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Croatia: Strengthening the Rule of Law and Economic Competitiveness

Three events dominated Croatia's foreign policy in 2007 and 2008: the accession to NATO, the election into the UN Security Council, and the negotiation on EU accession. Regional policy has been dominated by Croatia's recognition of Kosovo's independence and political disputes with Slovenia concerning the Adriatic sea border. The most important national event was the parliamentary election of 2007. Macroeconomic stability has been maintained by the monetary policy of the Croatian National Bank (HNB). Domestic policy has been dominated by anti-corruption campaigns in government institutions, the universities, the national healthcare system, local governments and other institutions. Organized crime groups have become more active. The government has responded by enacting "anti-mafia" laws and measures, as well as by establishing new law-enforcement agencies to enable the institutions of the state to deal more efficiently with violence and crime.