alignment with the acquis communautaire in 2012. INSPIRE The Act on the State Survey and Real Estate Cadastre (OG 16/07, 124/10) transposes the fundamental principles of the INSPIRE Directive. In 2011, preparations were initiated for the transposition of the INSPIRE Directive into the national legislation. The NSDI Council will draft a final Proposal of the Act on Spatial Data Infrastructure, which is expected in the fourth quarter of 2012. The adoption of the Act is planned by the time the Republic of Croatia accedes to the EU. The adoption of the Implementation rules for network services is expected in the first quarter of 2012. At the level of technical specifications, it is planned to adopt the national metadata profile, which is the basis for creating the national metadata catalogue. The Sector for National Spatial Data Infrastructure (NSDI) in the State Geodetic Directorate was officially founded in 2009, and started its operations in 2011. For the purpose of administrative capacity strengthening, the recruitment of four new employees is planned, though the exact number of new employees will depend on the allocated budgetary funds. In order to raise awareness on the importance of NSDI, motivating parties to actively participate in NSDI-related processes, education and information of NSDI parties, organisation of a conference entitled ―3rd Croatian NSDI and INSPIRE Day‖ is planned in 2012. Within the IPA project IPA - INSPIRATION - Spatial Data Infrastructure in the Western Balkans, a regional workshop on the subject of implementation of the INSPIRE Directive is planned for the fourth quarter of 2012.

3.27.2. Air quality The new Air Protection Act, adopted in October 2011 (OG 130/11), contains provisions aligned with the following EU acts:  Directive 2008/50/EC of the European Parliament and of the Council on ambient air quality and cleaner air for Europe (SL L 152, 11 Jun 2008); 281

 Directive 2004/107/EC of the European Parliament and of the Council relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air (SL L 23, 26 Jan 2005);  Directive 2001/81/EC of the European Parliament and of the Council on national emission ceilings for certain atmospheric pollutants (SL L 309, 27 Nov 2001). The Air Protection Act (OG 130/11) also defines the framework for implementation of the following EU acts:  Commission Decision 97/101/EC establishing a reciprocal exchange of information and data from networks and individual stations measuring ambient air pollution within the Member States (SL L 35, 5 Feb 1997);  Commission Decision 2001/752/EC amending the Annexes to Council Decision 97/101/EC (SL L 282, 26 Oct 2001);  Commission Decision 2004/224/EC laying down arrangements for the submission of information on plans or programmes required under Council Directive 96/62/EC in relation to limit values for certain pollutants in ambient air (SL L 68, 6 Mar 2004);  Commission Decision 2004/461/EC laying down a questionnaire to be used for annual reporting on ambient air quality assessment under Directives 96/62/EC and 1999/30/EC and under Directives 2000/69/EC and 2002/3/EC of the European Parliament and of the Council (replacing Decision 2001/839/EC) (SL L 156, 30 Apr 2004). Full alignment will be accomplished through the adoption of the following implementing regulations: - Regulation on the levels of pollutants in air; - Regulation on determining the location of stations in the national air quality monitoring network; - Ordinance on air quality monitoring; - Ordinance on the exchange of information on data from air quality monitoring networks. Based on cooperation between Croatia and Flanders within the project ―Support for the preparation of the National Action Plan for the reduction of particulate matter (PM) and NOx in the Republic of Croatia‖ for selected areas (cities Kutina, Sisak, Split) in which the permitted PM and NOx values are exceeded, in line with Directive 2008/50/EC, action plans will be prepared by the end of February 2012 when the project is planned to be completed. Pursuant to these, the National Action Plan will be prepared in 2012. The adoption of the following documents is planned in 2012: - Report on the implementation of the National Air Quality Protection and Improvement Plan for the period 2008–2011; - Programme for monitoring the quality of liquid oil fuels for 2013; - Programme for air quality monitoring at measuring stations in the National Air Quality Monitoring Network; - Draft Mitigation Plan for air and ozone layer protection and climate change in the Republic of Croatia for the period 2012–2017; - Action Plan for reduction of air pollution by ground-level ozone in zones and agglomerations of the Republic of Croatia where the level of pollutants exceeds target values.

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Other activities in 2012 include the drafting of documentation for submission of the project ―Modernisation of national and local air quality monitoring networks‖ for EU structural funds for the programming period 2014–2020. The upgrading of the National Air Quality Monitoring Network will continue by establishing an additional measuring station in Slavonski Brod for the purpose of monitoring transboundary air pollution and establishing the monitoring of PM2.5 particulate matter, for the purpose of identifying average exposure indicators and the exposure reduction target. The Department for Air and Soil Pollution Prevention within MENP had four employees at the end of 2011. Further recruitment in 2012 will depend on the allocated budgetary funds. In line with the national legislation, CEA will prepare four reports related to air quality: Annual Report on air quality monitoring in the territory of the Republic of Croatia; Annual Report on monitoring pollutant emissions from stationary sources into the air in the territory of the Republic of Croatia; Annual Report on performed testing of the quality of liquid oil fuels and report on emissions of pollutants into the air in the territory of the Republic of Croatia, which at the same time fulfils Croatia‘s obligations under the LRTAP Convention (Convention on Long-Range Transboundary Air Pollution). A large part of activities in 2012 will relate to maintaining, updating and upgrading the Air Quality Information System (AQIS).

3.27.3. Waste management Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives will be fully transposed into the Croatian legislation through the adoption of the new Waste Act in the course of 2012. Adoption of the Act on Ratification of Amendments to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal is planned in 2012. In the coming period, the construction of county and regional waste management centres and their set up by the end of 2018 will continue, together with activities on remediation of uncontrolled landfills and the remediation and closing of existing landfills. The projects are co-financed using funding provided by the EU, the Environmental Protection and Energy Efficiency Fund (EPEEF) and local and regional self-government units (administrative capacity strengthening for the implementation of these projects is outlined in Chapter 22: Regional policy). In addition to regular maintenance, updating and upgrading of databases in the Waste Management Information System (WMIS), CEA will continue its work on preparing reports for national requirements according to the CEA‘s work plan. Additionally, the Annual Report on the control of transboundary movement of hazardous wastes and their disposal (pursuant to the Basel Convention) will be prepared.

3.27.4. Water quality In 2012, the Ministry of Agriculture plans the adoption of the River Basin District Management Plan. Taking into account the tasks related to the implementation of the Water Framework Directive, starting with the preparation and implementation of the River Basin District Management Plan, including the implementation of the strategic environmental assessment of the Plan and realisation of its implementation, and tasks related to reform of the

283 water utility sector as a prerequisite for the realisation of the Implementation Plan for Water-Related Directives and tasks of inspectional supervision, further administrative capacity strengthening in the water-related sector is required. Further administrative capacity strengthening is also required for the preparation and implementation of projects in the water-related sector, in line with the obligations for implementation of the IPA programme and EU structural instruments in Croatia listed in the Environmental Protection Operational Programme. Further employment will depend on the allocated budgetary funds. In 2012, the Ministry of Agriculture also plans the adoption of the Action Programme for the protection of waters against pollution caused by nitrates from agricultural sources. The listed Action Programme will be adopted under the Water Act (OG 153/09, 130/11), thus achieving alignment with the provisions of Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources, in the part under competence of the agricultural sector. This Action Programme will define the permitted application of livestock manure on agricultural land, periods when the land application of certain types of fertilizer is prohibited, limitation of the land application of fertilizers according to soil type and slope, climatic conditions, rainfall and irrigation, conditions for land application of fertilizer near water courses, land use and agricultural practices, the estimated nitrogen requirements of the crops, the nitrogen supply to the crops from the soil and from fertilization, procedures for the land application of both chemical fertilizer and livestock manure that will maintain nutrient losses to water at an acceptable level, capacity of storage vessels for livestock manure, establishment of fertilizer plans on a farm-by-farm basis and the keeping of records on fertilizer use. The Action Programme for the protection of waters against pollution caused by nitrates from agricultural sources will be implemented in areas designated as vulnerable zones under the Water Act (OG 153/09, 130/11). In addition to regular maintenance, updating and upgrading of databases in the Water Quality Information System (WQIS), CEA will continue its activities on the preparation and timely delivery of reports and data sets for the needs of international reporting (EEA/ROD, EC). Quality of the sea and the marine environment Adoption of the Act on Ratification of the Protocol on Integrated Management of Coastal Areas (IMCA) of the Convention for the Protection of the Marine Environment and the Coastal Region of the Mediterranean is planned in 2012. The Inter-sectoral Co-ordination for Integrated Management of Coastal Areas was institutionalized at the level of experts, which capacity strengthening is carried out in co-operation with GIZ, PAP/RAC and the H2020 component, while the Study on the effects of IMCA Protocol on the integrated coastal area management system in Croatia is in its final stage of preparation. Further development of the implementing framework for integrated management of coastal areas will be required in 2012. Further employment will depend on the allocated budgetary funds. In 2012, drafting of documents will continue pursuant to the Regulation establishing a framework for action of the Republic of Croatia in the protection of the marine environment (OG 136/11), which transposes the provisions of Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive). The first document, ―Initial assessment of the current environmental status and pressures on the marine environment of the Croatian part of the Adriatic‖ was prepared in 2011, while the drafts of three documents will be prepared in 2012: ―Economic and social analysis of the use of marine waters and of the cost of degradation of the marine environment‖, ―Features of the good environmental status of the marine environment‖ and ―Group of environmental protection targets and associated indicators―. The following activities are planned to be carried out in 2012: - continued co-ordination of the Programme for monitoring sea water quality on beaches in Croatia, preparation of the annual national report on the quality of sea bathing water in 2012, drafting a report on the final assessment of sea bathing water quality and updating the database on sea bathing water quality;

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- continued financing of part of the measures to ensure the operational readiness of sea-cleaning vessels as part of the implementation of the Intervention Plan in the case of sudden sea pollution; - continued realisation of Phase II of the ―Coastal Cities Pollution Control Project – Adriatic Sea Monitoring Programme‖ funded by the Republic of Croatia and through a loan from the International Bank for Reconstruction and Development. In order to carry out new tasks arising from the adoption of implementing regulations under Directive 2008/56/EC establishing a framework for community action in the field of marine environmental policy, along with the existing activities in the field of protection of the sea and the marine environment, strengthening of the Department for Sea and Coast Protection within MENP will be required. Further employment will depend on the allocated budgetary funds.

3.27.5. Nature protection In the field of nature protection, it is planned in 2012 to continue work on defining the proposal for the NATURA 2000 ecological network13 and the measures required for its conservation. The fulfilment of part of the activities related to establishing a mechanism for sustainable management of the NATURA 2000 ecological network is planned in 2012 through the implementation of two projects financed from the IPA pre-accession programme:  The project ―Development of faunistic and speleological databases (CRO Fauna and CRO Speleo) as part of the Nature Protection Information System‖ (IPA TAF 2007) (2011–2012) with the objective of establishing faunistic and speleological databases for the NATURA 2000 Network, for the purpose of more efficient monitoring and implementation of the appropriate assessment of the impact of plans, programmes and projects on the ecological network (implementation of Article 6, paragraphs 3 and 4 of the Habitats Directive);  The project ―Administrative strengthening of public institutions for the purpose of developing management plans and strengthening nature protection in future NATURA 2000 sites‖ (IPA TAIB 2009) (2010–2012) with the objective of establishing sustainable management of Natura 2000 sites and strengthening the inspection services needed for supervising these sites. As part of the project, management plans will be prepared for six sites, the monitoring programme and a National Nature Protection Inspection Information System will be established, and equipment procured for the nature protection inspection service and the inspection service for public institutions.  The project ―Development of the database of habitat types asp of the Nature Protection Information System (NPIS)― (IPA Framework contract beneficiaries 2009) (project start planned for second half of 2012, project duration 16 months) with the aim to develop and implement a topic database on habitat types as one of the key components of NPIS. This project will contribute to the establishment of a single information platform allowing data storage and exchange and will ensure simple access to the database through a web interface, efficient monitoring and reporting (Articles 11 and 17 of the Habitats Directive) and implementation of the appropriate assessment of the impact of plans, programmes and projects on the ecological network (implementation of Article 6, paragraphs 3 and 4 of the Habitats Directive). As part of the approved World Bank loan (IBRD 8021-HR), the implementation of a five-year EU Natura 2000 Integration Project - NIP, in line with the development objectives the project aims to: (i) help support national parks, nature parks and county public institutions for the management of protected natural values to implement the European ecological network Natura 2000 objectives in investment programmes; (ii) strengthen capacity for biodiversity monitoring and EU-compliant reporting; and (iii) introduce

13 The proposal of the NATURA 2000 ecological network is a database containing all the data prescribed pursuant to the Habitats Directive on the sites being proposed (including both SPA and pSCI sites). The Republic of Croatia is obliged to submit this proposal (database) to the European Commission by the date of its accession to the EU. 285 programmes that involve a wide group of stakeholders in Natura 2000 network management. Furthermore, the NIP aims to provide support in strengthening capacities of public institutions for the purpose of preparing projects to draw funds from EU structural funds. The activities on proclaiming new protected areas will continue. For the purpose of establishing an optimal conservation model for protected areas, activities related to improving the visitor infrastructure in protected areas and on drafting the remaining management plans for national parks and nature parks will continue. For a part of activities (visitor centres) for which financing from structural funds is planned, the preparation of project documentation will continue. Adoption of a new Nature Protection Act is planned for 2012, for the purpose of clearer regulation of the management of protected areas, clearer regulation of inspectional procedures, acceleration and simplification of the appropriate assessment of the impact of projects on the ecological network, clearer regulation of the protection of strictly protected wild taxa and full transposition of the provisions of relevant EU legislation – Habitats Directive, Birds Directive and CITES Regulations. After the adoption of this Act, technical alignment of Regulations on the establishment of all public institutions of national parks and nature parks will be carried out. The alignment with the new regulation related to transboundary movement and trade in protected species (suspension regulation) related to prohibiting imports of endangered species is also planned. Further administrative capacity strengthening is required in the Directorate for Nature Protection Inspection, so the employment of five new inspectors is planned.

3.27.6. Industrial pollution prevention and control The priority for 2012 is to continue implementing procedures for determining integrated environmental protection requirements (environmental permit) for existing installations pursuant to the provisions of the Environmental Protection Act in force. For that purpose, the priority is administrative capacity strengthening in order to carry out activities and meet deadlines and obligations arising from the Implementation Plan for the IPPC Directive. In view of that, additional employment is required and the exact number of new employees will depend on the allocated budgetary funds. As regards the SEVESO Directive, the priority for 2012 is to continue implementing the evaluation procedure for safety reports of companies awaiting to receive mandatory report approval by the end of the year. In order to strengthen capacity for the implementation of this Directive, additional employment is planned, which will depend on the allocated budgetary funds. For the purpose of alignment with Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) and with Regulation (EC) No 1221/2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), and also for the purpose of more efficient procedure management, the Act on Amendments to the Environmental Protection Act will be adopted, and the new regulation, i.e. Regulation on the procedure for issuing environmental permits, will be subsequently adopted. The project related to audit of the functioning of the EMAS system was carried out in 2011, and included, in addition to the MEPPPC, the Croatian Accreditation Agency, Environmental Protection and Energy Efficiency Fund, Croatian Environment Agency and Ministry of the Economy, Labour and Entrepreneurship. The EMAS project was finalized, but the results have not yet been validated. Based on the results of the EMAS project and new Regulation (EC) No 1221/2009, a new Regulation on the transposition of Regulation (EC) No 1221/2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS) will be adopted. Implementation of the project ―Capacity building for the implementation of the environmental acquis in the fields of waste management, IPPC and noise protection‖ started in November 2011. The goal of the second project component is support in capacity building and implementation of the environmental acquis for IPPC in Croatia.

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Alignment of the Croatian legislation with Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) in the part related to monitoring pollutant emissions from stationary sources into the air will be completed by the adoption of the following implementing regulations: - Regulation on limit values for emissions of pollutants from stationary sources into the air, - Ordinance on monitoring pollutant emissions from stationary sources into the air. An analysis of all combustion installations will be performed in 2012 and decisions will be made on the need to prepare a transitional national plan and/or list of installations which will be exempted from compliance with the emission limit values of pollutant emissions into the air based on the planned limited life time, in line with the provisions from Directive 2010/75/EU. The Department for Air and Soil Pollution Prevention had four employees at the end of 2011. Further recruitment in 2012 related to the obligations arising from Directive 2010/75/EU on industrial emissions will depend on the allocated budgetary funds. Regarding the implementation of the Regulation related to the environmental label (Regulation (EC) No 66/2010 of the European Parliament and of the Council of 25 November 2009 on the EU Ecolabel), further recruitment will depend on the allocated budgetary funds. In addition to regular upgrading, maintenance and updating of topic area databases, CEA will prepare the ―Environmental Pollution Registry (EPR) Report 2011‖ and ―Report on Data from the Registry of Installations with Detected Presence of Hazardous Substances 2011‖ and ensure their publication on its website. As part of upgrading the EPR database, the preparation of the Environmental Pollution Registry browser will be finalised, enabling the public to directly access EPR data online without having to open a user account. Additionally, preparation of the special web portal in line with the requirements of the Act on Ratification of the Protocol on Pollutant Release and Transfer Registers to the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (OG-IT 4/08) is also in progress, and its launch is planned for the end of 2012.

3.27.7. Chemicals and GMO Chemicals Further alignment of national legislation with the new acquis will continue in 2012 along with the continued implementation of the already adopted acts and subordinate legislation. Adoption of the following legislation is planned in 2012: - Act on the Implementation of Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006. Adoption of the following subordinate regulations is planned in 2012: - Ordinance on Amendments to the Ordinance on the list of existing active substances permitted in biocidal products (alignment with Commission Directive 2011/10/EU, 2011/11/EU, 2011/12/EU, 2011/13/EU, 2011/71/EU, 2011/66/EU, 2011/67/EU and 2011/69/EU);

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- Ordinance on Amendments to the Ordinance on the list of existing active substances not permitted in biocidal products (alignment with Commission Decision 2011/391/EU); - List of biocidal products granted marketing authorisation (implementation of Article 18 of Directive 98/8/EC concerning the placing of biocidal products on the market); - List of Amendments to the List of dangerous chemicals whose placing on the market is prohibited or restricted (alignment with Commission Regulation (EU) No 207/2011, Commission Regulation (EU) No 366/2011, Commission Regulation (EU) No 494/2011) and Regulation (EC) No 1102/2008); - List of substances subject to authorisation at the European Union level (alignment with Commission Decision (EU) No 143/2011); - Ordinance on classification, labelling and packaging of dangerous chemicals (OG 64/11) (alignment with Commission Regulation (EU) No 286/2011); - Ordinance on Amendments to the Ordinance on classification, labelling and packaging of dangerous chemicals (OG 23/08, 64/09 and 113/10) (alignment with Commission Regulation (EU) No 1152/2010); - Ordinance on Amendments to the Ordinance on the import and export of dangerous chemicals (OG 73/09 and 104/10) (alignment with Commission Regulation (EU) No 214/2011 and Commission Regulation (EU) No 834/2011). The implementation of the project ―Chemical Safety - strengthening the legal and institutional framework for the safe management of dangerous chemicals‖ started in June 2010, with the Ministry of Health and Social Welfare as the implementing authority and Ministry of Environmental Protection and Physical Planning and the Croatian Environment Agency (CEA) as project partners. The project consists of two components: technical assistance and twinning. The project aims to assist in the transposition of the REACH Regulation, SEVESO II Directive, biocides and other relevant directives into the Croatian legislation, and in the development of administrative and institutional capacities for the effective protection of human health and environment from dangerous chemicals at the central and local level. The twinning component includes the preparation of amendments to legislation related to chemicals and establishing an integrated dangerous chemicals information system. Within the technical assistance component, a final proposal of the future integrated information system which will include databases from MH, CIT and CEA (Seveso) will be prepared. The project is planned to be completed in May 2012. GMO Further alignment of national legislation with the new acquis will continue in 2012 along with the implementation of the already adopted acts and subordinate legislation. In 2012, it is planned to adopt the Regulation on Amendments to the Regulation on the minimum threshold for genetically modified organisms in products below which the products placed on the market do not have to be labelled as products containing genetically modified organisms (alignment with Commission Decision 2011/354/EU, 2011/365/EU, 2011/366/EU, 2011/891/EU, 2011/892/EU, 2011/893/EU and 2011/894/EU). 3.27.8. Noise protection During 2012, the issuance of the Minister of Health's authorisations to legal persons for performing expert tasks in noise protection is planned to continue, pursuant to the Noise Protection Act (OG 30/09) and to the Ordinance on requirements regarding premises, equipment and personnel in legal persons performing professional noise protection activities (OG 91/07). The collection of data and control of the development of strategic noise maps pursuant to the Noise Protection Act (OG 30/09) and the Ordinance on the method of preparation and content of noise maps and action plans, and on the method of calculating limit values of noise indicators (OG 75/09) will also continue. 288

The implementation of the project ―Capacity building for the implementation of the environmental acquis in the fields of waste management, IPPC and noise protection‖ started in November 2011. MH is the main beneficiary in the part of the project related to the noise protection component, while CEA is a project partner. One of the project goals is to prepare the National Noise Protection Strategy and Noise Protection Action Plan. Within the topic area of noise protection, CEA will initiate the integration of noise maps and enable their availability via a GIS browser. 3.27.9. Forestry No further legislative activities are planned in 2012. In connection with administrative capacity building, the recruitment of eight new employees is planned: two in the Sector for Forest Protection and International Co-operation, two in the Sector for Forest Management, and four in the Sector for Forestry Inspection. Further recruitment will depend on the allocated budgetary funds. Environmental Inspection (MENP) With the objective of more efficiently implementing the aligned environmental legislation, during 2012 the Directorate for Inspection Affairs, in co-operation with the Directorate of Instructive and Internal Control and the Directorate for Legal Affairs of Inspectional Supervision at the MENP, is planning to improve the administrative capacities of the environmental inspection, i.e. their professional knowledge and skills, through continuous training, implementation of pre-accession projects and active participation of environmental inspectors in the work of relevant international networks. Considering the retirement rate at the end of 2011, it is expected that the Employment Plan for 2012 will provide for the recruitment of four new environmental inspectors. Further recruitment will depend on the allocated budgetary funds. In particular, 2012 will see further improvement in the implementation of the co-ordinated inspectional supervision of subjects obligated to apply the integrated environmental protection requirements pursuant to the Agreement on Co-operation between Inspection Services in the Field of the Environment, in terms of organisation and reporting. An increase is planned in the number of inspectional supervisions of operators whose installations contain hazardous substances, all existing industrial installations subject to the integrated environmental protection requirements for which status analyses were carried out, industrial installations that release polluting substances and therefore have an impact on air quality, and operators who perform the transboundary movement of waste and who collect and manage different waste categories. It is also planned to supervise the implementation of remediation programmes for locations highly burdened with waste, i.e. ‗hot spots‘ and waste landfills, to supervise the implementation of measures for the reduction of greenhouse gas emissions, and the implementation of the Regulation on technical standards of environmental protection from volatile organic compounds resulting from the storage and distribution of petrol and the Regulation on technical environmental standards for reducing volatile organic compound (VOC) emissions during refuelling of motor vehicles at service stations, all in line with the adopted Work Plan for 2012. The improvement of administrative capacity of the inspection will be carried out by use of the ―train-the-trainers‖ method adopted during the implementation of the PHARE 2005 project ―Enhanced environmental inspection for enforcement of the new environmental legislation‖, in relation to implementing the provisions of the transposed SEVESO II Directive and monitoring greenhouse gas emissions, and by holding workshops for newly recruited environmental inspectors. Workshops intended for operators who use volatile organic compounds in their work will continue to be held. In 2012, implementation will continue of the IPA Component I 2008 twinning project ―Enforcement of the new Environmental Protection Act aligned with EU legislation in cases of criminal offences against the environment‖ whose objective is to strengthen the capacities of the environmental inspection and of other stakeholders (customs services, State Attorney‘s Office, judiciary, association of court experts, police) to enforce the provisions of the new Environmental Protection Act in cases of criminal and misdemeanour offences committed against the environment. After carrying out training and educational programmes for the project‘s main beneficiary — MENP‘s Environmental Inspection — and for representatives of all project stakeholders, the project team decided that an additional workshop would be organised as part of the regular project implementation for all

289 stakeholders on the topic of experiences in the implementation of the new Criminal Procedure Act (fully in force from 1 September 2011) and the Criminal Code (adopted in October 2011, OG 125/11), and EU experiences related to cases of fraud of the established greenhouse gas trading system (EU-ETS). It is also planned to begin a new twinning project within IPA 2009 Component I, ―Strengthening the capacities for control of transboundary movement of waste‖ in co-operation with Austria as a partner country. The project will be implemented for 21 months in the period 2012–2104 and is valued at EUR 1,160,000. In addition to the project‘s main beneficiary, the environmental inspection of the Directorate for Inspection Affairs of the MENP, representatives of services that issue permits for transboundary movement of waste will participate in the project along with representatives of the Ministry of Finance – Customs Administration, Ministry of the Interior – Border Administration, Ministry of Maritime Affairs, Transport and Infrastructure – Directorate for Seafaring and Inland Waterway Navigation Safety and Sea and River Protection, Ministry of Defence – Coast Guard and the State Office for Radiological and Nuclear Safety. The project aims to strengthen the implementation of the environmental acquis through efficient implementation of the provisions of national and international legislation related to the transboundary movement of waste, and to strengthen the capacity of the environmental inspection and other stakeholders for establishing efficient control of the future Schengen borders and for supervision conducted among EU Member States. As part of the IMPEL network (Implementation and Enforcement of Environmental Law), it is planned to continue activities within the IMPEL Easy Tools Projects with the aim of establishing the prioritization method for inspectional actions and supervisions in order to standardise the work of all EU inspection bodies competent for environmental protection. It is also planned to participate in the IMPEL TFS Cluster 2 projects Waste Sites and Doing the Right Things and the new IMPEL TFS project Enforcement Actions III, and to continue implementation of the IPA Component I 2007 Chemical safety - strengthening legal framework and institutional infrastructure for protection from dangerous chemicals. The implementation of activities with environmental inspectors involved in the work of Working Group 4 - ECENA will continue within the RENA network (Regional Environmental Network for Accession), which began its work in 2010. In 2012, work will be done in six thematic fields, including regional workshops, training sessions and work meetings of the network. In May 2012, the Republic of Croatia will organise a two day workshop within RENA network WG 4 (ECENA) activities, related to education of environmental inspectors in order to train them in the control of greenhouse gas trading, and in October 2012 it will host the regional training programme for environmental inspectors which will include practical field work in the cement industry. RENA will arrange the participation of national co-ordinators in the work of the INECE Network, which in 2012 will continue activities of the working group for the prevention of marine pollution and port traffic control. The representative of the environmental inspection nominated for co-operation and work in INTERPOL in 2012 will continue activities in the INTERPOL Pollution Crime Working Group. Activities will also continue within the TWG 2 (Technical Working Group 2 – Group for inspection of high-risk installations) and TAIEX (Technical Assistance and Information Exchange instrument) by organising visits of EU experts in the field of prevention, detection and processing of criminal offences against the environment involved in the work of INTERPOL and EUROPOL. At the proposal of the European Commission and RENA network, TAIEX workshops will be organised as regional workshops for the purpose of expanding and improving co-operation of experts from South-Eastern European countries. In co-operation with REC (Regional Environmental Centre for Central and Eastern Europe) and ENVESEC (Environment and Security Initiative), the implementation of the THEMIS project for combating criminal offences against the environment in South-Eastern European countries will continue. It is expected that Croatian representatives will be included in the project as experts for transferring the practical experiences of the Republic of Croatia in the field of detection and processing of criminal offences against the environment and co-operation with judicial bodies. RECRUITMENT OF NEW EMPLOYEES AND OTHER ACTIVITIES RELATED TO BUDGETARY FUNDS (education, training and procurement of IT equipment) in all institutions will be in line with the final budgetary funds that will be available.

290

3.27.1. Horizontal legislation

Legislative activities

Climate change b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure Commission Regulation (EC) No 303/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of companies and personnel as regards stationary refrigeration, air conditioning and heat pump equipment containing certain fluorinated greenhouse gases 32008R0303 Ordinance on professional training of persons handling substances that Air Protection Act (OG 130/11), Article 65, Commission Regulation (EC) No 304/2008 1. MENP 3rd quarter 2012 deplete the ozone layer and fluorinated paragraph 2 of 2 April 2008 establishing, pursuant to greenhouse gases Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of companies and personnel as regards stationary fire protection systems and fire extinguishers containing certain fluorinated greenhouse gases 32008R0304

Commission Regulation (EC) No 305/2008

291 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of personnel recovering certain fluorinated greenhouse gases from high-voltage switchgear. 32008R0305

Commission Regulation (EC) No 306/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of personnel recovering certain fluorinated greenhouse gas-based solvents from equipment.

32008R0306

Commission Regulation (EC) No 307/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements for training programmes and the conditions for mutual recognition of training attestations for personnel as regards air-conditioning systems in certain motor vehicles containing certain fluorinated greenhouse gases. 32008R0307 Ordinance on monitoring greenhouse Air Protection Act (OG 130/11), Article 75, Commission Decision 2005/166/EC of 10 2. MENP 3rd quarter 2012 gas emissions paragraph 7 February 2005 laying down rules

292 implementing Decision No 280/2004/EC of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol 32005D0166 Commission Decision 2011/278/EC of 27 April 2011 determining transitional Union- Ordinance on the manner of free Air Protection Act (OG 130/11), Article 90, wide rules for harmonised free allocation of 3. allocation of greenhouse gas emission MENP 3rd quarter 2012 paragraph 4 emission allowances pursuant to Article allowances 10a of Directive 2003/87/EC 32011D0278 Commission Regulation (EU) No 2010/920 of 7 October 2010 for a standardised and secured system of registries pursuant to Directive 2003/87/EC Ordinance on the keeping of the Union Air Protection Act (OG 130/11), Article 101, 4. MENP of the European Parliament and of the 3rd quarter 2012 Registry paragraph 4 Council and Decision No 280/2004/EC of the European Parliament and of the Council 32010R0920

293 Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC 32007D0589

Commission Decision 2009/339/EC of 16 April 2009 amending Decision 2007/589/EC as regards the inclusion of monitoring and reporting guidelines for emissions and tonne-kilometre data from aviation activities Ordinance on monitoring and reporting 32009D0339 Air Protection Act (OG 130/11), Article 108, 5. on greenhouse gas emissions from MENP 3rd quarter 2012 paragraph 5 installations and aircrafts Commission Decision 2009/73/EC of 17 December 2008 amending Decision 2007/589/EC as regards the inclusion of monitoring and reporting guidelines for emissions of nitrous oxide 32009D0073

Commission Decision 2011/540/EU of 18 August 2011 on amending Decision 2007/589/EC as regards the inclusion of monitoring and reporting guidelines for greenhouse gas emissions from new activities and gases 32011D0540 Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon ME dioxide and amending Council Directive Regulation on the geological storage Air Protection Act (OG 130/11), Article 117, 6. MENP 85/337/EEC, European Parliament and 4th quarter 2012 of carbon dioxide paragraph 3 Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006

294 32009L0031 Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer 32009R1005

Commission Regulation (EU) No 744/2010 of 18 August 2010 amending Regulation (EC) No 1005/2009 of the European Parliament and of the Council on substances that deplete the ozone layer, with regard to the critical uses of halons 32010R0744

Commission Regulation (EU) No 291/2011 of 24 March 2011 on essential uses of controlled substances other than Regulation on substances that deplete Air Protection Act (OG 130/11), Article 65, hydrochlorofluorocarbons for laboratory 7. the ozone layer and fluorinated MENP 2nd quarter 2012 paragraph 1 and analytical purposes in the Union under greenhouse gases Regulation (EC) No 1005/2009 of the European Parliament and of the Council on substances that deplete the ozone layer 32011R0291

Commission Decision 372/2010 of 18 June 2010 on the use of controlled substances as process agents under Article 8(4) of Regulation (EC) No 1005/2009 of the European Parliament and of the Council 32010D0372

Regulation (EC) No 842/2006 of the European Parliament and of the Council of 17 May 2006 on certain fluorinated greenhouse gases 32006R0842

295 Commission Regulation (EC) No 1493/2007 of 17 December 2007 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, the format for the report to be submitted by producers, importers and exporters of certain fluorinated greenhouse gases 32007R1493

Commission Regulation (EC) No 1494/2007 of 17 December 2007 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, the form of labels and additional labelling requirements as regards products and equipment containing certain fluorinated greenhouse gases 32007R1494

Commission Regulation (EC) No 1516/2007 of 19 December 2007 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, standard leakage checking requirements for stationary refrigeration, air conditioning and heat pump equipment containing certain fluorinated greenhouse gases 32007R1516

Commission Regulation (EC) No 1497/2007 of 18 December 2007 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, standard leakage checking requirements for stationary fire protection systems containing certain

296 fluorinated greenhouse gases 32007R1497

Commission Regulation (EC) No 303/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of companies and personnel as regards stationary refrigeration, air conditioning and heat pump equipment containing certain fluorinated greenhouse gases 32008R0303

Commission Regulation (EC) No 304/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of companies and personnel as regards stationary fire protection systems and fire extinguishers containing certain fluorinated greenhouse gases 32008R0304

Commission Regulation (EC) No 305/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of personnel recovering certain fluorinated greenhouse gases from high-voltage switchgear 32008R0305

Commission Regulation (EC) No 305/2008

297 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, minimum requirements and the conditions for mutual recognition for the certification of personnel recovering certain fluorinated greenhouse gases from high-voltage switchgear 32008R0306

Commission Regulation (EC) No 308/2008 of 2 April 2008 establishing, pursuant to Regulation (EC) No 842/2006 of the European Parliament and of the Council, the format for notification of the training and certification programmes of the Member States 32008R0308 Decision No 280/2004/EC of the European Parliament and of the Council of 11 February 2004 concerning a mechanism Regulation on monitoring greenhouse Air Protection Act (OG 130/11), Article 81, 8. MENP for monitoring Community greenhouse gas 2nd quarter 2012 gas emissions paragraph 1 emissions and for implementing the Kyoto Protocol 32004D0280

298

Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community‘s greenhouse gas emission reduction commitments up to 2020 32009D0406 Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission Regulation on the auctioning of Air Protection Act (OG 130/11), Article 99, allowances pursuant to Directive 9. MENP 4th quarter 2012 greenhouse gas emission allowances paragraph 2 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community 32010R1031 Directive 2008/101/EC of 19 November 2008 of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community Regulation on greenhouse gas Air Protection Act (OG 130/11), Article 114, 32008L0101 10. MENP 2nd quarter 2012 emission allowance trading paragraph 1 Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community 32009L0029 Commission Regulation (EU) No Decision on the auctioneer and Air Protection Act (OG 130/11), Article 99, 11. MENP 1031/2010 of 12 November 2010 on the 4th quarter 2012 selection of the auction platform paragraph 3 timing, administration and other aspects of

299 auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community 32010R1031

300 c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

1. Sustainable Production and Consumption Action Plan MENP 2nd quarter 2012

Environmental Protection Action Plan – Environmental Protection Plan 2. MENP 2nd quarter 2012 of the Republic of Croatia

3. Action Plan on the Protection of the Adriatic Sea, Coast and Islands MENP 3rd quarter 2012

INSPIRE Legislative activities b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure

Commission Regulation (EC) No 976/2009 State Survey and Real Estate Cadastre of 19 October 2009 implementing Directive Implementation rules for network Act (OG 16/07, 124/10), Article 88 and 2007/2/EC of the European Parliament and 1. NSDI Council 1st quarter 2012 services Article 90, paragraph 2 of the Council as regards the Network Services

32009R0976

301 3.27.2. Air quality

Legislative activities b) Subordinate legislation

1. Ordinance on air quality monitoring MENP Air Protection Act (OG 130/11), Article 52 Directive 2004/107/EC of the European 3rd quarter 2012 Parliament and of the Council of 15 December 2004 relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air (SL L 23, 26 Jan 2005) 32004L0107 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control)(monitoring, emission evaluation, Ordinance on monitoring pollutant measuring techniques, sampling, CEM 2. emissions from stationary sources into MENP Air Protection Act (OG 130/11), Article 53 4th quarter 2012 standards) the air 32010L0075

Gothenburg Protocol to Abate Acidification, Eutrophication and Ground- level Ozone 3. Ordinance on the exchange of MENP Air Protection Act (OG 130/11), Article 120, Council Decision 97/101/EC of 27 January 4th quarter 2012

302 information on data from air quality paragraph 3 1997 establishing a reciprocal exchange of monitoring networks information and data from networks and individual stations measuring ambient air pollution within the Member States (SL L 35, 5 Feb 1997), 31997D0101

Commission Decision 2001/752/EC of 17 October 2001 amending the Annexes to Council Decision 97/101/EC (SL L 282, 26 Oct 2001) 32001D0752

Commission Decision 2004/224/EC of 20 February 2004 laying down arrangements for the submission of information on plans or programmes required under Council Directive 96/62/EC in relation to limit values for certain pollutants in ambient air (SL L 68, 6 Mar 2004) 32004D0224

Commission Decision 2004/461/EC of 29 April 2004 laying down a questionnaire to be used for annual reporting on ambient air quality assessment under Council Directives 96/62/EC and 1999/30/EC and under Directives 2000/69/EC and 2002/3/EC of the European Parliament and of the Council (replacing Decision 2001/839/EC) (SL L 156, 30 Apr 2004) 32004D0461

303 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe (SL L 152, 11 Jun 2008), 32008L0050

Regulation on the levels of pollutants Air Protection Act (OG 130/11), Article 25, 4. MENP Directive 2004/107/EC of the European 3rd quarter 2012 in air paragraph 1 Parliament and of the Council of 15 December 2004 relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air (SL L 23, 26 Jan 2005) 32004L0107 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe (SL L 152, 11 Jun 2008) 32008L0050

Regulation on determining the Air Protection Act (OG 130/11), Article 27, Directive 2004/107/EC of the European 5. locations of stations in the national air MENP 4th quarter 2012 paragraph 3 Parliament and of the Council of 15 quality monitoring network December 2004 relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air (SL L 23, 26 Jan 2005) 32004L0107

Directive 2010/75/EU of the European Parliament and of the Council of 24 Regulation on limit values for November 2010 on industrial emissions Air Protection Act (OG 130/11), Article 39, 6. emissions of pollutants from stationary MENP (integrated pollution prevention and 2nd quarter 2012 paragraph 1 sources into the air control) 32010L0075

304 c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

Report on the Implementation of the National Air Quality Protection and 1. MENP 4th quarter 2012 Improvement Plan for the period 2008–2011

3.27.3. Waste management

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (SL L 312, 22 Nov 1. Waste Act MENP 2nd quarter 2012 2008) 32008L0098

Act on Ratification of Amendments to the Basel Basel Convention on the Control of Transboundary Movements of Hazardous 2. MENP 3rd quarter 2012 Convention Wastes and their Disposal (OG/IT – 3/94)

305 3.27.4. Water quality

Legislative activities b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure

Council Directive 91/676/EEC of 12 December 1991 concerning the protection Ordinance on Amendments to the Act on Fertilisers and Soil Improvers of waters against pollution caused by 1. MA 1st quarter 2012 Ordinance on good agricultural 163/03, 40/07), Article 11, paragraph 2 nitrates from agricultural sources practices in fertilizer use 31991L0676

c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

1. River Basin District Management Plan MA 2012*

Action Programme for the Protection of Waters against Pollution Caused by 2. MA 2nd quarter 2012 Nitrates from Agricultural Sources

306 * The adoption of the Plan depends on the adoption of the Decision on the designation of sensitive areas and completed Strategic environmental assessment of the River Basin District Management Plan (SEA). As a precondition for adoption of the Decision, MA must provide bases for the final designation of sensitive areas. In this regard, within the Agricultural Control Pollution Project (APCP), MA is implementing the project ―Designation of nitrate sensitive areas and economic effects of implementation of the Nitrates Directive‖, whose completion is expected in 2012.

Quality of the sea and the marine environment

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure

Act on Ratification of the Protocol on Integrated Protocol on Integrated Management of Coastal Areas of the Mediterranean 1. MENP 3rd quarter 2012 Management of Coastal Areas (Barcelona Convention)

307 3.27.5. Nature protection

Legislative activities a) Legislative measures

To be submitted for Competent No Legislative measure To be aligned with the following acts of the acquis Government authority procedure Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora

31992L0043 1. Nature Protection Act MENP 3rd quarter 2012 Council Directive 79/409/EEC on the conservation of wild birds

32009L0147 b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure

Commission Implementing Regulation (EU) Ordinance on Amendments to the No 828/2011 of 17 August 2011 suspending Ordinance on transboundary Nature Protection Act (OG 70/05, 139/08, 1. MENP the introduction into the Union of specimens 2nd quarter 2012 movement and trade in protected 57/11), Article 101 of certain species of wild fauna and flora species 2011R0828

308 ANIMAL PROTECTION

Legislative activities b) Subordinate legislation

To be Competent Legal basis for the adoption of To be aligned with the following acts of the submitted for No. Subordinate legislation authority subordinate legislation acquis Government procedure Council Directive (83/129/EEC) of 28 March 1983 concerning the importation into Member States of Ordinance on import of skins of certain Animal Protection Act (OG 135/06), Article skins of certain seal pups and products derived 1. seal pups and products derived MA 1st quarter 2012 69 therefrom therefrom 31983L0129

Regulation (EC) No 1007/2009 of the European Parliament and of the Council of 16 September Animal Protection Act (OG 135/06), Article 2. Ordinance on trade in seal products MA 2009 on trade in seal products 2nd quarter 2012 69 32009R1007

Commission Regulation (EU) No 737/2010 of 10 August 2010 laying down detailed rules for the Ordinance laying down detailed rules Animal Protection Act (OG 135/06), Article implementation of Regulation (EC) No 1007/2009 3. for the implementation of the MA 3rd quarter 2012 69 of the European Parliament and of the Council on Ordinance on trade in seal products trade in seal products 32010R0737

Ordinance prohibiting the use of Council Regulation (EEC) No 3254/91 of 4 leghold traps and the introduction of November 1991 prohibiting the use of leghold pelts and manufactured goods of traps in the Community and the introduction into Animal Protection Act (OG 135/06), Article 4. certain wild animal species originating MA the Community of pelts and manufactured goods 3rd quarter 2012 69 in countries which catch them by of certain wild animal species originating in means of leghold traps or trapping countries which catch them by means of leghold methods which do not meet traps or trapping methods which do not meet

309 international humane trapping international humane trapping standards standards 31991R3254 Directive 2010/63/EU of the European Parliament Ordinance on the protection of animals Animal Protection Act (OG 135/06), Article and of the Council of 22 September 2010 on the 5. MA 4th quarter 2012 used for scientific purposes 20, 22 and 32 protection of animals used for scientific purposes 32010L0063

3.27.6. Industrial pollution prevention and control

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and Act on Amendments to the Environmental 1. MENP control) 2nd quarter 2012 Protection Act 32010L0075

310 b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of No. Subordinate legislation Government authority subordinate legislation the acquis procedure Directive 2010/75/EU of the European Parliament and of the Council of 24 Regulation on the procedure for Act on Amendments to the Environmental 1. MENP November 2010 on industrial emissions 3rd quarter 2012 issuing environmental permits Protection Act (2nd quarter 2012) (integrated pollution prevention and control) 32010L0075 Regulation on the transposition of Regulation (EC) No 1221/2009 of 25 Regulation (EC) No 1221/2009 on the November on the voluntary participation by Environmental Protection Act (OG 110/07), 2. voluntary participation by MENP organisations in a Community eco- 3rd quarter 2012 Article 117 organisations in a Community eco- management and audit scheme (EMAS) management and audit scheme (EMAS) 32009R1221 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) Ordinance on monitoring pollutant (monitoring, emission evaluation, measuring th 3. emissions from stationary sources into MENP Air Protection Act (OG 130/11), Article 53 techniques, sampling, CEM standards) 4 quarter 2012 the air 32010L0075

Gothenburg Protocol to Abate Acidification, Eutrophication and Ground-level Ozone Directive 2010/75/EU of the European Parliament and of the Council of 24 Regulation on limit values for November 2010 on industrial emissions Air Protection Act (OG 130/11), Article 39, 4. emissions of pollutants from stationary MENP (integrated pollution prevention and control) 2nd quarter 2012 paragraph 1 sources into the air 32010L0075

Regulation on Amendments to the Regulation on the prevention of major Act on Amendments to the Environmental Directive 96/82/EC of 9 December 1996 on 5. MENP 3rd quarter 2012 accidents involving dangerous Protection Act (2nd quarter 2012) the control of major-accident hazards substances involving dangerous substances

311 31996L0082

3.27.7. Chemicals and GMOs

Legislative activities a) Legislative measures

To be submitted for Competent No. Legislative measure To be aligned with the following acts of the acquis Government authority procedure Act on the Implementation of Regulation (EC) No 1272/2008 of the European Parliament and of the Regulation (EC) No 1272/2008 of the European Parliament and of the Council Council of 16 December 2008 on classification, of 16 December 2008 on classification, labelling and packaging of substances 1. labelling and packaging of substances and MH and mixtures, amending and repealing Directives 67/548/EEC and 1st quarter 2012 mixtures, amending and repealing Directives 1999/45/EC, and amending Regulation (EC) No 1907/2006 67/548/EEC and 1999/45/EC, and amending 32008R1272 Regulation (EC) No 1907/2006 b) Subordinate legislation

To be submitted for Competent Legal basis for the adoption of To be aligned with the following acts of the No. Subordinate legislation Government authority subordinate legislation acquis procedure

312 1. Regulation Amending the Regulation MH Act on Genetically Modified Organisms Commission Decision of 17 June 2011 on the minimum threshold for (OG 70/05 and 137/09), Article 51, authorising the placing on the market of products genetically modified organisms in paragraph 3 containing, consisting of, or produced from products below which the products genetically modified maize MON 89034 × MON placed on the market do not have to be 88017 (MON-89Ø34-3xMON-88Ø17-3) pursuant labelled as products containing to Regulation (EC) No 1829/2003 of the genetically modified organisms (OG European Parliament and of the Council 92/2008, 36/2009, 33/2010 and 88/2011) (2011/366/EU) 32011D0366

Commission Decision of 17 June 2011authorising the placing on the market of products containing, consisting of, or produced from genetically modified cotton GHB614 (BCS-GHØØ2-5) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (2011/354/EU)

st 32011D0354 1 quarter 2012

Commission Decision of 17 June 2011 amending Decision 2006/197/EC as regards the renewal of the authorisation to place on the market existing feed produced from genetically modified maize line 1507 (DAS-Ø15Ø7-1) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (2011/365/EU) 32011D0365

Commission Decision 2011/894/EU of 22 December 2011 authorising the placing on the market of products containing, consisting of, or produced from genetically modified maize Bt11xMIR604xGA21 (SYN-BTØ11-1xSYN- IR6Ø4-5xMON-ØØØ21-9) pursuant to

313 Regulation (EC) No 1829/2003 of the European Parliament and of the Council

Commission Decision 2011/893/EU of 22 December 2011 authorising the placing on the market of products containing, consisting of, or produced from genetically modified maize Bt11xMIR604 (SYN-BTØ11-1xSYN-IR6Ø4-5) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council

Commission Decision 2011/892/EU of 22 December 2011 authorising the placing on the market of products containing, consisting of, or produced from genetically modified maize MIR604xGA21 (SYN-IR6Ø4-5xMON-ØØØ21-9) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council

Commission Decision 2011/891/EU of 22 December 2011 authorising the placing on the market of products containing, consisting of, or produced from genetically modified cotton 281- 24-236x3006-210-23 (DAS-24236-5xDAS- 21Ø23-5) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council

Article 18 of Directive 98/8/EC concerning the List of biocidal products granted Act on Biocidal Products (OG 63/07, 2. MH placing of biocidal products on the market 2nd quarter 2012 marketing authorisation 35/08 and 56/10), Article 23 31998L0008 3. Ordinance on Amendments to the MH Act on Biocidal Products (OG 63/07, Ordinance on the list of existing active 35/08 and 56/10), Article 7, paragraph 2 Commission Directive 2011/10/EU of 8 February substances permitted in biocidal 2011 amending Directive 98/8/EC of the products (OG 90/08, 28/09, 36/10 and European Parliament and of the Council to 1st quarter 2012 31/11) include bifenthrin as an active substance in Annex I thereto.

314 32011L0010

Commission Directive 2011/11/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include (Z,E)-tetradeca-9,12-dienyl acetate as an active substance in Annexes I and IA thereto

32011L0011

Commission Directive 2011/12/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include fenoxycarb as an active substance in Annex I thereto

32011L0012

Commission Directive 2011/13/EU of 8 February 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include nonanoic acid as an active substance in Annex I thereto

32011L0013

Commission Directive 2011/71/EU of 26 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include creosote as an active substance in Annex I thereto

32011L0071

Commission Directive 2011/66/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include 4,5-Dichloro- 2-octyl-2H-isothiazol-3-one

315 as an active substance in Annex I thereto

32011L0066

Commission Directive 2011/67/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include abamectin as an active substance in Annex I thereto

32011L0067

Commission Directive 2011/69/EU of 1 July 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include imidacloprid as an active substance in Annex I thereto

32011L0069

32011L0078

Commission Directive 2011/79/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include fipronil as an active substance in Annex I thereto

32011L0079

Commission Directive 2011/80/EU of 20

316 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include lambda-cyhalothrin as an active substance in Annex I thereto

32011L0080

Commission Directive 2011/81/EU of 20 September 2011 amending Directive 98/8/EC of the European Parliament and of the Council to include deltamethrin as an active substance in Annex I thereto

32011L0081 Commission Decision of 1 July 2011 concerning Ordinance on Amendments to the the non-inclusion of certain substances in Annex Ordinance on the list of existing active Act on Biocidal Products (OG 63/07, 4. MH I, IA or IB to Directive 98/8/EC on biocidal 1st quarter 2012 substances not permitted in biocidal 35/08 and 56/10), Article 7, paragraph 2 products (2011/391/EU) products 32011D0391 Commission Regulation (EU) No 207/2011 of 2 March 2011 amending Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (Diphenylether, pentabromo derivative and PFOS) 32011R0207 List on Amendments to the List of MH Chemicals Act (OG 150/05, 53/08 and 5. dangerous chemicals whose placing Commission Regulation (EU) No 366/2011 of 14 1st quarter 2012 94/11), Article 53, paragraph 2 on the market is prohibited or April 2011 amending Regulation (EC) No restricted Regulation (EU) No. 207/2011, Commission1907/2006 Regulation of the European(EU) No. Parliament366/2011, and Commission of Regulation (EU) No. 494/2011) and Regulation (EC) No.. 1102/2008) the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (Acrylamide) 32011R0366

Commission Regulation (EU) No 494/2011 of 20 May 2011 amending Regulation (EC) No

317 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (Cadmium) 32011R0494

Regulation (EC) No 1102/2008 of 22 October 2008 of the European Parliament and of the Council on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury 32008R1102 Commission Regulation (EU) No 143/2011 of 17 February 2011 amending Annex XIV to Regulation (EC) No 1907/2006 of the European List of substances subject to MH Chemicals Act (OG 150/05, 53/08 and Parliament and of the Council on the 6. 1st quarter 2012 authorisation at the European Union 94/11), Article 53a Registration, Evaluation, Authorisation and level Restriction of Chemicals (REACH)

32011R0143 Commission Regulation (EU) No 214/2011 of 3 March 2011 amending Annexes I and V to Regulation (EC) No 689/2008 of the European Parliament and of the Council concerning the export and import of dangerous chemicals 32011R0214 Ordinance on Amendments to the Chemicals Act (OG 150/05, 53/08 and 7. Ordinance on the import and export of MH 1st quarter 2012 94/11), Article 55c, paragraph 4 Commission Regulation (EU) No 834/2011 of 19 dangerous chemicals (OG 73/09 and August 2011 amending Annex I to Regulation 104/10) (EC) No 689/2008 of the European Parliament and of the Council concerning the export and import of dangerous chemicals

32011R0834 Commission Regulation (EU) No 286/2011 of 10 Chemicals Act (OG 150/05, 53/08 and 8. Ordinance on classification, labelling MH March 2011 amending, for the purposes of its 2nd quarter 2012 94/11), Article 28, paragraph 2 and packaging of dangerous chemicals adaptation to technical and scientific progress,

318 (OG 64/11) Regulation (EC) No 1272/2008 of the European Parliament and of the Council on classification, labelling and packaging of substances and mixtures 32011R0286

Commission Regulation (EU) No 1152/2010 of 8 December 2010 amending, for the purpose of its adaptation to technical progress, Regulation Ordinance on Amendments to the Chemicals Act (OG 150/05, 53/08 and (EC) No 440/2008 laying down test methods 9. Ordinance on classification, labelling MH 2nd quarter 2012 94/11), Article 28, paragraph 2 pursuant to Regulation (EC) No 1907/2006 of and packaging of dangerous chemicals the European Parliament and of the Council on (OG 23/08, 64/09 and 113/10) the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) 32010R1152

319 3.28. CONSUMER AND HEALTH PROTECTION

3.28.1. Consumer protection

With a view to alignment with the acquis in the field of consumer protection, the Proposal of the Act on Amendments to the Consumer Protection Act (OG 79/07, 125/07, 75/09, 79/09, 89/09, 133/09), implementing Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts, will be submitted for Government procedure in the first quarter of 2012.

In the course of 2012, the existing legislative framework in the field of consumer protection is planned to be aligned with Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC.

In the Ministry of the Economy, implementation continues of the project on the toll-free telephone line which operates twice a week for two hours, providing expert advice to consumers on consumer-related problems.

Maintenance and further enhancement of the Central Information System for Consumer Protection continues. Recruitment of two volunteers is planned for the purposes of monitoring the acquis in the field of consumer protection and the implementation of consumer policy.

In the coming period, training of employees of the organisational unit of the Ministry of the Economy involved in consumer protection tasks will continue through workshops and seminars organised by the European Commission and carried out by the Academy of European Law for employees of state administration bodies in charge of creating consumer protection policies.

In addition to the above, Department employees are also being continuously trained in the Training Centre for Civil Servants at the Central State Office for Administration of the Republic of Croatia.

Market surveillance

In 2012, the State Inspectorate will carry out surveillance of the application of the provisions of the Consumer Protection Act, the Consumer Credit Act, and other regulations protecting consumers' economic interests, in accordance with the operational plans. In addition to regular and targeted surveillance, actions will also be taken on the basis of consumers' reports, protecting thereby individual consumers' rights, and measures will be taken in cases where infringement of collective consumers' rights is uncovered.

In the field of surveillance of the implementation of the provisions of the General Product Safety Act, in 2012 surveillance will be carried out in particular with regard to products intended for children. In addition to administrative surveillance, sample testing of products will be conducted to verify compliance with general safety requirements for products placed on the market in the Republic of Croatia.

320 With regard to the use and further development of databases and information systems, the following activities will be carried out during 2012: - Improving databases, especially with regard to the application of the State Inspectorate "e-register" software in the work of market inspectors; - Further preparations within the National Contact Point for the Rapid Exchange System for official notifications on products that pose a serious risk to the health and safety of consumers (RAPEX national contact point), located in the head office of the State Inspectorate, and co-operation with other contact points for RAPEX with a view to ensuring preparedness for the application of RAPEX as of the date of the accession of the Republic of Croatia to the European Union; - Participation in activities organised by the HR RASFF National Contact Point, located in the Ministry of Agriculture, with a view to training employees of the State Inspectorate designated to carry out tasks pertaining to HR RASFF. With regard to preparations for the implementation of Regulation (EC) No 2006/2004 concerning the cooperation between EU Member States in cross-border infringements, the State Inspectorate as the designated Single Liaison Office will carry out preparations during 2012 to ensure the Office is operational as of the date of the accession of the Republic of Croatia to the EU.

In the field of the provision of information to consumers and other interested parties, the State Inspectorate will continue to provide information on its activities to consumers by: - Regularly publishing information for consumers on dangerous products in the market of the Republic of Croatia on the State Inspectorate website; - Participating in the My Administration web portal, www.mojauprava.hr, where the State Inspectorate is in charge of the topic "Consumers"; - Regularly providing feature stories for "Consumer Code", a programme aired on national public television (HRT 1); - Participating in the radio show "We‗re All Consumers" aired on Croatian Radio 2, which includes responding live to consumer queries; - Participating in educational and informative activities of local radio shows and programmes on consumer protection, etc.

With the aim of continuously strengthening administrative capacity, the internal training of market inspectors carrying out surveillance in the field of protection of consumers' economic interests will continue in 2012, in co-operation between the Consumer Protection Department and the Training Department.

3.28.1. Health protection

In the course of 2012, the Ministry of Health will continuously work on the transposition of the acquis in the field of health protection. In the fourth quarter, alignment of legislation with the acquis is planned concerning the standards of quality and safety of human organs intended for transplantation (Directive 2010/45/EU of the European Parliament and of the Council of 7 July 2010 on standards of quality and safety of human organs intended for transplantation).

To this end, the existing Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04, 45/09) is to be revised and divided into two new legislative proposals concerning organs on the one hand, and tissues and cells on the other: the Act on Explantation and Transplantation of Human Organs for Therapeutic Purposes, and the Act on Explantation and Transplantation of Human Tissues and Cells for Therapeutic Purposes.

Further activities planned for the fourth quarter, in the field of blood and tissues, include the adoption of the Strategy on Blood and Blood Components (including plasma for production) and several action plans: the Action Plan for plasma collection and use; the Action Plan for the homogenisation of quality and safety of blood and blood components for transfusion therapy; the Action Plan for the supply of blood and blood components in the Republic of Croatia in emergencies; the Action Plan for tissue banking and the Action Plan for standardisation and optimisation of transfusion therapy. These documents will be prepared by the Agency for Medicinal Products and Medical Devices,

321 the Institute of Immunology, the Croatian Institute for Transfusion Medicine, the Croatian Society of Hematology and Transfusion Medicine, and the Agency for Quality and Accreditation in Health Care.

The Ministry of Health will also continue to monitor the adoption of the new acquis at the EU level.

3.28.1. Consumer protection

Legislative activities a) Legislative measures

Competent To be submitted for No. Legislative measure To be aligned with the following acts of the acquis authority Government procedure

Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term Act on Amendments to the Consumer 1. ME holiday product, resale and exchange contracts 2nd quarter 2012 Protection Act 32008L0122 Deadline for the alignment of Member States with this Directive: 23 February 2011 Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on Act on Amendments to the Consumer credit agreements for consumers and repealing Council Directive 87/102/EEC 2. MF 2nd quarter 2012 Credit Act 32008L0048 Deadline for the alignment of Member States with this Directive: 12 May 2010

322 Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Recruitment of two volunteers is planned, and in the meantime co- operation in carrying out certain activities will continue with members of ME 4th quarter 2012 State Budget the academic community EDUCATION AND TRAINING Further training of employees of the organisational unit of the Ministry of State Budget, funds from the EU Pre- ME 2012 the Economy engaged in consumer protection tasks accession programmes Professional training of market inspectors in the field of consumer SI 2012 - protection TECHNICAL AND IT EQUIPMENT Continued operation of the toll-free telephone line providing advice to ME 2012 HRK 5,000.00 consumers Maintenance and enhancement of the Central Information System for ME 2012 HRK 200,000.00 Consumer Protection

323 3.28.1. Health protection

Legislative activities a) Legislative measures

Competent To be submitted for No. Legislative measure To be aligned with the following acts of the acquis authority Government procedure

Directive 2010/45/EU of the European Parliament and of the Council of 7 July 2010 on Act on Explantation and Transplantation of standards of quality and safety of human organs intended for transplantation 1. MH 4th quarter 2012 Human Organs for Therapeutic Purposes 32010L0045 Deadline for the alignment of Member States with this Directive: 27 August 2012

Commission Directive 2004/33/EC of 22 March 2004 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards certain technical requirements for blood and blood components 32004L0033 Deadline for the alignment of Member States with this Directive: 8 February 2005

Commission Directive 2006/17/EC of 8 February 2006 implementing Directive Act on Explantation and Transplantation of 2004/23/EC of the European Parliament and of the Council as regards certain technical 2. Human Tissues and Cells for Therapeutic MH requirements for the donation, procurement and testing of human tissues and cells 4th quarter 2012 Purposes 32006L0017 Deadline for the alignment of Member States with this Directive: 1 November 2006

Commission Directive 2006/86/EC of 24 October 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council as regards traceability requirements, notification of serious adverse reactions and events and certain technical requirements for the coding, processing, preservation, storage and distribution of human tissues and cells 32006L0086 Deadline for the alignment of Member States with this Directive: 1 September 2007

324 c) Strategies and Action Plans or Programmes

Competent No. Measure To be submitted for Government Procedure authority

Strategy on Blood and Blood Components (including plasma for 1. MH 4th quarter 2012 production)

2. Action Plan for plasma collection and use MH 4th quarter 2012 Action Plan for the homogenisation of quality and safety of blood 3. MH 4th quarter 2012 and blood components for transfusion therapy Action Plan for the supply of blood and blood components in the 4. MH 4th quarter 2012 Republic of Croatia in emergencies 5. Action Plan for tissue banking MH 4th quarter 2012 Action Plan for standardisation and optimisation of transfusion 6. MH 4th quarter 2012 therapy

325 Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Department for Transplantation and Biomedicine – filling posts in State Budget (HRK 149,631.11 – the accordance with the Ordinance on the job description and MH In progress monthly amount for 15 persons) classification scheme in the MHSW

Department for Inspection and Monitoring of Blood, Tissues and Cells, State Budget (HRK 20,202.65 - the monthly Inspection Service – filling posts in accordance with the Ordinance on MH In progress amount for two persons) the job description and classification scheme in the MHSW EDUCATION AND TRAINING IPA 2009 Strengthening Institutional Capacity for Blood, Tissues and MH 2012 50,000 Euro (IPA project funds) Cells TAIEX (organs, blood, tissues and cells) MH 2012 0 (EU funds) Other pre-accession assistance instruments, EU projects and MH 2012 HRK 150,000 + EU funds programmes (Joint Action) TECHNICAL AND IT EQUIPMENT Development of IT programmes for the purposes of implementation of HRK 4,000,000,000 (approximate amount – EU requirements (registers, biovigilance, quality assurance in organ MH 2012 depending on the State Budget) and tissue donor programmes) Procurement of IT equipment for the needs of the Department for Transplantation and Biomedicine and the Inspection and Monitoring MH 2012 HRK 100,000 Department Department for Transplantation and Biomedicine – premises and office MH 2012 State Budget supplies OTHER Reorganisation and strengthening of administrative capacity in the State Budget (HRK 20,202.65 - the monthly Department for Inspection and Monitoring of Blood, Tissues and Cells, MH 3rd quarter 2012 amount for two persons) and expanding its scope of work to organs for transplantation.

326

3.29 CUSTOMS UNION

In the course of 2011, the Customs Administration continued to align the customs system regulations with relevant customs legislation of the European Union. In that respect, the Act amending the Regulation on the implementation of the Customs Act (Official Gazette 29/11), with regard to amendments to the Customs Act implemented in the course of 2010, introduced implementing provisions concerning the entry and exit safety and security summary declarations, the transit procedure and the export procedure using the electronic data exchange system, as well as basic provisions concerning the system of unique registration and identification of economic operators using the EORI number. Furthermore, the amendments to the Regulation on the implementation of the Customs Act also established legal grounds for the adoption of four subordinate acts: Ordinance on specific features with regard to implementing the customs treatment at submitting the entry and exist summary declaration (Official Gazette 62/11), Ordinance on specific features with regard to implementing the transit procedure and export procedure using the electronic data exchange system (Official Gazette 62/11), Ordinance on the conditions and the method of implementing the fallback procedure in the transit and export procedure, adopted in May and July 2011 respectively, and the Ordinance on the EORI number.

The Ordinance on the EORI number, the adoption whereof is scheduled in the second quarter of 2012 shall regulate the system of registration and identification of economic operators and other persons undertaking tasks covered by the customs regulations. Considering that the customs system in its integrity must operate jointly with the EU system by the date of accession of the Republic of Croatia into the EU, as of that date, economic operators may deal with customs authorities of any Member State using solely the EORI number as an identification number. As a result, the Ordinance on the EORI number includes detailed provisions on the method of allocation, structure, and the use of the EORI number, storing and exchange of data in the EORI system and other provisions concerning the EORI system. Meanwhile, activities are planned to be undertaken during 2012 with the scope of drafting national customs provisions for implementing the acquis in Chapter 29 - Customs Union, the adoption whereof falls within the competence of the EU Member States.

Pursuant to the obligations under Articles 15(2) and 130 of the Stabilisation and Association Agreement, prescribing that the EU Combined Nomenclature shall be applied for the classification of goods in reciprocal trade, the Republic of Croatia regularly aligns the nomenclature of its Customs Tariff with the Combined Nomenclature of the European Union. Consequently, by the end of 2012, it will be necessary to adopt the Regulation on the Customs Tariff that will apply in 2013. Thereby alignment will be achieved with the amendments to the Combined Nomenclature, or with the Combined Nomenclature for 2013.

In the first quarter of 2012, it is expected that the Joint Committee of the Convention on a Common Transit Procedure will extend an official invitation to the Republic of Croatia to accede to the 1987 Convention on Common Transit Procedure and the 1987 Convention on the Simplification of Formalities in Trade in Goods. By acceding to these Conventions, the Republic of Croatia will join 31 states (27 EU and 4 EFTA countries) that apply the common transit procedure in international commodities exchange. This will reduce the number of customs documents and customs procedures at border crossings, thus also significantly facilitating commodities exchange with the EU and EFTA states. Pursuant to the provisions of the Convention, the Republic of Croatia is expected to become a party to the agreement and to start applying the Convention on 1 July 2012. In that regard, it is necessary to adopt the respective laws ratifying the said conventions.

Activities planned in 2012 concern the strengthening of administrative capacities in the sense of education and professional development of customs officers in the field of risk management pursuant to the Training Plan. Furthermore, the IPA 2009 Twinning Light project "Aligning the risk analysis system with EU practice" is implemented within the

327 context of strengthening administrative capacities. Implementation of the twinning project started in November 2011 and will last for six months. The twinning partner is the Tax Agency of the Italian Republic. The objective of the twinning project, valued at EUR 250,000.00, is to implement the regulation to improve the risk analysis system as an instrument of control, increase the efficiency of resource allocation and revenue collection and enhance cooperation between the customs and business sectors.

In 2012, the Customs Administration will continue to develop the customs information technology systems related to interconnectivity and interoperability with the information technology systems of the Member States and the European Commission, such as NCTS (New Computerised Transit Procedure), ITMS (Integrated Tariff Management System), ECS (Export Control System), EOS (Economic Operators System, including EORI - the system of electronic identification and registration of economic operators), ICS (Import Control System), CS/RD (Central Services/Reference Data), AIS nationally (Automated customs declarations processing system), Managing guarantees, and Risk analysis management. Furthermore, activities will proceed in the development and adjustment of national customs systems which are necessary for unhindered progress of customs procedures in the pre-accession period and in the period following the accession of the Republic of Croatia to the European Union.

In the course of 2011, the fitting of the Central Customs Laboratory with necessary laboratory equipment purchased within the framework of the IPA 2007 programme continued. Furthermore, in the course of 2011 the implementation of IPA 2007 twinning project ―Customs Laboratory Development‖ was initiated. The aim of the project is to develop administrative and operational capacities of the customs laboratory in compliance with best EU practices. Implementation of the 15-month project will continue during 2012. The purpose of this project is to extend support to the Customs Administration in strengthening operational capacities to more efficiently collect customs revenues through establishing the nature, properties, CN code and value of goods, and to protect society by extending support for the prevention of illegal trade in goods. The above will be accomplished by fitting the customs laboratory with suitable equipment that will be acquired under a goods procurement contract and by extending professional technical assistance to employees of the customs laboratory through the twinning project.

In course of 2012, the delivery of equipment purchased within the framework of the IPA 2007 project entitled ―Purchase of equipment for the suppression of smuggling (HR2007/3/10)‖ will be completed. The objective of this project is to strengthen customs control and supervision over the entire customs territory of the Republic of Croatia in order to prevent and detect violations of customs and excise regulations and to facilitate the implementation of misdemeanour and criminal proceedings. Within the framework of the project, 50 vehicles have already been delivered, including passenger cars, vans (mobile offices), off-road vehicles and vehicles for the transport of official state dogs. Delivery of a mobile X-ray device for inspecting goods in trucks and containers, one seagoing vessel and various detectors of smuggled goods were also delivered. In course of 2012, the delivery of the remaining equipment is expected, which includes seagoing and inland waterway vessels.

With regard to strengthening administrative capacities, the Customs Administration conducts ongoing training for all customs officers in order to ensure professionalism and a high standard of operation. Training activities (seminars, workshops, courses, practical training and expert meetings) are scheduled in accordance with the overall demand for training in all organisational units of the Customs Administration, which serves as a basis for the Plan of Education and Training for Officers of the Ministry of Finance, Customs Administration, of the Republic of Croatia for 2012. The Plan involves all professional fields: Training for trainees and newly recruited officers, Regulations in the field of excise duties, Taxing excise products, Implementing the measures of protecting intellectual property rights, Implementing the CITES Convention and the Nature Protection Act, Combating the smuggling of drugs, Control of cross-border cash transfer and anti-money laundering and combating the financing of terrorism in the Republic of Croatia, Import and export of cultural assets, Basics of bookkeeping and entering operating events into accounts, Application of the risk management system, Proper completion of the SAD and ‗Control check result‘ forms, Dual purpose goods, Border control of nuclear and other radioactive sources using portal monitors, National application of customs quota, Application for customs tariffs and other sources of information on classification of goods accessible via the Internet, Ordinance on veterinary requirements for the movement of

328 pets, Radiation protection control, X-ray truck handling, Training of senior government officials, Post-clearance control checks - implementing fiscal control, Enforcing the authority to stop vehicles, Training courses and professional development for authorized customs officers for enforcing coercive measures, Instruction note for enforcing goods clearance procedures, Simplified declaration procedures TAIEX "Anti-corruption measures in the customs service", Relief from payment of customs duty, International passenger traffic, Implementing the new Environmental Protection Act aligned with EU legislation in cases of criminal offences against the environment, Traditional financial resources 'A' and 'B' accounts, Transit procedures in the EU and NCTS, Use of IT application, IPA programme of the European Union for Croatia - Strengthening the anti- corruption activity of Customs Administration, and Evidence taking actions and filing criminal charges pursuant to provisions of the Criminal Proceedings Act.

a) Legislative activities

Competent To be submitted for No. Legislative measure To be aligned with the following acts of the acquis authority Government procedure

Act Ratifying the Convention on a 1 MF - CA Convention on a Common Transit Procedure of 20 May 1987 (OJ L 226, 13.8.1987) 2nd quarter 2012 Common Transit Procedure Act Ratifying the Convention on Convention on the Simplification of Formalities in Trade in Goods of 20 May 1987 (OJ L 134/87, 2 the Simplification of Formalities in MF - CA 2nd quarter 2012 22.5.1987) Trade in Goods

b) Subordinate legislation

To be submitted Competent Legal basis for the adoption of for No. Subordinate legislation To be aligned with the following acts of the acquis authority subordinate legislation Government procedure Commission Regulation (....) amending Annex I of Council Regulation (EEC) No 2658/87 on the tariff and statistical Regulation on the Customs Tariff ME Regulation on Customs Tariff (OG 1 nomenclature and on the Common Customs Tariff (Combined 4th quarter 2012 for 2013 61/00, 117/00, 119/00, 146/08) Nomenclature) - Regulation No unknown, Combined Nomenclature is adopted in October of the current year for the coming year.

329 Commission Regulation (EC) No 312 of 16 April 2009 amending Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (OJ L 98, 17.4.2009) CELEX No 32009R0312 Regulation on the implementation of

the Customs Act (Official Gazette 2 Ordinance on the EORI number MF - CA 2nd quarter 2012 161/03…29/11) Commission Regulation (EC) No 169 of 1 March 2010 amending Regulation (EEC) No 2454/93 laying down provisions for the

implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (OJ L51 2.3.2010) CELEX No 32010R0169

Administrative capacity

Adoption/implementation Measure Competent authority Budget funding planned deadline EDUCATION AND TRAINING Training implemented pursuant to the Plan of development and professional training for officers of the Ministry of Finance, Customs Administration of the MF - CA continuous Funds provided through regular activity Republic of Croatia for 2012

330 3.30. EXTERNAL RELATIONS

The State Office for Trade Policy submits a Report on the implementation of the Action Plan for the remaining preparations to align the legislation and international agreements with the acquis communautaire to the Government of the Republic of Croatia for adoption twice a year. The Government of the Republic of Croatia will adopt the eighth Report on the implementation of the Action Plan for the period from 1 December 2011 to 31 May 2012 in June 2012, and the ninth Report on the implementation of the Action Plan for the period from 1 June to 30 November 2012 in December 2012, and will forward both Reports to the European Commission. In 2012, the Republic of Croatia will also continue to align bilateral agreements on trade and economic co-operation and bilateral agreements on the promotion and mutual protection of investments with the acquis communautaire. Pursuant to statutory authorisation, in November 2012 the Government of the Republic of Croatia will adopt the Regulation on Customs Tariff for 2013. These will determine the customs duties, taking into account the commitments assumed within the World Trade Organisation and other international agreements concluded by the Republic of Croatia, and the interests of the Croatian economy. As a Party to CEFTA, the Republic of Croatia will actively participate in all activities and initiatives related to the implementation of the Agreement, and in the implementation of other free trade agreements applied by the Republic of Croatia. In 2012, the State Office for Trade Policy will continue to analyse the impacts of Croatian membership in the European Union on traditional trade flows, in order to prepare future negotiations on amendments to the Stabilisation and Association Agreements with CEFTA countries, i.e. the Enlargement Protocols. There are no additional activities planned for 2012 in the area of legal alignment of trade policy with the acquis communautaire, as the Trade Act adopted in 2008 (OG 87/08) already provided for all the preconditions necessary for direct application of the EU legislation from the date of Croatia's membership in the European Union. Administrative capacities will be strengthened continually through training provided to civil servants in the area of trade policy, in particular for the implementation of trade policy measures, for participation in EU structures and for presenting Croatia's positions in EU preparatory bodies. The Act on Exports of Dual-use Items (OG 100/04 and 84/08) is aligned with the European Union regulations, notably with Council Regulation (EC) No 428/2009 of 9 May 2009, as the Croatian officials drawing up the 2008 amendments to the Act used the proposal of provisions of the new Council Regulation (EC) 428/2009 and the assistance of European Union legal experts within a EU project on the control of dual-use items. Furthermore, the Regulation on the Amendments to the List of Dual-use Items (OG 3/10) is aligned with Annex I of Council Regulation (EC) No. 428/2009 of 9 May 2009. The training of civil servants engaged in the control of dual-use items will continue. The first seminar on brokering will take place in Zagreb at end January 2012. In addition, training will continue on the implementation of the Internal Control Programme intended for companies in Croatia, so as to prepare the domestic industry for participation in the European Union common market. The policy of international development cooperation and external humanitarian aid of the Republic of Croatia is implemented pursuant to the objectives and instruments foreseen by the Act on Development Cooperation and External Humanitarian Aid from 2008 (OG 146/08) and the National Strategy of Development Cooperation of the Republic of Croatia for the period 2009 to 2014.

331 The increase of financial resources for Croatia‘s official development assistance is expected in forthcoming years, in particular for projects in which Croatia has a competitive advantage or specific know-how that could be useful for less developed countries, such as experience in political and economic transition, specific experience in health care in war and post-war periods, and education, professional training and technical assistance. The modalities for cooperation with the private sector aimed at defining public-private partnership and innovative financing mechanisms will be developed in the following period. Also during this time, the visual identity (logo) and the motto of Croatia‘s official development assistance will be selected within the planned tender for the visual identity in early 2012, thus contributing to greater transparency of Croatia‘s official development assistance. The Action Plans planned to be drawn up in the fourth quarter of 2011, pursuant to the National Programme for the Adoption and Implementation of the acquis communautaire, were moved to the first and second quarter of 2012. The Department for International Development Cooperation of the Ministry of Foreign and European Affairs works systematically on education and training in accordance with its financial abilities. Furthermore, the Department is working on the gradual strengthening of administrative capacities. Consequently, the number of employees in the department was increased from 5 to 6 in 2011. Regular coordination meetings with the Interdepartmental Working Group on Development Assistance are held to inform its members on the possible activities that can be taken in their respective areas.

Legislative activities b) Subordinate legislation To be Competent Legal basis for the adoption of To be aligned with the following acts of the submitted for No Subordinate legislation authority subordinate legislation acquis Government procedure Commission Regulation (....) amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff Act on Customs Tariff (OG 61/00, 117/00, SOTP and statistical nomenclature of the Common Customs 119/00, 146/08), Art. 6 Regulation on Customs Tariff for 2013 MA Tariff (Combined Nomenclature) 4th quarter 2012 1. MF-CA CELEX number – unknown. The Combined Nomenclature is adopted in October of the current year for the following year.

332 c) Strategies and Action Plans of Programmes

No Measure Competent authority To be submitted for Government procedure

Report on the implementation of the Action Plan for the remaining 1. preparations to align legislation and international agreements with the SOTP 2nd and 4th quarter 2012 acquis communautaire for Chapter 30 – External Relations

Implementation Programme of the National Strategy of Development MFEA 2nd quarter 2012 2. Cooperation of the Republic of Croatia for 2012

Report on the implementation of the National Strategy of Development 3. MFEA 1st quarter 2012 Cooperation of the Republic of Croatia for 2012 Implementation Programme of the National Strategy of Development 4. MFEA 4th quarter 2012 Cooperation of the Republic of Croatia for 2013 Report on the implementation of official external development assistance of 5. MFEA 4th quarter 2012 the Republic of Croatia in 2011

Administrative capacities

Adoption/implementation Measure Competent authority Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Creation of new work posts in the State Office for Trade Policy with the aim of strengthening administrative capacities for Croatia‘s participation SOTP 3rd quarter 2012 in the EU common commercial policy. Creation of new work posts in the Directorate for Multilateral Affairs with the aim of strengthening administrative capacities of the Department for MFEA 4th quarter 2012 International Development Cooperation, and consequently, the increase in activities for development cooperation and external humanitarian aid.

333 EDUCATION AND TRAINING Regular education of all civil servants engaged in the control of dual-use SOTP Continuous items A regional seminar related to brokering of dual-use items and weapons Within the framework of EXBS will be held in Zagreb. It is intended for civil servants engaged in licence MFEA, SOTP 25-26 January 2012 issuance, foreign policy, defence and the police. programme of the USA BAFA, within the framework of the Seminar on the implementation of the European Union restrictive long-term EU cooperation project SOTP 2nd quarter 2012 measures related to control of exports of dual-use items ―Assistance in the control of exports of dual-use items‖ Regular education of civil servants engaged in trade policy SOTP Continuous implementation (seminars, workshops organised by the WTO) The proposal of the educational programme for 2012 has been prepared. It provides for the continuation of administrative strengthening of customs officials through seminars on the control of exports of dual- use items. It is planned that a one-day seminar be held each quarter as a basic seminar for customs officials not previously participating in MF-CA Continuous seminars on the control of dual-use items. The seminar is organised by the Training Centre of the Customs Administration on topics which include: legal framework, recognition of goods and WMD, restrictive measures, auxiliary tools for the control and risk analysis. Regular education of all civil servants engaged in the planning and MFEA Continuous implementation of international development cooperation projects Regular training implemented through fora, seminars and workshop in MFEA Continuous cooperation with bilateral and multilateral donors TECHNICAL AND IT EQUIPMENT Regular maintenance of the existing IT infrastructure related to Internal SOTP Continuous Control Programme within the export control framework

334 3.31. FOREIGN, SECURITY AND DEFENCE POLICY

3.31.1. Common Foreign and Security Policy (CFSP) During 2012, the Republic of Croatia expects to take an important step forward in compliance with and implementation of the Common Foreign and Security Policy of the EU. The signing of the Accession Treaty in December 2011 enabled the Republic of Croatia to take part in most of the EU Council working groups dealing with foreign, security and defence policy, as well as in the meetings of the Political and Security Committee and working bodies affiliated to the European External Action Service. Given its already high degree of compliance with the Common Foreign, Security and Defence Policy of the EU, changes to the implementation of Croatia's foreign policy are not expected; however, Croatia will face the challenges of establishing an efficient mechanism of aligning its national positions and making certain institutional adjustments, e.g. defining the posts of Political Director and European Correspondent.

3.31.2. Common Security and Defence Policy (CSDP) Croatia will continue its commitment to developing the Common Security and Defence Policy (CSDP) in the forthcoming period and will be particularly interested in taking an active part in all CSDP activities, plans and projects in 2012. As a future Member State of the EU, the Republic of Croatia will continue to support the CSDP in the period ahead through active participation in CSDP missions and crisis management operations, building the defence capacities of the EU and continuing its contribution to further developing the EU Battlegroups (EUBGs) concept. Croatia acknowledges that the CSDP profiles the European Union as a global security and political stakeholder and generally promotes a single European identity. Croatia currently contributes to two civil missions: EUPOL Afghanistan (one police officer performing the task of the Reporting Officer at IPCB-S, and two police officers who have successfully completed the selection procedure and will be deployed in the mission area at the beginning of March 2012) and EULEX Kosovo (four police officers contributing to the EU Civil Mission in Kosovo, aiding the establishment of the rule of law in Kosovo). Croatia also contributes to the EUNAVFOR Somalia-ATALANTA Military Mission (one HQ officer is located in the Operational Headquarters at Northwood, UK). Following the decision of the Croatian Parliament of 10 December 2010, Croatia may contribute up to five members of the Croatian Armed Forces to the ATALANTA operation in 2011 and 2012. Croatia continues to examine the possibilities for additional involvement and continues to negotiate with bilateral partners on the additional deployment of officers on the Member States' ships performing the operation. In addition, in order to strengthen the operational capacities of the EU's engagement in Kosovo, the Croatian Government has decided to sell six armoured personnel carriers, two of which have already been contributed to the EULEX operation in Kosovo, as well as an additional four armoured personnel carriers. Concluding a sales contract for six armoured personnel carriers is in its final stage. The co-operation and participation of Croatia's police and judicial personnel in the EULEX mission to Kosovo is expected to continue in 2012. Besides participation in operations and missions, Croatia actively contributes to the development of EU Battlegroups (EUBGs). The Republic of Croatia is particularly interested in trends and efforts aimed at raising the efficiency and functionality of EUBGs. In this context, in June 2011 the Republic of Croatia – in co-operation with the Republic of Poland as the country then holding the EU Presidency – organised a special seminar on EU Battlegroups to discuss the functionality and flexibility of the EUBG concept.

335 Croatia first participated in the EUBGs within the Nordic Battlegroup that was on stand-by status from early 2011 to 30 June 2011. The contribution included two helicopters along with MEDEVAC teams (medical evacuation teams). Furthermore, the Republic of Croatia is preparing for involvement in an EUBG under Germany's leadership, which will be on stand-by status in the second half of 2012. The contribution to the said BG means the deployment of approximately 250 soldiers. A Memorandum of Understanding on the principles of the establishment and operations of an EU Battlegroup under Germany's leadership was signed on 19 July 2011. In addition, the planned training activities have continued as part of the preparation process for involvement in the said EUBG. As a future EU Member State, following an initiative launched by the Weimar letter in connection with NATO-EU co-operation, EUBG development, EU capacities, civilian- military capacities and the Ghent initiative for defence restructuring through bilateral, regional and/or European co-operation, Croatia seeks to actively contribute to strengthening the defence capacities and capabilities of the EU in crisis management operations, in particular through the model of multinational co-operation. In this context, Croatia, together with five Central European states (Austria, the Czech Republic, Hungary, Slovakia and Slovenia) is exploring the opportunities and solutions for joint capacity building through a multinational approach (pooling and sharing). The basic intention is to contribute to maintaining, strengthening and further specialising the defensive capacities of these states in the circumstances of financial crisis and defence budget cuts. The mentioned pooling and sharing initiative is currently in the phase where Central European states are striving to put selected areas of co-operation into operation. In 2011, the Republic of Croatia attended four regional roundtables (in Budapest, Brussels, Sopot in Poland and Brno in the Czech Republic) of Defence Policy Directors in an effort to determine and identify necessary actions at the national level with a view to establishing co-operation with partner states in specific defence fields. Against this background, Croatia offered several areas of co-operation related to education programmes, logistics, co-operation in pilot training and special forces training. In addition, members of the initiative held a meeting with representatives of an EU expert group in Vienna in October 2011 to acquaint them with concrete areas of co-operation within the initiative in question. In addition, in the field of multinational defence capacity development, Croatia, as a NATO Member State, participates in NATO's Smart Defence concept.

Croatia takes part in the EU maritime military operation along Somalia's shores (EUNAVFOR Somalia – ATALANTA) to suppress pirate activity and increase navigation safety. One officer of the Croatian Navy is located in the Operational Headquarters at Northwood (UK). Croatia also provides continuous logistic support (host nation support) for the implementation of two EU missions in Bosnia and Herzegovina: the military mission (EUFOR ALTHEA) and the civil mission (EUPM). Concerning high-level meetings, Croatia participates regularly in the Political Dialogue of Defence Ministers of Candidate Countries and non-EU Member States of NATO with the High Representative for EU Foreign Policy and Vice-President of the EC. Croatia also participates in meetings of the expanded EU Military Committee (EUMC) and of the Political and Security Committee (PSC). Regarding regional co-operation in the field of defence and security, Croatia will remain an active participant in numerous regional initiatives, such as SEDM (Southeast European Defence Ministerial), SEECP (South-East European Co-operation Process), the Quadrilateral (observer status in MLF), PSOTC (Peace Support Operations Training Centre), SEEC (Southeast Europe Clearinghouse), ADRION (Adriatic and Mediterranean Project), V-RMTC (Virtual Regional Maritime Traffic Centre), and the US-Adriatic Charter (A5) established within the context of support to the Euro-Atlantic aspirations of the countries in the region.

336 3.31.3. NATO As a Member State of NATO and a future Member State of the EU, Croatia strongly supports and seeks to contribute to the development of NATO-EU co-operation in the defence sector, especially in the field of defence capacity building and co-operation in operations. Developing a strategic partnership between the EU and NATO is of paramount importance to the Republic of Croatia.

As a responsible member of NATO, the Republic of Croatia continued its active contribution to allied operations in 2011. On 10 December 2010, the Croatian Parliament approved an increase in the Croatian contingent in the ISAF operation in Afghanistan from 320 to 350 members of the Croatian Armed Forces to support the successful implementation of the transition of responsibility for security in Afghanistan to Afghan authorities by 2014. Recognising the importance of building the Afghan security sector as one of the pillars of successful transition in Afghanistan, Croatia is heavily engaged in providing support and training to the Afghan National Security Forces. Croatia has been intensively involved in the field of education and training of Afghan security forces for several years; as of this year, involvement has been further intensified by the engagement of mentoring teams and the involvement of Croatian troops in the newly established schools of the Afghan National Army, which is aimed at making a key contribution to the development and professionalisation of Afghan security forces. As part of its engagement in Afghanistan, almost 50% of Croatian forces carry out training and mentoring activities for Afghan security forces – army and police forces within the NATO Training Mission (NTM-A),14 which is fully consistent with the foreseen stages of ISAF operations development.

The 18th Croatian contingent is currently in Afghanistan, numbering approximately 350 members of the Croatian Armed Forces. In 2011, in the context of direct support to institutional training of Afghan security forces, the Republic of Croatia took over the leading nation role in the ANA Military Police School in Kabul. The Military Police School is one of approximately ten service training institutions whose mentoring is the responsibility of the NATO Training Mission in Afghanistan and which are critical to raising the professionalism and specialisation of the Afghan National Army. A specific feature of this project relates to the fact that the Republic of Croatia began to intensely develop the Military Police School by inviting countries in the region to engage in co-operation and joint involvement. Croatia started bilateral talks and consultations with the member states of the US-Adriatic Charter (Montenegro, Albania, Macedonia and Bosnia and Herzegovina) in 2010, and all the member states responded positively and made their contribution more concrete by ensuring mentors for the Military Police School when the 18th Croatian contingent was deployed in September 2011, except for Bosnia and Herzegovina, which plans to engage mentors in February 2012. A Memorandum of Understanding among participants of the Military Police School in Kabul on the sidelines of a two-day meeting of NATO defence ministers was signed in Brussels on 6 October 2011 by the Ministers of Defence of Croatia, Macedonia, Montenegro and Albania. Slovenia – which had signed the Memorandum earlier – also participates in this initiative, as does Bosnia and Herzegovina, which subsequently acceded to the Memorandum by signing the Accession Letter at a meeting of the Defence Ministers of the US-Adriatic Charter in Drač, Republic of Albania, on 9 December 2011. Currently, within the Military Police School in Kabul, in which the Republic of Croatia is a leading nation, there are around 30 mentors for the training of Afghan military police forces, 20 of whom are from the Croatian Armed Forces, two from Montenegro, two from Slovenia, one from Albania, and three from Macedonia, which intends to deploy an additional six instructors in 2012. Bosnia and Herzegovina is expected to send 10 instructors during 2012.

14 Key components of the Croatian contingent, which directly support NTM-A and the transition process in Afghanistan are: the Military Police School (Kabul), POMLT-Province (AUP14-Balkh), POMLT District (AUP-Chahar Bolak/Balkh), OMLT at the level of infantry battalion/Kandak (Mazar-e Sharif), OMLT for combat support (Mazar-e Sharif), OMLT for mentoring garrison command (Mazar-e Sharif), Mi-17 Mentoring team (Kabul), Mentoring team for artillery/ D- 30 (Kabul – from March 2011),Mentoring team in the School of Logistics (Kabul), Mentoring team in the School for Engineering Corps (Mazar-e Sharif).

337 The Republic of Croatia is also examining the possibility of contributing to ANA development by training Afghan pilots, flight instructors and technicians on Croatian territory. The intention is to pursue efforts aimed at ANSF training and professionalism and developing a sustainable security system and institutions, which is of paramount importance for a successful transition process. In addition to members of the Croatian Armed Forces, the Republic of Croatia currently has one diplomat and members of the civilian police within ISAF. Since January 2005, Croatian diplomats have been engaged as Deputy Heads of the Provincial Reconstruction Team (PRT) Feyzabad under Germany's leadership in the Badakshan province. During 2012, it is planned to relocate the Croatian diplomat to the Office of the High Civil Representative at the NATO Command in northern Afghanistan (RC North) in Mazar- e-Sharif.

In line with the Decision of the Croatian Government, in September 2010 the involvement of MI members was expanded further with the deployment of police officers in the NATO/NTM-A mission where, together with members of the Croatian Armed Forces, they take part in mixed military and police mentor and liaison teams – POMLT – and work on building the capacities of Afghan security forces. There are four police officers in each rotation.

In addition to involvement in Afghanistan, Croatia supported the NATO operation "Unified Protector" in Libya, whose primary goal was to prevent the suffering of the civilian population of Libya. In May 2011, the Croatian Parliament approved the deployment of two members of the Croatian Armed Forces in the said operation. They were sent to the Air Operations Centre at Poggio Renatico, Italy, in June 2011. The involvement of members of the Croatian Armed Forces was completed following a decision of the NATO North Atlantic Council to end the ―Unified Protector‖ operation on 31 October 2011.

As of June 2009, Croatia has participated in the NATO peacekeeping operation in Kosovo – KFOR – with 20 members of its Armed Forces and two Mi-171 Sh helicopters. According to the Decision of the Croatian Parliament of 27 May 2011, up to 25 members of the Croatian Armed Forces may be sent to KFOR in 2011 and 2012 with two helicopters of the Croatian Air Force and Air Defence with the possibility of rotation. Consequently, Croatia increased its involvement in the KFOR operation through the engagement of personnel in the KFOR Headquarters in early November 2011. Croatia also supports the Active Endeavour operation (OAE) in the Mediterranean through an exchange of information on maritime traffic in the Adriatic Sea with the Component Command Maritime at Naples (Component Command Maritime of Allied Joint Force Command, CCMAR).

3.31.4. UN

Following the signing of a Memorandum of Understanding between the Croatian Government and the UN concerning Croatia‘s contributions to the UN stand-by arrangements system on 5 September 2002, Croatia plans to continue deploying its police officers in the UN peace missions to Haiti, East Timor and Cyprus throughout 2012, as well as to possibly expand its participation in the said missions if this is called for by the UN, depending on the country's available capacities.

The Croatian Ministry of the Interior will continue to organise and conduct the UN Police Officers Course (UNPOC), the main objective of which is to provide basic training for police officers prior to their deployment in UN peace missions. In 2011, UNPOC Croatia was organised for the second time and financed in co-operation with UNDP Croatia. The certificate of UNPOC Croatia‘s alignment with UN standards, which expired in 2011, was extended. Co-operation with the Ministry of Defence in this particular training

338 segment continued. In connection with expanding the capacities of the countries of Southeast Europe as regards the participation of their police officers in international peacekeeping missions, the Ministry of the Interior sent a team of instructors to Montenegro which organised and fully carried out the first peace missions course based on the norms and standards of UNPOC. During 2012, the Ministry of the Interior intends to conduct an international UNPOC course, a ―training of trainers‖ course to serve the needs of courses for UN peace missions, and two English language courses for police officers deployed in peace missions.

3.31.5. National Strategy and Action Plan for the Control of Small Arms and Light Weapons The Ministry of the Interior of the Republic of Croatia has set up a working group for SALW (Small Arms and Light Weapons) monitoring and implementation, which monitors the timely and high-quality implementation of the National Strategy and Action Plan for the Control of Small Arms and Light Weapons. Informing the public and raising public awareness The campaign ―Fewer weapons – fewer tragedies‖ was continued as planned in the previous period. The campaign is financially supported by UNDP through the regional EU project "SEESAC arms control in the Western Balkans". During the campaign, the Ministry of the Interior and UNDP jointly agreed to modify the visual identity by preparing new visuals for posters, leaflets and other promotion materials. The campaign "Fewer weapons – fewer tragedies" has been recognised as the most successful campaign in the region and was presented as a success story in the 2010 annual report of the UNDP chief administrator in New York. In addition, countries in the region are using the implementation concept of the campaign ―Fewer weapons – fewer tragedies‖. The campaign, in co-operation with UNDP, is envisaged to end with the last scheduled event in Split on 10 December 2011, since the campaign was financed in 2010 and 2011 through the EU regional project "SEESAC arms control in the Western Balkans―, which comes to an end at the close of 2011. Destruction of illegal small arms and light weapons Following the commitments under the National Strategy and Action Plan for the Control of Small Arms and Light Weapons, along with the Report that has been submitted to the Croatian Government by the National Commission on SALW and within the FP 9 Functional area (Study and assessment of risks connected with small arms and light weapons and their influence on society), the Croatian Ministry of the Interior has the obligation to establish a special expert group to make a more realistic assessment of the number of small arms and light weapons illegally possessed by Croatian citizens and to develop a methodology that may be used by other countries in the region for such assessments. Regarding these issues, in its publication ''Research on Small Arms and Light Weapons in Croatia'' of 2006, SEESAC published an assessment of the large number of unregistered weapons in the possession of citizens. As the action of the voluntary return of weapons possessed by citizens has continued ever since, it is necessary to make a new assessment of the number of weapons illegally possessed by citizens. As the said assessment requires additional funds, the Ministry of the Interior proposes to finance these activities through the project ''SALW control in the Republic of Croatia: Support to the Implementation of the National Strategy for the Control of Small Arms and Light Weapons'', jointly carried out by the Ministry of the Interior and UNDP.

339 In line with the above, the Ministry of the Interior and UNDP have prepared Terms of Reference regarding the research and identification of small arms and light weapons illegally possessed by citizens. Project implementation will begin in accordance with the UNDP's financial scheme and capacities for 2012. The Commission of the Ministry of the Interior deciding on weapons confiscated based on a judgment with the force of res judicata in an administrative, misdemeanour or criminal procedure and on the arms returned to the Ministy of the Interior in 2011 continued to destroy part of the collected firearms (short barrel firearms – pistols and revolvers; and long barrel firearms – automatic rifles, hunting rifles, military rifles, machine guns, air rifles and handmade guns). The plan for 2012 is to destroy 1,000 weapons per month. Strengthening physical and technical protection of facilities (video surveillance, burglar alarm systems, etc.) In 2011, a technical protection system for the warehouse "Murat" at Jastrebarsko was introduced, including digital imaging and data storage with the goal of gaining insight, analysing and reconstructing permitted activities in the regular work process as well as illegal and unauthorised activities. Activities planned within the project implemented by the Ministry of the Interior in co-operation with UNDP have been carried out. The project relates to the implementation of the project task that began in the fourth quarter of 2010 or the first quarter of 2011. Recognising the importance of the storage of weapons and ordnance, the Minister of the Interior issued Decision No. 511-01-152-27052/1-2011 of 27 April 2011 establishing a Working Group to develop a strategy on storage operations, and an operational implementation plan of the Project to improve business operations in the weapons and ordnance warehouses of the MI for the period between 2011 and 2015. The task of the Working Group was to determine the current state of storage capacities and the structure of the existing stored goods, as well as to describe the current business processes and responsibilities for managing warehouse operations with the existing personnel structure in the weapons and ordnance warehouses. Based on an analysis of collected data, the Working Group should prepare a draft business strategy in the weapons and ordnance warehouses of the Ministry of the Interior for the period from 2011 to 2015, which will contain a proposal of the needed storage capacities by territorial distribution, indentify storage capacities, propose management methods for stored goods, and make a proposal for an appropriate structure and organisation of warehouses with a description of the target personnel structure, as well as a proposal of potential normative grounds for the full implementation of the Strategy. In order to further improve the system of export controls in 2012, it is planned to amend the existing Act on the Export and Import of Military-Use Items and Non-Military Ordnance so as to benefit from the experiences gained from the application of this Act in the last three years. In order to facilitate the movement of defence products within the European Union, a special law on the transfer of defence products within the EU is to be adopted. With regard to administrative capacity building, it is planned to increase the number of employees in the Department for Weapons and Licences of the Ministry of the Economy from the existing six to eight, as well as to urgently recruit three new employees in the Department. Seminars on export controls are to be held at the end of 2012, where novelties from the acts regulating the export of military-use and dual-use items will be presented to Croatian business operators. Fight against the proliferation of weapons of mass destruction (WMD) To further improve the system of WMD proliferation control, it is planned to organise a monitoring exercise regarding the implementation of the Croatian WMD Counter Proliferation Strategy and Action Plan. A seminar on brokering is envisaged as an important segment of export control of military-use and dual-use items, as well as a

340 seminar on the implementation of UN Security Council Resolution 1540 (2004). By pursuing these activities, the Republic of Croatia will fulfil its commitments arising from the EU's strategic documents related to CFSP. Legislation on the export control of dual-use items is fully compliant with EU regulations (the Croatian Act on the Export of Dual-Use Items has been aligned with the latest Council Regulation (EC) 428/09). In addition, in July 2011 a new Act on the Control of Dual-Use Items was passed (Official Gazette 80/11), which will enter into force upon the accession of the Republic of Croatia to the EU and will allow for the direct application of Council Regulation 428/09. Consequently, there is no acquis in this segment where alignment is required. At its session held on 27 October 2011, the Croatian Government adopted a Regulation concerning the trade in certain goods that could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment (aligned with Council Regulation (EC) 1236/2005).

International restrictive measures Croatia supports the application of international restrictive measures as an effective means of enforcing international law. By introducing sanctions into its legal system, the Republic of Croatia embraces the instruments of pressure, without the use of military force, that have been established by international organisations, the United Nations or the European Union. In order to facilitate the effective implementation of international restrictive measures, the Croatian Government adopted the Act on International Restrictive Measures (Official Gazette 139/08) in 2008. According to Article 4 of the Act, the Government adopts decisions concerning the implementation of international restrictive measures in line with UN SC resolutions and autonomous decisions of the EU Council, along with accompanying lists of natural persons and legal entities to whom these measures apply. The Government does not adopt specific restrictive measures with the related decisions, but introduces measures into the legal system of the Republic of Croatia whose implementation is mandatory under international law or political alignment. The adoption of these decisions does not require legislative amendments nor does it have additional financial impacts. In July 2011, eleven decisions concerning the implementation of restrictive measures and three decisions relating to the national framework of the implementation of measures were published in the Official Gazette. With their publication, all decisions adopted by the Government in April and July entered into force. Based on these decisions, the MFEA is empowered to make changes to the lists of legal entities and natural persons to whom certain restrictive measures apply. In November 2011, the Croatian Government adopted decisions concerning restrictive measures in relation to Libya, Iran, Belarus, DPR Korea, Eritrea, Sudan and South Sudan. This system will continue to be implemented in 2012, and changes therein will be made in accordance with the new restrictive measures and measures mitigating the previously adopted decisions as they are adopted at the UN or EU level.

Peace operations Participation in international peace operations represents one of the important segments of Croatia's foreign policy. As of 10 January 2012, the Republic of Croatia takes part in 13 peace operations - eight run by the United Nations (MINURSO in Western Sahara, MINUSTAH in Haiti, UNDOF on the Golan Heights, UNFICYP on Cyprus, UNIFIL in Lebanon, UNMIL in Liberia, UNMIT in Timor-Leste, and UNMOGIP in India/Pakistan with a total of 130 members of the Croatian Armed Forces and the Ministry of the Interior), three EU missions or operations (EUPOL Afghanistan, EULEX Kosovo and EU NAVFOR ATALANTA) and two operations run by NATO (ISAF in Afghanistan and KFOR in Kosovo). The Republic of Croatia participated in the NATO campaign “Unified Protector” against Libya, which ended on 31 October 2011. Croatia currently contributes to peace

341 operations with a total of about 500 members of the Croatian Armed Forces and civilians. Civilian experts are involved in operations together with members of the Croatian Armed Forces, and their participation is based on the provisions of the Act on the Participation of Members of the Croatian Armed Forces, Police, Civil Protection and Civil Servants in Peace Operations and Other Activities Abroad (Official Gazette 33/02 and 92/10). The possibility for the Croatian Government to adopt a special regulation concerning the participation of civilian experts in peace operations and their co-operation with representatives of the Croatian Armed Forces is under consideration. The so-called comprehensive approach is applied during participation in peace operations. According to its capacities, the Republic of Croatia has also sent humanitarian assistance to war- and crisis-affected countries and has been actively involved in the system of international development aid to Afghanistan and Libya since 2008 and 2011 respectively. Croatia's participation in the peace operations of the UN, EU and NATO will continue in 2012, based on the comprehensive approach and within the scope defined in the decisions of the Croatian Parliament and appropriate decisions of the Croatian Government, where the said act will form the legal basis for participation.

Cluster Munitions Act A Cluster Munitions Act is being prepared. A working group for drafting the Act has been appointed, consisting of representatives of MFEA, MD, MI, HCR and MineAid (a Croatian NGO assisting victims of landmines and cluster munitions). The narrower working group (MFEA, MD, HCR and MineAid) has prepared a draft Cluster Munitions Act which will be presented for consideration to the (broader) working group and competent authorities. As envisaged, the Act will include penalty provisions for legal entities and natural persons undertaking any actions that are contrary to the provisions of the Convention on Cluster Munitions. The Act also provides for the establishment of a National Commission for monitoring and co-ordinating the implementation of the Convention on Cluster Munitions in the Republic of Croatia.

342 Legislative activities a) Legislative measures

To be submitted Competent No. Legislative measure To be aligned with the following acts of the acquis for Government authority procedure Act on Amendments to the Act on the Export and Council Common Position 2008/944/CFSP of 8 December 2008 defining common 1. Import of Military-Use Items and Non-Military ME rules governing control of exports of military technology and equipment 4th quarter 2012 Ordnance 32008E0944 95/553/EC: Decision of the Representatives of the Governments of the Member States meeting within the Council of 19 December 1995 regarding protection for citizens of the European Union by diplomatic and consular representations 2. Foreign Service Act MFEA 41995D0553 4th quarter 2012 96/409/CSFP: Decision of the Representatives of the Governments of the Member States, meeting within the Council of 25 June 1996 on the establishment of an emergency travel document Council Directive 91/477/EEC of 18 June 1991 on control of the acquisition and 3. Weapons Act MI possession of weapons, which has been amended by Directive 2008/51/EC 1st quarter 2012 31991L0477 b) Subordinate legislation

To be submitted Competent Legal basis for To be aligned with the following acts of the No. Subordinate legislation for Government authority the adoption of subordinate legislation acquis procedure EU Common Military List (equipment defined by Regulation concerning the Council Common Position 2008/944/CFSP of identification of goods exported and Act on the Export and Import of Military- 8 December 2008 defining common rules 1. imported on the basis of licences ME Use Items and Non-Military Ordnance 3rd quarter 2012 governing control of exports of military technology (List of Military-Use Items and List of (Official Gazette 86/08), Articles 3 and 4 and equipment) Non-Military Ordnance) 32008E0944

343 c) Strategies and Action Plans or Programmes

No. Measure Competent authority To be submitted for Government procedure

Interdepartmental working group co- Preparing an analysis and methodology for obtaining a more ordinated by MI (representatives of 1. realistic picture of the quantity of illegal weapons possessed by 2nd quarter 2012 MD, MJ and security agencies) in co- citizens operation with UNDP

344 Administrative capacity

Adoption/implementation Measure Competent authority Planned budgetary funds deadline INCREASING THE NUMBER OF EMPLOYEES In order to strengthen administrative capacity, it is necessary to increase the number of people in the Department for Weapons and Licences of ME 2012 the Ministry of the Economy from the existing six to eight persons. RECRUITMENT OF NEW EMPLOYEES Employing three persons in ME (organisational unit for trade and the internal market, organisational unit for weapons and licences) for the ME 1st quarter 2012 purpose of administrative capacity building Employing two defence advisers at the AFRC Military Mission to NATO MD 2012 State Budget and the EU

It is necessary to consider increasing the number of employees in the International Security Department (in line with the existing organisational

structure) in charge of monitoring peace missions and operations and MFEA 1st quarter 2012

monitoring international restrictive measures by at least two employees per activity (a total of four employees). EDUCATION AND TRAINING Seminar on novelties in the Act on the Export and Import of Military-Use ME 4th quarter 2012 Items Brokering seminar MFEA 1st quarter 2012 HRK 10,000.00 Exercise in monitoring the implementation of the Croatian WMD Counter Interdepartmental working group 1st quarter 2012 HRK 10,000.00 Proliferation Strategy and Action Plan co-ordinated by MFEA Seminar on the implementation of UN SC Resolution 1540 (2004) MFEA 2nd quarter 2012 HRK 10,000.00 Presenting peace missions to potential peace mission participants from PA – reference to the need to increase the number of women in peace MI, Peace Missions Department 2012 HRK 10,000.00 missions International course for police officers deployed in peace missions, 2012 HRK 120,000.00 UNPOC, United Nations Police Officers Course MI, Peace Missions Department

345 MI, in co-operation with Peace Course for UN peace missions Missions Departments of foreign 2012 HRK 70,000.00 -ToT (training of trainers) countries – Sweden, Norway, Slovenia MI, Peace Missions Department English language courses for police officers deployed on peace missions 2012 HRK 28,000.00 and Police Academy OTHER US Administration Upgrading the TRACKER licensing information system ME 4th quarter 2012 financial and expert assistance

346 3.32 FINANCIAL CONTROL Public Internal Financial Control System (PIFC) The Action Plan for the development of the public internal financial control system in the period 2012–2013 is planned to be adopted in the second quarter of 2012. Since the Development Strategy for the public internal financial control system for the period 2009–2011 has expired, the long-term objectives defined under this Strategy will be further elaborated in this Action Plan for the forthcoming period. The Action Plan will lay out further measures for the development of governance accountability and risk management, the close association between the PIFC system development and budgetary system development and public administration reform. Given that one of the key objectives of the Development Strategy for the public internal financial control system for the period 2009–2011 is the establishment of an association between the development of internal financial control systems and the development of the budgetary system, the drafting of the new Action Plan will be closely related to and coordinated with the drafting of the new Strategy for the development and modernization of the State Treasury, which is planned for 2012. Over the forthcoming period, the Central Harmonisation Unit will continue to work on strengthening its coordination role and establishing communication with key participants in the development of this system, in particular with the State Treasury, State Audit Office, institutions involved in EU funds management, Ministry of Administration and budget users at the state and local levels. Further efforts will be made in the area of administrative capacities, in particular as regards the strengthening of the coordination roles of existing organisational units for finances and further education and training of managers and other personnel included in financial management and control and internal auditors. With regard to the requirements placed before the internal audit, which include its role in the development of financial management and control and its active role in the management of EU pre-accession funds and preparation for the Structural and Cohesion Funds, further efforts will be made towards internal auditor capacity strengthening, particularly where it concerns the competence of internal auditors. In this regard, further training will be provided for internal auditors by means of basic and elective modules, workshops and seminars. External audit In view of changes to the legislative framework ensuing from the State Audit Office Act (OG 80/11) and the Political Activities and Election Campaign Act (OG 24/11 and 61/11), which amend the scope of activities of the State Audit Office, the State Audit Office has to strengthen its administrative capacities and expand its plan and programme for the forthcoming period. To be able to do so, it will need to recruit fifteen new employees and ensure their training and preparation for acquiring a certificate. Additionally, professional training is planned to be provided for all auditors. These new recruitments will require the acquisition of computer equipment and adequate furnishing of the office premises where training will be conducted.

347 Protection of EU financial interests and protection of the euro against counterfeiting AFCOS

In the field of protection of the financial interests of the European Union, in 2011, the Independent Department for Combating Irregularities and Fraud (IDCIF) of the Ministry of Finance conducted a Twinning light project IPA 2007 TAF entitled ―Strengthening the AFCOS system with the aim of protecting EU financial interests in the Republic of Croatia‖. Project implementation ran from October 2010 to June 2011 and was conducted in cooperation with a team of experts from the Romanian Department for fraud prevention (DLAF). In the framework of the project, new and improved procedures for irregularities management within Irregularities System Reporting were developed and approved by the National Authorising Officer (NAO). Training was also provided for the representatives of bodies in the AFCOS network (over 300 employees) on the protection of EU financial interests. Promotional materials were provided and advertising campaigns launched to raise awareness about combating irregularities and fraud. A conference entitled “Achievements and Challenges in Protecting EU's Financial Interests in the Republic of Croatia‖ was held in May 2011. Plans for 2012 involve further strengthening of administrative capacities through continued training on irregularities and fraud in the context of Module 11 "Irregularities and Fraud" of the Financial Management and Control (FMC), conducted by the employees of the IDCIF of the Ministry of Finance and their participation in other FMC modules. In 2011, IDCIF drafted a proposal of the new Twinning light project "Enhancing the functioning of the Croatian AFCOS system with the aim of efficient protection of EU financial interests―, with the aim of ensuring efficient protection of EU financial interests in the Republic of Croatia. The project was approved by the European Commission in November 2011 and its implementation is planned in 2012. The purpose of the project is to prepare the AFCOS system for the functioning in the environment of the Structural and Cohesion Funds and to provide training for bodies in the AFCOS network.

Criminal Act At its session on 21 October 2011, the Croatian Parliament enacted the new Criminal Act (OG 125/11), thus ensuring legislative alignment with the Convention on the protection of the EU's financial interests (PIF-Convention) and its protocols. The new Criminal Act introduces a number of changes as regards the criminal offence referred to in Article 224.b - Special Cases of Fraud to the Detriment of the Financial Interest of the European Union and Article 298 - Avoiding Customs Control. Under the new Criminal Act, Article 224.b of the applicable Criminal Code has been incorporated into the criminal offence referred to in Article 256 - Tax or Customs Duty Evasion in the chapter of the Act that regulates criminal offences against the economy. The reason for this lies in the fact that fraud to the detriment of the European Union consists of tax and customs duty evasion by EU Member States that constitute the revenues of the European Union. In addition, the overlap in the applicable Criminal Code of provisions regulating customs duty evasion to the detriment of the European Union in Article 224.b and in Article 298, paragraph 4, where different wording is used to describe the same incrimination, has been rectified. The new Criminal Act incorporates a special paragraph (Article 256, paragraph 4) on the criminal offence of tax or customs duty evasion which regulates that the provisions of the previous paragraphs relating to the criminal offence of tax or customs duty evasion also apply to the perpetrator who reduces European Union funds by committing the acts described therein.

348 Furthermore, the offence as currently regulated, relating to fraud to the detriment of the interests of the European Communities, has been expanded to include subsidy fraud (Article 258 of the new Criminal Act, the chapter that regulates economic offences). In this way, the same level of legal protection is provided for subsidies granted by the Republic of Croatia and those granted by the EU. As in the case of the criminal offence of tax or customs duty evasion, a special paragraph (Article 258, paragraph 5) prescribes the use of the provisions of this Article in the case of EU subsidies.

Measures for the protection of the euro against counterfeiting

The employees of the National Counterfeit Centre (NCC), National Analysis Centre (NAC) and Coin National Analysis Centre (CNAC) that operate within the Currency Department of the Croatian National Bank conduct activities on a daily basis related to the receipt and analysis of suspicious banknotes and coins and registering and drafting reports on counterfeit banknotes and coins. Measures will be taken for the drafting and implementation of the Implementation plan of the recommendations obtained in the course of activities of the Twinning light project IPA 2008 "Development of an Efficient System for Fight against Counterfeiting of Banknotes and Coins in Croatia". At the invitation from the European Anti-Fraud Office (OLAF), a representative of the Croatian National Bank will participate as an observer in the meetings of the "Euro Counterfeiting Experts Group" in March, June and November 2012. In 2012, the National Counterfeit Centre will provide training for bank and financial institution employees in the context of the National training programme for verification of the authenticity of banknotes and coins. The training will also include participation of employees in the trade sector and students in the final years of economic secondary schools.

Legislative measures c) Strategies and action plans or programmes

No. Measure Competent institution To be submitted to Government procedure

Action Plan for the development of public internal financial control 1. MF 2nd quarter 2012 2012–2013

349 Administrative capacities

Adoption/implementation Measure Competent authority Planned budgetary funds deadline NEW RECRUITMENT

Recruitment of 15 new state auditors SAO 2012 HRK 3,060,000 EDUCATION AND TRAINING Training of 15 new state auditors SAO 2012 HRK 71,000 Training of certified state auditors and employees SAO 2012 HRK 200,000 Implementation of training programmes based on FMC modules MF TECHNICAL AND IT EQUIPMENT

Acquisition of 15 computers (laptop + monitor) SAO 2012 HRK 105,000 Acquisition of additional equipment (audit procedure monitoring SAO 2012 HRK 110,000 programme) Acquisition of equipment for the training hall SAO 2012 HRK 50,000 Acquisition of a device for checking banknote colour spectrum and CNB 2012 soiled banknotes OTHER

Increased material expenses (office supplies, etc.) SAO 2012 HRK 460,000 Strengthening the AFCOS system with the aim of protecting EU financial interests in the Republic of Croatia (Twinning Light, EUR MF 2012 230,000)

350 3.33 FINANCIAL AND BUDGETARY PROVISIONS

With a view to creating as high-quality and efficient own resources administration system in the Republic of Croatia as possible, further activities aimed at additional strengthening of technical and administrative preconditions will be conducted in 2012 so as to ensure smooth functioning of the own resources system from the date of accession of the Republic of Croatia to the European Union. In this context, further efforts will be made in 2012 towards human resources development, in particular education and professional training and the organisation of workshops in individual fields of the EU's own resources system. In the area of traditional own resources (TOR), or customs, the Customs Administration plans to conduct the following implementing activities in 2012: further work on the testing and upgrading of A and B accounts application; simulation of A and B accounts calculation and drawing-up of reports by all customs offices and the Central Office in accordance with EC rules by means of A and B accounts application in the production environment; organisation of workshops for customs office employees on the traditional own resources system; further work on the Instructions on implementation of TOR write-off procedures; activities relating to the drafting of simulation reports on TOR write-offs for the purpose of preparation for use of an online WOMIS application; administrative capacity strengthening through education and professional training of customs employees in the OWNRES system; drafting of the Instructions for the use of the OWNRES system with the aim of timely collection of the necessary data based on monthly reports and the preparation and drafting of quarterly reports on irregularities and fraud, which will enable the Customs Administration to report detected cases of irregularities and fraud into the OWNRES application; further alignment of the national reporting system with the OWNRES system; and the preparation of the Customs Administration for the implementation of anti-dumping measures. In the area of traditional own resources (TOR), (i.e. sugar) new employees will be recruited in 2012 in the Department for Market Interventions – Plant Production of the Paying Agency for Agriculture, Fisheries and Rural Development. These employees will be responsible for the implementation of all measures regulating the internal market in the area of plant production, including the sugar sector. In-house training will continue to be provided for the employees responsible for the implementation of the production limitation system in the sugar sector, including sugar levies. In the area of VAT-based own resources, the Republic of Croatia will continue to work on the alignment of the national legislation with the acquis communautaire in the area of value added tax. In 2012, the Central Bureau of Statistics (CBS) will continue with the implementation of activities of official statistics alignment in the context of Chapter 18 - Statistics, so as to meet the set objectives and fulfil the obligations assumed in the process of accession of the Republic of Croatia to the European Union. As regards the alignment of GDP-GNI data important for GNI-based own resources, in 2012 the CBS will continue implementation of the measure ―Methodological revision of GDP/GNI‖, in order to improve the quality of the Croatian gross domestic product and gross national income, i.e. to achieve an approximation of the calculation of these two key macroeconomic variables to the requirements of ESA 95 in accordance with an agreement with Eurostat. In 2012, the CBS will work on the reclassification of the GDP series into the NKD 2007 classification, further improvement of GDP calculation at constant prices and development of regular compilation of the supply and use and Input/Output tables.

351 Administrative capacities

Adoption/implementation Measure Competent institution Planned budgetary funds deadline RECRUITMENT OF NEW EMPLOYEES Further recruitments in the Paying Agency for Agriculture, Paying Agency for Agriculture, Fisheries and Rural Development, including in the Department Fisheries and Rural 2012 State Budget for Market Intervention – Plant Production (Department Development responsible for the calculation and collection of sugar levies) EDUCATION AND TRAINING Paying Agency for Agriculture, Employee training Fisheries and Rural 2012 State Budget Development Organisation of workshops on the TOR system for customs MF – CA 2012 State Budget employees Training of customs employees on the OWNRES system MF – CA 2012 State Budget Training of customs employees on EU tariff measures, including anti-dumping and countervailing duties, and their MF – CA 2012 State Budget implementation The total amount is EUR 250,000, of which 90%, or IPA Twinning light project HR/2009/IB/JH/06TL – EUR 225,000, is provided by the EU and the Harmonisation of the custom's risk management system with MF – CA 2nd quarter 2012 remaining 10%, or EUR 25,000 is provided by the the EU standards and best practice State Budget

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