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Europe Daily Bulletin No. 9302
THE DAY IN POLITICS / (eu) eu/croatia

Commission hopes to see progress in key fields

Brussels, 08/11/2006 (Agence Europe) - "Croatia has made a good start to its accession negotiations", but accession to the EU will not be a walk in the park, said the Commissioner in charge of Enlargement, presenting the 2006 report on the forums carried out by Zagreb. Although the country has managed to demonstrate that it has the necessary administrative capabilities, it must considerably step up its efforts to reform the legal system, fight corruption and put economic reforms into place, whilst cooperating fully with the International Criminal Tribunal for the Former Yugoslavia (ICTY), added Olli Rehn. Croatia continues to fulfil the political criteria, according to the Commission's progress report, which stresses that the extent of progress to be made in the field of democracy and the rule of law is "considerable". Progress has been made in human rights and the protection of minorities, but at a "very slow pace", and more must be done in favour of minority employment, amongst other things. Full cooperation with ICTY has continued and prosecutions for war crimes have continued to improve, but care must be taken not to prejudge Serbian defendants and to ensure witness protection. The return of refugees also remains problematic, particularly for the validation of pension rights. On the economic criteria, Croatia can be considered as a viable market economy (stable exchange rates, improved budgetary cleansing and growth, increasing private investments, extension of the banking sector and reduction in employment, amongst other things). Nonetheless, Zagreb needs to implement its reform programme in order to overcome certain persistent weaknesses: structural reforms, State intervention, and a high level of external debt. On its capacity to take up the Community acquis, progress has been made, particularly in terms of bringing the legislation into line, although progress "varies greatly from chapter to chapter". Efforts must still be made, particularly in the chapters relating to the free movement of capital, competition policy, public procurement, agriculture, justice, liberty and security. Lastly, on legislative alignment and administrative capacity, "much remains to be done", the report stresses. (ab)

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