Brussels, 11/04/2006 (Agence Europe) - The second meeting of the EU-Croatia Stabilisation and Association Council (SA Council) on 10 April in Luxemburg on the sidelines of the EU External Relations Council was the opportunity for both parties to take stock of the progress made by Croatia in its preparation for accession to the EU and the implementation of the Stabilisation and Association Agreement (SAA) which came into force in February 2005. The conclusion was that Croatia had made significant progress since the first meeting of the SA Council in April 2005, but still had some way to go.
In a press release, the Council of the EU points out that the progress of EU accession negotiations would depend on Croatia's implementation of the requirements of the SAA and the Accession Partnership. On the political level, further sustained efforts are required in the reform of the judicial system and public administration, the fight against corruption and measures to guarantee the freedom of the press. Croatia must also pursue its efforts to ensure refugee returns and accelerate the implementation of the Constitutional Law on national minorities.
On the economic level, Croatia has to accelerate the privatisation and restructuring of companies and ensure an economically favourable environment for foreign investments. It must reinforce its administrative and legal structures necessary to continue its alignment with the acquis communautaire. The Council welcomed Croatia's active role in the development of the Balkans, especially in the conclusion of a regional free trade agreement replacing the 31 existing bilateral free trade agreements (see EUROPE 9166).
Croatia should adopt “without delay” restructuring programmes for the steel and shipbuilding sectors. In the absence of such programmes, “state aids granted to these sectors since the entry into force of the Interim Agreement are illegal under the Agreement.” The EU also insists on Croatia's applying immediately its obligations (deriving from the SAA) on the free movement of capital which permit nationals of EU Member States to acquire real estate in Croatia.