Croatia may have to go straight to the EU disciplinary procedures when it joined the European Union in July and faced a tougher toll free to adapt to market pressures than its former communist peers.
Croatia will become the EU's 28 member states, only the second participant, the Republic of Slovenia, from 20 in the 1990s Yugoslav wars appears.
But after four years of no growth, only limited efforts to reduce the role of state in the economy, debt and deficit levels breach EU limits.
à European Commission, released last week on the current economy and the EU member states with the others, recommended that Croatia will enter the EU is almost as long as the European Union on July 1 formal review.
After recruits receive six years of negotiations, Croatia, will follow the other 10 former communist countries footsteps. Among them, the Czech Republic and Slovakia to privatize major state-owned banks and companies only joined the sell-off to enter.
Slovenia joined the EU in 2004, the global economic boom, and to adopt the euro in 2007, failed to sell major state-owned banks, now only trickery in order to avoid international bailout.
Croatia, Poland and Slovakia, has launched a private pension plan, but more is to get its financial control committee said. Slovakia adopted the euro in 2009, which helped to further strengthen investor confidence.
Zagreb's EU membership surge in foreign direct investment 4.4 billion euros (about 5.7 billion U.S. dollars) economic and stimulate economic growth and employment brings hope.
However, the Commission warns Croatia growing budget deficit, public debt soaring, generally uninviting business environment, lack of competition, poor legal protection of investors and the public administration is weak depression.
The Committee wrote: "Croatia in restoring economic growth is facing important challenges, strengthen public finances and improve competitiveness,."
"Continued high government deficits contribute to rapidly build public debt," it said, mentioning the loss of state-owned enterprises in Slovenia fiscal drag.
Disturbing figures
Croatia's debt is expected to rise to 2014 gross domestic product (GDP) of 62.5%, an increase of nearly 10 percentage points from 2012, breaking the 60% of the EU's official limit.
Account deficit is expected to widen to 4.7% of GDP this year, from 3.8% in 2012, unless the flooding to 5.6% next year - more than 3% of the EU limit.
The formula has been distorted economy has been shrinking since 2009, when it contracted by 6.9%. Committee expects 1.0% growth this year, only 0.2% decline in 2014.
As a result, European officials may immediately watch is July decision to the country's fiscal position.
"The Commission will assess the situation and check if there are excessive deficit," one official said, at this stage, there is no timetable for action.
Croatia may also have renewed economic growth and employment opportunities, and if it can be followed by Slovakia, the Czech Republic and Poland through unpalatable reforms and pry off the push cheap labor costs in order to attract foreign investment.
However, like Slovenia, Croatia, the need to accelerate the privatization of loss-making state-owned enterprises, improve tax collection and the fight against fraud, the Commission said.
 
 



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